§ 27-4.7-7 - Mandatory control level event.
SECTION 27-4.7-7
§ 27-4.7-7 Mandatory control level event.– (a) "Mandatory control level event" means any of the following events:
(1) The filing of an RBC report which indicates that thehealth organization's total adjusted capital is less than its mandatory controllevel RBC;
(2) Notification by the commissioner to the healthorganization of an adjusted RBC report that indicates the event in subdivision(a)(1) of this section, provided the health organization does not challenge theadjusted RBC report under § 27-4.7-8; or
(3) If, pursuant to § 27-4.7-8, the health organizationchallenges an adjusted RBC report that indicates the event in subdivision(a)(1) of this section, notification by the commissioner to the healthorganization that the commissioner has, after a hearing, rejected the healthorganization's challenge.
(b) In the event of a mandatory control level event, thecommissioner shall take any actions that are necessary to place the healthorganization under regulatory control pursuant to chapters 14.1, 14.2, and 14.3of this title. In that event, the mandatory control level event shall be deemedsufficient grounds for the commissioner to take action under chapters 14.1,14.2, and 14.3 of this title, and the commissioner has the rights, powers, andduties with respect to the health organization that are set forth in chapters14.1, 14.2, and 14.3 of this title. If the commissioner takes actions pursuantto an adjusted RBC report, the health organization is entitled to theprotections of chapter 35 of title 42 pertaining to summary proceedings.Notwithstanding any of these provisions, the commissioner may forego action forup to ninety (90) days after the mandatory control level event if thecommissioner finds there is a reasonable expectation that the mandatory controllevel event may be eliminated within the ninety (90) day period.