A. As used in the Risk-Based Capital Act, a “company action level event” means any of the following events:

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(1)     the filing of a risk-based capital report by an insurer or health organization that indicates:

(a) that the insurer or health organization has total adjusted capital greater than or equal to its regulatory action level risk-based capital but less than its company action level risk-based capital;

(b) in the case of a life or health insurer or fraternal benefit society, that the insurer has total adjusted capital greater than or equal to its company action level risk- based capital but less than three hundred percent of its authorized control level risk- based capital and has a negative trend;

(c) in the case of a property and casualty insurer, that the insurer has total adjusted capital greater than or equal to its company action level risk-based capital but less than three hundred percent of its authorized control level risk-based capital and triggers the trend test determined in accordance with the trend test calculation included in the property and casualty risk-based capital instructions; or

(d) in the case of a health organization, that the health organization has total adjusted capital greater than or equal to its company action level risk-based capital but less than three hundred percent of its authorized control level risk-based capital and triggers the trend test determined in accordance with the trend test calculation included in the health risk-based capital instructions;

(2)     the superintendent’s notification to an insurer or health organization that its adjusted risk-based capital report indicates the existence of an event described in Paragraph (1) of this subsection, unless the insurer or health organization challenges the adjusted report pursuant to Section 59A-5A-8 N.M. Stat. Ann.; or

(3)     if an insurer or health organization challenges the adjusted risk-based capital report, notification to the insurer or health organization that the superintendent has, after hearing, rejected the challenge.

B. In the event of a company action level event, the insurer or health organization shall prepare and submit to the superintendent a risk-based capital plan, which shall:

(1)     identify the conditions that contribute to the company action level event; (2)     contain proposals of corrective actions that the insurer or health organization intends to take to eliminate the company action level event;

(3)     provide projections of the insurer’s or health organization’s expected financial results in the current year and at least the four succeeding years, both in the absence of and giving effect to the proposed corrective actions, including projections of statutory operating income, net income, capital and surplus. Projections for new and renewal business may, if appropriate, include separate projections for each major line of business and separately identify each significant income, expense and benefit component;

(4)     identify the key assumptions impacting the insurer’s or health organization’s projections and the sensitivity of the projections to the assumptions; and

(5)     identify the quality of, and problems associated with, the insurer’s or health organization’s business, including 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.

C. The risk-based capital plan shall be submitted on or before the later of the following dates:

(1)     forty-five days after the company action level event; or

(2)     if the insurer or health organization challenges the adjusted risk-based capital report pursuant to Section 59A-5A-8 N.M. Stat. Ann., forty-five days after the date of the notification to the insurer or health organization that the superintendent has, after hearing, rejected the insurer’s or health organization’s challenge.

D. Within sixty days after the submission of an insurer’s or health organization’s risk- based capital plan, the superintendent shall notify the insurer or health organization whether the plan shall be implemented or is, in the superintendent’s judgment, unsatisfactory. If the superintendent determines that the risk-based capital plan is unsatisfactory, the notification to the insurer or health organization shall set forth the reasons for the determination and may set forth proposed revisions that will render the plan satisfactory. Upon notification, the insurer or health organization shall prepare a revised risk-based capital plan, which may incorporate by reference any revisions proposed by the superintendent, and shall submit the revised plan to the superintendent. The revised plan shall be submitted on or before the last of the following dates:

(1)     forty-five days after the date of the superintendent’s notification; or

(2)     if the insurer or health organization challenges the notification pursuant to Section 59A-5A-8 N.M. Stat. Ann., forty-five days after the date of the notification to the insurer or health organization that the superintendent has, after hearing, rejected the insurer’s or health organization’s challenge.

E. A notification that the insurer’s or health organization’s risk-based capital plan or revised risk-based capital plan is unsatisfactory may include a statement that the notification constitutes a regulatory action level event, subject to the insurer’s or health organization’s right to a hearing pursuant to Section 59A-5A-8 N.M. Stat. Ann..

F. Every domestic insurer or health organization that files a risk-based capital plan or revised risk-based capital plan with the superintendent shall file a copy of the risk- based capital plan and any revised risk-based capital plan with the insurance commissioner of each state in which the insurer or health organization is authorized to do business if:

(1)     the state has confidentiality provisions substantially similar to those in Subsection A of Section 59A-5A-9 N.M. Stat. Ann.; and

(2)     the insurance commissioner for that state has notified the insurer or health organization of the request in writing. The insurer or health organization shall file a copy of the risk-based capital plan or revised risk-based capital plan with each commissioner on or before the later of the following dates:

(a) fifteen days after the receipt of notice to file a copy of its risk-based capital plan or revised risk-based capital plan with the state; or

(b) the date that the risk-based capital plan or revised risk-based capital plan is filed under Subsections C and D of this section.