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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2012 ENROLLED
SENATE BILL NO. 230
BY SENATOR BROWN
AN ACT1
To amend and reenact R.S. 22:611(8)(b), (c), and (d) and 613(A)(1)(b) and (c), relative to2
risk-based capital for domestic insurers; to provide for definitions; to provide with3
respect to a company-action level event; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 22:611(8)(b), (c), and (d) and 613(A)(1)(b) and (c) are hereby6
amended and reenacted to read as follows:7
§611. Definitions8
As used in this Subpart, the following terms shall have the following9
meanings:10
* * *11
(8) "Risk-based capital level" means an action level risk-based capital,12
regulatory action level risk-based capital, authorized control level risk-based capital,13
or mandatory control level risk-based capital of an insurer where:14
* * *15
(b) "Company-action level risk-based capital" means the product of two16
multiplied by its two hundred percent of a company's authorized control level17
risk-based capital.18
(c) "Mandatory-control level risk-based capital" means seven-tenths19
multiplied by the of a company's authorized control level risk-based capital.20
(d) "Regulatory-acti on level risk-based capital" means one and one-half21
multiplied by the one hundred and fifty percent of a company's authorized control22
level risk-based capital.23
* * *24
ACT No. 359 SB NO. 230 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
§613. Company-action level event1
A. "Company-action level event" means any of the following events:2
(1) The filing of a risk-based capital report by an insurer that indicates that:3
* * *4
(b) The life or health and accident insurer maintains a total adjusted capital5
which is greater than or equal to its company-action level risk-based capital, but less6
than the product but below three hundred percent of its authorized-control level7
but triggers the trend test determined in accordance with the trend test8
calculation included in the property and casualty risk-based capital instructions9
risk-based capital and two and one-half but has a negative trend.10
(c) The property and casualty insurer maintains a total adjusted capital which11
is greater than or equal to its company-action level risk-based capital but less than12
the product but below three hundred percent of its authorized-control level risk-13
based capital and three but triggers the trend test determined in accordance with the14
trend test calculation included in the property and casualty risk-based capital15
instructions.16
* * *17
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: