§ 44-6018 — Authorized control level event

(1) Authorized control level event means any of the following events:
(a) The filing of a risk-based capital report by the insurer or health organization which indicates that the insurer's or 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 director to the insurer or health organization of an adjusted risk-based capital report that indicates the 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 ;
(c) If, pursuant to section 44-6020 , the insurer or health organization challenges an adjusted risk-based capital report that indicates the 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;
(d) The failure of the insurer or health organization to respond, in a manner satisfactory to the director, to a corrective order unless the insurer or health organization has challenged the corrective order under section 44-6020 ; or
(e) If the insurer or health organization has challenged a corrective order under section 44-6020 and the director has, after a hearing, rejected the challenge or modified the corrective order, the failure of the insurer or health organization to respond, in a manner satisfactory to the director, to the corrective order subsequent to rejection or modification by the director.
(2) In the event of an authorized control level event the director shall:
(a) Take such actions as are required under section 44-6017 regarding an insurer or a health organization with respect to which a regulatory action level event has occurred; or
(b) If the director deems it to be in the best interests of the policyholders and creditors of the insurer or health organization and of the public, take such actions as are necessary to cause the insurer or health organization to be placed under regulatory control under the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act. In the event the director takes such actions, the authorized control level event shall be deemed sufficient grounds for the director to take action under the act, and the director shall have the rights, powers, and duties with respect to the insurer or health organization as are set forth in the act. In the event the director takes actions under this subdivision pursuant to an adjusted risk-based capital report, the insurer or health organization shall be entitled to such protections as are afforded to insurers or health organizations under the provisions of the act pertaining to summary proceedings.

Legislative History

Source: Laws 1993, LB 583, § 30; Laws 1994, LB 978, § 40; Laws 1999, LB 258, § 23. Cross References: Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act, see section 44-4862.