§8304. Regulatory action level event

Link to law: http://legislature.vermont.gov/statutes/section/08/159/08304
Published: 2015

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Title

08

:
Banking and Insurance






Chapter

159

:
RISK BASED CAPITAL FOR INSURERS











 

§

8304. Regulatory action level event

(a) The

following are deemed to be regulatory action level events and subject to the

requirements of this section:

(1) A risk based

capital report or final adjusted risk based capital report which indicates that

the insurer's total adjusted capital is greater than or equal to its authorized

control level risk based capital, but less than its regulatory action level

risk based capital.

(2) Late filing

of a risk based capital report that is not excused by the Commissioner and

cured within 10 days of the filing date.

(3) Failure to

file a risk based capital plan within the time provided in section 8303 of this

title.

(4) Notice by

the Commissioner that a plan submitted by the insurer under section 8303 of

this title is disapproved and that the disapproval has been deemed by the

Commissioner as constituting a regulatory action level event.

(5) Notice by

the Commissioner of a failure to adhere to its risk based capital plan or

revised risk based capital plan where the failure has a substantial adverse

effect on the ability of the insurer to eliminate the regulatory action level

event in accordance with its plan.

(b) An insurer

shall prepare and submit to the Commissioner a risk based capital plan within

45 days of filing a risk based capital report or within 45 days of notice of a

final adjusted risk based capital report showing a regulatory action level

event.

(c) The

Commissioner shall order such examination and analysis as the Commissioner

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

including a review of its risk based capital plan or revised risk based capital

plan. Subsequent to the examination or analysis, the Commissioner shall issue

an order specifying such corrective actions as the Commissioner shall determine

are required. In determining corrective actions, the Commissioner may take into

account the results of any examination and analysis of the insurer's assets,

liabilities, and operations, including any sensitivity test undertaken pursuant

to the risk based capital instructions.

(d) The

Commissioner may retain actuaries, investment experts, and other consultants as

the Commissioner deems necessary to review the insurer's risk based capital

plan or revised risk based capital 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

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

directed by the Commissioner. (Added 1993, No. 235 (Adj. Sess.), § 8, eff. June

21, 1994.)
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