§ 27-4.7-6. Authorized control level event.
(a) "Authorized control level event� means 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 mandatory control
level RBC but less than its authorized control level RBC;
(2) The notification by the commissioner to the 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, 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 respond, in a manner satisfactory to the
commissioner, to a corrective order (provided the health organization has not challenged
the corrective order under § 27-4.7-8); or
(5) If the health organization has challenged a corrective order under § 27-4.7-8 and the commissioner has, after a hearing, rejected the challenge or modified the
corrective order, the failure of the health organization to respond, in a manner satisfactory
to the commissioner, to the corrective order subsequent to rejection or modification
by the commissioner.
(b) In the event of an authorized control level event with respect to a health organization,
the commissioner shall:
(1) Take any actions that are required under § 27-4.7-5 regarding a health organization with respect to which a regulatory action level event
has occurred; or
(2) If the commissioner deems it to be in the best interests of the policyholders and
creditors of the health organization and of the public, take any actions that are
necessary to cause the health organization to be placed under regulatory control pursuant
to chapters 14.1, 14.2, and 14.3 of this title. In the event the commissioner takes
these actions, the authorized control level event shall be deemed sufficient grounds
for the commissioner to take action under chapters 14.1, 14.2, and 14.3 of this title,
and the commissioner has the rights, powers, and duties with respect to the health
organization that are set forth in chapters 14.1, 14.2, and 14.3 of this title. In
the event the commissioner takes actions under this subsection (b)(2) pursuant to
an adjusted RBC report, the health organization is entitled to any protections that
are afforded to health organizations under the provisions of chapter 35 of title 42 pertaining to summary proceedings.