38.2-5505 - Authorized Control Level Event.
§ 38.2-5505. Authorized Control Level Event.
A. "Authorized Control Level Event" means any of the following events:
1. The filing of an RBC Report by the licensee which indicates that thelicensee's Total Adjusted Capital is greater than or equal to its MandatoryControl Level RBC but less than its Authorized Control Level RBC;
2. The notification by the Commission to the licensee of an Adjusted RBCReport that indicates the event in subdivision A 1, provided the licenseedoes not challenge the Adjusted RBC Report under § 38.2-5507;
3. If, pursuant to § 38.2-5507, the licensee challenges an Adjusted RBCReport that indicates the event in subdivision A 1, the notification by theCommission to the licensee that the Commission has, after a hearing, rejectedthe licensee's challenge;
4. The failure of the licensee to respond, in a manner satisfactory to theCommission, to a corrective order, provided the licensee has not challengedthe corrective order under § 38.2-5507; or
5. If the licensee has challenged a corrective order under § 38.2-5507 andthe Commission has, after a hearing, rejected the challenge or modified thecorrective order, the failure of the licensee to respond, in a mannersatisfactory to the Commission, to the corrective order subsequent torejection or modification by the Commission.
B. In the event of an Authorized Control Level Event with respect to alicensee, the Commission shall:
1. Take such actions as are required under § 38.2-5504 regarding a licenseewith respect to which a Regulatory Action Level Event has occurred; or
2. If the Commission deems it to be in the best interests of thepolicyholders and creditors of the licensee and of the public, take suchactions as are necessary to cause the licensee to be placed under regulatorycontrol under the provisions of Chapter 15 (§ 38.2-1500 et seq.). In theevent the Commission takes such actions, the Authorized Control Level Eventshall be deemed an indication of a hazardous financial condition which servesas sufficient grounds for the Commission to commence delinquency proceedings,and the receiver appointed in conjunction with such proceedings shall havethe rights, powers and duties with respect to the licensee as are set forthin Chapter 15 or any order of liquidation, rehabilitation or conservationentered pursuant thereto. In the event the Commission takes actions underthis subdivision pursuant to an Adjusted RBC Report, the licensee shall beentitled to such protections as are afforded to licensees under theappropriate provisions of this title pertaining to summary proceedings.
(1995, c. 789; 2000, c. 47.)