40-2c05. Risk-based capital; company action level event; defined. - Kansas Statutes

40-2c05

Chapter 40.--INSURANCE Article 2c.--RISK-BASED CAPITAL REQUIREMENTS

      40-2c05.   Risk-based capital; company action levelevent; defined."Company action level event" means any of the followingevents:

      (a)   The filing of an RBC report by an insurer which indicates that:

      (1)   The insurer's total adjusted capital is greater than or equal to itsregulatory action level RBC but less than its company action level RBC;

      (2)   if a life and health insurer has total adjusted capitalwhich is greater than or equal toits company action level RBC but less than the product of its authorizedcontrol level RBC and 2.5 and also has a negative trend; or

      (3)   if a property and casualty insurer has total adjusted capital which isgreater than or equal to its company action level RBC but less than the productof its authorized control level RBC and 3.0 and also triggers the trend testcalculation included in the RBC instructions as defined in K.S.A. 40-2c01 andamendments thereto.

      (b)   The notification by the commissioner to the insurer of an adjusted RBCreport that indicates the event described in subsection (a)(1) or (2), unlessthe insurer challenges the adjusted RBC report pursuant to K.S.A. 40-2c19, andamendments thereto, and suchchallenge has not been rejected by the commissioner.

      History:   L. 1994, ch. 138, § 5;L. 1996, ch. 134, § 3;L. 2009, ch. 19, § 1; July 1.