Minimum Total Adjusted Capital Clause Samples
The Minimum Total Adjusted Capital clause sets a required threshold for the amount of adjusted capital that a party, typically an insurer or financial institution, must maintain at all times. This clause usually specifies a calculation method for adjusted capital, taking into account assets, liabilities, and certain regulatory adjustments, and may require regular reporting or certification of compliance. Its core practical function is to ensure the financial stability and solvency of the party, thereby protecting counterparties and policyholders from the risks associated with undercapitalization.
Minimum Total Adjusted Capital. Permit the Total Adjusted Capital of each U.S.-domiciled Insurance Company that is a Subsidiary at any time to be less than 175% of the Company Action Level Risk Based Capital for such Insurance Company.
Minimum Total Adjusted Capital. (a) The Company will not permit the Total Adjusted Capital of each of (i) Southwestern Life Insurance Company, (ii) Pioneer American Insurance Company, (iii) Union Bankers Insurance Company, (iv) Constitution Life Insurance Company (v) United Life and Annuity Insurance Company, (vi) Pioneer Security Life Insurance Company, (vii) Security Life and Trust Insurance Company, (viii) Peninsular Life Insurance Company, (ix) Marquette Life Insurance Company, and (x) American-Amicable Life Insurance Company (so long as such Persons are Subsidiaries) at any time to be less than 200% of the Company Action Level Risk Based Capital for such Insurance Company.
(b) The Company will not permit the Total Adjusted Capital of each of (i) Occidental Life Insurance Company, and (ii) Pacific Life and Accident Insurance Company at any time to be less than 150% of the Company Action Level Risk Based Capital for such Insurance Company.
(c) The Company will not permit the Total Adjusted Capital of each of (i) Professional Insurance Company and (ii) Pennsylvania Life Insurance Company at any time to be less than 70% of the Company Action Level Risk Based Capital for such Insurance Company."
(u) Section 8.13 shall be amended to read in its entirety as follows:
Minimum Total Adjusted Capital. (a) The Company will not permit the Total Adjusted Capital of each U.S.-domiciled Insurance Company that is a Significant Subsidiary at any time to be less than 175% of the Company Action Level Risk Based Capital for such Insurance Company.
(b) The Company will not permit the Total Adjusted Capital of each U.S.-domiciled Insurance Company that is not a Significant Subsidiary at any time to be less than 100% of the Company Action Level Risk Based Capital for such Insurance Company.