40-2c11. Regulatory action level event; defined. - Kansas Statutes

40-2c11

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

      40-2c11.   Regulatory action level event;defined."Regulatory action level event" means, with respect to anyinsurer, any of the following events:

      (a)   The filing of an RBC report by the insurer which indicates that theinsurer's total adjusted capital is greater than or equal to its authorizedcontrol level RBC but less than its regulatory action level RBC;

      (b)   the notification by the commissioner to an insurer of an adjusted RBCreport that indicates the result described in subsection (a) if the insurerdoes not challenge the adjusted RBC report pursuant to K.S.A. 40-2c19, andamendments thereto;

      (c)   the filing of an adjusted RBC report that indicates the result describedin subsection (a) if the commissioner has rejected the insurer's challengeafter a hearing held pursuant to K.S.A. 40-2c19, and amendmentsthereto;

      (d)   the failure of the insurer to file an RBC report by the filing date,unless the insurer has provided an explanation for such failure which issatisfactory to the commissioner and has cured the failure within 10 days afterthe filing date;

      (e)   the failure of the insurer to submit an RBC plan to the commissionerwithin the time period set forth in K.S.A. 40-2c07, and amendmentsthereto;

      (f)   notification by the commissioner to the insurer that:

      (1)   The RBC plan or revised RBC plan submitted by the insurer is, in thejudgment of the commissioner, unsatisfactory; and

      (2) (A)   the insurer has not challenged the determination pursuant toK.S.A. 40-2c19, and amendments thereto; or

      (B)   the commissioner has rejected such challenge.

      (g)   Notification by the commissioner to the insurer that the insurer hasfailed to adhere to its RBC plan or revised RBC plan, but only if such failurehas a substantial adverse effect on the ability of the insurer to eliminate thecompany action level event in accordance with its RBC planor revised RBCplan and the commissioner has so stated in the notification, if:

      (1)   The insurer has not challenged such determination pursuant toK.S.A. 40-2c19, and amendments thereto; or

      (2)   the commissioner has rejected such challenge.

      History:   L. 1994, ch. 138, § 11;L. 1996, ch. 134, § 4; July 1.