Missouri Revised Statutes













Chapter 375

Provisions Applicable to All Insurance Companies

←375.1255

Section 375.1257.1

375.1260→

August 28, 2015

Regulatory action level event, occurrence of, when--director's duties, corrective actions--plan to be submitted by insurer--or health organization.

375.1257. 1. "Regulatory action level event" means, with respect to

any insurer or health organization, any of the following events:



(1) The filing of an RBC report by the insurer or health organization

which indicates that the insurer's or health organization'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 director to an insurer or health

organization of an adjusted RBC report that indicates the event in

subdivision (1) of this subsection, if the insurer or health organization

does not challenge the adjusted RBC report under section 375.1265;



(3) If, pursuant to section 375.1265, the insurer or health

organization challenges an adjusted RBC report that indicates the event in

subdivision (1) of this subsection, the notification by the director to the

insurer or health organization that the director has, after a hearing,

rejected the insurer's or health organization's challenge;



(4) The failure of the insurer or health organization to file an RBC

report by the filing date, unless the insurer or health organization has

provided an explanation for such failure which is satisfactory to the

director and has cured the failure within ten days after the filing date;



(5) The failure of the insurer or health organization to submit an

RBC plan to the director within the time period set forth in subsection 3

of section 375.1255;



(6) Notification by the director to the insurer or health

organization that:



(a) The RBC plan or revised RBC plan submitted by the insurer or

health organization is, in the judgment of the director, unsatisfactory;

and



(b) Such notification constitutes a regulatory action level event

with respect to the insurer or health organization, where the insurer or

health organization has not challenged the determination under section

375.1265;



(7) If, pursuant to section 375.1265, the insurer or health

organization challenges a determination by the director under subdivision

(6) of this subsection, the notification by the director to the insurer or

health organization that the director has, after a hearing, rejected such

challenge;



(8) Notification by the director to the insurer or health

organization that the insurer or health organization has failed to adhere

to its RBC plan or revised RBC plan, but only if such failure has a

substantial adverse effect on the ability of the insurer or health

organization to eliminate the company action level event in accordance with

its RBC plan or revised RBC plan and the director has so stated in the

notification provided the insurer or health organization has not challenged

the determination under section 375.1265; or



(9) If, pursuant to section 375.1265, the insurer or health

organization challenges a determination by the director under subdivision

(8) of this subsection the notification by the director to the insurer or

health organization that the director has, after a hearing, rejected the

challenge.



2. In the event of a regulatory action level event the director

shall:



(1) Require the insurer or health organization to prepare and submit

an RBC plan or, if applicable, a revised RBC plan;



(2) Perform such examination or analysis as the director deems

necessary of the assets, liabilities and operations of the insurer or

health organization, including a review of its RBC plan or revised RBC

plan; and



(3) Subsequent to the examination or analysis, issue an order

specifying such corrective actions as the director shall determine are

required.



3. In determining corrective actions, the director may take into

account such factors as are deemed relevant with respect to the insurer or

health organization based upon the director's examination or analysis of

the assets, liabilities and operations of the insurer or health

organization, 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 days after the occurrence of the regulatory

action level event;



(2) If the insurer or health organization challenges an adjusted RBC

report pursuant to section 375.1265, within forty-five days after the

notification to the insurer or health organization that the director has,

after a hearing, rejected the insurer's or health organization's challenge;

or



(3) If the insurer or health organization challenges a revised RBC

plan under section 375.1265, within forty-five days after notification to

the insurer or health organization that the director has, after a hearing,

rejected the challenge.



4. The director may retain actuaries and investment experts and other

consultants as may be necessary in the judgment of the director to review

the insurer's or health organization's RBC plan or revised RBC plan,

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

health organization and formulate the corrective order with respect to the

insurer or health organization. The fees, costs and expenses relating to

the consultants shall be borne by the affected insurer or health

organization.



(L. 1993 H.B. 709 § 4, A.L. 1996 S.B. 759, A.L. 2014 H.B. 1968)





1996



1996



375.1257. 1. "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 director to an insurer of an adjusted RBC

report that indicates the event in subdivision (1) of this subsection, if the

insurer does not challenge the adjusted RBC report under section 375.1265;



(3) If, pursuant to section 375.1265, the insurer challenges an adjusted

RBC report that indicates the event in subdivision (1) of this subsection, the

notification by the director to the insurer that the director has, after 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 which is

satisfactory to the director and has cured the failure within ten days after

the filing date;



(5) The failure of the insurer to submit an RBC plan to the director

within the time period set forth in subsection 3 of section 375.1255;



(6) Notification by the director to the insurer that:



(a) The RBC plan or revised RBC plan submitted by the insurer is, in the

judgment of the director, unsatisfactory; and



(b) Such notification constitutes a regulatory action level event with

respect to the insurer, where the insurer has not challenged the determination

under section 375.1265;



(7) If, pursuant to section 375.1265, the insurer challenges a

determination by the director under subdivision (6) of this subsection, the

notification by the director to the insurer that the director has, after a

hearing, rejected such challenge;



(8) Notification by the director to the insurer that the insurer has

failed to adhere to its RBC plan or revised RBC plan, but only if such failure

has a substantial adverse effect on the ability of the insurer to eliminate

the company action level event in accordance with its RBC plan or revised RBC

plan and the director has so stated in the notification provided the insurer

has not challenged the determination under section 375.1265; or



(9) If, pursuant to section 375.1265, the insurer challenges a

determination by the director under subdivision (8) of this subsection the

notification by the director to the insurer that the director has, after a

hearing, rejected the challenge.



2. In the event of a regulatory action level event the director shall:



(1) Require the insurer to prepare and submit an RBC plan or, if

applicable, a revised RBC plan;



(2) Perform such examination or analysis as the director 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, issue an order specifying

such corrective actions as the director shall determine are required.



3. In determining corrective actions, the director may take into account

such factors as are deemed relevant with respect to the insurer based upon the

director'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 days after the occurrence of the regulatory action

level event;



(2) If the insurer challenges an adjusted RBC report pursuant to section

375.1265, within forty-five days after the notification to the insurer that

the director has, after a hearing, rejected the insurer's challenge; or



(3) If the insurer challenges a revised RBC plan under section 375.1265,

within forty-five days after notification to the insurer that the director

has, after a hearing, rejected the challenge.



4. The director may retain actuaries and investment experts and other

consultants as may be necessary in the judgment of the director to review the

insurer's RBC plan or revised RBC plan, examine or analyze the assets,

liabilities and operations of the insurer and formulate the corrective order

with respect to the insurer. The fees, costs and expenses relating to the

consultants shall be borne by the affected insurer.



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