40-2c06. Risk-based capital; company action level event; submission of RBC plan.
40-2c06
40-2c06. Risk-based capital; company action level event; submission of RBCplan.In the event of a company action level event, the insurershall prepare and submit to the commissioner an RBC plan which shall:
(a) Identify the conditions in the insurer's operation which contribute tothe company action level event;
(b) contain proposals of corrective actions which the insurer intends totake that would be expected to result in the elimination of the company actionlevel event;
(c) provide projections of the insurer's financial results in the currentyear and at least the four succeeding years, both in the absence of theproposed corrective actions and giving effect to the proposed correctiveactions, including projections of statutory operating income, net income,capital and surplus or surplus only with respect to a mutual insurer. Theprojections for both new and renewal business may include separate projectionsfor each major line of business and separately identify each significantincome, expense and benefit component;
(d) identify the key assumptions impacting the insurer's projections and thesensitivity of the projections to the assumptions; and
(e) identify the quality of, and problems associated with, the insurer'sbusiness, including, but not limited to, its assets, anticipated businessgrowthand associated surplus strain, extraordinary exposure to risk, mix of businessand use of reinsurance in each case, if any.
History: L. 1994, ch. 138, § 6; July 1.