Ch. 339                                        1995 LAWS OF MARYLAND

(4)      THE INSURER FAILS TO RESPOND TO A CORRECTIVE ORDER IN A
MANNER SATISFACTORY TO THE COMMISSIONER; OR

(5)      IF AN INSURER HAS REQUESTED A HEARING TO CHALLENGE A
CORRECTIVE ORDER ISSUED BY THE COMMISSIONER:

(I)      THE COMMISSIONER NOTIFIES THE INSURER THAT THE
COMMISSIONER, AFTER A HEARING, HAS REJECTED THE INSURER'S CHALLENGE OR
HAS MODIFIED THE CORRECTIVE ORDER; AND

(II)     THE INSURER FAILS TO RESPOND, IN A MANNER
SATISFACTORY TO THE COMMISSIONER, TO THE SUSTAINED OR MODIFIED
CORRECTIVE ORDER.

(B)     IF AN AUTHORIZED CONTROL LEVEL EVENT OCCURS WITH RESPECT TO
AN INSURER, THE COMMISSIONER SHALL:

(1)      TAKE ANY ACTION THAT WOULD BE REQUIRED UNDER § 743(B) OF
THIS SUBTITLE REGARDING AN INSURER THAT EXPERIENCES A REGULATORY
ACTION LEVEL EVENT; OR

(2)      IF THE COMMISSIONER DEEMS IT TO BE IN THE BEST INTEREST OF
THE POLICYHOLDERS AND CREDITORS OF THE INSURER AND OF THE PUBLIC, TAKE
ANY ACTION THAT MAY BE NECESSARY TO PLACE THE INSURER UNDER
CONSERVATION, REHABILITATION, OR LIQUIDATION UNDER SUBTITLE 10 OF THIS
ARTICLE.

(C)      (1) THE COMMISSIONER SHALL HAVE THE RIGHTS, POWERS, AND
DUTIES NEEDED TO CARRY OUT THE REQUIREMENTS OF THIS SECTION UNDER
SUBTITLE 10 OF THIS ARTICLE.

(2) IF THE COMMISSIONER TAKES ANY ACTION UNDER SUBTITLE 10 OF
THIS ARTICLE PURSUANT TO AN ADJUSTED RBC REPORT AS PROVIDED IN THIS
SECTION, THE INSURER SHALL BE ENTITLED TO THE PROTECTIONS AFFORDED TO
INSURERS UNDER SUBTITLE 10 OF THIS ARTICLE WITH REGARD TO SUMMARY
PROCEEDINGS.

745.

(A) A MANDATORY CONTROL LEVEL EVENT OCCURS WHEN:

(1)      AN INSURER FILES AN RBC REPORT WHICH INDICATES THAT THE
INSURER'S TOTAL ADJUSTED CAPITAL IS LESS THAN ITS MANDATORY CONTROL
LEVEL RBC;

(2)      THE COMMISSIONER NOTIFIES THE 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 THE EVENT UNDER PARAGRAPH (1) OF
THIS SUBSECTION, THE COMMISSIONER NOTIFIES THE INSURER THAT THE
COMMISSIONER, AFTER A HEARING, HAS REJECTED THE INSURER'S CHALLENGE.

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