State Codes and Statutes
Statutes > Utah > Title-31a > Chapter-17 > 31a-17-60331A-17-603. Company action level event.
(1) "Company action level event" means any of the following events:
(a) the filing of an RBC report by an insurer or health organization that indicates that:
(i) the insurer's or health organization's total adjusted capital is greater than or equal to itsregulatory action level RBC but less than its company action level RBC; or
(ii) if a life or accident and health insurer, the insurer has:
(A) total adjusted capital that is greater than or equal to its company action level RBC butless than the product of its authorized control level RBC and 2.5; and
(B) a negative trend, determined in accordance with the "trend test calculation" includedin the RBC instructions;
(b) the notification by the commissioner to the insurer or health organization of anadjusted RBC report that indicates an event in Subsection (1)(a), provided the insurer or healthorganization does not challenge the adjusted RBC report under Section 31A-17-607; or
(c) if, pursuant to Section 31A-17-607, an insurer or health organization challenges anadjusted RBC report that indicates the event in Subsection (1)(a), the notification by thecommissioner to the insurer or health organization that after a hearing the commissioner rejectsthe insurer's or health organization's challenge.
(2) (a) In the event of a company action level event, the insurer or health organizationshall prepare and submit to the commissioner an RBC plan that shall:
(i) identify the conditions that contribute to the company action level event;
(ii) contain proposals of corrective actions that the insurer or health organization intendsto take and that are expected to result in the elimination of the company action level event;
(iii) provide projections of the insurer's or health organization's financial results in thecurrent year and at least the four succeeding years, both in the absence of proposed correctiveactions and giving effect to the proposed corrective actions, including projections of:
(A) statutory operating income;
(B) net income;
(C) capital;
(D) surplus; and
(E) RBC levels;
(iv) identify the key assumptions impacting the insurer's or health organization'sprojections and the sensitivity of the projections to the assumptions; and
(v) identify the quality of, and problems associated with, the insurer's or healthorganization's business, including its assets, anticipated business growth and associated surplusstrain, extraordinary exposure to risk, mix of business and use of reinsurance, if any, in each case.
(b) For purposes of Subsection (2)(a)(iii), the projections for both new and renewalbusiness may include separate projections for each major line of business and separately identifyeach significant income, expense, and benefit component.
(3) The RBC plan shall be submitted:
(a) within 45 days of the company action level event; or
(b) if the insurer or health organization challenges an adjusted RBC report pursuant toSection 31A-17-607, within 45 days after notification to the insurer or health organization thatafter a hearing the commissioner rejects the insurer's or health organization's challenge.
(4) (a) Within 60 days after the submission by an insurer or health organization of anRBC plan to the commissioner, the commissioner shall notify the insurer or health organization
whether the RBC plan:
(i) shall be implemented; or
(ii) is unsatisfactory.
(b) If the commissioner determines the RBC plan is unsatisfactory, the notification to theinsurer or health organization shall set forth the reasons for the determination, and may proposerevisions that will render the RBC plan satisfactory. Upon notification from the commissioner,the insurer or health organization shall:
(i) prepare a revised RBC plan that incorporates any revision proposed by thecommissioner; and
(ii) submit the revised RBC plan to the commissioner:
(A) within 45 days after the notification from the commissioner; or
(B) if the insurer challenges the notification from the commissioner under Section31A-17-607, within 45 days after a notification to the insurer or health organization that after ahearing the commissioner rejects the insurer's or health organization's challenge.
(5) In the event of a notification by the commissioner to an insurer or health organizationthat the insurer's or health organization's RBC plan or revised RBC plan is unsatisfactory, thecommissioner may specify in the notification that the notification constitutes a regulatory actionlevel event subject to the insurer's or health organization's right to a hearing under Section31A-17-607.
(6) Every domestic insurer or health organization that files an RBC plan or revised RBCplan with the commissioner shall file a copy of the RBC plan or revised RBC plan with theinsurance commissioner in any state in which the insurer or health organization is authorized to dobusiness if:
(a) the state has an RBC provision substantially similar to Subsection 31A-17-608(1); and
(b) the insurance commissioner of that state notifies the insurer or health organization ofits request for the filing in writing, in which case the insurer or health organization shall file acopy of the RBC plan or revised RBC plan in that state no later than the later of:
(i) 15 days after the receipt of notice to file a copy of its RBC plan or revised RBC planwith that state; or
(ii) the date on which the RBC plan or revised RBC plan is filed under Subsections (3)and (4).
Amended by Chapter 116, 2001 General Session
