§ 8305 - Authorized control level event - Vermont Statutes

§ 8305. Authorized control level event

(a) The following are deemed to be authorized control level events and subject to the requirements of this section:

(1) A risk based capital report or final adjusted risk based capital report which indicates that the insurer's total adjusted capital is greater than or equal to its mandatory control level risk based capital but less than its authorized control level risk based capital.

(2) The failure of the insurer to comply with a corrective order after it is no longer subject to appeal under section 8307 of this title.

(b) Upon the occurrence of an event described in subsection (a) of this section, the commissioner shall take such actions as he or she deems necessary to protect policyholders and creditors of the insurer, including, but not limited to, those actions permitted under section 8304 and chapter 145 of this title. In the event the commissioner seeks an order under chapter 145 of this title, the authorized control level event shall be deemed sufficient grounds for the commissioner's order, and the commissioner shall have the rights, powers and duties with respect to the insurer as are set forth in that chapter. In the event the commissioner takes actions under this subsection pursuant to an adjusted risk based capital report, the insurer shall be entitled to such protections as are afforded to insurers under the provisions of section 7041 of this title pertaining to summary proceedings. (Added 1993, No. 235 (Adj. Sess.), § 8, eff. June 21, 1994.)