40-2d01. Risk-based capital requirements; definitions. As used in K.S.A. 40-2d01 through 40-2d30, and amendments thereto: (a) “Adjusted RBC report” means an RBC report which has been adjusted by the commissioner in accordance with K.S.A. 40-2d04, and amendments thereto. (b) “Corrective order” means an order issued by the commissioner specifying corrective actions which the commissioner has […]
40-2d02. Risk-based capital report. (a) Except as provided in paragraph (b), every domestic health organization shall prepare and submit to the commissioner, on or before March 1, a report of its RBC levels as of the end of the calendar year just ended in a form and containing such information as is required by the […]
40-2d03. Determination of risk-based capital. (a) A health organization’s RBC shall be determined in accordance with the formula set forth in the RBC instructions. The formula shall take into account and may adjust for the covariance between: (1) Asset risk; (2) credit risk; (3) underwriting risk; and (4) all other business risks and such other […]
40-2d04. Risk-based capital report; adjustment. If a domestic health organization files an RBC report which in the judgment of the commissioner is inaccurate, the commissioner shall adjust the RBC report to correct the inaccuracy and shall notify such health organization of the adjustment. The notice shall contain a statement of the reason for the adjustment. […]
40-2d05. Company action level event; defined. “Company action level event” means any of the following events: (a) The filing of an RBC report by a health organization which indicates that: (1) The health organization’s total adjusted capital is greater than or equal to its regulatory action level RBC but less than its company action level […]
40-2d06. Submission of RBC plan. In the event of a company action level event, the health organization shall prepare and submit to the commissioner an RBC plan which shall: (a) Identify the conditions in the health organization’s operation which contribute to the company action level event; (b) contain proposals of corrective actions which the health […]
40-2d07. Risk-based capital plan; submission. The RBC plan shall be submitted: (a) Within 45 days of the company action level event; or (b) within 45 days after notification to the health organization that the commissioner has rejected the health organization’s challenge to an adjusted RBC report pursuant to K.S.A. 40-2d19, and amendments thereto. History: L. […]
40-2d08. Same; notification by commissioner. Within 60 days after the submission by a health organization of an RBC plan to the commissioner, the commissioner shall notify the health organization whether the RBC plan shall be implemented or is, in the judgment of the commissioner, unsatisfactory. If the commissioner determines the RBC plan is unsatisfactory, the […]
40-2d09. Same; notification of a regulatory action event. In the event of a notification by the commissioner to a health organization that the health organization’s RBC plan or revised RBC plan is unsatisfactory, the commissioner, subject to the health organization’s right to a hearing under K.S.A. 40-2d19, and amendments thereto, may specify in the notification […]
40-2d10. Domestic health organization to file RBC plan in any state authorized to do business. Every domestic health organization that files an RBC plan or revised RBC plan with the commissioner shall file a copy of the RBC plan or revised RBC plan with the insurance commissioner in any state in which the health organization […]
40-2d11. Regulatory action level event. “Regulatory action level event” means, with respect to any health organization, any of the following events: (a) The filing of an RBC report by the health organization which indicates that the health organization’s total adjusted capital is greater than or equal to its authorized control level RBC but less than […]
40-2d12. Same; commissioner’s duties in regulatory action level event. In the event of a regulatory action level event, the commissioner shall: (a) Require the health organization to prepare and submit an RBC plan or, if applicable, a revised RBC plan; (b) perform such examination or analysis as the commissioner deems necessary of the assets, liabilities […]
40-2d13. Corrective actions; submission of RBC plans, when. In determining corrective actions, the commissioner may take into account such factors as are deemed relevant with respect to the health organization based upon the commissioner’s examination or analysis of the assets, liabilities and operations of the health organization, including, but not limited to, the results of […]
40-2d14. Review of RBC plans; expenses. The commissioner may retain actuaries and investment experts and other consultants as may be necessary in the judgment of the commissioner to review the health organization’s RBC plan or revised RBC plan, examine or analyze the assets, liabilities and operations of the health organization and formulate the corrective order […]
40-2d15. Authorized control level event; defined. “Authorized control level event” means any of the following events: (a) The filing of an RBC report by the health organization which indicates that the health organization’s total adjusted capital is greater than or equal to its mandatory control level RBC but less than its authorized control level RBC; […]
40-2d16. Same; commissioner’s duties in authorized control level event. In the event of an authorized control level event with respect to a health organization, the commissioner: (a) Shall take such actions as are required under K.S.A. 40-2d11 through 40-2d14, and amendments thereto, regarding a health organization with respect to which a regulatory action level event […]
40-2d17. Mandatory control event; defined. “Mandatory control event” means any of the following events: (a) The filing of an RBC report by the health organization which indicates that the health organization’s total adjusted capital is less than its mandatory control level RBC; (b) the notification by the commissioner to the health organization of an adjusted […]
40-2d18. Same; commissioner’s actions. In the event of a mandatory control level event the commissioner shall take actions as are necessary to cause the health organization to be placed under regulatory control under K.S.A. 40-3605 et seq., and amendments thereto. In that event, the mandatory control level event shall be deemed sufficient grounds for the […]
40-2d19. Hearing under Kansas administrative procedure act. (a) Upon notification to a health organization by the commissioner of an adjusted RBC report; or (b) upon notification to an health organization by the commissioner that: (1) The health organization’s RBC plan or revised RBC plan is unsatisfactory; and (2) such notification constitutes a regulatory action level […]
40-2d20. RBC reports, plans and corrective orders are confidential; not to be used for rate making. (a) All RBC reports, RBC plans and any corrective orders, including the working papers and the results of any analysis of a health organization performed under this act shall be kept confidential by the commissioner. This information shall not […]
