CHAPTER 7. MISCELLANEOUS PROVISIONS
IC 27-14-7
Chapter 7. Miscellaneous Provisions
IC 27-14-7-1
Supplemental nature of article; applicability of other insurancestatutes
Sec. 1. (a) This article, while independent of any other law, issupplemental to IC 27-1-2 through IC 27-1-20.
(b) Except as provided in this article, all provisions of IC 27-1-2through IC 27-1-20 are fully and completely applicable to this articlein the same manner as if the provisions of this article had been anoriginal part of IC 27-1-2 through IC 27-1-20. If any conflict existsbetween this article and IC 27-1-2 through IC 27-1-20, this article iscontrolling.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-2
Limitation of actions
Sec. 2. A civil action:
(1) challenging the validity of; or
(2) arising out of;
action that is taken or proposed to be taken under this article mustcommence not later than sixty (60) days after the approval by thecommissioner of the plan under which or in respect of which theaction is taken or proposed to be taken.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-3
Severability of provisions
Sec. 3. The provisions of this article are severable in the mannerprovided in IC 1-1-1-8(b).
As added by P.L.5-2000, SEC.4.
IC 27-14-7-4
Judicial review of action of commissioner; mandamus
Sec. 4. (a) A person who is aggrieved by an action of thecommissioner under this article may petition for judicial review ofthe action under IC 4-21.5-5.
(b) A person who is aggrieved by a failure of the commissioner toact or make a determination required by this article may bring anaction for mandate in the circuit court of Marion County to compelthe commissioner to act or make the determination.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-5
Treatment of confidential information
Sec. 5. (a) Except as provided in this section, IC 5-14 applies toall filings made under this article.
(b) Filings made under this article may include information thatmight be damaging to an applicant or its affiliate if made available
to competitors. Subject to subsection (c), all information, documents,and copies of the filings containing trade secrets of an applicant orits affiliate are declared:
(1) confidential for the purposes of IC 5-14-3-4; and
(2) not subject to inspection and copying by the public underperson, except to insurance departments of other states whichagree to such confidential treatment;
without the written consent of the person to which they pertain.
(c) If the commissioner, after giving notice to the person seekingsuch confidential treatment and any other person requestingdisclosure, after giving them an opportunity to respond at adepartmental hearing in camera, and after giving due considerationto any legitimate interest in preserving trade secrets, determines thatthe members or policyholders have a compelling interest that wouldbe served by disclosure, then the commissioner, after five (5)business days have elapsed from notification to the applicant, maydisclose all or any part thereof in a manner and subject to thelimitations as the commissioner determines appropriate.
(d) If within the five (5) business days period referred to insubsection (c), the applicant notifies the commissioner that theapplicant or other interested party has filed an action seeking aprotective order from a circuit or superior court to prevent or to limitdisclosure, the commissioner shall not disclose the information,documents, or copies thereof during the pendency of the action andany appeal or after any final court decision prohibiting disclosure.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-6
Prohibited acts
Sec. 6. An MIHC and its subsidiaries and affiliates may not doany of the following:
(1) Lend funds to a person to finance the purchase of stock ina stock offering by an MIHC or any of its subsidiaries otherthan policyholder loans granted under the terms of an insurancepolicy of a subsidiary.
(2) Pay commissions, special fees, or other special orextraordinary compensation to officers, directors, interestedpersons, or affiliates for arranging, promoting, aiding, assisting,or participating in the structure or placement of a stock offeringby the MIHC or any of its subsidiaries, except to the extentpermitted under IC 27-14-4.
(3) Enter into an understanding or agreement transferring legalor beneficial ownership of stock to another person in avoidanceof this article.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-7
Reorganized insurer or MIHC having all rights and obligations ofMIC
Sec. 7. (a) Except as provided in subsection (b), a reorganized
insurer to which insurance policies, contracts, and other assets andobligations are transferred in connection with a plan ofreorganization under this article has, with respect to the insurancepolicies, contracts, and other assets and obligations, all rights,liabilities, and authority of the MIC that is the subject of the plan ofreorganization.
(b) An MIHC resulting from a plan of reorganization of a MICunder this article, has all obligations and liabilities of the MIC forany claim, asserted or otherwise, that existed at the effective date ofthe reorganization and that:
(1) seeks the imposition of a constructive or charitable trust onassets of the MIC for the benefit of policyholders, members, orother persons;
(2) seeks distribution or return of assets, or other form ofcompensation, from the MIC to policy holders or members; or
(3) otherwise arises out of, or relates to, the ownership interestof policyholders or members of the MIC, or to the value of theirownership interests, including any claim that challenges astatutory transaction engaged in by the MIC before the effectivedate of the reorganization.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-8
Effect of reorganization on pending actions
Sec. 8. If a proceeding is pending against an MIC that is thesubject of a plan of reorganization under this article:
(1) the proceeding may be continued after the effective date asif the reorganization had not occurred; or
(2) the reorganized insurer that is the successor to the MIC'sbusiness may be substituted in the proceeding for the MIC;
except that the MIHC resulting from the plan of reorganization shallbe substituted for the MIC and any subsidiaries of the MIC in allproceedings involving any claim described in section 7(b) of thischapter.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-9
Conversion of MIHC to stock company
Sec. 9. An MIHC may convert to a stock company underIC 27-1-8-13 (repealed) as though the MIHC were an MIC.
As added by P.L.5-2000, SEC.4. Amended by P.L.1-2010, SEC.113.
IC 27-14-7-10
Experts hired by commissioner
Sec. 10. The commissioner shall, at the applicant's expense, hireattorneys, actuaries, accountants, investment bankers, and otherexperts as may be necessary to assist the commissioner in reviewingall matters under this article that are associated with a plan ofreorganization or a plan to issue stock. The commissioner may at anytime require an applicant to deposit an amount of money with the
department of insurance in anticipation of expenses to be incurred bythe commissioner under this article.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-11
Adoption of rules
Sec. 11. The commissioner may adopt rules under IC 4-22-2 tocarry out the purposes of this article.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-12
Reorganization of domestic MIC with foreign mutual holdingcompany
Sec. 12. (a) A domestic MIC may reorganize with a foreignmutual holding company by complying with IC 27-14-2. Thecommissioner may waive any provision of IC 27-14-2 if thecommissioner determines the provision to be unnecessary for theprotection of policyholders and members.
(b) A plan of reorganization under subsection (a) is effectivewhen the reorganized domestic stock insurance company subsidiaryhas filed its articles of amendment and amended certificate ofauthority in the office of the county recorder of the county in whichthe principal office of the company is located or at a later datespecified in the plan of reorganization.
(c) A domestic MIC seeking to reorganize under subsection (a)may at the same time redomesticate to another state by complyingwith IC 27-1-6.5 and the applicable requirements of the state towhich it seeks to transfer domicile.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-13
Acquisition of foreign MIC by existing MIHC; grantingmembership interests
Sec. 13. (a) An existing MIHC may, with the prior approval of thecommissioner:
(1) acquire direct or indirect ownership of a converting foreignMIC that becomes a stock insurer in compliance with the lawsof its state of domicile; and
(2) grant membership interests and equity rights to the membersor policyholders of a foreign mutual insurer that merges with adirect or indirect domestic or foreign subsidiary of the MIHC oris otherwise acquired by the MIHC.
(b) The commissioner shall consider the fairness of the terms andconditions of the transaction, whether the interests of the membersof each MIHC that is a party to the transaction are protected, andwhether the proposed transaction is in the public interest whendetermining whether to approve a transaction under subsection (a).
As added by P.L.5-2000, SEC.4.
IC 27-14-7-14 Concurrent reorganization of multiple MICs into single MIHC
Sec. 14. The concurrent reorganization of two (2) or more MICsinto a single MIHC structure under IC 27-14-2 may be accomplishedby a joint application and a joint plan of reorganization and may beapproved by the commissioner following a combined hearing. Thecommissioner may allow such other procedures as may be necessaryor desirable to avoid unnecessary or duplicative costs and efforts insatisfying the requirements of this article and in effectuating thereorganization.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-15
Reorganization of MIHC with foreign mutual insurance holdingcompany
Sec. 15. An MIHC may reorganize with a foreign mutualinsurance holding company, subject to the approval of thecommissioner, under IC 27-1-23. If the MIHC is not the survivingentity in any reorganization transaction, then the commissioner mustconsider the effect of the transaction on the protections affordedpolicyholders under the members' surplus protection principle indetermining whether the transaction is in the best interests of thepolicyholders. If the commissioner waives any or all of theprovisions of the members' surplus protection principle in approvinga transaction, then the commissioner must explain the basis forwaiving the provisions in writing in the order approving thetransaction.
As added by P.L.5-2000, SEC.4.