215 ILCS 5/35A-30
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article IIA - Risk-Based Capital

Sec. 35A-30. Mandatory control level event.(a) A mandatory control level event means any of the following events:(1) The filing of an RBC Report that indicates that     the insurer's total adjusted capital is less than its mandatory control level RBC.(2) The notification by the Director to the insurer     of an Adjusted RBC Report that indicates the event described in paragraph (1), provided the insurer does not challenge the Adjusted RBC Report under Section 35A-35.(3) The notification by the Director to the insurer     that the Director has, after a hearing, rejected the insurer's challenge under Section 35A-35 to the Adjusted RBC Report that indicates the event described in paragraph (1).(b) In the  event of a mandatory control level event with respect to a life, health, or  life and health insurer or a fraternal benefit society, the Director shall take  actions necessary to place the insurer in  receivership under  Article XIII.  In that event, the mandatory control level event shall be deemed  sufficient grounds for the Director to take action under Article XIII, and the  Director shall have the rights, powers, and duties with respect to the insurer  that  are set forth in Article XIII.  If the Director takes  action  under this subsection regarding an Adjusted RBC Report, the insurer shall be  entitled to the protections  of Article XIII.  If the Director finds that there is a  reasonable expectation that the mandatory control level event may be eliminated  within 90 days after it occurs, the Director may delay action for not more  than 90 days after the mandatory control level event.(c) In the case of a mandatory control level event with respect to a  property and casualty insurer, the Director shall  take the actions necessary to place the insurer in receivership under Article  XIII or, in the case of an insurer that is writing no business and that is  running-off its existing business, may allow the insurer to continue its  run-off under the supervision of the Director.  In either case, the mandatory  control level event is deemed sufficient grounds for the Director to take  action under Article XIII, and the Director has the rights, powers, and  duties with respect to the insurer that are set forth in Article XIII.  If the  Director takes action regarding an Adjusted RBC Report, the insurer shall be  entitled to the protections of Article XIII. If the Director finds that there  is a reasonable expectation that  the mandatory control level event may be eliminated within 90 days after it  occurs, the Director may delay action for not more than 90 days after the  mandatory control level event.(d) In the case of a mandatory control level event with respect to a  health organization, the Director shall take the actions necessary to place the  insurer in receivership under Article XIII or, in the case of an insurer that  is writing no business and that is running-off its existing business, may allow  the insurer to  continue its run-off under the supervision of the Director.  In either case,  the mandatory control level event is deemed sufficient grounds for the Director  to take action under Article XIII, and the Director has the rights, powers, and  duties with respect to the insurer that are set forth in Article XIII.  If the  Director takes action regarding an Adjusted RBC Report, the insurer shall be  entitled to the protections of Article XIII.  If the Director finds that there  is a reasonable expectation that the mandatory control level event may be  eliminated within 90 days after it occurs, the Director may delay action for  not more than 90 days after the mandatory control level event.  (Source: P.A. 98-157, eff. 8-2-13.)