2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 521E - RISK=BASED CAPITAL REQUIREMENTS FOR INSURERS
521E.4 - REGULATORY-ACTION-LEVEL EVENT.

        521E.4  REGULATORY-ACTION-LEVEL EVENT.
         1.  "Regulatory-action-level event" means any of the
      following:
         a.  The filing of a risk-based capital report by the insurer
      which indicates that the insurer's total adjusted capital is greater
      than or equal to its authorized-control- level risk-based capital but
      less than its regulatory-action- level risk-based capital.
         b.  Notification by the commissioner to an insurer of an
      adjusted risk-based capital report that indicates the 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.  After a hearing pursuant to section 521E.7, notification
      by the commissioner to the insurer that the commissioner has rejected
      the insurer's challenge of the adjusted risk-based capital report
      indicating the event in paragraph "a".
         d.  Failure of the insurer to file a risk-based capital report
      by the filing date, unless the insurer has provided an explanation
      for the failure which is satisfactory to the commissioner and has
      cured the failure within ten days after the filing date.
         e.  Failure of the insurer to submit a risk-based capital plan
      to the commissioner within the time period set forth in section
      521E.3, subsection 3.
         f.  Notification by the commissioner to the insurer of both of
      the following:
         (1)  The risk-based capital plan or revised risk-based capital
      plan submitted by the insurer, in the judgment of the commissioner,
      is unsatisfactory.
         (2)  Notification pursuant to this paragraph constitutes a
      regulatory-action-level event with respect to the insurer, provided
      the insurer has not challenged the determination pursuant to section
      521E.7.
         g.  After a hearing pursuant to section 521E.7, notification
      by the commissioner to the insurer that the commissioner has rejected
      the insurer's challenge of the determination made by the commissioner
      pursuant to paragraph "f".
         h.  Notification by the commissioner to the insurer that the
      insurer has failed to adhere to the insurer's risk-based capital plan
      or revised risk-based capital plan, but only if the failure has a
      substantial adverse effect on the ability of the insurer to eliminate
      the company-action-level event pursuant to the insurer's risk-based
      capital plan or revised risk-based capital plan and the commissioner
      has so stated in the notification.  However, notification by the
      commissioner pursuant to this paragraph does not constitute a
      company- action-level event if the insurer has challenged the
      determination of the commissioner pursuant to section 521E.7.
         i.  After a hearing pursuant to section 521E.7, notification
      by the commissioner to the insurer that the commissioner has rejected
      the insurer's challenge of the commissioner's determination pursuant
      to paragraph "h".
         2.  In the event of a regulatory-action-level event the
      commissioner shall do all of the following:
         a.  Require the insurer to prepare and submit a risk-based
      capital plan or a revised risk-based capital plan, as applicable.
         b.  Perform an examination or analysis of the assets,
      liabilities, and operations of the insurer, including a review of its
      risk-based capital plan or revised risk-based capital plan, as deemed
      necessary by the commissioner.
         c.  Subsequent to the examination or analysis pursuant to
      paragraph "b", issue a corrective order.
         3.  In determining the corrective actions to be specified, the
      commissioner shall take into account factors the commissioner deems
      to be 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
      risk-based capital instructions.  The risk-based capital plan or
      revised risk-based capital plan shall be submitted within forty-five
      days after the occurrence of the regulatory-action-level event,
      except as follows:
         a.  If the insurer challenges an adjusted risk-based capital
      report pursuant to section 521E.7, and in the judgment of the
      commissioner the challenge is not frivolous, within forty-five days
      after the notification to the insurer that the commissioner, after a
      hearing pursuant to section 521E.7, has rejected the insurer's
      challenge.
         b.  If the insurer challenges a revised risk-based capital
      plan pursuant to section 521E.7, and in the judgment of the
      commissioner the challenge is not frivolous, within forty-five days
      after the notification to the insurer that the commissioner, after a
      hearing pursuant to section 521E.7, has rejected the insurer's
      challenge.
         4.  The commissioner may retain actuaries, investment experts, and
      other consultants as deemed necessary by the commissioner to review
      the insurer's risk-based capital plan or revised risk-based capital
      plan; examine or analyze the assets, liabilities, and operations of
      the insurer; and assist in the formulation of the corrective order
      with respect to the insurer.  Fees of the actuaries, investment
      experts, or other consultants retained by the commissioner shall be
      paid by the insurer subject to the review or examination.  

         96 Acts, ch 1046, §12
         Referred to in § 521E.5