If an authorized control level event occurs with respect to an insurer, the director shall either:

Terms Used In Arizona Laws 20-488.04

  • Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
  • Authorized control level event: means any of the following events:

    (a) The filing of an RBC report by the insurer indicating that the insurer's total adjusted capital is more than or equal to its mandatory control level RBC but less than its authorized control level RBC. See Arizona Laws 20-488

  • RBC: means risk-based capital. See Arizona Laws 20-488
  • Regulatory action level event: means , with respect to any insurer, any of the following events:

    (a) The filing of an RBC report by the insurer indicating that the insurer's total adjusted capital is more than or equal to its authorized control level RBC but less than its regulatory action level RBC. See Arizona Laws 20-488

1. Take those actions that are required under Section 20-488.03 regarding an insurer to whom a regulatory action level event has occurred.

2. If the director deems it to be in the best interests of the policyholders and creditors of the insurer and of the public, take any actions that are necessary to place the insurer under regulatory control pursuant to chapter 1, article 2 and chapter 3, article 4 of this title. If the director takes these actions, the authorized control level event shall be deemed to be sufficient grounds for the director to take action under chapter 1, article 2 and chapter 3, article 4 of this title, and the director has the rights, powers and duties with respect to the insurer that are set forth in chapter 1, article 2 and chapter 3, article 4 of this title. If the director takes any action under this paragraph pursuant to an adjusted RBC report, the insurer is entitled to the same protection that is afforded to insurers under chapter 1, article 2 and chapter 3, article 4 of this title.