New Jersey Administrative Code
Title 11 - INSURANCE
Chapter 2 - INSURANCE GROUP
Subchapter 39A - INCREASE IN CAPITAL AND SURPLUS REQUIREMENTS FOR HEALTH ORGANIZATIONS
Section 11:2-39A.7 - Mandatory control level event

Universal Citation: NJ Admin Code 11:2-39A.7

Current through Register Vol. 56, No. 6, March 18, 2024

(a) "Mandatory control level event" means any of the following events:

1. The filing of an RBC report which indicates that the health organization's total adjusted capital is less than its Mandatory Control Level RBC;

2. Notification by the Commissioner to the health organization of an adjusted RBC report that indicates the event in (a)1 above, provided the health organization does not challenge the adjusted RBC report under N.J.A.C. 11:2-39A.9; or

3. If the health organization, pursuant to N.J.A.C. 11:2-39A.9, challenges an adjusted RBC report that indicates the event in (a)1 above, notification by the Commissioner to the health organization that the Commissioner has, after a hearing, rejected the health organization's challenge.

(b) In the event of a mandatory control level event, the Commissioner shall take such actions as are necessary to place the health organization under regulatory control under 17B:32-31 et seq. In that event, the mandatory control level event shall be deemed sufficient grounds for the Commissioner to take action under said Act, and the Commissioner shall have the rights, powers, and duties with respect to the health organization as are set forth in said Act. If the Commissioner takes actions pursuant to an adjusted RBC report, the health organization shall be entitled to the protections of said Act. Notwithstanding any of the foregoing, the Commissioner may forego action for up to 90 days after the mandatory control level event if the Commissioner finds there is a reasonable expectation that the mandatory control level event may be eliminated within the 90-day period.

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