521E.5 - AUTHORIZED-CONTROL-LEVEL EVENT. - Iowa Statutes

521E.5 AUTHORIZED-CONTROL-LEVEL EVENT. 1. "Authorized-control-level event" means any of the following: a. The filing of a risk-based capital report by the insurer which indicates that the insurer's total adjusted capital is greater than or equal to its mandatory-control- level risk-based capital but less than its authorized-control- level risk-based capital. b. Notification by the commissioner to an insurer of an adjusted risk-based capital report that indicates the event in paragraph "a", provided the insurer does not challenge the adjusted risk-based capital report and request a hearing pursuant to section 521E.7. c. After a hearing pursuant to section 521E.7, notification by the commissioner to the insurer that the commissioner has rejected the insurer's challenge of the adjusted risk-based capital report indicating the event in paragraph "a". d. Failure of the insurer to respond to a corrective order in a manner satisfactory to the commissioner, unless the insurer has challenged the corrective order pursuant to section 521E.7. e. Failure of the insurer to respond to the corrective order in a manner satisfactory to the commissioner after the insurer has challenged the corrective order pursuant to section 521E.7, and the commissioner, after a hearing pursuant to section 521E.7, has rejected the challenge or modified the corrective order. 2. In the event of an authorized-control-level event the commissioner shall do either of the following: a. Take action as required pursuant to section 521E.4 in the same manner as if a regulatory-action-level event has occurred. b. Take action as necessary to cause the insurer to be placed under supervision or other regulatory control under chapter 507C, if the commissioner deems such action to be in the best interests of the policyholders and creditors of the insurer and of the public. If the commissioner takes action pursuant to this paragraph, the authorized-control-level event is deemed sufficient grounds for the commissioner to take action pursuant to chapter 507C, and the commissioner has the rights, powers, and duties with respect to the insurer as set forth in chapter 507C. If the commissioner takes action under this paragraph pursuant to an adjusted risk-based capital report, the insurer is entitled to the protections afforded to insurers under the provisions of chapter 17A relating to summary proceedings.          Section History: Recent Form 96 Acts, ch 1046, §13