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The Vermont Statutes Online
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.)