{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-5506.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-5506.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-5506.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-5506.html"}],"law_id":69962,"edition_id":1,"section_id":69962,"structure_id":14894,"section_number":"38.2-5506","catch_line":"Mandatory Control Level Event","history":"1995, c. 789; 2000, c. 47; 2018, c. 706.","full_text":"A\n\n&#8220;Mandatory Control Level Event&#8221; means any of the following events:1\n\nThe filing of an RBC Report which indicates that the licensee&#8217;s Total Adjusted Capital is less than its Mandatory Control Level RBC;2\n\nThe notification by the Commission to the licensee of an Adjusted RBC Report that indicates the event in subdivision A 1, provided the licensee does not challenge the Adjusted RBC Report under &#xA7; 38.2-5507; or3\n\nIf, pursuant to &#xA7; 38.2-5507, the licensee challenges an Adjusted RBC Report that indicates the event in subdivision A 1, notification by the Commission to the licensee that the Commission has, after a hearing, rejected the licensee&#8217;s challenge.B\n\nIn the event of a Mandatory Control Level Event:1\n\nWith respect to a life and health insurer, the Commission shall take actions as are necessary to place the insurer under regulatory control pursuant to the provisions of Chapter 15 (&#xA7; 38.2-1500 et seq.). In that event, the Mandatory Control Level Event shall be deemed an indication of a hazardous financial condition which serves as sufficient grounds for the Commission to commence delinquency proceedings, and the receiver appointed in conjunction with such proceedings, shall have the rights, powers and duties with respect to the insurer as are set forth in Chapter 15 or any order of liquidation, rehabilitation or conservation entered thereunder. If the Commission takes actions pursuant to an Adjusted RBC Report, the insurer shall be entitled to such protections as are afforded to insurers under the appropriate provisions of this title pertaining to summary proceedings. Notwithstanding any of the foregoing, the Commission may forego action for up to ninety days after the Mandatory Control Level Event if the Commission finds there is a reasonable expectation that the Mandatory Control Level Event may be eliminated within the ninety-day period.2\n\nWith respect to a property and casualty insurer, the Commission shall take actions as are necessary to place the insurer under regulatory control pursuant to the provisions of Chapter 15, or, in the case of an insurer which is writing no business and which is running-off its existing business, may allow the insurer to continue to run-off under the supervision of the Commission. In either event, the Mandatory Control Level Event shall be deemed an indication of a hazardous financial condition which serves as sufficient grounds for the Commission to commence delinquency proceedings, and the receiver appointed in conjunction with such proceedings, shall have the rights, powers and duties with respect to the insurer as are set forth in Chapter 15 or any order of liquidation, rehabilitation, or conservation entered thereunder. If the Commission takes actions pursuant to an Adjusted RBC Report, the insurer shall be entitled to such protections as are afforded to insurers under the appropriate provisions of this title pertaining to summary proceedings. Notwithstanding any of the foregoing, the Commission may forego action for up to ninety days after the Mandatory Control Level Event if the Commission finds there is a reasonable expectation that the Mandatory Control Level Event may be eliminated within the ninety-day period.3\n\nWith respect to a health organization, the Commission shall take actions as are necessary to place the health organization under regulatory control pursuant to and in accordance with applicable provisions in Chapter 15 (&#xA7; 38.2-1500 et seq.) and &#xA7; 38.2-4214.1, or &#xA7; 38.2-4509.1 of this title. In that event, the Mandatory Control Level Event shall be deemed an indication of a hazardous financial condition which serves as sufficient grounds for the Commission to commence delinquency proceedings, and the receiver appointed in conjunction with such proceedings shall have the rights, powers and duties with respect to the licensee as are set forth in Chapter 15, or any order of liquidation, rehabilitation or conservation entered thereunder. If the Commission takes actions pursuant to an adjusted RBC Report, the health organization shall be entitled to such protections as are afforded to the licensee under the appropriate provisions of this title pertaining to summary proceedings. Notwithstanding any of the foregoing, the Commission may forego action for up to ninety days after the Mandatory Control Level Event if the Commission finds there is a reasonable expectation that the Mandatory Control Level Event may be eliminated within the ninety-day period.","order_by":null,"text":{"0":{"id":252784,"text":"&#8220;Mandatory Control Level Event&#8221; 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":252785,"text":"The filing of an RBC Report which indicates that the licensee&#8217;s Total Adjusted Capital is less than its Mandatory Control Level RBC;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":252786,"text":"The notification by the Commission to the licensee of an Adjusted RBC Report that indicates the event in subdivision A 1, provided the licensee does not challenge the Adjusted RBC Report under &#xA7; 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":252787,"text":"If, pursuant to &#xA7; 38.2-5507, the licensee challenges an Adjusted RBC Report that indicates the event in subdivision A 1, notification by the Commission to the licensee that the Commission has, after a hearing, rejected the licensee&#8217;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":252788,"text":"In the event of a Mandatory Control Level Event:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"B1"},"5":{"id":252789,"text":"With respect to a life and health insurer, the Commission shall take actions as are necessary to place the insurer under regulatory control pursuant to the provisions of Chapter 15 (&#xA7; 38.2-1500 et seq.). In that event, the Mandatory Control Level Event shall be deemed an indication of a hazardous financial condition which serves as sufficient grounds for the Commission to commence delinquency proceedings, and the receiver appointed in conjunction with such proceedings, shall have the rights, powers and duties with respect to the insurer as are set forth in Chapter 15 or any order of liquidation, rehabilitation or conservation entered thereunder. If the Commission takes actions pursuant to an Adjusted RBC Report, the insurer shall be entitled to such protections as are afforded to insurers under the appropriate provisions of this title pertaining to summary proceedings. Notwithstanding any of the foregoing, the Commission may forego action for up to ninety days after the Mandatory Control Level Event if the Commission finds there is a reasonable expectation that the Mandatory Control Level Event may be eliminated within the ninety-day period.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"6":{"id":252790,"text":"With respect to a property and casualty insurer, the Commission shall take actions as are necessary to place the insurer under regulatory control pursuant to the provisions of Chapter 15, or, in the case of an insurer which is writing no business and which is running-off its existing business, may allow the insurer to continue to run-off under the supervision of the Commission. In either event, the Mandatory Control Level Event shall be deemed an indication of a hazardous financial condition which serves as sufficient grounds for the Commission to commence delinquency proceedings, and the receiver appointed in conjunction with such proceedings, shall have the rights, powers and duties with respect to the insurer as are set forth in Chapter 15 or any order of liquidation, rehabilitation, or conservation entered thereunder. If the Commission takes actions pursuant to an Adjusted RBC Report, the insurer shall be entitled to such protections as are afforded to insurers under the appropriate provisions of this title pertaining to summary proceedings. Notwithstanding any of the foregoing, the Commission may forego action for up to ninety days after the Mandatory Control Level Event if the Commission finds there is a reasonable expectation that the Mandatory Control Level Event may be eliminated within the ninety-day period.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"7":{"id":252791,"text":"With respect to a health organization, the Commission shall take actions as are necessary to place the health organization under regulatory control pursuant to and in accordance with applicable provisions in Chapter 15 (&#xA7; 38.2-1500 et seq.) and &#xA7; 38.2-4214.1, or &#xA7; 38.2-4509.1 of this title. In that event, the Mandatory Control Level Event shall be deemed an indication of a hazardous financial condition which serves as sufficient grounds for the Commission to commence delinquency proceedings, and the receiver appointed in conjunction with such proceedings shall have the rights, powers and duties with respect to the licensee as are set forth in Chapter 15, or any order of liquidation, rehabilitation or conservation entered thereunder. If the Commission takes actions pursuant to an adjusted RBC Report, the health organization shall be entitled to such protections as are afforded to the licensee under the appropriate provisions of this title pertaining to summary proceedings. Notwithstanding any of the foregoing, the Commission may forego action for up to ninety days after the Mandatory Control Level Event if the Commission finds there is a reasonable expectation that the Mandatory Control Level Event may be eliminated within the ninety-day period.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-5506\/","history_text":"<p>This law was first created in 1995. The record of its establishment is cataloged in chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?951+ful+CHAP0789\">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 2 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 <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?001+ful+CHAP0047\">47<\/a>; in 2018, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?181+ful+CHAP0706\">706<\/a>.<\/p>","references":[{"id":69834,"section_number":"38.2-5514","catch_line":"Phase-in provision","order_by":null,"url":"\/38.2-5514\/"}],"refers_to":[{"id":66658,"section_number":"38.2-1500","catch_line":"Scope of chapter","order_by":null,"url":"\/38.2-1500\/"},{"id":70935,"section_number":"38.2-4214.1","catch_line":"Rehabilitation, liquidation, conservation","order_by":null,"url":"\/38.2-4214.1\/"},{"id":85127,"section_number":"38.2-4509.1","catch_line":"Rehabilitation, liquidation, conservation","order_by":null,"url":"\/38.2-4509.1\/"},{"id":81704,"section_number":"38.2-5507","catch_line":"Hearings","order_by":null,"url":"\/38.2-5507\/"}],"permalink":{"id":217873,"object_type":"law","relational_id":69962,"identifier":"38.2-5506","token":"38.2\/55\/38.2-5506","url":"\/38.2-5506\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-5506\/","token":"38.2\/55\/38.2-5506","dublin_core":{"Title":"Mandatory Control Level Event","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-5506","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section id=\"A\"><p><span class=\"prefix-number\">A.<\/span> &#8220;<span class=\"dictionary\">Mandatory Control Level Event<\/span>&#8221; means any of the following events: <a id=\"paragraph-252784\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-5506\/#A\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A1\" class=\"indent-1\"><p><span class=\"prefix-number\">1.<\/span> The filing of an <span class=\"dictionary\">RBC Report<\/span> which indicates that the <span class=\"dictionary\">licensee<\/span>&#8217;s <span class=\"dictionary\">Total Adjusted Capital<\/span> is less than its <span class=\"dictionary\">Mandatory Control Level RBC<\/span>; <a id=\"paragraph-252785\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-5506\/#A1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> The notification by the <span class=\"dictionary\">Commission<\/span> to the <span class=\"dictionary\">licensee<\/span> of an <span class=\"dictionary\">Adjusted RBC Report<\/span> that indicates the event in subdivision A 1, provided the <span class=\"dictionary\">licensee<\/span> does not challenge the <span class=\"dictionary\">Adjusted RBC Report<\/span> under &#xA7; <a class=\"law\" title=\"Hearings\" href=\"\/38.2-5507\/\">38.2-5507<\/a>; or <a id=\"paragraph-252786\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-5506\/#A2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"A3\" class=\"indent-1\"><p><span class=\"prefix-number\">3.<\/span> If, pursuant to &#xA7; <a class=\"law\" title=\"Hearings\" href=\"\/38.2-5507\/\">38.2-5507<\/a>, the <span class=\"dictionary\">licensee<\/span> challenges an <span class=\"dictionary\">Adjusted RBC Report<\/span> that indicates the event in subdivision A 1, notification by the <span class=\"dictionary\">Commission<\/span> to the <span class=\"dictionary\">licensee<\/span> that the <span class=\"dictionary\">Commission<\/span> has, after a <span class=\"dictionary\">hearing<\/span>, rejected the <span class=\"dictionary\">licensee<\/span>&#8217;s challenge. <a id=\"paragraph-252787\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-5506\/#A3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B\"><p><span class=\"prefix-number\">B.<\/span> In the event of a <span class=\"dictionary\">Mandatory Control Level Event<\/span>: <a id=\"paragraph-252788\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-5506\/#B\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B1\" class=\"indent-1\"><p><span class=\"prefix-number\">1.<\/span> With respect to a <span class=\"dictionary\">life and health insurer<\/span>, the <span class=\"dictionary\">Commission<\/span> shall take actions as are necessary to place the insurer under regulatory control pursuant to the provisions of Chapter 15 (&#xA7; <a class=\"law\" title=\"Scope of chapter\" href=\"\/38.2-1500\/\">38.2-1500<\/a> et seq.). In that event, the <span class=\"dictionary\">Mandatory Control Level Event<\/span> shall be deemed an indication of a hazardous financial condition which serves as sufficient grounds for the <span class=\"dictionary\">Commission<\/span> to commence <span class=\"dictionary\">delinquency proceedings<\/span>, and the receiver appointed in conjunction with such proceedings, shall have the rights, powers and duties with respect to the insurer as are set forth in Chapter 15 or any <span class=\"dictionary\">order<\/span> of <span class=\"dictionary\">liquidation<\/span>, rehabilitation or conservation entered thereunder. If the <span class=\"dictionary\">Commission<\/span> takes actions pursuant to an <span class=\"dictionary\">Adjusted RBC Report<\/span>, the insurer shall be entitled to such protections as are afforded to <span class=\"dictionary\">insurers<\/span> under the appropriate provisions of this title pertaining to summary proceedings. Notwithstanding any of the foregoing, the <span class=\"dictionary\">Commission<\/span> may forego action for up to ninety days after the <span class=\"dictionary\">Mandatory Control Level Event<\/span> if the <span class=\"dictionary\">Commission<\/span> finds there is a reasonable expectation that the <span class=\"dictionary\">Mandatory Control Level Event<\/span> may be eliminated within the ninety-day period. <a id=\"paragraph-252789\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-5506\/#B1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> With respect to a <span class=\"dictionary\">property and casualty insurer<\/span>, the <span class=\"dictionary\">Commission<\/span> shall take actions as are necessary to place the insurer under regulatory control pursuant to the provisions of Chapter 15, or, in the case of an insurer which is writing no business and which is running-off its existing business, may allow the insurer to continue to run-off under the supervision of the <span class=\"dictionary\">Commission<\/span>. In either event, the <span class=\"dictionary\">Mandatory Control Level Event<\/span> shall be deemed an indication of a hazardous financial condition which serves as sufficient grounds for the <span class=\"dictionary\">Commission<\/span> to commence <span class=\"dictionary\">delinquency proceedings<\/span>, and the receiver appointed in conjunction with such proceedings, shall have the rights, powers and duties with respect to the insurer as are set forth in Chapter 15 or any <span class=\"dictionary\">order<\/span> of <span class=\"dictionary\">liquidation<\/span>, rehabilitation, or conservation entered thereunder. If the <span class=\"dictionary\">Commission<\/span> takes actions pursuant to an <span class=\"dictionary\">Adjusted RBC Report<\/span>, the insurer shall be entitled to such protections as are afforded to <span class=\"dictionary\">insurers<\/span> under the appropriate provisions of this title pertaining to summary proceedings. Notwithstanding any of the foregoing, the <span class=\"dictionary\">Commission<\/span> may forego action for up to ninety days after the <span class=\"dictionary\">Mandatory Control Level Event<\/span> if the <span class=\"dictionary\">Commission<\/span> finds there is a reasonable expectation that the <span class=\"dictionary\">Mandatory Control Level Event<\/span> may be eliminated within the ninety-day period. <a id=\"paragraph-252790\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-5506\/#B2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B3\" class=\"indent-1\"><p><span class=\"prefix-number\">3.<\/span> With respect to a <span class=\"dictionary\">health organization<\/span>, the <span class=\"dictionary\">Commission<\/span> shall take actions as are necessary to place the <span class=\"dictionary\">health organization<\/span> under regulatory control pursuant to and in accordance with applicable provisions in Chapter 15 (&#xA7; <a class=\"law\" title=\"Scope of chapter\" href=\"\/38.2-1500\/\">38.2-1500<\/a> et seq.) and &#xA7; <a class=\"law\" title=\"Rehabilitation, liquidation, conservation\" href=\"\/38.2-4214.1\/\">38.2-4214.1<\/a>, or &#xA7; <a class=\"law\" title=\"Rehabilitation, liquidation, conservation\" href=\"\/38.2-4509.1\/\">38.2-4509.1<\/a> of this title. In that event, the <span class=\"dictionary\">Mandatory Control Level Event<\/span> shall be deemed an indication of a hazardous financial condition which serves as sufficient grounds for the <span class=\"dictionary\">Commission<\/span> to commence <span class=\"dictionary\">delinquency proceedings<\/span>, and the receiver appointed in conjunction with such proceedings shall have the rights, powers and duties with respect to the <span class=\"dictionary\">licensee<\/span> as are set forth in Chapter 15, or any <span class=\"dictionary\">order<\/span> of <span class=\"dictionary\">liquidation<\/span>, rehabilitation or conservation entered thereunder. If the <span class=\"dictionary\">Commission<\/span> takes actions pursuant to an <span class=\"dictionary\">adjusted RBC Report<\/span>, the <span class=\"dictionary\">health organization<\/span> shall be entitled to such protections as are afforded to the <span class=\"dictionary\">licensee<\/span> under the appropriate provisions of this title pertaining to summary proceedings. Notwithstanding any of the foregoing, the <span class=\"dictionary\">Commission<\/span> may forego action for up to ninety days after the <span class=\"dictionary\">Mandatory Control Level Event<\/span> if the <span class=\"dictionary\">Commission<\/span> finds there is a reasonable expectation that the <span class=\"dictionary\">Mandatory Control Level Event<\/span> may be eliminated within the ninety-day period. <a id=\"paragraph-252791\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-5506\/#B3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nMANDATORY CONTROL LEVEL EVENT (\u00a7 38.2-5506)\n\nA. &#8220;Mandatory Control Level Event&#8221; means any of the following\nevents:\n\n   1. The filing of an RBC Report which indicates that the licensee&#8217;s Total\n   Adjusted Capital is less than its Mandatory Control Level RBC;\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, provided the licensee does\n   not challenge the Adjusted RBC Report under &#xA7; 38.2-5507; or\n\n   3. If, pursuant to &#xA7; 38.2-5507, the licensee challenges an Adjusted RBC\n   Report that indicates the event in subdivision A 1, notification by the\n   Commission to the licensee that the Commission has, after a hearing, rejected\n   the licensee&#8217;s challenge.\n\nB. In the event of a Mandatory Control Level Event:\n\n   1. With respect to a life and health insurer, the Commission shall take\n   actions as are necessary to place the insurer under regulatory control\n   pursuant to the provisions of Chapter 15 (&#xA7; 38.2-1500 et seq.). In that\n   event, the Mandatory Control Level Event shall be deemed an indication of a\n   hazardous financial condition which serves as sufficient grounds for the\n   Commission to commence delinquency proceedings, and the receiver appointed in\n   conjunction with such proceedings, shall have the rights, powers and duties\n   with respect to the insurer as are set forth in Chapter 15 or any order of\n   liquidation, rehabilitation or conservation entered thereunder. If the\n   Commission takes actions pursuant to an Adjusted RBC Report, the insurer shall\n   be entitled to such protections as are afforded to insurers under the\n   appropriate provisions of this title pertaining to summary proceedings.\n   Notwithstanding any of the foregoing, the Commission may forego action for up\n   to ninety days after the Mandatory Control Level Event if the Commission finds\n   there is a reasonable expectation that the Mandatory Control Level Event may\n   be eliminated within the ninety-day period.\n\n   2. With respect to a property and casualty insurer, the Commission shall take\n   actions as are necessary to place the insurer under regulatory control\n   pursuant to the provisions of Chapter 15, or, in the case of an insurer which\n   is writing no business and which is running-off its existing business, may\n   allow the insurer to continue to run-off under the supervision of the\n   Commission. In either event, the Mandatory Control Level Event shall be deemed\n   an indication of a hazardous financial condition which serves as sufficient\n   grounds for the Commission to commence delinquency proceedings, and the\n   receiver appointed in conjunction with such proceedings, shall have the\n   rights, powers and duties with respect to the insurer as are set forth in\n   Chapter 15 or any order of liquidation, rehabilitation, or conservation\n   entered thereunder. If the Commission takes actions pursuant to an Adjusted\n   RBC Report, the insurer shall be entitled to such protections as are afforded\n   to insurers under the appropriate provisions of this title pertaining to\n   summary proceedings. Notwithstanding any of the foregoing, the Commission may\n   forego action for up to ninety days after the Mandatory Control Level Event if\n   the Commission finds there is a reasonable expectation that the Mandatory\n   Control Level Event may be eliminated within the ninety-day period.\n\n   3. With respect to a health organization, the Commission shall take actions as\n   are necessary to place the health organization under regulatory control\n   pursuant to and in accordance with applicable provisions in Chapter 15 (&#xA7;\n   38.2-1500 et seq.) and &#xA7; 38.2-4214.1, or &#xA7; 38.2-4509.1 of this\n   title. In that event, the Mandatory Control Level Event shall be deemed an\n   indication of a hazardous financial condition which serves as sufficient\n   grounds for the Commission to commence delinquency proceedings, and the\n   receiver appointed in conjunction with such proceedings shall have the rights,\n   powers and duties with respect to the licensee as are set forth in Chapter 15,\n   or any order of liquidation, rehabilitation or conservation entered\n   thereunder. If the Commission takes actions pursuant to an adjusted RBC\n   Report, the health organization shall be entitled to such protections as are\n   afforded to the licensee under the appropriate provisions of this title\n   pertaining to summary proceedings. Notwithstanding any of the foregoing, the\n   Commission may forego action for up to ninety days after the Mandatory Control\n   Level Event if the Commission finds there is a reasonable expectation that the\n   Mandatory Control Level Event may be eliminated within the ninety-day period.\n\nHISTORY: 1995, c. 789; 2000, c. 47; 2018, c. 706.","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}}