(1)
Regulatory Action Level Event. Means, with respect to
any insurer, any of the following events:
(a)
The filing of an RBC Report by the insurer which indicates that the insurer's
total adjusted capital is greater than or equal to its Authorized Control Level
RBC but less than its Regulatory Action Level RBC;
(b) The notification by the Commissioner to
an insurer of an Adjusted RBC Report that indicates the event in 211 CMR
20.04(1)(a), provided the insurer does not challenge the Adjusted RBC Report
under
211 CMR 20.07;
(c) If, pursuant to
211 CMR 20.07, the
insurer challenges an Adjusted RBC Report that indicates the event in 211 CMR
20.04(1)(a), the notification by the Commissioner to the insurer that the
Commissioner has, after a hearing, rejected the insurer's challenge;
(d) The failure of the insurer to file an RBC
Report by the Filing Date, unless the insurer has provided an explanation for
such failure which is satisfactory to the Commissioner and has cured the
failure within ten days after the Filing Date;
(e) The failure of the insurer to submit an
RBC Plan to the Commissioner within the time period set forth in
211 CMR
20.03(3);
(f) Notification by the Commissioner to the
insurer that
1. The RBC Plan or Revised RBC
Plan submitted by the insurer is, in the judgment of the Commissioner,
unsatisfactory; and
2. Such
notification constitutes a Regulatory Action Level Event with respect to the
insurer, provided the insurer has not challenged the determination under
211 CMR 20.07;
(g) If, pursuant to
211 CMR 20.07, the
insurer challenges a determination by the Commissioner under 211 CMR
20.04(1)(f), the notification by the Commissioner to the insurer that the
Commissioner has, after a hearing, rejected such challenge;
(h) Notification by the Commissioner to the
insurer that the insurer has failed to adhere to its RBC Plan or Revised RBC
Plan, but only if such failure has a substantial adverse effect on the ability
of the insurer 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 insurer has not challenged the determination under
211 CMR 20.07; or
(i) If, pursuant to
211 CMR 20.07, the
insurer challenges a determination by the Commissioner under 211 CMR
20.04(1)(h), the notification by the Commissioner to the insurer that the
Commissioner has, after a hearing, rejected the challenge.
(2) In the event of a Regulatory Action Level
Event the Commissioner shall:
(a) Require the
insurer to prepare and submit an RBC Plan or, if applicable, a Revised RBC
Plan;
(b) Perform such examination
or analysis as the Commissioner deems necessary of the assets, liabilities and
operations of the insurer including a review of its RBC Plan or Revised RBC
Plan; and
(c) Subsequent to the
examination or analysis, issue an order specifying such corrective actions as
the Commissioner shall determine are required.
(3) In determining corrective actions, the
Commissioner may take into account such factors as are deemed relevant with
respect to the insurer based upon the Commissioner's examination or analysis of
the assets, liabilities and operations of the insurer, 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:
(a) Within 45 days after the occurrence of
the Regulatory Action Level Event;
(b) If the insurer challenges an Adjusted RBC
Report pursuant to
211 CMR 20.07 and the
challenge is not frivolous in the judgment of the Commissioner within 45 days
after the notification to the insurer that the Commissioner has, after a
hearing, rejected the insurer's challenge; or
(c) If the insurer challenges a Revised RBC
Plan pursuant to
211 CMR 20.07 and the
challenge is not frivolous in the judgment of the Commissioner, within 45 days
after the notification to the insurer that the Commissioner has, after a
hearing, rejected the insurer's challenge.
(4) The Commissioner may retain actuaries and
investment experts and other consultants as may be necessary in the judgment of
the Commissioner to review the insurer's RBC Plan or Revised RBC Plan, examine
or analyze the assets, liabilities and operations of the insurer and formulate
the corrective order with respect to the insurer. The fees, costs and expenses
relating to consultants shall be borne by the affected insurer or such other
party as directed by the Commissioner.
