(a) “Regulatory Action Level Event” means, with respect to any insurer, any of the following events:
(1) the filing of an RBC Report by the insurer that indicates that 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;
(2) the notification by the Commissioner to an insurer of an Adjusted RBC Report that indicates the event in paragraph (1), if insurer does not challenge the Adjusted RBC Report under section 477;
(3) if, pursuant to section 477, the insurer challenges an Adjusted RBC Report that indicates the event in paragraph (1), the notification by the Commissioner to the insurer that the Commissioner has, after a hearing, rejected the insurer’s challenge;
(4) the failure of the insurer to file an RBC Report by the filing date, unless the insurer has provided an explanation for such failure which is satisfactory to the Commissioner and has cured the failure not later than 10 days after the filing date;
(5) the failure of the insurer to submit an RBC Plan to the Commissioner within the period set forth in section 473(c);
(6) notification by the Commissioner to the insurer that:
(A) the RBC Plan or revised RBC Plan submitted by the insurer is, in the judgment of the Commissioner, unsatisfactory; and
(B) the notification constitutes a Regulatory Action Level Event with respect to the insurer, if the insurer has not challenged the determination under section 477;
(7) if, pursuant to section 477, the insurer challenges a determination by the Commissioner under paragraph (6), the notification by the Commissioner to the insurer that the Commissioner has, after a hearing, rejected such challenge;
(8) notification by the Commissioner 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 Commissioner has so stated in the notification, if the insurer has not challenged the determination under section 477; or
(9) if, pursuant to section 477, the insurer challenges a determination by the Commissioner under paragraph (8), the notification by the Commissioner to the insurer that the Commissioner has, after a hearing, rejected the challenge.
(b) If a Regulatory Action Level Event occurs, the Commissioner shall:
(1) require the insurer to prepare and submit an RBC Plan or, if applicable, a Revised RBC Plan;
(2) perform such examination or analysis as the Commissioner considers necessary of the assets, liabilities, and operations of the insurer including a review of its RBC Plan or Revised RBC Plan; and
(3) subsequent to the examination or analysis, issue a corrective order specifying the corrective action the Commissioner determines are required.
(c) In determining corrective actions, the Commissioner may take into account the factors that are relevant with respect to the insurer based upon the Commissioner’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 must be submitted:
(1) no later than 45 days after the occurrence of the Regulatory Action Level Event;
(2) if the insurer challenges an Adjusted RBC Report pursuant to section 477 and the challenge is not frivolous in the judgment of the Commissioner, no later than 45 days after the notification to the insurer that the Commissioner has, after a hearing, rejected the insurer’s challenge; or
(3) if the insurer challenges a Revised RBC Plan pursuant to section 477 and the challenge is not frivolous in the judgment of the Commissioner, no later than 45 days after the notification to the insurer that the Commissioner has, after a hearing, rejected the insurer’s challenge.
(d) The Division of Banking, Insurance and Financial Regulation may hire any necessary, additional staff to carry out the duties and obligations under this section. The staff of the Division shall receive the training necessary to carry out the duties and obligations under this section including, but not limited to, training in conducting the examination required in this section. All fees, costs and expenses associated with the examination of an insurer are borne by the affected insurer or another party as directed by the Commissioner.
(e) The Commissioner may hire actuaries and investment experts and other consultants to review the insurer’s RBC Plan or Revised RBC 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 are borne by the affected insurer or another party as directed by the Commissioner.