Action by commissioner after authorized control level event

Sec. 40. (a) If an authorized control level event occurs with respect to an insurer, the commissioner shall: (1) take the actions required under section 36 of this chapter regarding an insurer; or (2) if the commissioner considers it to be in the best interests of: (A) the policyholders and creditors of the insurer; and (B) the public; take any action necessary to cause the insurer to be placed under regulatory control under IC 27-9. (b) An authorized control level event is sufficient grounds for the commissioner to: (1) determine, under IC 27-9-2-1, that an insurer has committed or engaged in, or is about to commit or engage in, an act, a practice, or a transaction that would subject the insurer to a delinquency proceeding under IC 27-9-3-1 or IC 27-9-3-6; and (2) serve upon the insurer, under IC 27-9-2-1, orders reasonably necessary to correct, eliminate, or remedy the conduct, condition, or ground. The commissioner has the rights, powers, and duties with respect to the insurer that are set forth in IC 27-9. (c) If the commissioner takes action under subsection (a)(2), the insurer is entitled to the protections of IC 27-9-2 pertaining to summary proceedings.