31A-17-605 - Authorized control level event. - Utah Statutes

31A-17-605. Authorized control level event.
(1) "Authorized control level event" means any of the following events:
(a) the filing of an RBC report by the insurer or health organization that indicates that theinsurer's or health organization's total adjusted capital is greater than or equal to its mandatorycontrol level RBC but less than its authorized control level RBC;
(b) the notification by the commissioner to the insurer or health organization of anadjusted RBC report that indicates the event in Subsection (1)(a), provided the insurer or healthorganization does not challenge the adjusted RBC report under Section 31A-17-607;
(c) if, pursuant to Section 31A-17-607, the insurer or health organization challenges anadjusted RBC report that indicates the event in Subsection (1)(a), notification by thecommissioner to the insurer or health organization that after a hearing the commissioner rejectsthe insurer's or health organization's challenge;
(d) the failure of the insurer or health organization to respond, in a manner satisfactory tothe commissioner, to a corrective order, provided the insurer or health organization has notchallenged the corrective order under Section 31A-17-607; or
(e) if the insurer or health organization has challenged a corrective order under Section31A-17-607 and the commissioner after a hearing rejects the challenge or modifies the correctiveorder, the failure of the insurer or health organization to respond, in a manner satisfactory to thecommissioner, to the corrective order subsequent to rejection or modification by thecommissioner.
(2) (a) In the event of an authorized control level event with respect to an insurer orhealth organization, the commissioner shall:
(i) take any action required under Section 31A-17-604 regarding an insurer or healthorganization with respect to which a regulatory action level event has occurred; or
(ii) take any action as is necessary to cause the insurer or health organization to be placedunder regulatory control under Chapter 27, Part 5, Administrative Actions, if the commissionerconsiders it to be in the best interests of:
(A) the policyholders or members;
(B) creditors of the insurer or health organization; and
(C) the public.
(b) If the commissioner takes an action described in Subsection (2)(a), the authorizedcontrol level event is sufficient grounds for the commissioner to take action under Chapter 27,Part 5, Administrative Actions, and the commissioner shall have the rights, powers, and dutieswith respect to the insurer or health organization set forth in Chapter 27, Part 5, AdministrativeActions.
(c) If the commissioner takes an action under Subsection (2)(a) pursuant to an adjustedRBC report, the insurer or health organization is entitled to the protections afforded to an insureror health organization under Section 31A-27-504 pertaining to an action by the commissioner.

Amended by Chapter 309, 2007 General Session