(a) “Authorized control level event” means any of the following events:

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Terms Used In Hawaii Revised Statutes 431:3-405

  • Adjusted risk-based capital report: means a risk-based capital report that has been adjusted by the commissioner in accordance with section 431:3-402(f). See Hawaii Revised Statutes 431:3-401
  • Authorized control level risk-based capital: means , with respect to any insurer, the number determined under the risk-based capital formula in accordance with the risk-based capital instructions; and

    (4) "Mandatory control level risk-based capital" means, with respect to any insurer, the product of 0. See Hawaii Revised Statutes 431:3-401

  • Corrective order: means an order issued by the commissioner specifying corrective actions which the commissioner has determined are required. See Hawaii Revised Statutes 431:3-401
(1) The filing of a risk-based capital report by the insurer which 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 occurrence of the event in paragraph (1), if the insurer does not challenge the adjusted risk-based capital report under § 431:3-407;
(3) If, pursuant to § 431:3-407, the insurer challenges an adjusted risk-based capital report that indicates the occurrence of the event in paragraph (1), notification by the commissioner to the insurer that the commissioner, after a hearing, has 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 § 431:3-407; or
(5) If the insurer has challenged a corrective order under § 431:3-407 and the commissioner, after a hearing, has 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.
(b) In the event of an authorized control level event with respect to an insurer, the commissioner shall:

(1) Take any actions that are required under § 431:3-404 regarding an insurer with respect to which a regulatory action level event has occurred; or
(2) If the commissioner deems it to be in the best interests of the policyholders and creditors of the insurer and of the public, take any actions that are necessary to cause the insurer to be placed under regulatory control under article 15. In the event the commissioner takes such actions, the authorized control level event shall be deemed sufficient grounds for the commissioner to take action under article 15, and the commissioner shall have the rights, powers, and duties with respect to the insurer as are set forth in article 15. In the event the commissioner takes actions under this paragraph pursuant to an adjusted risk-based capital report, the insurer shall be entitled to the protections that are afforded to insurers under the provisions of section 431:15-201.
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