§ 58-12-21. Authorized control level event.
§ 58‑12‑21. Authorized control level event.
(a) "Authorizedcontrol level event" means any of the following events:
(1) The filing of a risk‑basedcapital report by the insurer that indicates that the insurer's total adjustedcapital is greater than or equal to its mandatory control level risk‑basedcapital but less than its authorized control level risk‑based capital.
(2) The notification bythe Commissioner to the insurer of an adjusted risk‑based capital reportthat indicates the event in subdivision (1) of this subsection if the insurerdoes not challenge the adjusted risk‑based capital report under G.S. 58‑12‑30.
(3) If the insurerchallenges an adjusted risk‑based capital report that indicates the eventin subdivision (1) of this subsection under G.S. 58‑12‑30,notification by the Commissioner to the insurer that the Commissioner hasrejected the challenge.
(4) The failure of theinsurer to respond, in a manner satisfactory to the Commissioner, to aCorrective Order if the insurer has not challenged the Corrective Order underG.S. 58‑12‑30.
(5) If the insurer haschallenged a Corrective Order under G.S. 58‑12‑30 and theCommissioner has rejected the challenge or modified the Corrective Order, thefailure of the insurer to respond, in a manner satisfactory to theCommissioner, to the Corrective Order after the rejection or modification bythe Commissioner.
(b) In the event of anauthorized control level event with respect to an insurer, the Commissionershall:
(1) Take such actions asare required under G.S. 58‑12‑30 regarding an insurer with respectto which a regulatory action level event has occurred; or
(2) If the Commissionerdeems it to be in the best interests of the policyholders and creditors of theinsurer and of the public, take such actions as are necessary to cause theinsurer to be placed under regulatory control under Article 30 of this Chapter.If the Commissioner takes such actions, the authorized control level eventshall be deemed sufficient grounds for the Commissioner to take action underArticle 30 of this Chapter, and the Commissioner shall have the rights, powers,and duties with respect to the insurer as are set forth in Article 30 of thisChapter. If the Commissioner takes actions under this subdivision pursuant toan adjusted risk‑based capital report, the insurer shall be entitled tosuch protections as are afforded to insurers under the provisions of Article 30of this Chapter pertaining to summary proceedings. (1993 (Reg. Sess., 1994), c.678, s. 1.)