Company action level event, occurrence of, when--effect, duties ofinsurer--plan to be submitted, approval of, revision of, when--copiesfiled with all states in which insurer is authorized to transactbusiness.
375.1255. 1. "Company action level event" means with respect to anyinsurer, any of the following events:
(1) The filing of an RBC report by the insurer which indicates that:
(a) The insurer's total adjusted capital is greater than or equal toits regulatory action level RBC but less than its company action level RBC;or
(b) If a life and health insurer, the insurer has total adjustedcapital which is greater than or equal to its company action level RBC butless than the product of its authorized control level capital and 2.5, andhas a negative trend;
(2) The notification by the director to the insurer of an adjustedRBC report that indicates the event in paragraph (a) or (b) of subdivision(1) of this subsection, if the insurer does not challenge the adjusted RBCreport pursuant to section 375.1265;
(3) If pursuant to section 375.1265 the insurer challenges anadjusted RBC report that indicates the event described in subdivision (1)of this subsection, the notification by the director to the insurer thatthe director has, after a hearing, rejected the insurer's challenge.
2. In the event of a company action level event the insurer shallprepare and submit to the director an RBC plan which shall:
(1) Identify the conditions in the insurer which contribute to thecompany action level event;
(2) Contain proposals of corrective actions which the insurer intendsto take and would be expected to result in the elimination of the companyaction level event;
(3) Provide projections of the insurer's financial results in thecurrent year and at least the four succeeding years, both in the absence ofproposed corrective actions and giving effect to the proposed correctiveactions, including projections of statutory operating income, net income,capital or surplus. The projections for both new and renewal businessmight include separate projections for each major line of business andseparately identify each significant income, expense and benefit component;
(4) Identify the key assumptions impacting the insurer's projectionsand the sensitivity of the projections to the assumptions; and
(5) Identify the quality of, and problems associated with, theinsurer's business, including but not limited to its assets, anticipatedbusiness growth and associated surplus strain, extraordinary exposure torisk, mix of business and use of reinsurance in each case, if any.
3. The RBC plan shall be submitted:
(1) Within forty-five days of the company action level event; or
(2) If the insurer challenges an adjusted RBC report pursuant tosection 375.1265 within forty-five days after notification to the insurerthat the director has, after a hearing, rejected the insurer's challenge.
4. Within sixty days after the submission by an insurer of an RBCplan to the director, the director shall notify the insurer whether the RBCplan shall be implemented or is, in the judgment of the director,unsatisfactory. If the director determines the RBC plan is unsatisfactory,the notification to the insurer shall set forth the reasons for thedetermination, and may set forth proposed revisions which will render theRBC plan satisfactory, in the judgment of the director. Upon notificationfrom the director, the insurer shall prepare a revised RBC plan, which mayincorporate by reference any revisions proposed by the director, and shallsubmit the revised RBC plan to the director:
(1) Within forty-five days after the notification from the director;or
(2) If the insurer challenges the notification from the directorpursuant to section 375.1265, within forty-five days after a notificationto the insurer that the director has, after a hearing, rejected theinsurer's challenge.
5. In the event of a notification by the director to an insurer thatthe insurer's RBC plan or revised RBC plan is unsatisfactory, the directormay at the director's discretion, subject to the insurer's right to ahearing under section 375.1265, specify in the notification that thenotification constitutes a regulatory action level event.
6. Every domestic insurer that files an RBC plan or revised RBC planwith the director shall file a copy of the RBC plan or revised RBC planwith the chief insurance regulatory official in any state in which theinsurer is authorized to do business if:
(1) Such state has an RBC provision, substantially similar tosubsection 1 of section 375.1267; and
(2) The chief insurance regulatory official of that state hasnotified the insurer of its request for the filing in writing, in whichcase the insurer shall file a copy of the RBC plan or revised RBC plan inthat state no later than the later of:
(a) Fifteen days after the receipt of notice to file a copy of itsRBC plan or revised RBC plan with the state; or
(b) The date on which the RBC plan or revised RBC plan is filed undersubsection 3 or 4 of this section.
Company action level event, occurrence of, when--effect, duties ofinsurer--plan to be submitted, approval of, revision of, when--copiesfiled with all states in which insurer is authorized to transactbusiness.
375.1255. 1. "Company action level event" means with respect to anyinsurer, any of the following events:
(1) The filing of an RBC report by the insurer which indicates that:
(a) The insurer's total adjusted capital is greater than or equal toits regulatory action level RBC but less than its company action level RBC;or
(b) If a life and health insurer, the insurer has total adjustedcapital which is greater than or equal to its company action level RBC butless than the product of its authorized control level capital and 2.5, andhas a negative trend;
(2) The notification by the director to the insurer of an adjustedRBC report that indicates the event in paragraph (a) or (b) of subdivision(1) of this subsection, if the insurer does not challenge the adjusted RBCreport pursuant to section 375.1265;
(3) If pursuant to section 375.1265 the insurer challenges anadjusted RBC report that indicates the event described in subdivision (1)of this subsection, the notification by the director to the insurer thatthe director has, after a hearing, rejected the insurer's challenge.
2. In the event of a company action level event the insurer shallprepare and submit to the director an RBC plan which shall:
(1) Identify the conditions in the insurer which contribute to thecompany action level event;
(2) Contain proposals of corrective actions which the insurer intendsto take and would be expected to result in the elimination of the companyaction level event;
(3) Provide projections of the insurer's financial results in thecurrent year and at least the four succeeding years, both in the absence ofproposed corrective actions and giving effect to the proposed correctiveactions, including projections of statutory operating income, net income,capital or surplus. The projections for both new and renewal businessmight include separate projections for each major line of business andseparately identify each significant income, expense and benefit component;
(4) Identify the key assumptions impacting the insurer's projectionsand the sensitivity of the projections to the assumptions; and
(5) Identify the quality of, and problems associated with, theinsurer's business, including but not limited to its assets, anticipatedbusiness growth and associated surplus strain, extraordinary exposure torisk, mix of business and use of reinsurance in each case, if any.
3. The RBC plan shall be submitted:
(1) Within forty-five days of the company action level event; or
(2) If the insurer challenges an adjusted RBC report pursuant tosection 375.1265 within forty-five days after notification to the insurerthat the director has, after a hearing, rejected the insurer's challenge.
4. Within sixty days after the submission by an insurer of an RBCplan to the director, the director shall notify the insurer whether the RBCplan shall be implemented or is, in the judgment of the director,unsatisfactory. If the director determines the RBC plan is unsatisfactory,the notification to the insurer shall set forth the reasons for thedetermination, and may set forth proposed revisions which will render theRBC plan satisfactory, in the judgment of the director. Upon notificationfrom the director, the insurer shall prepare a revised RBC plan, which mayincorporate by reference any revisions proposed by the director, and shallsubmit the revised RBC plan to the director:
(1) Within forty-five days after the notification from the director;or
(2) If the insurer challenges the notification from the directorpursuant to section 375.1265, within forty-five days after a notificationto the insurer that the director has, after a hearing, rejected theinsurer's challenge.
5. In the event of a notification by the director to an insurer thatthe insurer's RBC plan or revised RBC plan is unsatisfactory, the directormay at the director's discretion, subject to the insurer's right to ahearing under section 375.1265, specify in the notification that thenotification constitutes a regulatory action level event.
6. Every domestic insurer that files an RBC plan or revised RBC planwith the director shall file a copy of the RBC plan or revised RBC planwith the chief insurance regulatory official in any state in which theinsurer is authorized to do business if:
(1) Such state has an RBC provision, substantially similar tosubsection 1 of section 375.1267; and
(2) The chief insurance regulatory official of that state hasnotified the insurer of its request for the filing in writing, in whichcase the insurer shall file a copy of the RBC plan or revised RBC plan inthat state no later than the later of:
(a) Fifteen days after the receipt of notice to file a copy of itsRBC plan or revised RBC plan with the state; or
(b) The date on which the RBC plan or revised RBC plan is filed undersubsection 3 or 4 of this section.
Company action level event, occurrence of, when--effect, duties ofinsurer--plan to be submitted, approval of, revision of, when--copiesfiled with all states in which insurer is authorized to transactbusiness.
375.1255. 1. "Company action level event" means with respect to anyinsurer, any of the following events:
(1) The filing of an RBC report by the insurer which indicates that:
(a) The insurer's total adjusted capital is greater than or equal toits regulatory action level RBC but less than its company action level RBC;or
(b) If a life and health insurer, the insurer has total adjustedcapital which is greater than or equal to its company action level RBC butless than the product of its authorized control level capital and 2.5, andhas a negative trend;
(2) The notification by the director to the insurer of an adjustedRBC report that indicates the event in paragraph (a) or (b) of subdivision(1) of this subsection, if the insurer does not challenge the adjusted RBCreport pursuant to section 375.1265;
(3) If pursuant to section 375.1265 the insurer challenges anadjusted RBC report that indicates the event described in subdivision (1)of this subsection, the notification by the director to the insurer thatthe director has, after a hearing, rejected the insurer's challenge.
2. In the event of a company action level event the insurer shallprepare and submit to the director an RBC plan which shall:
(1) Identify the conditions in the insurer which contribute to thecompany action level event;
(2) Contain proposals of corrective actions which the insurer intendsto take and would be expected to result in the elimination of the companyaction level event;
(3) Provide projections of the insurer's financial results in thecurrent year and at least the four succeeding years, both in the absence ofproposed corrective actions and giving effect to the proposed correctiveactions, including projections of statutory operating income, net income,capital or surplus. The projections for both new and renewal businessmight include separate projections for each major line of business andseparately identify each significant income, expense and benefit component;
(4) Identify the key assumptions impacting the insurer's projectionsand the sensitivity of the projections to the assumptions; and
(5) Identify the quality of, and problems associated with, theinsurer's business, including but not limited to its assets, anticipatedbusiness growth and associated surplus strain, extraordinary exposure torisk, mix of business and use of reinsurance in each case, if any.
3. The RBC plan shall be submitted:
(1) Within forty-five days of the company action level event; or
(2) If the insurer challenges an adjusted RBC report pursuant tosection 375.1265 within forty-five days after notification to the insurerthat the director has, after a hearing, rejected the insurer's challenge.
4. Within sixty days after the submission by an insurer of an RBCplan to the director, the director shall notify the insurer whether the RBCplan shall be implemented or is, in the judgment of the director,unsatisfactory. If the director determines the RBC plan is unsatisfactory,the notification to the insurer shall set forth the reasons for thedetermination, and may set forth proposed revisions which will render theRBC plan satisfactory, in the judgment of the director. Upon notificationfrom the director, the insurer shall prepare a revised RBC plan, which mayincorporate by reference any revisions proposed by the director, and shallsubmit the revised RBC plan to the director:
(1) Within forty-five days after the notification from the director;or
(2) If the insurer challenges the notification from the directorpursuant to section 375.1265, within forty-five days after a notificationto the insurer that the director has, after a hearing, rejected theinsurer's challenge.
5. In the event of a notification by the director to an insurer thatthe insurer's RBC plan or revised RBC plan is unsatisfactory, the directormay at the director's discretion, subject to the insurer's right to ahearing under section 375.1265, specify in the notification that thenotification constitutes a regulatory action level event.
6. Every domestic insurer that files an RBC plan or revised RBC planwith the director shall file a copy of the RBC plan or revised RBC planwith the chief insurance regulatory official in any state in which theinsurer is authorized to do business if:
(1) Such state has an RBC provision, substantially similar tosubsection 1 of section 375.1267; and
(2) The chief insurance regulatory official of that state hasnotified the insurer of its request for the filing in writing, in whichcase the insurer shall file a copy of the RBC plan or revised RBC plan inthat state no later than the later of:
(a) Fifteen days after the receipt of notice to file a copy of itsRBC plan or revised RBC plan with the state; or
(b) The date on which the RBC plan or revised RBC plan is filed undersubsection 3 or 4 of this section.
