40-2d06. Risk-based capital; company action level event; submission of RBC plan.
40-2d06
40-2d06. Risk-based capital; company action levelevent; submission of RBC plan.In the event of a company action level event, the healthorganization shall prepare and submit to the commissioner an RBC plan whichshall:
(a) Identify the conditions in the health organization's operation whichcontribute to the company action level event;
(b) contain proposals of corrective actions which the health organizationintends to take that would be expected to result in the elimination of thecompany action level event;
(c) provide projections of the health organization's financial results in thecurrentyear and at least the two succeeding years, both in the absence of the proposedcorrective actions and giving effect to the proposed corrective actions,including projections of statutory balance sheets, operating income, netincome, capital andsurplus, and RBC levels. The projections for both new and renewal business mayinclude separate projections for each major line of business and separatelyidentify each significant income, expense and benefit component;
(d) identify the key assumptions impacting the health organization'sprojectionsand the sensitivity of the projections to the assumptions; and
(e) identify the quality of, and problems associated with, the healthorganization's business, including, but not limited to, its assets, anticipatedbusiness growth and associated surplus strain, extraordinary exposure to risk,mix of business and use of reinsurance in each case, if any.
History: L. 2000, ch. 147, § 7; July 1.