(a)  “Authorized control level event” means 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 mandatory control level RBC but less than its authorized control level RBC;

(2)  The notification by the commissioner to the health organization of an adjusted RBC report that indicates the event in subdivision (a)(1) of this section, provided the health organization does not challenge the adjusted RBC report under § 27-4.7-8;

(3)  If, pursuant to § 27-4.7-8, the health organization challenges an adjusted RBC report that indicates the event in subdivision (a)(1) of this section, 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 respond, in a manner satisfactory to the commissioner, to a corrective order (provided the health organization has not challenged the corrective order under § 27-4.7-8); or

(5)  If the health organization has challenged a corrective order under § 27-4.7-8 and the commissioner has, after a hearing, rejected the challenge or modified the corrective order, the failure of the health organization to respond, in a manner satisfactory to the commissioner, to the corrective order subsequent to rejection or modification by the commissioner.

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Terms Used In Rhode Island General Laws 27-4.7-6

  • Corrective order: means an order issued by the commissioner specifying corrective actions which the commissioner has determined are required;

    (3)  "Commissioner" means the director of the department of business regulation;

    (4)  "Domestic health organization" means a health organization domiciled in this state;

    (5)  "Foreign health organization" means a health organization that is licensed or authorized to do business in this state pursuant to this title but is not domiciled in this state;

    (6)  "NAIC" means the National Association of Insurance Commissioners;

    (7)  "Health organization" means a health maintenance organization, limited health service organization, dental or vision plan, hospital, medical, and dental indemnity or service corporation or other managed care organization or any other entity providing a plan of health insurance, health benefits, or health services subject to this title. See Rhode Island General Laws 27-4.7-2

  • RBC: means risk-based capital;

    (9)  "RBC instructions" means the RBC report, including risk-based capital instructions adopted by the NAIC, as these RBC instructions may be amended by the NAIC in accordance with the procedures adopted by the NAIC;

    (10)  "RBC level" means a health organization's company action level RBC, regulatory action level RBC, authorized control level RBC, or mandatory control level RBC where:

    (i)  "Company action level RBC" means, with respect to any health organization, the product of two (2. See Rhode Island General Laws 27-4.7-2

  • RBC report: means the report required in Rhode Island General Laws 27-4.7-2
  • Total adjusted capital: means the sum of:

    (i)  A health organization's statutory capital and surplus (i. See Rhode Island General Laws 27-4.7-2

(b)  In the event of an authorized control level event with respect to a health organization, the commissioner shall:

(1)  Take any actions that are required under § 27-4.7-5 regarding a health organization 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 health organization and of the public, take any actions that are necessary to cause the health organization to be placed under regulatory control pursuant to chapters 14.1, 14.2, and 14.3 of this title. In the event the commissioner takes these actions, the authorized control level event shall be deemed sufficient grounds for the commissioner to take action under chapters 14.1, 14.2, and 14.3 of this title, and the commissioner has the rights, powers, and duties with respect to the health organization that are set forth in chapters 14.1, 14.2, and 14.3 of this title. In the event the commissioner takes actions under this subdivision pursuant to an adjusted RBC report, the health organization is entitled to any protections that are afforded to health organizations under the provisions of chapter 35 of Title 42 pertaining to summary proceedings.

History of Section.
P.L. 2000, ch. 178, § 1; P.L. 2000, ch. 200, § 11; P.L. 2000, ch. 229, § 11.