§ 27-4.6-3. Company action level event.
(a) "Company action level event� means any of the following events:
(1) The filing of an RBC report by an insurer that indicates that:
(i) The insurer's total adjusted capital is greater than or equal to its regulatory action
level RBC but less than its company action level RBC;
(ii) If a life and/or health insurer, the insurer has total adjusted capital that is greater
than or equal to its company action level RBC but less than the product of its authorized
control level RBC and 3.0 and has a negative trend; or
(iii) If a property and casualty insurer, the insurer has total adjusted capital that is
greater than or equal to its company action level RBC but less than the product of
its authorized control level RBC and 3.0 and triggers the trend test determined in
accordance with the trend test calculation included in the property and casualty RBC
instructions;
(2) The notification by the commissioner to the insurer of an adjusted RBC report that
indicates an event in subsection (a)(1), provided the insurer does not challenge the
adjusted RBC report under § 27-4.6-7; or
(3) If, pursuant to § 27-4.6-7, an insurer challenges an adjusted RBC report that indicates the event in subsection
(a)(1), the notification by the commissioner to the insurer that the commissioner
has, after a hearing, rejected the insurer's challenge.
(b) In the event of a company action level event, the insurer shall prepare and submit
to the commissioner an RBC plan that shall:
(1) Identify the conditions that contribute to the company action level event;
(2) Contain proposals of corrective actions that the insurer intends to take and would
be expected to result in the elimination of the company action level event;
(3) Provide projections of the insurer's financial results in the current year and at
least the four (4) succeeding years, both in the absence of proposed corrective actions
and giving effect to the proposed corrective actions, including projections of statutory
operating income, net income, capital, and/or surplus. (The projections for both new
and renewal business might include separate projections for each major line of business
and separately identify each significant income, expense, and benefit component);
(4) Identify the key assumptions impacting the insurer's projections and the sensitivity
of the projections to the assumptions; and
(5) Identify the quality of, and problems associated with, the insurer's business, including,
but not limited to: its assets; anticipated business growth and associated surplus
strain; extraordinary exposure to risk; mix of business; and use of reinsurance, if
any, in each case.
(c) The RBC plan shall be submitted:
(1) Within forty-five (45) days of the company action level event; or
(2) If the insurer challenges an adjusted RBC report pursuant to § 27-4.6-7, within forty-five (45) days after notification to the insurer that the commissioner
has, after a hearing, rejected the insurer's challenge.
(d) Within sixty (60) days after the submission by an insurer of an RBC plan to the commissioner,
the commissioner shall notify the insurer whether the RBC plan shall be implemented
or is, in the judgment of the commissioner, unsatisfactory. If the commissioner determines
that the RBC plan is unsatisfactory, the notification to the insurer shall set forth
the reasons for the determination, and may set forth proposed revisions that will
render the RBC plan satisfactory in the judgment of the commissioner. Upon notification
from the commissioner, the insurer shall prepare a revised RBC plan, which may incorporate
by reference any revisions proposed by the commissioner, and shall submit the revised
RBC plan to the commissioner:
(1) Within forty-five (45) days after the notification from the commissioner; or
(2) If the insurer challenges the notification from the commissioner under § 27-4.6-7, within forty-five (45) days after a notification to the insurer that the commissioner
has, after a hearing, rejected the insurer's challenge.
(e) In the event of a notification by the commissioner to an insurer that the insurer's
RBC plan or revised RBC plan is unsatisfactory, the commissioner may at the commissioner's
discretion, subject to the insurer's right to a hearing under § 27-4.6-7, specify in the notification that the notification constitutes a regulatory action
level event.
(f) Every domestic insurer that files an RBC plan or revised RBC plan with the commissioner
shall file a copy of the RBC plan or revised RBC plan with the insurance commissioner
in any state in which the insurer is authorized to do business if:
(1) That state has an RBC provision substantially similar to § 27-4.6-8(a); and
(2) The insurance commissioner of that state has notified the insurer of its request for
the filing in writing, in which case the insurer shall file a copy of the RBC plan
or revised RBC plan in that state no later than the later of:
(i) Fifteen (15) days after the receipt of notice to file a copy of its RBC plan or revised
RBC plan with the state; or
(ii) The date on which the RBC plan or revised RBC plan is filed under subsections (c)
and (d) of this section.