CHAPTER 8. PROPERTY AND CASUALTY INSURANCE AND GUARANTY ASSOCIATION LAW

IC 27-6-8
    Chapter 8. Property and Casualty Insurance and GuarantyAssociation Law

IC 27-6-8-1
Short title
    Sec. 1. (Short Title) This chapter may be cited as the "IndianaInsurance Guaranty Association Law of 1971."
(Formerly: Acts 1971, P.L.390, SEC.1.)

IC 27-6-8-2
Purpose
    Sec. 2. (Purpose) The purpose of this chapter is to provide amechanism for the payment of claims under certain insurancepolicies to avoid excessive delay in payment and to avoid excessivefinancial loss to claimants or policyholders because of the insolvencyof an insurer, to assist in the detection and prevention of insurerinsolvencies, and to provide an association to assess the cost of thisprotection among insurers.
(Formerly: Acts 1971, P.L.390, SEC.1.)

IC 27-6-8-3
Scope
    Sec. 3. This chapter applies to all kinds of direct insurance except:
        (1) life, annuity, health, or disability insurance;
        (2) mortgage guaranty, financial guaranty, or other forms ofinsurance offering protection against investment risks;
        (3) fidelity or surety bonds, or any other bonding obligations;
        (4) credit insurance, vendors' single interest insurance, orcollateral protection insurance or similar insurance with theprimary purpose of protecting the interests of a creditor arisingout of a creditor-debtor transaction;
        (5) warranty or service contract insurance;
        (6) title insurance;
        (7) ocean marine insurance;
        (8) a transaction between a person or an affiliate of a person andan insurer or an affiliate of an insurer that involves the transferof investment or credit risk without a transfer of insurance risk;
        (9) insurance provided by or guaranteed by a government entity;and
        (10) insurance written on a retroactive basis to cover knownlosses for which a claim has already been made and the claimis known to the insurer at the time the insurance is bound.
(Formerly: Acts 1971, P.L.390, SEC.1.) As amended byP.L.163-1988, SEC.1; P.L.31-1988, SEC.20.

IC 27-6-8-4
Definitions
    Sec. 4. As used in this chapter, unless otherwise provided:
        (1) The term "account" means any one (1) of the three (3)

accounts created by section 5 of this chapter.
        (2) The term "association" means the Indiana InsuranceGuaranty Association created by section 5 of this chapter.
        (3) The term "commissioner" means the commissioner ofinsurance of this state.
        (4) The term "covered claim" means an unpaid claim whicharises out of and is within the coverage and not in excess of theapplicable limits of an insurance policy to which this chapterapplies issued by an insurer, if the insurer becomes an insolventinsurer after the effective date (January 1, 1972) of this chapterand (a) the claimant or insured is a resident of this state at thetime of the insured event or (b) the property from which theclaim arises is permanently located in this state. "Coveredclaim" shall be limited as provided in section 7 of this chapter,and shall not include (1) any amount due any reinsurer, insurer,insurance pool, or underwriting association, as subrogationrecoveries or otherwise. However, a claim for any such amount,asserted against a person insured under a policy issued by aninsurer which has become an insolvent insurer, which if it werenot a claim by or for the benefit of a reinsurer, insurer,insurance pool or underwriting association, would be a"covered claim" may be filed directly with the receiver orliquidator of the insolvent insurer, but in no event may any suchclaim be asserted in any legal action against the insured of suchinsolvent insurer; nor (2) any supplementary obligationincluding but not limited to adjustment fees and expenses,attorney fees and expenses, court costs, interest and bondpremiums, whether arising as a policy benefit or otherwise,prior to the appointment of a liquidator; nor (3) any unpaidclaim that is not both filed within one (1) year after an order ofliquidation and permitted to share in liquidation distributionsunder IC 27-9-3-33 if the insolvent insurer is a domestic insureror in accordance with the applicable provisions of the law of thestate of domicile if the insolvent insurer is not a domesticinsurer; nor (4) any claim by a person whose net worth at thetime an insured event occurred was more than five milliondollars ($5,000,000); nor (5) a claim against a person insured byan insolvent insurer if the person's net worth at the time aninsured event occurred was more than fifty million dollars($50,000,000); nor (6) any claim by a person who directly orindirectly controls, is controlled, or is under common controlwith an insolvent insurer on December 31 of the year before theorder of liquidation. All covered claims filed in the liquidationproceedings shall be referred immediately to the association bythe liquidator for processing as provided in this chapter.
        (5) The term "insolvent insurer" means (a) a member insurerholding a valid certificate of authority to transact insurance inthis state either at the time the policy was issued or when theinsured event occurred and (b) against whom a final order ofliquidation, with a finding of insolvency, to which there is no

further right of appeal, has been entered by a court of competentjurisdiction in the company's state of domicile. "Insolventinsurer" shall not be construed to mean an insurer with respectto which an order, decree, judgment or finding of insolvencywhether preliminary or temporary in nature or order torehabilitation or conservation has been issued by any court ofcompetent jurisdiction prior to January 1, 1972 or which isadjudicated to have been insolvent prior to that date.
        (6) The term "member insurer" means any person who islicensed or holds a certificate of authority under IC 27-1-6-18or IC 27-1-17-1 to transact in Indiana any kind of insurance forwhich coverage is provided under section 3 of this chapter,including the exchange of reciprocal or inter-insurancecontracts. The term includes any insurer whose license orcertificate of authority to transact such insurance in Indiana mayhave been suspended, revoked, not renewed, or voluntarilysurrendered. A "member insurer" does not include farm mutualinsurance companies organized and operating pursuant toIC 27-5.1 other than a company to which IC 27-5.1-2-6 applies.
        (7) The term "net direct written premiums" means direct grosspremiums written in this state on insurance policies to whichthis chapter applies, less return premiums thereon and dividendspaid or credited to policyholders on such direct business. "Netdirect premiums written" does not include premiums oncontracts between insurers or reinsurers.
        (8) The term "person" means an individual, corporation, limitedliability company, partnership, reciprocal or inter-insuranceexchange, association, or voluntary organization.
(Formerly: Acts 1971, P.L.390, SEC.1; Acts 1973, P.L.279, SEC.1.)As amended by Acts 1977, P.L.281, SEC.5; P.L.163-1988, SEC.2;P.L.8-1993, SEC.422; P.L.255-1995, SEC.7; P.L.129-2003, SEC.12.

IC 27-6-8-5
Creation of the association
    Sec. 5. There is created a nonprofit unincorporated legal entity tobe known as the Indiana Insurance Guaranty Association (referred toin this chapter as the "association"). All insurers defined as memberinsurers in section 4(6) of this chapter shall be and remain membersof the association as a condition of their authority to transactinsurance in this state. The association shall perform its functionsunder a plan of operation established and approved under section 8of this chapter and shall exercise its powers through a board ofdirectors established under section 6 of this chapter. For purposes ofadministration and assessment, the association shall be divided intothree (3) separate accounts:
        (1) The worker's compensation insurance account.
        (2) The automobile insurance account.
        (3) The account for all other insurance to which this chapterapplies.
(Formerly: Acts 1971, P.L.390, SEC.1.) As amended by

P.L.252-1985, SEC.221; P.L.28-1988, SEC.83.

IC 27-6-8-6
Board of directors
    Sec. 6. (a) The board of directors of the association shall consistof nine (9) member insurers one (1) of whom shall be selected by orfrom among each of the following groups representative of memberinsurers, such selection to be subject to the approval of thecommissioner:
        (1) One (1) person representing the American InsuranceAssociation.
        (2) One (1) person representing the Alliance of AmericanInsurers.
        (3) One (1) person representing the National Association ofIndependent Insurers.
        (4) One (1) person representing the National Association ofMutual Insurance Companies.
        (5) One (1) person representing the Insurance Institute ofIndiana.
        (6) Three (3) persons representing the:
            (A) domestic stock companies;
            (B) domestic mutual companies; or
            (C) domestic reciprocal insurers;
        with not more than two (2) persons representing any category.
        (7) One (1) person representing independent unaffiliated stock,fire, and casualty companies to be appointed by thecommissioner.
    (b) Not more than one (1) member insurer in a group of insurersunder the same management or ownership shall serve as a director atthe same time.
    (c) Directors shall serve such terms as shall be established in theplan of operation.
    (d) Vacancies on the board shall be filled for the remaining periodof the term in the same manner as the initial selection.
    (e) If no directors are selected by March 1, 1972, thecommissioner may appoint the initial members of the board ofdirectors.
    (f) In approving selections to the board, the commissioner shallconsider among other things whether all member insurers are fairlyrepresented.
    (g) Directors may be reimbursed from the assets of the associationfor expenses incurred by them as members of the board of directors.
(Formerly: Acts 1971, P.L.390, SEC.1.) As amended byP.L.252-1985, SEC.222; P.L.233-1999, SEC.6 and P.L.268-1999,SEC.16.

IC 27-6-8-7
Powers and duties of the association
    Sec. 7. (a) The association shall:
    (i) Be obligated to the extent of the covered claims as defined

herein existing at the time of the order of liquidation or arisingwithin thirty (30) days after the order of liquidation, or before thepolicy expiration date if less than thirty (30) days after thedetermination, or before the insured replaces the policy or causes itscancellation, if he does so within thirty (30) days of thedetermination. This obligation shall include only that amount of eachcovered claim which is less than one hundred thousand dollars($100,000). In no event shall the association be obligated to apolicyholder or claimant in an amount in excess of the applicablelimits provided in the policy from which the claim arises, nor shallthe association be obligated in an amount in excess of three hundredthousand dollars ($300,000) per policy for all claims arising out ofone (1) occurrence. The return of unearned premium is limited to thelesser of: eighty percent (80%) of the paid but unearned premium; orsix hundred fifty dollars ($650) multiplied by the number of monthsor partial months remaining in the policy term, not to exceed twelve(12) months.
    (1) In the case of claims arising from bodily injury, sickness, ordisease, including death resulting therefrom, except claims underIC 22-3 or similar state or federal laws providing benefits foroccupational injury or disease, the amount for which the associationshall be obligated shall not exceed the claimant's reasonableexpenses incurred for necessary medical, surgical, x-ray, and dentalservices, including prosthetic devices and necessary ambulance,hospital, professional nursing, and funeral services, and any amountsactually lost by reason of the claimant's inability to work and earnwages or salary or their equivalent that would otherwise have beenearned in the normal course of such injured claimant's employment,to which may be added at the discretion of the association a sum notto exceed one thousand dollars ($1,000) for all other costs andexpenses incurred by the claimant prior to the insolvency. In the caseof a claim for wrongful death, the foregoing obligation of theassociation shall, in addition to the limits set forth above, be subjectto the limitations provided by the wrongful death statutes of the state.Such amounts which are legally payable because of the death of aclaimant shall be paid to the claimant's estate, to the claimant's fatheror mother or guardian, to the surviving spouse or children, or to thenext of kin as set out in IC 34-23-1 and IC 34-23-2.
    The amount for which the association shall be obligated may alsoinclude payments in fact made to others, not members of claimant'shousehold, which were reasonably incurred to obtain from such otherpersons ordinary and necessary services for the production of incomein lieu of those services the claimant would have performed forhimself had he not been injured.
    In the case of claims arising from bodily injury, sickness, ordisease, including those in which death results, under IC 22-3 orsimilar state or federal laws providing benefits for occupationalinjury or disease, the association is obligated only to the extentprovided under IC 22-3.
    (2) A third party having a covered claim against any insured of an

insolvent member insurer may file such claim in the liquidationproceeding under IC 27-9-3 if such insolvent member insurer is adomestic insurer and pursuant to the applicable provisions of law ofthe state of domicile if such insolvent member insurer is not adomestic insurer. The liquidator shall immediately refer said claimto the association to process as provided in this chapter unless theclaimant shall within thirty (30) days from the date of filing saidclaim in the liquidation proceeding, file with the commissioner asliquidator a written demand that said claim be processed inliquidation proceedings as a claim not covered by this chapter.
    (ii) Be deemed the insurer to the extent of its obligation on thecovered claims as limited by this chapter and to this extent shall haveall rights, duties, and obligations of the insolvent insurer as if theinsurer had not become insolvent, including those relating toreinsurance contracts and treaties entered into by the insolventinsurer. However, the association's obligation to defend any insuredof the insolvent insurer or to indemnity against the costs of suchdefense terminates as soon as the claimant or claimants have beenpaid all benefits that they are entitled to under this chapter.
    (iii) Allocate claims paid and expenses incurred among the three(3) accounts separately, and assess member insurers separately foreach account amounts necessary to pay the obligation of theassociation under paragraph (i) of this subsection subsequent to aninsolvency, the expenses of handling covered claims subsequent toan insolvency, the cost of examination under IC 27-6-8-12 and otherexpenses authorized by this chapter. The assessments of eachmember insurer shall be on a uniform percentage basis in theproportion that the net direct written premiums in this state of themember insurer for the preceding calendar year on the kinds ofinsurance in the account bears to the net direct written premiums ofall member insurers for the preceding calendar year on the kinds ofinsurance in the account. However, in addition to the pro rataassessments already described, an assessment may be made againsteach member insurer in a stated amount up to fifty dollars ($50) peryear for the purpose of paying the administrative expenses of theassociation. There shall be no assessment for any account so long asassets held in such account are sufficient to cover all estimatedpayments for liquidation in process under such account. Eachmember insurer shall be notified of the assessment not later thanthirty (30) days before it is due. No member insurer may be assessedin any year on any account an amount greater than one percent (1%)of that member insurer's net direct written premiums in this state forthe preceding calendar year on the kinds of insurance in the account.If the maximum assessment, together with the other assets of theassociation in any account, does not provide in any one (1) year inany account an amount sufficient to make all necessary paymentsfrom that account, the funds available shall be prorated and theunpaid portion shall be paid as soon thereafter as funds becomeavailable. The association may exempt or defer, in whole or in part,the assessment of any member insurer, if the assessment would cause

the member insurer's financial statement to reflect amounts of capitalor surplus less than the minimum amounts required for a certificateof authority by any jurisdiction in which the member insurer isauthorized to transact insurance. However, during the period ofdeferment no dividends shall be paid to shareholders orpolicyholders by a company whose assessment has been deferred. Adeferred assessment shall be paid when such payment will not reducecapital or surplus below required minimums. Such payments shall berefunded to those companies whose assessments were increased asthe result of such deferment, or at the option of any such company,shall be credited to future assessments against such company.
    (iv) Investigate, adjust, compromise, settle, and pay coveredclaims to the extent of the association's obligation and deny all otherclaims and may review settlements, releases, and judgments to whichthe insolvent insurer or its insured were parties to determine theextent to which such settlements, releases, and judgments may beproperly contested, and as appropriate to contest them.
    (v) Notify such persons as the commissioner directs underIC 27-6-8-9(b)(i).
    (vi) Handle claims through its employees or through one (1) ormore insurers or other persons designated as servicing facilities.Designation of a servicing facility is subject to the approval of thecommissioner, but such designation may be declined by a memberinsurer.
    (vii) Reimburse each servicing facility for obligations of theassociation paid by the facility and for expenses incurred by thefacility while handling claims on behalf of the association and shallpay the other expenses of the association authorized by this chapter.Any unreimbursed obligation of the association to a member insurerdesignated a servicing facility shall constitute an admitted asset ofsuch member insurer.
    (viii) Be entitled to and permitted to examine all claims, files, andrecords of an insolvent insurer at such times and to such extent asnecessary or appropriate to obtain information regarding coveredclaims individually and in the aggregate, and to establish suchprocedures as appropriate to obtain prompt notice of all coveredclaims and information pertaining thereto during the course ofliquidation.
    (b) The association may:
    (i) Appear in, defend, and appeal any action on a covered claimbut it shall have no obligation to pay any amount in excess of theprovisions of IC 27-6-8-7.
    (ii) Employ or retain such persons as are necessary to handleclaims and perform other duties of the association.
    (iii) Borrow funds necessary to effect the purposes of this chapterin accord with the plan of operation.
    (iv) Sue or be sued.
    (v) Negotiate and become a party to any contracts as are necessaryto carry out the purpose of this chapter.
    (vi) Perform such other acts as are necessary or proper to

effectuate the purpose of this chapter.
    (vii) Refund to the then member insurers in proportion to thecontribution of each such member insurer to that account that amountby which the assets of the account exceed the liabilities if, at the endof the calendar year, the board of directors finds that the assets of theassociation in any account exceed the liabilities of that account asestimated by the board of directors for the coming year, provided thatthe association may retain as a reserve fund from the excess of theassets over liabilities at the end of any calendar year an amount notto exceed ten percent (10%) of such excess assets of such account.Any such reserve fund or earnings from its investment shall be usedonly for the payment of covered claims and authorized associationexpenses. Upon appropriate action by the board of directors suchreserve fund shall be refunded to the then member insurers inproportion to the total contribution of each such member insurer tosuch account.
(Formerly: Acts 1971, P.L.390, SEC.1; Acts 1975, P.L.280, SEC.2.)As amended by Acts 1977, P.L.281, SEC.6; P.L.163-1988, SEC.3;P.L.3-1990, SEC.95; P.L.1-1998, SEC.150.

IC 27-6-8-8
Plan of operation
    Sec. 8. (a)(i) The association shall submit to the commissioner aplan of operation and any amendments thereto necessary or suitableto assure the fair, reasonable, and equitable administration of theassociation. The plan of operation and amendments thereto shallbecome effective upon approval in writing by the commissioner.
    (ii) If the association fails to submit a suitable plan of operationby March 31, 1972, or if at any time thereafter the association failsto submit suitable amendments to the plan, the commissioner shall,after notice and hearing, adopt and promulgate reasonable rules asare necessary or advisable to effectuate the provisions of this chapter.Such rules shall continue in force until modified by thecommissioner or superseded by a plan submitted by the associationand approved by the commissioner.
    (b) All member insurers shall comply with the plan of operation.
    (c) The plan of operation shall:
        (i) Establish the procedures whereby all the powers and dutiesof the association under section 7 of this chapter will beperformed.
        (ii) Establish procedures for handling assets of the association.
        (iii) Establish the amount and method of reimbursing membersof the board of directors under section 6 of this chapter.
        (iv) Establish procedures by which claims may be filed with theassociation by the liquidator and establish acceptable forms ofproof of covered claims. Notice of claims to the receiver orliquidator of the insolvent insurer shall be deemed notice to theassociation or its agent and a list of these claims shall beperiodically submitted to the association or similar organizationin another state by the receiver or liquidator.        (v) Establish regular places and times for meetings of the boardof directors.
        (vi) Establish procedures for records to be kept of financialtransactions of the association, its agents, and the board ofdirectors.
        (vii) Provide that any member insurer aggrieved by any finalaction or decision of the association may appeal to thecommissioner within thirty (30) days after the action ordecision.
        (viii) Establish the procedures whereby selections for the boardof directors will be submitted to the commissioner.
        (ix) Contain additional provisions necessary or proper for theexecution of the powers and duties of the association.
    (d) The plan of operation may provide that any or all powers andduties of the association, except those under section 7(a)(iii) and7(b)(iii) of this chapter, are delegated to a corporation, association,or other organization which performs or will perform functionssimilar to those of this association, or its equivalent, in two (2) ormore states. Such a corporation, association, or organization shall bereimbursed as a servicing facility would be reimbursed and shall bepaid for its performance of any other functions of the association. Adelegation under this subsection shall take effect only with theapproval of both the board of directors and the commissioner, andmay be made only to a corporation, association, or organizationwhich extends protection not substantially less favorable andeffective than that provided by this chapter.
(Formerly: Acts 1971, P.L.390, SEC.1.) As amended byP.L.252-1985, SEC.223.

IC 27-6-8-9
Powers and duties of commissioner
    Sec. 9. (a) The commissioner shall:
        (i) Notify the association of the existence of an insolvent insurernot later than three (3) working days after the commissionerreceives an order of liquidation.
        (ii) Upon request of the board of directors, provide theassociation with a statement of the net direct written premiumsof each member insurer.
    (b) The commissioner may:
        (i) Require that the association notify the insureds of theinsolvent insurer and any other interested parties of the order ofliquidation and of their rights under this chapter. Thisnotification shall be by mail at their last known address, whereavailable, but if sufficient information for notification by mailis not available, notice by publication in a newspaper of generalcirculation in all counties in which the insolvent insurertransacted insurance business shall be sufficient.
        (ii) Require each insurance producer of the insolvent insurer togive prompt written notice by first class mail of such insolvencyand the rights of the insured under this chapter to each insured

of the insolvent insurer for whom the insurance producer isinsurance producer of record, at such insured's last knownaddress.
        (iii) Suspend or revoke, after notice and hearing, the certificateof authority to transact insurance in this state of any memberinsurer which fails to pay an assessment when due or fails tocomply with the plan of operation. As an alternative, thecommissioner may levy a fine on any member insurer whichfails to pay an assessment when due. The fine shall not exceedfive percent (5%) of the unpaid assessment per month, exceptthat no fine shall be less than one hundred dollars ($100) permonth.
        (iv) Revoke the designation of any servicing facility if thecommissioner finds claims are being handled unsatisfactorily.
        (v) Any final action or order of the commissioner under thischapter shall be subject to judicial review in a court ofcompetent jurisdiction.
(Formerly: Acts 1971, P.L.390, SEC.1.) As amended byP.L.163-1988, SEC.4; P.L.178-2003, SEC.41.

IC 27-6-8-10
Effect of paid claims
    Sec. 10. (Effect of Paid Claims) (a) Any person recovering underthis chapter shall be deemed to have assigned the person's rightsunder the policy to the association to the extent of the person'srecovery from the association. Every insured or claimant seeking theprotection of this chapter shall cooperate with the association to thesame extent as the person would have been required to cooperatewith the insolvent insurer. The association shall have no cause ofaction against the insured of the insolvent insurer for any sums it haspaid out except such causes of action as the insolvent insurer wouldhave had if such sums had been paid by the insolvent insurer. In thecase of an insolvent insurer operating on a plan with assessmentliability, payments of claims of the association shall not operate toreduce the liability of insureds to the receiver, liquidator, or statutorysuccessor for unpaid assessments previously made and no assessmentshall be thereafter made for the purpose of reimbursing theassociation.
    (b) The receiver, liquidator, or statutory successor of an insolventinsurer shall be bound by settlements of covered claims by theassociation or a similar organization in another state functioningpursuant to IC 27-6-8-8(d). The court having jurisdiction shall grantsuch claims priority equal to that which the claimant would havebeen entitled in the absence of this chapter against the assets of theinsolvent insurer. The expenses of the association or similarorganization in handling claims shall be accorded the same priorityas the liquidator's expenses.
    (c) The association shall periodically file with the receiver orliquidator of the insolvent insurer statements of the covered claimspaid by the association and estimates of anticipated claims on the

association which shall preserve the rights of the association againstthe assets of the insolvent insurer.
    (d) The association shall have a right to recover from theinsurance producer of record any part of the paid claim for unearnedpremium that represents unearned commission to the insuranceproducer.
(Formerly: Acts 1971, P.L.390, SEC.1.) As amended by Acts 1977,P.L.281, SEC.7; P.L.178-2003, SEC.42.

IC 27-6-8-11
Nonduplication of recovery
    Sec. 11. (a) Any person having a claim against an insurer underany provision in an insurance policy other than a policy of aninsolvent insurer which is also a covered claim, shall be required toexhaust first the person's right under the policy. Any amount payableon a covered claim under this chapter shall be reduced by the amountof recovery under the insurance policy.
    (b) Any person having a claim which may be recovered undermore than one (1) insurance guaranty association or its equivalentshall seek recovery first from the association of the place ofresidence of the insured except that if it is a first party claim fordamage to property with a permanent location, the person shall seekrecovery first from the association of the location of the property,and if it is a worker's compensation claim, the person shall seekrecovery first from the association of the residence of the claimant.Any recovery under this chapter shall be reduced by the amount ofrecovery from any other insurance guaranty association or itsequivalent.
(Formerly: Acts 1971, P.L.390, SEC.1.) As amended by P.L.28-1988,SEC.84.

IC 27-6-8-12
Prevention of insolvencies
    Sec. 12. To aid in the detection and prevention of insurerinsolvencies:
        (1) Every member insurer shall file with the NationalAssociation of Insurance Commissioners for use in their EarlyWarning System on or before March 1, of each year a financialstatement of the same type and content as required byIC 27-1-20-21.
        (2) It shall be the duty of the commissioner:
            (A) To notify the commissioners of all of the other states,territories of the United States, and the District of Columbiain which a member insurer is licensed to do business whenhe takes any of the following actions against a memberinsurer:
                (i) revocation of license;
                (ii) suspension of license;
                (iii) makes any formal order that such company restrict itspremium writing, obtain additional contributions to

surplus, withdraw from the state, reinsure all or any part ofits business, or an increase in capital, surplus, or any otheraccount for the security of policyholders or creditors. Suchnotice shall be mailed to all commissioners within thirty(30) days following the action taken or the date on whichsuch action occurs.
            (B) To report to the board of directors when he has takenany of the actions set forth in (A) of this paragraph or hasreceived a report from any other commissioner indicatingthat any such action has been taken in another state. Suchreport to the board of directors shall contain all significantdetails of the action taken or the report received fromanother commissioner.
            (C) To report to the board of directors when he hasreasonable cause to believe from any examination, whethercompleted or in process, of any member company, that suchcompany may be insolvent or in a financial conditionhazardous to the policyholders or the public.
        (3) The commissioner may seek the advice andrecommendations of the board of directors concerning anymatter affecting his duties and responsibilities regarding thefinancial condition of member companies and companiesseeking admission to transact insurance business in this state.
        (4) The board of directors may, upon majority vote, makereports and recommendations to the commissioner upon anymatter germane to the solvency, liquidation, rehabilitation, orconservation of any member insurer or germane to the solvencyof any company seeking to do an insurance business in thisstate. Such reports and recommendations shall not beconsidered public documents.
        (5) The board of directors may, upon majority vote, request thatthe commissioner order an examination of any member insurerwhich the board in good faith believes may be in a financialcondition hazardous to the policyholders or the public. Withinthirty (30) days of the receipt of such request, the commissionershall begin such examination. The examination may beconducted as a National Association of InsuranceCommissioners examination or may be conducted by suchpersons as the commissioner designates provided such personsare qualified insurance accountants or actuaries. The cost ofsuch examination shall be paid by the association and theexamination report shall be treated as are other examinationreports. In no event shall such examination report be released tothe board of directors prior to its release to the public, but thisshall not preclude the commissioner from complying withsubsection (1). The commissioner shall notify the board ofdirectors when the examination is completed. The request for anexamination shall be kept on file by the commissioner but itshall not be open to public inspection prior to the release of theexamination report to the public.        (6) The board of directors may, upon majority vote, makerecommendations to the commissioner for the detection andprevention of insurer insolvencies.
(Formerly: Acts 1971, P.L.390, SEC.1.) As amended by Acts 1977,P.L.281, SEC.8; P.L.163-1988, SEC.5.

IC 27-6-8-13
Examination of the association
    Sec. 13. (Examination of the Association) The Association shallbe subject to examination and regulation by the commissioner. Theboard of directors shall submit, not later than March 30th of eachyear, a financial report for the preceding calendar year in a formapproved by the commissioner.
(Formerly: Acts 1971, P.L.390, SEC.1.)

IC 27-6-8-14
Tax exemption
    Sec. 14. (Tax Exemption) The association shall be exempt frompayment of all fees and all taxes levied by this state or any of itssubdivisions except taxes levied on real or personal property.
(Formerly: Acts 1971, P.L.390, SEC.1.)

IC 27-6-8-15
Recoupment of assessments; tax credits
    Sec. 15. (a) Member insurers, which during any precedingcalendar year shall have paid one (1) or more assessments leviedpursuant to section 7 of this chapter, shall be allowed a credit againstpremium taxes, adjusted gross income taxes, or any combinationthereof upon revenue or income of member insurers which may beimposed by the state, up to twenty percent (20%) of the assessmentdescribed in section 7 of this chapter for each calendar yearfollowing the year the assessment was paid until the aggregate of allassessments paid to the guaranty association shall have been offsetby either credits against such taxes or refunds from the association.The provisions herein are applicable to all assessments levied afterthe passage of this article.
    (b) To the extent a member insurer elects not to utilize the taxcredits authorized by subsection (a), the member insurer may utilizethe provisions of subsection (c) as a secondary method ofrecoupment.
    (c) The rates and premiums charged for insurance policies towhich this chapter applies shall include amounts sufficient to recoupa sum equal to the amounts paid to the association by the memberinsurer less any amounts returned to the member insurer by theassociation and the rates shall not be deemed excessive because theycontain an amount reasonably calculated to recoup assessments paidby the member insurer.
(Formerly: Acts 1971, P.L.390, SEC.1.) As amended by Acts 1977,P.L.281, SEC.9; P.L.163-1986, SEC.1; P.L.192-2002(ss), SEC.167.
IC 27-6-8-16
Immunity
    Sec. 16. (Immunity) There shall be no liability on the part of andno cause of action of any nature shall arise against any memberinsurer, the association or its agents or employees, the board ofdirectors, or the commissioner or his representatives for any actiontaken by them in the performance of their powers and duties underthis chapter.
(Formerly: Acts 1971, P.L.390, SEC.1.)

IC 27-6-8-17
Stay of proceedings; reopening of default judgments
    Sec. 17. (Stay of Proceedings; Reopening of Default Judgments)All proceedings in which the insolvent insurer is a party or isobligated to defend a party in court in this state shall be stayed for upto six (6) months and such additional time thereafter as may bedetermined by the court from the date the insolvency is determinedor an ancillary proceeding is instituted in the state whichever is laterto permit proper defense by the association of all pending causes ofaction. As to any covered claims arising from a judgment under anydecision, verdict or finding based on the default of the insolventinsurer or its failure to defend an insured, the association either on itsown behalf or on behalf of such insured may apply to have thejudgment, order, decision, verdict or finding set aside by the samecourt or administrator that made the judgment, order, decision,verdict or findings and shall be permitted to defend against the claimon the merits.
(Formerly: Acts 1971, P.L.390, SEC.1; Acts 1973, P.L.279, SEC.2.)

IC 27-6-8-18
Records of insolvent insurers; access; copies
    Sec. 18. The liquidator, receiver, or statutory successor of aninsolvent insurer covered by this chapter shall permit access by theboard or its authorized representative to such of the insolventinsurers records which are necessary for the board in carrying out itsfunctions under this chapter with regard to covered claims. Inaddition, the liquidator, receiver, or statutory successor shall providethe board or its representative with copies of such records upon therequest by the board and at the expense of the board.
(Formerly: Acts 1971, P.L.390, SEC.1; Acts 1973, P.L.279, SEC.3.)

IC 27-6-8-19
Advertising
    Sec. 19. No person, including an insurer, insurance producer, oraffiliate of an insurer, shall make, publish, disseminate, circulate, orplace before the public, or cause, directly or indirectly, to be made,published, disseminated, circulated or placed before the public, inany newspaper, magazine or other publication, or in the form of anotice, circular, pamphlet, letter or poster, or over any radio stationor television station, or in any other way, any advertisement,

announcement or statement which uses the existence of the insuranceguaranty association of this state for the purpose of sales,solicitation, or inducement to purchase any form of insurancecovered by the Indiana insurance guaranty association law. However,this section does not apply to Indiana insurance guaranty associationor to any other entity which does not sell or solicit insurance.
(Formerly: Acts 1973, P.L.279, SEC.4.) As amended by Acts 1977,P.L.281, SEC.10; P.L.178-2003, SEC.43.