Vermont Statutes Title 8 Sec. 8304
Terms Used In Vermont Statutes Title 8 Sec. 8304
- Adjusted risk-based capital report: means a risk-based capital report that has been adjusted by the Commissioner in accordance with subsection 8302(e) of this title. See
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Authorized control level risk-based capital: means the number determined under the risk-based capital formula in accordance with the risk-based capital instructions. See
- Commissioner: means the Commissioner of Financial Regulation. See
- Corrective order: means an order issued by the Commissioner specifying corrective actions that the Commissioner has determined are required under this chapter. See
- Fees: shall mean earnings due for official services, aside from salaries or per diem compensation. See
- following: when used by way of reference to a section of the law shall mean the next preceding or following section. See
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Regulatory action level risk-based capital: means , with respect to any insurer, the product of 1. See
- Risk-based capital instructions: means the risk-based capital report form and the related instructions adopted by the NAIC and approved by the Commissioner. See
- Risk-based capital plan: means a comprehensive financial plan containing the elements specified in subsection 8303(b) of this title. See
- Risk-based capital report: means the report required in section 8302 of this title. See
- Total adjusted capital: means the sum of:
§ 8304. Regulatory action level event
(a) The following are deemed to be regulatory action level events and subject to the requirements of this section:
(1) A risk-based capital report or final adjusted risk-based capital report that indicates that the insurer’s total adjusted capital is greater than or equal to its authorized control level risk-based capital, but less than its regulatory action level risk-based capital.
(2) Late filing of a risk-based capital report that is not excused by the Commissioner and cured within 10 days of the filing date.
(3) Failure to file a risk-based capital plan within the time provided in section 8303 of this title.
(4) Notice by the Commissioner that a plan submitted by the insurer under section 8303 of this title is disapproved and that the disapproval has been deemed by the Commissioner as constituting a regulatory action level event.
(5) Notice by the Commissioner of a failure to adhere to its risk-based capital plan or revised risk-based capital plan where the failure has a substantial adverse effect on the ability of the insurer to eliminate the regulatory action level event in accordance with its plan.
(b) An insurer shall prepare and submit to the Commissioner a risk-based capital plan within 45 days of filing a risk-based capital report or within 45 days of notice of a final adjusted risk-based capital report showing a regulatory action level event.
(c) The Commissioner shall order such examination and analysis as the Commissioner deems necessary of the assets, liabilities, and operations of the insurer, including a review of its risk-based capital plan or revised risk-based capital plan. Subsequent to the examination or analysis, the Commissioner shall issue an order specifying such corrective actions as the Commissioner shall determine are required. In determining corrective actions, the Commissioner may take into account the results of any examination and analysis of the insurer’s assets, liabilities, and operations, including any sensitivity test undertaken pursuant to the risk-based capital instructions.
(d) The Commissioner may retain actuaries, investment experts, and other consultants as the Commissioner deems necessary to review the insurer’s risk-based capital plan or revised risk-based capital plan; examine or analyze the assets, liabilities, and operations of the insurer; and formulate the corrective order with respect to the insurer. The fees, costs, and expenses relating to consultants shall be borne by the affected insurer or such other party as directed by the Commissioner. (Added 1993, No. 235 (Adj. Sess.), § 8, eff. June 21, 1994.)