Oklahoma § 36-1525 - Regulatory Action Level Event

§ 36-1525. Regulatory Action Level Event

A. "Regulatory Action Level Event" means, with respect to any

insurer, any of the following events:

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

that the insurer's Total Adjusted Capital is greater than or equal

to its Authorized Control Level RBC but less than its Regulatory

Action Level RBC;

2. The notification by the Insurance Commissioner to an insurer

of an Adjusted RBC Report that indicates the event described in

paragraph 1 of this subsection, provided the insurer does not

challenge the Adjusted RBC Report under Section 9 of this act;

3. If, pursuant to Section 9 of this act, the 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;

4. The failure of the insurer to file an RBC Report by the

filing date, unless the insurer has provided an explanation for such

failure in writing prior to the filing date which is satisfactory to

the Commissioner, and has cured the failure within such time as may

be allowed by the Commissioner;

5. The failure of the insurer to submit an RBC Plan to the

Commissioner within the time period set forth in subsection C of

Section 5 of this act;

6. Notification by the Commissioner to the insurer that:

Oklahoma Statutes - Title 36. Insurance

a.

the RBC Plan or Revised RBC Plan submitted by the

insurer is, in the judgment of the Commissioner,

unsatisfactory, and

b.

such notification constitutes a Regulatory Action

Level Event with respect to the insurer, provided the

insurer has not challenged the determination under

Section 9 of this act;

7. If, pursuant to Section 9 of this act, the insurer

challenges a determination by the Commissioner under paragraph 6 of

this subsection, the notification by the Commissioner to the insurer

that the Commissioner has, after opportunity for a hearing, rejected

such challenge;

8. Notification by the Commissioner to the insurer that the

insurer has failed to adhere to its RBC Plan or Revised RBC Plan,

but only if the failure has a substantial adverse effect on the

ability of the insurer to eliminate the Company Action Level Event

in accordance with the RBC Plan or Revised RBC Plan and the

Commissioner has so stated in the notification, provided the insurer

has not challenged the determination under Section 9 of this act; or

9. If, pursuant to Section 9 of this act, the insurer

challenges a determination by the Commissioner under paragraph 8 of

this subsection, the notification by the Commissioner to the insurer

that the Commissioner has, after opportunity for a hearing, rejected

the challenge.

B. In the event of a Regulatory Action Level Event:

1. The insurer shall, unless otherwise directed by the

Commissioner, prepare and submit an RBC Plan or, if applicable, a

Revised RBC Plan;

2. The Commissioner may perform such examination or analysis as

the Commissioner deems necessary of the assets, liabilities, and

operations of the insurer including a review of its RBC Plan or

Revised RBC Plan; and

3. Subsequent to the examination or analysis, the Commissioner

may issue a corrective order specifying the corrective actions which

the Commissioner determines are required.

C. In determining corrective actions, the Commissioner may take

into account the factors deemed relevant with respect to the insurer

based upon the Commissioner's examination or analysis of the assets,

liabilities, and operations of the insurer, including, but not

limited to, the results of any sensitivity tests undertaken pursuant

to the RBC Instructions. The RBC Plan or Revised RBC Plan shall be

submitted:

1. Within forty-five (45) days after the occurrence of the

Regulatory Action Level Event;

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

Section 9 of this act, within forty-five (45) days after the

Oklahoma Statutes - Title 36. Insurance

notification to the insurer that the Commissioner has, after

opportunity for a hearing, rejected the insurer's challenge; or

3. If the insurer challenges a Revised RBC Plan pursuant to

Section 9 of this act, within forty-five (45) days after the

notification to the insurer that the Commissioner has, after

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

D. The Commissioner may retain actuaries and investment experts

and other consultants as may be necessary in the judgment of the

Commissioner to review the insurer's RBC Plan or Revised RBC Plan,

examine or analyze the assets, liabilities, and operations of the

insurer, and formulate a corrective order with respect to the

insurer. The fees, costs, and expenses relating to consultants

shall be borne by the affected insurer or such other party as

directed by the Commissioner.

Added by Laws 1997, c. 229, § 6, eff. July 1, 1997.