Oklahoma § 36-6942 - Authorized control level event - Definition - Duties of

§ 36-6942. Authorized control level event - Definition - Duties of

Insurance Commissioner.

A. “Authorized Control Level Event” means any of the following

events:

1. The filing of an RBC report by the health maintenance

organization that indicates that the health maintenance

organization’s total adjusted capital is greater than or equal to

its Mandatory Control Level RBC, but less than its Authorized

Control Level RBC;

2. The notification by the Commissioner to the health

maintenance organization of an adjusted RBC report that indicates an

Authorized Control Level Event as specified in paragraph 1 of this

subsection, provided the health maintenance organization does not

challenge the adjusted RBC report under Section 44 of this act;

3. If, pursuant to the provisions of Section 44 of this act,

the health maintenance organization challenges an adjusted RBC

report that indicates the event in paragraph 1 of this subsection,

notification by the Commissioner to the health maintenance

organization that the commissioner has, after a hearing, rejected

the health maintenance organization’s challenge;

4. The failure of the health maintenance organization to

respond, in a manner satisfactory to the Commissioner, to a

corrective order, provided the health maintenance organization has

not challenged the corrective order under Section 44 of this act; or

5. If the health maintenance organization has challenged a

corrective order under Section 44 of this act and the Commissioner

Oklahoma Statutes - Title 36. Insurance

has, after a hearing, rejected the challenge or modified the

corrective order, the failure of the health maintenance organization

to respond, in a manner satisfactory to the Commissioner, to the

corrective order subsequent to rejection or modification by the

Commissioner.

B. In the event of an Authorized Control Level Event with

respect to a health maintenance organization, the Commissioner

shall:

1. Take such actions as are required under Section 41 of this

act regarding a health maintenance organization with respect to

which a Regulatory Action Level Event has occurred; or

2. If the Commissioner deems it to be in the best interests of

the policyholders and creditors of the health maintenance

organization and of the public, take such actions as are necessary

to cause the health maintenance organization to be placed under

regulatory control pursuant to the provisions of Articles 18 and 19

of the Insurance Code. In the event the Commissioner takes such

actions, the Authorized Control Level Event shall be deemed

sufficient grounds for the Commissioner to take action pursuant to

the provisions of Articles 18 and 19 of the Insurance Code, and the

Commissioner shall have the rights, powers and duties with respect

to the health maintenance organization as provided in Articles 18

and 19 of the Insurance Code.

Added by Laws 2003, c. 197, § 42, eff. Nov. 1, 2003.