(a) As used in
Sections
38a-193-1 to
38a-193-13,
inclusive, of the Regulations of Connecticut State Agencies, "Regulatory Action
Level Event" means, with respect to a health care center, any of the following
events:
(1) The filing of a RBC report by the
health care center that indicates that the health care center's total adjusted
capital is greater than or equal to its Authorized Control Level RBC but less
than its Regulatory Action Level RBC;
(2) notification by the commissioner to a
health care center of an adjusted RBC report that indicates the event in
subdivision (1) of this subsection, provided the health care center does not
challenge the adjusted RBC report under section
38a-193-7 of the
Regulations of Connecticut State Agencies;
(3) if, pursuant to section
38a-193-7 of the
Regulations of Connecticut State Agencies, the health care center challenges an
adjusted RBC report that indicates the event in subdivision (1) of this
subsection, the notification by the commissioner to the health care center that
the commissioner has, after a hearing, rejected the health care center's
challenge;
(4) the failure of the
health care center to file a RBC report by the filing date, unless the health
care center has provided an explanation for the failure that is satisfactory to
the commissioner and has cured the failure not later than ten (10) days after
the filing date;
(5) the failure of
the health care center to submit a RBC plan to the commissioner within the time
period set forth in section
38a-193-3(c)
of the Regulations of Connecticut State Agencies;
(6) notification by the commissioner to the
health care center that the RBC plan or revised RBC plan submitted by the
health care center is, in the judgment of the commissioner, unsatisfactory;
Notification constitutes a Regulatory Action Level Event with respect to the
health care center, provided the health care center has not challenged the
determination under section
38a-193-7 of the
Regulations of Connecticut State Agencies;
(7) if, pursuant to section
38a-193-7 of the
Regulations of Connecticut State Agencies, the health care center challenges a
determination by the commissioner under subdivision (6) of this subsection, the
notification by the commissioner to the health care center that the
commissioner has, after a hearing, rejected the challenge;
(8) notification by the commissioner to the
health care center that the health care center has failed to adhere to its RBC
plan or revised RBC plan, but only if the failure has a substantial adverse
effect on the ability of the health care center to eliminate the Company Action
Level Event in accordance with its RBC plan or revised RBC plan and the
commissioner has so stated in the notification, provided the health care center
has not challenged the determination under section
38a-193-7 of the
Regulations of Connecticut State Agencies; or
(9) if, pursuant to section
38a-193-7 of the
Regulations of Connecticut State Agencies, the health care center challenges a
determination by the commissioner under subdivision (8) of this subsection, the
notification by the commissioner to the health care center that the
commissioner has, after a hearing, rejected the challenge.
(b) In the event of a Regulatory Action Level
Event the commissioner shall:
(1) Require the
health care center to prepare and submit a RBC plan or, if applicable, a
revised RBC plan;
(2) perform such
examination or analysis as the commissioner deems necessary of the assets,
liabilities and operations of the health care center including a review of its
RBC plan or revised RBC plan; and
(3) subsequent to the examination or
analysis, issue an order specifying such corrective actions as the commissioner
shall determine are required (a "corrective order").
(c) In determining corrective actions, the
commissioner may take into account factors the commissioner deems relevant with
respect to the health care center based upon the commissioner's examination or
analysis of the assets, liabilities and operations of the health care center,
including, but not limited to, the results of any sensitivity tests undertaken
pursuant to the RBC instructions. The RBC plan or revised RBC plan shall be
submitted:
(1) Not later than forty-five (45)
days after the occurrence of the Regulatory Action Level Event;
(2) if the health care center challenges an
adjusted RBC report pursuant to section
38a-193-7 of the
Regulations of Connecticut State Agencies and the challenge is not frivolous in
the judgment of the commissioner, not later than forty-five (45) days after the
notification to the health care center that the commissioner has, after a
hearing, rejected the health care center's challenge; or
(3) if the health care center challenges a
revised RBC plan pursuant to section
38a-193-7 of the
Regulations of Connecticut State Agencies and the challenge is not frivolous in
the judgment of the commissioner, not later than forty-five (45) days after the
notification to the health care center that the commissioner has, after a
hearing, rejected the health care center's challenge.
(d) The commissioner may retain actuaries and
investment experts and other consultants as may be necessary in the judgment of
the commissioner to review the health care center's RBC plan or revised RBC
plan, examine or analyze the assets, liabilities and operations (including
contractual relationships) of the health care center and formulate the
corrective order with respect to the health care center. The fees, costs and
expenses relating to consultants shall be borne by the affected health care
center or such other party as directed by the commissioner.
