§ 26.1-03.1-06 — Mandatory control level event

North Dakota § 26.1-03.1-06

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-03.1: Risk-Based Capital Reports

Text

1. "Mandatory control level event" means any of the following events:
a. The filing of a risk-based capital report that indicates that the insurer's total
adjusted capital is less than its mandatory control level risk-based capital;
b. Notification by the commissioner to the insurer of an adjusted risk-based capital
report that indicates the event in subdivision a, provided the insurer does not
challenge the adjusted risk-based capital report under section 26.1-03.1-07; or
c. If, under section 26.1-03.1-07, the insurer challenges an adjusted risk-based
capital report that indicates the event in subdivision a, notification by the
commissioner to the insurer that, after a hearing, the commissioner has rejected
the insurer's challenge.
2. In the event of a mandatory control level event:
a. With respect to a life insurer or fraternal benefit society, the commissioner shall
take actions as are necessary to place the insurer under regulatory control under
chapter 26.1-06.1. In that event, the mandatory control level event must be
deemed sufficient grounds for the commissioner to take action under chapter
26.1-06.1, and the commissioner has the rights, powers, and duties in chapter
26.1-06.1 with respect to the insurer. If the commissioner takes action pursuant to
an adjusted risk-based capital report, the insurer is entitled to the protection of
chapter 26.1-06.1 pertaining to summary proceedings. Notwithstanding any of the
foregoing, the commissioner may forego action for up to ninety days after the
mandatory control level event if the commissioner finds there is a reasonable
expectation that the mandatory control level event may be eliminated within the
ninety-day period.
b. With respect to a property and casualty insurer, the commissioner may take such
actions as are necessary to place the insurer under regulatory control under
chapter 26.1-06.1, or, in the case of an insurer that is not writing business and
that is running off its existing business, may allow the insurer to continue its runoff
under the supervision of the commissioner. In either event, the mandatory control
level event must be deemed sufficient grounds for the commissioner to take
action under chapter 26.1-06.1 and the commissioner has the rights, powers, and
duties in chapter 26.1-06.1 with respect to the insurer. If the commissioner takes
action pursuant to an adjusted risk-based capital report, the insurer is entitled to
the protection of chapter 26.1-06.1 pertaining to summary proceedings.
Notwithstanding any of the foregoing, the commissioner may forego action for up
to ninety days after the mandatory control level event if the commissioner finds
there is a reasonable expectation that the mandatory control level events may be
eliminated within the ninety-day period.