SECTIONS 739-739.12

739.  As used in this article, these terms shall have the followingmeanings: (a) "Adjusted RBC Report" means a Risk-Based Capital (RBC) reportthat has been adjusted by the commissioner in accordance withsubdivision (c) of Section 739.2. (b) "Corrective Order" means an order issued by the commissionerspecifying corrective actions that the commissioner has determinedare required. (c) "Domestic insurer" means any life or health insurer orproperty and casualty insurer organized in this state. (d) "Foreign insurer" means any life or health insurer or propertyand casualty insurer that is licensed to do business in this statebut is not domiciled in this state. (e) "Life or health insurer" means any admitted insurer issuinginsurance subject to Part 2 (commencing with Section 10110) ofDivision 2, or a licensed property and casualty insurer writing onlydisability insurance. (f) "NAIC" means the National Association of InsuranceCommissioners. (g) "Negative trend" means, with respect to a life or healthinsurer, a negative trend over a period of time, as determined inaccordance with the "Trend Test Calculation" included in the RBCInstructions defined in subdivision (i). (h) "Property and casualty insurer" means any admitted insurerwriting insurance as described in Section 102, 103, 105, 107, 108,109, 110, 111, 112, 113, 114, 115, 116, 118, 119.5, 119.6, or 120,but does not include monoline mortgage guaranty insurers, financialguaranty insurers, or title insurers. (i) "RBC Instructions" means the RBC Report, including risk-basedcapital instructions adopted by the NAIC, and as the RBC Instructionsmay be amended by the NAIC from time to time in accordance with theprocedures adopted by the NAIC. (j) "RBC Level" means an insurer's Company Action Level RBC,Regulatory Action Level RBC, Authorized Control Level RBC, orMandatory Control Level RBC where: (1) "Company Action Level RBC" means, with respect to any insurer,the product of 2.0 and its Authorized Control Level RBC. (2) "Regulatory Action Level RBC" means the product of 1.5 and itsAuthorized Control Level RBC. (3) "Authorized Control Level RBC" means the number determinedunder the risk-based capital formula in accordance with the RBCInstructions. (4) "Mandatory Control Level RBC" means the product of .70 and theAuthorized Control Level RBC. (k) "RBC Plan" means a comprehensive financial plan containing theelements specified in subdivision (b) of Section 739.3. If thecommissioner rejects the RBC Plan, and it is revised by the insurer,with or without the commissioner's recommendation, the plan shall becalled the "Revised RBC Plan." (l) "RBC Report" means the report required in Section 739.2. (m) "Total Adjusted Capital" means the sum of: (1) An insurer's statutory capital and surplus. (2) Other items, if any, that the RBC Instructions may provide.739.2.  (a) Every domestic insurer shall, on or prior to each March15 (the "filing date"), prepare and submit to the commissioner areport of its RBC Levels as of the end of the calendar year justended, in a form and containing such information as is required bythe RBC Instructions. In addition, every domestic insurer shall fileits RBC Report: (1) With the NAIC in accordance with the RBC Instructions. (2) With the insurance commissioner in any state in which theinsurer is authorized to do business, if the insurance commissionerhas notified the insurer of its request in writing, in which case theinsurer shall file its RBC Report not later than the later of: (A) Fifteen days from the receipt of notice to file its RBC Reportwith that state. (B) The filing date. (b) A life or health insurer's RBC shall be determined inaccordance with the formula set forth in the RBC Instructions. Theformula shall take into account, and may adjust for the covariancebetween, the following: (1) The risk with respect to the insurer's assets. (2) The risk of adverse insurance experience with respect to theinsurer's liabilities and obligations. (3) The interest rate risk with respect to the insurer's business. (4) All other business risks and such other relevant risks as areset forth in the RBC Instructions. In each case, these shall be determined by applying the factors inthe manner set forth in the RBC Instructions. (c) A property and casualty insurer's RBC shall be determined inaccordance with the formula set forth in the RBC Instructions. Theformula shall take into account and may adjust for the covariancebetween the following: (1) Asset risk. (2) Credit risk. (3) Underwriting risk. (4) All other business risks and any other relevant risks as areset forth in the RBC Instructions. (d) An excess of capital over the amount produced by therisk-based capital requirements contained in this article and theformulas, schedules, and instructions referenced in this article isdesirable in the business of insurance. Accordingly, insurers shallseek to maintain capital above the RBC levels required by thisarticle. Additional capital is used and useful in the insurancebusiness and helps to secure an insurer against various risksinherent in, or affecting, the business of insurance and notaccounted for or only partially measured by the risk-based capitalrequirements contained in this article. (e) If a domestic insurer files an RBC Report that in the judgmentof the commissioner is inaccurate, then the commissioner shalladjust the RBC Report to correct the inaccuracy and shall notify theinsurer of the adjustment. The notice shall contain a statement ofthe reason for the adjustment. An RBC Report as so adjusted isreferred to as an Adjusted RBC Report.739.3.  (a) "Company Action Level Event" means any of the followingevents: (1) The filing of an RBC Report by an insurer that indicates anyof the following: (A) The insurer's Total Adjusted Capital is greater than or equalto its Regulatory Action Level RBC but less than its Company ActionLevel RBC. (B) If a life or health insurer, the insurer has Total AdjustedCapital that is greater than or equal to its Company Action Level RBCbut less than the product of its Authorized Control Level RBC and2.5, and has a negative trend. (C) If a property and casualty insurer, the insurer has TotalAdjusted Capital that is greater than or equal to its Company ActionLevel RBC but less than the product of its Authorized Control LevelRBC and 3.0, and triggers the trend test determined in accordancewith the trend test calculation included in the Property and CasualtyRBC instructions. (2) The notification by the commissioner to the insurer of anAdjusted RBC Report that indicates the event in subparagraph (A) or(B) of paragraph (1), provided that the insurer does not challengethe Adjusted RBC Report under Section 739.7. (3) If the insurer challenges an Adjusted RBC Report thatindicates the event in subparagraph (A) or (B) of paragraph (1) underSection 739.7, the notification by the commissioner to the insurerthat the commissioner has, after a hearing, rejected the insurer'schallenge. (b) In the event of a Company Action Level Event, the insurershall prepare and submit to the commissioner a comprehensivefinancial plan, which shall do all of the following: (1) Identify the conditions in the insurer that contribute to theCompany Action Level Event. (2) Contain proposals of corrective actions that the insurerintends to take and would be expected to result in the elimination ofthe Company Action Level Event. (3) Provide projections of the insurer's financial results in thecurrent year and at least the four succeeding years, both in theabsence of proposed corrective actions and giving effect to theproposed corrective actions, including projections of statutoryoperating income, net income, capital, or surplus, or a combination.The projections for both new and renewal business may includeseparate projections for each major line of business and separatelyidentify each significant income, expense, and benefit component. (4) Identify the key assumptions impacting the insurer'sprojections and the sensitivity of the projections to theassumptions. (5) Identify the quality of, and problems associated with, theinsurer'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 ofreinsurance in each case, if any. (c) The RBC Plan shall be submitted as follows: (1) Within 45 days of the Company Action Level Event. (2) If the insurer challenges an Adjusted RBC Report pursuant toSection 739.7, within 45 days after notification to the insurer thatthe commissioner has, after a hearing, rejected the insurer'schallenge. (d) Within 60 days after the submission by an insurer of an RBCPlan to the commissioner, the commissioner shall notify the insurerwhether the RBC Plan shall be implemented or is, in the judgment ofthe commissioner, unsatisfactory. If the commissioner determines thatthe RBC Plan is unsatisfactory, the notification to the insurershall set forth the reasons for the determination, and may set forthproposed revisions that will render the RBC Plan satisfactory, in thejudgment of the commissioner. Upon notification from thecommissioner, the insurer shall prepare a Revised RBC Plan, which mayincorporate by reference revisions proposed by the commissioner, andshall submit the Revised RBC Plan to the commissioner as follows: (1) Within 45 days after the notification from the commissioner. (2) If the insurer challenges the notification from thecommissioner under Section 739.7, within 45 days after a notificationto the insurer that the commissioner has, after a hearing, rejectedthe insurer's challenge. (e) In the event of a notification by the commissioner to aninsurer that the insurer's RBC Plan or Revised RBC Plan isunsatisfactory, the commissioner may, at his or her discretion,subject to the insurer's right to a hearing under Section 739.7,specify in the notification that the notification constitutes aRegulatory Action Level Event. (f) Every domestic insurer that files an RBC Plan or Revised RBCPlan with the commissioner shall file a copy of the RBC Plan orRevised RBC Plan with the insurance commissioner in any state inwhich the insurer is authorized to do business if both of thefollowing apply: (1) That state has an RBC provision substantially similar tosubdivision (a) of Section 739.8. (2) The insurance commissioner of that state has notified theinsurer of its request for the filing in writing, in which case theinsurer shall file a copy of the RBC Plan or Revised RBC Plan in thatstate no later than the later of: (A) Fifteen days after the receipt of notice to file a copy of itsRBC Plan or Revised RBC Plan with the state. (B) The date on which the RBC Plan or Revised RBC Plan is filedunder subdivision (c) of Section 739.7.739.4.  (a) "Regulatory Action Level Event" means, with respect toany insurer, any of the following events: (1) The filing of an RBC Report by the insurer that indicates thatthe insurer's Total Adjusted Capital is greater than or equal to itsAuthorized Control Level RBC but less than its Regulatory ActionLevel RBC. (2) The notification by the commissioner to an insurer of anAdjusted RBC Report that indicates the event in paragraph (1),provided the insurer does not challenge the Adjusted RBC Report underSection 739.7. (3) If the insurer challenges an Adjusted RBC Report thatindicates the event in paragraph (1) under Section 739.7, thenotification by the commissioner to the insurer that the commissionerhas, after a hearing, rejected the insurer's challenge. (4) The failure of the insurer to file an RBC Report by the filingdate, unless the insurer has provided an explanation for suchfailure that is satisfactory to the commissioner and has cured thefailure within 10 days after the filing date. (5) The failure of the insurer to submit an RBC Plan to thecommissioner within the time period set forth in subdivision (c) ofSection 739.3. (6) Notification by the commissioner to the insurer of thefollowing: (A) The RBC Plan or revised RBC Plan submitted by the insurer is,in the judgment of the commissioner, unsatisfactory. (B) That notification constitutes a Regulatory Action Level Eventwith respect to the insurer, provided the insurer has not challengedthe determination under Section 739.7. (7) If the insurer challenges a determination by the commissionerunder paragraph (6) pursuant to Section 739.7, the notification bythe commissioner to the insurer that the commissioner has, after ahearing, rejected such challenge. (8) Notification by the commissioner to the insurer that theinsurer has failed to adhere to its RBC Plan or Revised RBC Plan, butonly if such failure has a substantial adverse effect on the abilityof the insurer to eliminate the Regulatory Action Level Event inaccordance with its RBC Plan or Revised RBC Plan and the commissionerhas so stated in the notification, provided the insurer has notchallenged the determination under Section 739.7. (9) If the insurer challenges a determination by the commissionerunder paragraph (8) pursuant to Section 739.7, the notification bythe commissioner to the insurer that the commissioner has, after ahearing, rejected the challenge, unless the failure of the insurer toadhere to its RBC Plan or Revised RBC Plan has no substantialadverse effect on the ability of the insurer to eliminate theRegulatory Action Level Event with respect to the insurer. (b) In the event of a Regulatory Action Level Event thecommissioner shall do all of the following: (1) Require the insurer to prepare and submit an RBC Plan or, ifapplicable, a Revised RBC Plan. (2) Perform such examination or analysis as the commissioner deemsnecessary of the assets, liabilities, and operations of the insurer,including a review of its RBC Plan or Revised RBC Plan. (3) Subsequent to the examination or analysis, issue a correctiveorder specifying such corrective actions as the commissioner shalldetermine are required. (c) In determining corrective actions, the commissioner may takeinto account such factors as are deemed relevant with respect to theinsurer based upon the commissioner's examination or analysis of theassets, liabilities, and operations of the insurer, including, butnot limited to, the results of any sensitivity tests undertakenpursuant to the RBC Instructions. The RBC Plan or Revised RBC Planshall be submitted as follows: (1) Within 45 days after the occurrence of the Regulatory ActionLevel Event. (2) If the insurer challenges an Adjusted RBC Report pursuant toSection 739.7 and the challenge is not in the judgment of thecommissioner frivolous, within 45 days after the notification to theinsurer that the commissioner has, after a hearing, rejected theinsurer's challenge. (3) If the insurer challenges a Revised RBC Plan under Section739.7, within 45 days after notification to the insurer that thecommissioner has, after a hearing, rejected the insurer's challenge. (d) The commissioner may retain actuaries and investment expertsand other consultants as may be necessary in the judgment of thecommissioner to review the insurer's RBC Plan or Revised RBC Plan,examine or analyze the assets, liabilities, and operations of theinsurer and formulate the Corrective Order with respect to theinsurer. The fees, costs, and expenses relating to consultants shallbe borne by the affected insurer or such other party as directed bythe commissioner.739.5.  (a) "Authorized Control Level Event" means any of thefollowing events: (1) The filing of an RBC Report by the insurer that indicates thatthe insurer's Total Adjusted Capital is greater than or equal to itsMandatory Control Level RBC but less than its Authorized ControlLevel RBC. (2) The notification by the commissioner to the insurer of anAdjusted RBC Report that indicates the event in paragraph (1),provided the insurer does not challenge the Adjusted RBC Report underSection 739.7. (3) If the insurer challenges an Adjusted RBC Report thatindicates the event in paragraph (1) under Section 739.7,notification by the commissioner to the insurer that the commissionerhas, after a hearing, rejected the insurer's challenge. (4) The failure of the insurer to respond, in a mannersatisfactory to the commissioner, to a Corrective Order, provided theinsurer has not challenged the Corrective Order under Section 739.7. (5) If the insurer has challenged a Corrective Order under Section739.7 and the commissioner has, after a hearing, rejected thechallenge or modified the Corrective Order, the failure of theinsurer to respond, in a manner satisfactory to the commissioner, tothe Corrective Order subsequent to rejection or modification by thecommissioner. (b) In the event of an Authorized Control Level Event with respectto an insurer, the commissioner shall do the following: (1) Take such actions as are required under Section 739.4regarding an insurer with respect to which a Regulatory Action LevelEvent has occurred. (2) If the commissioner deems it to be in the best interests ofthe policyholders and creditors of the insurer and of the public,take such actions as are necessary to cause the insurer to be placedunder regulatory control under Article 14 (commencing with Section1010), Article 14.3 (commencing with Section 1064.1), Article 14.5(commencing with Section 1065.1), and Article 15.5 (commencing withSection 1077). In the event the commissioner takes those actions, theAuthorized Control Level Event shall be deemed sufficient groundsfor the commissioner to take that action, and the commissioner shallhave the rights, powers, and duties with respect to the insurer asare set forth in those provisions. In the event the commissionertakes actions under this paragraph pursuant to an Adjusted RBCReport, the insurer shall be entitled to such protections as areafforded to insurers under the provisions pertaining to summaryproceedings. (c) In the event of an Authorized Control Level Event with respectto the State Compensation Insurance Fund, the commissioner shallalso issue a report to the Governor, the President pro Tempore of theSenate, and the Speaker of the Assembly setting forth the conditionsthat exist. (d) Upon a determination of the commissioner that an AuthorizedControl Level Event has occurred, the Governor, in consultation withthe Legislature, may replace the President of the State CompensationInsurance Fund and appoint a recovery administrator. The recoveryadministrator shall be responsible for developing a plan of recoveryfor the State Compensation Insurance Fund, and for implementing theplan. The recovery administrator shall be a person who, throughprofessional credentials or job experience, or both, has ademonstrated understanding of insurance law, insurer finances,experience in the rehabilitation of insurance companies, claimsadministration, and any other factors as are needed to create andexecute a plan of recovery. The cost of the recovery administratorshall be borne by the State Compensation Insurance Fund. Theadministration shall remain until the commissioner conveys to theGovernor his or her opinion that the fund has improved its financesto the extent that it is no longer at the Authorized Control Level orabove, at which point the Governor may dismiss the recoveryadministrator and appoint a new President of the State CompensationInsurance Fund. During the time that the recovery administrator isacting, the board of the State Compensation Insurance Fund shall actin an advisory capacity to the recovery administrator and theGovernor.739.6.  (a) "Mandatory Control Level Event" means any of thefollowing events: (1) The filing of an RBC Report that indicates that the insurer'sTotal Adjusted Capital is less than its Mandatory Control Level RBC. (2) Notification by the commissioner to the insurer of an AdjustedRBC Report that indicates the event in paragraph (1), provided theinsurer does not challenge the Adjusted RBC Report under Section739.7. (3) If the insurer challenges an Adjusted RBC Report thatindicates the event in paragraph (1) under Section 739.7,notification by the commissioner to the insurer that the commissionerhas, after a hearing, rejected the insurer's challenge. (b) (1) With respect to a life or health insurer, in the event ofa Mandatory Control Level Event, the commissioner shall take actionsas are necessary to cause the insurer to be placed under regulatorycontrol under Article 14 (commencing with Section 1010), Article 14.3(commencing with Section 1064.1), Article 14.5 (commencing withSection 1065.1), and Article 15.5 (commencing with Section 1077). Inthat event, the Mandatory Control Level Event shall be deemedsufficient grounds for the commissioner to take action under thoseacts, and the commissioner shall have the rights, powers, and dutieswith respect to the insurer as are set forth therein. In the eventthe commissioner takes actions pursuant to an Adjusted RBC Report,the insurer shall be entitled to protections as are afforded toinsurers under those provisions. Notwithstanding any of theforegoing, the commissioner may forego action for up to 90 days afterthe Mandatory Control Level Event if he or she finds there is areasonable expectation that the Mandatory Control Level Event may beeliminated within the 90-day period. (2) With respect to a property and casualty insurer, thecommissioner shall take those actions as are necessary to place theinsurer under regulatory control, or, in the case of an insurer whichis writing no business and that is running-off its existingbusiness, may allow the insurer to continue its runoff under thesupervision of the commissioner. In either event, the MandatoryControl Level Event shall be deemed sufficient grounds for thecommissioner to take action and the commissioner shall have therights, powers, and duties with respect to the insurer as are setforth in Article 14 (commencing with Section 1010). If thecommissioner takes actions pursuant to an Adjusted RBC Report, theinsurer shall be entitled to the protections of Article 14(commencing with Section 1010) pertaining to summary proceedings.Notwithstanding any of the foregoing, the commissioner may foregoaction for up to 90 days after the Mandatory Control Level Event ifthe commissioner finds there is a reasonable expectation that theMandatory Control Level Event may be eliminated within the 90-dayperiod. (3) In the event of a Mandatory Control Level Event with respectto the State Compensation Insurance Fund, the commissioner shall alsoissue a report to the Governor, the President pro Tempore of theSenate, and the Speaker of the Assembly setting forth the conditionsthat exist.739.7.  Upon any of the events described in subdivision (a), (b),(c), or (d), the insurer shall have the right to a departmentalhearing, on the record, at which the insurer may challenge anydetermination or action by the commissioner. The insurer shall notifythe commissioner of its request for a hearing within five days afterthe notification by the commissioner under subdivision (a), (b),(c), or (d). Upon receipt of the insurer's request for a hearing, thecommissioner shall set a date for the hearing, which date shall beno less than 10 nor more than 30 days after the date of the insurer'srequest. (a) Notification to an insurer by the commissioner of an AdjustedRBC Report. (b) Notification to an insurer by the commissioner that: (1) The insurer's RBC Plan or Revised RBC Plan is unsatisfactory. (2) That notification constitutes a Regulatory Action Level Eventwith respect to the insurer. (c) Notification to any insurer by the commissioner that theinsurer has failed to adhere to its RBC Plan or Revised RBC Plan andthat such failure has a substantial adverse effect on the ability ofthe insurer to eliminate the Company Action Level Event with respectto the insurer in accordance with its RBC Plan or Revised RBC Plan. (d) Notification to an insurer by the commissioner of a CorrectiveOrder with respect to the insurer.739.8.  (a) All RBC Reports, to the extent the information withinthose reports is not required to be set forth in a publicly availableannual statement schedule, and RBC Plans, including the results orreport of any examination or analysis of an insurer performedpursuant to those plans, and any Corrective Order issued by thecommissioner pursuant to examination or analysis, with respect to anydomestic insurer or foreign insurer, that are filed with thecommissioner constitute information that might be damaging to theinsurer if made available to its competitors, and therefore shall bekept confidential by the commissioner. This information shall not bemade public or be subject to subpoena, other than by the commissionerand then only for the purpose of enforcement actions taken by thecommissioner pursuant to this chapter or any other provision of theinsurance laws of this state. (b) It is the judgment of the Legislature that the comparison ofan insurer's Total Adjusted Capital to any of its RBC Levels is aregulatory tool that may indicate the need for possible correctiveaction with respect to the insurer, and is not intended as a means torank insurers generally. Therefore, except as otherwise requiredunder this article, the making, publishing, disseminating,circulating, or placing before the public, or causing, directly orindirectly, to be made, published, disseminated, circulated, orplaced before the public, in a newspaper, magazine, or otherpublication, or in the form of a notice, circular, pamphlet, letter,or poster, or over any radio or television station, or in any otherway, an advertisement, announcement, or statement containing anassertion, representation, or statement with regard to the RBC Levelsof any insurer, or of any component derived in the calculation, byany insurer, agent, broker, or other person engaged in any manner inthe insurance business would be misleading and is thereforeprohibited; provided, however, that if any materially false statementwith respect to the comparison regarding an insurer's Total AdjustedCapital to its RBC Levels (or any of them) or an inappropriatecomparison of any other amount to the insurers' RBC Levels ispublished in any written publication and the insurer is able todemonstrate to the commissioner with substantial proof the falsity ofsuch statement, or the inappropriateness, as the case may be, thenthe insurer may publish an announcement in a written publication ifthe sole purpose of the announcement is to rebut the materially falsestatement. (c) It is the further judgment of the Legislature that the RBCInstructions, RBC Reports, Adjusted RBC Reports, RBC Plans, andRevised RBC Plans are intended solely for use by the commissioner inmonitoring the solvency of insurers and the need for possiblecorrective action with respect to insurers, and shall not be used bythe commissioner for ratemaking nor considered or introduced asevidence in any rate proceeding, nor used by the commissioner tocalculate or derive any elements of an appropriate premium level orrate of return for any line of insurance that an insurer or anyaffiliate is authorized to write. This subdivision does not affectthe validity of any action taken before its effective date.739.9.  (a) The provisions of this article are supplemental to anyother provisions of the laws of this state, and shall not preclude orlimit any other powers or duties of the commissioner under suchlaws. (b) The commissioner may adopt reasonable rules necessary for theimplementation of this article. (c) The commissioner may exempt from the application of thisarticle any domestic property and casualty insurer that does all ofthe following: (1) Writes direct business only in this state. (2) Writes direct annual premiums of five million dollars($5,000,000) or less. (3) Assumes no reinsurance in excess of 5 percent of directpremiums written.739.10.  (a) Any foreign insurer shall, upon the written request ofthe commissioner, submit to the commissioner an RBC Report as of theend of the calendar year just ended the later of: (1) The date an RBC Report would be required to be filed by adomestic insurer under this chapter. (2) Fifteen days after the request is received by the foreigninsurer. Any foreign insurer shall, at the written request of thecommissioner, promptly submit to the commissioner a copy of any RBCPlan that is filed with the insurance commissioner of any otherstate. (b) In the event of a Company Action Level Event or RegulatoryAction Level Event with respect to any foreign insurer as determinedunder the RBC statute applicable in the state of domicile of theinsurer, or, if no RBC provision is in force in that state, under theprovisions of this chapter, if the insurance commissioner of thestate of domicile of the foreign insurer fails to require the foreigninsurer to file an RBC Plan in the manner specified under the RBCstatute, or, if no RBC provision is in force in the state, underSection 739.3, the commissioner may require the foreign insurer tofile an RBC Plan with the commissioner. In such event, the failure ofthe foreign insurer to file an RBC Plan with the commissioner shallbe grounds to order the insurer to cease and desist from writing newinsurance business in this state. (c) In the event of a Mandatory Control Level Event with respectto any foreign insurer, if no domiciliary receiver has been appointedwith respect to the foreign insurer under the rehabilitation andliquidation statute applicable in the state of domicile of theforeign insurer, the commissioner may make application to thesuperior court with respect to the liquidation of property of foreigninsurers found in this state, and the occurrence of the MandatoryControl Level Event shall be considered adequate grounds for theapplication.739.11.  If any provision of this article, or the applicationthereof to any person or circumstance, is held invalid, suchdetermination shall not affect the provisions or applications of thisarticle that can be given effect without the invalid provision orapplication, and to that end the provisions of this article areseverable.739.12.  (a) All notices by the commissioner to an insurer that mayresult in regulatory action hereunder shall be effective upondispatch if transmitted by registered or certified mail, or in thecase of any other transmission shall be effective upon the insurer'sreceipt of such notice. (b) Copies of all notices from the commissioner to the StateCompensation Insurance Fund under this article shall be sent to theGovernor.