Office of the Revisor of Statutes
Minnesota Session Laws - 1995, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 253-H.F.No. 673
An act relating to insurance; regulating risk-based
capital for insurers; enacting the model act of the
National Association of Insurance Commissioners;
amending Minnesota Statutes 1994, section 13.71, by
adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapter 60A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1994, section 13.71, is
amended by adding a subdivision to read:
Subd. 20. [RISK-BASED CAPITAL DATA.] Risk-based capital
reports and related reports, data, and orders maintained by the
commissioner of commerce are classified under section 60A.67.
Sec. 2. [60A.60] [DEFINITIONS.]
Subdivision 1. [SCOPE.] For the purposes of sections
60A.60 to 60A.696, the terms defined in this section have the
meanings given them.
Subd. 2. [ADJUSTED RISK-BASED CAPITAL REPORT.] "Adjusted
risk-based capital report" means a risk-based capital report
that has been adjusted by the commissioner according to section
60A.61, subdivision 5.
Subd. 3. [CORRECTIVE ORDER.] "Corrective order" means an
order issued by the commissioner specifying corrective actions
that the commissioner has determined are required.
Subd. 4. [DOMESTIC INSURER.] "Domestic insurer" means an
insurance company incorporated or organized in this state.
Subd. 5. [FOREIGN INSURER.] "Foreign insurer" means an
insurance company that is admitted to do business in this state
under section 60A.19 but is not incorporated or organized in
this state.
Subd. 6. [NAIC.] "NAIC" means the National Association of
Insurance Commissioners.
Subd. 7. [LIFE AND/OR HEALTH INSURER.] "Life and/or health
insurer" means an insurance company authorized to transact
business under section 60A.06, subdivision 1, clause (4), or a
property and casualty insurer transacting business only under
section 60A.06, subdivision 1, clause (5)(a).
Subd. 8. [PROPERTY AND CASUALTY INSURER.] "Property and
casualty insurer" means an insurance company authorized to
transact business under section 60A.06, subdivision 1, clauses
(1), (2), (3), (5), (6), (8), (9), (10), (11), (12), (13), (14),
and (15), but does not include monoline mortgage guaranty
insurers, and financial guaranty insurers.
Subd. 9. [NEGATIVE TREND.] "Negative trend" means, with
respect to a life and/or health insurer, negative trend over a
period of time, as determined according to the "trend test
calculation" included in the risk-based capital instructions.
Subd. 10. [RISK-BASED CAPITAL INSTRUCTIONS.] "Risk-based
instructions" means the risk-based capital report including
risk-based capital instructions adopted by the NAIC, as those
risk-based instructions may be amended by the NAIC from time to
time according to the procedures adopted by the NAIC.
Subd. 11. [RISK-BASED CAPITAL LEVEL.] "Risk-based capital
level" means an insurer's company action level risk-based
capital, regulatory action level risk-based capital, authorized
control level risk-based capital, or mandatory control level
risk-based capital where:
(1) "company action level risk-based capital" means, with
respect to an insurer, the product of 2.0 and its authorized
control level risk-based capital;
(2) "regulatory action level risk-based capital" means the
product of 1.5 and its authorized control level risk-based
capital;
(3) "authorized control level risk-based capital" means the
number determined under the risk-based capital formula according
to the risk-based capital instructions;
(4) "mandatory control level risk-based capital" means the
product of .70 and the authorized control level risk-based
capital.
Subd. 12. [RISK-BASED CAPITAL PLAN.] "Risk-based capital
plan" means a comprehensive financial plan containing the
elements specified in section 60A.62, subdivision 2. If the
commissioner rejects the risk-based capital plan, and it is
revised by the insurer, with or without the commissioner's
recommendation, the plan must be called the "revised risk-based
capital plan."
Subd. 13. [RISK-BASED CAPITAL REPORT.] "Risk-based capital
report" means the report required in section 60A.61.
Subd. 14. [TOTAL ADJUSTED CAPITAL.] "Total adjusted
capital" means the sum of:
(1) an insurer's statutory capital and surplus as
determined in accordance with statutory accounting applicable to
the annual statement required to be filed under section 60A.13;
and
(2) other items, if any, as the risk-based capital
instructions may provide.
Sec. 3. [60A.61] [RISK-BASED CAPITAL REPORTS.]
Subdivision 1. [GENERAL REQUIREMENTS.] Every domestic
insurer shall, on or before each March 1, prepare and submit to
the commissioner a report of its risk-based capital levels as of
the end of the calendar year just ended, in a form and
containing the information required by the risk-based capital
instructions. In addition, every domestic insurer shall file
its risk-based capital report:
(1) with the NAIC according to the risk-based capital
instructions; and
(2) with the insurance commissioner in a state in which the
insurer is authorized to do business, if the insurance
commissioner has notified the insurer of its request in writing,
in which case the insurer shall file its risk-based capital
report not later than the later of:
(i) 15 days from the receipt of notice to file its
risk-based capital report with that state; or
(ii) March 1.
Subd. 2. [LIFE AND/OR HEALTH INSURERS.] A life and/or
health insurer's risk-based capital must be determined according
to the formula set forth in the risk-based capital
instructions. The formula must take into account, and may
adjust for the covariance between:
(1) the risk with respect to the insurer's assets;
(2) the risk of adverse insurance experience with respect
to the insurer's liabilities and obligations;
(3) the interest rate risk with respect to the insurer's
business; and
(4) all other business risks and other relevant risks set
forth in the risk-based capital instructions;
determined in each case by applying the factors in the manner
set forth in the risk-based capital instructions.
Subd. 3. [PROPERTY AND CASUALTY INSURERS.] A property and
casualty insurer's risk-based capital must be determined
according to the formula set forth in the risk-based capital
instructions. The formula must take into account, and may
adjust for the covariance between:
(1) asset risk;
(2) credit risk;
(3) underwriting risk; and
(4) all other business risks and other relevant risks set
forth in the risk-based capital instructions;
determined in each case by applying the factors in the manner
set forth in the risk-based capital instructions.
Subd. 4. [MAINTAINING ADDITIONAL CAPITAL.] An excess of
capital over the amount produced by the risk-based capital
requirements contained in sections 60A.60 to 60A.696 and the
formulas, schedules, and instructions referenced in sections
60A.60 to 60A.696 is desirable in the business of insurance.
Accordingly, insurers should seek to maintain capital above the
risk-based capital levels required by sections 60A.60 to 60A.696.
Additional capital is used and useful in the insurance business
and helps to secure an insurer against various risks inherent
in, or affecting, the business of insurance and not accounted
for or only partially measured by the risk-based capital
requirements contained in sections 60A.60 to 60A.696.
Subd. 5. [ADJUSTED RISK-BASED CAPITAL REPORT.] If a
domestic insurer files a risk-based capital report that in the
judgment of the commissioner is inaccurate, then the
commissioner shall adjust the risk-based capital report to
correct the inaccuracy and shall notify the insurer of the
adjustment. The notice must contain a statement of the reason
for the adjustment. A risk-based capital report as so adjusted
is referred to as an "adjusted risk-based capital report."
Sec. 4. [60A.62] [COMPANY ACTION LEVEL EVENT.]
Subdivision 1. [DEFINITION.] "Company action level event"
means any of the following events:
(1) the filing of a risk-based capital report by an insurer
which indicates that:
(i) the insurer's total adjusted capital is greater than or
equal to its regulatory action level risk-based capital but less
than its company action level risk-based capital; or
(ii) if a life and/or health insurer, the insurer has total
adjusted capital that is greater than or equal to its company
action level risk-based capital but less than the product of its
authorized control level risk-based capital and 2.5 and has a
negative trend;
(2) the notification by the commissioner to the insurer of
an adjusted risk-based capital report that indicates an event in
clause (1), provided the insurer does not challenge the adjusted
risk-based report under section 60A.66; or
(3) if, pursuant to section 60A.66, an insurer challenges
an adjusted risk-based capital report that indicates the event
in clause (1), the notification by the commissioner to the
insurer that the commissioner has, after a hearing, rejected the
insurer's challenge.
Subd. 2. [PLAN.] In the event of a company action level
event, the insurer shall prepare and submit to the commissioner
a risk-based capital plan that:
(1) identifies the conditions that contribute to the
company action level event;
(2) contains proposals of corrective actions that the
insurer intends to take and would be expected to result in the
elimination of the company action level event;
(3) provides 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 projected
statutory balance sheets, income statements, and cash flow
statements. The projections for both new and renewal business
might include separate projections for each major line of
business and separately identify each significant income,
expense, and benefit component;
(4) identifies the key assumptions impacting the insurer's
projections and the sensitivity of the projections to the
assumptions; and
(5) identifies 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.
Subd. 3. [SUBMISSION.] The risk-based capital plan must be
submitted:
(1) within 45 days of the company action level event; or
(2) if the insurer challenges an adjusted risk-based
capital report pursuant to section 60A.66, within 45 days after
notification to the insurer that the commissioner has, after a
hearing, rejected the insurer's challenge.
Subd. 4. [NOTIFICATION BY COMMISSIONER.] 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 must 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 must set forth
the reasons for the determination, and may set forth proposed
revisions that 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, that may incorporate by
reference any revisions proposed by the commissioner, and shall
submit the revised risk-based capital plan to the commissioner:
(1) within 45 days after the notification from the
commissioner; or
(2) if the insurer challenges the notification from the
commissioner under section 60A.66, within 45 days after a
notification to the insurer that the commissioner has, after a
hearing, rejected the insurer's challenge.
Subd. 5. [UNSATISFACTORY PLAN.] In the event of a
notification by the commissioner to 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 section 60A.66, specify in the notification that
the notification constitutes a regulatory action level event.
Subd. 6. [FILINGS TO OTHER STATES.] 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:
(1) the state has a risk-based capital provision
substantially similar to section 60A.67, subdivision 1; and
(2) the insurance commissioner of that state has notified
the insurer of its request for the filing in writing, in which
case the insurer 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:
(i) 15 days after the receipt of notice to file a copy of
its risk-based capital plan or revised risk-based plan with the
state; or
(ii) the date on which the risk-based capital plan or
revised risk-based capital plan is filed under section 60A.62,
subdivisions 3 and 4.
Sec. 5. [60A.63] [REGULATORY ACTION LEVEL EVENT.]
Subdivision 1. [DEFINITION.] "Regulatory action level
event" means, with respect to an insurer, any of the following
events:
(1) the filing of a risk-based capital report by the
insurer that 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) the notification by the commissioner to an insurer of
an adjusted risk-based capital report that indicates the event
in clause (1), provided the insurer does not challenge the
adjusted risk-based capital report under section 60A.66;
(3) if, pursuant to section 60A.66, the insurer challenges
an adjusted risk-based capital report that indicates the event
in clause (1), the notification by the commissioner to the
insurer that the commissioner has, after a hearing, rejected the
insurer's challenge;
(4) the failure of the insurer to file a risk-based capital
report by March 1, unless the insurer has provided an
explanation for the failure that is satisfactory to the
commissioner and has cured the failure within ten days after
March 1;
(5) the failure of the insurer to submit a risk-based
capital plan to the commissioner within the time period set
forth in section 60A.62, subdivision 3;
(6) notification by the commissioner to the insurer that:
(i) the risk-based capital plan or revised risk-based
capital plan submitted by the insurer is, in the judgment of the
commissioner, unsatisfactory; and
(ii) the notification constitutes a regulatory action level
event with respect to the insurer, provided the insurer has not
challenged the determination under section 60A.66;
(7) if, pursuant to section 60A.66, the insurer challenges
a determination by the commissioner under clause (6), the
notification by the commissioner to the insurer that the
commissioner has, after a hearing, rejected the challenge;
(8) notification by the commissioner to the insurer that
the insurer has failed to adhere to its risk-based capital plan
or revised risk-based capital plan, but only if the failure has
a substantial adverse effect on the ability of the insurer to
eliminate the company action level event according to its
risk-based capital plan or revised risk-based capital plan and
the commissioner has so stated in the notification, provided the
insurer has not challenged the determination under section
60A.66; or
(9) if, pursuant to section 60A.66, the insurer challenges
a determination by the commissioner under clause (8), the
notification by the commissioner to the insurer that the
commissioner has, after a hearing, rejected the challenge.
Subd. 2. [COMMISSIONER'S DUTIES.] In the event of a
regulatory action level event, the commissioner shall:
(1) require the insurer to prepare and submit a risk-based
capital plan, or, if applicable, a revised risk-based capital
plan;
(2) examine or analyze as the commissioner considers
necessary the assets, liabilities, and operations of the insurer
including reviewing its risk-based capital plan or revised
risk-based capital plan; and
(3) subsequent to the examination or analysis, issue a
corrective order specifying the corrective actions the
commissioner determines are required.
Subd. 3. [CORRECTIVE ACTION.] In determining corrective
actions, the commissioner may take into account factors
considered relevant with respect to the insurer based upon the
commissioner's examination or analysis of the assets,
liabilities and operations of the insurer, including, but not
limited to, the results of any sensitivity tests undertaken
pursuant to the risk-based capital instructions. The risk-based
capital plan or revised risk-based capital plan must be
submitted:
(1) within 45 days after the occurrence of the regulatory
action level event;
(2) if the insurer challenges an adjusted risk-based
capital report pursuant to section 60A.66 and the challenge is
not frivolous in the judgment of the commissioner, within 45
days after the notification to the insurer that the commissioner
has, after a hearing, rejected the insurer's challenge; or
(3) if the insurer challenges a revised risk-based capital
plan pursuant to section 60A.66 and the challenge is not
frivolous in the judgment of the commissioner, within 45 days
after the notification to the insurer that the commissioner has,
after a hearing, rejected the insurer's challenge.
Subd. 4. [EXAMINATION AND REVIEW.] The commissioner may
retain actuaries and investment experts and other consultants as
may be necessary in the judgment of the commissioner 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 other party as directed by the commissioner.
Sec. 6. [60A.64] [AUTHORIZED CONTROL LEVEL EVENT.]
Subdivision 1. [DEFINITION.] "Authorized control level
event" means any of the following events:
(1) the filing of a risk-based capital report by the
insurer that indicates that the insurer's total adjusted capital
is greater than or equal to its mandatory control level
risk-based capital but less than its authorized control level
risk-based capital;
(2) the notification by the commissioner to the insurer of
an adjusted risk-based capital report that indicates the event
in clause (1), provided the insurer does not challenge the
adjusted risk-based capital report under section 60A.66;
(3) if, pursuant to section 60A.66, the insurer challenges
an adjusted risk-based capital report that indicates the event
in clause (1), notification by the commissioner to the insurer
that the commissioner has, after a hearing, rejected the
insurer's challenge;
(4) the failure of the insurer to respond, in a manner
satisfactory to the commissioner, to a corrective order,
provided the insurer has not challenged the corrective order
under section 60A.66; or
(5) if the insurer has challenged a corrective order under
section 60A.66 and the commissioner has, after a hearing,
rejected the challenge or modified the corrective order, the
failure of the insurer to respond, in a manner satisfactory to
the commissioner, to the corrective order subsequent to
rejection or modification by the commissioner.
Subd. 2. [COMMISSIONER'S DUTIES.] In the event of an
authorized control level event with respect to an insurer, the
commissioner shall:
(1) take the actions required under section 60A.63
regarding an insurer with respect to which a regulatory action
level event has occurred; or
(2) if the commissioner considers it to be in the best
interests of the policyholders and creditors of the insurer and
of the public, take the actions necessary to cause the insurer
to be placed under regulatory control under chapter 60B. In the
event the commissioner takes these actions, the authorized
control level event is considered sufficient grounds for the
commissioner to take action under chapter 60B, and the
commissioner has the rights, powers, and duties with respect to
the insurer set forth in chapter 60B. In the event the
commissioner takes actions under this clause pursuant to an
adjusted risk-based capital report, the insurer is entitled to
the protections afforded to insurers under section 60B.11
pertaining to summary proceedings.
Sec. 7. [60A.65] [MANDATORY CONTROL LEVEL EVENT.]
Subdivision 1. [DEFINITION.] "Mandatory control level
event" means any of the following events:
(1) the filing of a risk-based capital report that
indicates that the insurer's total adjusted capital is less than
its mandatory control level risk-based capital;
(2) notification by the commissioner to the insurer of an
adjusted risk-based capital report that indicates the event in
clause (1), provided the insurer does not challenge the adjusted
risk-based capital report under section 60A.66; or
(3) if, pursuant to section 60A.66, the insurer challenges
an adjusted risk-based capital report that indicates the event
in clause (1), notification by the commissioner to the insurer
that the commissioner has, after a hearing, rejected the
insurer's challenge.
Subd. 2. [COMMISSIONER'S DUTIES.] In the event of a
mandatory control level event:
(1) with respect to a life and/or health insurer, the
commissioner shall take the actions necessary to place the
insurer under regulatory control under chapter 60B. In that
event, the mandatory control level event is considered
sufficient grounds for the commissioner to take action under
chapter 60B, and the commissioner has the rights, powers, and
duties with respect to the insurer set forth in chapter 60B. If
the commissioner takes actions pursuant to an adjusted
risk-based capital report, the insurer is entitled to the
protections of section 60B.11 pertaining to summary
proceedings. However, the commissioner may forego action for up
to 90 days after the mandatory control level event if the
commissioner finds there is a reasonable expectation that the
mandatory control level event may be eliminated within the
90-day period; and
(2) with respect to a property and casualty insurer, the
commissioner shall take the actions necessary to place the
insurer under regulatory control under chapter 60B, or, in the
case of an insurer that is writing no business and that is
running off its existing business, may allow the insurer to
continue its run-off under the supervision of the commissioner.
In either event, the mandatory control level event is sufficient
grounds for the commissioner to take action under chapter 60B,
and the commissioner has the rights, powers, and duties with
respect to the insurer set forth in chapter 60B. If the
commissioner takes actions pursuant to an adjusted risk-based
capital report, the insurer is entitled to the protections of
section 60B.11 pertaining to summary proceedings. However, the
commissioner may forego action for up to 90 days after the
mandatory control level event if the commissioner finds there is
a reasonable expectation that the mandatory control level event
may be eliminated within the 90-day period.
Sec. 8. [60A.66] [HEARINGS.]
Upon:
(1) notification to an insurer by the commissioner of an
adjusted risk-based report;
(2) notification to an insurer by the commissioner that:
(i) the insurer's risk-based capital plan or revised
risk-based capital plan is unsatisfactory; and
(ii) the notification constitutes a regulatory action level
event with respect to the insurer;
(3) notification to an insurer by the commissioner that the
insurer has failed to adhere to its risk-based capital plan or
revised risk-based capital plan and that the failure has
substantial adverse effect on the ability of the insurer to
eliminate the company action level event with respect to the
insurer according to its risk-based capital plan or revised
risk-based capital plan; or
(4) notification to an insurer by the commissioner of a
corrective order with respect to the insurer,
the insurer has the right to a confidential hearing conducted in
accordance with chapter 14, on a record, at which the insurer
may challenge any determination or action by the commissioner.
The insurer shall notify the commissioner of its request for a
hearing within five days after the notification by the
commissioner under clause (1), (2), (3), or (4). Upon receipt
of the insurer's request for a hearing, the commissioner shall
set a date for the hearing no less than ten nor more than 30
days after the date of the insurer's request.
Sec. 9. [60A.67] [CONFIDENTIALITY.]
Subdivision 1. [GENERALLY.] All risk-based capital
reports, to the extent the information in them is not required
to be set forth in a publicly available annual statement
schedule, and risk-based capital plans, including the results or
report of an examination or analysis of an insurer performed
pursuant to sections 60A.60 to 60A.696, and any corrective order
issued by the commissioner pursuant to an examination or
analysis, with respect to a domestic insurer or foreign insurer
that are filed with the commissioner constitute information that
might be damaging to the insurer if made available to its
competitors, and shall be maintained by the commissioner as
nonpublic data as defined in section 13.02, subdivision 9. This
information is not subject to subpoena, other than by the
commissioner and then only for the purpose of enforcement
actions taken by the commissioner pursuant to sections 60A.60 to
60A.696 or other provision of the insurance laws of this state.
Subd. 2. [PROHIBITION ON ANNOUNCEMENTS.] The comparison of
an insurer's total adjusted capital to any of its risk-based
capital levels is a regulatory tool that may indicate the need
for possible corrective action with respect to the insurer and
is not intended as a means to rank insurers generally. Except
as otherwise required under sections 60A.60 to 60A.696, the
making, publishing, dissemination, circulating, or placing
before the public, or causing, directly or indirectly to be
made, published, disseminated, circulated, or placed before the
public, in a newspaper, magazine, or other publication, or in
the form of a notice, circular, pamphlet, letter, or poster, or
over any radio or television station, or in any other way, an
advertisement, announcement, or statement containing an
assertion, representation, or statement with regard to the
risk-based capital levels of an insurer, or of any component
derived in the calculation, by an insurer, agent, broker, or
other person engaged in any manner in the insurance business
would be misleading and is prohibited. However, if a materially
false statement with respect to the comparison regarding an
insurer's total adjusted capital to its risk-based capital
levels, or any of them, or an inappropriate comparison of any
other amount to the insurer's risk-based capital levels is
published in a written publication and the insurer is able to
demonstrate to the commissioner with substantial proof the
falsity of the statement, or the inappropriateness, as the case
may be, then the insurer may publish an announcement in a
written publication if the sole purpose of the announcement is
to rebut the materially false statement.
Subd. 3. [PROHIBITION ON USE IN RATEMAKING.] The
risk-based capital instructions, risk-based capital reports,
adjusted risk-based capital reports, risk-based capital plans,
and revised risk-based capital plans are intended solely for use
by the commissioner in monitoring the solvency of insurers and
the need for possible corrective action with respect to insurers.
This information shall not be used by the commissioner for
ratemaking nor considered or introduced as evidence in a rate
proceeding nor used by the commissioner to calculate or derive
any elements of an appropriate premium level or rate of return
for a line of insurance that an insurer or an affiliate is
authorized to write.
Sec. 10. [60A.68] [SUPPLEMENTAL PROVISIONS; RULES;
EXEMPTION.]
(a) Sections 60A.60 to 60A.696 are supplemental to other
laws of this state and do not preclude or limit other powers or
duties of the commissioner under those laws, including, but not
limited to, chapters 60B and 60G.
(b) The commissioner may exempt from the application of
sections 60A.60 to 60A.696 a domestic property and casualty
insurer that:
(1) writes direct business only in this state;
(2) writes direct annual premiums of $2,000,000 or less;
and
(3) assumes no reinsurance in excess of five percent of
direct premium written.
Sec. 11. [60A.69] [FOREIGN INSURERS.]
Subdivision 1. [REPORTING REQUIREMENTS.] A foreign insurer
shall, upon the written request of the commissioner, submit to
the commissioner a risk-based capital report as of the end of
the calendar year just ended not later than the later of:
(1) the date a risk-based capital report would be required
to be filed by a domestic insurer under sections 60A.60 to
60A.696; or
(2) fifteen days after the request is received by the
foreign insurer.
A foreign insurer shall, at the written request of the
commissioner, promptly submit to the commissioner copies of all
risk-based capital plans that are filed by the insurer with the
insurance commissioners of other states.
Subd. 2. [A RISK-BASED CAPITAL PLAN REQUIREMENT.] In the
event of a company action level event, regulatory action level
event, or authorized control level event with respect to a
foreign insurer as determined under the risk-based capital
statute applicable in the state of domicile of the insurer, or,
if no risk-based capital statute is in force in that state,
under sections 60A.60 to 60A.696, if the insurance commissioner
of the state of domicile of the foreign insurer fails to require
the foreign insurer to file a risk-based capital plan in the
manner specified under that state's risk-based capital statute,
or, if no risk-based capital statute is in force in that state,
under section 60A.62, the commissioner may require the foreign
insurer to file a risk-based capital plan with the
commissioner. In this event, the failure of the foreign insurer
to file a risk-based capital plan with the commissioner shall be
grounds to order the insurer to cease and desist from writing
new insurance business in this state. This section does not
limit the commissioner's authority to require a foreign insurer
to file a copy of the risk-based capital plan submitted to the
commissioner in the state of domicile.
Subd. 3. [LIQUIDATION OF PROPERTY.] In the event of a
mandatory control level event with respect to a foreign insurer,
if no domiciliary receiver has been appointed with respect to
the foreign insurer under the rehabilitation and liquidation
statute applicable in the state of domicile of the foreign
insurer, the commissioner may make application to the district
court permitted under chapter 60B with respect to the
liquidation of property of foreign insurers found in this state,
and the occurrence of the mandatory control level event is
adequate grounds for the application.
Sec. 12. [60A.695] [IMMUNITY.]
There is no liability on the part of, and no cause of
action arises against, the commissioner or the commerce
department or its employees or agents for an action taken by
them in the performance of their powers and duties under
sections 60A.60 to 60A.696.
Sec. 13. [60A.696] [NOTICES.]
All notices by the commissioner to an insurer that may
result in regulatory action under sections 60A.60 to 60A.696 are
effective upon dispatch if transmitted by registered or
certified mail, or in the case of other transmission is
effective upon the insurer's receipt of the notice.
Sec. 14. [EFFECTIVE DATE.]
This act is effective for annual statements filed after
January 1, 1996.
Presented to the governor May 23, 1995
Signed by the governor May 25, 1995, 8:52 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes