SB202 Summary

• Establishes Risk-Based Capital (RBC) requirements for health organizations in Delaware, creating a new Sub-Chapter II under Chapter 58 of Title 18 with regulatory thresholds at Company Action Level, Regulatory Action Level, Authorized Control Level, and Mandatory Control Level.

• Requires domestic health organizations to file annual RBC reports by March 1 (or required annual statement filing date if later) calculating capital requirements based on asset risk, credit risk, underwriting risk, and other business risks per NAIC instructions.

• Mandates health organizations triggering Company Action Level events to submit comprehensive RBC plans within 45 days identifying conditions and proposing corrective actions, with Commissioner approval or rejection within 60 days.

• Establishes escalating regulatory intervention: Regulatory Action Level events trigger Commissioner examination and corrective orders; Authorized Control Level events allow placement under regulatory control; Mandatory Control Level events require immediate regulatory control under Chapter 59.

• Designates all RBC reports and plans as confidential, privileged information exempt from public disclosure and discovery; prohibits use of RBC data in rate-setting proceedings, and provides Commissioner immunity for actions taken in performance of RBC duties.