2005 Idaho Code - 41-5403 — COMPANY ACTION LEVEL EVENT

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 54
                  RISK-BASED CAPITAL (RBC) FOR INSURERS ACT
    41-5403.  COMPANY ACTION LEVEL EVENT. (1) "Company action level event"
means any of the following events:
    (a)  The filing of an RBC report by an insurer which indicates that:
         (i)  The insurer's total adjusted capital is greater than or equal to
         its regulatory action level RBC but less than its company action
         level RBC; or
         (ii) If a life and/or health insurer, the insurer has total adjusted
         capital which is greater than or equal to its company action level
         RBC but less than the product of its authorized control level RBC and
         2.5 and has a negative trend;
    (b)  The notification by the director to the insurer of an adjusted RBC
    report that indicates an event in paragraph (a) of this subsection,
    provided the insurer does not challenge the adjusted RBC report under
    section 41-5407, Idaho Code; or
    (c)  If, pursuant to section 41-5407, Idaho Code, an insurer challenges an
    adjusted RBC report that indicates the event in paragraph (a) of this
    subsection, the notification by the director to the insurer that the
    director has, after a hearing, rejected the insurer's challenge.
    (2)  In the event of a company action level event, the insurer shall
prepare and submit to the director an RBC plan which shall:
    (a)  Identify the conditions which contribute to the company action level
    event;
    (b)  Contain proposals of corrective actions which the insurer intends to
    take and would be expected to result in the elimination of the company
    action level event;
    (c)  Provide projections of the insurer's financial results in the current
    year and at least the four (4) succeeding years, both in the absence of
    proposed corrective actions and giving effect to the proposed corrective
    actions, including projections of statutory operating income, net income,
    capital and surplus. (The projections for both new and renewal business
    might include separate projections for each major line of business and
    separately identify each significant income, expense and benefit
    component);
    (d)  Identify the key assumptions impacting the insurer's projections and
    the sensitivity of the projections to the assumptions; and
    (e)  Identify 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 RBC plan shall be submitted:
    (a)  Within forty-five (45) days of the company action level event; or
    (b)  If the insurer challenges an adjusted RBC report pursuant to section
    41-5407, Idaho Code, within forty-five (45) days after notification to the
    insurer that the director has, after a hearing, rejected the insurer's
    challenge.
    (4)  Within sixty (60) days after the submission by an insurer of an RBC
plan to the director, the director shall notify the insurer whether the RBC
plan shall be implemented or is, in the judgment of the director,
unsatisfactory. If the director determines the RBC plan is unsatisfactory, the
notification to the insurer shall set forth the reasons for the determination,
and may set forth proposed revisions which will render the RBC plan
satisfactory, in the judgment of the director. Upon notification from the
director, the insurer shall prepare a revised RBC plan, which may incorporate
by reference any revisions proposed by the director, and shall submit the
revised RBC plan to the director:
    (a)  Within forty-five (45) days after the notification from the director;
    or
    (b)  If the insurer challenges the notification from the director under
    section 41-5407, Idaho Code, within forty-five (45) days after a
    notification to the insurer that the director has, after a hearing,
    rejected the insurer's challenge.
    (5)  In the event of a notification by the director to an insurer that the
insurer's RBC plan or revised RBC plan is unsatisfactory, the director may, at
the director's discretion, subject to the insurer's right to a hearing under
section 41-5407, Idaho Code, specify in the notification that the notification
constitutes a regulatory action level event.
    (6)  Every domestic insurer that files an RBC plan or revised RBC plan
with the director shall file a copy of the RBC plan or revised RBC plan with
the insurance director in any state in which the insurer is authorized to do
business if:
    (a)  Such state has an RBC provision substantially similar to section
    41-5408(1), Idaho Code; and
    (b)  The insurance director of that state has notified the insurer of its
    request for the filing in writing, in which case the insurer shall file a
    copy of the RBC plan or revised RBC plan in that state no later than the
    later of:
         (i)  Fifteen (15) days after the receipt of notice to file a copy of
         its RBC plan or revised RBC plan with the state; or
         (ii) The date on which the RBC plan or revised RBC plan is filed
         under subsections (3) and (4) of this section.