Section 4-308 - Mandatory control level event.
§ 4-308. Mandatory control level event.
(a) In general.- A mandatory control level event occurs when:
(1) an insurer files an RBC report that indicates that the insurer has total adjusted capital that is less than its mandatory control level RBC;
(2) the Commissioner notifies the insurer of an adjusted RBC report that indicates an event under item (1) of this subsection; or
(3) if an insurer requests a hearing to challenge an adjusted RBC report that indicates the event under item (1) of this subsection, the Commissioner notifies the insurer that the Commissioner, after a hearing, has rejected the insurer's challenge.
(b) Action by Commissioner.-
(1) In the case of a life insurer, if a mandatory control level event occurs with respect to the life insurer, the Commissioner shall take any action that may be necessary to place the life insurer under conservation, rehabilitation, or liquidation under Title 9 of this article.
(2) In the case of a property and casualty insurer, if a mandatory control level event occurs with respect to the property and casualty insurer, the Commissioner:
(i) shall take any action that may be necessary to place the property and casualty insurer under conservation, rehabilitation, or liquidation under Title 9 of this article; or
(ii) in the case of a property and casualty insurer that is not writing any new business and that is running off its existing business, may allow the property and casualty insurer to continue its run-off under the supervision of the Commissioner.
(3) In the case of a health insurer, if a mandatory control level event occurs with respect to the health insurer, the Commissioner shall take any action that may be necessary to place the health insurer under conservation, rehabilitation, or liquidation under Title 9 of this article.
(c) When Commissioner may delay action.- The Commissioner may delay action under subsection (b) of this section for up to 90 days after the occurrence of the mandatory control level event if the Commissioner finds there is a reasonable expectation that the mandatory control level event may be eliminated within the 90-day period.
(d) Applicability of Title 9.-
(1) The Commissioner shall have the rights, powers, and duties under Title 9 of this article needed to carry out the requirements of this section.
(2) If the Commissioner takes any action under Title 9 of this article pursuant to an adjusted RBC report as provided in this section, the insurer shall be entitled to the protections afforded to insurers under Title 9 of this article with regard to summary proceedings.
[An. Code 1957, art. 48A, § 745; 1995, ch. 339, § 2; 1998, ch. 38; 2000, ch. 331, § 2.]