§431:3-403  Company action level event. 

(a)  "Company action level event" means any of the following events:

     (1)  The filing of a risk-based capital report by an

insurer which indicates that:

         (A)  The insurer's total adjusted capital is

greater than or equal to its regulatory action level risk-based capital but

less than its company action level risk-based capital;

         (B)  If a life or accident and health or

sickness insurer, the insurer has total adjusted capital greater than or equal

to its company action level risk-based capital but less than the product of its

authorized control level risk-based capital and three, and has a negative

trend;

         (C)  If a property and casualty insurer, the

insurer has a total adjusted capital greater than or equal to its company

action level risk-based capital but less than the product of its authorized

control level risk-based capital and three, and triggers the trend test

determined in accordance with the trend test calculation included in the

property and casualty risk-based capital instructions; or

         (D)  If a benefit society or health maintenance

organization, the benefit society or health maintenance organization has a

total adjusted capital greater than or equal to its company action level

risk-based capital but less than the product of its authorized control level

risk-based capital and three, and triggers the trend test determined in

accordance with the trend test calculation included in the health risk-based

capital instructions;

     (2)  The notification by the commissioner to the

insurer of an adjusted risk-based capital report that indicates the occurrence

of the event in paragraph (1), if the insurer does not challenge the adjusted

risk-based capital report under section 431:3-407; or

     (3)  If, pursuant to section 431:3-407, the insurer

challenges an adjusted risk-based capital report that indicates the occurrence

of the event in paragraph (1), the notification by the commissioner to the

insurer that the commissioner has, after a hearing, rejected the insurer's

challenge.

     (b)  In the event of a company action level

event, the insurer shall prepare and submit to the commissioner a risk-based

capital plan which shall:

     (1)  Identify the conditions in the insurer which

contribute to the company action level event;

     (2)  Contain proposals of corrective actions which the

insurer intends to take and would be expected to result in the elimination of

the company action level event;

     (3)  Provide projections of the insurer's financial

results in the current year and at least the four 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, capital, and surplus.  The projections for both new and renewal business

may include separate projections for each major line of business and separately

identify each significant income, expense, and benefit component;

     (4)  Identify the key assumptions having an impact on

the insurer's projections and the sensitivity of the projections to the

assumptions; and

     (5)  Identify 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 in each case, if any.

     (c)  The risk-based capital plan shall be

submitted:

     (1)  Within forty-five days of the company action

level event; or

     (2)  If the insurer challenges an adjusted risk-based

capital report pursuant to section 431:3-407, within forty-five days after

notification to the insurer that the commissioner has, after a hearing,

rejected the insurer's challenge.

     (d)  Within sixty days after the submission by

an insurer of a risk-based capital plan to the commissioner, the commissioner

shall notify the insurer whether the risk-based capital plan shall be

implemented or is, in the judgment of the commissioner, unsatisfactory.  If the

commissioner determines the risk-based capital 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 risk-based capital plan

satisfactory, in the judgment of the commissioner.  Upon notification from the

commissioner, the insurer shall prepare a revised risk-based capital plan,

which may incorporate by reference any revisions proposed by the commissioner,

and shall submit the revised risk-based capital plan to the commissioner:

     (1)  Within forty-five days after the notification

from the commissioner; or

     (2)  If the insurer challenges the notification from

the commissioner under section 431:3-407, within forty-five days after a

notification to the insurer that the commissioner has, after a hearing,

rejected the insurer's challenge.

     (e)  In the event of a notification by the

commissioner to an insurer that the insurer's risk-based capital plan or

revised risk-based capital plan is unsatisfactory, the commissioner, at the

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

section 431:3-407, may specify in the notification that the notification

constitutes a regulatory action level event.

     (f)  Every domestic insurer that files a

risk-based capital plan or revised risk-based capital plan with the commissioner

shall file a copy of the risk-based capital plan or revised risk-based capital

plan with the insurance commissioner in any state in which the insurer is

authorized to do business if:

     (1)  That state has a risk-based capital provision

substantially similar to section 431:3-408(a); and

     (2)  The insurance commissioner of that state has

notified the insurer of its request for the filing in writing, in which case

the insurer shall file a copy of the risk-based capital plan or revised

risk-based capital plan in that state no later than the later of:

         (A)  Fifteen days after the receipt of notice

to file a copy of its risk-based capital plan or revised risk-based capital

plan with that state; or

         (B)  The date on which the risk-based capital

plan or revised risk-based capital plan is filed under subsections (c) and (d).

[L 1994, c 190, pt of §1; am L 1995, c 61, §2 as superseded by c 232, §4; am L

1997, c 75, §5; am L 1999, c 128, §2; am L 2003, c 212, §27; am L 2011, c 80,

§3; am L 2013, c 190, §1]