§ 26.1-03.2-05 — Authorized control level event

North Dakota § 26.1-03.2-05

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-03.2: Risk-Based Capital for Health Organizations

Text

1. "Authorized control level event" means any of the following events:
a. The filing of a risk-based capital report by the health organization which indicates
that the health organization's total adjusted capital is greater than or equal to its
mandatory control level risk-based capital but less than its authorized control
level risk-based capital;
b. The notification by the commissioner to the health organization of an adjusted
risk-based capital report that indicates the event in subdivision a, provided the
health organization does not challenge the adjusted risk-based capital report
under section 26.1-03.2-07;
c. If, pursuant to section 26.1-03.2-07, the health organization challenges an
adjusted risk-based capital report that indicates the event in subdivision a,
notification by the commissioner to the health organization that the commissioner,
after a hearing, has rejected the health organization's challenge;
d. The failure of the health organization to respond, in a manner satisfactory to the
commissioner, to a corrective order, provided the health organization has not
challenged the corrective order under section 26.1-03.2-07; or
e. If the health organization has challenged a corrective order under section
26.1-03.2-07 and the commissioner, after a hearing, has rejected the challenge or
modified the corrective order, the failure of the health organization to respond, in
a manner satisfactory to the commissioner, to the corrective order subsequent to
rejection or modification by the commissioner.
2. In the event of an authorized control level event with respect to a health organization,
the commissioner shall:
a. Take such actions as are required under section 26.1-03.2-04 regarding a health
organization with respect to which a regulatory action level event has occurred; or
b. If the commissioner deems it to be in the best interests of the policyholders and
creditors of the health organization and of the public, take such actions as are
necessary to cause the health organization to be placed under regulatory control
under chapter 26.1-06.1. If the commissioner takes such actions, the authorized
control level event must be deemed sufficient grounds for the commissioner to

take action under chapter 26.1-06.1 and the commissioner shall have the rights,
powers, and duties with respect to the health organization as are set forth in
chapter 26.1-06.1. If the commissioner takes actions under this subdivision
pursuant to an adjusted risk-based capital report, the health organization is
entitled to such protections as are afforded to health organizations under the
provisions of chapter 26.1-06.1 pertaining to summary proceedings.