836-011-0320 Company Action Level Event (1) “Company action level event” means any of the following events: (a) The filing of an RBC report by an insurer indicating that: (A) The insurer’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 a life or health insurer, the insurer has total adjusted capital that 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; or (C) If a property and casualty insurer, the insurer has total adjusted capital that 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. (b) The notification by the Director to the insurer of an adjusted RBC report that indicates an event in subsection (a) of this section, if the insurer does not challenge the adjusted RBC report under OAR 836-011-0360; or (c) If, pursuant to OAR 836-011-0360, an insurer challenges an adjusted RBC report that indicates the event in subsection (a) of this section, the notification by the Director to the insurer that the Director has, after a hearing, rejected the insurer’s challenge. (2) In the event of a company action level event, the insurer shall prepare and submit to the Director an RBC plan that shall: (a) Identify the conditions contributing to the company action level event; (b) Contain proposals of corrective actions that the insurer intends to take and would be expected to result in the elimination of the company action level event; (c) Provide projections of the insurer’s financial results in the current year and at least the four succeeding years, both in the absence of proposed corrective actions and giving effect to the proposed corrective actions, including projections of statutory operating income, net income, capital and surplus. The projections for both new and renewal business must include separate projections for each major line of business and separately identify each significant income, expense and benefit component, if the Director so requires; (d) Identify the key assumptions affecting the insurer’s projections and the sensitivity of the projections to the assumptions; and (e) Identify the quality of and problems associated with the insurer’s business, including but not limited to its assets, anticipated business growth and associated surplus strain, extraordinary exposure to risks, mix of business and use of reinsurance, if any, in each case. (3) The insurer shall submit the RBC Plan: (a) Not later than the 45th day after the company action level event; or (b) If the insurer challenges an adjusted RBC report pursuant to OAR 836-011-0360, not later than the 45th day after the Director’s notification to the insurer that the Director has, after a hearing, rejected the insurer’s challenge. (4) Not later than the 60th day after an insurer has submitted an RBC plan to the Director, the Director shall notify the insurer whether the RBC plan shall be implemented or is unsatisfactory, in the judgment of the Director. If the Director determines the RBC plan is unsatisfactory, the notification to the insurer shall set forth the reasons for the determination and may set forth proposed revisions that will render the RBC plan satisfactory, in the judgment of the Director. Upon notification from the Director, the insurer shall prepare a revised RBC plan, which may incorporate by reference any revisions proposed by the Director, and shall submit the revised RBC plan to the Director: (a) Not later than the 45th day after the notification from the Director; or (b) If the insurer challenges the notification from the Director under OAR 836-011-0360, not later than the 45th day after a notification to the insurer that the Director has, after a hearing, rejected the insurer’s challenge. (5) In the event of a notification by the Director to an insurer that the insurer’s RBC plan or revised RBC plan is unsatisfactory, the Director at the Director’s discretion, subject to the insurer’s right to a hearing under OAR 836-011-0360, may specify in the notification that the notification constitutes a regulatory action level event. (6) A domestic insurer that files an RBC plan or revised RBC plan with the Director shall file a copy of the RBC plan or revised RBC plan with the insurance commissioner in any state in which the insurer is authorized to transact insurance if such a state has an RBC provision substantially similar to ORS 731.752, and the insurance commissioner of that state has notified the insurer of its request for the filing in writing. The insurer shall file the copy in that state not later than the later of the following: (a) The 15th day after receipt of the notice to file a copy of its RBC plan or revised RBC plan with the state; or (b) The date on which the RBC plan or revised RBC plan is filed under section (3) or (4) of this rule, as applicable. Statutory/Other Authority: ORS 731.244, 731.554 & 733.210 Statutes/Other Implemented: ORS 731.554 & 731.574 History: ID 14-2017, amend filed 12/20/2017, effective 12/20/2017 ID 14-2011, f. & cert. ef. 10-31-11 ID 7-1995, f. & cert. ef. 11-15-95