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§ 221.6-A. Company action level event

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 40 P.S. Insurance

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 40 P.S. Insurance (Refs & Annos)
Chapter 1. Insurance Department (Refs & Annos)
Article V-a. Risk-Based Capital Requirements (Refs & Annos)
40 P.S. § 221.6-A
§ 221.6-A. Company action level event
Currentness
(a) In the event of a company action level event, the insurer shall prepare and submit to the commissioner an RBC plan that shall include, at a minimum, all of the following:
(1) Identification of the conditions that contribute to the company action level event.
(2) Proposals of corrective actions that the insurer intends to take and that would be expected to result in the elimination of the company action level event.
(3) Projections of the insurer's financial results for 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 and surplus. Projections for both new and renewal business may include separate projections for each major line of business and separately identify each significant income, expense and benefit component.
(4) Identification of the key assumptions impacting the insurer's projections and the sensitivity of the projections to the assumptions.
(5) Identification 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.
(b) The RBC plan required under this section shall be submitted within forty-five days after the occurrence of the company action level event.
(c) Within sixty days after the submission by an insurer of an RBC plan to the commissioner, the commissioner shall notify the insurer whether the RBC plan shall be implemented or whether the RBC plan is, in the judgment of the commissioner, unsatisfactory. If the commissioner determines the RBC plan is unsatisfactory, the notification to the insurer shall set forth the reasons for the determination and may set forth proposed revisions that will render the RBC plan satisfactory in the judgment of the commissioner.
(d) Upon notification from the commissioner of a determination that the RBC plan is unsatisfactory, the insurer shall prepare a revised RBC plan which may incorporate by reference any revisions proposed by the commissioner and, unless the commissioner has taken action under subsection (e), shall submit the revised RBC plan to the commissioner within forty-five days after the notification from the commissioner.
(e) In the event of a notification by the commissioner to an insurer that the insurer's RBC plan or revised RBC plan is unsatisfactory, the commissioner may specify in the notification that the notification constitutes a regulatory action level event or take action as necessary to place the insurer under regulatory control under Article V.1
(f) Every domestic insurer that files an RBC plan or revised RBC plan with the commissioner shall file a copy of the RBC plan or revised RBC plan with the chief insurance regulatory official in any jurisdiction in which the insurer is authorized to do business if:
(1) The jurisdiction has an RBC provision substantially similar to section 512-A(a) and (b).2
(2) The chief insurance regulatory official of that jurisdiction has notified the insurer of his request for the filing in writing, in which case the insurer shall file a copy of the RBC plan or revised RBC plan in that jurisdiction no later than the later of:
(i) fifteen days after the receipt of notice to file a copy of its RBC plan or revised RBC plan with the jurisdiction; or
(ii) the date on which the RBC plan or revised RBC plan is filed under this section.

Credits

1921, May 17, P.L. 789, No. 285, § 506-A, added 1997, June 25, P.L. 349, No. 40, § 1, imd. effective.

Footnotes

1
40 P.S. § 201 et seq. (repealed); see 40 P.S. § 221.1 et seq.
2
40 P.S. § 221.12-A(a) and (b).
40 P.S. § 221.6-A, PA ST 40 P.S. § 221.6-A
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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