375.1260. Authorized control level event, occurrence of, when--effect, duties of director. - Missouri Statutes

Authorized control level event, occurrence of, when--effect, duties ofdirector.

375.1260. 1. "Authorized control level event" means any of thefollowing events:

(1) The filing of an RBC report by the insurer which indicates thatthe insurer's total adjusted capital is greater than or equal to itsmandatory control level RBC but less than its authorized control level RBC;

(2) The notification by the director to the insurer of an adjustedRBC report that indicates the event in subdivision (1) of this subsectionprovided the insurer does not challenge the adjusted RBC report undersection 375.1265;

(3) If, pursuant to section 375.1265, the insurer challenges anadjusted RBC report that indicates the event in subdivision (1) of thissubsection, notification by the director to the insurer that the directorhas, after a hearing, rejected the insurer's challenge;

(4) The failure of the insurer to respond, in a manner satisfactoryto the director, to a corrective order provided the insurer has notchallenged the corrective order under section 375.1265; or

(5) If the insurer has challenged a corrective order under section375.1265 and the director has, after a hearing, rejected the challenge ormodified the corrective order, the failure of the insurer to respond, in amanner satisfactory to the director, to the corrective order subsequent torejection or modification by the director.

2. In the event of an authorized control level event the directorshall:

(1) Take such actions as are required under section 375.1257regarding an insurer with respect to which a regulatory action level eventhas occurred; or

(2) If the director deems it to be in the best interests of thepolicyholders and creditors of the insurer and of the public, take suchactions as are necessary to cause the insurer to be placed under regulatorycontrol under sections 375.1150 to 375.1246. In the event the directortakes such actions, the authorized control level event shall be deemedsufficient grounds for the director to take action pursuant to sections375.1150 to 375.1246, and the director shall have the rights, powers andduties with respect to the insurer as are set forth in sections 375.1150 to375.1246. In the event the director takes actions under this subdivisionpursuant to an adjusted RBC report, the insurer shall be entitled to suchprotections as are afforded to insurers pursuant to the provisions ofsections 375.570 to 375.640, provided that the adjusted RBC report shall bedeemed a report of examination.

(L. 1993 H.B. 709 § 5, A.L. 1996 S.B. 759)