Mandatory-control-level event.

1. “Mandatory-control-level event” means any of the following: a. The filing of a risk-based capital report which indicates that a health organization’s total adjusted capital is less than its mandatory-control-level risk-based capital. b. Notification by the commissioner to a health organization of an adjusted risk-based capital report that indicates the event in paragraph “a” , provided the health organization does not challenge the adjusted risk-based capital report and request a hearing pursuant to section 521F.8 . c. After a hearing pursuant to section 521F.8 , notification by the commissioner to the health organization that the commissioner has rejected the health organization’s challenge of the adjusted risk-based capital report indicating the event in paragraph “a” . 2. In the event of a mandatory-control-level event, the commissioner shall take action as necessary to place the health organization under supervision or other regulatory control pursuant to chapter 507C . If the commissioner takes action pursuant to this subsection , the mandatory-control-level event is deemed sufficient grounds for the commissioner to take action pursuant to chapter 507C , and the commissioner has the rights, powers, and duties with respect to the health organization as are set forth in chapter 507C . If the commissioner takes action pursuant to an adjusted risk-based capital report, the health organization is entitled to the protections of chapter 17A pertaining to summary proceedings. Notwithstanding this subsection , the commissioner may forego action for up to ninety days after the mandatory-control-level event if the commissioner finds a reasonable expectation exists that the mandatory-control-level event may be eliminated within the ninety-day period. 2000 Acts, ch 1050, §7