§431:3-405  Authorized control level event. 
(a)  "Authorized control level event" means 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 mandatory control level risk-based capital but less than
its authorized control level risk-based capital;



(2)  The notification by the commissioner to the
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), notification by the commissioner to the insurer
that the commissioner, after a hearing, has rejected the insurer's challenge;



(4)  The failure of the insurer to respond in a manner
satisfactory to the commissioner to a corrective order; provided the insurer
has not challenged the corrective order under section 431:3-407; or



(5)  If the insurer has challenged a corrective order
under section 431:3-407 and the commissioner, after a hearing, has rejected the
challenge or modified the corrective order, the failure of the insurer to
respond in a manner satisfactory to the commissioner to the corrective order
subsequent to rejection or modification by the commissioner.



(b)  In the event of an authorized control
level event with respect to an insurer, the commissioner shall:



(1)  Take any actions that are required under section
431:3-404 regarding an insurer with respect to which a regulatory action level
event has occurred; or



(2)  If the commissioner deems it to be in the best
interests of the policyholders and creditors of the insurer and of the public,
take any actions that are necessary to cause the insurer to be placed under
regulatory control under article 15.  In the event the commissioner takes such
actions, the authorized control level event shall be deemed sufficient grounds
for the commissioner to take action under article 15, and the commissioner
shall have the rights, powers, and duties with respect to the insurer as are
set forth in article 15.  In the event the commissioner takes actions under
this paragraph pursuant to an adjusted risk-based capital report, the insurer
shall be entitled to the protections that are afforded to insurers under the
provisions of section 431:15-201. [L 1994, c 190, pt of §1; am L 1995, c 61, §2
as superseded by c 232, §4; am L 1997, c 75, §8; am L 1999, c 128, §2]