MS HB1204

Amends Mississippi Code Section 83-5-405 to increase the risk-based capital (RBC) requirement multiplier for life and/or health insurers from 2.5 to 3.0 for company action level events.

A company action level event now occurs when a life and/or health insurer's total adjusted capital is between its company action level RBC and 3.0 times its authorized control level RBC (previously 2.5) and has a negative trend.

Insurers experiencing a company action level event must prepare and submit an RBC plan to the commissioner within 45 days identifying conditions contributing to the event and proposing corrective actions.

The commissioner has 60 days to review the submitted RBC plan and notify the insurer whether it is satisfactory or requires revisions, with the insurer having 45 days to submit a revised plan if needed.

The act takes effect July 1, 2016.