2006 Louisiana Laws - RS 22:2036.6 — Authorized control level event

§2036.6.  Authorized control level event

A.  "Authorized control level event" means any of the following events:

(1)  The filing of a risk-based capital report by the health organization that indicates that the health organization's total adjusted capital is greater than or equal to its mandatory control level risk-based capital but less than its authorized control level risk-based capital.

(2)  The notification by the commissioner to the health organization of an adjusted risk-based capital report that indicates the event in Paragraph (1) of this Subsection, provided the health organization does not challenge the adjusted risk-based capital report pursuant to R.S. 22:2036.8.

(3)  If, pursuant to R.S. 22:2036.8, the health organization challenges an adjusted risk-based capital report that indicates the event in Paragraph (1) of this Subsection, notification by the commissioner to the health organization that the commissioner has, after a hearing, rejected the health organization's challenge.

(4)  The failure of the health organization to respond, in a manner satisfactory to the commissioner, to a corrective order, provided the health organization has not challenged the corrective order pursuant to R.S. 22:2036.8.

(5)  If the health organization has challenged a corrective order pursuant to R.S. 22:2036.8 and the commissioner has, after a hearing, rejected the challenge or modified the corrective order, the failure of the health organization to respond, in a manner satisfactory to the commissioner, to the corrective order subsequent to rejection or modification by the commissioner.

B.  In the event of an authorized control level event with respect to a health organization, the commissioner shall do either of the following:

(1)  Take such actions as are required under R.S. 22:2036.5 regarding a health organization with respect to which a regulatory action level event has occurred.

(2)  If the commissioner deems it to be in the best interests of the policyholders and creditors of the health organization and of the public, take such actions as are necessary to cause the health organization to be placed under regulatory control pursuant to Part XVI of Chapter 1 of this Title.  In the event the commissioner takes such actions, the authorized control level event shall be deemed sufficient grounds for the commissioner to take action pursuant to Part XVI of Chapter 1 of this Title and the commissioner shall have the rights, powers, and duties with respect to the health organization as are set forth in Part XVI of Chapter 1 of this Title.

Acts 2003, No. 1106, §1, eff. Dec. 31, 2003.