NAC681B.510. Identification of events.

The following constitute events that require regulatory action:

     1. The filing by an insurer of a report on risk-based capital which indicates that the total adjusted capital of the insurer is equal to or greater than its authorized control level of risk-based capital but less than its regulatory action level of risk-based capital;

     2. Notification by the Commissioner to an insurer that the Commissioner has adjusted a report on risk-based capital of the insurer in accordance with NAC 681B.485 and that the adjusted report indicates a situation described in subsection 1, except that if the insurer challenges the adjustment pursuant to NAC 681B.580, the event that requires regulatory action is the notification by the Commissioner to the insurer that the Commissioner has, after a hearing, rejected the challenge of the insurer;

     3. Failure of an insurer to file a report on risk-based capital by the filing date, unless the insurer has provided an explanation satisfactory to the Commissioner for its failure to file the report timely and has cured the failure within 10 days after the prescribed filing date;

     4. Failure of an insurer to submit a required plan or revised plan for risk-based capital within the time prescribed in NAC 681B.495 and 681B.500;

     5. Notification by the Commissioner to an insurer that a plan or revised plan for risk-based capital submitted pursuant to NAC 681B.495 or 681B.500, as appropriate, is unsatisfactory in the judgment of the Commissioner and that the notification constitutes an event that requires regulatory action, except that if the insurer, pursuant to NAC 681B.580, challenges the determination of the Commissioner that the plan or revised plan for risk-based capital is unsatisfactory, the event that requires regulatory action is the notification by the Commissioner to the insurer that the Commissioner has, after a hearing, rejected the challenge of the insurer; or

     6. Notification by the Commissioner to an insurer that the Commissioner has determined that the insurer has failed to adhere to its plan or revised plan for risk-based capital submitted pursuant to NAC 681B.495 or 681B.500, as appropriate, and that the failure has had a substantial adverse effect on the ability of the insurer to eliminate the event that requires company action in accordance with its plan or revised plan for risk-based capital, except that if the insurer challenges the determination pursuant to NAC 681B.580, the event that requires regulatory action is the notification by the Commissioner to the insurer that the Commissioner has, after a hearing, rejected the challenge of the insurer.

     (Added to NAC by Comm’r of Insurance by R088-97, eff. 3-19-98)