§431:3-404  Regulatory action level event. 
(a)  "Regulatory action level event" means, with respect to any
insurer, any of the following events:



(1)  The filing of a risk-based capital report by the
insurer which indicates that the insurer's total adjusted capital is greater
than or equal to its authorized control level risk-based capital but less than
its regulatory action level risk-based capital;



(2)  The notification by the commissioner to an
insurer of an adjusted risk-based capital report that indicates the occurrence
of the event in paragraph (1), if the insurer does not challenge the adjusted
risk-based capital report under section 431:3-407;



(3)  If, pursuant to section 431:3-407, the insurer
challenges an adjusted risk-based capital report that indicates the occurrence
of the event in paragraph (1), the notification by the commissioner to the
insurer that the commissioner has, after a hearing, rejected the insurer's
challenge;



(4)  The failure of the insurer to file a risk-based
capital report by the filing date, unless the insurer has provided an
explanation for the failure which is satisfactory to the commissioner and has
cured the failure within ten days after the filing date;



(5)  The failure of the insurer to submit a risk-based
capital plan to the commissioner within the time set forth in section
431:3-403(c);



(6)  Notification by the commissioner to the insurer
that:



(A)  The risk-based capital plan or revised
risk-based capital plan submitted by the insurer is, in the judgment of the
commissioner, unsatisfactory; and



(B)  The notification constitutes a regulatory
action level event with respect to the insurer, if the insurer has not
challenged the determination under section 431:3-407;



(7)  If, pursuant to section 431:3-407, the insurer
challenges a determination by the commissioner under paragraph (6), the
notification by the commissioner to the insurer that the commissioner, after a
hearing, has rejected the challenge;



(8)  Notification by the commissioner to the insurer
that the insurer has failed to adhere to its risk-based capital plan or revised
risk-based capital plan, but only if the failure has a substantial adverse
effect on the ability of the insurer to eliminate the company action level
event in accordance with its risk-based capital plan or revised risk-based
capital plan and the commissioner has so stated in the notification, and if the
insurer has not challenged the determination under section 431:3-407; or



(9)  If, pursuant to section 431:3-407, the insurer
challenges a determination by the commissioner under paragraph (8), the
notification by the commissioner to the insurer that the commissioner, after a
hearing, has rejected the challenge.



(b)  In the event of a regulatory action level
event the commissioner shall:



(1)  Require the insurer to prepare and submit a
risk-based capital plan or, if applicable, a revised risk-based capital plan;



(2)  Perform any examination or analysis that the
commissioner deems necessary of the assets, liabilities, and operations of the
insurer including a review of its risk-based capital plan or revised risk-based
capital plan; and



(3)  Subsequent to the examination or analysis, issue
a corrective order specifying the corrective actions the commissioner
determines are required.



(c)  In determining corrective actions, the
commissioner may take into account any relevant factors with respect to the
insurer based upon the commissioner's examination or analysis of the assets,
liabilities, and operations of the insurer, including but not limited to the results
of any sensitivity tests undertaken pursuant to the risk-based capital
instructions.  The risk-based capital plan or revised risk-based capital plan
shall be submitted:



(1)  Within forty-five days after the occurrence of
the regulatory action level event;



(2)  If the insurer challenges an adjusted risk-based
capital report pursuant to section 431:3-407 and the challenge is not frivolous
in the judgment of the commissioner, within forty-five days after the
notification to the insurer that the commissioner, after a hearing, has
rejected the insurer's challenge; or



(3)  If the insurer challenges a revised risk-based
capital plan pursuant to section 431:3-407 and the challenge is not frivolous
in the judgment of the commissioner, within forty-five days after notification
to the insurer that the commissioner, after a hearing, has rejected the
insurer's challenge.



(d)  The commissioner may retain actuaries and
investment experts and other consultants that may be necessary, in the judgment
of the commissioner, to review the insurer's risk-based capital plan or revised
risk-based capital plan, examine or analyze the assets, liabilities, and
operations of the insurer, and formulate the corrective order with respect to
the insurer.  The fees, costs, and expenses relating to consultants shall be
borne by the affected insurer or any other party as directed by the
commissioner. [L 1994, c 190, pt of §1; am L 1995, c 61, §2 as superseded by c
232, §4; am L 1997, c 75, §§6, 7; am L 1999, c 128, §2]