Illinois General Assembly - Illinois Compiled Statutes

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215 ILCS 5/35A-30

(215 ILCS 5/35A-30)

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.)