§ 521e-6

521E.6 Mandatory-control-level event. 1. 'Mandatory-control-level event' means any of the following events:a. The filing of a risk-based capital report which indicates that an insurer’s total adjusted capital is less than its mandatory-control-level risk-based capital. b. Notification by the commissioner to an insurer of an adjusted risk-based capital report that indicates the event in paragraph 'a', provided the insurer does not challenge the adjustedrisk-based capital report and request a hearing pursuant to section 521E.7. c. After a hearing pursuant to section 521E.7, notification by the commissioner to the insurer that the commissioner has rejected the insurer’s challenge of the adjusted risk-basedcapital report indicating the event in paragraph 'a'. 2. In the event of a mandatory-control-level event the commissioner shall do the following:a. With respect to a life insurer, take action as necessary to place the insurer under supervision or other regulatory control under chapter 507C. If the commissioner takes actionpursuant to this paragraph, the mandatory-control-level event is deemed sufficient groundsfor the commissioner to take action pursuant to chapter 507C, and the

r 507C. If the commissioner takes actionpursuant to this paragraph, the mandatory-control-level event is deemed sufficient groundsfor the commissioner to take action pursuant to chapter 507C, and the commissioner shallhave the rights, powers, and duties with respect to the insurer as set forth in chapter 507C.If the commissioner takes action pursuant to an adjusted risk-based capital report, theinsurer is entitled to the protections of chapter 17A pertaining to summary proceedings.Notwithstanding the provisions of this paragraph, the commissioner may forego any actionpursuant to this paragraph for up to ninety days after the mandatory-control-level event ifthe commissioner finds a reasonable expectation exists that the mandatory-control-levelevent may be eliminated within the ninety-day period. b. With respect to a property and casualty insurer, take action as necessary to place the insurer under supervision or other regulatory control under chapter 507C, or, in the case ofan insurer which is no longer writing business and which is running off its existing business,the commissioner may allow the insurer to continue its run-off under the supervision ofthe commissioner.

fan insurer which is no longer writing business and which is running off its existing business,the commissioner may allow the insurer to continue its run-off under the supervision ofthe commissioner. In either event, the mandatory-control-level event is deemed sufficientgrounds for the commissioner to take action under chapter 507C and the commissionershall have the rights, powers, and duties with respect to the insurer as set forth in chapter507C. If the commissioner takes action pursuant to an adjusted risk-based capital report,the insurer is entitled to the protections of chapter 17A pertaining to summary proceedings.Notwithstanding the provisions of this paragraph, the commissioner may forego actionfor up to ninety days after the mandatory-control-level event if the commissioner finds areasonable expectation exists that the mandatory-control-level event may be eliminatedwithin the ninety-day period. 96 Acts, ch 1046, §14 Sat Dec 23 00:53:04 2023 Iowa Code 2024, Section 521E.6 (16, 0)