RS 22:613 Company-action level event
§613. Company-action level event
A. "Company-action level event" means any of the following events:
(1) The filing of a risk-based capital report by an insurer that indicates that:
(a) The total adjusted capital of the insurer is greater than or equal to its regulatory-action level risk-based capital, but less than its company-action level risk-based capital.
(b) The life or health and accident insurer maintains a total adjusted capital which is greater than or equal to its company-action level risk-based capital, but less than the product of its authorized-control level risk-based capital and two and one-half but has a negative trend.
(2) The notification of a domestic insurer by the department of an adjusted risk-based capital report which indicates an event under Paragraph (B)(1) of this Section unless the insurer fails to dispute the adjusted risk-based capital report required by R.S. 22:617.
(3) If a domestic insurer disputes an adjusted risk-based capital report and notification by the department to the insurer that the department has rejected the dispute.
B. In the event a company-action event occurs, the insurer shall prepare and submit to the department a risk-based capital plan that shall:
(1) Identify the conditions which contribute to the company-action level event.
(2) Contain proposals of corrective actions which the insurer intends and which would be expected to result in the elimination of the company-action level event.
(3) Provide projections of the financial results of the insurer in the current year and at least the four succeeding years, both in the absence of proposed corrective actions and giving effect to the proposed corrective actions, including projections of statutory operating income, net income, capital, or surplus. The projections for both new and renewal business may include separate projections for each major line of business and separately identify each income, expense, and benefit component.
(4) Identify the key assumptions impacting the projections of the insurer and the sensitivity of the projections to those assumptions.
(5) Identify the quality and problems with the business of the insurer including but not limited to its assets, anticipated business growth and associated surplus strain, extraordinary exposure to risk, mixture of business, and use of reinsurance, if applicable.
C. The risk-based capital plan shall be submitted:
(1) Within forty-five days of the company-action level event.
(2) Within forty-five days after notification to the insurer that the department has rejected the dispute by an insurer.
D.(1) Within forty-five days after the submission by an insurer of a risk-based capital plan to the department, the department shall notify the insurer whether the risk-based capital plan shall be implemented or determined to be unsatisfactory by the department.
(2) If the department determines the risk-based capital plan is unsatisfactory, the notification to the insurer shall state the reasons for the unsatisfactory determination and set forth proposed revisions to render the risk-based capital plan satisfactory.
(3) Upon notification from the department, the insurer shall prepare a revised risk-based capital plan that may incorporate any revisions proposed by the department. The insurer shall submit the revised risk-based capital plan to the department:
(a) Within forty-five days after the notification from the department, unless otherwise disputed by the insurer.
(b) Within forty-five days after a notification to the insurer that the department has rejected the dispute of the insurer.
E. In the event of a notification by the department to an insurer that the risk-based capital plan is unsatisfactory, the department may state in the notification that the notification constitutes a regulatory-action level event, unless an administrative hearing is requested under R.S. 22:617.
F.(1) Every domestic insurer that files a risk-based capital plan or revised risk-based capital plan with the department shall file a copy of the risk-based capital plan or revised risk-based capital plan with the insurance department in any state in which the insurer is authorized to do business if:
(a) The state has a risk-based capital provision substantially similar to R.S. 22:618(A).
(b) The insurance department of that state has notified the insurer of its request for the filing in writing.
(2) The insurer shall file a copy of the risk-based capital plan or revised risk-based capital plan in that state no later than:
(a) Fifteen days after the receipt of notice to file a copy of its risk-based capital plan or revised risk-based capital plan with the state.
(b) The date on which the risk-based capital plan or revised risk-based capital plan is filed pursuant to Subsections C and D of this Section.
Acts 1995, No. 1203, §1, eff. June 29, 1995; Redesignated from R.S. 22:862 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 317, §1; Acts 2009, No. 503, §1.
NOTE: Former R.S. 22:613 redesignated as R.S. 22:901 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.