IC 27-1-39
    Chapter 39. Independent Educational Institution Self-InsuranceConsortium

IC 27-1-39-1
"Commissioner" defined
    Sec. 1. As used in this chapter, "commissioner" means theinsurance commissioner appointed under IC 27-1-1-2.
As added by P.L.38-2006, SEC.1.

IC 27-1-39-2
"Consortium" defined
    Sec. 2. As used in this chapter, "consortium" refers to aself-insurance consortium established under section 7 of this chapter.
As added by P.L.38-2006, SEC.1.

IC 27-1-39-3
"Department" defined
    Sec. 3. As used in this chapter, "department" refers to thedepartment of insurance created by IC 27-1-1-1.
As added by P.L.38-2006, SEC.1.

IC 27-1-39-4
"Independent postsecondary educational institution" defined
    Sec. 4. As used in this chapter, "independent postsecondaryeducational institution" refers to an independent, degree grantingcollege or university that is:
        (1) accredited by the Higher Learning Commission of the NorthCentral Association of Colleges and Schools;
        (2) chartered in Indiana; and
        (3) operated as a nonprofit entity under Section 501(c)(3) of theInternal Revenue Code.
As added by P.L.38-2006, SEC.1. Amended by P.L.2-2007, SEC.352.

IC 27-1-39-5
"Member" defined
    Sec. 5. As used in this chapter, "member" means an independentpostsecondary educational institution that enters into an agreementunder section 7 of this chapter to form a consortium.
As added by P.L.38-2006, SEC.1. Amended by P.L.2-2007, SEC.353.

IC 27-1-39-6
"Self-insurance fund" defined
    Sec. 6. As used in this chapter, "self-insurance fund" means a fundestablished by a consortium to provide money sufficient to:
        (1) cover self-insured risk retained by the consortium;
        (2) pay premiums for stop-loss insurance coverage; and
        (3) pay the administrative and other costs of the consortium.
As added by P.L.38-2006, SEC.1.
IC 27-1-39-7
Establishing self-insurance consortium and trust
    Sec. 7. (a) Notwithstanding any other law, two (2) or moreindependent postsecondary educational institutions may establish atrust under Indiana law to establish and maintain a self-insuranceconsortium through which the independent educational institutionsjointly maintain a self-insurance fund to cover certain retained risksand jointly purchase stop-loss insurance coverage. The coverage forretained risks or stop-loss insurance coverage provided for throughthe trust may include any of the following types of coverage:
        (1) Property and casualty coverage.
        (2) Worker's compensation coverage.
        (3) Employee health coverage.
        (4) Employee vision coverage.
        (5) Employee dental coverage.
        (6) Other coverage.
    (b) If the coverage described in subsection (a)(3), (a)(4), or (a)(5)is provided through the self-insurance fund, the coverage must beprovided through a multiple employer welfare arrangement regulatedunder IC 27-1-34.
As added by P.L.38-2006, SEC.1. Amended by P.L.2-2007, SEC.354.

IC 27-1-39-8
Consortium governance
    Sec. 8. A consortium shall be governed by a governing authoritycomprised entirely of representatives of the consortium's members.
As added by P.L.38-2006, SEC.1.

IC 27-1-39-9
Regulation of trust
    Sec. 9. A trust created under section 7 of this chapter is subject toregulation by the department as follows:
        (1) The trust must be registered with the department.
        (2) The trust shall:
            (A) retain a total risk for the self-insurance fund of not morethan one hundred twenty-five percent (125%) of the amountof expected claims for the following year; and
            (B) obtain stop-loss insurance issued by an insurerauthorized to do business in Indiana to cover losses in excessof the amount retained under clause (A).
        (3) Contributions by the members must be set to fund onehundred percent (100%) of the total risk retained undersubdivision (2)(A) plus all other costs of the trust.
        (4) The trust shall maintain a fidelity bond in an amountapproved by the department, covering each person responsiblefor the trust, to protect against acts of fraud or dishonesty inservicing the trust.
        (5) The trust is subject to IC 27-4-1-4.5 regarding claimssettlement practices.
        (6) The trust shall, before March 1 of each year, file an annual

financial statement in the form required by IC 27-1-3-13.
        (7) The trust is not a member of the Indiana insurance guarantyassociation under IC 27-6-8. The liability of each member isjoint and several.
        (8) The trust is subject to examination by the department. Thetrust shall pay all costs associated with an examination.
        (9) The department may deny, suspend, or revoke theregistration of the trust if the commissioner finds that the trust:
            (A) is in a hazardous financial condition;
            (B) refuses to be examined or produce records forexamination; or
            (C) has failed to pay a final judgment rendered against thetrust by a court within thirty (30) days.
As added by P.L.38-2006, SEC.1. Amended by P.L.1-2007, SEC.184.

IC 27-1-39-10
Rulemaking authority
    Sec. 10. The department may adopt rules under IC 4-22-2 toimplement this chapter.
As added by P.L.38-2006, SEC.1.