§ 23-63-1506 - Mandatory control level event. - Arkansas Statutes

23-63-1506. Mandatory control level event.

(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 Insurance Commissioner to the health organization of an adjusted RBC report that indicates the event in subdivision (a)(1) of this section, provided the health organization does not challenge the adjusted RBC report under 23-63-1507; or

(3) If, pursuant to 23-63-1507, the health organization challenges an adjusted RBC report that indicates the event in subdivision (a)(1) of this section, 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 rehabilitation and liquidation. In that event, the mandatory control level event shall be deemed sufficient grounds for the commissioner to take action under rehabilitation and liquidation, and the commissioner shall have the rights, powers, and duties with respect to the health organization as are set forth in rehabilitation and liquidation. Notwithstanding any of the foregoing provisions, the commissioner may forego action for up to ninety (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 ninety-day period.