CHAPTER 2. WORKER'S COMPENSATION
IC 27-7-2
Chapter 2. Worker's Compensation
IC 27-7-2-1
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-1.1
Purposes of chapter
Sec. 1.1. The purposes of this chapter are as follows:
(1) To prohibit price fixing agreements and otheranticompetitive behavior by companies.
(2) To protect policyholders and the public against the adverseeffects of excessive, inadequate, or unfairly discriminatoryrates.
(3) To promote price competition among companies so as toprovide rates that are responsive to competitive marketconditions.
(4) To provide regulatory procedures for the maintenance ofappropriate data reporting systems.
(5) To improve availability, fairness, and reliability ofinsurance.
(6) To authorize essential cooperative action among companiesin the ratemaking process and to regulate such activity toprevent practices that tend to substantially lessen competitionor create a monopoly.
(7) To encourage the most efficient and economic marketingpractices.
As added by P.L.249-1989, SEC.1.
IC 27-7-2-1.2
Insurers and underwriters subject to chapter
Sec. 1.2. This chapter applies to all persons, firms, partnerships,corporations, associations, and systems and to associations operatingas Lloyds, interinsurers, or individual underwriters authorized on orafter July 1, 1935, to transact the business of making worker'scompensation insurance in Indiana. All domestic, foreign, and aliencompanies authorized to issue worker's compensation insurancepolicies in Indiana are subject to this chapter.
As added by P.L.249-1989, SEC.2.
IC 27-7-2-2
Definitions
Sec. 2. As used in this chapter and unless a different meaningappears from the context:
(a) "Department" means the department of insurance of this state.
(b) "Worker's compensation board" means the worker'scompensation board of Indiana.
(c) "Company" means an insurance company and includes allpersons, partnerships, corporations, or associations engaged in
making worker's compensation insurance under the laws of this state.
(d) "Domestic company" means a company organized under thelaws of this state.
(e) "Foreign company" means a company organized under thelaws of any state of the United States, other than this state or underthe laws of any territory or insular possession of the United States orthe District of Columbia.
(f) "Alien company" means a company organized under the lawsof any country other than the United States or a territory or insularpossession thereof or of the District of Columbia.
(g) "Person" includes individuals, corporations, firms, companies,associations, and partnerships. The personal pronoun includes allgenders. The singular includes the plural, and the plural includes thesingular.
(h) "Commissioner" means the insurance commissioner of thisstate.
(i) "Bureau" means the worker's compensation rating bureau ofIndiana.
(j) "Interested person" means any person who has filed with thedepartment a request to be notified under sections 4(b) and 20.2(c)of this chapter of each filing of rates by the bureau or a company.
(k) "Assigned risk plan" means the plan by which members of theworker's compensation rating bureau provide for the insurance ofrejected risks.
(l) "Classification system" or "classification" means the plan,system, or arrangement for recognizing differences in exposure tohazards among industries, occupations, or operations of insurancepolicyholders.
(m) "Experience rating" means a rating procedure utilizing pastinsurance experience of the individual policyholder to forecast futurelosses by measuring the policyholder's loss experience against theloss experience of policyholders in the same classification to producea prospective premium credit, debit, or unity modification.
(n) "Rate" means the cost of insurance per exposure base unit,prior to any application of individual risk variations based on loss orexpense considerations, and does not include minimum premiums.
(o) "Schedule rating plan" means an independent rating plan thatmeasures hazard differences that have an immediate bearing on theprobability or severity of loss and applies debits and credits tomodify the premium for a risk.
(p) "Statistical plan" means the plan, system, or arrangement usedin collecting data.
(q) "Supplementary rate information" means any manual or planof rates, classification system, rating schedule, minimum premium,rating rule, rating plan, and any other similar information needed todetermine the applicable premium for an insured.
(r) "Supporting information" means the experience and judgmentof the filer and the experience or data of other companies ororganizations relied on by the filer, the interpretation of anystatistical data relied on by the filer, descriptions of methods used in
making the rates, and any other similar information required to befiled by the commissioner.
(Formerly: Acts 1935, c.323, s.2; Acts 1959, c.231, s.2.) As amendedby P.L.252-1985, SEC.228; P.L.28-1988, SEC.87; P.L.249-1989,SEC.3.
IC 27-7-2-3
Worker's compensation rating bureau; membership
Sec. 3. After July 1, 1935, every insurance company authorized toeffect worker's compensation insurance in this state shall be amember of the worker's compensation rating bureau of Indiana. Thebureau shall be composed of all insurance companies lawfullyengaged on July 1, 1935, wholly or in part in making worker'scompensation insurance in Indiana or who shall after July 1, 1935,be issued a certificate of authority to make worker's compensationinsurance in this state.
(Formerly: Acts 1935, c.323, s.3.) As amended by P.L.252-1985,SEC.229; P.L.28-1988, SEC.88.
IC 27-7-2-3.1
Duties of bureau
Sec. 3.1. The bureau, in addition to other activities not prohibited,is authorized to do the following:
(1) Develop a statistical plan including class definitions.
(2) Collect statistical data from members, subscribers or anyother source.
(3) Prepare and distribute rate data, adjusted for lossdevelopment and loss trending, in accordance with its statisticalplan. Such data and adjustments shall be in sufficient detail soas to permit companies to modify such rates or minimumpremiums based on their own rating methods or interpretationsof underlying data.
(4) Prepare and distribute manuals of rating rules and ratingschedules.
(5) Distribute information that is filed with the commissionerand open to public inspection.
(6) Conduct research and collect statistics in order to discover,identify, and classify information relating to cause or preventionof losses.
(7) Prepare and file policy forms and endorsements and consultwith members, subscribers, and others relative to their use andapplication.
(8) Collect, compile, and distribute past and current prices ofindividual companies if such information is made available tothe general public.
(9) Conduct research and collect information to determine theimpact of benefit level changes on rates.
(10) Prepare and distribute rules and rating values for theexperience rating plan. Calculate and disseminate individualrisk premium modification. (11) Assist an individual company to develop minimumpremiums, rates, supplementary rate information, or supportinginformation when so authorized by the individual company.
As added by P.L.249-1989, SEC.4.
IC 27-7-2-4
Rate filings; notice
Sec. 4. (a) The bureau shall file not less than once each calendaryear recommended minimum premiums and rates for worker'scompensation insurance subject to the approval of the commissioner.
(b) There shall accompany each filing adequate proof that noticeof the filing has been mailed, by first class United States mail, toeach interested person at the person's address as shown on therecords of the department.
(Formerly: Acts 1935, c.323, s.4; Acts 1959, c.231, s.3.) As amendedby P.L.28-1988, SEC.89; P.L.249-1989, SEC.5.
IC 27-7-2-5
Management of bureau
Sec. 5. The management of said bureau shall be in the hands ofduly elected officers or committees provided for in the bylaws of saidbureau; each member of the bureau or member group with affiliateor subsidiary companies shall be entitled to only one (1) vote on anysubject coming before the bureau for determination.
(Formerly: Acts 1935, c.323, s.5.) As amended by P.L.116-1994,SEC.55.
IC 27-7-2-6
By-laws of bureau
Sec. 6. The bureau shall make by-laws for its government and forthe government of its members. Such by-laws and amendmentsthereto shall be filed with and approved by the insurancecommissioner before they shall be effective.
(Formerly: Acts 1935, c.323, s.6.)
IC 27-7-2-7
Representation of stock and nonstock companies; resolution of tievotes
Sec. 7. Stock companies and nonstock companies shall berepresented in the bureau management and on all committees. In caseof a tie vote in any committee or governing body of said bureau, theinsurance commissioner shall decide the matter.
(Formerly: Acts 1935, c.323, s.7.)
IC 27-7-2-8
Membership in bureau
Sec. 8. The bureau shall admit to membership every companylawfully engaged in whole or in part in writing worker'scompensation insurance in Indiana.
(Formerly: Acts 1935, c.323, s.8.) As amended by P.L.28-1988,
SEC.90.
IC 27-7-2-9
Charges and expenses of bureau; apportionment; review
Sec. 9. The charges and expenses incident to the establishmentand operation of the bureau shall be borne equitably and withoutdiscrimination among the members of the bureau. If any member isaggrieved by an apportionment of the cost or costs made by thebureau or by failure of the bureau to make such equitableapportionment, it may in writing petition the commissioner for areview of such apportionment or failure to act. The commissionershall upon not less than five (5) days' notice to each member hold ahearing upon such petition at which time all members shall beentitled to be heard. And said commissioner shall determine thematter or matters and mail a copy of his decision to each member ofthe bureau. The decision of the commissioner shall be final.
(Formerly: Acts 1935, c.323, s.9.)
IC 27-7-2-10
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-11
Approval of classifications, premiums, or rates; consultations withworker's compensation board; duty of board to furnishinformation
Sec. 11. (a) In approving classifications, premiums, or rates, thedepartment may in all cases consult with the worker's compensationboard or member thereof. The department may also consult with theworker's compensation board or members thereof on any other matterarising under this chapter.
(b) The worker's compensation board shall furnish the departmentall available information at its disposal and permit the department tohave access to all records of the worker's compensation board whichthe department may wish to consult in the performance of its dutiesunder this chapter.
(Formerly: Acts 1935, c.323, s.11.) As amended by P.L.252-1985,SEC.231; P.L.28-1988, SEC.92; P.L.249-1989, SEC.6.
IC 27-7-2-12
Representative of department; appointment; powers and duties
Sec. 12. The department may authorize any person to attendmeetings of the rating bureau, hold hearings, make investigations,and make examinations with reference to any subject over which ithas jurisdiction under this chapter. The person so appointed shallhave all the powers of the department in relation to said hearings,investigations, or examinations, and shall report in writing to thedepartment the results of such hearings, examinations, orinvestigations, and any testimony taken by him.
(Formerly: Acts 1935, c.323, s.12.) As amended by P.L.252-1985,
SEC.232.
IC 27-7-2-13
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-14
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-15
Approval of system of schedule rating
Sec. 15. The department shall after consultation with members ofthe bureau and after investigation approve a system of schedulerating for use in this state. Only the system filed by the bureau andapproved by the department may be used in Indiana.
(Formerly: Acts 1935, c.323, s.15.) As amended by P.L.249-1989,SEC.7.
IC 27-7-2-16
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-17
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-18
Exclusion of physical impairment of employees in rate making
Sec. 18. The physical impairment of employees shall not be takeninto account in establishing rates or system of schedule or meritrating.
(Formerly: Acts 1935, c.323, s.18.)
IC 27-7-2-19
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-20
Adherence to approved rules, forms, plans, and systems; annualreports
Sec. 20. (a) Every company shall adhere to manual rules, policyforms, a statistical plan, a classification system, and experiencerating plan filed by the bureau and approved by the commissioner.
(b) The commissioner shall designate the bureau to assist ingathering, compiling, and reporting relevant statistical information.Every company shall record and report its worker's compensationexperience to the bureau according to the statistical plan approved bythe commissioner. The report shall include any deviation from thefiled recommended minimum premiums and rates, in total and by
classification. The bureau shall annually submit data concerningthese deviations to the department. Upon receipt, the departmentshall evaluate the data and prepare a report concerning the effect ofcompetitive rating in Indiana. The department shall make the reportavailable not later than October 31 of each year.
(c) Every company shall adhere to the approved manual rules,policy forms, statistical plan, classification system, and experiencerating plan in the recording and reporting of data to the bureau.
(d) Copies of all approved classifications, rules, and forms shallbe provided to the worker's compensation board.
(Formerly: Acts 1935, c.323, s.20.) As amended by P.L.28-1988,SEC.95; P.L.249-1989, SEC.8; P.L.91-1998, SEC.8.
IC 27-7-2-20.1
Minimum premiums and rates
Sec. 20.1. Minimum premiums and rates may not be excessive,inadequate, or unfairly discriminatory.
As added by P.L.249-1989, SEC.9.
IC 27-7-2-20.2
Minimum premiums, rates, and supplementary rate information;filing; approval; proof of notice; public inspection
Sec. 20.2. (a) Every company and the bureau shall file with thecommissioner all minimum premiums, rates, and supplementary rateinformation that are to be used in Indiana. Such minimum premiums,rates, and supplementary rate information must be submitted to thecommissioner at least thirty (30) days before the effective date. Thecommissioner shall disapprove a filing that does not meet therequirements of section 20.1 of this chapter. A filing shall be deemedapproved unless disapproved by the commissioner within thirty (30)days after the filing is made. A company may adopt by reference,with or without deviation, the minimum premiums, rates, andsupplementary rate information filed by another company or by thebureau.
(b) Minimum premiums, rates, and supplementary informationfiled under this section shall be filed in the form and mannerprescribed by the commissioner.
(c) There shall accompany each filing adequate proof that noticeof the filing has been mailed, by first class United States mail, toeach interested person at the person's address as shown on therecords of the department.
(d) All information filed under this chapter shall, as soon as filed,be open to the public for inspection and copying under IC 5-14-3.
As added by P.L.249-1989, SEC.10.
IC 27-7-2-20.3
Minimum premiums or rates; disapproval
Sec. 20.3. (a) Minimum premiums or rates may be disapproved atthe following times:
(1) At any time subsequent to the effective date. (2) Before the effective date.
(b) Minimum premiums or rates may be disapproved for any ofthe following reasons:
(1) If the company fails to comply with the filing requirementsunder section 20.2 of this chapter.
(2) If the commissioner finds that the minimum premium or rateis excessive, inadequate, or unfairly discriminatory.
(c) The following procedure shall be used for disapproval ofminimum premiums or rates:
(1) The commissioner may disapprove, without hearing,minimum premiums or rates filed under section 20.2 or 28.1 ofthis chapter that have not become effective. However, thebureau or a company whose minimum premiums or rates havebeen disapproved shall be given a hearing upon a writtenrequest made within thirty (30) days after the date of thedisapproval order.
(2) Every company or the bureau shall provide within Indianareasonable means whereby any person aggrieved by theapplication of its filings may be heard on written request toreview the manner in which such rating system has been appliedin connection with the insurance afforded or offered. If thecompany or the bureau fails to grant or reject such requestwithin thirty (30) days, the aggrieved person may proceed in thesame manner as if the request had been rejected. Any aggrievedperson affected by the action of such company or the bureau onsuch request may, within thirty (30) days after written notice ofsuch action, appeal to the commissioner who, after a hearingheld upon not less than ten (10) days written notice to theaggrieved person and to such company or the bureau, mayaffirm, modify, or reverse such action.
(d) If the commissioner disapproves a minimum premium or rate,the commissioner shall issue an order specifying in what respectsminimum premium or the rate fails to meet the requirements of thischapter and stating when within a reasonable period thereafter suchminimum premium or rate shall be discontinued for any policy issuedor renewed after a date specified in the order. The order shall beissued within thirty (30) days after the close of the hearing or withinsuch reasonable time extension as the commissioner may fix. Suchorder may include a provision for premium adjustment for the periodafter the effective date of the order for policies in effect on such date.
(e) Whenever a company has no legally effective minimumpremiums or rates as a result of the commissioner's disapproval ofminimum premiums or rates or other act, the commissioner shallspecify interim minimum premiums or rates for the company that areadequate to protect the interests of all parties and may order that aspecified portion of the premiums be placed in an escrow accountapproved by the commissioner. When new minimum premiums orrates become legally effective, the commissioner shall order theescrowed funds or any overcharge in the interim minimum premiumsor rates to be distributed appropriately, except that refunds of less
than ten dollars ($10) per policyholder shall not be required.
As added by P.L.249-1989, SEC.11.
IC 27-7-2-20.4
Arrangements in restraint of trade; presumption; subsidiarycompanies
Sec. 20.4. (a) A company or the bureau may not make anyarrangement with any other company or other person that has thepurpose or effect of restraining trade unreasonably or of substantiallylessening competition in the business of insurance.
(b) A company may not agree with any other company or thebureau to adhere to or use any rate, rating plan (other than theexperience rating plan), or rating rule except as needed to complywith the requirements of section 20 of this chapter.
(c) The fact that two (2) or more companies use consistently orintermittently the same rules, rating plans, rating schedules, ratingrules, policy forms, rate classifications, underwriting rules, surveys,or inspections or similar materials is not sufficient in itself to supporta finding that an agreement prohibited by subsection (b) exists.
(d) Two (2) or more companies having a common ownership oroperating in Indiana under common management or control may actin concert between or among themselves with respect to any matterspertaining to those authorized in this chapter as if they constituted asingle company.
As added by P.L.249-1989, SEC.12.
IC 27-7-2-21
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-22
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-23
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-24
Appointment of resident agent for service of process
Sec. 24. Every person lawfully engaged wholly or in part inwriting worker's compensation insurance in this state shall, upon July1, 1935, by written notice to the insurance commissioner, appoint anindividual resident of Indiana, a corporate resident of Indiana, or anauthorized Indiana insurer as the person's resident agent in Indianaupon whom service of process may be had for the enforcement ofthis chapter.
(Formerly: Acts 1935, c.323, s.24.) As amended by P.L.252-1985,SEC.235; P.L.28-1988, SEC.98; P.L.268-1999, SEC.17.
IC 27-7-2-25
Annual license of rating bureau
Sec. 25. The bureau shall procure annually from the departmenta license to carry on its business for which license a fee of onehundred dollars ($100) shall be paid to the state of Indiana throughthe insurance department of this state. The license year shallterminate on the thirtieth day of April of each year.
(Formerly: Acts 1935, c.323, s.25.)
IC 27-7-2-26
Effect of chapter on mutual insurance associations and reciprocalassociations
Sec. 26. Nothing in this chapter shall be construed to annul,restrict, or in any manner interfere with the licensing and supervisionof mutual insurance associations and reciprocal associations formedand operating on or before January 1, 1991, solely for the writing ofworker's compensation insurance as provided under IC 22-3-2through IC 22-3-6.
(Formerly: Acts 1935, c.323, s.26.) As amended by P.L.252-1985,SEC.236; P.L.28-1988, SEC.99; P.L.170-1991, SEC.28.
IC 27-7-2-27
Jurisdiction of courts of Marion County; review
Sec. 27. (a) The courts of Marion County, Indiana, shall havejurisdiction in all matters arising under this chapter except suchrulings by the department as are made final by this chapter.
(b) Any order or decision of the commissioner made under thischapter is subject to review in the circuit or superior court of MarionCounty by any party in interest. An appeal must be taken withinthirty (30) days after the date of the order or decision of thecommissioner. The court shall determine whether the filing of thepetition for review shall operate as a stay of the order or decision ofthe commissioner. The court may, in disposing of the issue before it,affirm or set aside the order or decision of the commissioner. If theorder or decision of the commissioner is affirmed, the court shallmake its own order and judgment commanding obedience to theorder or decision of the commissioner. An appeal may be taken to thesupreme court as in civil actions from any order or judgment of thecircuit or superior court made under this section.
(Formerly: Acts 1935, c.323, s.27.) As amended by P.L.252-1985,SEC.237; P.L.249-1989, SEC.13.
IC 27-7-2-28
Duty to insure and accept certain rejected risks
Sec. 28. From and after July 1, 1935, all insurance companiesauthorized to effect worker's compensation insurance in this state,and being members of the worker's compensation rating bureau ofIndiana, shall insure and accept any worker's compensation risktendered to and rejected in writing by any three (3) members of thebureau in the manner provided in this chapter.(Formerly: Acts 1935, c.323, s.28.) As amended by P.L.252-1985,SEC.238; P.L.28-1988, SEC.100.
IC 27-7-2-28.1
Assigned risk plan; filing; approval
Sec. 28.1. (a) All companies authorized to write worker'scompensation insurance shall participate in the assigned risk planproviding for the equitable apportionment among them of insurancethat may be afforded to applicants who are in good faith entitled tobut who are unable to procure such insurance through ordinarymethods. The bureau shall file, at least thirty (30) days before theireffective date, the plan of operation, rates, rating plans, rules, policyforms, and any future modifications thereof, with the commissionerfor approval. Such rates shall reflect experience in the assigned riskplan to the extent it is actuarially appropriate. The rates must reflectthe varied categories of rejected risks covered by the assigned riskplan and must include at least two (2) rating plans, one (1) of whichmay not exceed the recommended minimum premiums and rates filedby the bureau under section 4 of this chapter.
(b) The commissioner shall disapprove any filing that does notmeet the requirements of section 20.1 of this chapter. A filing shallbe deemed to meet such requirements unless disapproved by thecommissioner within thirty (30) days after the filing is made. Indisapproving a filing made under this section, the commissioner shallhave the same authority and follow the same procedure as indisapproving a filing under section 20.3 of this chapter.
As added by P.L.249-1989, SEC.14.
IC 27-7-2-28.2
Examination of records; costs
Sec. 28.2. (a) The commissioner may examine any company, thebureau, or the assigned risk plan as the commissioner considersnecessary to ascertain compliance with this chapter.
(b) Every company, the bureau, and the assigned risk plan shallmaintain reasonable records of the type and kind reasonably adaptedto its method of operation containing its experiences or theexperience of its staff members including the data, statistics, orinformation collected or used by it in its activities. These recordsshall be available at all reasonable times to enable the commissionerto determine whether the activities of the bureau, company, and theassigned risk plan comply with this chapter. Such records shall bemaintained in an office within Indiana or shall be made available tothe commissioner for examination or inspection at any time uponreasonable notice.
(c) The reasonable cost of an examination made under this sectionshall be paid by the examined party upon presentation of a detailedaccount of such costs.
(d) Instead of an examination the commissioner may accept thereport of an examination by the insurance supervisory official ofanother state, made under the laws of that state.As added by P.L.249-1989, SEC.15.
IC 27-7-2-29
Rejected risks; designation of insurer; reinsurance
Sec. 29. (a) When any such rejected risk is called to the attentionof the worker's compensation board and it appearing to the board thatsaid risk is in good faith entitled to coverage, said bureau upon theorder of the board shall fix the initial premium for the coverage.
(b) Upon payment, of the premium fixed under subsection (a), thebureau shall designate a member of said bureau whose duty it shallbe to issue a policy containing the usual and customary provisionsfound in such policies therefor. However, for this undertaking allmembers of said bureau shall be reinsurers as among themselves inthe amount which the compensation insurance written in this stateduring the preceding calendar year by such member bears to the totalcompensation insurance written in this state during the precedingyear by all members of said bureau.
(Formerly: Acts 1935, c.323, s.29.) As amended by P.L.28-1988,SEC.101.
IC 27-7-2-30
Rules; adoption
Sec. 30. The bureau shall, by July 31, 1935, make and adopt suchrules as may be necessary to carry out the provisions of this chapter,subject to the approval of the insurance commissioner.
(Formerly: Acts 1935, c.323, s.30.) As amended by P.L.252-1985,SEC.239.
IC 27-7-2-31
Loss of coverage for nonpayment of premiums; report ofconditions precluding insurance; coverage pending decision
Sec. 31. No employer who does not pay the advance premiums orpremium when due, shall be entitled to insurance, nor shall anycoverage be extended until all obligations to pay worker'scompensation insurance premiums contracted during the previoustwelve (12) months have been paid. If, in the opinion of thedesignated carrying company or the bureau, physical or moralconditions exist in any risk which shall preclude the risk fromobtaining insurance, that risk shall be reported to the worker'scompensation board and to the department. The bureau shall, in thosecases, furnish the board and the department with itsrecommendations for improving safety conditions, which, ifcomplied with, would entitle the risk to insurance. Pending adecision by the board or the department, insurance shall be effectiveas otherwise provided in this chapter. However, the board, or thedepartment, or both shall make that decision within sixty (60) daysafter such recommendations are furnished by the bureau.
(Formerly: Acts 1935, c.323, s.31.) As amended by P.L.252-1985,SEC.240; P.L.28-1988, SEC.102.
IC 27-7-2-32
Considerations in designating insurer to assume rejected risk;review of reasons
Sec. 32. In designating the bureau member to insure a rejectedrisk, the bureau shall have due regard for the service facilities andcompensation premium volume in Indiana of the member sodesignated as the carrying company. Any grievance on the part ofsuch bureau member with the respect of such designation shall bebrought to the attention of the bureau for review and such action asthe circumstances may justify.
(Formerly: Acts 1935, c.323, s.32.)
IC 27-7-2-33
Designated insurer carrying rejected risk; additional inspection;renewal rates
Sec. 33. At any time while a policy, written pursuant todesignation by the bureau, is in force, the carrying company, upon itsown initiative, may make a further careful inspection of the risk forthe purpose of measuring its hazards, making recommendation forthe promotion of the safety of employees and determining the rate orrates which should apply to insurance issued in renewal of suchpolicy. Rates for the renewal of any policy issued pursuant to thischapter shall take into account the available experience of the risk forthe previous five (5) years, and such rates shall be made incontemplation of the facts disclosed by the most recent inspection ofthe risk by the rating bureau as provided in this chapter, subject tothe approval of the department.
(Formerly: Acts 1935, c.323, s.33.) As amended by P.L.252-1985,SEC.241.
IC 27-7-2-34
Information concerning rejected risks; automatic insurance
Sec. 34. The management of the bureau shall furnish to allmembers of the bureau complete information concerning eachrejected risk and any member of such bureau may write any rejectedrisk as regular business in which event the risk so written shall nolonger be treated as provided for in section 29 of this chapter. If, atexpiration, the risk is still uninsured on voluntary basis, it shallautomatically be insured as provided in section 29 of this chapter.
(Formerly: Acts 1935, c.323, s.34.) As amended by P.L.252-1985,SEC.242; P.L.202-2001, SEC.12.
IC 27-7-2-35
Record of rejected risks referred by bureau to members; effect ofwriting rejected risk as regular business
Sec. 35. The bureau shall keep a record of all risks referred tomembers as carrying company, coming within the provisions ofsection 29 of this chapter, and this record shall be open to any bureaumember or its authorized representative. Any member may at anytime write as regular business any risk which is carried by any other
member as a carrying company, under the provisions of section 29and such carrying company shall cancel such policy on a pro ratapremium basis or thereafter carry such risk in its entirety as regularbusiness.
(Formerly: Acts 1935, c.323, s.35.) As amended by P.L.252-1985,SEC.243.
IC 27-7-2-36
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-37
Cancellation of rejected risk coverage; grounds; effect
Sec. 37. (a) If, after the issuance of a policy, it develops that anemployer is not or ceases to be in good faith entitled to compensationinsurance, the carrying company which issued the policy shall havethe right, upon authorization of the bureau and the worker'scompensation board, to cancel the insurance in accordance with theconditions of the policy.
(b) If a policy is cancelled under the circumstances described insubsection (a), the risk shall not be assigned again by the bureau toany of its members as a carrying company until it is fully satisfiedthat the employer is entitled to insure as a proper rejected risk underthis chapter.
(c) In the event of a cancellation under this section, the factsjustifying such action shall be referred to the worker's compensationboard and the department.
(Formerly: Acts 1935, c.323, s.37.) As amended by P.L.252-1985,SEC.245; P.L.28-1988, SEC.103.
IC 27-7-2-37.5
Refund of dividends, savings, or unabsorbed premium deposits
Sec. 37.5. (a) Nothing in this chapter prohibits or regulates thepayment of dividends, savings, or unabsorbed premium depositsallowed or returned by companies to their policyholders, members,or subscribers, but in the payment of such dividends there shall be nounfair discrimination between policyholders.
(b) A plan for the payment of dividends, savings, or unabsorbedpremium deposits allowed or returned by companies to theirpolicyholders, members, or subscribers is not considered a ratingplan or system.
(c) It is an unfair trade practice to make the payment of a dividendor any portion thereof conditioned upon renewal of the policy orcontract.
As added by P.L.249-1989, SEC.16.
IC 27-7-2-38
Violations; penalties; suspension or revocation of license
Sec. 38. (a) A person who fails to comply with this chapter or failsto comply with any lawful order or ruling made by the department in
the administration of this chapter commits a Class C infraction. If aperson is fined for violating this section and fails to pay the finewithin thirty (30) days after final judgment, the insurancecommissioner shall suspend the license of the person to transact anyform of insurance business in Indiana until the fine and costs incidentto the final judgment are paid in full.
(b) The commissioner may, if the commissioner finds that anyperson or organization has violated this chapter, impose a penalty ofnot more than one thousand dollars ($1,000) for each such violationbut if the commissioner finds the violation is willful thecommissioner may impose a penalty of not more than ten thousanddollars ($10,000) for each such violation. These penalties are inaddition to any other penalty provided by law.
(c) For purposes of this section, any company using a rate forwhich the company has failed to file the rate, supplementary rateinformation, or supporting information, as required by this chapter,shall have committed a separate violation for each day such failurecontinues.
(d) The commissioner may suspend or revoke the license of thebureau or any company that fails to comply with an order of thecommissioner within the time limit specified by such order, or anyextension of time that the commissioner may grant.
(e) The commissioner may determine when a suspension oflicense becomes effective and it shall remain in effect for the periodfixed by the commissioner, unless the commissioner modifies orrescinds such suspension, or until the order upon which suchsuspension is based is modified, rescinded, or reversed.
(f) No penalty shall be imposed and no license shall be suspendedor revoked except on a written order of the commissioner, stating thecommissioner's findings, made after a hearing.
(Formerly: Acts 1935, c.323, s.38.) As amended by Acts 1978, P.L.2,SEC.2723; P.L.249-1989, SEC.17.
IC 27-7-2-39
Appointment and compensation of personnel; appropriation
Sec. 39. The governor shall appoint such deputies, examiners,actuaries, assistants, and other employees in the department ofinsurance as may be found necessary to carry out the provisions ofthis chapter and fix the compensation thereof, subject to the approvalof the state budget agency. There is hereby appropriated out of fundsnot otherwise appropriated in the general fund such sums as may benecessary to carry out the provisions of this chapter.
(Formerly: Acts 1935, c.323, s.38a.) As amended by P.L.252-1985,SEC.246.