{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-6940","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-6940","heading":"Company action level event - Definition - Submission of","body":"RBC plan - Insurance Commissioner's determination - Notice and\n\nhearing.\n\nA. “Company Action Level Event” means any of the following\n\nevents:\n\n1. The filing of an RBC report by a health maintenance\n\norganization that indicates that the health maintenance\n\norganization’s total adjusted capital is greater than or equal to\n\nits Regulatory Action Level RBC, but less than its Company Action\n\nLevel RBC;\n\n2. Notification by the Insurance Commissioner to the health\n\nmaintenance organization of an adjusted RBC report that indicates an\n\nevent in paragraph 1 of this subsection, provided the health\n\nmaintenance organization does not challenge the adjusted RBC report\n\nunder Section 6944 of this title;\n\n3. If, pursuant to the provisions of Section 6944 of this\n\ntitle, a health maintenance organization challenges an adjusted RBC\n\nreport that indicates the event in paragraph 1 of this subsection,\n\nthe notification by the Commissioner to the health maintenance\n\norganization that the Commissioner has, after a hearing, rejected\n\nthe health maintenance organization’s challenge; or\n\n4. If a health maintenance organization has total adjusted\n\ncapital which is greater than or equal to its Company Action Level\n\nRBC but less than the product of its Authorized Control Level RBC\n\nand 3.0 and triggers the trend test determined in accordance with\n\nthe trend test calculation included in the Health RBC instructions.\n\nB. In the event of a Company Action Level Event, the health\n\nmaintenance organization shall prepare and submit to the\n\nCommissioner an RBC plan that shall:\n\n1. Identify the conditions that contribute to the Company\n\nAction Level Event;\n\n2. Contain proposals of corrective actions that the health\n\nmaintenance organization intends to take and that would be expected\n\nto result in the elimination of the Company Action Level Event;\n\n3. Provide projections of the health maintenance organization’s\n\nfinancial results in the current year and at least the two (2)\n\nsucceeding years, both in the absence of proposed corrective actions\n\nand giving effect to the proposed corrective actions, including\n\nprojections of statutory balance sheets, operating income, net\n\nincome, capital and surplus, and RBC levels. The projections for\n\nboth new and renewal business might include separate projections for\n\neach major line of business and separately identify each significant\n\nincome, expense and benefit component;\n\n4. Identify the key assumptions affecting the health\n\nmaintenance organization’s projections and the sensitivity of the\n\nprojections to the assumptions; and\n\n5. Identify the quality of, and problems associated with, the\n\nhealth maintenance organization’s business including, but not\n\nlimited to, its assets, anticipated business growth and associated\n\nsurplus strain, extraordinary exposure to risk, mix of business and\n\nuse of reinsurance, if any, in each case.\n\nC. The RBC plan shall be submitted:\n\n1. Within forty-five (45) days of the Company Action Level\n\nEvent; or\n\n2. If the health maintenance organization challenges an\n\nadjusted RBC report pursuant to the provisions of Section 6944 of\n\nthis title, within forty-five (45) days after notification to the\n\nhealth maintenance organization that the Commissioner has, after a\n\nhearing, rejected the health maintenance organization’s challenge.\n\nD. Within sixty (60) days after the submission by a health\n\nmaintenance organization of an RBC plan to the Commissioner, the\n\nCommissioner shall notify the health maintenance organization\n\nwhether the RBC plan will be implemented or whether, in the judgment\n\nof the Commissioner, the RBC plan is unsatisfactory. If the\n\nCommissioner determines that the RBC plan is unsatisfactory, the\n\nnotification to the health maintenance organization shall state the\n\nreasons for the determination, and may list proposed revisions that\nhe\n\nCommissioner shall notify the health maintenance organization\n\nwhether the RBC plan will be implemented or whether, in the judgment\n\nof the Commissioner, the RBC plan is unsatisfactory. If the\n\nCommissioner determines that the RBC plan is unsatisfactory, the\n\nnotification to the health maintenance organization shall state the\n\nreasons for the determination, and may list proposed revisions that\n\nwill, in the judgment of the Commissioner, render the RBC plan\n\nsatisfactory. Upon notification from the Commissioner, the health\n\nmaintenance organization shall prepare a revised RBC plan, that may\n\nincorporate by reference any revisions proposed by the Commissioner,\n\nand shall submit the revised RBC plan to the Commissioner:\n\n1. Within forty-five (45) days after the notification from the\n\nCommissioner; or\n\n2. If the health maintenance organization challenges the\n\nnotification from the Commissioner pursuant to the provisions of\n\nSection 6944 of this title, within forty-five (45) days after a\n\nnotification to the health maintenance organization that the\n\nCommissioner has, after a hearing, rejected the health maintenance\n\norganization’s challenge.\n\nE. In the event of a notification by the Commissioner to a\n\nhealth maintenance organization that the health maintenance\n\norganization’s RBC plan or revised RBC plan is unsatisfactory, the\n\nCommissioner may, at the Commissioner’s discretion and subject to\n\nthe health maintenance organization’s right to a hearing pursuant to\n\nthe provisions of Section 6944 of this title, specify in the\n\nnotification that the notification constitutes a Regulatory Action\n\nLevel Event.\n\nF. Every domestic health maintenance organization that files an\n\nRBC plan or revised RBC plan with the Commissioner shall file a copy\n\nof the RBC plan or revised RBC plan with the Insurance Commissioner\n\nin any state in which the health maintenance organization is\n\nauthorized to do business if:\n\n1. The state has an RBC provision substantially similar to\n\nsubsection A of Section 6945 of this title; and\n\n2. The Insurance Commissioner of that state has notified the\n\nhealth maintenance organization of its request for the filing in\n\nwriting, in which case the health maintenance organization shall\n\nfile a copy of the RBC plan or revised RBC plan in that state no\n\nlater than the later of:\n\na. fifteen (15) days after the receipt of notice to file\n\na copy of its RBC plan or revised RBC plan with the\n\nstate, or\n\nb. the date on which the RBC plan or revised RBC plan is\n\nfiled under subsections C and D of this section.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"d9075918e256c4ec1ba39b012938906ed1b8aa7c3feb2f3327f946ad6a296e46","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-6939","next":"us-ok/okla.-stat.-tit.-36-36-6941"},"notice":"GroundRules: Original legal text. Not legal advice."}