(a) “Company Action Level Event” means any of the following events:

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Terms Used In Tennessee Code 56-46-104

  • Adjusted RBC Report: means an RBC report that has been adjusted by the commissioner in accordance with §. See Tennessee Code 56-46-102
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 56-1-102
  • Company Action Level RBC: means , with respect to any insurer, the product of 2. See Tennessee Code 56-46-102
  • Domestic insurer: means any insurance company domiciled in Tennessee. See Tennessee Code 56-46-102
  • Negative trend: means , with respect to a life and/or health insurer, negative trend over a period of time, as determined in accordance with the "Trend Test Calculation" included in the RBC Instructions. See Tennessee Code 56-46-102
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Property and casualty insurer: means any insurance company licensed in those lines in Tennessee, but does not include monoline mortgage guaranty insurers, financial guaranty insurers and title insurers. See Tennessee Code 56-46-102
  • RBC Plan: means a comprehensive financial plan containing the elements specified in §. See Tennessee Code 56-46-102
  • RBC Report: means the report required in §. See Tennessee Code 56-46-102
  • Regulatory Action Level RBC: means the product of 1. See Tennessee Code 56-46-102
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Total adjusted capital: means the sum of:
    (A) An insurer's statutory capital and surplus as determined in accordance with the statutory accounting applicable to the annual financial statements required to be filed pursuant to §. See Tennessee Code 56-46-102
  • Trend Test Calculation: include d in the RBC Instructions. See Tennessee Code 56-46-102
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(1) The filing of an RBC Report by an insurer that indicates that:

(A) The insurer’s Total Adjusted Capital is greater than or equal to its Regulatory Action Level RBC but less than its Company Action Level RBC;
(B) If a life and/or health insurer, the insurer has Total Adjusted Capital that is greater than or equal to its Company Action Level RBC but less than the product of its Authorized Control Level RBC and 3.0 and has a negative trend; or
(C) If a property and casualty insurer, the insurer has total adjusted capital that is greater than the product of its Authorized Control Level RBC and 3.0 and triggers the trend test determined in accordance with the trend test calculation included in the Property and Casualty RBC instructions;
(2) The notification by the commissioner to the insurer of an Adjusted RBC Report that indicates an event in subdivision (a)(1); provided the insurer does not challenge the Adjusted RBC Report under § 56-46-108; or
(3) If, pursuant to § 56-46-108, an insurer challenges an Adjusted RBC Report that indicates the event in subdivision (a)(1), the notification by the commissioner to the insurer that the commissioner has, after a hearing, rejected the insurer’s challenge.
(b) In the event of a Company Action Level Event, the insurer shall prepare and submit to the commissioner an RBC Plan, which shall:

(1) Identify the conditions that contribute to the Company Action Level Event;
(2) Contain proposals of corrective actions that the insurer intends to take and would be expected to result in the elimination of the Company Action Level Event;
(3) Provide projections of the insurer’s financial results in the current year and at least the four (4) succeeding years, both in the absence of proposed corrective actions, including projections of statutory operating income, net income, capital and/or surplus. The projections for both new and renewal business might 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 projections and the sensitivity of the projections to the assumptions; and
(5) Identify the quality of, and problems associated with, the insurer’s business including, but not limited to, 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 RBC Plan shall be submitted:

(1) Within forty-five (45) days of the Company Action Level Event; or
(2) If the insurer challenges an Adjusted RBC Report pursuant to § 56-46-108, within forty-five (45) days after notification to the insurer that the commissioner has, after a hearing, rejected the insurer’s challenge.
(d) Within sixty (60) days after the submission by an insurer of an RBC Plan to the commissioner, the commissioner shall notify the insurer whether the RBC Plan shall be implemented or is, in the judgment of the commissioner, unsatisfactory. If the commissioner determines the RBC Plan is unsatisfactory, the notification to the insurer shall set forth the reasons for the determination, and may set forth proposed revisions that will render the RBC Plan satisfactory, in the judgment of the commissioner. Upon notification from the commissioner, the insurer shall prepare a Revised RBC Plan, which may incorporate by reference any revisions proposed by the commissioner, and shall submit the Revised RBC Plan to the commissioner:

(1) Within forty-five (45) days after the notification from the commissioner; or
(2) If the insurer challenges the notification from the commissioner under § 56-46-108, within forty-five (45) days after a notification to the insurer that the commissioner has, after a hearing, rejected the insurer’s challenge.
(e) In the event of a notification by the commissioner to an insurer that the insurer’s RBC Plan or Revised RBC Plan is unsatisfactory, the commissioner may, at the commissioner’s discretion, subject to the insurer’s right to a hearing under § 56-46-108, specify in the notification that the notification constitutes a Regulatory Action Level Event.
(f) Every domestic insurer that files an RBC Plan or Revised RBC Plan with the commissioner shall file a copy of the RBC Plan or Revised RBC Plan with the insurance commissioner in any state in which the insurer is authorized to do business if:

(1) That state has an RBC provision substantially similar to § 56-46-109(a); and
(2) The insurance commissioner of that state has notified the insurer of its request for the filing in writing, in which case the insurer shall file a copy of the RBC Plan or Revised RBC Plan in that state no later than the later of:

(A) Fifteen (15) days after the receipt of notice to file a copy of its RBC Plan or Revised RBC Plan with the state; or
(B) The date on which the RBC Plan or Revised RBC Plan is filed under subsections (c) and (d).
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