A. "Company Action Level Event" means any of the following events:
1. The filing of an RBC Report by a licensee which indicates that:
a. The licensee's Total Adjusted Capital is greater than or equal to itsRegulatory Action Level RBC but less than its Company Action Level RBC;
b. If a life and health insurer, the insurer has Total Adjusted Capital whichis greater than or equal to its Company Action Level RBC but less than theproduct of its Authorized Control Level RBC and 2.5 and has a negative trend;or
c. If a property and casualty insurer, the insurer has Total Adjusted Capitalthat is greater than or equal to its Company Action Level RBC but less thanthe product of its Authorized Control Level RBC and 3.0 and triggers thetrend test determined in accordance with the Trend Test Calculation includedin the Property and Casualty RBC instructions;
2. The notification by the Commission to the licensee of an Adjusted RBCReport that indicates the event in subdivision A 1 a, provided the licenseedoes not challenge the Adjusted RBC Report under § 38.2-5507; or
3. If, pursuant to § 38.2-5507, the licensee challenges an Adjusted RBCReport that indicates the event in subdivision A 1 a, the notification by theCommission to the licensee that the Commission has, after a hearing, rejectedthe licensee's challenge.
B. In the event of a Company Action Level Event, the licensee shall prepareand submit to the Commission an RBC Plan which shall:
1. Identify the conditions in the licensee which contribute to the CompanyAction Level Event;
2. Contain proposals of corrective actions which the licensee intends to takeand would be expected to result in the elimination of the Company ActionLevel Event;
3. Provide projections of the licensee's financial results in the currentyear and for at least the four succeeding years if the licensee is a life andhealth insurer or a property and casualty insurer, or at least two succeedingyears if the licensee is a health organization, both in the absence ofproposed corrective actions and giving effect to the proposed correctiveactions, including projections of statutory balance sheets, operating income,net income, capital and surplus, and RBC levels. If appropriate, theprojections for both new and renewal business shall include separateprojections for each major line of business and separately identify eachsignificant income, expense and benefit component;
4. Identify the key assumptions impacting the licensee's projections and thesensitivity of the projections to the assumptions; and
5. Identify the quality of, and problems associated with, the licensee'sbusiness, including but not limited to its assets, anticipated businessgrowth and associated surplus strain, extraordinary exposure to risk, mix ofbusiness and use of reinsurance, if any, in each case.
C. The RBC Plan shall be submitted:
1. Within forty-five days of the Company Action Level Event; or
2. If the licensee challenges an Adjusted RBC Report pursuant to § 38.2-5507,within forty-five days after notification to the licensee that the Commissionhas, after a hearing, rejected the licensee's challenge.
D. Within sixty days after the submission by a licensee of an RBC Plan to theCommission, the Commission shall notify the licensee whether the RBC Planshall be implemented or is, in the judgment of the Commission,unsatisfactory. If the Commission determines the RBC Plan is unsatisfactory,the notification to the licensee shall set forth the reasons for thedetermination, and may set forth proposed revisions which will render the RBCPlan satisfactory, in the judgment of the Commission. Upon notification fromthe Commission, the licensee shall prepare a Revised RBC Plan, which mayincorporate by reference any revisions proposed by the Commission, and shallsubmit the Revised RBC Plan to the Commission:
1. Within forty-five days after the notification from the Commission; or
2. If the licensee challenges the notification from the Commission under §38.2-5507, within forty-five days after a notification to the licensee thatthe Commission has, after a hearing, rejected the licensee's challenge.
E. In the event of a notification by the Commission to a licensee that thelicensee's RBC Plan or Revised RBC Plan is unsatisfactory, the Commission mayat the Commission's discretion, subject to the licensee's right to a hearingunder § 38.2-5507, specify in the notification that the notificationconstitutes a Regulatory Action Level Event.
F. Every domestic licensee that files an RBC Plan or Revised RBC Plan withthe Commission shall file a copy of the RBC Plan or Revised RBC Plan with theinsurance commissioner in any state in which the licensee is authorized to dobusiness if:
1. Such state has an RBC provision substantially similar to subsection A of §38.2-5508; and
2. The insurance commissioner of that state has notified the licensee of itsrequest for the filing in writing, in which case the licensee shall file acopy of the RBC Plan or Revised RBC Plan in that state no later than thelater of:
a. Fifteen days after the receipt of notice to file a copy of its RBC Plan orRevised RBC Plan with the state; or
b. The date on which the RBC Plan or Revised RBC Plan is filed undersubsection C of § 38.2-5504.
A. "Company Action Level Event" means any of the following events:
1. The filing of an RBC Report by a licensee which indicates that:
a. The licensee's Total Adjusted Capital is greater than or equal to itsRegulatory Action Level RBC but less than its Company Action Level RBC;
b. If a life and health insurer, the insurer has Total Adjusted Capital whichis greater than or equal to its Company Action Level RBC but less than theproduct of its Authorized Control Level RBC and 2.5 and has a negative trend;or
c. If a property and casualty insurer, the insurer has Total Adjusted Capitalthat is greater than or equal to its Company Action Level RBC but less thanthe product of its Authorized Control Level RBC and 3.0 and triggers thetrend test determined in accordance with the Trend Test Calculation includedin the Property and Casualty RBC instructions;
2. The notification by the Commission to the licensee of an Adjusted RBCReport that indicates the event in subdivision A 1 a, provided the licenseedoes not challenge the Adjusted RBC Report under § 38.2-5507; or
3. If, pursuant to § 38.2-5507, the licensee challenges an Adjusted RBCReport that indicates the event in subdivision A 1 a, the notification by theCommission to the licensee that the Commission has, after a hearing, rejectedthe licensee's challenge.
B. In the event of a Company Action Level Event, the licensee shall prepareand submit to the Commission an RBC Plan which shall:
1. Identify the conditions in the licensee which contribute to the CompanyAction Level Event;
2. Contain proposals of corrective actions which the licensee intends to takeand would be expected to result in the elimination of the Company ActionLevel Event;
3. Provide projections of the licensee's financial results in the currentyear and for at least the four succeeding years if the licensee is a life andhealth insurer or a property and casualty insurer, or at least two succeedingyears if the licensee is a health organization, both in the absence ofproposed corrective actions and giving effect to the proposed correctiveactions, including projections of statutory balance sheets, operating income,net income, capital and surplus, and RBC levels. If appropriate, theprojections for both new and renewal business shall include separateprojections for each major line of business and separately identify eachsignificant income, expense and benefit component;
4. Identify the key assumptions impacting the licensee's projections and thesensitivity of the projections to the assumptions; and
5. Identify the quality of, and problems associated with, the licensee'sbusiness, including but not limited to its assets, anticipated businessgrowth and associated surplus strain, extraordinary exposure to risk, mix ofbusiness and use of reinsurance, if any, in each case.
C. The RBC Plan shall be submitted:
1. Within forty-five days of the Company Action Level Event; or
2. If the licensee challenges an Adjusted RBC Report pursuant to § 38.2-5507,within forty-five days after notification to the licensee that the Commissionhas, after a hearing, rejected the licensee's challenge.
D. Within sixty days after the submission by a licensee of an RBC Plan to theCommission, the Commission shall notify the licensee whether the RBC Planshall be implemented or is, in the judgment of the Commission,unsatisfactory. If the Commission determines the RBC Plan is unsatisfactory,the notification to the licensee shall set forth the reasons for thedetermination, and may set forth proposed revisions which will render the RBCPlan satisfactory, in the judgment of the Commission. Upon notification fromthe Commission, the licensee shall prepare a Revised RBC Plan, which mayincorporate by reference any revisions proposed by the Commission, and shallsubmit the Revised RBC Plan to the Commission:
1. Within forty-five days after the notification from the Commission; or
2. If the licensee challenges the notification from the Commission under §38.2-5507, within forty-five days after a notification to the licensee thatthe Commission has, after a hearing, rejected the licensee's challenge.
E. In the event of a notification by the Commission to a licensee that thelicensee's RBC Plan or Revised RBC Plan is unsatisfactory, the Commission mayat the Commission's discretion, subject to the licensee's right to a hearingunder § 38.2-5507, specify in the notification that the notificationconstitutes a Regulatory Action Level Event.
F. Every domestic licensee that files an RBC Plan or Revised RBC Plan withthe Commission shall file a copy of the RBC Plan or Revised RBC Plan with theinsurance commissioner in any state in which the licensee is authorized to dobusiness if:
1. Such state has an RBC provision substantially similar to subsection A of §38.2-5508; and
2. The insurance commissioner of that state has notified the licensee of itsrequest for the filing in writing, in which case the licensee shall file acopy of the RBC Plan or Revised RBC Plan in that state no later than thelater of:
a. Fifteen days after the receipt of notice to file a copy of its RBC Plan orRevised RBC Plan with the state; or
b. The date on which the RBC Plan or Revised RBC Plan is filed undersubsection C of § 38.2-5504.
A. "Company Action Level Event" means any of the following events:
1. The filing of an RBC Report by a licensee which indicates that:
a. The licensee's Total Adjusted Capital is greater than or equal to itsRegulatory Action Level RBC but less than its Company Action Level RBC;
b. If a life and health insurer, the insurer has Total Adjusted Capital whichis greater than or equal to its Company Action Level RBC but less than theproduct of its Authorized Control Level RBC and 2.5 and has a negative trend;or
c. If a property and casualty insurer, the insurer has Total Adjusted Capitalthat is greater than or equal to its Company Action Level RBC but less thanthe product of its Authorized Control Level RBC and 3.0 and triggers thetrend test determined in accordance with the Trend Test Calculation includedin the Property and Casualty RBC instructions;
2. The notification by the Commission to the licensee of an Adjusted RBCReport that indicates the event in subdivision A 1 a, provided the licenseedoes not challenge the Adjusted RBC Report under § 38.2-5507; or
3. If, pursuant to § 38.2-5507, the licensee challenges an Adjusted RBCReport that indicates the event in subdivision A 1 a, the notification by theCommission to the licensee that the Commission has, after a hearing, rejectedthe licensee's challenge.
B. In the event of a Company Action Level Event, the licensee shall prepareand submit to the Commission an RBC Plan which shall:
1. Identify the conditions in the licensee which contribute to the CompanyAction Level Event;
2. Contain proposals of corrective actions which the licensee intends to takeand would be expected to result in the elimination of the Company ActionLevel Event;
3. Provide projections of the licensee's financial results in the currentyear and for at least the four succeeding years if the licensee is a life andhealth insurer or a property and casualty insurer, or at least two succeedingyears if the licensee is a health organization, both in the absence ofproposed corrective actions and giving effect to the proposed correctiveactions, including projections of statutory balance sheets, operating income,net income, capital and surplus, and RBC levels. If appropriate, theprojections for both new and renewal business shall include separateprojections for each major line of business and separately identify eachsignificant income, expense and benefit component;
4. Identify the key assumptions impacting the licensee's projections and thesensitivity of the projections to the assumptions; and
5. Identify the quality of, and problems associated with, the licensee'sbusiness, including but not limited to its assets, anticipated businessgrowth and associated surplus strain, extraordinary exposure to risk, mix ofbusiness and use of reinsurance, if any, in each case.
C. The RBC Plan shall be submitted:
1. Within forty-five days of the Company Action Level Event; or
2. If the licensee challenges an Adjusted RBC Report pursuant to § 38.2-5507,within forty-five days after notification to the licensee that the Commissionhas, after a hearing, rejected the licensee's challenge.
D. Within sixty days after the submission by a licensee of an RBC Plan to theCommission, the Commission shall notify the licensee whether the RBC Planshall be implemented or is, in the judgment of the Commission,unsatisfactory. If the Commission determines the RBC Plan is unsatisfactory,the notification to the licensee shall set forth the reasons for thedetermination, and may set forth proposed revisions which will render the RBCPlan satisfactory, in the judgment of the Commission. Upon notification fromthe Commission, the licensee shall prepare a Revised RBC Plan, which mayincorporate by reference any revisions proposed by the Commission, and shallsubmit the Revised RBC Plan to the Commission:
1. Within forty-five days after the notification from the Commission; or
2. If the licensee challenges the notification from the Commission under §38.2-5507, within forty-five days after a notification to the licensee thatthe Commission has, after a hearing, rejected the licensee's challenge.
E. In the event of a notification by the Commission to a licensee that thelicensee's RBC Plan or Revised RBC Plan is unsatisfactory, the Commission mayat the Commission's discretion, subject to the licensee's right to a hearingunder § 38.2-5507, specify in the notification that the notificationconstitutes a Regulatory Action Level Event.
F. Every domestic licensee that files an RBC Plan or Revised RBC Plan withthe Commission shall file a copy of the RBC Plan or Revised RBC Plan with theinsurance commissioner in any state in which the licensee is authorized to dobusiness if:
1. Such state has an RBC provision substantially similar to subsection A of §38.2-5508; and
2. The insurance commissioner of that state has notified the licensee of itsrequest for the filing in writing, in which case the licensee shall file acopy of the RBC Plan or Revised RBC Plan in that state no later than thelater of:
a. Fifteen days after the receipt of notice to file a copy of its RBC Plan orRevised RBC Plan with the state; or
b. The date on which the RBC Plan or Revised RBC Plan is filed undersubsection C of § 38.2-5504.
