PARRIS N. GLENDENING, Governor

Ch. 339

2. LESS THAN ITS COMPANY ACTION LEVEL RBC; OR

(II) IN THE CASE OF A LIFE INSURER, THE INSURER HAS TOTAL
ADJUSTED CAPITAL WHICH THAT:

1.        IS GREATER THAN OR EQUAL TO ITS COMPANY ACTION
LEVEL RBC;

2.        IS LESS THAN THE PRODUCT OF ITS AUTHORIZED
CONTROL LEVEL RBC AND 2.5; AND

3.        HAS A NEGATIVE TREND;

(2)      THE COMMISSIONER NOTIFIES AN INSURER OF AN ADJUSTED RBC
REPORT THAT INDICATES AN EVENT UNDER PARAGRAPH (1) OF THIS SUBSECTION;
OR

(3)      IF AN INSURER REQUESTS A HEARING TO CHALLENGE AN
ADJUSTED RBC REPORT THAT INDICATES AN EVENT UNDER PARAGRAPH (1) OF
THIS SUBSECTION, THE COMMISSIONER NOTIFIES THE INSURER THAT THE
COMMISSIONER, AFTER A HEARING, HAS REJECTED THE INSURER'S CHALLENGE.

(B) IN THE EVENT OF A COMPANY ACTION LEVEL EVENT, THE INSURER
SHALL PREPARE AND SUBMIT TO THE COMMISSIONER AN RBC PLAN WHICH SHALL;

(1)      IDENTIFY THE CONDITIONS WHICH CONTRIBUTE TO THE COMPANY
ACTION LEVEL EVENT;

(2)      CONTAIN PROPOSALS OF CORRECTIVE ACTIONS WHICH THE
INSURER INTENDS TO TAKE AND WOULD BE EXPECTED TO RESULT IN THE
ELIMINATION OF THE COMPANY ACTION LEVEL EVENT;

(3)      PROVIDE PROJECTIONS OF THE INSURER'S FINANCIAL RESULTS IN
THE CURRENT YEAR AND AT LEAST THE 4 SUCCEEDING YEARS THAT:

(I)      PROJECT FINANCIAL RESULTS:

1.        IN THE ABSENCE OF PROPOSED CORRECTIVE ACTIONS;

AND

2.        GIVING EFFECT TO THE PROPOSED CORRECTIVE
ACTIONS;

(II)     INCLUDE PROJECTIONS OF STATUTORY OPERATING INCOME,
NET INCOME, CAPITAL, AND SURPLUS; AND

(III)    FOR BOTH NEW AND RENEWAL BUSINESS, INCLUDE SEPARATE
PROJECTIONS FOR EACH MAJOR LINE OF BUSINESS AND SEPARATELY IDENTIFY
EACH SIGNIFICANT INCOME, EXPENSE, AND BENEFIT COMPONENT;

(4)      IDENTIFY THE KEY ASSUMPTIONS IMPACTING THE INSURER'S
PROJECTIONS AND THE SENSITIVITY OF THE PROJECTIONS TO THE ASSUMPTIONS;
AND

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