§ 26-48-103 — Company action level event

Wyoming § 26-48-103

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 48: RISK-BASED CAPITAL

Text

(a) "Company action level event" means any of the
following events:
(i) The filing of an RBC report by an insurer which
indicates any of the following:
(A) 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;
(B) If a life or disability insurer, the insurer
has total adjusted capital which is greater than or equal to its
company action level RBC but less than the product of authorized
control level RBC and three (3), and has a negative trend; or
(C) If a property and casualty insurer, the
insurer has total adjusted capital which is greater than or
equal to its company action level RBC but less than three (3)
times its authorized control level RBC and triggers the trend
test in accordance with the trend test calculation included in
the property and casualty RBC instructions.
(ii) The notification by the commissioner to the
insurer of an adjusted RBC report that indicates the event in
subparagraph (a)(i)(A) or (B) of this section, provided the
insurer does not challenge the adjusted RBC report under W.S.
26-48-107; or
(iii) If the insurer challenges an adjusted RBC
report that indicates the event in subparagraph (a)(i)(A) or (B)
of this section, under W.S. 26-48-107, 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
which shall:
(i) Identify the conditions in the insurer which
contribute to the company action level event;
(ii) Contain proposals of corrective actions which
the insurer intends to take and would be expected to result in
the elimination of the company action level event;
(iii) 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 surplus;
(iv) Identify the key assumptions impacting the
insurer's projections and the sensitivity of the projections to
the assumptions; and
(v) 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 in each case, if any.
(c) The RBC plan shall be submitted:
(i) Within forty-five (45) days of the company action
level event; or
(ii) If the insurer challenges an adjusted RBC report
under W.S. 26-48-107, 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 the RBC plan is
unsatisfactory, the notification to the insurer shall set forth
the reasons for the determination, and may set forth proposed
revisions which 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:
(i) Within forty-five (45) days after the
notification from the commissioner; or
(ii) If the insurer challenges the notification from
the commissioner under W.S. 26-48-107, 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 his discretion, subject
to the insurer's right to a hearing under W.S. 26-48-107,
specify in the notification that the notification constitutes a
regulatory action level event.
(f) Every domestic insurer which 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:
(i) The state has an RBC provision substantially
similar to W.S. 26-48-108(a); and
(ii) 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:
(A) Fifteen (15) days after the receipt of
notice to file a copy of its RBC plan or revised RBC plan with
the state; or
(B) The date on which the RBC plan or revised
RBC plan is filed under subsections (c) and (d) of this section.