215 ILCS 5/35A-15
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article IIA - Risk-Based Capital

Sec. 35A-15. Company action level event.(a) A company action level event means any of the following events:(1) The filing of an RBC Report by an insurer that     indicates 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) the insurer, if a life, health, or life and         health insurer or a fraternal benefit society, 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;(C) the insurer, if a property and casualty         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; or(D) the insurer, if a health organization, 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 Health RBC Instructions.(2) The notification by the Director to the insurer     of an Adjusted RBC Report that indicates an 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 an Adjusted RBC Report that indicates the event described in paragraph (1).(b) In the event of a company action level event, the insurer shall prepare  and submit to the Director an RBC Plan that does  all of the following:(1) Identifies the conditions that contribute to the     company action level event.(2) Contains proposed corrective actions that the     insurer intends to take and that are expected to result in the elimination of the company action level event. A health organization is not prohibited from proposing recognition of a parental guarantee or a letter of credit to eliminate the company action level event; however the Director shall, at his discretion, determine whether or the extent to which the proposed parental guarantee or letter of credit is an acceptable part of a satisfactory RBC Plan or Revised RBC Plan.(3) Provides projections of the insurer's financial     results in the current year and at least the 4 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 may include separate projections for each major line of business and separately identify each significant income, expense, and benefit component.(4) Identifies the key assumptions affecting the     insurer's projections and the sensitivity of the projections to the assumptions.(5) Identifies 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 risk, mix of business, and use of reinsurance, if any, in each case.(c) The insurer shall submit the RBC Plan to the Director  within 45 days  after the company action  level event occurs or within 45 days after the Director notifies the insurer  that the Director has, after a hearing, rejected its   challenge under Section 35A-35 to an  Adjusted RBC Report.(d) Within 60 days after an insurer submits an RBC Plan to the  Director, the Director shall notify the insurer whether the RBC Plan shall be  implemented or is, in the judgment of the Director, unsatisfactory.  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.  The insurer shall submit the Revised  RBC Plan to the Director within 45 days after the Director notifies the insurer  that the RBC Plan is unsatisfactory or within 45 days after the Director  notifies the insurer that the Director has, after a hearing, rejected its  challenge under Section 35A-35 to the determination that the RBC Plan is  unsatisfactory.(e) In the event the Director notifies an insurer that its  RBC Plan or Revised RBC Plan is unsatisfactory, the Director may, at  the Director's discretion and subject to the insurer's right to a hearing under  Section 35A-35, specify in the notification that the notification constitutes a  regulatory action level event.(f) Every 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  chief insurance regulatory official in any state in which the insurer is  authorized to do business if that state has a law substantially similar to the  confidentiality provisions in subsection (a) of Section 35A-50 and if that  official requests in writing a copy of the plan.  The insurer shall file a copy  of the  RBC Plan or Revised RBC Plan in that state no later than the later of  15 days after receiving the written request for the copy or  the date on which the RBC Plan or Revised RBC Plan is filed under  subsection (c) or (d) of this Section.  (Source: P.A. 99-542, eff. 7-8-16; 100-201, eff. 8-18-17.)