§431:3-406  Mandatory control level event.  (a) "Mandatory control level event" means any of the following events:

(1)  The filing of a risk-based capital report whichindicates that the insurer's total adjusted capital is less than its mandatorycontrol level risk-based capital;

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

(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.

(b)  In the event of a mandatory control levelevent:

(1)  With respect to a life or accident and health orsickness insurer, the commissioner shall take any actions that are necessary tocause the insurer to be placed under regulatory control under article 15.  Inthat event, the mandatory control level event shall be deemed sufficientgrounds for the commissioner to take action under article 15, and thecommissioner shall have the rights, powers, and duties with respect to theinsurer as are set forth in article 15.  In the event the commissioner takesactions pursuant to an adjusted risk-based capital report, the insurer shall beentitled to the protections that are afforded to insurers under section431:15-201.  Notwithstanding any of the foregoing, the commissioner may foregoaction for up to ninety days after the mandatory control level event if thecommissioner finds there is a reasonable expectation that the mandatory controllevel event may be eliminated within the ninety-day period; or

(2)  With respect to a property and casualty insurer,the commissioner shall take any actions that are necessary to cause the insurerto be placed under regulatory control under article 15, or, in the case of aninsurer that is writing no business and is running-off its existing business,may allow the insurer to continue its run-off under the supervision of thecommissioner.  In either event, the mandatory control level event shall bedeemed sufficient grounds for the commissioner to take action under article 15,and the commissioner shall have the rights, powers, and duties with respect tothe insurer as are set forth in article 15.  In the event the commissionertakes actions pursuant to an adjusted risk-based capital report, the insurershall be entitled to the protections that are afforded to insurers undersection 431:15-201.  Notwithstanding any of the foregoing, the commissioner mayforego action for up to ninety days after the mandatory control level event ifthe commissioner finds there is a reasonable expectation that the mandatorycontrol level event may be eliminated within the ninety-day period. [L 1994, c190, pt of §1; am L 1995, c 61, §2 as superseded by c 232, §4; am L 1997, c 75,§9; am L 1999, c 128, §2; am L 2003, c 212, §28]