40-2c18. Mandatory control level event; commissioner's actions. - Kansas Statutes

40-2c18

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

      40-2c18.   Mandatory control level event;commissioner's actions.In the event of a mandatory control level event with respect to: (a) Alife and health insurer, thecommissioner shall take actions as are necessary to cause the insurer to beplaced under regulatory control under K.S.A. 40-3605 et seq. andamendmentsthereto. In that event, the mandatory control level event shall be deemedsufficient grounds for the commissioner to take action underK.S.A. 40-3605 et seq. and amendments thereto, and the commissionershall have therights, powers, and duties with respect to the insurer as are set forth inK.S.A. 40-3605 et seq. and amendments thereto. In the event thecommissioner takesactions pursuant to an adjusted RBC report, the insurer shall be entitled tosuch protections as are afforded to insurers under the provisions of K.S.A.77-601 et seq. and amendments thereto, pertaining to summaryproceedings. Notwithstanding any of the foregoing, the commissioner may forego action for upto 90 days after the mandatory control level event if there is a reasonableexpectation that the mandatory control level event may be eliminated within the90-day period;

      (b)   A property and casualty insurer, the commissionershall take such actions as are necessary to place the insurer under regulatorycontrol under K.S.A. 40-3605 et seq. and amendments thereto, or, in thecase of an insurer which is writing no business and which is running-off itsexisting business, may allow the insurer to continue its run-off under thesupervision of the commissioner. In either event, the mandatory control levelevent shall be deemed sufficient grounds for the commissioner to take actionunder K.S.A. 40-3605 et seq. and amendments thereto and thecommissioner shall have the rights, powers and duties with respect to theinsureras are set forth in K.S.A. 40-3605 et seq. and amendments thereto. Ifthe commissioner takes actions pursuant to an adjusted RBC report, the insurershall be entitled to such protections as are afforded to insurers under theprovisions of K.S.A. 77-601 et seq., and amendments thereto, pertainingto summary proceedings. Notwithstanding any of the foregoing, the commissionermay forego action for up to 90 days after the mandatory control level event ifthere is a reasonable expectation that the mandatory control level event may beeliminated with the 90-day period.

      History:   L. 1994, ch. 138, § 18;L. 1996, ch. 134, § 7; July 1.