375.1257. Regulatory action level event, occurrence of, when--director's duties, corrective actions--plan to be submitted by insurer.
Regulatory action level event, occurrence of, when--director's duties,corrective actions--plan to be submitted by insurer.
375.1257. 1. "Regulatory action level event" means, with respect toany insurer, any of the following events:
(1) The filing of an RBC report by the insurer which indicates thatthe insurer's total adjusted capital is greater than or equal to itsauthorized control level RBC but less than its regulatory action level RBC;
(2) The notification by the director to an insurer of an adjusted RBCreport that indicates the event in subdivision (1) of this subsection, ifthe insurer does not challenge the adjusted RBC report under section375.1265;
(3) If, pursuant to section 375.1265, the insurer challenges anadjusted RBC report that indicates the event in subdivision (1) of thissubsection, the notification by the director to the insurer that thedirector has, after a hearing, rejected the insurer's challenge;
(4) The failure of the insurer to file an RBC report by the filingdate, unless the insurer has provided an explanation for such failure whichis satisfactory to the director and has cured the failure within ten daysafter the filing date;
(5) The failure of the insurer to submit an RBC plan to the directorwithin the time period set forth in subsection 3 of section 375.1255;
(6) Notification by the director to the insurer that:
(a) The RBC plan or revised RBC plan submitted by the insurer is, inthe judgment of the director, unsatisfactory; and
(b) Such notification constitutes a regulatory action level eventwith respect to the insurer, where the insurer has not challenged thedetermination under section 375.1265;
(7) If, pursuant to section 375.1265, the insurer challenges adetermination by the director under subdivision (6) of this subsection, thenotification by the director to the insurer that the director has, after ahearing, rejected such challenge;
(8) Notification by the director to the insurer that the insurer hasfailed to adhere to its RBC plan or revised RBC plan, but only if suchfailure has a substantial adverse effect on the ability of the insurer toeliminate the company action level event in accordance with its RBC plan orrevised RBC plan and the director has so stated in the notificationprovided the insurer has not challenged the determination under section375.1265; or
(9) If, pursuant to section 375.1265, the insurer challenges adetermination by the director under subdivision (8) of this subsection thenotification by the director to the insurer that the director has, after ahearing, rejected the challenge.
2. In the event of a regulatory action level event the directorshall:
(1) Require the insurer to prepare and submit an RBC plan or, ifapplicable, a revised RBC plan;
(2) Perform such examination or analysis as the director deemsnecessary of the assets, liabilities and operations of the insurer,including a review of its RBC plan or revised RBC plan; and
(3) Subsequent to the examination or analysis, issue an orderspecifying such corrective actions as the director shall determine arerequired.
3. In determining corrective actions, the director may take intoaccount such factors as are deemed relevant with respect to the insurerbased upon the director's examination or analysis of the assets,liabilities and operations of the insurer, including, but not limited to,the results of any sensitivity tests undertaken pursuant to the RBCinstructions. The RBC plan or revised RBC plan shall be submitted:
(1) Within forty-five days after the occurrence of the regulatoryaction level event;
(2) If the insurer challenges an adjusted RBC report pursuant tosection 375.1265, within forty-five days after the notification to theinsurer that the director has, after a hearing, rejected the insurer'schallenge; or
(3) If the insurer challenges a revised RBC plan under section375.1265, within forty-five days after notification to the insurer that thedirector has, after a hearing, rejected the challenge.
4. The director may retain actuaries and investment experts and otherconsultants as may be necessary in the judgment of the director to reviewthe insurer's RBC plan or revised RBC plan, examine or analyze the assets,liabilities and operations of the insurer and formulate the correctiveorder with respect to the insurer. The fees, costs and expenses relatingto the consultants shall be borne by the affected insurer.
(L. 1993 H.B. 709 § 4, A.L. 1996 S.B. 759)