375.1262. Mandatory control level event, occurrence of, when--effect, duties of director.
Mandatory control level event, occurrence of, when--effect, duties ofdirector.
375.1262. 1. "Mandatory control level event" means, with respect toany insurer, any of the following events:
(1) The filing of an RBC report which indicates that the insurer'stotal adjusted capital is less than its mandatory control level RBC;
(2) Notification by the director to the 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; or
(3) If, pursuant to section 375.1265, the insurer challenges anadjusted RBC report that indicates the event in subdivision (1) of thissubsection, notification by the director to the insurer that the directorhas, after a hearing, rejected the insurer's challenge.
2. In the event of a mandatory control level event the director shalltake such actions as are necessary to place the insurer under regulatorycontrol under sections 375.1150 to 375.1246, or, in the case of a propertyand casualty insurer which is writing no business, may allow the insurer tocontinue its existing policies until expiration of the policy term andsettlement of all outstanding claims under the supervision of the director.In either event, the mandatory control level event shall be deemedsufficient grounds for the director to take action pursuant to sections375.1150 to 375.1246, and the director shall have the rights, powers andduties with respect to the insurer as are set forth in sections 375.1150 to375.1246. In the event the director takes actions pursuant to an adjustedRBC report, the insurer shall be entitled to such protections as areafforded to insurers pursuant to the provisions of sections 375.570 to375.640, if the adjusted RBC report shall be deemed a report ofexamination. Notwithstanding any other provision of this subsection to thecontrary, the director may forego action for up to ninety days after themandatory control level event if the director finds there is a reasonableexpectation that the mandatory control level event be eliminated within theninety-day period.
(L. 1993 H.B. 709 § 6, A.L. 1996 S.B. 759)