20-488.03. Regulatory action level event

302 words·~1 min read·/az/title-20/20-488-03

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. If a regulatory action level event occurs, the director shall:

1. Require the insurer to submit an RBC plan or, if applicable, a revised RBC plan.

2. Perform an examination or analysis, as the director deems necessary, of the assets, liabilities and operations of the insurer, including a review of the insurer's RBC plan or revised RBC plan.

3. After conducting the examination or analysis, issue a corrective order specifying any corrective actions that the director determines are required.

B. In determining what corrective actions may be required, the director may consider any factors that the director deems relevant with respect to the insurer based on the director's examination or analysis of the insurer's assets, liabilities and operations, including but not limited to the results of any sensitivity tests undertaken pursuant to the RBC instructions. The RBC plan or revised RBC plan shall be submitted within one of the following:

1. Forty-five days after the regulatory action level event occurs.

2. If the insurer challenges an adjusted RBC report pursuant to section 20-488.06 and the director does not consider the challenge to be frivolous, forty-five days after the insurer is notified that the director, after a hearing, has rejected the insurer's challenge.

3. If the insurer challenges a revised RBC plan pursuant to section 20-488.06, forty-five days after the insurer is notified that the director, after a hearing, has rejected the insurer's challenge.

C. The director may retain actuaries, investment experts and other consultants to review the insurer's RBC plan or revised RBC plan, to examine or analyze the assets, liabilities and operations of the insurer and to formulate the corrective order with respect to the insurer. The affected insurer or another party if ordered by the director shall pay the fees, costs and other expenses relating to any retained consultants.