2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 521E - RISK=BASED CAPITAL REQUIREMENTS FOR INSURERS
521E.3 - COMPANY-ACTION-LEVEL EVENT.

        521E.3  COMPANY-ACTION-LEVEL EVENT.
         1.  "Company-action-level event" means any of the following:
         a.  The filing of a risk-based capital report by an insurer
      which indicates either of the following:
         (1)  For an insurer other than a life and health insurer, the
      insurer's total adjusted capital is greater than or equal to its
      regulatory-action-level risk-based capital but less than its
      company-action-level risk-based capital.
         (2)  For a life and health insurer, the insurer's total adjusted
      capital is greater than or equal to its company- action-level
      risk-based capital but less than the product of its
      authorized-control-level risk-based capital and two and one-half, and
      has a negative trend.
         b.  Notification by the commissioner to the insurer of an
      adjusted risk-based capital report that indicates an event in
      paragraph "a", provided the insurer does not challenge the
      adjusted risk-based capital report and request a hearing pursuant to
      section 521E.7.
         c.  If a hearing is requested pursuant to section 521E.7,
      notification by the commissioner to the insurer after the hearing
      that the commissioner has rejected the insurer's challenge of the
      adjusted risk-based capital report indicating an event in paragraph
      "a".
         2.  Upon the occurrence of a company-action-level event, the
      insurer shall prepare and submit to the commissioner a risk-based
      capital plan which shall include all of the following:
         a.  Identification of the conditions which contributed to the
      company-action-level event.
         b.  Proposed corrective actions which the insurer intends to
      implement and which are expected to result in the elimination of the
      company-action-level event.
         c.  Projections of the insurer's financial results for the
      current year and at least the four succeeding years, including
      projections of statutory operating income, net income, capital, and
      surplus.  Projections shall be provided assuming the absence of the
      proposed corrective actions and assuming the implementation of the
      proposed corrective actions.  The projections for both new and
      renewal business may include separate projections for each major line
      of business and separately identify each significant income, expense,
      and benefit component.
         d.  Identification of the primary assumptions impacting the
      insurer's projections and the sensitivity of the projections to the
      assumptions.
         e.  Identification of the quality of, and problems associated
      with, the insurer's business, including but not limited to its
      assets, anticipated business growth and associated surplus strain,
      extraordinary exposure to risk, mix of business, and use of
      reinsurance, if any, in each case.
         3.  The risk-based capital plan shall be submitted within
      forty-five days of the company-action-level event, or, if the insurer
      requests a hearing pursuant to section 521E.7 for the purpose of
      challenging the adjusted risk-based capital report, within forty-five
      days after notification to the insurer that the commissioner, after
      hearing, has rejected the insurer's challenge.
         4.  Within sixty days after the submission by an insurer of a
      risk-based capital plan to the commissioner, the commissioner shall
      notify the insurer whether the risk-based capital plan shall be
      implemented or, in the judgment of the commissioner, is
      unsatisfactory.  If the commissioner determines the risk-based
      capital plan is unsatisfactory, the notification to the insurer shall
      set forth the reasons for the determination, and may set forth
      proposed revisions which in the judgment of the commissioner will
      render the risk-based capital plan satisfactory.  Upon the receipt of
      notification from the commissioner pursuant to this subsection, the
      insurer shall prepare a revised risk-based capital plan, which may
      incorporate by reference any revisions proposed by the commissioner,
      and submit the revised risk-based capital plan to the commissioner
      within forty-five days of the receipt of notification from the
      commissioner of the commissioner's determination that the risk-based
      capital plan is unsatisfactory, or, if the insurer requests a hearing
      pursuant to section 521E.7 for the purpose of challenging the
      commissioner's determination, within forty-five days after
      notification to the insurer that the commissioner, after hearing, has
      rejected the insurer's challenge.
         5.  After notification of the insurer by the commissioner that the
      insurer's risk-based capital plan or revised risk- based capital plan
      is unsatisfactory, the commissioner, at the commissioner's discretion
      and subject to the insurer's right to a hearing pursuant to section
      521E.7, may specify in the notification that the notification
      constitutes a regulatory- action-level event.
         6.  A domestic insurer that files a risk-based capital plan or
      revised risk-based capital plan with the commissioner shall file a
      copy of the risk-based capital plan or revised risk- based capital
      plan with the insurance commissioner in a state in which the insurer
      is authorized to do business if both of the following apply:
         a.  The other state has a provision substantially similar to
      section 521E.8, subsection 1, with respect to the confidentiality and
      availability of such plans.
         b.  The insurance commissioner of that state has notified the
      insurer in writing of its request to receive a copy of the risk-based
      capital plan or revised risk-based capital plan.  Upon receipt of the
      written request, the insurer shall file a copy of the risk-based
      capital plan or revised risk-based capital plan with the requesting
      commissioner by no later than the later of the following:
         (1)  Fifteen days from the receipt of the written request.
         (2)  The date on which the risk-based capital plan or revised
      risk-based capital plan is filed pursuant to subsection 3 or 4, as
      applicable.  

         96 Acts, ch 1046, §11
         Referred to in § 521E.1, 521E.4