OAR 836-011-0330: Regulatory Action Level Event

(1) “Regulatory action level event” means, with respect to an insurer, any of the following events: (a) The filing of an RBC report by the insurer that indicates 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; (b) Notification by the Director to the insurer of an adjusted RBC report that indicates the event in subsection (a) of this section (1), if the insurer does not challenge the adjusted RBC report under OAR 836-011-0360; (c) If, pursuant to OAR 836-011-0360, the insurer challenges an adjusted RBC report that indicates the event in subsection (a) of this section (1), notification by the Director to the insurer that the Director has, after a hearing, rejected the insurer’s challenge; (d) Failure of the insurer to file an RBC report by the filing date, unless the insurer has provided an explanation for the failure that is satisfactory to the Director and has cured the failure not later than the 10th day after the filing date; (e) Failure of the insurer to submit an RBC plan to the Director within the time period established in OAR 836-011-0320(3); (f) Notification by the Director to the insurer that: (A) The RBC plan or revised RBC plan submitted by the insurer is unsatisfactory, in the judgment of the Director; and (B) Such notification constitutes a regulatory action level event with respect to the insurer, if the insurer has not challenged the determination under OAR 836-011-0360; (g) If, pursuant to OAR 836-011-0360, the insurer challenges a determination by the Director under subsection (f) of this section, the notification by the Director to the insurer that the Director has, after a hearing, rejected the challenge; (h) 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 the 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, and if the insurer has not challenged the determination under OAR 836-011-0360; or (i) If, pursuant to OAR 836-011-0360, the insurer challenges a determination by the Director under subsection (h) of this section (1), 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: (a) Require the insurer to prepare and submit an RBC plan or, if applicable, a revised RBC plan; (b) Perform such examination or analysis of the assets, liabilities and operations of the insurer as the Director determines to be necessary, including a review of its RBC plan or revised RBC plan; and (c) Subsequent to the examination or analysis, issue a corrective order specifying the corrective actions that the Director determines to be required. (3) In determining corrective actions, the Director may take into account the factors that the Director determines to be 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: (a) Not later than the 45th day after the occurrence of the regulatory action level event; (b) If the insurer challenges an adjusted RBC report pursuant to OAR 836-011-0360 and the challenge is not frivolous in the judgment of the Director, not later than the 45th day after the notification to the insurer that the Director has, after a hearing, rejected the insurer’s challenge; or (c) If the insurer challenges a revised RBC plan pursuant to OAR 836-011-0360 and the challenge is not frivolous in the judgment of the Director, not later than the 45th day after the notification to the insurer that the Director has, after a hearing, rejected the insurer’s challenge.