§ 23-63-1503 — Company action level event

(a) "Company action level event" means any of the following events: (1) The filing of an RBC report by a health organization that indicates that the health organization's total adjusted capital is greater than or equal to its regulatory action level RBC but less than its company action level RBC; (2) For the year ending December 31, 2011, and each following year, if a health organization has total adjusted capital that: (A) Is greater than or equal to its company action level RBC but less than the product of its authorized control level RBC and three (3); and (B) The triggering of the trend test determined in accordance with the trend test calculation included in the health organization's RBC instructions; (3) The notification by the Insurance Commissioner to the health organization of an adjusted RBC report that indicates an event in subdivision (a)(1) of this section, provided the health organization does not challenge the adjusted RBC report under § 23-63-1507 ; or (4) If under § 23-63-1507 a health organization challenges an adjusted RBC report that indicates the event in subdivision (a)(1) of this section, the notification by the Insurance Commissioner to the health organization that the Insurance Commissioner, after a hearing, has rejected the health organization's challenge. (b) In the event of a company action level event, the health organization shall prepare and submit to the Insurance Commissioner an RBC plan that shall: (1) Identify the conditions that contribute to the company action level event; (2) Contain proposals of corrective actions that the health organization intends to take and that would be expected to result in the elimination of the company action level event; (3) (A) Provide projections of the health organization's financial results in the current year and at least the two (2) succeeding years, both in the absence of proposed corrective actions and giving effect to the proposed corrective actions, including projections of statutory balance sheets, operating income, net income, capital and surplus, and RBC levels. (B) The projections for new and renewal business may include separate projections for each major line of business and separately identify each significant income, expense, and benefit component; (4) Identify the key assumptions impacting the health organization's projections and the sensitivity of the projections to the assumptions; and (5) Identify the quality of and problems associated with the health organization's business, including without limitation its assets, anticipated business growth and associated surplus strain, extraordinary exposure to risk, mix of business, and use of reinsurance in each case. (c) The RBC plan shall be submitted: (1) Within forty-five (45) days after the company action level event; or (2) If the health organization challenges an adjusted RBC report under § 23-63-1507 within forty-five (45) days after notification to the health organization that the Insurance Commissioner has, after a hearing, rejected the health organization's challenge. (d) (1) Within sixty (60) days after the submission by a health organization of an RBC plan to the Insurance Commissioner, the Insurance Commissioner shall notify the health organization if the RBC plan shall be implemented or is, in the judgment of the Insurance Commissioner, unsatisfactory. (2) If the Insurance Commissioner determines the RBC plan is unsatisfactory, the notification to the health organization shall state the reasons for the determination and may state proposed revisions which will render the RBC plan satisfactory, in the judgment of the Insurance Commissioner. (3) Upon notification from the Insurance Commissioner, the health organization shall prepare a revised RBC plan that may incorporate by reference the revisions proposed by the Insurance Commissioner and shall submit the revised RBC plan to the Insurance Commissioner: (A) Within forty-five (45) days after the notification from the Insurance Commissioner; or (B) If the health organization challenges the notification from the Insurance Commissioner under § 23-63-1507 , within forty-five (45) days after a notification to the health organization that the Insurance Commissioner, after a hearing, has rejected the health organization's challenge. (e) In the event of a notification by the Insurance Commissioner to a health organization that the health organization's RBC plan or revised RBC plan is unsatisfactory, the Insurance Commissioner, subject to the health organization's right to a hearing under § 23-63-1507 , may specify in the notification that the notification constitutes a regulatory action level event. (f) Each domestic health organization that files an RBC plan or revised RBC plan with the Insurance Commissioner shall file a copy of the RBC plan or revised RBC plan with the insurance commissioner in any state in which the health organization is authorized to do business if: (1) The state has an RBC provision substantially similar to § 23-63-1508(a) ; and (2) The insurance commissioner of that state has notified the health organization of its request for the filing in writing, in which case the health organization shall file a copy of the RBC plan or revised RBC plan in that state by the later of: (A) Fifteen (15) days after the receipt of notice to file a copy of its RBC plan or revised RBC plan with the state; or (B) The date that the RBC plan or revised RBC plan is filed under subsections (c) and (d) of this section.

Legislative History

Acts 1999, No. 580, § 3; 2011, No. 760, § 5.