MS SB2189

Changes the risk-based capital (RBC) threshold multiplier for life and/or health insurers from 2.5 to 3.0 when determining if a company action level event has occurred.

A company action level event for life and/or health insurers now occurs when total adjusted capital is greater than or equal to the company action level RBC but less than the product of authorized control level RBC and 3.0 (instead of 2.5) and has a negative trend.

Requires insurers experiencing a company action level event to submit an RBC plan to the commissioner within 45 days identifying contributing conditions and proposing corrective actions with financial projections.

Commissioner must review and approve or reject submitted RBC plans within 60 days, and insurers must submit revised plans within 45 days if the initial plan is deemed unsatisfactory.

Effective date: July 1, 2016.