Current through Register Vol. 56, No. 6, March
18, 2024
(a) "Regulatory
action level event" means, with respect to any insurer, any of the following
events:
1. The filing of an RBC Report by an
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;
2. The
notification by the Commissioner to an insurer of an Adjusted RBC Report that
indicates the event in (a)1 above, provided the insurer does not challenge the
Adjusted RBC Report under
11:2-39.9;
3. If the insurer, under
11:2-39.9, challenges an Adjusted
RBC Report that indicates the event in (a)1 above, the notification by the
Commissioner to the insurer that the Commissioner has, after a hearing,
rejected the insurer's challenge;
4. 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 10 days after the filing date;
5. The failure of the insurer to comply with
the filing deadlines set forth at
11:2-39.4(b) and
(c);
6. Notification by the Commissioner to the
insurer that:
i. An RBC Plan or Revised RBC
Plan submitted by the insurer is, in the judgment of the Commissioner,
unsatisfactory; and
ii. Such
notification constitutes a regulatory action level event with respect to the
insurer, provided the insurer has not challenged the determination under
11:2-39.9;
7. If the insurer, under
11:2-39.9, challenges a
determination by the Commissioner pursuant to (a)6 above, the notification by
the Commissioner to the insurer that the Commissioner has, after a hearing,
rejected such challenge;
8.
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
11:2-39.9; or
9. If the insurer, under
11:2-39.9, challenges a
determination by the Commissioner pursuant to (a)8 above, the notification by
the Commissioner to the insurer that the Commissioner has, after a hearing,
rejected the challenge.
(b) In the event of a regulatory action level
event, the Commissioner shall for a domestic insurer, and may for a foreign
insurer pursuant to
11:2-39.1 2:
1. Require the insurer to prepare and, within
45 days, submit an 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 insurer including a review of its RBC Plan or Revised RBC Plan;
and
3. Subsequent to the
examination or analysis, issue a corrective order specifying such corrective
actions as the Commissioner shall determine are required.
(c) 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.
(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 insurer's RBC Plan
or Revised RBC Plan, examine and 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 affiliated or controlling party as directed by
the Commissioner.
