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USA Statutes : maine
Title : Title 24-A. MAINE INSURANCE CODE
Chapter : Chapter 79. RISK-BASED CAPITAL STANDARDS (HEADING. PL 1993, c. 634, Pt. A, @1 (new))
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Title 24-A - §6451-A. Applicability to other health organizations
Title 24-A: MAINE INSURANCE CODE
Chapter 79: RISK-BASED CAPITAL STANDARDS (HEADING: PL 1993, c. 634, Pt. A, @1 (new))
§6451-A. Applicability to other health organizations
This chapter applies to fraternal benefit societies authorized to do business in this State pursuant to section 4124, to health
maintenance organizations authorized to do business in this State pursuant to section 4204 and to nonprofit hospital or medical
service organizations authorized to do business in this State pursuant to Title 24, section 2305. Such health organizations
are considered insurers for purposes of this chapter and are subject to the provisions applicable to property and casualty
insurers where this chapter provides separate standards for property and casualty insurers and for life or health insurers.
[1999, c. 113, §24 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6451. Definitions
Title 24-A: MAINE INSURANCE CODE
Chapter 79: RISK-BASED CAPITAL STANDARDS (HEADING: PL 1993, c. 634, Pt. A, @1 (new))
§6451. Definitions
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
[1993, c. 634, Pt. A, §1 (new).]
1. Adjusted risk-based capital report. "Adjusted risk-based capital report" means a risk-based capital report that has been adjusted by the superintendent in accordance
with section 6452, subsection 3.
[1993, c. 634, Pt. A, §1 (new).]
2. Corrective order. "Corrective order" means an order issued by the superintendent specifying corrective actions that the superintendent has
determined are required.
[1993, c. 634, Pt. A, §1 (new).]
3. Domestic insurer. "Domestic insurer" means any insurance company domiciled in this State.
[1997, c. 81, §1 (amd).]
4. Foreign insurer. "Foreign insurer" means any insurance company that is authorized to do business in this State under section 404 but is not
domiciled in this State.
[1997, c. 81, §1 (amd).]
4-A. Life or health insurer. "Life or health insurer" means any insurance company described in section 409, subsection 3 and authorized to do business
in this State under section 410, or a licensed property and casualty insurer writing only accident and health insurance.
[1997, c. 81, §2 (new).]
5. NAIC. "NAIC" means the National Association of Insurance Commissioners.
[1993, c. 634, Pt. A, §1 (new).]
6. Negative trend. "Negative trend" means, with respect to a life or health insurer, a negative trend over a period of time, as determined
in accordance with the trend test calculation included in the risk-based capital instructions.
[1997, c. 81, §3 (amd).]
6-A. Property and casualty insurer. "Property and casualty insurer" means any insurance company authorized to do business in this State under section 410 except
a life or health insurer or single line mortgage guaranty insurer, financial guaranty insurer or title insurer.
[1997, c. 81, §4 (new).]
7. Risk-based capital instructions. "Risk-based capital instructions" means the risk-based capital instructions adopted by the NAIC, as such risk-based capital
instructions may be amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC.
[1993, c. 634, Pt. A, §1 (new).]
8. Risk-based capital level. "Risk-based capital level" means an insurer's company action level risk-based capital, regulatory action level risk-based
capital, authorized control level risk-based capital or mandatory control level risk-based capital where:
A. "Company action level risk-based capital" means, with respect to any insurer, the product of 2.0 and its authorized control
level risk-based capital;
[1993, c. 634, Pt. A, §1 (new).]
B. "Regulatory action level risk-based capital" means the product of 1.5 and its authorized control level risk-based capital;
[1993, c. 634, Pt. A, §1 (new).]
C. "Authorized control level risk-based capital" means the number determined under the risk-based capital formula in accordance
with the risk-based capital instructions; and
[1993, c. 634, Pt. A, §1 (new).]
D. "Mandatory control level risk-based capital" means the product of .70 and the authorized control level risk-based capital.
[1993, c. 634, Pt. A, §1 (new).]
[1993, c. 634, Pt. A, §1 (new).]
9. Risk-based capital plan. "Risk-based capital plan" means a comprehensive financial plan containing the elements specified in section 6453, subsection
2. If the superintendent rejects the risk-based capital plan and it is revised by the insurer, with or without the superintendent's
recommendation, the plan is called the revised risk-based capital plan.
[1993, c. 634, Pt. A, §1 (new).]
10. Risk-based capital report. "Risk-based capital report" means the report required in section 6452.
[1993, c. 634, Pt. A, §1 (new).]
11. Total adjusted capital. "Total adjusted capital" means the sum of:
A. An insurer's statutory capital and surplus; and
[1993, c. 634, Pt. A, §1 (new).]
B. Such other items, if any, as the risk-based capital instructions provide.
[1993, c. 634, Pt. A, §1 (new).]
[1993, c. 634, Pt. A, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6452. Risk-based capital reports
Title 24-A: MAINE INSURANCE CODE
Chapter 79: RISK-BASED CAPITAL STANDARDS (HEADING: PL 1993, c. 634, Pt. A, @1 (new))
§6452. Risk-based capital reports
1. Duty to file. A domestic insurer shall, on or before March 1st, submit to the superintendent a report of its risk-based capital levels
as of the end of the previous calendar year, in a form and containing such information as is required by the risk-based capital
instructions. In addition, a domestic insurer shall file its risk-based capital report:
A. With the NAIC in accordance with the risk-based capital instructions; and
[1993, c. 634, Pt. A, §1 (new).]
B. With the insurance regulator in any state in which the insurer is authorized to do business, if that regulator has notified
the insurer of its request for the filing in writing, in which case the insurer shall file its risk-based capital report not
later than the later of:
(1) Fifteen days after the receipt of notice to file its risk-based capital report with that state; or
(2) The filing date.
[1999, c. 113, §25 (amd).]
[1999, c. 113, §25 (amd).]
2. Determination of a life or health insurer's risk-based capital. A life or health insurer's risk-based capital must be determined in accordance with the formula set forth in the risk-based
capital instructions. The formula must take into account, and may adjust for the covariance between, the following:
A. The risk with respect to the insurer's assets;
[1993, c. 634, Pt. A, §1 (new).]
B. The risk of adverse insurance experience with respect to the insurer's liabilities and obligations;
[1993, c. 634, Pt. A, §1 (new).]
C. The interest rate risk with respect to the insurer's business; and
[1993, c. 634, Pt. A, §1 (new).]
D. All other business risks and such other relevant risks as are set forth in the risk-based capital instructions, determined
in each case by applying the factors in the manner set forth in the risk-based capital instructions.
[1993, c. 634, Pt. A, §1 (new).]
[1997, c. 81, §5 (amd).]
3. Filing of inaccurate report. If a domestic insurer files a risk-based capital report that in the judgment of the superintendent is inaccurate, then the
superintendent shall adjust the risk-based capital report to correct the inaccuracy and notify the insurer of the adjustment.
The notice must contain a statement of the reason for the adjustment. A risk-based capital report so adjusted is referred
to as an adjusted risk-based capital report.
[1993, c. 634, Pt. A, §1 (new).]
4. Determination of a property and casualty insurer's risk-based capital. A property and casualty insurer's risk-based capital is determined in accordance with the formula set forth in the risk-based
capital instructions. The formula must take into account and may adjust for the covariance between the following:
A. Asset risk;
[1997, c. 81, §6 (new).]
B. Credit risk;
[1997, c. 81, §6 (new).]
C. Underwriting risk; and
[1997, c. 81, §6 (new).]
D. All other business risks and such other relevant risks as are set forth in the risk-based capital instructions, determined
in each case by applying the factors set forth in the risk-based capital instructions.
[1997, c. 81, §6 (new).]
[1997, c. 81, §6 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6453. Company action level event
Title 24-A: MAINE INSURANCE CODE
Chapter 79: RISK-BASED CAPITAL STANDARDS (HEADING: PL 1993, c. 634, Pt. A, @1 (new))
§6453. Company action level event
1. Company action level event; defined. "Company action level event" means any of the following events:
A. The filing of a risk-based capital report by an insurer that indicates that:
(1) The insurer's total adjusted capital is greater than or equal to its regulatory action level risk-based capital but
less than its company action level risk-based capital; or
(2) A life or health insurer has total adjusted capital that is greater than or equal to its company action level risk-based
capital but less than the product of its authorized control level risk-based capital and 2.5 and has a negative trend;
[1997, c. 81, §7 (amd).]
B. Provided the insurer does not challenge the adjusted risk-based capital report under section 6457, the notification by the
superintendent to the insurer of an adjusted risk-based capital report that indicates the event in paragraph A; or
[1993, c. 634, Pt. A, §1 (new).]
C. If the insurer, under section 6457, challenges the adjusted risk-based capital report that indicates the event in paragraph
A, the notification by the superintendent to the insurer that the superintendent has, after a hearing, rejected the insurer's
challenge.
[1993, c. 634, Pt. A, §1 (new).]
[1997, c. 81, §7 (amd).]
2. Contents of risk-based capital plan. When a company action level event occurs, the insurer shall submit to the superintendent a risk-based capital plan that
must:
A. Identify the conditions in the insurer's business that contribute to the company action level event;
[1993, c. 634, Pt. A, §1 (new).]
B. Contain proposals of corrective actions that the insurer intends to take and that are expected to result in the elimination
of the company action level event;
[1993, c. 634, Pt. A, §1 (new).]
C. Provide projections of the insurer's financial results in the current year and at least the 4 succeeding years, with consideration
given to the effect of implementing and not implementing the proposed corrective actions, including projections of statutory
operating income, net income, capital and surplus. The projections for new and renewal business may include separate projections
for each major line of business and separately identify each significant income, expense and benefit component;
[1993, c. 634, Pt. A, §1 (new).]
D. Identify the key assumptions impacting the insurer's projections and the sensitivity of the projections to the assumptions;
and
[1993, c. 634, Pt. A, §1 (new).]
E. Identify the quality of, and the problems associated with, the insurer's business, including but not limited to its assets,
anticipated business growth and associated surplus strain, extraordinary exposure to risk, mix of business and use of reinsurance
in each case, if any.
[1993, c. 634, Pt. A, §1 (new).]
[1993, c. 634, Pt. A, §1 (new).]
3. Submission of risk-based capital plan. The risk-based capital plan must be submitted:
A. Within 45 days after the company action level event; or
[1999, c. 113, §26 (amd).]
B. If the insurer challenges an adjusted risk-based capital report under section 6457, within 45 days after notification to
the insurer that the superintendent has, after a hearing, rejected the insurer's challenge.
[1993, c. 634, Pt. A, §1 (new).]
[1999, c. 113, §26 (amd).]
4. Review by superintendent. Within 60 days after the submission by an insurer of a risk-based capital plan to the superintendent pursuant to this section,
the superintendent shall notify the insurer whether the risk-based capital plan may be implemented or is, in the judgment
of the superintendent, unsatisfactory. If the superintendent determines the risk-based capital plan is unsatisfactory, the
notification to the insurer must set forth the reasons for the determination and may set forth proposed revisions that will
render the risk-based capital plan satisfactory, in the judgment of the superintendent. Upon notification from the superintendent,
the insurer shall prepare a revised risk-based capital plan, which may incorporate by reference any revisions proposed by
the superintendent, and shall submit the revised risk-based capital plan to the superintendent:
A. Within 45 days after the notification from the superintendent; or
[1993, c. 634, Pt. A, §1 (new).]
B. If the insurer challenges the notification from the superintendent under section 6457, within 45 days after a notification
to the insurer that the superintendent has, after a hearing, rejected the insurer's challenge.
[1993, c. 634, Pt. A, §1 (new).]
[1993, c. 634, Pt. A, §1 (new).]
5. Notification that plan is unsatisfactory. In the event of a notification by the superintendent to an insurer that the insurer's risk-based capital plan or revised
risk-based capital plan is unsatisfactory, the superintendent may at the superintendent's discretion, subject to the insurer's
right to a hearing under section 6457, specify in the notification that the notification constitutes a regulatory action level
event.
[1993, c. 634, Pt. A, §1 (new).]
6. Duty to file copies of plan with other states. A domestic insurer that files a risk-based capital plan or revised risk-based capital plan with the superintendent pursuant
to this section shall file a copy of the risk-based capital plan or revised risk-based capital plan with the insurance regulator
in any state in which the insurer is authorized to do business if:
A. That state has a risk-based capital provision substantially similar to that required by this chapter; and
[1993, c. 634, Pt. A, §1 (new).]
B. The insurance regulator of that state has notified the insurer of its request for the filing in writing, in which case the
insurer shall file a copy of the risk-based capital plan or revised risk-based capital plan in that state no later than the
later of:
(1) Fifteen days after the receipt of notice to file a copy of its risk-based capital plan or revised risk-based capital
plan with the state; or
(2) The date on which the risk-based capital plan or revised risk-based capital plan is filed with the superintendent.
[1999, c. 113, §27 (amd).]
[1999, c. 113, §27 (amd).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6454. Regulatory action level event
Title 24-A: MAINE INSURANCE CODE
Chapter 79: RISK-BASED CAPITAL STANDARDS (HEADING: PL 1993, c. 634, Pt. A, @1 (new))
§6454. Regulatory action level event
1. Regulatory action level event; defined. "Regulatory action level event" means, with respect to any insurer, any of the following events:
A. The filing of a risk-based capital report by the insurer that indicates that the insurer's total adjusted capital is greater
than or equal to its authorized control level risk-based capital but less than its regulatory action level risk-based capital;
[1993, c. 634, Pt. A, §1 (new).]
B. Provided the insurer does not challenge the adjusted risk-based capital report under section 6457, the notification by the
superintendent to an insurer of an adjusted risk-based capital report that indicates the event in paragraph A;
[1993, c. 634, Pt. A, §1 (new).]
C. If the insurer, under section 6457, challenges an adjusted risk-based capital report that indicates the event in paragraph
A, the notification by the superintendent to the insurer that the superintendent has, after a hearing, rejected the insurer's
challenge;
[1993, c. 634, Pt. A, §1 (new).]
D. The failure of the insurer to file a risk-based capital report by the filing date, unless the insurer has provided an explanation
for the failure that is satisfactory to the superintendent and has cured the failure within 10 days after the filing date;
[1993, c. 634, Pt. A, §1 (new).]
E. The failure of the insurer to submit a risk-based capital plan to the superintendent within the time period set forth in
section 6453, subsection 3;
[1993, c. 634, Pt. A, §1 (new).]
F. Provided the insurer has not challenged the determination under section 6457, the notification by the superintendent to
the insurer that:
(1) The risk-based capital plan or revised risk-based capital plan submitted by the insurer is, in the judgment of the superintendent,
unsatisfactory; and
(2) The superintendent's finding unless vacated or stayed constitutes a regulatory action level event with respect to the
insurer;
[1999, c. 113, §28 (amd).]
G. If the insurer, under section 6457, challenges a determination by the superintendent under paragraph F, the notification
by the superintendent to the insurer that the superintendent has, after a hearing, rejected that challenge;
[1993, c. 634, Pt. A, §1 (new).]
H. Provided the insurer has not challenged the determination under section 6457, the notification by the superintendent to
the insurer that the insurer has failed to adhere to its risk-based capital plan or revised risk-based capital plan, but only
if that failure has a substantial adverse effect on the ability of the insurer to eliminate the company action level event
or regulatory action level event in accordance with its risk-based capital plan or revised risk-based capital plan and the
superintendent has so stated in the notification; or
[1999, c. 113, §28 (amd).]
I. If the insurer, under section 6457, challenges a determination by the superintendent under paragraph H, the notification
by the superintendent to the insurer that the superintendent has, after a hearing, rejected the challenge unless the failure
of the insurer to adhere to its risk-based capital plan or revised risk-based capital plan has no substantial adverse effect
on the ability of the insurer to eliminate the company action level event or regulatory action level event with respect to
the insurer.
[1999, c. 113, §28 (amd).]
[1999, c. 113, §28 (amd).]
2. Superintendent duties; regulatory action level event. When a regulatory action level event occurs, the superintendent shall:
A. Require the insurer to submit a risk-based capital plan or, if applicable, a revised risk-based capital plan;
[1993, c. 634, Pt. A, §1 (new).]
B. Perform such examination or analysis as the superintendent considers 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
[1993, c. 634, Pt. A, §1 (new).]
C. Subsequent to the examination or analysis, issue a corrective order specifying corrective actions that the superintendent
considers necessary.
[1993, c. 634, Pt. A, §1 (new).]
[1993, c. 634, Pt. A, §1 (new).]
3. Determination of corrective actions. In determining corrective actions, the superintendent may take into account those factors that the superintendent considers
relevant with respect to the insurer based upon the superintendent'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 risk-based capital plan or revised risk-based capital plan must be submitted:
A. Within 45 days after the occurrence of the regulatory action level event;
[1993, c. 634, Pt. A, §1 (new).]
B. If the insurer challenges an adjusted risk-based capital report under section 6457 and the challenge is not, in the judgment
of the superintendent, frivolous, within 45 days after the notification to the insurer that the superintendent has, after
a hearing, rejected the insurer's challenge; or
[1993, c. 634, Pt. A, §1 (new).]
C. If the insurer challenges a revised risk-based capital plan under section 6457, within 45 days after notification to the
insurer that the superintendent has, after a hearing, rejected the insurer's challenge.
[1993, c. 634, Pt. A, §1 (new).]
[1993, c. 634, Pt. A, §1 (new).]
4. Consultants. The superintendent may retain actuaries, investment experts and other consultants as may be necessary in the judgment of
the superintendent 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 the corrective order with respect to the insurer. For
insurers offering managed care plans as defined in section 4301-A, the analysis of the insurer's operations may include an
analysis of its contractual relationships with providers and the ability of the providers to fulfill their contractual obligations.
The fees, costs and expenses relating to consultants must be borne by the affected insurer or such other party as directed
by the superintendent.
[RR 2001, c. 1, §38 (cor).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6455. Authorized control level event
Title 24-A: MAINE INSURANCE CODE
Chapter 79: RISK-BASED CAPITAL STANDARDS (HEADING: PL 1993, c. 634, Pt. A, @1 (new))
§6455. Authorized control level event
1. Authorized control level event; defined. "Authorized control level event" means any of the following events:
A. The filing of a risk-based capital report by the insurer that indicates that the insurer's total adjusted capital is greater
than or equal to its mandatory control level risk-based capital but less than its authorized control level risk-based capital;
[1993, c. 634, Pt. A, §1 (new).]
B. Provided the insurer does not challenge the adjusted risk-based capital report under section 6457, the notification by the
superintendent to the insurer of an adjusted risk-based capital report that indicates the event in paragraph A;
[1993, c. 634, Pt. A, §1 (new).]
C. If the insurer, under section 6457, challenges an adjusted risk-based capital report that indicates the event in paragraph
A, the notification by the superintendent to the insurer that the superintendent has, after a hearing, rejected the insurer's
challenge;
[1993, c. 634, Pt. A, §1 (new).]
D. Provided the insurer has not challenged the corrective order under section 6457, the failure of the insurer to respond,
in a manner satisfactory to the superintendent, to a corrective order; or
[1993, c. 634, Pt. A, §1 (new).]
E. If the insurer has challenged a corrective order under section 6457 and the superintendent has, after a hearing, rejected
the challenge or modified the corrective order, the failure of the insurer to respond, in a manner satisfactory to the superintendent,
to the corrective order subsequent to rejection or modification by the superintendent.
[1993, c. 634, Pt. A, §1 (new).]
[1993, c. 634, Pt. A, §1 (new).]
2. Superintendent duties; authorized control level event. When an authorized control level event occurs, the superintendent shall:
A. Take those actions that are required under section 6454 regarding an insurer with respect to which a regulatory action level
event has occurred; or
[1993, c. 634, Pt. A, §1 (new).]
B. If the superintendent considers it to be in the best interests of the policyholders and creditors of the insurer and of
the public, take those actions that are necessary to cause the insurer to be placed under regulatory control under chapter
57. If the commissioner takes those actions, the authorized control level event is deemed sufficient grounds for the superintendent
to take action under chapter 57, and the superintendent has the rights, powers and duties with respect to the insurer as are
set forth in chapter 57. If the superintendent takes actions under this paragraph pursuant to an adjusted risk-based capital
report, the insurer is entitled to those protections that are afforded to insurers under the provisions of chapter 57, subchapter
II pertaining to summary proceedings.
[1993, c. 634, Pt. A, §1 (new).]
[1993, c. 634, Pt. A, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6456. Mandatory control level event
Title 24-A: MAINE INSURANCE CODE
Chapter 79: RISK-BASED CAPITAL STANDARDS (HEADING: PL 1993, c. 634, Pt. A, @1 (new))
§6456. Mandatory control level event
1. Mandatory control level event; defined. "Mandatory control level event" means any of the following events:
A. The filing of a risk-based capital report that indicates that the insurer's total adjusted capital is less than its mandatory
control level risk-based capital;
[1993, c. 634, Pt. A, §1 (new).]
B. Provided the insurer does not challenge the adjusted risk-based capital report under section 6457, the notification by the
superintendent to the insurer of an adjusted risk-based capital report that indicates the event in paragraph A; or
[1993, c. 634, Pt. A, §1 (new).]
C. If the insurer, under section 6457, challenges an adjusted risk-based capital report that indicates the event in paragraph
A, the notification by the superintendent to the insurer that the superintendent has, after a hearing, rejected the insurer's
challenge.
[1993, c. 634, Pt. A, §1 (new).]
[1993, c. 634, Pt. A, §1 (new).]
2. Superintendent duties; mandatory control level event. When a mandatory control level event occurs, the superintendent shall take those actions that are necessary to cause the
insurer to be placed under regulatory control under chapter 57. If the superintendent takes those actions, the mandatory
control level event is deemed sufficient grounds for the superintendent to take action under chapter 57, and the superintendent
has the rights, powers and duties with respect to the insurer as are set forth in chapter 57. If the superintendent takes
actions pursuant to an adjusted risk-based capital report, the insurer is entitled to those protections that are afforded
to insurers under the provisions of chapter 57, subchapter II pertaining to summary proceedings. Notwithstanding any provision
of this section to the contrary, the superintendent may forego action for up to 90 days after the mandatory control level
event if the superintendent finds there is a reasonable expectation that the mandatory control level event may be eliminated
within the 90-day period, or, in the case of a property and casualty insurer that is not authorized to write new business,
the superintendent may allow the insurer to continue to run off its existing business under the superintendent's supervision.
[1997, c. 81, §8 (amd).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6457. Hearings
Title 24-A: MAINE INSURANCE CODE
Chapter 79: RISK-BASED CAPITAL STANDARDS (HEADING: PL 1993, c. 634, Pt. A, @1 (new))
§6457. Hearings
1. Right to hearing. An insurer has the right to a departmental hearing, on record, at which the insurer may challenge any determination or action
by the superintendent upon:
A. Notification to an insurer by the superintendent of an adjusted risk-based capital report;
[1993, c. 634, Pt. A, §1 (new).]
B. Notification to an insurer by the superintendent that:
(1) The insurer's risk-based capital plan or revised risk-based capital plan is unsatisfactory; and
(2) That notification constitutes a regulatory action level event with respect to the insurer;
[1993, c. 634, Pt. A, §1 (new).]
C. Notification to any insurer by the superintendent 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; or
[1993, c. 634, Pt. A, §1 (new).]
D. Notification to an insurer by the superintendent of a corrective order with respect to the insurer.
[1993, c. 634, Pt. A, §1 (new).]
The insurer must notify the superintendent of its request for a hearing within 5 days after the notification by the superintendent
under paragraph A, B, C or D. Upon receipt of the insurer's request for a hearing, the superintendent shall set a date for
the hearing, which may not be less than 10 or more than 30 days after the date of the insurer's request.
[1993, c. 634, Pt. A, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6458. Confidentiality and prohibition on announcements
Title 24-A: MAINE INSURANCE CODE
Chapter 79: RISK-BASED CAPITAL STANDARDS (HEADING: PL 1993, c. 634, Pt. A, @1 (new))
§6458. Confidentiality and prohibition on announcements
1. Confidentiality. The following constitute information that might be damaging to the insurer if made available to its competitors and must
be kept confidential by the superintendent:
A. Risk-based capital reports, with respect to any domestic insurer or foreign insurer, that are filed with the superintendent,
to the extent that the information in the reports is not required to be set forth in a publicly available annual statement
schedule; and
[1993, c. 634, Pt. A, §1 (new).]
B. Risk-based capital plans, with respect to any domestic insurer or foreign insurer, that are filed with the superintendent,
including the results or report of any examination or analysis of an insurer performed pursuant to this chapter and any corrective
order issued by the superintendent pursuant to the examination or analysis.
[1993, c. 634, Pt. A, §1 (new).]
The information listed in paragraph A or B may not be made public or be subject to subpoena, other than by the superintendent
and then only for the purpose of enforcement actions taken by the superintendent pursuant to this chapter or any other provision
of the insurance laws of this State.
[1993, c. 634, Pt. A, §1 (new).]
2. Prohibition on dissemination of information regarding risk-based capital levels. Except as otherwise required under this chapter, making, publishing, disseminating, circulating or placing before the public,
or causing, directly or indirectly, to be made, published, disseminated, circulated or placed before the public, in a newspaper,
magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television
station, or in any other way, an advertisement, announcement or statement containing an assertion or representation with regard
to the risk-based capital levels of any insurer, or of any component derived in the calculation of risk-based capital levels,
by any insurer, agent, broker or other person engaged in any manner in the insurance business would be misleading and is prohibited;
provided, however, that if any materially false statement with respect to the comparison between an insurer's total adjusted
capital to its risk-based capital levels or an inappropriate comparison of any other amount to the insurer's risk-based capital
levels is published in any written publication and the insurer is able to demonstrate to the superintendent with substantial
proof the falsity of that statement, or the inappropriateness, as the case may be, then the insurer may publish an announcement
in a written publication if the sole purpose of the announcement is to rebut the materially false statement.
[1993, c. 634, Pt. A, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6459. Supplemental provisions
Title 24-A: MAINE INSURANCE CODE
Chapter 79: RISK-BASED CAPITAL STANDARDS (HEADING: PL 1993, c. 634, Pt. A, @1 (new))
§6459. Supplemental provisions
1. Existing authority supplemented. The provisions of this chapter are supplemental to any other provisions of the laws of this State and do not preclude or
limit any other powers or duties of the superintendent under those laws, including, but not limited to, sections 417, 3423
and 3424 and chapter 57.
[1997, c. 81, §9 (new).]
2. Rules. The superintendent may adopt rules to carry out the purposes of this chapter. Rules adopted pursuant to this chapter are
routine technical rules as defined in Title 5, chapter 375, subchapter II-A.
[1997, c. 81, §9 (new).]
3. Exemptions. The superintendent may exempt from the application of this chapter any domestic property and casualty insurer that:
A. Writes business only in the State;
[1997, c. 81, §9 (new).]
B. Writes direct annual premium of $2,000,000 or less; and
[1997, c. 81, §9 (new).]
C. Assumes no reinsurance in excess of 5% of direct premium written.
[1997, c. 81, §9 (new).]
[1997, c. 81, §9 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6460. Foreign insurers
Title 24-A: MAINE INSURANCE CODE
Chapter 79: RISK-BASED CAPITAL STANDARDS (HEADING: PL 1993, c. 634, Pt. A, @1 (new))
§6460. Foreign insurers
1. Submission of risk-based capital report. Upon the written request of the superintendent, a foreign insurer shall submit to the superintendent a risk-based capital
report as of the end of the previous calendar year by the later of:
A. The date a risk-based capital report would be required to be filed by a domestic insurer under this chapter; or
[1993, c. 634, Pt. A, §1 (new).]
B. Fifteen days after the request is received by the foreign insurer.
[1993, c. 634, Pt. A, §1 (new).]
At the written request of the superintendent, a foreign insurer shall promptly submit to the superintendent a copy of any
risk-based capital plan that is filed with the insurance superintendent of any other state.
[1993, c. 634, Pt. A, §1 (new).]
2. Company action level event or regulatory action level event. When a company action level event or regulatory action level event with respect to a foreign insurer occurs, as determined
under laws governing risk-based capital applicable in the state of domicile of the insurer, or, if no such risk-based capital
provision is in force in that state, under the provisions of this chapter, if the insurance superintendent of the state of
domicile of the foreign insurer fails to require the foreign insurer to file a risk-based capital plan in the manner specified
under the laws governing risk-based capital in that state, or, if no such risk-based capital provision is in force in that
state, under this chapter, the superintendent may require the foreign insurer to file a risk-based capital plan with the superintendent.
In this event, the failure of the foreign insurer to file a risk-based capital plan with the superintendent is grounds to
order the insurer to desist from writing new insurance business in this State.
[1993, c. 634, Pt. A, §1 (new).]
3. Mandatory control level event. When a mandatory control level event with respect to any foreign insurer occurs, if a domiciliary receiver has not been
appointed with respect to the foreign insurer under the rehabilitation and liquidation statute applicable in the state of
domicile of the foreign insurer, the superintendent may make application to the Superior Court under chapter 57 with respect
to the liquidation of property of foreign insurers in this State, and the occurrence of the mandatory control level event
is considered adequate grounds for the application.
[1993, c. 634, Pt. A, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
Title 24-A - §6461. Notices
Title 24-A: MAINE INSURANCE CODE
Chapter 79: RISK-BASED CAPITAL STANDARDS (HEADING: PL 1993, c. 634, Pt. A, @1 (new))
§6461. Notices
A notice by the superintendent to an insurer that may result in regulatory action under this chapter is effective upon dispatch
if transmitted by registered or certified mail or, in the case of any other transmission, is effective upon the insurer's
receipt of the notice.
[1993, c. 634, Pt. A, §1 (new).]
The Revisor's Office cannot provide legal advice or
interpretation of Maine law to the public. If you need legal
advice, please consult
a qualified attorney.
Office of the Revisor of Statutes
7 State House Station
State House Room 108
Augusta, Maine 04333-0007
This page created on: 2005-10-01
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