Or. Admin. R. 410-141-5210 - CAPITALIZATION: Regulatory Action Level Event
Current through Register Vol. 60, No. 12, December 1, 2021
(1) "Regulatory Action Level Event" means,
with respect to a CCO, any of the following events:
(a) The filing of an RBC Report by the CCO
that indicates that the CCO's Total Adjusted Capital is greater than or equal
to its Authorized Control Level RBC but less than its Regulatory 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 Regulatory
Action Level Event.
(b)
Notification by the Authority to a CCO of an adjusted RBC Report that indicates
the event in subsection (a), if the CCO does not challenge the adjusted RBC
Report.
(c) If the CCO challenges
an adjusted RBC Report that indicates the event in subsection (a), the
notification by the Authority to the CCO that the Authority has, after a
hearing, rejected the CCO's challenge.
(d) The failure of the CCO to file an RBC
Report by the filing date, unless the CCO has provided an explanation for the
failure that is satisfactory to the Authority and has cured the failure within
ten days after the filing date.
(e)
The failure of the CCO to submit an RBC Plan to the Authority within the time
period set forth in this section.
(f) Notification by the Authority to the CCO
that:
(A) The RBC Plan or revised RBC Plan
submitted by the CCO under this section is, in the judgment of the Authority,
unsatisfactory; and
(B) The CCO has
not challenged the determination.
(g) If the CCO challenges a determination by
the Authority, the notification by the Authority to the CCO that the Authority
has, after a hearing, rejected the challenge;
(h) Notification by the Authority to the CCO
that the CCO has failed to adhere to its RBC Plan or revised RBC Plan, but only
if the failure has a substantial adverse effect on the ability of the CCO to
eliminate the Company Action Level Event in accordance with its RBC Plan or
revised RBC Plan and the Authority has so stated in the notification, if the
CCO has not challenged the determination; or
(i) If the CCO challenges a determination by
the Authority, the notification by the Authority to the CCO that the Authority
has, after a hearing, rejected the challenge.
(2) In the event of a Regulatory Action Level
Event, the Authority may take some or all of the following actions:
(a) Require the CCO to prepare and submit an
RBC Plan or, if applicable, a revised RBC Plan.
(b) Perform such examination or analysis as
the Authority deems necessary of the assets, liabilities and operations of the
CCO including a review of its RBC Plan or revised RBC Plan.
(c) Subsequent to the examination or
analysis, issue a Corrective Order specifying such corrective actions as the
Authority shall determine are required.
(d) Prohibit or limit enrollments until
further notice.
(e) Require the CCO
to provide monthly financial statements.
(3) In determining corrective actions, the
Authority may take into account factors the Authority deems relevant with
respect to the CCO based upon the Authority's examination or analysis of the
assets, liabilities and operations of the CCO, 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:
(a) Within 30 days after the occurrence of
the Regulatory Action Level Event; or
(b) Within 30 days after the notification to
the CCO that the Authority has, after a hearing, rejected the CCO's
challenge.
(4) The
Authority may retain actuaries and investment experts and other consultants as
may be necessary in the judgment of the Authority to review the CCO's RBC Plan
or revised RBC Plan, examine or analyze the assets, liabilities and operations
(including contractual relationships) of the CCO and formulate a Corrective
Order with respect to the CCO. The fees, costs and expenses relating to
consultants shall be borne by the affected CCO or such other party as directed
by the Authority.
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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