§431:3-405  Authorized control level event. (a)  "Authorized control level event" means any of the followingevents:

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

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

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

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

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

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

(1)  Take any actions that are required under section431:3-404 regarding an insurer with respect to which a regulatory action levelevent has occurred; or

(2)  If the commissioner deems it to be in the bestinterests 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 underregulatory control under article 15.  In the event the commissioner takes suchactions, the authorized control level event shall be deemed sufficient groundsfor the commissioner to take action under article 15, and the commissionershall have the rights, powers, and duties with respect to the insurer as areset forth in article 15.  In the event the commissioner takes actions underthis paragraph pursuant to an adjusted risk-based capital report, the insurershall be entitled to the protections that are afforded to insurers under theprovisions of section 431:15-201. [L 1994, c 190, pt of §1; am L 1995, c 61, §2as superseded by c 232, §4; am L 1997, c 75, §8; am L 1999, c 128, §2]