§ 27-4.6-6 - Mandatory control level event. - Rhode Island Statutes

SECTION 27-4.6-6

   § 27-4.6-6  Mandatory control level event.– (a) "Mandatory control level event" means any of the following events:

   (1) The filing of an RBC report which indicates that theinsurer's total adjusted capital is less than its mandatory control level RBC;

   (2) 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; or

   (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.

   (b) In the event of a mandatory control level event:

   (1) Concerning a life insurer, the commissioner shall takeany actions as are necessary to place the insurer under regulatory controlunder chapter 14.3 of this title, the "Insurers' Rehabilitation and LiquidationAct." In that event, the mandatory control level event shall be deemedsufficient grounds for the commissioner to take action under chapter 14.3 ofthis title, and the commissioner shall have the rights, powers and duties withrespect to the insurer as are set forth in chapter 14.3 of this title. If thecommissioner takes actions pursuant to an adjusted RBC report, the insurershall be entitled to the protections of chapter 14.3 of this title pertainingto summary proceedings. Notwithstanding any of these provisions, thecommissioner may forego action for up to ninety (90) days after the mandatorycontrol level event if the commissioner finds there is a reasonable expectationthat the mandatory control level event may be eliminated within the ninety (90)day period.

   (2) Concerning a property and casualty insurer, thecommissioner shall take any actions as are necessary to place the insurer underregulatory control under chapter 14.3 of this title, or, in the case of aninsurer which is writing no business and which is running-off its existingbusiness, may allow the insurer to continue its run-off under the supervisionof the commissioner. In either event, the mandatory control level event shallbe deemed sufficient grounds for the commissioner to take action under chapter14.3 of this title and the commissioner shall have the rights, powers andduties with respect to the insurer as are set forth in chapter 14.3 of thistitle. If the commissioner takes actions pursuant to an adjusted RBC report,the insurer shall be entitled to the protections of chapter 14.3 of this titlepertaining summary proceedings. Notwithstanding any of these provisions, thecommissioner may forego action for up to ninety (90) days after the mandatorycontrol level event if the commissioner finds there is a reasonable expectationthat the mandatory control level event may be eliminated within the ninety (90)day period.