Oklahoma § 36-1524 - Company Action Level Event

§ 36-1524. Company Action Level Event

A. "Company Action Level Event" means any of the following

events:

1. The filing of an RBC Report by an insurer which indicates

that:

a.

the insurer's Total Adjusted Capital is greater than

or equal to its Regulatory Action Level RBC but less

than its Company Action Level RBC,

b.

if a life or health insurer, the insurer or fraternal

benefit society has Total Adjusted Capital which is

greater than or equal to its Company Action Level RBC

but less than the product of its Authorized Control

Level RBC and 3.0 and has a negative trend, or

c.

if a property and casualty insurer, the insurer has

total adjusted capital which is greater than or equal

to its Company Action Level RBC but less than the

product of its Authorized Control Level RBC and 3.0

and triggers the trend test determined in accordance

with the trend test calculation included in the

Property and Casualty RBC instructions;

2. The notification by the Insurance Commissioner to the

insurer of an Adjusted RBC Report that indicates an event described

in paragraph 1 of this subsection, provided the insurer does not

challenge the Adjusted RBC Report under Section 1528 of this title;

or

3. If, pursuant to Section 1528 of this title, an insurer

challenges an Adjusted RBC Report that indicates the event described

in paragraph 1 of this subsection, the notification by the

Commissioner to the insurer that the Commissioner has, after

opportunity for a hearing, rejected the insurer's challenge.

B. In the event of a Company Action Level Event, the insurer

shall, unless otherwise directed by the Commissioner, prepare and

submit to the Commissioner an RBC Plan which shall include the

following five elements:

1. Conditions which contribute to the Company Action Level

Event;

2. Proposals of corrective actions which the insurer intends to

take and which would be expected to result in the elimination of the

Company Action Level Event;

Oklahoma Statutes - Title 36. Insurance

3. Projections of the insurer's financial results in the

current year and at least the four (4) succeeding years, both in the

absence of proposed corrective actions and giving effect to the

proposed corrective actions, including projections of statutory

operating income, net income, and capital and surplus. Unless the

Commissioner otherwise directs, the projections for both new and

renewal business shall include separate projections for each major

line of business and separately identify each significant income,

expense and benefit component;

4. The key assumptions impacting the insurer's projections and

the sensitivity of the projections to the assumptions; and

5. The quality of, and problems associated with, the insurer's

business, including, but not limited to, its assets, anticipated

business growth and associated surplus strain, extraordinary

exposure to risk, mix of business, and use of reinsurance, if any,

in each case.

C. The RBC Plan shall be submitted:

1. Within forty-five (45) days of the Company Action Level

Event; or

2. If the insurer challenges an Adjusted RBC Report pursuant to

Section 1528 of this title, within forty-five (45) days after

notification to the insurer that the Commissioner has, after

opportunity for a hearing, rejected the insurer's challenge.

D. Within sixty (60) days after the submission by an insurer of

an RBC Plan to the Commissioner, the Commissioner shall notify the

insurer whether the RBC Plan shall be implemented or is, in the

judgment of the Commissioner, unsatisfactory. If the Commissioner

determines the RBC Plan is unsatisfactory, the notification to the

insurer shall set forth the reasons for the determination, and may

set forth proposed revisions which will render the RBC Plan

satisfactory, in the judgment of the Commissioner. Upon

notification from the Commissioner, the insurer shall prepare a

Revised RBC Plan, which may incorporate by reference any revisions

proposed by the Commissioner, and shall submit the Revised RBC Plan

to the Commissioner:

1. Within forty-five (45) days after the notification from the

Commissioner; or

2. If the insurer challenges the notification from the

Commissioner under Section 1528 of this title, within forty-five

(45) days after a notification to the insurer that the Commissioner

has, after opportunity for a hearing, rejected the insurer's

challenge.

E. In the event of a notification by the Commissioner to an

insurer that the insurer's RBC Plan or Revised RBC Plan is

unsatisfactory, the Commissioner may at the Commissioner's

discretion, subject to the insurer's right to a hearing under

Oklahoma Statutes - Title 36. Insurance

Section 1528 of this title, specify in the notification that the

notification constitutes a Regulatory Action Level Event.

F. Every domestic insurer that files an RBC Plan or Revised RBC

Plan with the Commissioner shall file a copy of the RBC Plan or

Revised RBC Plan with the insurance commissioner in any state in

which the insurer is authorized to do business if:

1. The state has an RBC provision substantially similar to

subsection A of Section 1531 of this title; and

2. The insurance commissioner of that state has notified the

insurer of its request for the filing in writing. If such a request

is made, the insurer shall file a copy of the RBC Plan or Revised

RBC Plan in that state no later than the later of:

a.

fifteen (15) days after the receipt of the request to

file a copy of its RBC Plan or Revised RBC Plan with

the state, or

b.

the date on which the RBC Plan or Revised RBC Plan is

filed under subsections C and D of this section.

Added by Laws 1997, c. 229, § 5, eff. July 1, 1997. Amended by Laws

2011, c. 278, § 26, eff. Nov. 1, 2011; Laws 2013, c. 269, § 6, eff.

Nov. 1, 2013; Laws 2015, c. 298, § 9, eff. Nov. 1, 2015.