1.    “Company action level event” means any of the following events:

a.    The filing of a risk-based capital report by a health organization which indicates that:

(1) The health organization’s total adjusted capital is greater than or equal to its regulatory action level risk-based capital but less than its company action level risk-based capital; or

(2) If a health organization has total adjusted capital that is greater than or equal to its company action level risk-based capital but less than the product of its authorized control level risk-based capital and three and triggers the trend test determined in accordance with the trend test calculation included in the health risk-based capital instructions; b.    Notification by the commissioner to the health organization of an adjusted risk-based capital report that indicates an event in subdivision a, provided the health organization does not challenge the adjusted risk-based capital report under section 26.1-03.2-07; or

c.    If, pursuant to section 26.1-03.2-07, a health organization challenges an adjusted risk-based capital report that indicates the event in subdivision a, the notification by the commissioner to the health organization that the commissioner, after a hearing, has rejected the health organization’s challenge.

2.    In the event of a company action level event, the health organization shall prepare and submit to the commissioner a risk-based capital plan that:

a.    Identifies the conditions that contribute to the company action level event;     b.    Contains proposals of corrective actions which the health organization intends to take and which would be expected to result in the elimination of the company action level event; c.    Provides projections of the health organization’s financial results in the current year and at least the two succeeding years, both in the absence of proposed corrective actions and giving effect to the proposed corrective actions, including projections of statutory balance sheets, operating income, net income, capital and surplus, and risk-based capital levels. The projections for both new and renewal business may include separate projections for each major line of business and separately identify each significant income, expense, and benefit component; d.    Identifies the key assumptions impacting the health organization’s projections and the sensitivity of the projections to the assumptions; and

e.    Identifies the quality of, and problems associated with, the 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.

3.    The risk-based capital plan must be submitted:

a.    Within forty-five days of the company action level event; or

b.    If the health organization challenges an adjusted risk-based capital report pursuant to section 26.1-03.2-07, within forty-five days after notification to the health organization that the commissioner, after a hearing, has rejected the health organization’s challenge.

4.    Within sixty days after the submission by a health organization of a risk-based capital plan to the commissioner, the commissioner shall notify the health organization whether the risk-based capital plan shall be implemented or is, in the judgment of the commissioner, unsatisfactory. If the commissioner determines the risk-based capital plan is unsatisfactory, the notification to the health organization must set forth the reasons for the determination and may set forth proposed revisions that will render the risk-based capital plan satisfactory in the judgment of the commissioner. Upon notification from the commissioner, the health organization shall prepare a revised risk-based capital plan, which may incorporate by reference any revisions proposed by the commissioner, and shall submit the revised risk-based capital plan to the commissioner:

a.    Within forty-five days after the notification from the commissioner; or

b.    If the health organization challenges the notification from the commissioner under section 26.1-03.2-07, within forty-five days after a notification to the health organization that the commissioner has, after a hearing, rejected the health organization’s challenge.

5.    In the event of a notification by the commissioner to a health organization that the health organization’s risk-based capital plan or revised risk-based capital plan is unsatisfactory, the commissioner, subject to the health organization’s right to a hearing under section 26.1-03.2-07, may specify in the notification that the notification constitutes a regulatory action level event.

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

a.    The state has a risk-based capital provision substantially similar to subsection 1 of section 26.1-03.2-08; and

b.    The insurance commissioner of that state has notified the health organization of its request for the filing in writing, in which case the health organization shall file a copy of the risk-based capital plan or revised risk-based capital plan in that state no later than the later of:

(1) 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

    (2) The date on which the risk-based capital plan or revised risk-based capital plan is filed under subsections 3 and 4.