(a) "Regulatoryaction level event" means, with respect to any insurer, any of thefollowing events:
(1) The filing of a risk‑basedcapital plan report by the insurer that indicates that the insurer's totaladjusted capital is greater than or equal to its authorized control level risk‑basedcapital but less than its regulatory action level risk‑based capital.
(2) The notification bythe Commissioner to an insurer of an adjusted risk‑based capital reportthat indicates the event in subdivision (1) of this subsection, if the insurerdoes not challenge the adjusted risk‑based capital report under G.S. 58‑12‑30.
(3) If the insurerchallenges an adjusted risk‑based capital report that indicates the eventin subdivision (1) of this subsection under G.S. 58‑12‑30, thenotification by the Commissioner to the insurer that the Commissioner hasrejected the insurer's challenge.
(4) The failure of theinsurer to file a risk‑based capital report by the filing date, unlessthe insurer has provided an explanation for the failure that is satisfactory tothe Commissioner and has cured the failure within 10 days after the filingdate.
(5) The failure of theinsurer to submit a risk‑based capital plan to the Commissioner withinthe time period set forth in G.S. 58‑12‑11(c).
(6) Notification by theCommissioner to the insurer that:
a. The risk‑basedcapital plan or revised risk‑based capital plan submitted by the insureris, in the judgment of the Commissioner, unsatisfactory; and
b. The notificationconstitutes a regulatory action level event with respect to the insurer,provided the insurer has not challenged the determination under G.S. 58‑12‑30.
(7) If the insurerchallenges a determination by the Commissioner under subdivision (6) of thissubsection pursuant to G.S. 58‑12‑30, the notification by theCommissioner to the insurer that the Commissioner has rejected the challenge.
(8) Notification by theCommissioner to the insurer that the insurer has failed to adhere to its risk‑basedcapital plan or revised risk‑based capital plan; but only if the failurehas a substantial adverse effect on the ability of the insurer to eliminate thecompany action level event in accordance with its risk‑based capital planor revised risk‑based capital plan and the Commissioner has so stated inthe notification, provided the insurer has not challenged the determinationunder G.S. 58‑12‑30.
(9) If the insurerchallenges a determination by the Commissioner under subdivision (8) of thissubsection pursuant to G.S. 58‑12‑30, the notification by theCommissioner to the insurer that the Commissioner has rejected the challenge(unless the failure of the insurer to adhere to its risk‑based capitalplan or revised risk‑based capital plan has no substantial adverse effecton the ability of the insurer to eliminate the regulatory action level eventwith respect to the insurer).
(b) In the event of aregulatory action level event the Commissioner shall:
(1) Require the insurerto prepare and submit a risk‑based capital plan or, if applicable, arevised risk‑based capital plan.
(2) Perform suchexamination or analysis, as the Commissioner deems necessary, of the assets,liabilities, and operations of the insurer, including a review of its risk‑basedcapital plan or revised risk‑based capital plan.
(3) After theexamination or analysis, issue an order specifying such corrective actions asthe Commissioner shall determine are required (a "Corrective Order").
(c) In determiningcorrective actions, the Commissioner may take into account such factors as aredeemed relevant with respect to the insurer based upon the Commissioner'sexamination or analysis of the assets, liabilities, and operations of theinsurer, including, but not limited to, the results of any sensitivity testsundertaken pursuant to risk‑based capital instructions. The risk‑basedcapital plan or revised risk‑based capital plan shall be submitted:
(1) Within 45 days afterthe occurrence of the regulatory action level event;
(2) If the insurerchallenges an adjusted risk‑based capital report pursuant to G.S. 58‑12‑30and the challenge is not in the judgment of the Commissioner frivolous, within45 days after the notification to the insurer that the Commissioner has, aftera hearing, rejected the insurer's challenge; or
(3) If the insurerchallenges a revised risk‑based capital plan under G.S. 58‑12‑30,within 45 days after notification to the insurer that the Commissioner hasrejected the challenge.
(d) The Commissionermay retain actuaries and investment experts and other consultants as may benecessary in the judgment of the Commissioner to review the insurer's risk‑basedcapital plan or revised risk‑based capital plan, examine or analyze theassets, liabilities, and operations of the insurer and formulate the CorrectiveOrder with respect to the insurer. The fees, costs, and expenses relating toconsultants shall be borne by the affected insurer or such other party asdirected by the Commissioner. (1993 (Reg. Sess., 1994), c.678, s. 1.)
(a) "Regulatoryaction level event" means, with respect to any insurer, any of thefollowing events:
(1) The filing of a risk‑basedcapital plan report by the insurer that indicates that the insurer's totaladjusted capital is greater than or equal to its authorized control level risk‑basedcapital but less than its regulatory action level risk‑based capital.
(2) The notification bythe Commissioner to an insurer of an adjusted risk‑based capital reportthat indicates the event in subdivision (1) of this subsection, if the insurerdoes not challenge the adjusted risk‑based capital report under G.S. 58‑12‑30.
(3) If the insurerchallenges an adjusted risk‑based capital report that indicates the eventin subdivision (1) of this subsection under G.S. 58‑12‑30, thenotification by the Commissioner to the insurer that the Commissioner hasrejected the insurer's challenge.
(4) The failure of theinsurer to file a risk‑based capital report by the filing date, unlessthe insurer has provided an explanation for the failure that is satisfactory tothe Commissioner and has cured the failure within 10 days after the filingdate.
(5) The failure of theinsurer to submit a risk‑based capital plan to the Commissioner withinthe time period set forth in G.S. 58‑12‑11(c).
(6) Notification by theCommissioner to the insurer that:
a. The risk‑basedcapital plan or revised risk‑based capital plan submitted by the insureris, in the judgment of the Commissioner, unsatisfactory; and
b. The notificationconstitutes a regulatory action level event with respect to the insurer,provided the insurer has not challenged the determination under G.S. 58‑12‑30.
(7) If the insurerchallenges a determination by the Commissioner under subdivision (6) of thissubsection pursuant to G.S. 58‑12‑30, the notification by theCommissioner to the insurer that the Commissioner has rejected the challenge.
(8) Notification by theCommissioner to the insurer that the insurer has failed to adhere to its risk‑basedcapital plan or revised risk‑based capital plan; but only if the failurehas a substantial adverse effect on the ability of the insurer to eliminate thecompany action level event in accordance with its risk‑based capital planor revised risk‑based capital plan and the Commissioner has so stated inthe notification, provided the insurer has not challenged the determinationunder G.S. 58‑12‑30.
(9) If the insurerchallenges a determination by the Commissioner under subdivision (8) of thissubsection pursuant to G.S. 58‑12‑30, the notification by theCommissioner to the insurer that the Commissioner has rejected the challenge(unless the failure of the insurer to adhere to its risk‑based capitalplan or revised risk‑based capital plan has no substantial adverse effecton the ability of the insurer to eliminate the regulatory action level eventwith respect to the insurer).
(b) In the event of aregulatory action level event the Commissioner shall:
(1) Require the insurerto prepare and submit a risk‑based capital plan or, if applicable, arevised risk‑based capital plan.
(2) Perform suchexamination or analysis, as the Commissioner deems necessary, of the assets,liabilities, and operations of the insurer, including a review of its risk‑basedcapital plan or revised risk‑based capital plan.
(3) After theexamination or analysis, issue an order specifying such corrective actions asthe Commissioner shall determine are required (a "Corrective Order").
(c) In determiningcorrective actions, the Commissioner may take into account such factors as aredeemed relevant with respect to the insurer based upon the Commissioner'sexamination or analysis of the assets, liabilities, and operations of theinsurer, including, but not limited to, the results of any sensitivity testsundertaken pursuant to risk‑based capital instructions. The risk‑basedcapital plan or revised risk‑based capital plan shall be submitted:
(1) Within 45 days afterthe occurrence of the regulatory action level event;
(2) If the insurerchallenges an adjusted risk‑based capital report pursuant to G.S. 58‑12‑30and the challenge is not in the judgment of the Commissioner frivolous, within45 days after the notification to the insurer that the Commissioner has, aftera hearing, rejected the insurer's challenge; or
(3) If the insurerchallenges a revised risk‑based capital plan under G.S. 58‑12‑30,within 45 days after notification to the insurer that the Commissioner hasrejected the challenge.
(d) The Commissionermay retain actuaries and investment experts and other consultants as may benecessary in the judgment of the Commissioner to review the insurer's risk‑basedcapital plan or revised risk‑based capital plan, examine or analyze theassets, liabilities, and operations of the insurer and formulate the CorrectiveOrder with respect to the insurer. The fees, costs, and expenses relating toconsultants shall be borne by the affected insurer or such other party asdirected by the Commissioner. (1993 (Reg. Sess., 1994), c.678, s. 1.)
(a) "Regulatoryaction level event" means, with respect to any insurer, any of thefollowing events:
(1) The filing of a risk‑basedcapital plan report by the insurer that indicates that the insurer's totaladjusted capital is greater than or equal to its authorized control level risk‑basedcapital but less than its regulatory action level risk‑based capital.
(2) The notification bythe Commissioner to an insurer of an adjusted risk‑based capital reportthat indicates the event in subdivision (1) of this subsection, if the insurerdoes not challenge the adjusted risk‑based capital report under G.S. 58‑12‑30.
(3) If the insurerchallenges an adjusted risk‑based capital report that indicates the eventin subdivision (1) of this subsection under G.S. 58‑12‑30, thenotification by the Commissioner to the insurer that the Commissioner hasrejected the insurer's challenge.
(4) The failure of theinsurer to file a risk‑based capital report by the filing date, unlessthe insurer has provided an explanation for the failure that is satisfactory tothe Commissioner and has cured the failure within 10 days after the filingdate.
(5) The failure of theinsurer to submit a risk‑based capital plan to the Commissioner withinthe time period set forth in G.S. 58‑12‑11(c).
(6) Notification by theCommissioner to the insurer that:
a. The risk‑basedcapital plan or revised risk‑based capital plan submitted by the insureris, in the judgment of the Commissioner, unsatisfactory; and
b. The notificationconstitutes a regulatory action level event with respect to the insurer,provided the insurer has not challenged the determination under G.S. 58‑12‑30.
(7) If the insurerchallenges a determination by the Commissioner under subdivision (6) of thissubsection pursuant to G.S. 58‑12‑30, the notification by theCommissioner to the insurer that the Commissioner has rejected the challenge.
(8) Notification by theCommissioner to the insurer that the insurer has failed to adhere to its risk‑basedcapital plan or revised risk‑based capital plan; but only if the failurehas a substantial adverse effect on the ability of the insurer to eliminate thecompany action level event in accordance with its risk‑based capital planor revised risk‑based capital plan and the Commissioner has so stated inthe notification, provided the insurer has not challenged the determinationunder G.S. 58‑12‑30.
(9) If the insurerchallenges a determination by the Commissioner under subdivision (8) of thissubsection pursuant to G.S. 58‑12‑30, the notification by theCommissioner to the insurer that the Commissioner has rejected the challenge(unless the failure of the insurer to adhere to its risk‑based capitalplan or revised risk‑based capital plan has no substantial adverse effecton the ability of the insurer to eliminate the regulatory action level eventwith respect to the insurer).
(b) In the event of aregulatory action level event the Commissioner shall:
(1) Require the insurerto prepare and submit a risk‑based capital plan or, if applicable, arevised risk‑based capital plan.
(2) Perform suchexamination or analysis, as the Commissioner deems necessary, of the assets,liabilities, and operations of the insurer, including a review of its risk‑basedcapital plan or revised risk‑based capital plan.
(3) After theexamination or analysis, issue an order specifying such corrective actions asthe Commissioner shall determine are required (a "Corrective Order").
(c) In determiningcorrective actions, the Commissioner may take into account such factors as aredeemed relevant with respect to the insurer based upon the Commissioner'sexamination or analysis of the assets, liabilities, and operations of theinsurer, including, but not limited to, the results of any sensitivity testsundertaken pursuant to risk‑based capital instructions. The risk‑basedcapital plan or revised risk‑based capital plan shall be submitted:
(1) Within 45 days afterthe occurrence of the regulatory action level event;
(2) If the insurerchallenges an adjusted risk‑based capital report pursuant to G.S. 58‑12‑30and the challenge is not in the judgment of the Commissioner frivolous, within45 days after the notification to the insurer that the Commissioner has, aftera hearing, rejected the insurer's challenge; or
(3) If the insurerchallenges a revised risk‑based capital plan under G.S. 58‑12‑30,within 45 days after notification to the insurer that the Commissioner hasrejected the challenge.
(d) The Commissionermay retain actuaries and investment experts and other consultants as may benecessary in the judgment of the Commissioner to review the insurer's risk‑basedcapital plan or revised risk‑based capital plan, examine or analyze theassets, liabilities, and operations of the insurer and formulate the CorrectiveOrder with respect to the insurer. The fees, costs, and expenses relating toconsultants shall be borne by the affected insurer or such other party asdirected by the Commissioner. (1993 (Reg. Sess., 1994), c.678, s. 1.)
