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

Or. Admin. R. 410-141-5210
DMAP 59-2019, adopt filed 12/18/2019, effective 1/1/2020

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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