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The Vermont Statutes Online

 

Title 8 : Banking and Insurance

Chapter 159 : RISK BASED CAPITAL FOR INSURERS

(Cite as: 8 V.S.A. § 8304)
  • § 8304. Regulatory action level event

    (a) The following are deemed to be regulatory action level events and subject to the requirements of this section:

    (1) A risk based capital report or final adjusted risk based capital report which indicates that the insurer's total adjusted capital is greater than or equal to its authorized control level risk based capital, but less than its regulatory action level risk based capital.

    (2) Late filing of a risk based capital report that is not excused by the Commissioner and cured within 10 days of the filing date.

    (3) Failure to file a risk based capital plan within the time provided in section 8303 of this title.

    (4) Notice by the Commissioner that a plan submitted by the insurer under section 8303 of this title is disapproved and that the disapproval has been deemed by the Commissioner as constituting a regulatory action level event.

    (5) Notice by the Commissioner of a failure to adhere to its risk based capital plan or revised risk based capital plan where the failure has a substantial adverse effect on the ability of the insurer to eliminate the regulatory action level event in accordance with its plan.

    (b) An insurer shall prepare and submit to the Commissioner a risk based capital plan within 45 days of filing a risk based capital report or within 45 days of notice of a final adjusted risk based capital report showing a regulatory action level event.

    (c) The Commissioner shall order such examination and analysis as the Commissioner deems necessary of the assets, liabilities, and operations of the insurer including a review of its risk based capital plan or revised risk based capital plan. Subsequent to the examination or analysis, the Commissioner shall issue an order specifying such corrective actions as the Commissioner shall determine are required. In determining corrective actions, the Commissioner may take into account the results of any examination and analysis of the insurer's assets, liabilities, and operations, including any sensitivity test undertaken pursuant to the risk based capital instructions.

    (d) The Commissioner may retain actuaries, investment experts, and other consultants as the Commissioner deems necessary to review the insurer's risk based capital plan or revised risk based capital plan, examine or analyze the assets, liabilities, and operations of the insurer, and formulate the corrective order with respect to the insurer. The fees, costs, and expenses relating to consultants shall be borne by the affected insurer or such other party as directed by the Commissioner. (Added 1993, No. 235 (Adj. Sess.), § 8, eff. June 21, 1994.)