N.J. Admin. Code § 11:2-39A.6

Current through Register Vol. 56, No. 21, November 4, 2024

Section 11:2-39A.6 - Authorized control level event

(a) "Authorized control level event" means any of the following events:

1. The filing of an RBC report by the health organization that indicates that the health organization's total adjusted capital is greater than or equal to its Mandatory Control Level RBC but less than its Authorized Control Level RBC;

2. The notification by the Commissioner to the health organization of an adjusted RBC report that indicates the event in (a)1 above, provided the health organization does not challenge the adjusted RBC report under N.J.A.C. 11:2-39A.9;

3. If the health organization, pursuant to N.J.A.C. 11:2-39A.9, challenges an adjusted RBC report that indicates the event in (a)1 above, notification by the Commissioner to the health organization that the Commissioner has, after a hearing, rejected the health organization's challenge;

4. The failure of the health organization to respond, in a manner satisfactory to the Commissioner, to a corrective order (provided the health organization has not challenged the corrective order under N.J.A.C. 11:2-39A.9); or

5. If the health organization has challenged a corrective order under N.J.A.C. 11:2-39A.9 and the Commissioner has, after a hearing, rejected the challenge or modified the corrective order, the failure of the health organization to respond, in a manner satisfactory to the Commissioner, to the corrective order subsequent to rejection or modification by the Commissioner.

(b) In the event of an authorized control level event with respect to a health organization, the Commissioner shall:

1. Take such actions as are required under N.J.A.C. 11:2-39A.5 regarding a health organization with respect to which an regulatory action level event has occurred; or

2. If the Commissioner deems it to be in the best interests of the policyholders and creditors of the health organization and of the public, take such actions as are necessary to cause the health organization to be placed under regulatory control under 17B:32-31et seq. In the event the Commissioner takes such actions, the authorized control level event shall be deemed sufficient grounds for the Commissioner to take action under the said Act, and the Commissioner shall have the rights, powers, and duties with respect to the health organization as are set forth in said Act. In the event the Commissioner takes actions under this paragraph pursuant to an adjusted RBC report, the health organization shall be entitled to such protections as are afforded to health organizations under the provisions of said Act.

N.J. Admin. Code § 11:2-39A.6

Adopted by 48 N.J.R. 2441(a), effective 11/21/2016