2019 US Virgin Islands Code
Title 22 - Insurance
Chapter 20 - Virgin Islands Risk-Based Capital for Insurers Act
§ 475. Authorized Control Level Event
(a) “Authorized Control Level Event” means any of the following events:
(1) the filing of an RBC Report by the insurer which indicates that the insurer’s total adjusted capital is greater than or equal to its Mandatory Control Level RBC, but less than its Authorized Control Level RBC;
(2) the notification by the Commissioner to the insurer of an Adjusted RBC Report that indicates the event in paragraph (1), if the insurer does not challenge the Adjusted RBC Report under section 477;
(3) if, pursuant to section 477, the insurer challenges an Adjusted RBC Report that indicates the event in paragraph (1), notification by the Commissioner to the insurer that the Commissioner has, after a hearing, rejected the insurer’s challenge;
(4) the failure of the insurer to respond to a corrective order, in a manner satisfactory to the Commissioner; but the insurer has not challenged the corrective order under section 477;
(5) if the insurer has challenged a corrective order under section 477 and the Commissioner has, after a hearing, rejected the challenge or modified the corrective order, the failure of the insurer to respond, in a manner satisfactory to the Commissioner, to the corrective order subsequent to rejection or modification by the Commissioner.
(b) If an Authorized Control Level Event occurs, the Commissioner shall:
(1) take the actions required under section 474 regarding an insurer with respect to which an Regulatory Action Level Event has occurred; or
(2) if the Commissioner considers it to be in the best interests of the policyholders and creditors of the insurer and of the public, take such actions necessary to cause the insurer to be placed under regulatory control pursuant to chapter 51 of this title. If the Commissioner takes such actions, the Authorized Control Level Event is sufficient grounds for the Commissioner to take action under chapter 51 of this title. If the Commissioner takes action under this paragraph pursuant to an Adjusted RBC Report, the insurer is entitled to the protections afforded under section 477, pertaining to summary proceedings.
