Wis. Admin. Code Office of the Commissioner of Insurance § Ins 51.15 - Company action event

Current through March 28, 2022

(1) If a company action level event occurs, the insurer shall prepare and submit to the commissioner a risk based capital plan which shall include all of the following:
(a) Identification of the conditions which contribute to the company action level event.
(b) Proposals of corrective actions which the insurer intends to take and would be expected to result in the elimination of the company action level event.
(c) Projections of the insurer's financial results in the current year and at least the four succeeding years, both in the absence of proposed corrective actions and giving effect to the proposed corrective actions, including projections of statutory operating income, net income, capital or surplus or both. The projections for both new and renewal business shall include separate projections for each major line of business and separately identify each significant income, expense and benefit component, if appropriate.
(d) Identification of the key assumptions impacting the insurer's projections and the sensitivity of the projections to the assumptions.
(e) Discussion of the quality of, and problems associated with, the insurer'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, in each case.
(f) Such other information as is requested by the commissioner.
(2) The risk based capital plan required under this section shall be submitted:
(a) Within 45 days of the company action level event; or
(b) If the insurer challenges an adjusted risk based capital report under s. Ins 51.50, within 45 days after notification to the insurer that the commissioner has, after a hearing, rejected the insurer's challenge.
(3) Within 60 days after the submission by an insurer of a risk based capital plan to the commissioner, the commissioner shall notify the insurer whether the risk based capital plan shall be implemented or is, in the judgment of the commissioner, unsatisfactory. If the commissioner determines the risk based capital plan is unsatisfactory, the notification to the insurer shall set forth the reasons for the determination, and may set forth proposed revisions which will render the risk based capital plan satisfactory, in the judgment of the commissioner. Upon notification from the commissioner, the insurer shall prepare a revised risk based capital plan, which may incorporate by reference any revisions proposed by the commissioner, and shall submit the revised risk based capital plan to the commissioner:
(a) Within 45 days after the notification from the commissioner; or
(b) If the insurer challenges the notification from the commissioner under s. Ins 51.50, within 45 days after a notification to the insurer that the commissioner has, after a hearing, rejected the insurer's challenge.
(4) If the commissioner notifies an insurer that the insurer's risk based capital plan or revised risk based capital plan is unsatisfactory, the commissioner may at the commissioner's discretion, subject to the insurer's right to a hearing under s. Ins 51.50, specify in the notification that the notification constitutes a regulatory action level event.
(5) Every domestic insurer that files a risk based capital plan or revised risk based capital plan with the commissioner shall file a copy of the risk based capital plan or revised risk based capital plan with the insurance commissioner in any state in which the insurer is authorized to do business if:
(a) Such state has a risk based capital provision substantially similar to s. Ins 51.50(1); and
(b) The insurance commissioner of that state has notified the insurer of its request for the filing in writing.
(6) If an insurer is required to file a risk based capital plan or revised risk based capital plan under sub. (5) in a state it shall file a copy of the risk based capital plan or revised risk based capital plan in that state no later than the later of the following:
(a) Fifteen days after the receipt of notice to file a copy of its risk based capital plan or revised risk based capital plan with the state.
(b) The date on which the risk based capital plan or revised risk based capital plan is filed under s. Ins 51.15(2) or (3).

Notes

Wis. Admin. Code Office of the Commissioner of Insurance § Ins 51.15
Cr. Register, December, 1996, No. 492, eff. 1-1-97.

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