211 CMR, § 20.06 - Mandatory Control Level Event
(1)
Mandatory Control Level Event. Means any of the
following events:
(a) The filing of an RBC
Report which indicates that the insurer's total adjusted capital is less than
its Mandatory Control Level RBC;
(2) In the event of a Mandatory
Control Level Event:
(a) With respect to a
life insurer or a Fraternal Benefit Society, the Commissioner shall take such
actions as are necessary to place the insurer under regulatory control under
M.G.L. c. 175, §§ 180A through 180LV2 in the case of a life insurer
or M.G.L. c. 176, § 33 in the case of a Fraternal Benefit Society. In that
event, the Mandatory Control Level Event shall be deemed sufficient grounds for
the Commissioner to take action under M.G.L. c. 175, §§ 180A through
180LV2 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 or c. 176, § 33 as applicable. If the
Commissioner takes actions pursuant to an Adjusted RBC Report, the insurer
shall be entitled to the protections of M.G.L. c. 175, §§ 180A
through 180LV2 or c. 176, § 33 as applicable, pertaining to summary
proceedings. Notwithstanding any of the foregoing, the Commissioner may forego
action for up to 90 days after the Mandatory Control Level Event if the
Commissioner finds there is a reasonable expectation that the Mandatory Control
Level Event may be eliminated within the 90 day period.
(b) With respect to a property and casualty
insurer, the Commissioner shall take such actions as are necessary to place the
insurer under regulatory control under M.G.L. c. 175, §§180A through
18OLV2, or, in the case of an insurer which is writing no business and which is
running-off its existing business, may allow the insurer to continue its
run-off under the supervision of the Commissioner. In either event, the
Mandatory Control Level Event shall be deemed sufficient grounds for the
Commissioner to take action under M.G.L. c. 175, §§180A through
18OLV2, 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. If the Commissioner takes actions pursuant to an Adjusted RBC
Report, the insurer shall be entitled to the protections of M.G.L. c. 175,
§§ 180A through 180LV2, pertaining to summary proceedings.
Notwithstanding any of the foregoing, the Commissioner may forego action for up
to 90 days after the Mandatory Control Level Event if the Commissioner finds
there is a reasonable expectation that the Mandatory Control Level Event may be
eliminated within the 90 day period.
Notes
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