(1)Company action level event means
any of the following events:
(a)The filing of a risk-based capital report by an insurer
or a health organization which indicates that:
(i)The insurer's or health organization's total adjusted
capital is greater than or equal to its regulatory action level risk-based
capital but less than its company action level risk-based capital;
(ii)If a life and health insurer or a fraternal benefit society,
the insurer or society has total adjusted capital which is greater than or
equal to its company action level risk-based capital but less than the product
of its authorized control level risk-based capital and 3.0 and
has a negative trend;
(iii)If a property and casualty insurer, the insurer has
total adjusted capital which is greater than or equal to its com
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(1) Company action level event means
any of the following events:
(a) The filing of a risk-based capital report by an insurer
or a health organization which indicates that:
(i) The insurer's or health organization's total adjusted
capital is greater than or equal to its regulatory action level risk-based
capital but less than its company action level risk-based capital;
(ii) If a life and health insurer or a fraternal benefit society,
the insurer or society has total adjusted capital which is greater than or
equal to its company action level risk-based capital but less than the product
of its authorized control level risk-based capital and 3.0 and
has a negative trend;
(iii) If a property and casualty insurer, the insurer has
total adjusted capital which is greater than or equal to its company action
level risk-based capital but less than the product of its authorized control
level risk-based capital and 3.0 and triggers the trend test determined in
accordance with the trend test calculation included in the property and casualty
risk-based capital instructions; or
(iv) If a health
organization has total adjusted capital which is greater than or equal to
its company action level risk-based capital but less than the product of its
authorized control level risk-based capital and 3.0 and triggers the trend
test determined in accordance with the trend test calculation included in
the health risk-based capital instructions;
(b)
The notification by the director to the insurer or health organization of
an adjusted risk-based capital report that indicates an event described in
subdivision (1)(a) of this section unless the insurer or health organization
challenges the adjusted risk-based capital report under section 44-6020 ; or
(c) If, pursuant to section 44-6020 , the insurer or health
organization challenges an adjusted risk-based capital report that indicates
an event described in subdivision (1)(a) of this section, the notification
by the director to the insurer or health organization that the director has,
after a hearing, rejected the insurer's or health organization's challenge.
(2) In the event of a company action level event, the insurer
or health organization shall prepare and submit to the director a risk-based
capital plan which shall:
(a) Identify the conditions which contribute to the company
action level event;
(b) Contain proposals of corrective actions which the insurer
or health organization intends to take and would be expected to result in
the elimination of the company action level event;
(c) Provide projections of the insurer's or health organization's
financial results in the current year and at least the four succeeding years
in the case of an insurer or at least the two succeeding years in the case
of a health organization, 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 risk-based capital levels. The projections for both new and renewal business
may include separate projections for each major line of business and separately
identify each significant income, expense, and benefit component;
(d) Identify the key assumptions impacting the insurer's
or health organization's projections and the sensitivity of the projections
to the assumptions; and
(e) Identify the quality of, and problems associated with,
the insurer's or health organization's business, including, but not limited
to, its assets, anticipated business growth and associated surplus strain,
extraordinary exposure to risk, and mix of business and use of reinsurance,
if any, in each case.
(3) The risk-based capital plan shall be submitted:
(a) Within forty-five days after the occurrence of the company
action level event; or
(b) If the insurer or health organization challenges an adjusted
risk-based capital report pursuant to section 44-6020 , within forty-five days
after the notification to the insurer or health organization that the director
has, after a hearing, rejected the insurer's or health organization's challenge.
(4) Within sixty days after the submission by an insurer
or a health organization of a risk-based capital plan to the director, the
director shall notify the insurer or health organization whether the risk-based
capital plan shall be implemented or is, in the judgment of the director,
unsatisfactory. If the director determines that the risk-based capital plan
is unsatisfactory, the notification to the insurer or health organization
shall set forth the reasons for the determination and may set forth proposed
revisions which will render the risk-based capital plan satisfactory in the
judgment of the director. Upon notification from the director, the insurer
or health organization shall prepare a revised risk-based capital plan which
may incorporate by reference any revisions proposed by the director. The insurer
or health organization shall submit the revised risk-based capital plan to
the director:
(a) Within forty-five days after the notification from the
director; or
(b) If the insurer or health organization challenges the
notification from the director under section 44-6020 , within forty-five days
after a notification to the insurer or health organization that the director
has, after a hearing, rejected the insurer's or health organization's challenge.
(5) In the event of a notification by the director to an
insurer or a health organization that the insurer's or health organization's
risk-based capital plan or revised risk-based capital plan is unsatisfactory,
the director may, at the director's discretion and subject to the insurer's
or health organization's right to a hearing under section 44-6020 , specify
in the notification that the notification constitutes a regulatory action
level event.
(6) Every domestic insurer or domestic health organization
that files a risk-based capital plan or revised risk-based capital plan with
the director shall file a copy of the risk-based capital plan or revised risk-based
capital plan with the insurance commissioner of any state in which the insurer
or health organization is authorized to do business if:
(a) Such state has a law substantially similar to subsection
(1) of section 44-6021 ; and
(b) The insurance commissioner of such state has notified
the insurer or health organization of its request for the filing in writing,
in which case the insurer or health organization shall file a copy of the
risk-based capital plan or revised risk-based capital plan in such state no
later than the later of:
(i) Fifteen days after the receipt of notice to file a copy
of its risk-based capital plan or revised risk-based capital plan with the
state; or
(ii) The date on which the risk-based capital plan or revised
risk-based capital plan is filed under subsection (3) or (4) of this section.