2005 Minnesota Statutes

     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. 

    HIST: 1995 c 253 s 7