2006 Minnesota Statutes

60A.53 REGULATORY ACTION LEVEL EVENT.
    Subdivision 1. Definition. "Regulatory action level event" means, with respect to a health
organization, any of the following events:
(1) the filing of an RBC report by the health organization that indicates that the health
organization's total adjusted capital is greater than or equal to its authorized control level RBC
but less than its regulatory action level RBC;
(2) notification by the commissioner to a health organization of an adjusted RBC report that
indicates the event in clause (1), provided the health organization does not challenge the adjusted
RBC report under section 60A.56;
(3) if, pursuant to section 60A.56, the health organization challenges an adjusted RBC
report that indicates the event in clause (1), the notification by the commissioner to the health
organization that the commissioner has, after a hearing, rejected the health organization's
challenge;
(4) the failure of the health organization to file an RBC report by the filing date, unless
the health organization has provided an explanation for the failure that is satisfactory to the
commissioner and has cured the failure within ten days after the filing date;
(5) the failure of the health organization to submit an RBC plan to the commissioner within
the time period set forth in section 60A.52, subdivision 3;
(6) notification by the commissioner to the health organization that:
(i) the RBC plan or revised RBC plan submitted by the health organization is, in the
judgment of the commissioner, unsatisfactory; and
(ii) notification constitutes a regulatory action level event with respect to the health
organization, provided the health organization has not challenged the determination under
section 60A.56;
(7) if, pursuant to section 60A.56, the health organization challenges a determination by the
commissioner under clause (6), the notification by the commissioner to the health organization
that the commissioner has, after a hearing, rejected the challenge;
(8) notification by the commissioner to the health organization that the health organization
has failed to adhere to its RBC plan or revised RBC plan, but only if the failure has a substantial
adverse effect on the ability of the health organization to eliminate the company action level
event in accordance with its RBC plan or revised RBC plan and the commissioner has so stated
in the notification, provided the health organization has not challenged the determination under
section 60A.50; or
(9) if, pursuant to section 60A.56, the health organization challenges a determination by the
commissioner under clause (8), the notification by the commissioner to the health organization
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 health organization to prepare and submit an RBC plan or, if applicable,
a revised RBC plan;
(2) perform any examination or analysis the commissioner considers necessary of the
assets, liabilities, and operations of the health organization, including a review of its RBC plan
or revised RBC plan; and
(3) after the examination or analysis, issue a corrective order specifying the corrective
actions the commissioner determines are required.
    Subd. 3. Corrective actions. In determining corrective actions, the commissioner may take
into account factors the commissioner considers relevant with respect to the health organization
based upon the commissioner's examination or analysis of the assets, liabilities, and operations of
the health organization, including, but not limited to, the results of any sensitivity tests undertaken
pursuant to the RBC instructions. The RBC plan or revised RBC plan must be submitted:
(1) within 45 days after the occurrence of the regulatory action level event;
(2) if the health organization challenges an adjusted RBC report pursuant to section 60A.56
and the challenge is not frivolous in the judgment of the commissioner within 45 days after the
notification to the health organization that the commissioner has, after a hearing, rejected the
health organization's challenge; or
(3) if the health organization challenges a revised RBC plan pursuant to section 60A.56
and the challenge is not frivolous in the judgment of the commissioner, within 45 days after
the notification to the health organization that the commissioner has, after a hearing, rejected
the health organization's challenge.
    Subd. 4. Consultants. The commissioner may retain actuaries and investment experts and
other consultants as may be necessary in the judgment of the commissioner to review the health
organization's RBC plan or revised RBC plan, examine or analyze the assets, liabilities, and
operations, including contractual relationships, of the health organization and formulate the
corrective order with respect to the health organization. The fees, costs, and expenses relating
to consultants must be borne by the affected health organization or such other party as directed
by the commissioner.
History: 2004 c 285 art 1 s 4