Section 375.1260

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 28 Aug 2014   

  375.1260.  Authorized control level event, occurrence of, when — effect, duties of director. — 1.  "Authorized control level event" means any of the following events:

  (1)  The filing of an RBC report by the insurer or health organization which indicates that the insurer's or health organization's total adjusted capital is greater than or equal to its mandatory control level RBC but less than its authorized control level RBC;

  (2)  The notification by the director to the insurer or health organization of an adjusted RBC report that indicates the event in subdivision (1) of this subsection provided the insurer or health organization does not challenge the adjusted RBC report under section 375.1265;

  (3)  If, pursuant to section 375.1265, the insurer or health organization challenges an adjusted RBC report that indicates the event in subdivision (1) of this subsection, notification by the director to the insurer or health organization that the director has, after a hearing, rejected the insurer's or health organization's challenge;

  (4)  The failure of the insurer or health organization to respond, in a manner satisfactory to the director, to a corrective order provided the insurer or health organization has not challenged the corrective order under section 375.1265; or

  (5)  If the insurer or health organization has challenged a corrective order under section 375.1265 and the director has, after a hearing, rejected the challenge or modified the corrective order, the failure of the insurer or health organization to respond, in a manner satisfactory to the director, to the corrective order subsequent to rejection or modification by the director.

  2.  In the event of an authorized control level event the director shall:

  (1)  Take such actions as are required under section 375.1257 regarding an insurer or health organization with respect to which a regulatory action level event has occurred; or

  (2)  If the director deems it to be in the best interests of the policyholders and creditors of the insurer or health organization and of the public, take such actions as are necessary to cause the insurer or health organization to be placed under regulatory control under sections 375.1150 to 375.1246.  In the event the director takes such actions, the authorized control level event shall be deemed sufficient grounds for the director to take action pursuant to sections 375.1150 to 375.1246, and the director shall have the rights, powers and duties with respect to the insurer or health organization as are set forth in sections 375.1150 to 375.1246.  In the event the director takes actions under this subdivision pursuant to an adjusted RBC report, the insurer or health organization shall be entitled to such protections as are afforded to insurers or health organizations pursuant to the provisions of sections 375.570 to 375.640, provided that the adjusted RBC report shall be deemed a report of examination.

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(L. 1993 H.B. 709 § 5, A.L. 1996 S.B. 759, A.L. 2014 H.B. 1968)