Current through Register Vol. 63, No. 9, September 1, 2024
(1) "Company action level event" means any of
the following events:
(a) The filing of an
RBC report by an insurer indicating that:
(A)
The insurer's total adjusted capital is greater than or equal to its regulatory
action level RBC but less than its company action level RBC;
(B) If a life or health insurer, the insurer
has total adjusted capital that is greater than or equal to its company action
level RBC but less than the product of its authorized control level RBC and 3.0
and has a negative trend; or
(C) If
a property and casualty insurer, the insurer has total adjusted capital that is
greater than or equal to its company action level RBC but less than the product
of its authorized control level RBC and 3.0 and triggers the trend test
determined in accordance with the trend test calculation included in the
property and casualty RBC instructions.
(b) The notification by the Director to the
insurer of an adjusted RBC report that indicates an event in subsection (a) of
this section, if the insurer does not challenge the adjusted RBC report under
OAR 836-011-0360; or
(c) If, pursuant to OAR
836-011-0360, an insurer
challenges an adjusted RBC report that indicates the event in subsection (a) of
this section, the notification by the Director to the insurer that the Director
has, after a hearing, rejected the insurer's challenge.
(2) In the event of a company action level
event, the insurer shall prepare and submit to the Director an RBC plan that
shall:
(a) Identify the conditions
contributing to the company action level event;
(b) Contain proposals of corrective actions
that the insurer intends to take and would be expected to result in the
elimination of the company action level event;
(c) Provide projections of the insurer's
financial results in the current year and at least the four succeeding years,
both in the absence of proposed corrective actions and giving effect to the
proposed corrective actions, including projections of statutory operating
income, net income, capital and surplus. The projections for both new and
renewal business must include separate projections for each major line of
business and separately identify each significant income, expense and benefit
component, if the Director so requires;
(d) Identify the key assumptions affecting
the insurer's projections and the sensitivity of the projections to the
assumptions; and
(e) Identify the
quality of and problems associated with the insurer's business, including but
not limited to its assets, anticipated business growth and associated surplus
strain, extraordinary exposure to risks, mix of business and use of
reinsurance, if any, in each case.
(3) The insurer shall submit the RBC Plan:
(a) Not later than the 45th day after the
company action level event; or
(b)
If the insurer challenges an adjusted RBC report pursuant to OAR
836-011-0360, not later than the
45th day after the Director's notification to the insurer that the Director
has, after a hearing, rejected the insurer's challenge.
(4) Not later than the 60th day after an
insurer has submitted an RBC plan to the Director, the Director shall notify
the insurer whether the RBC plan shall be implemented or is unsatisfactory, in
the judgment of the Director. If the Director determines the RBC plan is
unsatisfactory, the notification to the insurer shall set forth the reasons for
the determination and may set forth proposed revisions that will render the RBC
plan satisfactory, in the judgment of the Director. Upon notification from the
Director, the insurer shall prepare a revised RBC plan, which may incorporate
by reference any revisions proposed by the Director, and shall submit the
revised RBC plan to the Director:
(a) Not
later than the 45th day after the notification from the Director; or
(b) If the insurer challenges the
notification from the Director under OAR
836-011-0360, not later than the
45th day after a notification to the insurer that the Director has, after a
hearing, rejected the insurer's challenge.
(5) In the event of a notification by the
Director to an insurer that the insurer's RBC plan or revised RBC plan is
unsatisfactory, the Director at the Director's discretion, subject to the
insurer's right to a hearing under OAR
836-011-0360, may specify in the
notification that the notification constitutes a regulatory action level
event.
(6) A domestic insurer that
files an RBC plan or revised RBC plan with the Director shall file a copy of
the RBC plan or revised RBC plan with the insurance commissioner in any state
in which the insurer is authorized to transact insurance if such a state has an
RBC provision substantially similar to ORS
731.752, and the insurance
commissioner of that state has notified the insurer of its request for the
filing in writing. The insurer shall file the copy in that state not later than
the later of the following:
(a) The 15th day
after receipt of the notice to file a copy of its RBC plan or revised RBC plan
with the state; or
(b) The date on
which the RBC plan or revised RBC plan is filed under section (3) or (4) of
this rule, as applicable.
Statutory/Other Authority: ORS
731.244,
731.554 &
733.210
Statutes/Other Implemented: ORS
731.554 &
731.574
