Ch. 339

1995 LAWS OF MARYLAND

(I) THE COMMISSIONER NOTIFIES THE INSURER THAT THE
COMMISSIONER, AFTER A HEARING, HAS REJECTED THE INSURER'S CHALLENGE OR
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) IN THE EVENT OF AN AUTHORIZED CONTROL LEVEL EVENT, THE
COMMISSIONER SHALL:

(1) TAKE ANY ACTION REQUIRED UNDER § 4-306(B) OF THIS SUBTITLE
FOR AN INSURER THAT EXPERIENCES A REGULATORY ACTION LEVEL EVENT; OR

(2) IF THE COMMISSIONER CONSIDERS 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 TITLE 9 OF THIS
ARTICLE.
(C) (1) THE COMMISSIONER SHALL HAVE THE RIGHTS, POWERS, AND
DUTIES UNDER TITLE 9 OF THIS ARTICLE NEEDED TO CARRY OUT THE
REQUIREMENTS OF THIS SECTION.

(2) IF THE COMMISSIONER TAKES ANY ACTION UNDER TITLE 9 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 TITLE 9 OF THIS ARTICLE WITH REGARD TO SUMMARY PROCEEDINGS.

4-308.

(A) A MANDATORY CONTROL LEVEL EVENT OCCURS WHEN:

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

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

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

(B) (1) IN THE CASE OF A LIFE INSURER, IF A MANDATORY CONTROL
LEVEL EVENT OCCURS WITH RESPECT TO THE LIFE INSURER, THE COMMISSIONER
SHALL TAKE ANY ACTION THAT MAY BE NECESSARY TO PLACE THE LIFE INSURER
UNDER CONSERVATION. REHABILITATION, OR LIQUIDATION UNDER TITLE 9 OF
THIS ARTICLE.

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