S.D. Admin. R. 20:06:36:07

Current through Register Vol. 50, page 159, June 17, 2024

Section 20:06:36:07 - Company action level event

A company action level event is any of the following events:

(1) The filing of an RBC report by an insurer or health organization which indicates one of the following:

(a) The insurer's or health organization's total adjusted capital is greater than or equal to its regulatory action level RBC but less than its company action level RBC;

(b) If the insurer is a life or health insurer, the insurer has total adjusted capital which is greater than or equal to its company action level RBC but less than the product of its authorized control level RBC and 3.0 and has a negative trend. A negative trend is determined in accordance with the trend test calculation in the Life RBC instructions;

(c) If the insurer is a property and casualty insurer, the insurer has total adjusted capital which is greater than or equal to its company action level RBC but less than the product of its authorized control level RBC and 3.0 and triggers the trend test determined in accordance with the trend test calculation included in the property and casualty RBC instructions; or

(d) If a health organization, the health organization has a total adjusted capital which is greater than or equal to its company action level RBC but less than the product of its authorized control level RBC and 3.0 and triggers the trend test determined in accordance with the trend test calculation included in the health RBC instructions;

(2) The notice by the director to the insurer or health organization of an adjusted RBC report that indicates an event in subdivision (1) of this section, and the insurer or health organization does not challenge the adjusted RBC report under § 20:06:36:21; or

(3) If, pursuant to § 20:06:36:21, an insurer or health organization challenges an adjusted RBC report that indicates the event in subdivision (1) of this section, the notice by the director to the insurer or health organization that the director has, after a hearing, rejected the insurer's or health organization's challenge.

S.D. Admin. R. 20:06:36:07

23 SDR 228, effective 7/3/1997; 37 SDR 241, effective 7/1/2011; 41 SDR 93, effective 12/3/2014.

General Authority: SDCL 58-4-48.

Law Implemented: SDCL 58-4-48.