Ins 51.15 History History: Cr. Register, December, 1996, No. 492, eff. 1-1-97.

Ins 51.20 Ins 51.20 Regulatory action level event.

Ins 51.20(1) (1) If a regulatory action level event occurs with respect to an insurer the commissioner shall:

Ins 51.20(1)(a) (a) Require the insurer to prepare and submit a risk based capital plan or, if applicable, a revised risk based capital plan;

Ins 51.20(1)(b) (b) Perform such examination or analysis as the commissioner deems necessary of the assets, liabilities and operations of the insurer including a review of its risk based capital plan or revised risk based capital plan; and

Ins 51.20(1)(c) (c) Subsequent to the examination or analysis, issue an order specifying such corrective actions as the commissioner shall determine are required.

Ins 51.20(2) (2) In determining corrective actions, the commissioner may take into account such factors as are deemed relevant with respect to the insurer based upon the commissioner’s examination or analysis of the assets, liabilities and operations of the insurer, including, but not limited to, the results of any sensitivity tests undertaken pursuant to the risk based capital instructions. The insurer shall submit a risk based capital plan or revised risk based capital plan:

Ins 51.20(2)(a) (a) Within 45 days after the occurrence of the regulatory action level event;

Ins 51.20(2)(b) (b) If the insurer challenges an adjusted risk based capital report under s. Ins 50.50 and the challenge is not frivolous in the judgment of the commissioner, within 45 days after the notification to the insurer that the commissioner has, after a hearing, rejected the insurer’s challenge; or

Ins 51.20(2)(c) (c) If the insurer challenges a revised risk based capital plan pursuant to s. Ins 51.50 and the challenge is not frivolous in the judgment of the commissioner, within 45 days after the notification to the insurer that the commissioner has, after a hearing, rejected the insurer’s challenge.

Ins 51.20(3) (3) The commissioner may retain actuaries and investment experts and other consultants as may be necessary in the judgment of the commissioner to review the insurer’s risk based capital plan or revised risk based capital plan, examine or analyze the assets, liabilities and operations of the insurer and formulate a corrective order with respect to the insurer. The fees, costs and expenses relating to consultants shall be borne by the affected insurer or such other party as directed by the commissioner.

Ins 51.20 History History: Cr. Register, December, 1996, No. 492, eff. 1-1-97.

Ins 51.30 Ins 51.30 Authorized control level event. If an authorized control level event occurs with respect to an insurer, the commissioner shall:

Ins 51.30(1) (1) Take such actions as are required under s. Ins 51.20 regarding an insurer with respect to which a regulatory action level event has occurred; or

Ins 51.30(2) (2) If the commissioner deems it to be in the best interests of the policyholders and creditors of the insurer and of the public, take such actions as are necessary to cause the insurer to be placed under regulatory control under ch. 645, Stats. If the commissioner takes such actions, the authorized control level event shall be deemed sufficient grounds for the commissioner to take action under ch. 645, Stats., and the commissioner shall have the rights, powers and duties with respect to the insurer as are set forth in ch. 645, Stats.

Ins 51.30 History History: Cr. Register, December, 1996, No. 492, eff. 1-1-97.

Ins 51.40 Ins 51.40 Mandatory control level. If there is a mandatory control level event:

Ins 51.40(1) (1) With respect to a life or health insurer, the commissioner shall take such actions as are necessary to place the insurer under regulatory control under ch. 645, Stats. The mandatory control level event shall be deemed sufficient grounds for the commissioner to take action under ch. 645, Stats., and the commissioner shall have the rights, powers and duties with respect to the insurer as are set forth in ch. 645, Stats. Notwithstanding any of the foregoing, the commissioner may forego action for up to ninety days after the mandatory control level event if the commissioner finds there is a reasonable expectation that the mandatory control level event may be eliminated within the 90 day period.

Ins 51.40(2) (2) With respect to a property and casualty insurer, the commissioner shall take such actions as are necessary to place the insurer under regulatory control under ch. 645, Stats., or, in the case of an insurer which is writing no business and which is running-off its existing business, may allow the insurer to continue its run-off under the supervision of the commissioner. In either event, the mandatory control level event shall be deemed sufficient grounds for the commissioner to take action under ch. 645, Stats., and the commissioner shall have the rights, powers and duties with respect to the insurer as are set forth in ch. 645, Stats. Notwithstanding any of the foregoing, the commissioner may forego action for up to 90 days after the mandatory control level event if the commissioner finds there is a reasonable expectation that the mandatory control level event may be eliminated within the 90 day period.

Ins 51.40 History History: Cr. Register, December, 1996, No. 492, eff. 1-1-97.

Ins 51.50 Ins 51.50 Hearings.

Ins 51.50(1) (1) An insurer shall have the right to a hearing, on a record, at which the insurer may challenge any determination or action by the commissioner under this subchapter upon any of the following:

Ins 51.50(1)(a) (a) Notification to an insurer by the commissioner of an adjusted risk based capital report.

Ins 51.50(1)(b) (b) Notification to an insurer by the commissioner of all of the following:

Ins 51.50(1)(b)1. 1. The insurer’s risk based capital plan or revised risk based capital plan is unsatisfactory.

Ins 51.50(1)(b)2. 2. Such notification constitutes a regulatory action level event with respect to such insurer.

Ins 51.50(1)(c) (c) Notification to any insurer by the commissioner that the insurer has failed to adhere to its risk based capital plan or revised risk based capital plan and that such failure has a substantial adverse effect on the ability of the insurer to eliminate the company action level event with respect to the insurer in accordance with its risk based capital plan or revised risk based capital plan.

Ins 51.50(1)(d) (d) Notification to an insurer by the commissioner of a corrective order with respect to the insurer under this subchapter.

Ins 51.50(2) (2) The procedures established under ss. 601.62, 601.63, and 645.21, Stats., apply to an order, determination or hearing under this chapter.