§ 27-4.7-6 - Authorized control level event. - Rhode Island Statutes

SECTION 27-4.7-6

   § 27-4.7-6  Authorized control level event.– (a) "Authorized control level event" means any of the following events:

   (1) The filing of an RBC report by the health organizationthat indicates that the health organization's total adjusted capital is greaterthan or equal to its mandatory control level RBC but less than its authorizedcontrol level RBC;

   (2) The notification by the commissioner to the healthorganization of an adjusted RBC report that indicates the event in subdivision(a)(1) of this section, provided the health organization does not challenge theadjusted RBC report under § 27-4.7-8;

   (3) If, pursuant to § 27-4.7-8, the health organizationchallenges an adjusted RBC report that indicates the event in subdivision(a)(1) of this section, notification by the commissioner to the healthorganization that the commissioner has, after a hearing, rejected the healthorganization's challenge;

   (4) The failure of the health organization to respond, in amanner satisfactory to the commissioner, to a corrective order (provided thehealth organization has not challenged the corrective order under §27-4.7-8); or

   (5) If the health organization has challenged a correctiveorder under § 27-4.7-8 and the commissioner has, after a hearing, rejectedthe challenge or modified the corrective order, the failure of the healthorganization to respond, in a manner satisfactory to the commissioner, to thecorrective order subsequent to rejection or modification by the commissioner.

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

   (1) Take any actions that are required under § 27-4.7-5regarding a health organization with respect to which a regulatory action levelevent has occurred; or

   (2) If the commissioner deems it to be in the best interestsof the policyholders and creditors of the health organization and of thepublic, take any actions that are necessary to cause the health organization tobe placed under regulatory control pursuant to chapters 14.1, 14.2, and 14.3 ofthis title. In the event the commissioner takes these actions, the authorizedcontrol level event shall be deemed sufficient grounds for the commissioner totake action under chapters 14.1, 14.2, and 14.3 of this title, and thecommissioner has the rights, powers, and duties with respect to the healthorganization that are set forth in chapters 14.1, 14.2, and 14.3 of this title.In the event the commissioner takes actions under this subdivision pursuant toan adjusted RBC report, the health organization is entitled to any protectionsthat are afforded to health organizations under the provisions of chapter 35 oftitle 42 pertaining to summary proceedings.