2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 521E - RISK=BASED CAPITAL REQUIREMENTS FOR INSURERS
521E.6 - MANDATORY-CONTROL-LEVEL EVENT.

        521E.6  MANDATORY-CONTROL-LEVEL EVENT.
         1.  "Mandatory-control-level event" means any of the following
      events:
         a.  The filing of a risk-based capital report which indicates
      that an insurer's total adjusted capital is less than its
      mandatory-control-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".
         2.  In the event of a mandatory-control-level event the
      commissioner shall do the following:
         a.  With respect to a life insurer, take action as necessary
      to place the insurer under supervision or other regulatory control
      under chapter 507C.  If the commissioner takes action pursuant to
      this paragraph, the mandatory- control-level event is deemed
      sufficient grounds for the commissioner to take action pursuant to
      chapter 507C, and the commissioner shall have the rights, powers, and
      duties with respect to the insurer as set forth in chapter 507C.  If
      the commissioner takes action pursuant to an adjusted risk-based
      capital report, the insurer is entitled to the protections of chapter
      17A pertaining to summary proceedings.  Notwithstanding the
      provisions of this paragraph, the commissioner may forego any action
      pursuant to this paragraph for up to ninety days after the
      mandatory-control-level event if the commissioner finds a reasonable
      expectation exists that the mandatory-control-level event may be
      eliminated within the ninety-day period.
         b.  With respect to a property and casualty insurer, take
      action as necessary to place the insurer under supervision or other
      regulatory control under chapter 507C, or, in the case of an insurer
      which is no longer writing business and which 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 deemed sufficient
      grounds for the commissioner to take action under chapter 507C and
      the commissioner shall have the rights, powers, and duties with
      respect to the insurer as set forth in chapter 507C.  If the
      commissioner takes action pursuant to an adjusted risk-based capital
      report, the insurer is entitled to the protections of chapter 17A
      pertaining to summary proceedings.  Notwithstanding the provisions of
      this paragraph, the commissioner may forego action for up to ninety
      days after the mandatory-control-level event if the commissioner
      finds a reasonable expectation exists that the
      mandatory-control-level event may be eliminated within the ninety-day
      period.  

         96 Acts, ch 1046, §14