23-63-1304. Company action level event — Definition.

23-63-1304. Company action level event — Definition. (a) As used in this subchapter, “company action level event” means any of the following events: (1) The filing of an RBC report by an insurer that indicates: (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 accident and health insurer or a fraternal benefit society, the life or accident and health insurer or the fraternal benefit society 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 three (3) and has a negative trend; or (C) For the year ending December 31, 2011, and each year following, if a property and casualty insurer, the property and casualty 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 three (3) and triggers the trend test determined according to the trend test calculation included in the Property and Casualty RBC Instructions; (2) The notification by the Insurance Commissioner to the insurer of an adjusted RBC report that indicates an event in subdivision (a)(1) of this section, if the insurer does not challenge the adjusted RBC report under § 23-63-1308; or (3) If under § 23-63-1308 an insurer challenges an adjusted RBC report that indicates the event in subdivision (a)(1) of this section, the notification by the commissioner to the insurer that the commissioner, after a hearing, has 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 surplus. The projections for both new and renewal business may 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 without limitation 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 insurer shall submit the RBC plan: (1) Within forty-five (45) days after the company action level event; or (2) If the insurer challenges an adjusted RBC report under § 23-63-1308, within forty-five (45) days after notification to the insurer that the commissioner, after a hearing, has 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 or not the RBC plan is implemented or is unsatisfactory in the judgment of the commissioner. If the commissioner determines the RBC plan is unsatisfactory, the notification to the insurer shall state the reasons for the determination and may state proposed revisions that shall make the RBC plan satisfactory in the judgment of the commissioner. On notification from the commissioner, the insurer shall prepare a revised RBC plan that may incorporate by reference 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 § 23-63-1308, within forty-five (45) days after a notification to the insurer that the commissioner, after a hearing, has 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, subject to the insurer's right to a hearing under § 23-63-1308, may 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 a state in which the insurer may do business if: (1) The state has an RBC provision substantially similar to § 23-63-1309(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 by 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 that the RBC plan or revised RBC plan is filed under subsections (c) and (d) of this section.