375.1262.  Mandatory control level event, occurrence of, when — effect, duties of director. — 1.  "Mandatory control level event" means, with respect to any insurer or health organization, any of the following events:

  (1)  The filing of an RBC report which indicates that the insurer's or health organization's total adjusted capital is less than its mandatory control level RBC;

  (2)  Notification by the director to the insurer or health organization of an adjusted RBC report that indicates the event in subdivision (1) of this subsection if the insurer or health organization does not challenge the adjusted RBC report under section 375.1265; or

  (3)  If, pursuant to section 375.1265, the insurer or health organization challenges an adjusted RBC report that indicates the event in subdivision (1) of this subsection, notification by the director to the insurer or health organization that the director has, after a hearing, rejected the insurer's or health organization's challenge.

  2.  In the event of a mandatory control level event the director shall take such actions as are necessary to place the insurer or health organization under regulatory control under sections 375.1150 to 375.1246, or, in the case of a property and casualty insurer which is writing no business, may allow the insurer to continue its existing policies until expiration of the policy term and settlement of all outstanding claims under the supervision of the director.  In either event, the mandatory control level event shall be deemed sufficient grounds for the director to take action pursuant to sections 375.1150 to 375.1246, and the director shall have the rights, powers and duties with respect to the insurer or health organization as are set forth in sections 375.1150 to 375.1246.  In the event the director takes actions pursuant to an adjusted RBC report, the insurer or health organization shall be entitled to such protections as are afforded to insurers or health organizations pursuant to the provisions of sections 375.570 to 375.640, if the adjusted RBC report shall be deemed a report of examination.  Notwithstanding any other provision of this subsection to the contrary, the director may forego action for up to ninety days after the mandatory control level event if the director finds there is a reasonable expectation that the mandatory control level event be eliminated within the ninety-day period.