§ 27-4.6-5 - Authorized control level event. - Rhode Island Statutes

SECTION 27-4.6-5

   § 27-4.6-5  Authorized control level event.– (a) "Authorized control level event" means any of the following events:

   (1) The filing of an RBC report by the insurer whichindicates that the insurer's total adjusted capital is greater than or equal toits mandatory control level RBC but less than its authorized control level RBC;

   (2) The notification by the commissioner to the insurer of anadjusted RBC report that indicates the event in subdivision (a)(1), providedthe insurer does not challenge the adjusted RBC report under § 27-4.6-7;

   (3) If, pursuant to § 27-4.6-7, the insurer challengesan adjusted RBC report that indicates the event in subdivision (a)(1),notification by the commissioner to the insurer that the commissioner has,after a hearing, rejected the insurer's challenge;

   (4) The failure of the insurer to respond, in a mannersatisfactory to the commissioner, to a corrective order (provided the insurerhas not challenged the corrective order under § 27-4.6-7); or

   (5) If the insurer has challenged a corrective order under§ 27-4.6-7 and the commissioner has, after a hearing, rejected thechallenge or modified the corrective order, the failure of the insurer torespond, in a manner satisfactory to the commissioner, to the corrective ordersubsequent to rejection or modification by the commissioner.

   (b) In the event of an authorized control level event withrespect to an insurer, the commissioner shall:

   (1) Take any actions as are required under § 27-4.6-4regarding an insurer with respect to which an regulatory action level event hasoccurred; or

   (2) If the commissioner deems it to be in the best interestsof the policyholders and creditors of the insurer and of the public, take anyactions as are necessary to cause the insurer to be placed under regulatorycontrol under chapter 14.3 of this title, the "Insurers' Rehabilitation andLiquidation Act." In the event the commissioner takes actions, the authorizedcontrol level event shall be deemed sufficient grounds for the commissioner totake action under chapter 14.3 of this title, and the commissioner shall havethe rights, powers and duties with respect to the insurer as are set forth inchapter 14.3 of this title. In the event the commissioner takes actions underthis subdivision pursuant to an adjusted RBC report, the insurer shall beentitled to any protections as are afforded to insurers under the provisions ofchapter 14.3 of this title pertaining to summary proceedings.