§ 26.1-03.2-06 — Mandatory control level event

North Dakota § 26.1-03.2-06

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

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 health
organization's total adjusted capital is less than its mandatory control level
risk-based capital;
b. 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; or
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.
2. In the event of a mandatory control level event, the commissioner shall take such
actions as are necessary to place the health organization 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 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 pursuant to an adjusted risk-based capital report, the health organization
is entitled to the protections 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.