§ 23-63-1306 — Authorized control level event

(a) As used in this subchapter, "authorized control level event" means any of the following events: (1) The filing of an RBC report by the insurer that shows the insurer's total adjusted capital is more than or equal to its mandatory control level RBC but less than its authorized control level RBC; (2) The notification by the Insurance Commissioner to the insurer of an adjusted RBC report that indicates the event in subdivision (a)(1) of this section if the insurer does not challenge the adjusted RBC report under § 23-63-1308 ; (3) If under § 23-63-1308 the insurer challenges an adjusted RBC report that indicates the event in subdivision (a)(1) of this section, notification by the commissioner to the insurer that the commissioner, after a hearing, has rejected the insurer's challenge; (4) The failure of the insurer to respond in a way satisfactory to the commissioner to a corrective order if the insurer has not challenged the corrective order under § 23-63-1308 ; or (5) If the insurer has challenged a corrective order under § 23-63-1308 and the commissioner, after a hearing, has rejected the challenge or modified the corrective order, the failure of the insurer to respond, in a way satisfactory to the commissioner, to the corrective order after rejection or modification by the commissioner. (b) In the event of an authorized control level event with respect to an insurer, the commissioner shall: (1) Take the actions required under § 23-63-1305 regarding an insurer with respect to which a regulatory action level event has occurred; or (2) If the commissioner considers it to be in the best interests of the policyholders and creditors of the insurer and of the public, take the actions necessary to cause the insurer to be placed under regulatory control under § 23-68-101 et seq. In the event the commissioner takes the actions, the authorized control level event is sufficient grounds for the commissioner to take action under § 23-68-101 et seq., and the commissioner shall have the rights, powers, and duties with respect to the insurer as stated in § 23-68-101 et seq. If the commissioner takes action under this section under an adjusted RBC report, the insurer is entitled to the protections provided to insurers under § 23-68-101 et seq. pertaining to summary proceedings.

Legislative History

Acts 1995, No. 622, § 1; 2011, No. 760, § 4.