(a) “Mandatory Control Level Event” means any of the following events:
(1) the filing of an RBC Report that indicates that the insurer’s total adjusted capital is less than its Mandatory Control Level RBC;
(2) notification by the Commissioner to the insurer of an Adjusted RBC Report that indicates that the insurer’s total adjusted capital is less than its Mandatory Control Level RBC, if the insurer does not challenge the Adjusted RBC Report under section 477; or
(3) if, pursuant to section 477, the insurer challenges an Adjusted RBC Report that indicates that the insurer’s total adjusted capital is less than its Mandatory Control Level RBC notification by the Commissioner to the insurer that the Commissioner has, after a hearing, rejected the insurer’s challenge.
(b) If a Mandatory Control Level Event occurs:
(1) Regarding a life insurer or fraternal benefit society, the Commissioner shall take the necessary action to place the insurer under regulatory control pursuant chapter 51 of this title. The Mandatory Control Level Event is sufficient grounds for the Commissioner to take action under chapter 51 of this title. If the Commissioner takes action pursuant to an Adjusted RBC Report, the insurer is entitled to the protections of section 477, notwithstanding any of the foregoing, the Commissioner may forego action for up to 90 days after the Mandatory Control Level Event if the Commissioner finds that there is a reasonable expectation that the Mandatory Control Level Event may be eliminated within a 90-day period.
(2) Regarding a property and casualty insurer, the Commissioner shall take the action necessary to place the insurer under regulatory control pursuant to chapter 51 of this title, or, in the case of an insurer that is writing no business and that is running-off its existing business, the Commissioner may allow the insurer to continue its run-off under the supervision of the Commissioner. In either event, the Mandatory Control Level Event is sufficient grounds for the Commissioner to take action under chapter 51 of this title, and if the Commissioner takes action pursuant to an Adjusted RBC Report, the insurer is entitled to the protections of section 477, pertaining to summary proceedings.
(3) Notwithstanding any of the foregoing, the Commissioner may forego action for up to 90 days after the Mandatory Control Level Event, if the Commissioner finds there is a reasonable expectation that the Mandatory Control Level Event may be eliminated within a 90-day period.