{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-5503.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-5503.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-5503.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-5503.html"}],"law_id":72298,"edition_id":1,"section_id":72298,"structure_id":14894,"section_number":"38.2-5503","catch_line":"Company Action Level Event","history":"1995, c. 789; 2000, c. 47; 2007, c. 360; 2012, c. 156.","full_text":"A\n\n“Company Action Level Event” means any of the following events:1\n\nThe filing of an RBC Report by a licensee which indicates that:\n\t\t\t\ta. The licensee’s Total Adjusted Capital is greater than or equal to its Regulatory Action Level RBC but less than its Company Action Level RBC;\n\t\t\t\tb. If a life and health insurer, the insurer has Total Adjusted Capital which is greater than or equal to its Company Action Level RBC but less than the product of its Authorized Control Level RBC and 3.0 and has a negative trend;\n\t\t\t\tc. If a property and casualty insurer, the insurer has Total Adjusted Capital that is greater than or equal to its Company Action Level RBC but less than the product of its Authorized Control Level RBC and 3.0 and triggers the trend test determined in accordance with the Trend Test Calculation included in the Property and Casualty RBC instructions; or\n\t\t\t\td. If a health organization, the health organization has Total Adjusted Capital that is greater than or equal to its Company Action Level RBC but less than the product of its Authorized Control Level RBC and 3.0 and triggers the trend test determined in accordance with the Trend Test Calculation included in the Health RBC instructions;2\n\nThe notification by the Commission to the licensee of an Adjusted RBC Report that indicates the event in subdivision A 1 a, provided the licensee does not challenge the Adjusted RBC Report under § 38.2-5507; or3\n\nIf, pursuant to § 38.2-5507, the licensee challenges an Adjusted RBC Report that indicates the event in subdivision A 1 a, the notification by the Commission to the licensee that the Commission has, after a hearing, rejected the licensee’s challenge.B\n\nIn the event of a Company Action Level Event, the licensee shall prepare and submit to the Commission an RBC Plan which shall:1\n\nIdentify the conditions in the licensee which contribute to the Company Action Level Event;2\n\nContain proposals of corrective actions which the licensee intends to take and would be expected to result in the elimination of the Company Action Level Event;3\n\nProvide projections of the licensee’s financial results in the current year and for at least the four succeeding years if the licensee is a life and health insurer or a property and casualty insurer, or at least two succeeding years if the licensee is a health organization, both in the absence of proposed corrective actions and giving effect to the proposed corrective actions, including projections of statutory balance sheets, operating income, net income, capital and surplus, and RBC levels. If appropriate, the projections for both new and renewal business shall include separate projections for each major line of business and separately identify each significant income, expense and benefit component;4\n\nIdentify the key assumptions impacting the licensee’s projections and the sensitivity of the projections to the assumptions; and5\n\nIdentify the quality of, and problems associated with, the licensee’s business, including but not limited to its assets, anticipated business growth and associated surplus strain, extraordinary exposure to risk, mix of business and use of reinsurance, if any, in each case.C\n\nThe RBC Plan shall be submitted:1\n\nWithin forty-five days of the Company Action Level Event; or2\n\nIf the licensee challenges an Adjusted RBC Report pursuant to § 38.2-5507, within forty-five days after notification to the licensee that the Commission has, after a hearing, rejected the licensee’s challenge.D\n\nWithin sixty days after the submission by a licensee of an RBC Plan to the Commission, the Commission shall notify the licensee whether the RBC Plan shall be implemented or is, in the judgment of the Commission, unsatisfactory. If the Commission determines the RBC Plan is unsatisfactory, the notification to the licensee shall set forth the reasons for the determination, and may set forth proposed revisions which will render the RBC Plan satisfactory, in the judgment of the Commission. Upon notification from the Commission, the licensee shall prepare a Revised RBC Plan, which may incorporate by reference any revisions proposed by the Commission, and shall submit the Revised RBC Plan to the Commission:1\n\nWithin forty-five days after the notification from the Commission; or2\n\nIf the licensee challenges the notification from the Commission under § 38.2-5507, within forty-five days after a notification to the licensee that the Commission has, after a hearing, rejected the licensee’s challenge.E\n\nIn the event of a notification by the Commission to a licensee that the licensee’s RBC Plan or Revised RBC Plan is unsatisfactory, the Commission may at the Commission’s discretion, subject to the licensee’s right to a hearing under § 38.2-5507, specify in the notification that the notification constitutes a Regulatory Action Level Event.F\n\nEvery domestic licensee that files an RBC Plan or Revised RBC Plan with the Commission shall file a copy of the RBC Plan or Revised RBC Plan with the insurance commissioner in any state in which the licensee is authorized to do business if:1\n\nSuch state has an RBC provision substantially similar to subsection A of § 38.2-5508; and2\n\nThe insurance commissioner of that state has notified the licensee of its request for the filing in writing, in which case the licensee shall file a copy of the RBC Plan or Revised RBC Plan in that state no later than the later of:\n\t\t\t\ta. Fifteen days after the receipt of notice to file a copy of its RBC Plan or Revised RBC Plan with the state; or\n\t\t\t\tb. The date on which the RBC Plan or Revised RBC Plan is filed under subsection C of § 38.2-5504.","order_by":null,"text":{"0":{"id":260410,"text":"“Company Action Level Event” means any of the following events:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":260411,"text":"The filing of an RBC Report by a licensee which indicates that:\n\t\t\t\ta. The licensee’s Total Adjusted Capital is greater than or equal to its Regulatory Action Level RBC but less than its Company Action Level RBC;\n\t\t\t\tb. If a life and health insurer, the insurer has Total Adjusted Capital which is greater than or equal to its Company Action Level RBC but less than the product of its Authorized Control Level RBC and 3.0 and has a negative trend;\n\t\t\t\tc. If a property and casualty insurer, the insurer has Total Adjusted Capital that is greater than or equal to its Company Action Level RBC but less than the product of its Authorized Control Level RBC and 3.0 and triggers the trend test determined in accordance with the Trend Test Calculation included in the Property and Casualty RBC instructions; or\n\t\t\t\td. If a health organization, the health organization has Total Adjusted Capital that is greater than or equal to its Company Action Level RBC but less than the product of its Authorized Control Level RBC and 3.0 and triggers the trend test determined in accordance with the Trend Test Calculation included in the Health RBC instructions;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":260412,"text":"The notification by the Commission to the licensee of an Adjusted RBC Report that indicates the event in subdivision A 1 a, provided the licensee does not challenge the Adjusted RBC Report under § 38.2-5507; or","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":260413,"text":"If, pursuant to § 38.2-5507, the licensee challenges an Adjusted RBC Report that indicates the event in subdivision A 1 a, the notification by the Commission to the licensee that the Commission has, after a hearing, rejected the licensee’s challenge.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":260414,"text":"In the event of a Company Action Level Event, the licensee shall prepare and submit to the Commission an RBC Plan which shall:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"B1"},"5":{"id":260415,"text":"Identify the conditions in the licensee which contribute to the Company Action Level Event;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"6":{"id":260416,"text":"Contain proposals of corrective actions which the licensee intends to take and would be expected to result in the elimination of the Company Action Level Event;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"7":{"id":260417,"text":"Provide projections of the licensee’s financial results in the current year and for at least the four succeeding years if the licensee is a life and health insurer or a property and casualty insurer, or at least two succeeding years if the licensee is a health organization, both in the absence of proposed corrective actions and giving effect to the proposed corrective actions, including projections of statutory balance sheets, operating income, net income, capital and surplus, and RBC levels. If appropriate, the projections for both new and renewal business shall include separate projections for each major line of business and separately identify each significant income, expense and benefit component;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"8":{"id":260418,"text":"Identify the key assumptions impacting the licensee’s projections and the sensitivity of the projections to the assumptions; and","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"9":{"id":260419,"text":"Identify the quality of, and problems associated with, the licensee’s business, including but not limited to its assets, anticipated business growth and associated surplus strain, extraordinary exposure to risk, mix of business and use of reinsurance, if any, in each case.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"C"},"10":{"id":260420,"text":"The RBC Plan shall be submitted:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B5","next_prefix":"C1"},"11":{"id":260421,"text":"Within forty-five days of the Company Action Level Event; or","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"12":{"id":260422,"text":"If the licensee challenges an Adjusted RBC Report pursuant to § 38.2-5507, within forty-five days after notification to the licensee that the Commission has, after a hearing, rejected the licensee’s challenge.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"D"},"13":{"id":260423,"text":"Within sixty days after the submission by a licensee of an RBC Plan to the Commission, the Commission shall notify the licensee whether the RBC Plan shall be implemented or is, in the judgment of the Commission, unsatisfactory. If the Commission determines the RBC Plan is unsatisfactory, the notification to the licensee shall set forth the reasons for the determination, and may set forth proposed revisions which will render the RBC Plan satisfactory, in the judgment of the Commission. Upon notification from the Commission, the licensee shall prepare a Revised RBC Plan, which may incorporate by reference any revisions proposed by the Commission, and shall submit the Revised RBC Plan to the Commission:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"D1"},"14":{"id":260424,"text":"Within forty-five days after the notification from the Commission; or","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"15":{"id":260425,"text":"If the licensee challenges the notification from the Commission under § 38.2-5507, within forty-five days after a notification to the licensee that the Commission has, after a hearing, rejected the licensee’s challenge.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"E"},"16":{"id":260426,"text":"In the event of a notification by the Commission to a licensee that the licensee’s RBC Plan or Revised RBC Plan is unsatisfactory, the Commission may at the Commission’s discretion, subject to the licensee’s right to a hearing under § 38.2-5507, specify in the notification that the notification constitutes a Regulatory Action Level Event.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D2","next_prefix":"F"},"17":{"id":260427,"text":"Every domestic licensee that files an RBC Plan or Revised RBC Plan with the Commission shall file a copy of the RBC Plan or Revised RBC Plan with the insurance commissioner in any state in which the licensee is authorized to do business if:","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"F1"},"18":{"id":260428,"text":"Such state has an RBC provision substantially similar to subsection A of § 38.2-5508; and","type":"section","prefixes":["F","1"],"prefix":"1","entire_prefix":"F1","prefix_anchor":"F1","level":2,"prior_prefix":"F","next_prefix":"F2"},"19":{"id":260429,"text":"The insurance commissioner of that state has notified the licensee of its request for the filing in writing, in which case the licensee shall file a copy of the RBC Plan or Revised RBC Plan in that state no later than the later of:\n\t\t\t\ta. Fifteen days after the receipt of notice to file a copy of its RBC Plan or Revised RBC Plan with the state; or\n\t\t\t\tb. The date on which the RBC Plan or Revised RBC Plan is filed under subsection C of § 38.2-5504.","type":"section","prefixes":["F","2"],"prefix":"2","entire_prefix":"F2","prefix_anchor":"F2","level":2,"prior_prefix":"F1"}},"ancestry":[{"id":14894,"edition_id":1,"name":"Risk-Based Capital Act","identifier":"55","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:50:37","date_modified":"2026-06-26 03:50:37","permalink":{"id":217847,"object_type":"structure","relational_id":14894,"identifier":"55","token":"38.2\/55","url":"\/38.2\/55\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":68244,"structure_id":14894,"section_number":"38.2-5500","catch_line":"Applicability","url":"\/38.2-5500\/","token":"38.2\/55\/38.2-5500","metadata":false},{"id":67232,"structure_id":14894,"section_number":"38.2-5501","catch_line":"Definitions","url":"\/38.2-5501\/","token":"38.2\/55\/38.2-5501","metadata":false},{"id":68713,"structure_id":14894,"section_number":"38.2-5502","catch_line":"RBC Reports","url":"\/38.2-5502\/","token":"38.2\/55\/38.2-5502","metadata":false},{"id":72298,"structure_id":14894,"section_number":"38.2-5503","catch_line":"Company Action Level Event","url":"\/38.2-5503\/","token":"38.2\/55\/38.2-5503","metadata":false},{"id":86775,"structure_id":14894,"section_number":"38.2-5504","catch_line":"Regulatory Action Level Event","url":"\/38.2-5504\/","token":"38.2\/55\/38.2-5504","metadata":false},{"id":85425,"structure_id":14894,"section_number":"38.2-5505","catch_line":"Authorized Control Level Event","url":"\/38.2-5505\/","token":"38.2\/55\/38.2-5505","metadata":false},{"id":69962,"structure_id":14894,"section_number":"38.2-5506","catch_line":"Mandatory Control Level Event","url":"\/38.2-5506\/","token":"38.2\/55\/38.2-5506","metadata":false},{"id":81704,"structure_id":14894,"section_number":"38.2-5507","catch_line":"Hearings","url":"\/38.2-5507\/","token":"38.2\/55\/38.2-5507","metadata":false},{"id":61072,"structure_id":14894,"section_number":"38.2-5508","catch_line":"Confidentiality; prohibition on announcements; prohibition on use in ratemaking","url":"\/38.2-5508\/","token":"38.2\/55\/38.2-5508","metadata":false},{"id":67266,"structure_id":14894,"section_number":"38.2-5509","catch_line":"Supplemental provisions; rules; exemption","url":"\/38.2-5509\/","token":"38.2\/55\/38.2-5509","metadata":false},{"id":80850,"structure_id":14894,"section_number":"38.2-5510","catch_line":"Foreign licensees","url":"\/38.2-5510\/","token":"38.2\/55\/38.2-5510","metadata":false},{"id":61601,"structure_id":14894,"section_number":"38.2-5511","catch_line":"Immunity","url":"\/38.2-5511\/","token":"38.2\/55\/38.2-5511","metadata":false},{"id":56865,"structure_id":14894,"section_number":"38.2-5512","catch_line":"Repealed","url":"\/38.2-5512\/","token":"38.2\/55\/38.2-5512","metadata":false},{"id":83503,"structure_id":14894,"section_number":"38.2-5513","catch_line":"Notices","url":"\/38.2-5513\/","token":"38.2\/55\/38.2-5513","metadata":false},{"id":69834,"structure_id":14894,"section_number":"38.2-5514","catch_line":"Phase-in provision","url":"\/38.2-5514\/","token":"38.2\/55\/38.2-5514","metadata":false},{"id":67792,"structure_id":14894,"section_number":"38.2-5515","catch_line":"Expired","url":"\/38.2-5515\/","token":"38.2\/55\/38.2-5515","metadata":false}],"previous_section":{"id":68713,"structure_id":14894,"section_number":"38.2-5502","catch_line":"RBC Reports","url":"\/38.2-5502\/","token":"38.2\/55\/38.2-5502","metadata":false},"next_section":{"id":86775,"structure_id":14894,"section_number":"38.2-5504","catch_line":"Regulatory Action Level Event","url":"\/38.2-5504\/","token":"38.2\/55\/38.2-5504","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-5503\/","history_text":"

This law was first created in 1995. The record of its establishment is cataloged in chapter 789<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2000, chapter 47<\/a>; in 2007, chapter 360<\/a>; in 2012, chapter 156<\/a>.<\/p>","references":[{"id":66587,"section_number":"38.2-1322","catch_line":"Definitions","order_by":null,"url":"\/38.2-1322\/"},{"id":74724,"section_number":"38.2-1334.7","catch_line":"Scope of article; exemption","order_by":null,"url":"\/38.2-1334.7\/"},{"id":67232,"section_number":"38.2-5501","catch_line":"Definitions","order_by":null,"url":"\/38.2-5501\/"},{"id":86775,"section_number":"38.2-5504","catch_line":"Regulatory Action Level Event","order_by":null,"url":"\/38.2-5504\/"},{"id":80850,"section_number":"38.2-5510","catch_line":"Foreign licensees","order_by":null,"url":"\/38.2-5510\/"},{"id":69834,"section_number":"38.2-5514","catch_line":"Phase-in provision","order_by":null,"url":"\/38.2-5514\/"}],"refers_to":[{"id":86775,"section_number":"38.2-5504","catch_line":"Regulatory Action Level Event","order_by":null,"url":"\/38.2-5504\/"},{"id":81704,"section_number":"38.2-5507","catch_line":"Hearings","order_by":null,"url":"\/38.2-5507\/"},{"id":61072,"section_number":"38.2-5508","catch_line":"Confidentiality; prohibition on announcements; prohibition on use in ratemaking","order_by":null,"url":"\/38.2-5508\/"}],"permalink":{"id":217861,"object_type":"law","relational_id":72298,"identifier":"38.2-5503","token":"38.2\/55\/38.2-5503","url":"\/38.2-5503\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-5503\/","token":"38.2\/55\/38.2-5503","dublin_core":{"Title":"Company Action Level Event","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-5503","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> “Company Action Level Event<\/span>” means any of the following events: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The filing of an RBC Report<\/span> by a licensee<\/span> which indicates that:\n\t\t\t\ta. The licensee<\/span>’s Total Adjusted Capital<\/span> is greater than or equal to its Regulatory Action Level RBC<\/span> but less than its Company Action Level RBC;\n\t\t\t\tb. If a life and health insurer<\/span>, the insurer has Total Adjusted Capital<\/span> which is greater than or equal to its Company Action Level RBC but less than the product of its Authorized Control Level RBC<\/span> and 3.0 and has a negative trend;\n\t\t\t\tc. If a property and casualty insurer<\/span>, the insurer has Total Adjusted Capital<\/span> that is greater than or equal to its Company Action Level RBC but less than the product of its Authorized Control Level RBC<\/span> and 3.0 and triggers the trend test determined in accordance with the Trend Test Calculation<\/span> included in the Property and Casualty RBC instructions<\/span>; or\n\t\t\t\td. If a health organization<\/span>, the health organization<\/span> has Total Adjusted Capital<\/span> that is greater than or equal to its Company Action Level RBC but less than the product of its Authorized Control Level RBC<\/span> and 3.0 and triggers the trend test determined in accordance with the Trend Test Calculation<\/span> included in the Health RBC instructions<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The notification by the Commission<\/span> to the licensee<\/span> of an Adjusted RBC Report<\/span> that indicates the event in subdivision A 1 a, provided the licensee<\/span> does not challenge the Adjusted RBC Report<\/span> under § 38.2-5507<\/a>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If, pursuant to § 38.2-5507<\/a>, the licensee<\/span> challenges an Adjusted RBC Report<\/span> that indicates the event in subdivision A 1 a, the notification by the Commission<\/span> to the licensee<\/span> that the Commission<\/span> has, after a hearing<\/span>, rejected the licensee<\/span>’s challenge. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In the event of a Company Action Level Event<\/span>, the licensee<\/span> shall prepare and submit to the Commission<\/span> an RBC Plan<\/span> which shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Identify the conditions in the licensee<\/span> which contribute to the Company Action Level Event<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Contain proposals of corrective actions which the licensee<\/span> intends to take and would be expected to result in the elimination of the Company Action Level Event<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Provide projections of the licensee<\/span>’s financial results in the current year and for at least the four succeeding years if the licensee<\/span> is a life and health insurer<\/span> or a property and casualty insurer<\/span>, or at least two succeeding years if the licensee<\/span> is a health organization<\/span>, both in the absence of proposed corrective actions and giving effect to the proposed corrective actions, including projections of statutory balance sheets, operating income, net income, capital and surplus<\/span>, and RBC levels<\/span>. If appropriate, the projections for both new and renewal business shall include separate projections for each major line of business and separately identify each significant income, expense and benefit component; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Identify the key assumptions impacting the licensee<\/span>’s projections and the sensitivity of the projections to the assumptions; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Identify the quality of, and problems associated with, the licensee<\/span>’s business, including but not limited to its assets<\/span>, anticipated business growth and associated surplus strain, extraordinary exposure to risk, mix of business and use of reinsurance, if any, in each case. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The RBC Plan<\/span> shall be submitted: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Within forty-five days of the Company Action Level Event<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If the licensee<\/span> challenges an Adjusted RBC Report<\/span> pursuant to § 38.2-5507<\/a>, within forty-five days after notification to the licensee<\/span> that the Commission<\/span> has, after a hearing<\/span>, rejected the licensee<\/span>’s challenge. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Within sixty days after the submission by a licensee<\/span> of an RBC Plan<\/span> to the Commission<\/span>, the Commission<\/span> shall notify the licensee<\/span> whether the RBC Plan<\/span> shall be implemented or is, in the judgment<\/span> of the Commission<\/span>, unsatisfactory. If the Commission<\/span> determines the RBC Plan<\/span> is unsatisfactory, the notification to the licensee<\/span> shall set forth the reasons for the determination, and may set forth proposed revisions which will render the RBC Plan<\/span> satisfactory, in the judgment<\/span> of the Commission<\/span>. Upon notification from the Commission<\/span>, the licensee<\/span> shall prepare a Revised RBC Plan<\/span>, which may incorporate by reference any revisions proposed by the Commission<\/span>, and shall submit the Revised RBC Plan<\/span> to the Commission<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Within forty-five days after the notification from the Commission<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If the licensee<\/span> challenges the notification from the Commission<\/span> under § 38.2-5507<\/a>, within forty-five days after a notification to the licensee<\/span> that the Commission<\/span> has, after a hearing<\/span>, rejected the licensee<\/span>’s challenge. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> In the event of a notification by the Commission<\/span> to a licensee<\/span> that the licensee<\/span>’s RBC Plan<\/span> or Revised RBC Plan<\/span> is unsatisfactory, the Commission<\/span> may at the Commission<\/span>’s discretion, subject to the licensee<\/span>’s right to a hearing<\/span> under § 38.2-5507<\/a>, specify in the notification that the notification constitutes a Regulatory Action Level Event. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Every domestic licensee<\/span> that files an RBC Plan<\/span> or Revised RBC Plan<\/span> with the Commission<\/span> shall file a copy of the RBC Plan<\/span> or Revised RBC Plan<\/span> with the insurance<\/span> commissioner<\/span> in any state<\/span> in which the licensee is authorized to do business if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Such state<\/span> has an RBC provision substantially similar to subsection A of § 38.2-5508<\/a>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The insurance<\/span> commissioner<\/span> of that state<\/span> has notified the licensee of its request for the filing in writing, in which case the licensee shall file a copy of the RBC Plan<\/span> or Revised RBC Plan<\/span> in that state<\/span> no later than the later of:\n\t\t\t\ta. Fifteen days after the receipt of notice to file a copy of its RBC Plan<\/span> or Revised RBC Plan<\/span> with the state<\/span>; or\n\t\t\t\tb. The date on which the RBC Plan<\/span> or Revised RBC Plan<\/span> is filed under subsection C of § 38.2-5504<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCOMPANY ACTION LEVEL EVENT (\u00a7 38.2-5503)\n\nA. “Company Action Level Event” means any of the following events:\n\n 1. The filing of an RBC Report by a licensee which indicates that:\n \t\t\t\ta. The licensee’s Total Adjusted Capital is greater than or equal to\n its Regulatory Action Level RBC but less than its Company Action Level RBC;\n \t\t\t\tb. If a life and health insurer, the insurer has Total Adjusted Capital\n which is greater than or equal to its Company Action Level RBC but less than\n the product of its Authorized Control Level RBC and 3.0 and has a negative\n trend;\n \t\t\t\tc. If a property and casualty insurer, the insurer has Total Adjusted\n Capital that is greater than or equal to its Company Action Level RBC but less\n than the product of its Authorized Control Level RBC and 3.0 and triggers the\n trend test determined in accordance with the Trend Test Calculation included\n in the Property and Casualty RBC instructions; or\n \t\t\t\td. If a health organization, the health organization has Total Adjusted\n Capital that is greater than or equal to its Company Action Level RBC but less\n than the product of its Authorized Control Level RBC and 3.0 and triggers the\n trend test determined in accordance with the Trend Test Calculation included\n in the Health RBC instructions;\n\n 2. The notification by the Commission to the licensee of an Adjusted RBC\n Report that indicates the event in subdivision A 1 a, provided the licensee\n does not challenge the Adjusted RBC Report under § 38.2-5507; or\n\n 3. If, pursuant to § 38.2-5507, the licensee challenges an Adjusted RBC\n Report that indicates the event in subdivision A 1 a, the notification by the\n Commission to the licensee that the Commission has, after a hearing, rejected\n the licensee’s challenge.\n\nB. In the event of a Company Action Level Event, the licensee shall prepare and\nsubmit to the Commission an RBC Plan which shall:\n\n 1. Identify the conditions in the licensee which contribute to the Company\n Action Level Event;\n\n 2. Contain proposals of corrective actions which the licensee intends to take\n and would be expected to result in the elimination of the Company Action Level\n Event;\n\n 3. Provide projections of the licensee’s financial results in the\n current year and for at least the four succeeding years if the licensee is a\n life and health insurer or a property and casualty insurer, or at least two\n succeeding years if the licensee is a health organization, both in the absence\n of proposed corrective actions and giving effect to the proposed corrective\n actions, including projections of statutory balance sheets, operating income,\n net income, capital and surplus, and RBC levels. If appropriate, the\n projections for both new and renewal business shall include separate\n projections for each major line of business and separately identify each\n significant income, expense and benefit component;\n\n 4. Identify the key assumptions impacting the licensee’s projections and\n the sensitivity of the projections to the assumptions; and\n\n 5. Identify the quality of, and problems associated with, the licensee’s\n business, including but not limited to its assets, anticipated business growth\n and associated surplus strain, extraordinary exposure to risk, mix of business\n and use of reinsurance, if any, in each case.\n\nC. The RBC Plan shall be submitted:\n\n 1. Within forty-five days of the Company Action Level Event; or\n\n 2. If the licensee challenges an Adjusted RBC Report pursuant to §\n 38.2-5507, within forty-five days after notification to the licensee that the\n Commission has, after a hearing, rejected the licensee’s challenge.\n\nD. Within sixty days after the submission by a licensee of an RBC Plan to the\nCommission, the Commission shall notify the licensee whether the RBC Plan shall\nbe implemented or is, in the judgment of the Commission, unsatisfactory. If the\nCommission determines the RBC Plan is unsatisfactory, the notification to the\nlicensee shall set forth the reasons for the determination, and may set forth\nproposed revisions which will render the RBC Plan satisfactory, in the judgment\nof the Commission. Upon notification from the Commission, the licensee shall\nprepare a Revised RBC Plan, which may incorporate by reference any revisions\nproposed by the Commission, and shall submit the Revised RBC Plan to the\nCommission:\n\n 1. Within forty-five days after the notification from the Commission; or\n\n 2. If the licensee challenges the notification from the Commission under\n § 38.2-5507, within forty-five days after a notification to the licensee\n that the Commission has, after a hearing, rejected the licensee’s\n challenge.\n\nE. In the event of a notification by the Commission to a licensee that the\nlicensee’s RBC Plan or Revised RBC Plan is unsatisfactory, the Commission\nmay at the Commission’s discretion, subject to the licensee’s right\nto a hearing under § 38.2-5507, specify in the notification that the\nnotification constitutes a Regulatory Action Level Event.\n\nF. Every domestic licensee that files an RBC Plan or Revised RBC Plan with the\nCommission shall file a copy of the RBC Plan or Revised RBC Plan with the\ninsurance commissioner in any state in which the licensee is authorized to do\nbusiness if:\n\n 1. Such state has an RBC provision substantially similar to subsection A of\n § 38.2-5508; and\n\n 2. The insurance commissioner of that state has notified the licensee of its\n request for the filing in writing, in which case the licensee shall file a\n copy of the RBC Plan or Revised RBC Plan in that state no later than the later\n of:\n \t\t\t\ta. Fifteen days after the receipt of notice to file a copy of its RBC Plan\n or Revised RBC Plan with the state; or\n \t\t\t\tb. The date on which the RBC Plan or Revised RBC Plan is filed under\n subsection C of § 38.2-5504.\n\nHISTORY: 1995, c. 789; 2000, c. 47; 2007, c. 360; 2012, c. 156.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}