(a) “Mandatory Control Level Event” means any of the following events:

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Terms Used In Tennessee Code 56-46-206

  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 56-1-102
  • 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 licensed pursuant to chapters 27, 28, 30, 31, 32 and 51 of this title. See Tennessee Code 56-46-201
  • Mandatory Control Level RBC: means the product of 0. See Tennessee Code 56-46-201
  • RBC report: means the report required in §. See Tennessee Code 56-46-201
  • Total adjusted capital: means the sum of:
    (A) A health organization's statutory capital and surplus, also known as net worth, as determined in accordance with the statutory accounting applicable to the annual financial statements required to be filed under §. See Tennessee Code 56-46-201
(1) The filing of an RBC report which indicates that the health organization‘s total adjusted capital is less than its Mandatory Control Level RBC;
(2) Notification by the commissioner to the health organization of an adjusted RBC report that indicates the event in subdivision (a)(1); provided, that the health organization does not challenge the adjusted RBC report under § 56-46-207; or
(3) If, pursuant to § 56-46-207, the health organization challenges an adjusted RBC report that indicates the event in subdivision (a)(1), notification by the commissioner to the health organization that the commissioner has, after a hearing, rejected the health organization’s challenge.
(b)

(1) In the event of a Mandatory Control Level Event, the commissioner shall take such actions as are necessary to place the health organization under regulatory control under chapter 9 of this title. In that event, the Mandatory Control Level Event shall be deemed sufficient grounds for the commissioner to take action under chapter 9 of this title, and the commissioner shall have the rights, powers and duties with respect to the health organization as are set forth in chapter 9 of this title. If the commissioner takes actions pursuant to an adjusted RBC report, the health organization shall be entitled to the protections of chapter 9, part 2 of this title pertaining to summary proceedings.
(2) Notwithstanding subdivision (b)(1), the commissioner may forego action for up to ninety (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 ninety-day period.
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