CHAPTER 15.6. INSURANCE PRODUCERS
IC 27-1-15.6
Chapter 15.6. Insurance Producers
IC 27-1-15.6-1
Applicability of chapter
Sec. 1. This chapter governs the qualifications and procedures forthe licensing of insurance producers. This chapter does not apply tosurplus lines producers licensed under IC 27-1-15.8 except asspecifically provided in this chapter or in IC 27-1-15.8.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-2
Definitions
Sec. 2. The following definitions apply throughout this chapter,IC 27-1-15.7, and IC 27-1-15.8:
(1) "Bureau" refers to the child support bureau established byIC 31-25-3-1.
(2) "Business entity" means a corporation, an association, apartnership, a limited liability company, a limited liabilitypartnership, or another legal entity.
(3) "Commissioner" means the insurance commissionerappointed under IC 27-1-1-2.
(4) "Consultant" means a person who:
(A) holds himself or herself out to the public as beingengaged in the business of offering; or
(B) for a fee, offers;
any advice, counsel, opinion, or service with respect to thebenefits, advantages, or disadvantages promised under anypolicy of insurance that could be issued in Indiana.
(5) "Delinquent" means the condition of being at least:
(A) two thousand dollars ($2,000); or
(B) three (3) months;
past due in the payment of court ordered child support.
(6) "Home state" means the District of Columbia or any state orterritory of the United States in which an insurance producer:
(A) maintains the insurance producer's principal place ofresidence or principal place of business; and
(B) is licensed to act as an insurance producer.
(7) "Insurance producer" means a person required to be licensedunder the laws of Indiana to sell, solicit, or negotiate insurance.
(8) "License" means a document issued by the commissionerauthorizing a person to act as an insurance producer for thelines of authority specified in the document. The license itselfdoes not create any authority, actual, apparent, or inherent, inthe holder to represent or commit an insurance carrier.
(9) "Limited line credit insurance" includes the following:
(A) Credit life insurance.
(B) Credit disability insurance.
(C) Credit property insurance.
(D) Credit unemployment insurance. (E) Involuntary unemployment insurance.
(F) Mortgage life insurance.
(G) Mortgage guaranty insurance.
(H) Mortgage disability insurance.
(I) Guaranteed automobile protection (gap) insurance.
(J) Any other form of insurance:
(i) that is offered in connection with an extension of creditand is limited to partially or wholly extinguishing thatcredit obligation; and
(ii) that the insurance commissioner determines should bedesignated a form of limited line credit insurance.
(10) "Limited line credit insurance producer" means a personwho sells, solicits, or negotiates one (1) or more forms oflimited line credit insurance coverage to individuals through amaster, corporate, group, or individual policy.
(11) "Limited lines insurance" means any of the following:
(A) The lines of insurance defined in section 18 of thischapter.
(B) Any line of insurance the recognition of which isconsidered necessary by the commissioner for the purposeof complying with section 8(e) of this chapter.
(C) For purposes of section 8(e) of this chapter, any form ofinsurance with respect to which authority is granted by ahome state that restricts the authority granted by a limitedlines producer's license to less than total authority in theassociated major lines described in section 7(a)(1) through7(a)(6) of this chapter.
(12) "Limited lines producer" means a person authorized by thecommissioner to sell, solicit, or negotiate limited linesinsurance.
(13) "Negotiate" means the act of conferring directly with oroffering advice directly to a purchaser or prospective purchaserof a particular contract of insurance concerning any of thesubstantive benefits, terms, or conditions of the contract,provided that the person engaged in that act either sellsinsurance or obtains insurance from insurers for purchasers.
(14) "Person" means an individual or a business entity.
(15) "Sell" means to exchange a contract of insurance by anymeans, for money or its equivalent, on behalf of a company.
(16) "Solicit" means attempting to sell insurance or asking orurging a person to apply for a particular kind of insurance froma particular company.
(17) "Surplus lines producer" means a person who sells, solicits,negotiates, or procures from an insurance company not licensedto transact business in Indiana an insurance policy that cannotbe procured from insurers licensed to do business in Indiana.
(18) "Terminate" means:
(A) the cancellation of the relationship between an insuranceproducer and the insurer; or
(B) the termination of a producer's authority to transact
insurance.
(19) "Uniform business entity application" means the currentversion of the national association of insurance commissionersuniform business entity application for resident and nonresidentbusiness entities.
(20) "Uniform application" means the current version of thenational association of insurance commissioners uniformapplication for resident and nonresident producer licensing.
As added by P.L.132-2001, SEC.3. Amended by P.L.182-2001,SEC.1; P.L.145-2006, SEC.163.
IC 27-1-15.6-3
Required licensing
Sec. 3. (a) A person shall not sell, solicit, or negotiate insurancein Indiana for any class or classes of insurance unless the person islicensed for that line of authority under this chapter.
(b) An insurer shall require a person who sells, solicits, ornegotiates insurance in Indiana by any means of communication onbehalf of the insurer to be licensed under this chapter.
(c) A violation of subsection (b) is deemed an unfair method ofcompetition and an unfair and deceptive act and practice in thebusiness of insurance under IC 27-4-1-4.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-4
Insurance producer license; when not required
Sec. 4. (a) As used in this section, "insurer" does not include anofficer, director, employee, subsidiary, or affiliate of an insurer.
(b) This chapter does not require an insurer to obtain an insuranceproducer license.
(c) The following are not required to be licensed as an insuranceproducer:
(1) An officer, director, or employee of an insurer or of aninsurance producer, if the officer, director, or employee doesnot receive any commission on policies written or sold to insurerisks that reside, are located, or are to be performed in Indiana,and if:
(A) the officer, director, or employee's activities areexecutive, administrative, managerial, clerical, or acombination of these, and are only indirectly related to thesale, solicitation, or negotiation of insurance;
(B) the officer, director, or employee's function relates tounderwriting, loss control, inspection, or the processing,adjusting, investigating, or settling of a claim on a contractof insurance; or
(C) the officer, director, or employee is acting in thecapacity of a special agent or agency supervisor assistinginsurance producers and the officer, director, or employee'sactivities are limited to providing technical advice andassistance to licensed insurance producers and do not
include the sale, solicitation, or negotiation of insurance.
(2) A person who secures and furnishes information for thepurpose of:
(A) group life insurance, group property and casualtyinsurance, group annuities, group or blanket accident andsickness insurance;
(B) enrolling individuals under plans;
(C) issuing certificates under plans or otherwise assisting inadministering plans; or
(D) performing administrative services related to massmarketed property and casualty insurance;
where no commission is paid to the person for the service.
(3) A person identified in clauses (A) through (C) who is not inany manner compensated, directly or indirectly, by a companyissuing a contract, to the extent that the person is engaged in theadministration or operation of a program of employee benefitsfor the employer's or association's employees, or for theemployees of a subsidiary or affiliate of the employer orassociation, that involves the use of insurance issued by aninsurer:
(A) An employer or association.
(B) An officer, director, or employee of an employer orassociation.
(C) The trustees of an employee trust plan.
(4) An:
(A) employee of an insurer; or
(B) organization employed by insurers;
that is engaged in the inspection, rating, or classification ofrisks, or in the supervision of the training of insuranceproducers, and that is not individually engaged in the sale,solicitation, or negotiation of insurance.
(5) A person whose activities in Indiana are limited toadvertising, without the intent to solicit insurance in Indiana,through communications in printed publications or other formsof electronic mass media whose distribution is not limited toresidents of Indiana, provided that the person does not sell,solicit, or negotiate insurance that would insure risks residing,located, or to be performed in Indiana.
(6) A person who is not a resident of Indiana and who sells,solicits, or negotiates a contract of insurance for commercialproperty and casualty risks to an insured with risks located inmore than one state insured under that contract, provided that:
(A) the person is otherwise licensed as an insuranceproducer to sell, solicit, or negotiate the insurance in thestate where the insured maintains its principal place ofbusiness; and
(B) the contract of insurance insures risks located in thatstate.
(7) A salaried full-time employee who counsels or advises theemployee's employer about the insurance interests of the
employer or of the subsidiaries or business affiliates of theemployer, provided that the employee does not sell or solicitinsurance or receive a commission.
(8) An officer, employee, or representative of a rental company(as defined in IC 24-4-9-7) who negotiates or solicits insuranceincidental to and in connection with the rental of a motorvehicle.
(9) An individual who:
(A) furnishes only title insurance rate information at therequest of a consumer; and
(B) does not discuss the terms or conditions of a titleinsurance policy.
As added by P.L.132-2001, SEC.3. Amended by P.L.129-2003,SEC.3; P.L.64-2004, SEC.22.
IC 27-1-15.6-5
Licensing examination
Sec. 5. (a) A resident individual applying for:
(1) an insurance producer license;
(2) a consultant's license; or
(3) a surplus lines producer license;
must pass a written examination unless the individual is exemptunder section 9 of this chapter.
(b) The examination required under subsection (a) must test theknowledge of the individual concerning the:
(1) lines of authority for which application is made;
(2) duties and responsibilities of a licensee; and
(3) insurance laws and administrative rules of Indiana.
(c) Examinations required under this section must be developedand conducted under rules adopted by the commissioner.
(d) The commissioner may make arrangements, includingcontracting with an outside testing service, for administeringexaminations, collecting the nonrefundable examination fee asestablished by contract with an outside testing service, or collectingthe nonrefundable licensure fee set forth in section 32 of this chapter.
(e) An individual who fails to appear for the examination requiredunder subsection (a) as scheduled or who fails to pass theexamination must reapply for an examination and remit all requiredfees and forms before being rescheduled for another examination.
As added by P.L.132-2001, SEC.3. Amended by P.L.1-2002,SEC.105.
IC 27-1-15.6-6
Application for resident insurance producer
Sec. 6. (a) A person applying for a resident insurance producerlicense shall make application to the commissioner on the uniformapplication and declare under penalty of refusal, suspension, orrevocation of the license that the statements made in the applicationare true, correct, and complete to the best of the individual'sknowledge and belief. (b) Before approving an application submitted under subsection(a), the commissioner must find that the individual meets thefollowing requirements:
(1) Is at least eighteen (18) years of age.
(2) Has not committed any act that is a ground for denial,suspension, or revocation under section 12 of this chapter.
(3) Has completed, if required by the commissioner, a certifiedprelicensing course of study for the lines of authority for whichthe individual has applied.
(4) Has paid the nonrefundable fee set forth in section 32 of thischapter.
(5) Has successfully passed the examinations for the lines ofauthority for which the individual has applied.
(c) An applicant for a resident insurance producer license mustfile with the commissioner on a form prescribed by the commissionera certification of completion certifying that the applicant hascompleted an insurance producer program of study certified by thecommissioner under IC 27-1-15.7-5 not more than six (6) monthsbefore the application for the license is received by thecommissioner. This subsection applies only to licensees seekingqualification in the lines of insurance described in sections 7(a)(1)through 7(a)(6) and 7(a)(8) of this chapter.
(d) A business entity, before acting as an insurance producer, isrequired to obtain an insurance producer license. The applicationsubmitted by a business entity under this subsection must be madeusing the uniform business entity application. Before approving theapplication, the commissioner must find that the business entity has:
(1) paid the fees required under section 32 of this chapter; and
(2) designated an individual licensed producer responsible forthe business entity's compliance with the insurance laws andadministrative rules of Indiana.
(e) The commissioner may require any documents reasonablynecessary to verify the information contained in an applicationsubmitted under this subsection.
(f) An insurer that sells, solicits, or negotiates any form of limitedline credit insurance shall provide a program of instruction approvedby the commissioner to each individual whose duties will includeselling, soliciting, or negotiating limited line credit insurance.
As added by P.L.132-2001, SEC.3. Amended by P.L.1-2002,SEC.106; P.L.64-2004, SEC.23.
IC 27-1-15.6-7
Insurance producer licenses; qualifications; expiration; renewal;registry
Sec. 7. (a) Unless denied licensure under section 12 of thischapter, a person who has met the requirements of sections 5 and 6of this chapter shall be issued an insurance producer license. Aninsurance producer may receive qualification for a license in one ormore of the following lines of authority:
(1) Life _ insurance coverage on human lives, including
benefits of endowment and annuities, that may include benefitsin the event of death or dismemberment by accident andbenefits for disability income.
(2) Accident and health or sickness _ insurance coverage forsickness, bodily injury, or accidental death that may includebenefits for disability income.
(3) Property _ insurance coverage for the direct orconsequential loss of or damage to property of every kind.
(4) Casualty _ insurance coverage against legal liability,including liability for death, injury, or disability, or for damageto real or personal property.
(5) Variable life and variable annuity products _ insurancecoverage provided under variable life insurance contracts andvariable annuities.
(6) Personal lines _ property and casualty insurance coveragesold to individuals and families for primarily noncommercialpurposes.
(7) Credit _ limited line credit insurance.
(8) Title _ insurance coverage against loss or damage onaccount of encumbrances on or defects in the title to real estate.
(9) Any other line of insurance permitted under Indiana laws oradministrative rules.
(b) A person who requests and receives qualification undersubsection (a)(5) for variable life and annuity products:
(1) is considered to have requested; and
(2) shall receive;
a life qualification under subsection (a)(1).
(c) A resident insurance producer may not request separatequalifications for property insurance and casualty insurance undersubsection (a).
(d) An insurance producer license remains in effect unlessrevoked or suspended, as long as the renewal fee set forth in section32 of this chapter is paid and the educational requirements forresident individual producers are met by the due date.
(e) An individual insurance producer who:
(1) allows the individual insurance producer's license to lapse;and
(2) completed all required continuing education before thelicense expired;
may, not more than twelve (12) months after the expiration date ofthe license, reinstate the same license without the necessity ofpassing a written examination. A penalty in the amount of three (3)times the unpaid renewal fee shall be required for any renewal feereceived after the expiration date of the license. However, thedepartment of insurance may waive the penalty if the renewal fee isreceived not more than thirty (30) days after the expiration date ofthe license.
(f) A licensed insurance producer who is unable to comply withlicense renewal procedures due to military service or some otherextenuating circumstance may request a waiver of the license
renewal procedures. The producer may also request a waiver of anyexamination requirement or any other fine or sanction imposed forfailure to comply with the license renewal procedures.
(g) An insurance producer license shall contain the licensee'sname, address, personal identification number, date of issuance, linesof authority, expiration date, and any other information thecommissioner considers necessary.
(h) A licensee shall inform the commissioner of a change ofaddress not more than thirty (30) days after the change by any meansacceptable to the commissioner. The failure of a licensee to timelyinform the commissioner of a change in legal name or address shallresult in a penalty under section 12 of this chapter.
(i) To assist in the performance of the commissioner's duties, thecommissioner may contract with nongovernmental entities, includingthe National Association of Insurance Commissioners (NAIC), orany affiliates or subsidiaries that the NAIC oversees, to performministerial functions, including the collection of fees related toproducer licensing, that the commissioner and the nongovernmentalentity consider appropriate.
(j) The commissioner may participate, in whole or in part, withthe NAIC or any affiliate or subsidiary of the NAIC in a centralizedinsurance producer license registry through which insuranceproducer licenses are centrally or simultaneously effected for statesthat require an insurance producer license and participate in thecentralized insurance producer license registry. If the commissionerdetermines that participation in the centralized insurance producerlicense registry is in the public interest, the commissioner may adoptrules under IC 4-22-2 specifying uniform standards and proceduresthat are necessary for participation in the registry, includingstandards and procedures for centralized license fee collection.
As added by P.L.132-2001, SEC.3. Amended by P.L.64-2004,SEC.24.
IC 27-1-15.6-7.3
Insurance producer frameable certificates
Sec. 7.3. (a) The commissioner may design or have designed aninsurance producer certificate suitable for framing and display.
(b) Upon request of an insurance producer, the commissioner mayissue a certificate described in subsection (a).
(c) The commissioner may impose and collect a reasonable fee fora certificate issued under subsection (b). The commissioner shalldeposit fees collected under this subsection into the insuranceeducation scholarship fund established by IC 21-12-9-5.
(d) The commissioner shall establish guidelines to implement thissection.
As added by P.L.173-2007, SEC.11. Amended by P.L.3-2008,SEC.209.
IC 27-1-15.6-8
Nonresident producer license Sec. 8. (a) Unless denied licensure under section 12 of thischapter, a nonresident person shall receive a nonresident producerlicense if:
(1) the person is currently licensed as a resident and in goodstanding in the person's home state;
(2) the person has submitted the proper request for licensureand has paid the fees required under section 32 of this chapter;
(3) the person has submitted or transmitted to thecommissioner:
(A) the application for licensure that the person submitted tothe person's home state; or
(B) a completed uniform application; and
(4) the person's home state awards non-resident producerlicenses to residents of Indiana on the same basis asnon-resident producer licenses are awarded to residents of otherstates under this chapter.
(b) The commissioner may verify a producer's licensing statusthrough the Producer Database maintained by the NationalAssociation of Insurance Commissioners and its affiliates orsubsidiaries.
(c) A:
(1) person who holds an Indiana nonresident producer'slicense and moves from one state to another state; or
(2) a resident producer who moves from Indiana to anotherstate;
shall file a change of address with the Indiana department ofinsurance and provide certification from the new resident state notmore than thirty (30) days after the change of legal residence. No feeor license application is required under this subsection.
(d) Notwithstanding any other provision of this chapter, a personlicensed as a surplus lines producer in the person's home state shallreceive a nonresident surplus lines producer license under subsection(a). Except as provided in subsection (a), nothing in this sectionotherwise amends or supercedes IC 27-1-15.8, as added by this act.
(e) Notwithstanding any other provision of this chapter, a personwho is not a resident of Indiana and who is licensed as a limited linescredit insurance producer or another type of limited lines producerin the person's home state shall, upon application, receive anonresident limited lines producer license under subsection (a)granting the same scope of authority as is granted under the licenseissued by the person's home state.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-9
Prelicensing education; exemptions
Sec. 9. (a) An individual who applies for an insurance producerlicense in Indiana and who was previously licensed for the same linesof authority in another state is not required to complete anyprelicensing education or examination. However, the exemptionprovided by this subsection is available only if: (1) the individual is currently licensed in the other state; or
(2) the application is received within ninety (90) days after thecancellation of the applicant's previous license and:
(A) the other state issues a certification that, at the time ofcancellation, the applicant was in good standing in that state;or
(B) the state's Producer Database records that are maintainedby the National Association of Insurance Commissioners, itsaffiliates, or its subsidiaries, indicate that the producer is orwas licensed in good standing for the line of authorityrequested.
(b) If a person is licensed as an insurance producer in anotherstate and moves to Indiana, the person, to be authorized to act as aninsurance producer in Indiana, must make application to become aresident licensee under section 6 of this chapter within ninety (90)days after establishing legal residence in Indiana. However, theperson is not required to take prelicensing education or examinationto obtain a license for any line of authority for which the person helda license in the other state unless the commissioner determinesotherwise by rule.
(c) An individual who:
(1) has attained the designation of chartered life underwriter,certified financial planner, or chartered financial consultant;and
(2) applies for an insurance producer license in Indianarequesting qualification under sections:
(A) 7(a)(1);
(B) 7(a)(2); or
(C) 7(a)(5);
of this chapter;
is not required to complete prelicensing education, and is required totake only the portion of the examination required under section 5(b)of this chapter that pertains to Indiana laws and rules.
(d) An individual who has:
(1) attained the designation of chartered property and casualtyunderwriter, certified insurance counselor, or accredited advisorin insurance; and
(2) applies for an insurance producer license in Indianarequesting qualification under sections:
(A) 7(a)(3);
(B) 7(a)(4); or
(C) 7(a)(6);
of this chapter;
is not required to complete prelicensing education, and is required totake only the portion of the examination required under section 5(b)of this chapter that pertains to Indiana laws and rules.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-10
Use of assumed name Sec. 10. Before an insurance producer may do business in Indianaunder any name other than the producer's legal name, the insuranceproducer shall notify the commissioner of the proposed use of theassumed name.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-11
Temporary insurance producer license
Sec. 11. (a) If the commissioner considers the issuance of atemporary license necessary for the servicing of an insurancebusiness, the commissioner, without requiring an examination, mayissue a temporary insurance producer license for a period of not morethan one hundred eighty (180) days to any of the following:
(1) To the surviving spouse or court-appointed personalrepresentative of a licensed individual insurance producer whodies or becomes mentally or physically disabled:
(A) to allow adequate time for the sale of the insurancebusiness owned by the producer;
(B) to provide for the servicing of the insurance businessuntil the recovery or return of the producer to the business;or
(C) to provide for the training and licensing of newpersonnel to operate the producer's business.
(2) To a member or employee of a business entity licensed as aninsurance producer, upon the death or disability of an individualdesignated in the business entity application or the license.
(3) To the designee of a licensed individual insurance producerentering active service in the armed forces of the United Statesof America.
(4) To an individual in any other circumstance where thecommissioner considers the public interest to be best served bythe issuance to the individual of a temporary insurance producerlicense.
(b) The commissioner may by order limit the authority of atemporary licensee in any way considered necessary to protectinsureds and the public. The commissioner may require thetemporary licensee to have a suitable sponsor who is a licensedproducer or insurer and who assumes responsibility for all acts of thetemporary licensee and may impose other, similar requirementsdesigned to protect insureds and the public.
(c) The commissioner may by order revoke a temporary insuranceproducer license if the interest of insureds or the public areendangered. A temporary insurance producer license issued undersubsection (a)(1)(A) expires at the time the owner or the personalrepresentative disposes of the business.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-12
Penalties
Sec. 12. (a) For purposes of this section, "permanently revoke"
means that:
(1) the producer's license shall never be reinstated; and
(2) the former licensee, after the license revocation, is noteligible to submit an application for a license to the department.
(b) The commissioner may levy a civil penalty, place an insuranceproducer on probation, suspend an insurance producer's license,revoke an insurance producer's license for a period of years,permanently revoke an insurance producer's license, or refuse toissue or renew an insurance producer license, or take anycombination of these actions, for any of the following causes:
(1) Providing incorrect, misleading, incomplete, or materiallyuntrue information in a license application.
(2) Violating:
(A) an insurance law;
(B) a regulation;
(C) a subpoena of an insurance commissioner; or
(D) an order of an insurance commissioner;
of Indiana or of another state.
(3) Obtaining or attempting to obtain a license throughmisrepresentation or fraud.
(4) Improperly withholding, misappropriating, or convertingany monies or properties received in the course of doinginsurance business.
(5) Intentionally misrepresenting the terms of an actual orproposed insurance contract or application for insurance.
(6) Having been convicted of a felony.
(7) Admitting to having committed or being found to havecommitted any unfair trade practice or fraud in the business ofinsurance.
(8) Using fraudulent, coercive, or dishonest practices, ordemonstrating incompetence, untrustworthiness, or financialirresponsibility in the conduct of business in Indiana orelsewhere.
(9) Having an insurance producer license, or its equivalent,denied, suspended, or revoked in any other state, province,district, or territory.
(10) Forging another's name to an application for insurance orto any document related to an insurance transaction.
(11) Improperly using notes or any other reference material tocomplete an examination for an insurance license.
(12) Knowingly accepting insurance business from anindividual who is not licensed.
(13) Failing to comply with an administrative or court orderimposing a child support obligation.
(14) Failing to pay state income tax or to comply with anyadministrative or court order directing payment of state incometax.
(15) Failing to satisfy the continuing education requirementsestablished by IC 27-1-15.7.
(16) Violating section 31 of this chapter. (17) Failing to timely inform the commissioner of a change inlegal name or address, in violation of section 7(h) of thischapter.
(c) The commissioner shall refuse to:
(1) issue a license; or
(2) renew a license issued;
under this chapter to any person who is the subject of an order issuedby a court under IC 31-14-12-7 or IC 31-16-12-10 (orIC 31-1-11.5-13(m) or IC 31-6-6.1-16(m) before their repeal).
(d) If the commissioner refuses to renew a license or denies anapplication for a license, the commissioner shall notify the applicantor licensee and advise the applicant or licensee, in a writing sentthrough regular first class mail, of the reason for the denial of theapplicant's application or the nonrenewal of the licensee's license.The applicant or licensee may, not more than sixty-three (63) daysafter notice of denial of the applicant's application or nonrenewal ofthe licensee's license is mailed, make written demand to thecommissioner for a hearing before the commissioner to determine thereasonableness of the commissioner's action. The hearing shall beheld not more than thirty (30) days after the applicant or licenseemakes the written demand, and shall be conducted under IC 4-21.5.
(e) The license of a business entity may be suspended, revoked,or refused if the commissioner finds, after hearing, that a violation ofan individual licensee acting on behalf of the partnership orcorporation was known or should have been known by one (1) ormore of the partners, officers, or managers of the partnership orcorporation and:
(1) the violation was not reported to the commissioner; and
(2) no corrective action was taken.
(f) In addition to or in lieu of any applicable denial, suspension,or revocation of a license under subsection (b), a person may, aftera hearing, be subject to the imposition by the commissioner undersubsection (b) of a civil penalty of not less than fifty dollars ($50)and not more than ten thousand dollars ($10,000). A penalty imposedunder this subsection may be enforced in the same manner as a civiljudgement.
(g) A licensed insurance producer or limited lines producer shall,not more than ten (10) days after the producer receives a request ina registered or certified letter from the commissioner, furnish thecommissioner with a full and complete report listing each insurerwith which the licensee has held an appointment during the yearpreceding the request.
(h) If a licensee fails to provide the report requested undersubsection (g) not more than ten (10) days after the licensee receivesthe request, the commissioner may, in the commissioner's solediscretion, without a hearing, and in addition to any other sanctionsallowed by law, suspend any insurance license held by the licenseepending receipt of the appointment report.
(i) The commissioner shall promptly notify all appointing insurersand the licensee regarding any suspension, revocation, or termination
of a license by the commissioner under this section.
(j) The commissioner may not grant, renew, continue, or permitto continue any license if the commissioner finds that the license isbeing used or will be used by the applicant or licensee for thepurpose of writing controlled business. As used in this subsection,"controlled business" means:
(1) insurance written on the interests of:
(A) the applicant or licensee;
(B) the applicant's or licensee's immediate family; or
(C) the applicant's or licensee's employer; or
(2) insurance covering:
(A) the applicant or licensee;
(B) members of the applicant's or licensee's immediatefamily; or
(C) either:
(i) a corporation, limited liability company, association, orpartnership; or
(ii) the officers, directors, substantial stockholders,partners, members, managers, employees of such acorporation, limited liability company, association, orpartnership;
of which the applicant or licensee or a member of theapplicant's or licensee's immediate family is an officer,director, substantial stockholder, partner, member, manager,associate, or employee.
However, this section does not apply to insurance written or interestsinsured in connection with or arising out of credit transactions. Alicense is considered to have been used or intended to be used for thepurpose of writing controlled business if the commissioner finds thatduring any twelve (12) month period the aggregate commissionsearned from the controlled business exceeded twenty-five percent(25%) of the aggregate commission earned on all business written bythe applicant or licensee during the same period.
(k) The commissioner has the authority to:
(1) enforce the provisions of; and
(2) impose any penalty or remedy authorized by;
this chapter or any other provision of this title against any personwho is under investigation for or charged with a violation of thischapter or any other provision of this title, even if the person'slicense or registration has been surrendered or has lapsed byoperation of law.
(l) For purposes of this section, the violation of any provision ofIC 28 concerning the sale of a life insurance policy or an annuitycontract shall be considered a violation described in subsection(b)(2).
(m) The commissioner may order a licensee to make restitution ifthe commissioner finds that the licensee has committed a violationdescribed in:
(1) subsection (b)(4);
(2) subsection (b)(7); (3) subsection (b)(8); or
(4) subsection (b)(16).
(n) The commissioner shall notify the securities commissionerappointed under IC 23-19-6-1(a) when an administrative action orcivil proceeding is filed under this section and when an order isissued under this section denying, suspending, or revoking a license.
As added by P.L.132-2001, SEC.3. Amended by P.L.182-2001,SEC.2; P.L.27-2007, SEC.26.
IC 27-1-15.6-13
No consideration given to unlicensed sellers
Sec. 13. (a) An insurance company or insurance producer shall notpay a commission, service fee, brokerage fee, or other valuableconsideration to a person for selling, soliciting, or negotiatinginsurance in Indiana if the person is required to be licensed underthis chapter and is not licensed.
(b) A person shall not accept a commission, service fee, brokeragefee, or other valuable consideration for selling, soliciting, ornegotiating insurance in Indiana if the person is required to belicensed under this chapter and is not licensed.
(c) Renewal commissions or other deferred commissions may bepaid to a person for selling, soliciting, or negotiating insurance inIndiana if the person was required to be licensed under this chapterand was licensed at the time of the sale, solicitation, or negotiation.
(d) An insurer or insurance producer may pay or assigncommissions, service fees, brokerage fees, or other valuableconsideration to an insurance agency or to a person who does notsell, solicit, or negotiate insurance in Indiana, unless the paymentwould violate IC 27-1-20-30.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-14
Insurance producer acting as agent of insurer
Sec. 14. An insurance producer shall not act as an agent of aninsurer unless the insurance producer becomes an appointed producerof the insurer. An insurance producer who is not acting as an agentof an insurer is not required to become appointed.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-15
Notification of termination
Sec. 15. (a) An insurer or authorized representative of an insurerthat terminates the appointment, employment, contract, or otherinsurance business relationship with a producer shall notify thecommissioner not more than thirty (30) days after the effective dateof the termination using a format prescribed by the commissioner, if:
(1) the reason for termination is described in section 12 of thischapter; or
(2) the insurer has knowledge that the producer was found by acourt, a government body, or a self-regulatory organization
authorized by law to have engaged in any of the activitiesdescribed in section 12 of this chapter.
Upon the written request of the insurance commissioner, the insurershall provide additional information, documents, records, and otherdata pertaining to the termination or activity of the producer.
(b) If an insurer discovers, upon further review or investigation,additional information that would have been reportable to thecommissioner under subsection (a) had the insurer known of theexistence of the additional information, the insurer or an authorizedrepresentative of the insurer shall promptly notify the commissionerof the additional information in a format acceptable to thecommissioner.
(c) A copy of the notification of termination of a producer thatmust be provided to the commissioner under this section shall alsobe provided to the producer as follows:
(1) Not more than fifteen (15) days after making the notificationrequired under subsection (a) or (b), the insurer shall mail acopy of the notification to the producer at the producer's lastknown address. If the producer is terminated for cause for anyof the reasons described in section 12 of this chapter, theinsurer shall provide a copy of the notification to the producerat the producer's last known address by certified mail, returnreceipt requested, postage prepaid, or by overnight deliveryusing a nationally recognized carrier.
(2) Not more than thirty (30) days after the producer hasreceived the original or additional notification, the producermay file written comments concerning the substance of thenotification with the commissioner. The producer shall, by thesame means used by the producer to file the written commentswith the commissioner, simultaneously send a copy of thecomments to the reporting insurer, and the comments shallbecome a part of the commissioner's file and accompany everycopy of a report distributed or disclosed for any reason aboutthe producer as permitted under subsection (e).
(d) Immunities under this section are as follows:
(1) In the absence of actual malice, an insurer, an authorizedrepresentative of an insurer, a producer, the commissioner, andan organization of which the commissioner is a member andthat compiles information and makes it available to otherinsurance commissioners or regulatory or law enforcementagencies are immune from civil liability, and a civil cause ofaction of any nature shall not arise against these entities or theirrespective agents or employees, as a result of:
(A) a statement or information required by or provided underthis section or any information relating to a statement thatmay be requested in writing by the commissioner from aninsurer or producer; or
(B) a statement by a terminating insurer to a producer or bya producer to a terminating insurer;
limited solely and exclusively to whether a termination for
cause referred to in subsection (a) was reported to thecommissioner, provided that the propriety of any terminationfor cause referred to in subsection (a) is certified in writing byan officer or authorized representative of the insurer orproducer terminating the relationship.
(2) In any action brought against a person that may haveimmunity under subdivision (1) for:
(A) making a statement required under this section; or
(B) providing information relating to a statement that may berequested by the commissioner;
the party bringing the action must plead specifically in anyallegation that subdivision (1) does not apply because theperson making the statement or providing the information didso with actual malice.
(3) Existing statutory or common law privileges or immunitiesare not abrogated or modified by subdivision (1) or (2).
(e) Confidentiality under this section is as follows:
(1) Documents, materials, and other forms of information in thecontrol or possession of the department that are:
(A) furnished by:
(i) an insurer or producer; or
(ii) an employee or agent of an insurer acting on behalf ofthe insurer or producer; or
(B) obtained by the commissioner in an investigation underthis section;
are confidential by law and privileged, are not subject to publicinspection and copying under IC 5-14-3-3, are not subject tosubpoena, and are not subject to discovery or admissible inevidence in any private civil action. However, the commissioneris authorized to use the documents, materials, or otherinformation in the furtherance of any regulatory or legal actionbrought as a part of the commissioner's duties.
(2) Neither the commissioner nor any person who receivesconfidential documents, materials, or other informationdescribed in subdivision (1) while acting under the authority ofthe commissioner may be permitted or required to testify in anyprivate civil action concerning the confidential documents,materials, or information described in subdivision (1).
(3) To assist in the performance of the commissioner's dutiesunder this chapter, the commissioner may:
(A) share documents, materials, and other information,including the confidential and privileged documents,materials, and information described in subdivision (1),with:
(i) other state, federal, and international regulatoryagencies;
(ii) the National Association of Insurance Commissioners,its affiliates or subsidiaries; and
(iii) state, federal, and international law enforcementauthorities; provided that the recipient agrees to maintain theconfidentiality and privileged status of the documents,materials, or other information;
(B) receive documents, materials, and information, includingotherwise confidential and privileged documents, materials,and information, from:
(i) the National Association of Insurance Commissioners,its affiliates or subsidiaries; and
(ii) regulatory and law enforcement officials of otherforeign or domestic jurisdictions;
and shall maintain as confidential or privileged anydocument, material, or information received with notice orthe understanding that it is confidential or privileged underthe laws of the jurisdiction that is the source of thedocument, material, or information; and
(C) enter into agreements governing sharing and use ofinformation consistent with this subsection.
(4) Disclosure of documents, materials, and information:
(A) to the commissioner; or
(B) by the commissioner;
under this section does not result in a waiver of any applicableprivilege or claim of confidentiality in the documents, materials,or information.
(5) This chapter does not prohibit the commissioner fromreleasing final, adjudicated actions, including for causeterminations that are open to public inspection under IC 5-14,to a database or other clearinghouse service maintained by theNational Association of Insurance Commissioners or by itsaffiliates or subsidiaries.
(f) If an insurer, an authorized representative of an insurer, or aproducer fails to report as required under this section or is found tohave reported falsely with actual malice by a court of competentjurisdiction, the commissioner may, after notice and hearing, suspendor revoke the license or certificate of authority of the insurer,authorized representative, or producer, and may fine the insurer,authorized representative, or producer under IC 27-4-1-6.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-16
Nonresident license applicant with license from other state
Sec. 16. (a) The commissioner shall waive any requirements,except the requirements imposed by section 8 of this chapter, for anonresident license applicant with a valid license from the applicant'shome state if the applicant's home state awards nonresident licensesto residents of Indiana on the same basis.
(b) A nonresident producer's satisfaction of the nonresidentproducer's home state's continuing education requirements forlicensed insurance producers also satisfies Indiana's continuingeducation requirements if the non-resident producer's home staterecognizes the satisfaction of the non-resident producer's home state's
continuing education requirements imposed upon producers fromIndiana on the same basis.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-17
Reports of administrative actions or criminal prosecutions againstproducers
Sec. 17. (a) A producer shall report to the commissioner anyadministrative action taken against the producer in anotherjurisdiction or by another governmental agency in Indiana not morethan thirty (30) days after the final disposition of the matter. Thereport shall include a copy of the order, consent to order, or otherrelevant legal documents.
(b) Not more than thirty (30) days after an initial pretrial hearingdate, a producer shall report to the commissioner any criminalprosecution of the producer initiated in any jurisdiction. The reportshall include a copy of the initial complaint filed, the order resultingfrom the hearing, and any other relevant legal documents.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-18
Issuance of limited lines producer's license without examination
Sec. 18. The commissioner may issue a limited lines producer'slicense to the following without examination:
(1) A person who is a ticket-selling producer of a commoncarrier and who will act only with reference to the issuance ofinsurance on personal effects carried as baggage, in connectionwith the transportation provided by such common carrier.
(2) A person who will only negotiate or solicit limited travelaccident insurance in transportation terminals.
(3) A limited line credit insurance producer.
(4) A person who will only negotiate or solicit insurance underClass 2(j) of IC 27-1-5-1.
(5) Any person who will negotiate or solicit a kind of insurancethat the commissioner finds does not require an examination todemonstrate professional competency.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-19
Prearranged funeral insurance
Sec. 19. (a) As used in this section, "prearranged funeralinsurance" means insurance that is used to fund any of the following:
(1) A funeral trust under IC 30-2-10 and IC 30-2-13.
(2) Any other arrangement for advance payment of funeral andburial expenses.
(b) A person shall not sell, solicit, or negotiate prearrangedfuneral insurance unless the person is licensed as either of thefollowing:
(1) An insurance producer with a life qualification undersection 7 of this chapter. (2) A limited lines prod