211 CMR 20.05 - Authorized Control Level Event

Current through Register 1466, April 1, 2022

(1) Authorized Control Level Event. Means any of the following events:
(a) 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;
(b) The notification by the Commissioner to the insurer of an Adjusted RBC Report that indicates the event in 211 CMR 20.05(1)(a), provided the insurer does not challenge the Adjusted RBC Report under 211 CMR 20.07;
(c) If, pursuant to 211 CMR 20.07, the insurer challenges an Adjusted RBC Report that indicates the event in 211 CMR 20.05(1)(a), notification by the Commissioner to the insurer that the Commissioner has, after a hearing, rejected the insurer's challenge;
(d) The failure of the insurer to respond, in a manner satisfactory to the Commissioner, to a corrective order (provided the insurer has not challenged the corrective order under 211 CMR 20.07 ); or
(e) If the insurer has challenged a corrective order under 211 CMR 20.07, 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.
(2) In the event of an Authorized Control Level Event with respect to an insurer, the Commissioner shall:
(a) Take such actions as are required under 211 CMR 20.04 regarding an insurer with respect to which an Regulatory Action Level Event has occurred; or
(b) If the Commissioner deems it to be in the best interests of the policyholders and creditors of the insurer and of the public, take such actions as are necessary to cause the insurer to be placed under regulatory control under M.G.L. c. 175, §§ 180A through 18OLV2 or c. 176, §33 as applicable. In the event the Commissioner takes such actions, the Authorized Control Level Event shall be deemed sufficient grounds for the Commissioner to take action under either M.G.L. c. 175, §§ 180A through 180U/2 or c. 176, § 33, and the Commissioner shall have the rights, powers and duties with respect to the insurer as are set forth in M.G.L. c. 175, §§ 180A through 180LV2 and c. 176, §33 as applicable. In the event the Commissioner takes actions under this paragraph pursuant to an Adjusted RBC Report, the insurer shall be entitled to such protections as are afforded to insurers under the provisions of either M.G.L. c. 175, §§ 180A through 180LV2 or c. 176, § 33 as applicable, pertaining to summary proceedings.

Notes

211 CMR 20.05
Amended by Mass Register Issue 1320, eff. 8/26/2016.

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