§ 27-4.7-5. Regulatory action level event.
(a) "Regulatory action level event� means, with respect to a health organization, any
of the following events:
(1) The filing of an RBC report by the health organization that indicates that the health
organization's total adjusted capital is greater than or equal to its authorized control
level RBC but less than its regulatory action level RBC;
(2) Notification by the commissioner to a health organization of an adjusted RBC report
that indicates the event in subsection (a)(1) of this section, provided the health
organization does not challenge the adjusted RBC report under § 27-4.7-8;
(3) If, pursuant to § 27-4.7-8, the health organization challenges an adjusted RBC report that indicates the event
in subsection (a)(1) of this section, the notification by the commissioner to the
health organization that the commissioner has, after a hearing, rejected the health
organization's challenge;
(4) The failure of the health organization to file an RBC report by the filing date, unless
the health organization has provided an explanation for the failure that is satisfactory
to the commissioner and has cured the failure within ten (10) days after the filing
date;
(5) The failure of the health organization to submit an RBC plan to the commissioner within
the time period set forth in § 27-4.7-4(c);
(6) Notification by the commissioner to the health organization that:
(i) The RBC plan or revised RBC plan submitted by the health organization is, in the judgment
of the commissioner, unsatisfactory; and
(ii) Notification constitutes a regulatory action level event with respect to the health
organization, provided the health organization has not challenged the determination
under § 27-4.7-8;
(7) If, pursuant to § 27-4.7-8, the health organization challenges a determination by the commissioner under subsection
(a)(6), the notification by the commissioner to the health organization that the commissioner
has, after a hearing, rejected the challenge;
(8) Notification by the commissioner to the health organization that the health organization
has failed to adhere to its RBC plan or revised RBC plan, but only if the failure
has a substantial adverse effect on the ability of the health organization to eliminate
the company action level event in accordance with its RBC plan or revised RBC plan
and the commissioner has stated this in the notification, provided the health organization
has not challenged the determination under § 27-4.7-8; or
(9) If, pursuant to § 27-4.7-8, the health organization challenges a determination by the commissioner under subsection
(a)(8), the notification by the commissioner to the health organization that the commissioner
has, after a hearing, rejected the challenge.
(b) In the event of a regulatory action level event the commissioner shall:
(1) Require the health organization to prepare and submit an RBC plan or, if applicable,
a revised RBC plan;
(2) Perform any examination or analysis that the commissioner deems necessary of the assets,
liabilities, and operations of the health organization including a review of its RBC
plan or revised RBC plan; and
(3) Subsequent to the examination or analysis, issue an order specifying any corrective
actions that the commissioner determines are required (a "corrective order�).
(c) In determining corrective actions, the commissioner may take into account factors
the commissioner deems relevant with respect to the health organization based upon
the commissioner's examination or analysis of the assets, liabilities, and operations
of the health organization, including, but not limited to, the results of any sensitivity
tests undertaken pursuant to the RBC instructions. The RBC plan or revised RBC plan
shall be submitted:
(1) Within forty-five (45) days after the occurrence of the regulatory action level event;
(2) If the health organization challenges an adjusted RBC report pursuant to § 27-4.7-8 and the challenge is not frivolous in the judgment of the commissioner, within forty-five
(45) days after the notification to the health organization that the commissioner
has, after a hearing, rejected the health organization's challenge; or
(3) If the health organization challenges a revised RBC plan pursuant to § 27-4.7-8 and the challenge is not frivolous in the judgment of the commissioner, within forty-five
(45) days after the notification to the health organization that the commissioner
has, after a hearing, rejected the health organization's challenge.
(d) The commissioner may retain actuaries and investment experts and other consultants
that may be necessary in the judgment of the commissioner to review the health organization's
RBC plan or revised RBC plan, examine or analyze the assets, liabilities, and operations
(including contractual relationships) of the health organization, and formulate the
corrective order with respect to the health organization. The fees, costs, and expenses
relating to consultants shall be borne by the affected health organization or any
other party as directed by the commissioner.