§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 which
indicates that the insurer's total adjusted capital is less than its mandatory
control level risk-based capital;



(2)  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; or



(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.



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



(1)  With respect to a life or accident and health or
sickness insurer, the commissioner shall take any actions that are necessary to
cause the insurer to be placed under regulatory control under article 15.  In
that event, the mandatory 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 pursuant to an adjusted risk-based capital report, the insurer shall be
entitled to the protections that are afforded to insurers under section
431:15-201.  Notwithstanding any of the foregoing, the commissioner may forego
action for up to ninety days after the mandatory control level event if the
commissioner finds there is a reasonable expectation that the mandatory control
level 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 insurer
to be placed under regulatory control under article 15, or, in the case of an
insurer 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 the
commissioner.  In either event, the mandatory 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 pursuant to an adjusted risk-based capital report, the insurer
shall be entitled to the protections that are afforded to insurers under
section 431:15-201.  Notwithstanding any of the foregoing, the commissioner may
forego action for up to ninety days after the mandatory control level event if
the commissioner finds there is a reasonable expectation that the mandatory
control level event may be eliminated within the ninety-day period. [L 1994, c
190, 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]