Montana Code 33-2-1907. Mandatory control level event
33-2-1907. Mandatory control level event. (1) “Mandatory control level event” means any of the following events:
Terms Used In Montana Code 33-2-1907
- Health organization: means a health maintenance organization or other managed care organization licensed under Title 33, chapter 31. See Montana Code 33-2-1902
- Insurer: includes life or other disability insurers, property and casualty insurers, and health organizations. See Montana Code 33-2-1902
- Life or disability insurer: means :
(a)any insurance company licensed under 33-2-116 and engaged in the business of entering into contracts of disability insurance, as described in 33-1-207, or life insurance, as described in 33-1-208;
(b)a licensed property and casualty insurer writing only disability insurance;
(c)any insurer engaged solely in the business of reinsurance of life or disability contracts;
(d)a fraternal benefit society formed under Title 33, chapter 7; or
(e)a health service corporation formed under Title 33, chapter 30. See Montana Code 33-2-1902
- Property and casualty insurer: means :
(i)any insurance company licensed under 33-2-116 and engaged in the business of entering into contracts of property insurance, as described in 33-1-210, or casualty insurance, as described in 33-1-206;
(ii)any insurance company engaged solely in the business of reinsurance of property and casualty contracts; or
(iii)any insurance company engaged in the business of surety and marine insurance. See Montana Code 33-2-1902
- RBC report: means the report required in 33-2-1903. See Montana Code 33-2-1902
- Total adjusted capital: means the sum of:
(a)an insurer's statutory capital and surplus; and
(b)other items, if any, as the RBC instructions may provide. See Montana Code 33-2-1902
- Writing: includes printing. See Montana Code 1-1-203
(a)the filing of an RBC report that indicates that the insurer‘s total adjusted capital is less than its mandatory control level RBC;
(b)notification by the commissioner to the insurer of an adjusted RBC report that indicates the event in subsection (1)(a) if the insurer does not challenge the adjusted RBC report under 33-2-1908 or the commissioner rejects the insurer’s challenge.
(2)In the event of a mandatory control level event:
(a)with respect to a life or disability insurer or a health organization, the commissioner shall take the actions that are necessary to place the insurer under regulatory control under Title 33, chapter 2, part 13. In that event, the mandatory control level event must be considered sufficient grounds for the commissioner to take action under Title 33, chapter 2, part 13, and the commissioner shall have the rights, powers, and duties with respect to the insurer as are set forth in Title 33, chapter 2, part 13. If the commissioner takes an action pursuant to an adjusted RBC report, the insurer is entitled to the protections of 33-2-1321 through 33-2-1323 pertaining to summary proceedings. Notwithstanding any of the foregoing, the commissioner may forego action for up to 90 days after the mandatory control level event if the commissioner finds that there is a reasonable expectation that the mandatory control level event may be eliminated within the 90-day period.
(b)with respect to a property and casualty insurer, the commissioner shall take the actions necessary to place the insurer under regulatory control under Title 33, chapter 2, part 13, or, in the case of an insurer that is not writing business and that is running-off its existing business, may allow the insurer to continue its runoff under the supervision of the commissioner. In either event, the mandatory control level event must be considered sufficient grounds for the commissioner to take action under Title 33, chapter 2, part 13, and the commissioner shall have the rights, powers, and duties with respect to the insurer as are set forth in Title 33, chapter 2, part 13. If the commissioner takes an action pursuant to an adjusted RBC report, the insurer is entitled to the protections of 33-2-1321 through 33-2-1323 pertaining to summary proceedings. Notwithstanding any of the foregoing, 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.