Or. Admin. R. 410-141-5205 - CAPITALIZATION: Company Action Level Event
(1) "Company Action Level Event" means any of
the following events:
(a) The filing of an
RBC Report by a CCO that indicates that the CCO's Total Adjusted Capital is
greater than or equal to its Regulatory Action Level RBC but less than its
Company Action Level RBC . The CCO shall provide prompt written notice to the
Authority, together with an RBC Report, if it learns that the CCO is the
subject of a Company Action Level Event.
(b) Notification by the Authority to the CCO
of an adjusted RBC Report that indicates an event in subsection (a), if the CCO
does not challenge the adjusted RBC Report .
(c) If a CCO challenges an adjusted RBC
Report that indicates the event in subsection (a), notification by the
Authority to the CCO that the Authority has, after a hearing, rejected the
CCO's challenge.
(2) In
the event of a Company Action Level Event, the CCO shall prepare and submit to
the Authority an RBC Plan that:
(a)
Identifies the conditions that caused or contributed to the Company Action
Level Event.
(b) Contains proposed
corrective actions that the CCO intends to take and that are expected to result
in the elimination of the Company Action Level Event.
(c) Provides projections of the CCO's
financial results in the current year and at least two succeeding years, both
in the absence of the proposed corrective actions and giving effect to the
proposed corrective actions, including projections of statutory balance sheets,
operating income, net income, capital and surplus, and RBC levels.
(d) Identifies the key assumptions impacting
the CCO's projections and the sensitivity of the projections to those
assumptions.
(e) Identifies the
quality of, and problems associated with, the CCO's business, including but not
limited to its assets, anticipated business growth and associated surplus
strain, extraordinary exposure to risk, mix of business and use of reinsurance,
if any.
(3) The RBC Plan
shall be submitted:
(a) Within 30 days of the
Company Action Level Event; or
(b)
Within 30 days after notification to the CCO that the Authority has, after a
hearing, rejected the CCO's challenge, if the CCO challenges an adjusted RBC
Report which indicated a Company Action Level Event.
(4) Within 60 days after the submission by a
CCO of an RBC Plan to the Authority, the Authority shall notify the CCO whether
the RBC Plan shall be implemented or is, in the judgment of the Authority,
unsatisfactory. If the Authority determines the RBC Plan is unsatisfactory, the
notification to the CCO shall set forth the reasons for the determination and
may set forth proposed revisions that will render the RBC Plan satisfactory, in
the judgment of the Authority. Upon notification from the Authority, the CCO
shall prepare a revised RBC Plan , which may incorporate by reference any
revisions proposed by the Authority, and shall submit the revised RBC Plan to
the Authority:
(a) Within 45 days after the
notification from the Authority; or
(b) Within 45 days after a notification to
the CCO that the Authority has, after a hearing, rejected the CCO's challenge,
if the CCO challenges the notification from the Authority under this
section.
(5) In the
event of a notification by the Authority to a CCO that the CCO's RBC Plan or
revised RBC Plan is unsatisfactory, the Authority may at the Authority's
discretion, subject to the CCO's right to a hearing under this section, specify
in the notification that the notification constitutes a Regulatory Action Level
Event.
Notes
Statutory/Other Authority: ORS 413.042, 414.615, 414.625, 414.635 & 414.651
Statutes/Other Implemented: ORS 414.610 - 414.685
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(1) "Company Action Level Event" means any of the following events:
(a) The filing of an RBC Report by a CCO that indicates that the CCO's Total Adjusted Capital is greater than or equal to its Regulatory Action Level RBC but less than its Company Action Level RBC. The CCO shall provide prompt written notice to the Authority, together with an RBC Report, if it learns that the CCO is the subject of a Company Action Level Event.
(b) Notification by the Authority to the CCO of an adjusted RBC Report that indicates an event in subsection (a), if the CCO does not challenge the adjusted RBC Report.
(c) If a CCO challenges an adjusted RBC Report that indicates the event in subsection (a), notification by the Authority to the CCO that the Authority has, after a hearing, rejected the CCO's challenge.
(2) In the event of a Company Action Level Event, the CCO shall prepare and submit to the Authority an RBC Plan that:
(a) Identifies the conditions that caused or contributed to the Company Action Level Event.
(b) Contains proposed corrective actions that the CCO intends to take and that are expected to result in the elimination of the Company Action Level Event.
(c) Provides projections of the CCO's financial results in the current year and at least two succeeding years, both in the absence of the proposed corrective actions and giving effect to the proposed corrective actions, including projections of statutory balance sheets, operating income, net income, capital and surplus, and RBC levels.
(d) Identifies the key assumptions impacting the CCO's projections and the sensitivity of the projections to those assumptions.
(e) Identifies the quality of, and problems associated with, the CCO's business, including but not limited to its assets, anticipated business growth and associated surplus strain, extraordinary exposure to risk, mix of business and use of reinsurance, if any.
(3) The RBC Plan shall be submitted:
(a) Within 30 days of the Company Action Level Event; or
(b) Within 30 days after notification to the CCO that the Authority has, after a hearing, rejected the CCO's challenge, if the CCO challenges an adjusted RBC Report which indicated a Company Action Level Event.
(4) Within 60 days after the submission by a CCO of an RBC Plan to the Authority, the Authority shall notify the CCO whether the RBC Plan shall be implemented or is, in the judgment of the Authority, unsatisfactory. If the Authority determines the RBC Plan is unsatisfactory, the notification to the CCO shall set forth the reasons for the determination and may set forth proposed revisions that will render the RBC Plan satisfactory, in the judgment of the Authority. Upon notification from the Authority, the CCO shall prepare a revised RBC Plan, which may incorporate by reference any revisions proposed by the Authority, and shall submit the revised RBC Plan to the Authority:
(a) Within 45 days after the notification from the Authority; or
(b) Within 45 days after a notification to the CCO that the Authority has, after a hearing, rejected the CCO's challenge, if the CCO challenges the notification from the Authority under this section.
(5) In the event of a notification by the Authority to a CCO that the CCO's RBC Plan or revised RBC Plan is unsatisfactory, the Authority may at the Authority's discretion, subject to the CCO's right to a hearing under this section, specify in the notification that the notification constitutes a Regulatory Action Level Event.
Notes
Statutory/Other Authority: ORS 413.042, 414.615, 414.625, 414.635 & 414.651
Statutes/Other Implemented: ORS 414.610 - 414.685