2005 Idaho Code - 41-5405 — AUTHORIZED CONTROL LEVEL EVENT

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 54
                  RISK-BASED CAPITAL (RBC) FOR INSURERS ACT
    41-5405.  AUTHORIZED CONTROL LEVEL EVENT. (1) "Authorized control level
event" means any of the following events:
    (a)  The filing of an RBC report by the insurer which indicates that the
    insurer's total adjusted capital is greater than or equal to its mandatory
    control level RBC but less than its authorized control level RBC;
    (b)  The notification by the director to the insurer of an adjusted RBC
    report that indicates the event in paragraph (a) of this subsection,
    provided the insurer does not challenge the adjusted RBC report under
    section 41-5407, Idaho Code;
    (c)  If, pursuant to section 41-5407, Idaho Code, the insurer challenges
    an adjusted RBC report that indicates the event in paragraph (a) of this
    subsection, notification by the director to the insurer that the director
    has, after a hearing, rejected the insurer's challenge;
    (d)  The failure of the insurer to respond, in a manner satisfactory to
    the director, to a corrective order, provided the insurer has not
    challenged the corrective order under section 41-5407, Idaho Code; or
    (e)  If the insurer has challenged a corrective order under section
    41-5407, Idaho Code, and the director has, after a hearing, rejected the
    challenge or modified the corrective order, the failure of the insurer to
    respond, in a manner satisfactory to the director, to the corrective order
    subsequent to rejection or modification by the director.
    (2)  In the event of an authorized control level event with respect to an
insurer, the director shall:
    (a)  Take such actions as are required under section 41-5404, Idaho Code,
    regarding an insurer with respect to which a regulatory action level event
    has occurred; or
    (b)  If the director deems it to be in the best interests of the
    policyholders and creditors of the insurer and of the public, take such
    actions as are necessary to cause the insurer to be placed under
    regulatory control pursuant to chapter 33, title 41, Idaho Code. In the
    event the director takes such actions, the authorized control level event
    shall be deemed sufficient grounds for the director to take action
    pursuant to chapter 33, title 41, Idaho Code, and the director shall have
    the rights, powers and duties with respect to the insurer as are set forth
    in chapter 33, title 41, Idaho Code. In the event the director takes
    actions under this paragraph pursuant to an adjusted RBC report, the
    insurer shall be entitled to such protections as are afforded to insurers
    under the provisions of section 41-3309, Idaho Code, pertaining to summary
    proceedings.