CHAPTER 1. UNFAIR COMPETITION; UNFAIR OR DECEPTIVE ACTS AND PRACTICES
IC 27-4
ARTICLE 4. UNFAIR COMPETITION;UNAUTHORIZED INSURERS; FOREIGN INSURERS
IC 27-4-1
Chapter 1. Unfair Competition; Unfair or Deceptive Acts andPractices
IC 27-4-1-1
Purpose
Sec. 1. The purpose of this chapter is to regulate the tradepractices in the business of insurance, in accordance with the intentof Congress as expressed in 15 U.S.C. 1011 et seq., by defining, orproviding for the determination of, all such practices whichconstitute in this state unfair methods of competition and unfair ordeceptive acts or practices and by prohibiting the trade practices sodefined or determined.
(Formerly: Acts 1947, c.112, s.1.) As amended by P.L.252-1985,SEC.144.
IC 27-4-1-2
Definitions
Sec. 2. When and as used in this chapter:
(a) The term "person" shall mean any individual, corporation,company including any farm mutual insurance company, association,partnership, firm, reciprocal exchange, inter-insurer, Lloyds insurers,society, fraternal benefit society, lodge, order, council, corps, andany other association or legal entity, engaged in the business ofinsurance, including but not in limitation of the foregoing, insuranceproducers, brokers, solicitors, advisors, auditors, and adjusters.
(b) "Department" shall mean the department of insurance of thisstate created and defined as a department in the state government ofthe state of Indiana by IC 27-1.
(c) "Commissioner" shall mean the insurance commissioner ofthis state appointed pursuant to, and on and in whom the powers,duties, management, and control of the department are conferred andvested by, the provisions of IC 27-1.
(Formerly: Acts 1947, c.112, s.2.) As amended by P.L.252-1985,SEC.145; P.L.129-2003, SEC.7; P.L.178-2003, SEC.34.
IC 27-4-1-3
Prohibited use of unfair methods of competition and deceptive actsor practices
Sec. 3. No person shall engage in this state in any trade practicewhich is defined in this chapter or determined pursuant to thischapter as an unfair method of competition or as an unfair ordeceptive act or practice in the business of insurance as defined inIC 27-1-2-3.
(Formerly: Acts 1947, c.112, s.3.) As amended by P.L.252-1985,SEC.146.
IC 27-4-1-4
Enumeration of unfair methods of competition and deceptive actsand practices
Sec. 4. (a) The following are hereby defined as unfair methods ofcompetition and unfair and deceptive acts and practices in thebusiness of insurance:
(1) Making, issuing, circulating, or causing to be made, issued,or circulated, any estimate, illustration, circular, or statement:
(A) misrepresenting the terms of any policy issued or to beissued or the benefits or advantages promised thereby or thedividends or share of the surplus to be received thereon;
(B) making any false or misleading statement as to thedividends or share of surplus previously paid on similarpolicies;
(C) making any misleading representation or anymisrepresentation as to the financial condition of anyinsurer, or as to the legal reserve system upon which any lifeinsurer operates;
(D) using any name or title of any policy or class of policiesmisrepresenting the true nature thereof; or
(E) making any misrepresentation to any policyholderinsured in any company for the purpose of inducing ortending to induce such policyholder to lapse, forfeit, orsurrender the policyholder's insurance.
(2) Making, publishing, disseminating, circulating, or placingbefore the public, or causing, directly or indirectly, to be made,published, disseminated, circulated, or placed before the public,in a newspaper, magazine, or other publication, or in the formof a notice, circular, pamphlet, letter, or poster, or over anyradio or television station, or in any other way, anadvertisement, announcement, or statement containing anyassertion, representation, or statement with respect to anyperson in the conduct of the person's insurance business, whichis untrue, deceptive, or misleading.
(3) Making, publishing, disseminating, or circulating, directlyor indirectly, or aiding, abetting, or encouraging the making,publishing, disseminating, or circulating of any oral or writtenstatement or any pamphlet, circular, article, or literature whichis false, or maliciously critical of or derogatory to the financialcondition of an insurer, and which is calculated to injure anyperson engaged in the business of insurance.
(4) Entering into any agreement to commit, or individually orby a concerted action committing any act of boycott, coercion,or intimidation resulting or tending to result in unreasonablerestraint of, or a monopoly in, the business of insurance.
(5) Filing with any supervisory or other public official, ormaking, publishing, disseminating, circulating, or delivering toany person, or placing before the public, or causing directly orindirectly, to be made, published, disseminated, circulated,delivered to any person, or placed before the public, any false
statement of financial condition of an insurer with intent todeceive. Making any false entry in any book, report, orstatement of any insurer with intent to deceive any agent orexaminer lawfully appointed to examine into its condition orinto any of its affairs, or any public official to which suchinsurer is required by law to report, or which has authority bylaw to examine into its condition or into any of its affairs, or,with like intent, willfully omitting to make a true entry of anymaterial fact pertaining to the business of such insurer in anybook, report, or statement of such insurer.
(6) Issuing or delivering or permitting agents, officers, oremployees to issue or deliver, agency company stock or othercapital stock, or benefit certificates or shares in any commonlaw corporation, or securities or any special or advisory boardcontracts or other contracts of any kind promising returns andprofits as an inducement to insurance.
(7) Making or permitting any of the following:
(A) Unfair discrimination between individuals of the sameclass and equal expectation of life in the rates or assessmentscharged for any contract of life insurance or of life annuityor in the dividends or other benefits payable thereon, or inany other of the terms and conditions of such contract.However, in determining the class, consideration may begiven to the nature of the risk, plan of insurance, the actualor expected expense of conducting the business, or any otherrelevant factor.
(B) Unfair discrimination between individuals of the sameclass involving essentially the same hazards in the amount ofpremium, policy fees, assessments, or rates charged or madefor any policy or contract of accident or health insurance orin the benefits payable thereunder, or in any of the terms orconditions of such contract, or in any other mannerwhatever. However, in determining the class, considerationmay be given to the nature of the risk, the plan of insurance,the actual or expected expense of conducting the business,or any other relevant factor.
(C) Excessive or inadequate charges for premiums, policyfees, assessments, or rates, or making or permitting anyunfair discrimination between persons of the same classinvolving essentially the same hazards, in the amount ofpremiums, policy fees, assessments, or rates charged ormade for:
(i) policies or contracts of reinsurance or joint reinsurance,or abstract and title insurance;
(ii) policies or contracts of insurance against loss ordamage to aircraft, or against liability arising out of theownership, maintenance, or use of any aircraft, or ofvessels or craft, their cargoes, marine builders' risks,marine protection and indemnity, or other risks commonlyinsured under marine, as distinguished from inland marine,
insurance; or
(iii) policies or contracts of any other kind or kinds ofinsurance whatsoever.
However, nothing contained in clause (C) shall be construed toapply to any of the kinds of insurance referred to in clauses (A)and (B) nor to reinsurance in relation to such kinds ofinsurance. Nothing in clause (A), (B), or (C) shall be construedas making or permitting any excessive, inadequate, or unfairlydiscriminatory charge or rate or any charge or rate determinedby the department or commissioner to meet the requirements ofany other insurance rate regulatory law of this state.
(8) Except as otherwise expressly provided by law, knowinglypermitting or offering to make or making any contract or policyof insurance of any kind or kinds whatsoever, including but notin limitation, life annuities, or agreement as to such contract orpolicy other than as plainly expressed in such contract or policyissued thereon, or paying or allowing, or giving or offering topay, allow, or give, directly or indirectly, as inducement to suchinsurance, or annuity, any rebate of premiums payable on thecontract, or any special favor or advantage in the dividends,savings, or other benefits thereon, or any valuable considerationor inducement whatever not specified in the contract or policy;or giving, or selling, or purchasing or offering to give, sell, orpurchase as inducement to such insurance or annuity or inconnection therewith, any stocks, bonds, or other securities ofany insurance company or other corporation, association,limited liability company, or partnership, or any dividends,savings, or profits accrued thereon, or anything of valuewhatsoever not specified in the contract. Nothing in thissubdivision and subdivision (7) shall be construed as includingwithin the definition of discrimination or rebates any of thefollowing practices:
(A) Paying bonuses to policyholders or otherwise abatingtheir premiums in whole or in part out of surplusaccumulated from nonparticipating insurance, so long as anysuch bonuses or abatement of premiums are fair andequitable to policyholders and for the best interests of thecompany and its policyholders.
(B) In the case of life insurance policies issued on theindustrial debit plan, making allowance to policyholders whohave continuously for a specified period made premiumpayments directly to an office of the insurer in an amountwhich fairly represents the saving in collection expense.
(C) Readjustment of the rate of premium for a groupinsurance policy based on the loss or expense experiencethereunder, at the end of the first year or of any subsequentyear of insurance thereunder, which may be made retroactiveonly for such policy year.
(D) Paying by an insurer or insurance producer thereof dulylicensed as such under the laws of this state of money,
commission, or brokerage, or giving or allowing by aninsurer or such licensed insurance producer thereof anythingof value, for or on account of the solicitation or negotiationof policies or other contracts of any kind or kinds, to abroker, an insurance producer, or a solicitor duly licensedunder the laws of this state, but such broker, insuranceproducer, or solicitor receiving such consideration shall notpay, give, or allow credit for such consideration as receivedin whole or in part, directly or indirectly, to the insured byway of rebate.
(9) Requiring, as a condition precedent to loaning money uponthe security of a mortgage upon real property, that the owner ofthe property to whom the money is to be loaned negotiate anypolicy of insurance covering such real property through aparticular insurance producer or broker or brokers. However,this subdivision shall not prevent the exercise by any lender ofthe lender's right to approve or disapprove of the insurancecompany selected by the borrower to underwrite the insurance.
(10) Entering into any contract, combination in the form of atrust or otherwise, or conspiracy in restraint of commerce in thebusiness of insurance.
(11) Monopolizing or attempting to monopolize or combiningor conspiring with any other person or persons to monopolizeany part of commerce in the business of insurance. However,participation as a member, director, or officer in the activitiesof any nonprofit organization of insurance producers or otherworkers in the insurance business shall not be interpreted, initself, to constitute a combination in restraint of trade or ascombining to create a monopoly as provided in this subdivisionand subdivision (10). The enumeration in this chapter ofspecific unfair methods of competition and unfair or deceptiveacts and practices in the business of insurance is not exclusiveor restrictive or intended to limit the powers of thecommissioner or department or of any court of review undersection 8 of this chapter.
(12) Requiring as a condition precedent to the sale of real orpersonal property under any contract of sale, conditional salescontract, or other similar instrument or upon the security of achattel mortgage, that the buyer of such property negotiate anypolicy of insurance covering such property through a particularinsurance company, insurance producer, or broker or brokers.However, this subdivision shall not prevent the exercise by anyseller of such property or the one making a loan thereon of theright to approve or disapprove of the insurance companyselected by the buyer to underwrite the insurance.
(13) Issuing, offering, or participating in a plan to issue or offer,any policy or certificate of insurance of any kind or character asan inducement to the purchase of any property, real, personal,or mixed, or services of any kind, where a charge to the insuredis not made for and on account of such policy or certificate of
insurance. However, this subdivision shall not apply to any ofthe following:
(A) Insurance issued to credit unions or members of creditunions in connection with the purchase of shares in suchcredit unions.
(B) Insurance employed as a means of guaranteeing theperformance of goods and designed to benefit the purchasersor users of such goods.
(C) Title insurance.
(D) Insurance written in connection with an indebtednessand intended as a means of repaying such indebtedness inthe event of the death or disability of the insured.
(E) Insurance provided by or through motorists service clubsor associations.
(F) Insurance that is provided to the purchaser or holder ofan air transportation ticket and that:
(i) insures against death or nonfatal injury that occursduring the flight to which the ticket relates;
(ii) insures against personal injury or property damage thatoccurs during travel to or from the airport in a commoncarrier immediately before or after the flight;
(iii) insures against baggage loss during the flight to whichthe ticket relates; or
(iv) insures against a flight cancellation to which the ticketrelates.
(14) Refusing, because of the for-profit status of a hospital ormedical facility, to make payments otherwise required to bemade under a contract or policy of insurance for chargesincurred by an insured in such a for-profit hospital or otherfor-profit medical facility licensed by the state department ofhealth.
(15) Refusing to insure an individual, refusing to continue toissue insurance to an individual, limiting the amount, extent, orkind of coverage available to an individual, or charging anindividual a different rate for the same coverage, solely becauseof that individual's blindness or partial blindness, except wherethe refusal, limitation, or rate differential is based on soundactuarial principles or is related to actual or reasonablyanticipated experience.
(16) Committing or performing, with such frequency as toindicate a general practice, unfair claim settlement practices (asdefined in section 4.5 of this chapter).
(17) Between policy renewal dates, unilaterally canceling anindividual's coverage under an individual or group healthinsurance policy solely because of the individual's medical orphysical condition.
(18) Using a policy form or rider that would permit acancellation of coverage as described in subdivision (17).
(19) Violating IC 27-1-22-25, IC 27-1-22-26, orIC 27-1-22-26.1 concerning motor vehicle insurance rates. (20) Violating IC 27-8-21-2 concerning advertisementsreferring to interest rate guarantees.
(21) Violating IC 27-8-24.3 concerning insurance and healthplan coverage for victims of abuse.
(22) Violating IC 27-8-26 concerning genetic screening ortesting.
(23) Violating IC 27-1-15.6-3(b) concerning licensure ofinsurance producers.
(24) Violating IC 27-1-38 concerning depository institutions.
(25) Violating IC 27-8-28-17(c) or IC 27-13-10-8(c) concerningthe resolution of an appealed grievance decision.
(26) Violating IC 27-8-5-2.5(e) through IC 27-8-5-2.5(j)(expired July 1, 2007, and removed) or IC 27-8-5-19.2 (expiredJuly 1, 2007, and repealed).
(27) Violating IC 27-2-21 concerning use of credit information.
(28) Violating IC 27-4-9-3 concerning recommendations toconsumers.
(29) Engaging in dishonest or predatory insurance practices inmarketing or sales of insurance to members of the United StatesArmed Forces as:
(A) described in the federal Military Personnel FinancialServices Protection Act, P.L.109-290; or
(B) defined in rules adopted under subsection (b).
(30) Violating IC 27-8-19.8-20.1 concerning stranger originatedlife insurance.
(b) Except with respect to federal insurance programs underSubchapter III of Chapter 19 of Title 38 of the United States Code,the commissioner may, consistent with the federal Military PersonnelFinancial Services Protection Act (P.L.109-290), adopt rules underIC 4-22-2 to:
(1) define; and
(2) while the members are on a United States militaryinstallation or elsewhere in Indiana, protect members of theUnited States Armed Forces from;
dishonest or predatory insurance practices.
(Formerly: Acts 1947, c.112, s.4; Acts 1955, c.10, s.1; Acts 1971,P.L.389, SEC.1; Acts 1974, P.L.124, SEC.1.) As amended by Acts1981, P.L.247, SEC.1; P.L.259-1983, SEC.1; P.L.271-1987, SEC.5;P.L.5-1988, SEC.144; P.L.160-1988, SEC.1; P.L.2-1992, SEC.783;P.L.122-1992, SEC.2; P.L.8-1993, SEC.417; P.L.8-1993, SEC.418;P.L.225-1993, SEC.1; P.L.223-1993, SEC.6; P.L.1-1994, SEC.134;P.L.133-1994, SEC.1; P.L.116-1994, SEC.49; P.L.2-1995, SEC.104;P.L.188-1996, SEC.1; P.L.185-1996, SEC.10; P.L.150-1997, SEC.2;P.L.132-2001, SEC.8; P.L.130-2002, SEC.3; P.L.178-2003, SEC.35;P.L.201-2003, SEC.2; P.L.211-2003, SEC.1; P.L.97-2004, SEC.97;P.L.39-2005, SEC.2; P.L.138-2005, SEC.1; P.L.1-2006, SEC.487;P.L.131-2007, SEC.1; P.L.3-2008, SEC.211; P.L.112-2008, SEC.2;P.L.1-2009, SEC.146.
IC 27-4-1-4.5 Enumeration of unfair claim settlement practices
Sec. 4.5. The following are unfair claim settlement practices:
(1) Misrepresenting pertinent facts or insurance policyprovisions relating to coverages at issue.
(2) Failing to acknowledge and act reasonably promptly uponcommunications with respect to claims arising under insurancepolicies.
(3) Failing to adopt and implement reasonable standards for theprompt investigation of claims arising under insurance policies.
(4) Refusing to pay claims without conducting a reasonableinvestigation based upon all available information.
(5) Failing to affirm or deny coverage of claims within areasonable time after proof of loss statements have beencompleted.
(6) Not attempting in good faith to effectuate prompt, fair, andequitable settlements of claims in which liability has becomereasonably clear.
(7) Compelling insureds to institute litigation to recoveramounts due under an insurance policy by offering substantiallyless than the amounts ultimately recovered in actions broughtby such insureds.
(8) Attempting to settle a claim for less than the amount towhich a reasonable individual would have believed theindividual was entitled by reference to written or printedadvertising material accompanying or made part of anapplication.
(9) Attempting to settle claims on the basis of an applicationthat was altered without notice to or knowledge or consent ofthe insured.
(10) Making claims payments to insureds or beneficiaries notaccompanied by a statement setting forth the coverage underwhich the payments are being made.
(11) Making known to insureds or claimants a policy ofappealing from arbitration awards in favor of insureds orclaimants for the purpose of compelling them to acceptsettlements or compromises less than the amount awarded inarbitration.
(12) Delaying the investigation or payment of claims byrequiring an insured, a claimant, or the physician of either tosubmit a preliminary claim report and then requiring thesubsequent submission of formal proof of loss forms, both ofwhich submissions contain substantially the same information.
(13) Failing to promptly settle claims, where liability hasbecome reasonably clear, under one (1) portion of the insurancepolicy coverage in order to influence settlements under otherportions of the insurance policy coverage.
(14) Failing to promptly provide a reasonable explanation of thebasis in the insurance policy in relation to the facts orapplicable law for denial of a claim or for the offer of acompromise settlement. (15) In negotiations concerning liability insurance claims,ascribing a percentage of fault to a person seeking to recoverfrom an insured party, in spite of an obvious absence of fault onthe part of that person.
(16) The unfair claims settlement practices defined inIC 27-4-1.5.
As added by P.L.259-1983, SEC.2. Amended by P.L.271-1987,SEC.6; P.L.194-1991, SEC.1; P.L.203-2001, SEC.7.
IC 27-4-1-5
Statement of charges; notice and hearing; intervention
Sec. 5. (a) Whenever the commissioner shall have reason tobelieve that any such person has been engaged or is engaging in thisstate in any unfair method of competition or any unfair or deceptiveact or practice defined in section 4 of this chapter and that aproceeding by him in respect thereto would be to the interest of thepublic, he shall issue and cause to be served upon such person astatement of the charges in that respect and a notice in writing of ahearing thereon to be held under IC 4-21.5-3.
(b) Whenever the hearing involves the claim, averment, orcomplaint of, or made by, a person who is not an investigator,deputy, examiner, or other employee of the department, a copy of thesubstance of such claim, averment, or complaint shall be included inor exhibited with such notice. The commissioner and departmentshall afford all interested persons or parties the right and opportunityfor the settlement or adjustment of all claims, controversies, andissues when such persons or parties shall join in a request in writingfor such opportunity.
(Formerly: Acts 1947, c.112, s.5.) As amended by P.L.252-1985,SEC.147; P.L.7-1987, SEC.145.
IC 27-4-1-5.5
Repealed
(Repealed by P.L.1-1991, SEC.165.)
IC 27-4-1-5.6
Unfair claim settlement practice complaint; response;investigation; report; notice of remedies
Sec. 5.6. (a) A person who believes the person has been adverselyaffected by an unfair claim settlement practice under section 4.5 ofthis chapter may file a complaint with the commissioner. If thecommissioner believes an unfair claim settlement practice hasoccurred, the commissioner shall, within ten (10) business days fromthe date of receipt of a written complaint, deliver a copy of thecomplaint to the insurer and shall respond in writing to thecomplaining party, at the address provided in the complaint, advisingthe party of the following:
(1) The specific action taken by the department on thecomplaint.
(2) Any further investigations or other actions that are intended
by the department.
(b) An insurer who receives a written notice of complaint undersubsection (a) shall promptly conduct an investigation of the mattersalleged in the complaint. Within twenty (20) business days from thedate of receipt of the complaint, the insurer shall provide to thecommissioner and the complaining party a written report containingthe following information:
(1) The specific reasons for actions taken by the insurer withrespect to the claim.
(2) The specific reasons for any inaction by the insurer withrespect to the claim.
(3) If the claim has not been settled, a good faith estimate of thetime required for settlement.
(c) An insurer who commits an unfair claims settlement practiceor who fails to comply with this section is subject to action by thecommissioner under section 6 of this chapter.
(d) Each insurer shall provide to each current policyholder a one(1) time written notice of the remedies provided under this section.Future policyholders shall be notified by the insurer at the time theinsurance policy is issued.
As added by P.L.1-1991, SEC.166.
IC 27-4-1-6
Cease and desist order; penalties
Sec. 6. (a) If after a hearing under IC 4-21.5-3, the commissionerdetermines that the method of competition or the act or practice inquestion is defined in section 4 of this chapter and that the personcomplained of has engaged in such method of competition, act, orpractice in violation of this chapter, he shall reduce his findings towriting and shall issue and cause to be served on the person chargedwith the violation an order requiring such person to cease and desistfrom such method of competition, act, or practice, and thecommissioner may at his discretion order one (1) or more of thefollowing:
(1) Payment of a civil penalty of not more than twenty-fivethousand dollars ($25,000) for each act or violation. If theperson knew or reasonably should have known that he was inviolation of this chapter, the penalty may be not more than fiftythousand dollars ($50,000) for each act or violation.
(2) Suspension or revocation of the person's license, orcertificate of authority, if he knew or reasonably should haveknown he was in violation of this chapter.
(b) In determining the amount of a civil penalty under subsection(a)(1), the commissioner shall consider the remediation effortsundertaken by the person.
(c) All civil penalties imposed and collected under this sectionshall be deposited in the state general fund.
(Formerly: Acts 1947, c.112, s.6.) As amended by P.L.259-1983,SEC.3; P.L.7-1987, SEC.146; P.L.121-1990, SEC.4; P.L.149-1990,SEC.2; P.L.203-2001, SEC.8.
IC 27-4-1-7
Judicial review; civil enforcement orders
Sec. 7. (a) Any person required by an order of the commissionerunder section 6 of this chapter to cease and desist from engaging inany unfair method of competition or any unfair or deceptive act orpractice defined in section 4 of this chapter may obtain judicialreview of such order under IC 4-21.5-5.
(b) The commissioner may file a petition for civil enforcement ofan order under IC 4-21.5-6.
(Formerly: Acts 1947, c.112, s.7.) As amended by P.L.252-1985,SEC.148; P.L.7-1987, SEC.147.
IC 27-4-1-8
Determination of additional methods of unfair competition ordeceptive acts or practices; notice and hearing
Sec. 8. Whenever the commissioner shall have reason to believethat any person engaged in the business of insurance is engaging inthis state in any method of competition or in any act or practice in theconduct of such business which is not defined in section 4 of thischapter, that such method of competition is unfair, or that such act orpractice is unfair or deceptive, and that a proceeding by him inrespect thereto would be to the interest of the public, he may issueand cause to be served upon such person a statement of the chargesin that respect and a notice of a hearing thereon. Each such hearingshall be conducted under IC 4-21.5-3 in the same manner as thehearings provided for in section 5 of this chapter.
(Formerly: Acts 1947, c.112, s.8.) As amended by P.L.252-1985,SEC.149; P.L.7-1987, SEC.148.
IC 27-4-1-9
Judicial review
Sec. 9. Any party to a proceeding under this chapter, includingany intervenor, may obtain judicial review under IC 4-21.5-5.
(Formerly: Acts 1947, c.112, s.9.) As amended by P.L.252-1985,SEC.150; P.L.7-1987, SEC.149.
IC 27-4-1-10
Application of other laws
Sec. 10. No order of the commissioner under this chapter orjudgment of a court to enforce the same shall in any way relieve orabsolve any person affected by such order from any liability underany other statute of this state.
(Formerly: Acts 1947, c.112, s.10.) As amended by P.L.252-1985,SEC.151.
IC 27-4-1-11
Foreign or alien insurer's unfair competition or unfair or deceptivepractice by periodical or radio; notice to supervisory official ofdomiciliary state
Sec. 11. If any foreign or alien insurer engages in this state in an
unfair method of competition or in an unfair or deceptive practice asdefined in section 4(1) or 4(2) of this chapter by means of anyadvertisement, announcement, or statement, in any magazine or otherperiodical publication having a general circulation in more than five(5) states, or by means of any radio broadcast to more than five (5)states, including the state of domicile of such insurer, and if the lawsof the state where such insurer is domiciled make provision forenjoining of such method of competition or practice, it shall be theduty of the commissioner to advise the insurance supervisory officialof such domiciliary state of the violation in order that he may takeappropriate action, but the commissioner shall have no authority toproceed, with respect to such violation, under either section 5 or 8 ofthis chapter. For the purpose of this section the domiciliary state ofan alien insurer shall be deemed to be its state of entry, or the stateof the principal office in the United States.
(Formerly: Acts 1947, c.112, s.11.) As amended by P.L.252-1985,SEC.152.
IC 27-4-1-12
Violations; penalties
Sec. 12. Any person who violates a cease and desist order of thecommissioner under section 6 of this chapter, or an order of the courtunder IC 4-21.5, after it has become final, and while such order is ineffect, may, after notice and hearing under IC 4-21.5 and upon orderof the commissioner, be subject at the discretion of the commissionerto one (1) or more of the following:
(1) A civil penalty of not more than twenty-five thousanddollars ($25,000) for each act or violation.
(2) Suspension or revocation of the person's license orcertificate of authority.
(Formerly: Acts 1947, c.112, s.12.) As amended by P.L.259-1983,SEC.4; P.L.7-1987, SEC.150; P.L.121-1990, SEC.5; P.L.149-1990,SEC.3.
IC 27-4-1-13
Cumulative powers and remedies
Sec. 13. The powers vested in the commissioner and thedepartment by this chapter shall be additional to any other powers toenforce any penalties or forfeitures authorized by law with respect tothe methods, acts, and practices declared hereby to be unfair ordeceptive.
(Formerly: Acts 1947, c.112, s.13.) As amended by P.L.252-1985,SEC.153.
IC 27-4-1-14
Repealed
(Repealed by P.L.7-1987, SEC.151.)
IC 27-4-1-15
Enforcement; additional personnel Sec. 15. (a) For the purpose of maintaining the affirmative, active,and definite administration of the provisions of this chapter, thecommissioner, with the approval of the governor, may appoint suchadditional actuaries, agents, deputies, examiners, assistants,stenographers, reporters, and other employees in the department asmay be found necessary to carry out the provisions of this chapter.Except as otherwise provided in this chapter, such additionaldeputies, examiners, assistants, reporters, and employees soappointed shall be chosen for their fitness, either professional orpractical, as the nature of the position may require, irrespective oftheir political beliefs or affiliations. The technical or professionalqualifications of any applicant shall be determined by examination,professional rating, or otherwise, as the commissioner with theapproval of the governor may determine. Subject to the approval ofthe governor and the state budget director, the salaries of suchadditional actuaries, agents, deputies, examiners, assistants,stenographers, reporters, and other employees shall be fixed by thecommissioner. Any actuary agent, deputy, examiner, assistant,stenographer, or employee so employed may be removed at any timeby the commissioner.
(b) In the absence of the commissioner, he may, by written order,designate a deputy to conduct any hearing, and, in such case, suchdeputy commissioner shall possess and may exercise all powers ofthe commissioner with respect to the matter in hearing.
(c) Neither the commissioner nor any actuary, deputy, examiner,assistant, or employee in the department shall be liable in theirindividual capacity, except to the state of Indiana, for any act doneor omitted in connection with the performance of their respectiveduties under the provisions of this chapter.
(Formerly: Acts 1947, c.112, s.15.) As amended by P.L.252-1985,SEC.155.
IC 27-4-1-16
Inapplicable laws
Sec. 16. No provision of IC 4-22-2 shall be construed to apply toany hearings held or proceedings had pursuant to the provisions ofthis chapter.
(Formerly: Acts 1947, c.112, s.16.) As amended by P.L.252-1985,SEC.156.
IC 27-4-1-17
Construction and application
Sec. 17. (a) This chapter shall be, and shall be construed as being,in addition to IC 27-1, and in addition to IC 27-7-2, and in additionto any and all statutes supplemental to either, and in addition to anyand all other laws of the state of Indiana concerning insurance or thebusiness of insurance, whether enacted at any time in the 1947regular session or at any preceding session of the general assemblyof the state of Indiana.
(b) Whereas certain unlawful practices are set forth in other
insurance statutes of the state of Indiana which unlawful practicesare similar or identical to those enumerated in section 4 of thischapter and are characterized in other insurance statutes as criminalin nature, it is deemed desirable to retain the criminal penaltiesimposed by other insurance statutes; for that purpose, nothingcontained in this chapter shall be construed to repeal, amend, orotherwise to affect in any way IC 27-1, IC 27-7-2, or any other lawof the state of Indiana concerning insurance or the business ofinsurance whether enacted at any time in the 1947 regular session orat any preceding session of the general assembly of the state ofIndiana, it being the intent of this chapter to provide additionaladministrative remedies for the purpose of controlling unfairmethods of competition and unfair and deceptive acts and practicesin and affecting the business of insurance.
(c) Nothing in this chapter shall be construed as exempting orexcepting from the provisions of this chapter any person engaged inthe business of insurance in this state, except as in this chapterotherwise expressly provided.
(Formerly: Acts 1947, c.112, s.18.) As amended by P.L.252-1985,SEC.157.
IC 27-4-1-18
Causes of action created
Sec. 18. This article does not create a cause of action other thanan action by:
(1) the commissioner to enforce his order; or
(2) a person, as defined in section 1 of this chapter, to appeal anorder of the commissioner.
As added by P.L.259-1983, SEC.6.
IC 27-4-1-19
Annual report of consumer complaints
Sec. 19. (a) The commissioner shall, on an annual basis and in amanner determined by the commissioner, publish figures andproduce a report containing the following information:
(1) The ratio of valid consumer complaints lodged against eachcompany weighted by the direct premiums earned in Indiana byeach company.
(2) A separate listing of any company determined by thecommissioner to have committed a practice that is designatedan unfair claim settlement practice under section 4.5 of thischapter if the practice is committed flagrantly and in consciousdisregard of section 4.5 of this chapter or if the practice iscommitted with a frequency that indicates a general businesspractice.
(3) Any enforcement action taken by the commissioner as aresult of a practice described in subdivision (2).
(b) The commissioner shall provide a copy of the report requiredunder subsection (a) to the house of representatives and senatecommittees of the general assembly that are assigned responsibility
for insurance issues.
As added by P.L.121-1990, SEC.6 and P.L.149-1990, SEC.4.Amended by P.L.203-2001, SEC.9.