IC 27-1-20
Chapter 20. Additional Provisions Pertaining to All Insurance
Companies
IC 27-1-20-1 Insurance of deposited securities
Sec. 1. The department, in the name of the State of Indiana, and
for the benefit of the owners of all securities subject to negotiation
by delivery, and deposited with the department or under its
supervision, shall purchase and maintain insurance, in an aggregate
amount not to exceed one million dollars, against loss from any cause
that the department may deem appropriate. (Formerly: Acts 1935, c.162, s.248; Acts 1971, P.L.385, SEC.5.)
IC 27-1-20-2
Repealed
(Repealed by Acts 1971, P.L.1, SEC.8.)
IC 27-1-20-3 Eligibility of investments for deposit; existing investments
Sec. 3. Eligible investments made or deposited prior to March 8,
1935, shall continue to be eligible for deposit, subject, however, to
section 4 of this chapter. (Formerly: Acts 1935, c.162, s.250.) As amended by P.L.252-1985,
SEC.87.
IC 27-1-20-4 Revaluation of investments omitting interest or dividends
Sec. 4. If any investment when made or purchased conforms to the
requirements of this law, or of any law of this state at the date of
such deposit, it shall continue to be eligible for deposit for the full
amount thereof so long as: (a) in the case of an interest-bearing
investment, the interest is not in default for more than two (2) years;
and (b) in the case of a dividend-paying investment, the dividends are
not unpaid for more than two (2) years: Provided, however, That
when there shall be a default in the payment of interest, or a failure
to pay dividends, for a period of more than two (2) years, the
commissioner may, if he deems it advisable, require the company to
furnish reasonable proof of the then fair value of the investment and
the same shall thereafter continue to be a proper investment and
available for deposit for the fair value thus determined, not
exceeding the amount due on any given promise to pay or the amount
paid for a given share of stock. (Formerly: Acts 1935, c.162, s.251.)
IC 27-1-20-5 Deposit of securities acquired from foreign life insurer under
reinsurance agreement
Sec. 5. Nothing in this law shall prevent the deposit of securities
and other evidences of ownership of property, acquired from a life
insurance company domiciled in a foreign state or alien country by
a domestic life insurance company under a reinsurance agreement
approved by the department, provided such securities and property
comply with the investment requirements of the state of
incorporation of such reinsured company. (Formerly: Acts 1935, c.162, s.252.)
IC 27-1-20-6 Transfer of defaulted deposited securities to other depository
under financial reorganization agreement; filing receipt; effect on
deposit credit
Sec. 6. If a life insurance company, in order to protect itself
against loss on account of defaulted securities issued by a public or
private corporation and deposited with the department in accordance
with this article, enters into an agreement incidental to the financial
reorganization of such corporation, and requiring a deposit of such
securities with a committee or a depository designated in such
agreement, such securities may be withdrawn from the deposit with
the department and transferred to the committee or depository
designated in such agreement without reducing the deposit credit of
such company, provided that a proper receipt executed by the
committee or depository be filed with the department within fifteen
(15) days following the date such securities are withdrawn, or within
such further period of time as the commissioner may in his discretion
allow. (Formerly: Acts 1935, c.162, s.253.) As amended by P.L.252-1985,
SEC.88.
IC 27-1-20-7 Withdrawal from deposit to pledge for loan; effect; redeposit
Sec. 7. Nothing in this article shall prevent a life insurance
company, with the commissioner's consent, from withdrawing
investments from deposit for the purpose of pledging them for a loan
or loans, in which case the difference between the deposit value of
such investments and the amount of the obligation or obligations
thereby secured shall, unless and until such pledge is foreclosed,
continue as a deposit credit, and when such investments are offered
for deposit they shall be reinstated in all respects to their former
status as a deposit. (Formerly: Acts 1935, c.162, s.254.) As amended by P.L.252-1985,
SEC.89.
IC 27-1-20-8 Deposits as a condition of doing business; definitions; securities;
bank deposits with restricted withdrawal privileges
Sec. 8. (a) As used in this section:
"Securities" means instruments as defined in IC 26-1-8.1-102.
"Clearing corporation" means a corporation as defined in
IC 26-1-8.1-102 except that with respect to securities issued by
institutions organized or existing under the laws of any foreign
country or securities used to meet the deposit requirements pursuant
to the laws of a foreign country as a condition of doing business
therein. "Clearing corporation" may include a corporation organized
or existing under the laws of any foreign country and which is legally
qualified under such laws to effect transactions in securities by
computerized book entry.
"Direct participant" means a bank, trust company, or safety
deposit company approved by the commissioner which maintains an
account in its name in a clearing corporation and through which an
insurance company participates in a clearing corporation.
"Federal Reserve book-entry system" means the computerized
systems sponsored by the United States Department of the Treasury
and certain agencies and instrumentalities of the United States for
holding and transferring securities of the United States government
and such agencies and instrumentalities, respectively, in Federal
Reserve Banks through banks which are members of the Federal
Reserve System, or which otherwise have access to such
computerized systems.
"Member bank" means a national bank, state bank or trust
company which is a member of the Federal Reserve System and
through which an insurance company participates in the Federal
Reserve book-entry system.
(b) Notwithstanding any other provision of law, a domestic
insurance company may deposit or arrange for the safekeeping of
securities held in or purchased for its general account and its separate
accounts in a clearing corporation or the Federal Reserve book-entry
system. When securities are deposited with a clearing corporation,
certificates representing securities of the same class of the same
issuer may be merged and held in bulk in the name of the nominee of
such clearing corporation with any other securities deposited with
such clearing corporation by any person, regardless of the ownership
of such securities, and certificates representing securities of small
denominations may be merged into one (1) or more certificates of
larger denominations. The records of any member bank through
which an insurance company holds securities in the Federal Reserve
book-entry system, and the records of any custodian through which
an insurance company holds securities in a clearing corporation, shall
at all times show that such securities are held for such insurance
company and for which accounts thereof. Ownership of, and other
interests in, such securities may be transferred by bookkeeping entry
on the books of such clearing corporation or in the Federal Reserve
book-entry system without, in either case, physical delivery of
certificates representing such securities.
(c) Any Indiana law requiring an insurance company operating
under the laws of Indiana to deposit assets with the department shall
be deemed complied with if such deposit is made pursuant to a
written agreement between the insurance company and any bank,
trust company or a safety deposit company and approved by the
commissioner which limits withdrawals to those sanctioned and
approved by the department. Deposits so made shall be credited by
the department as deposits in its possession on the basis of the
insurance company's affidavit describing such deposits as to amount
and nature.
(d) Notwithstanding any other provisions of law, securities
eligible for deposit under the insurance law of this state relating to
deposit of securities by an insurance company as a condition of
commencing or continuing to do an insurance business in this state
may be deposited with a clearing corporation or held in the Federal
Reserve book-entry system. Securities deposited with a clearing
corporation or held in the Federal Reserve book-entry system and
used to meet the deposit requirements under the insurance laws of
this state shall be under the control of the commissioner and shall not
be withdrawn by the insurance company without the approval of the
commissioner. Any insurance company holding such securities in
such manner shall provide to the commissioner evidence issued by
its custodian or a member bank through which such insurance
company has deposited securities with a clearing corporation or held
in the Federal Reserve book-entry system, respectively, in order to
establish that the securities are actually recorded in an account in the
name of the custodian or other direct participant or member bank and
evidence that the records of the custodian, other participant or
member bank reflect that such securities are held subject to the order
of the commissioner.
(e) The commissioner of insurance is authorized to promulgate
rules and regulations governing the deposit by insurance companies
of securities with clearing corporations and in the Federal Reserve
book-entry system. (Formerly: Acts 1935, c.162, s.255; Acts 1945, c.175, s.5; Acts 1957,
c.22, s.1.) As amended by Acts 1981, P.L.238, SEC.2; Acts 1982,
P.L.164, SEC.1; P.L.255-1995, SEC.4; P.L.247-1995, SEC.24.
IC 27-1-20-9 Substitution of securities on deposit; withdrawal of securities in
excess of requirements
Sec. 9. Companies shall have the right at any time to change their
securities on deposit, by substituting for those withdrawn a like
amount in other securities of the character provided for in this article,
and whenever the net cash value of policies outstanding and in force
against any company is less than the amount of securities then on
deposit with the department, said company shall have the right to
withdraw such excess, but at least twenty-five thousand dollars
($25,000) shall remain on deposit. (Formerly: Acts 1935, c.162, s.256.) As amended by P.L.252-1985,
SEC.90.
IC 27-1-20-10 Disposition of interest earned by securities on deposit
Sec. 10. The department shall permit companies having on deposit
with it stocks or bonds as security, to collect the interest accruing on
such deposits, delivering to their authorized agents, respectively, the
coupons or other evidences of interest as the same become due; but
upon default by any company to deposit additional security as called
for by the department or pending any proceedings for rehabilitation,
liquidation or conservation of such company, the department shall
collect the interest as it becomes due and add the same to the
securities in its possession, or under its control, belonging to such
company. (Formerly: Acts 1935, c.162, s.257.)
IC 27-1-20-11 Discontinuance of business; procedure for return of deposited
securities
Sec. 11. When any company determines to discontinue its
business and ceases to do business in this state and desires to
withdraw its deposit made in this state pursuant to this article, the
department shall upon the application of the company and at the
expense of the company give notice of such intention in a newspaper
of general circulation in the state once a week for a period of four (4)
weeks. After such publication it shall deliver to such company or its
assigns the securities so deposited when it is satisfied upon
examination and investigation made by it or under its authority and
upon the oaths of the president or a vice president and the secretary
or an assistant secretary of the company that all debts and liabilities
of every kind due and to become due which the deposit was made to
secure are paid and extinguished. (Formerly: Acts 1935, c.162, s.258.) As amended by P.L.252-1985,
SEC.91.
IC 27-1-20-12 Retaliatory provisions
Sec. 12. (a) When, by the laws of any other state, any taxes, fines,
penalties, licenses, fees, deposits of money or securities, or other
obligations or prohibitions are imposed upon insurance companies
of this or other states, or their agents, greater than are required by
laws of this state, then the same obligations and prohibitions, of
whatever kind, shall, in like manner for like purposes, be imposed
upon all insurance companies of such states and their agents. All
insurance companies of other nations, under this section, shall be
held as of the state where they have elected to make their deposit and
establish their principal agency in the United States.
(b) Whenever it shall be made to appear to the insurance
commissioner that permission to transact business within any state
of the United States, other than the state of Indiana, or within any
foreign country, is refused to an insurance company organized under
the laws of this state, after a certificate of the solvency and good
management of such company has been issued to it by the insurance
commissioner and after such company has complied with any
reasonable laws of such other state or foreign country requiring
deposits of money or securities with the government of such other
state or foreign country, then and in every such case, the
commissioner may forthwith cancel the authority of every insurance
company organized under the laws of such other state or foreign
country and licensed to do business in this state, and may refuse a
certificate of authority to every such company thereafter applying to
him for authority to do business in this state, until his certificate shall
have been duly recognized by the government of such other state or
foreign country. (Formerly: Acts 1935, c.162, s.259; Acts 1937, c.288, s.5.)
IC 27-1-20-13 Fees of secretary of state
Sec. 13. The fees payable to the secretary of the state by insurance
companies which are organized or reorganized under the laws of this
state or the laws of any other state, territory or insular possession of
the United States or the District of Columbia shall be the same as the
fees prescribed in chapter 219 of the Acts of the General Assembly
of 1929. (Formerly: Acts 1935, c.162, s.262.)
IC 27-1-20-14 Pension plan for officers and employees
Sec. 14. Any insurance company organized under the laws of this
state, in addition to the rights and powers conferred upon it by the
law under which it was organized and/or under which it operates,
shall have the power to establish a pension plan or system for the
benefit of its officers and employees. Before such a plan or system
is adopted by a company, it shall be submitted to and approved by
the commissioner of insurance. (Formerly: Acts 1935, c.162, s.262a.)
IC 27-1-20-15 Automatic revocation of authority for failure to timely complete
organization
Sec. 15. If any company, whether organized under the provisions
of this article or of any statute enacted prior to March 8, 1935, for the
purpose of making any kind or kinds of insurance, does not complete
its organization and proceed with the transaction of business,
pursuant to the provisions of the statute under which it is organized,
within a period of one (1) year after its articles of incorporation or its
organization shall have been approved and filed in the office of the
secretary of state, the approval so given shall be deemed to be
revoked and such articles of incorporation or such organization shall
be null and void. (Formerly: Acts 1935, c.162, s.264.) As amended by P.L.252-1985,
SEC.92.
IC 27-1-20-16
(Repealed by P.L.1-1989, SEC.75.)
IC 27-1-20-17
Repealed
(Repealed by Acts 1978, P.L.2, SEC.2728.)
IC 27-1-20-18
Repealed
(Repealed by Acts 1976, P.L.122, SEC.1.)
IC 27-1-20-19 Misrepresentation of funds available to pay losses or policy claims
Sec. 19. No company doing business in this state or agent thereof
shall state or represent by advertisement in any newspaper, periodical
or magazine or by any sign, circular, card, policy of insurance or
certificate of renewal thereof or otherwise that any funds or assets
are in possession of such company which are not actually owned by
it and available for the payment of losses and claims and held for the
protection of its policyholders and creditors. Funds deposited by any
company, under depository laws of this or other states, shall be
considered as in the company's possession for the payment of losses
or policy claims. (Formerly: Acts 1935, c.162, s.267.)
IC 27-1-20-20 Financial statement; requirements; violations; penalties
Sec. 20. Except as otherwise provided in this section, every
advertisement or public announcement and every sign, circular or
card issued or displayed by any domestic, foreign or alien company
doing business in this state, purporting to make known its financial
condition, shall state the amount of its paid-up capital, the assets
owned, its liabilities, including therein the premium and loss reserves
required by law, and the amount of net surplus of admitted assets
over all its liabilities actually available for the payment of its losses
and claims and held for the protection of its policyholders and shall
correspond to the next preceding verified statement made to the
department by such company. The foregoing shall not apply to a
statement showing only the capital stock paid up and the surplus
separately and combined, but such items shall not be in excess of the
corresponding items shown on the verified statements made by such
company to the department next preceding the making or issuing of
the same. Every advertisement or public announcement and every
sign, circular or card issued or displayed by an alien company doing
business in this state, purporting to make known its financial
condition, shall segregate and state separately the capital and assets
held by its United States branch, the liabilities, including therein the
premium and loss reserves required by law, and the amount of net
surplus of assets over all its liabilities actually available for the
payment of its losses and claims and held for the protection of its
policyholders in the United States and shall correspond to the next
preceding verified annual statement made by such company to the
commissioner.
Despite any other provision of the laws of this state an insurer
may, subject to requirements set forth by regulation promulgated by
the Commissioner, publish financial statements or information based
on financial statements prepared on a basis which is in accordance
with requirements of a competent authority and which differs from
the basis of the statements which have been filed with the Insurance
Commissioner. Such differing financial statements or information
based on financial statements shall not be made the basis for the
application of provisions of any laws of this state not relating solely
to the publication of financial information unless such provisions
specifically so require.
For every willful violation of this section and section 19 of this
chapter by any such company or by an agent thereof the company
shall forfeit for the first offense to the state of Indiana the sum of five
hundred dollars ($500) and for every subsequent offense the sum of
one thousand dollars ($1,000), which, when recovered, shall be paid
to the state treasurer. (Formerly: Acts 1935, c.162, s.268; Acts 1974, P.L.123, SEC.1.)
IC 27-1-20-21 Annual financial statement; microfilm copies
Sec. 21. Every company doing business in this state shall file with
the department on or before March 1 in each year a financial
statement for the year ending December 31 immediately preceding
in a format in accordance with IC 27-1-3-13. For good and sufficient
cause shown, the commissioner may grant to any individual company
a reasonable extension of time not to exceed ninety (90) days within
which such statement may be filed. Such statement shall be verified
by the oaths of the president or a vice president and the secretary or
an assistant secretary of the company. The statement of an alien
company shall segregate and state separately its condition and
transaction in the United States and such segregated and separated
statement shall be verified by the oath of its resident manager or
principal representative in the United States. The commissioner of
insurance may, with the approval of the commission on public
records, authorize the destruction of such annual statements which
have been on file for two (2) years or more and microfilm copies of
which have been made and filed. (Formerly: Acts 1935, c.162, s.269; Acts 1957, c.124, s.1.) As
amended by P.L.252-1985, SEC.94; P.L.159-1986, SEC.4;
P.L.271-1987, SEC.3; P.L.3-1989, SEC.151; P.L.246-1989, SEC.1;
P.L.130-1994, SEC.26; P.L.116-1994, SEC.36; P.L.1-1998,
SEC.140; P.L.268-1999, SEC.8.
IC 27-1-20-21.1
Repealed
(Repealed by P.L.1-1990, SEC.257.)
IC 27-1-20-21.2 Civil penalty; failure to comply with IC 27-1-20-21
Sec. 21.2. The commissioner may impose a civil penalty of five
hundred dollars ($500) under IC 4-21.5-3 on an insurance company
that fails to comply with section 21 of this chapter. As added by P.L.1-1990, SEC.258.
IC 27-1-20-21.3 Actuarial opinions
Sec. 21.3. (a) Every domestic casualty insurance company,
domestic fire and marine insurance company, and domestic life and
health insurance company shall include an actuarial opinion as an
additional part of the financial statement required under section 21
of this chapter. The commissioner shall adopt rules under IC 4-22-2
that:
(1) prescribe the form and content of the actuarial opinion
required by this section; and
(2) establish minimum qualifications that an actuary must meet
in order to provide the actuarial opinion required under this
section.
(b) The actuarial opinion required by subsection (a) shall be
included with every annual statement beginning with the statement
for calendar year 1994. As added by P.L.1-1990, SEC.259. Amended by P.L.130-1994,
SEC.27; P.L.116-1994, SEC.37; P.L.14-2000, SEC.57.
IC 27-1-20-22 Verification of accounts and reports
Sec. 22. Whenever any provision of this article requires that there
shall be filed any verified account, report, or other paper by any
person, firm, or corporation, such account, report, or other paper
shall be executed by the person or persons filing such account,
report, or other paper or by the president or such other officer as may
be designated by the board of directors of any corporation filing such
account, report, or other paper, and the truth of the matters therein
stated shall be sworn to under oath by such person or by such
president or other officer, before a notary public or other officer duly
qualified to administer oaths. (Formerly: Acts 1935, c.162, s.270.) As amended by P.L.252-1985,
SEC.95.
IC 27-1-20-23 Remedies of receivership exclusive with department; exception in
favor of judgment creditor
Sec. 23. No order, judgment, or decree providing for an
accounting or enjoining, restraining, or interfering with the operation
of the business of any insurance company, association, or society, to
which any provision of this article is applicable, or for the
appointment of a temporary or permanent receiver thereof, shall be
made or granted otherwise than upon the application of the
department, except in an action by a judgment creditor or in
proceedings supplemental to execution. (Formerly: Acts 1935, c.162, s.270a.) As amended by P.L.252-1985,
SEC.96.
IC 27-1-20-24
Repealed
(Repealed by Acts 1978, P.L.2, SEC.2728.)
IC 27-1-20-25 Organization of new companies on Lloyds or assessment plan
prohibited; surplus requirement for reciprocal plan
Sec. 25. (a) A domestic company that organized after March 7,
1935, may not operate:
(1) an insurance business on the assessment plan; or
(2) an insurance business as Lloyds.
(b) A domestic company may not operate an insurance business
on the reciprocal plan as an interinsurer or individual underwriter
unless it has a surplus over all policy liabilities of not less than two
hundred fifty thousand dollars ($250,000). (Formerly: Acts 1935, c.162, s.272.) As amended by Acts 1977,
P.L.282, SEC.4.
IC 27-1-20-26 Exemption from article of a farm mutual insurance company
Sec. 26. Except as provided in IC 27-5.1-2-8, the provisions of
this article shall not apply to a farm mutual insurance company or
any similar company organized and operating under IC 27-5 (before
its repeal) or IC 27-5.1, nor shall any provision of this article be
construed as repealing any provision of the statutes applicable to the
companies and associations referred to in this section. (Formerly: Acts 1935, c.162, s.272a.) As amended by P.L.252-1985,
SEC.97; P.L.129-2003, SEC.4.
IC 27-1-20-27 Exemption of domestic mutual fire insurance companies
Sec. 27. The provisions of IC 27-1-5 through IC 27-1-19 and this
chapter shall not apply to any domestic mutual fire insurance
company or association licensed as of March 8, 1935, originally
organized and operated by farmers to insure farm property. (Formerly: Acts 1935, c.162, s.272b.) As amended by P.L.252-1985,
SEC.98.
IC 27-1-20-28 Exemption of interinsurance associations or reciprocal or
interinsurance exchanges dealing with worker's compensation
insurance
Sec. 28. The provisions of this article shall not apply to any
interinsurance association or reciprocal or interinsurance exchange
organized under and by virtue of Acts 1915, c.106, as amended and
supplemented, and formed and operating on or before January 1,
1991, for the sole purpose of writing worker's compensation
insurance.
(Formerly: Acts 1935, c.162, s.272c.) As amended by P.L.252-1985,
SEC.99; P.L.28-1988, SEC.78; P.L.170-1991, SEC.26.
IC 27-1-20-29 Exemption of abstract and title insurance companies
Sec. 29. Nothing contained in this article shall be construed to
affect or apply to any corporation organized before March 8, 1935,
under any law of this state which is authorized to engage in the
making of abstracts of title to real estate and the issuing of
certificates insuring or guaranteeing the titles to real estate. (Formerly: Acts 1935, c.162, s.272d.) As amended by P.L.252-1985,
SEC.100.
IC 27-1-20-30 Rebate of premium or commission; unfair competition
Sec. 30. (a) No company acting through its officers or members,
attorney-in-fact, or by any other party, no officer of a company acting
on the officer's own behalf and no insurance producer, broker, or
solicitor, personally or by any other party, shall offer, promise, allow,
give, set off or pay, directly or indirectly, any rebate of or part of the
premium payable on a policy, or any insurance producer's
commission thereon, or earnings, profits, dividends or other benefits
founded, arising, accruing, or to accrue thereon or therefrom, or any
special advantage in date of policy or age of issue, or any paid
employment or contract for services of any kind, or any other
valuable consideration or inducement, to or for insurance on any risk
in this state, now or hereafter to be written, or for or upon any
renewal of any such insurance, which is not specified in the policy
contract of insurance, or offer, promise, give, option, sell or purchase
any stocks, bonds, securities, or property, or any dividends or profits
accruing or to accrue thereon, or other thing of value whatsoever as
inducement to insurance or in connection therewith, or any renewal
thereof, which is not specified in the policy. Nothing in this section
shall prevent a company which transacts industrial life insurance on
a weekly payment plan from returning to policyholders who have
made a premium payment for a period of at least one (1) year directly
to the company at its home or district office a percentage of premium
which the company would otherwise have paid for the weekly
collection of such premium, nor shall this section be construed to
prevent the taking of a bona fide obligation, with legal interest, in
payment of any premium.
(b) No insured person or party or applicant for insurance shall
directly or indirectly, receive or accept, or agree to receive or accept,
any rebate of premium or of any part thereof, or all or any part of any
insurance producer's or broker's commission thereon, or any favor or
advantage, or share in any benefit to accrue under any policy of
insurance, or any valuable consideration or inducement, other than
such as are specified in the policy. (Formerly: Acts 1935, c.162, s.273.) As amended by Acts 1978,
P.L.2, SEC.2713; P.L.178-2003, SEC.20. IC 27-1-20-31 Restrictions on interlocking directorates
Sec. 31. Insurance corporations may have interlocking
directorates, provided no person at the same time shall be a director
in two (2) or more insurance corporations where the effect may be to
substantially lessen competition generally or tend to create a
monopoly. Whenever the commissioner of insurance has reason to
believe that there is a violation of this section, he shall have the
authority to proceed to an adjudication of the violation under
IC 4-21.5-3. (Formerly: Acts 1935, c.162, s.273a; Acts 1949, c.90, s.1.) As
amended by P.L.252-1985, SEC.101; P.L.7-1987, SEC.139.
IC 27-1-20-32 Effect of captions
Sec. 32. No caption of any section or set of sections of Acts 1935,
c.162 shall in any way affect the interpretation of this article or any
provision of this article. (Formerly: Acts 1935, c.162, s.275.) As amended by P.L.252-1985,
SEC.102.
IC 27-1-20-33 Annual statement convention blank, additional filings, and
quarterly statements; filings with NAIC
Sec. 33. (a) As used in this section, "insurer" refers to each:
(1) domestic company;
(2) foreign company; and
(3) alien company;
that is authorized to transact business in Indiana.
(b) As used in this section, "NAIC" means the National
Association of Insurance Commissioners.
(c) On or before March 1 of each year, an insurer shall file with
the National Association of Insurance Commissioners and with the
department a copy of the insurer's annual statement convention blank
and additional filings prescribed by the commissioner for the
preceding year. An insurer shall also file quarterly statements with
the NAIC and with the department on or before May 15, August 15,
and November 15 of each year in a form prescribed by the
commissioner. The information filed with the NAIC under this
subsection:
(1) must be:
(A) in the same format; and
(B) of the same scope;
as is required by the commissioner under section 21 of this
chapter;
(2) to the extent required by the NAIC, must include the signed
jurat page and the actuarial certification; and
(3) must be filed electronically in accordance with NAIC
electronic filing specifications.
The commissioner may grant an exemption from the requirement of
subdivision (3) to domestic companies that operate only in Indiana.
If an insurer files any amendment or addendum to an insurer's annual
statement convention blank or quarterly statement with the
commissioner, the insurer shall also file a copy of the amendment or
addendum with the NAIC. Annual and quarterly financial statements
are deemed filed with the NAIC when delivered to the address
designated by the NAIC for the filings regardless of whether the
filing is accompanied by any applicable fee.
(d) The commissioner may, for good cause, grant an insurer an
extension of time for the filing required by subsection (c).
(e) A foreign company that:
(1) is domiciled in a state that has a law substantially similar to
subsection (c); and
(2) complies with that law;
shall be considered to be in compliance with this section.
(f) In the absence of actual malice:
(1) members of the NAIC;
(2) duly authorized committees, subcommittees, and task forces
of members of the NAIC;
(3) delegates of members of the NAIC;
(4) employees of the NAIC; and
(5) other persons responsible for collecting, reviewing,
analyzing, and disseminating information developed from the
filing of annual statement convention blanks under this section;
shall be considered to be acting as agents of the commissioner under
the authority of this section and are not subject to civil liability for
libel, slander, or any other cause of action by virtue of the collection,
review, analysis, or dissemination of the data and information
collected from the filings required by this section.
(g) The commissioner may suspend, revoke, or refuse to renew the
certificate of authority of an insurer that fails to file the insurer's
annual statement convention blank or quarterly statements with the
NAIC or with the department within the time allowed by subsection
(c) or (d). As added by P.L.121-1992, SEC.3. Amended by P.L.251-1995,
SEC.16; P.L.91-1998, SEC.7; P.L.268-1999, SEC.9.
IC 27-1-20-34
Repealed
(Repealed by P.L.193-2006, SEC.33.)
IC 27-1-20
Chapter 20. Additional Provisions Pertaining to All Insurance
Companies
IC 27-1-20-1 Insurance of deposited securities
Sec. 1. The department, in the name of the State of Indiana, and
for the benefit of the owners of all securities subject to negotiation
by delivery, and deposited with the department or under its
supervision, shall purchase and maintain insurance, in an aggregate
amount not to exceed one million dollars, against loss from any cause
that the department may deem appropriate. (Formerly: Acts 1935, c.162, s.248; Acts 1971, P.L.385, SEC.5.)
IC 27-1-20-2
Repealed
(Repealed by Acts 1971, P.L.1, SEC.8.)
IC 27-1-20-3 Eligibility of investments for deposit; existing investments
Sec. 3. Eligible investments made or deposited prior to March 8,
1935, shall continue to be eligible for deposit, subject, however, to
section 4 of this chapter. (Formerly: Acts 1935, c.162, s.250.) As amended by P.L.252-1985,
SEC.87.
IC 27-1-20-4 Revaluation of investments omitting interest or dividends
Sec. 4. If any investment when made or purchased conforms to the
requirements of this law, or of any law of this state at the date of
such deposit, it shall continue to be eligible for deposit for the full
amount thereof so long as: (a) in the case of an interest-bearing
investment, the interest is not in default for more than two (2) years;
and (b) in the case of a dividend-paying investment, the dividends are
not unpaid for more than two (2) years: Provided, however, That
when there shall be a default in the payment of interest, or a failure
to pay dividends, for a period of more than two (2) years, the
commissioner may, if he deems it advisable, require the company to
furnish reasonable proof of the then fair value of the investment and
the same shall thereafter continue to be a proper investment and
available for deposit for the fair value thus determined, not
exceeding the amount due on any given promise to pay or the amount
paid for a given share of stock. (Formerly: Acts 1935, c.162, s.251.)
IC 27-1-20-5 Deposit of securities acquired from foreign life insurer under
reinsurance agreement
Sec. 5. Nothing in this law shall prevent the deposit of securities
and other evidences of ownership of property, acquired from a life
insurance company domiciled in a foreign state or alien country by
a domestic life insurance company under a reinsurance agreement
approved by the department, provided such securities and property
comply with the investment requirements of the state of
incorporation of such reinsured company. (Formerly: Acts 1935, c.162, s.252.)
IC 27-1-20-6 Transfer of defaulted deposited securities to other depository
under financial reorganization agreement; filing receipt; effect on
deposit credit
Sec. 6. If a life insurance company, in order to protect itself
against loss on account of defaulted securities issued by a public or
private corporation and deposited with the department in accordance
with this article, enters into an agreement incidental to the financial
reorganization of such corporation, and requiring a deposit of such
securities with a committee or a depository designated in such
agreement, such securities may be withdrawn from the deposit with
the department and transferred to the committee or depository
designated in such agreement without reducing the deposit credit of
such company, provided that a proper receipt executed by the
committee or depository be filed with the department within fifteen
(15) days following the date such securities are withdrawn, or within
such further period of time as the commissioner may in his discretion
allow. (Formerly: Acts 1935, c.162, s.253.) As amended by P.L.252-1985,
SEC.88.
IC 27-1-20-7 Withdrawal from deposit to pledge for loan; effect; redeposit
Sec. 7. Nothing in this article shall prevent a life insurance
company, with the commissioner's consent, from withdrawing
investments from deposit for the purpose of pledging them for a loan
or loans, in which case the difference between the deposit value of
such investments and the amount of the obligation or obligations
thereby secured shall, unless and until such pledge is foreclosed,
continue as a deposit credit, and when such investments are offered
for deposit they shall be reinstated in all respects to their former
status as a deposit. (Formerly: Acts 1935, c.162, s.254.) As amended by P.L.252-1985,
SEC.89.
IC 27-1-20-8 Deposits as a condition of doing business; definitions; securities;
bank deposits with restricted withdrawal privileges
Sec. 8. (a) As used in this section:
"Securities" means instruments as defined in IC 26-1-8.1-102.
"Clearing corporation" means a corporation as defined in
IC 26-1-8.1-102 except that with respect to securities issued by
institutions organized or existing under the laws of any foreign
country or securities used to meet the deposit requirements pursuant
to the laws of a foreign country as a condition of doing business
therein. "Clearing corporation" may include a corporation organized
or existing under the laws of any foreign country and which is legally
qualified under such laws to effect transactions in securities by
computerized book entry.
"Direct participant" means a bank, trust company, or safety
deposit company approved by the commissioner which maintains an
account in its name in a clearing corporation and through which an
insurance company participates in a clearing corporation.
"Federal Reserve book-entry system" means the computerized
systems sponsored by the United States Department of the Treasury
and certain agencies and instrumentalities of the United States for
holding and transferring securities of the United States government
and such agencies and instrumentalities, respectively, in Federal
Reserve Banks through banks which are members of the Federal
Reserve System, or which otherwise have access to such
computerized systems.
"Member bank" means a national bank, state bank or trust
company which is a member of the Federal Reserve System and
through which an insurance company participates in the Federal
Reserve book-entry system.
(b) Notwithstanding any other provision of law, a domestic
insurance company may deposit or arrange for the safekeeping of
securities held in or purchased for its general account and its separate
accounts in a clearing corporation or the Federal Reserve book-entry
system. When securities are deposited with a clearing corporation,
certificates representing securities of the same class of the same
issuer may be merged and held in bulk in the name of the nominee of
such clearing corporation with any other securities deposited with
such clearing corporation by any person, regardless of the ownership
of such securities, and certificates representing securities of small
denominations may be merged into one (1) or more certificates of
larger denominations. The records of any member bank through
which an insurance company holds securities in the Federal Reserve
book-entry system, and the records of any custodian through which
an insurance company holds securities in a clearing corporation, shall
at all times show that such securities are held for such insurance
company and for which accounts thereof. Ownership of, and other
interests in, such securities may be transferred by bookkeeping entry
on the books of such clearing corporation or in the Federal Reserve
book-entry system without, in either case, physical delivery of
certificates representing such securities.
(c) Any Indiana law requiring an insurance company operating
under the laws of Indiana to deposit assets with the department shall
be deemed complied with if such deposit is made pursuant to a
written agreement between the insurance company and any bank,
trust company or a safety deposit company and approved by the
commissioner which limits withdrawals to those sanctioned and
approved by the department. Deposits so made shall be credited by
the department as deposits in its possession on the basis of the
insurance company's affidavit describing such deposits as to amount
and nature.
(d) Notwithstanding any other provisions of law, securities
eligible for deposit under the insurance law of this state relating to
deposit of securities by an insurance company as a condition of
commencing or continuing to do an insurance business in this state
may be deposited with a clearing corporation or held in the Federal
Reserve book-entry system. Securities deposited with a clearing
corporation or held in the Federal Reserve book-entry system and
used to meet the deposit requirements under the insurance laws of
this state shall be under the control of the commissioner and shall not
be withdrawn by the insurance company without the approval of the
commissioner. Any insurance company holding such securities in
such manner shall provide to the commissioner evidence issued by
its custodian or a member bank through which such insurance
company has deposited securities with a clearing corporation or held
in the Federal Reserve book-entry system, respectively, in order to
establish that the securities are actually recorded in an account in the
name of the custodian or other direct participant or member bank and
evidence that the records of the custodian, other participant or
member bank reflect that such securities are held subject to the order
of the commissioner.
(e) The commissioner of insurance is authorized to promulgate
rules and regulations governing the deposit by insurance companies
of securities with clearing corporations and in the Federal Reserve
book-entry system. (Formerly: Acts 1935, c.162, s.255; Acts 1945, c.175, s.5; Acts 1957,
c.22, s.1.) As amended by Acts 1981, P.L.238, SEC.2; Acts 1982,
P.L.164, SEC.1; P.L.255-1995, SEC.4; P.L.247-1995, SEC.24.
IC 27-1-20-9 Substitution of securities on deposit; withdrawal of securities in
excess of requirements
Sec. 9. Companies shall have the right at any time to change their
securities on deposit, by substituting for those withdrawn a like
amount in other securities of the character provided for in this article,
and whenever the net cash value of policies outstanding and in force
against any company is less than the amount of securities then on
deposit with the department, said company shall have the right to
withdraw such excess, but at least twenty-five thousand dollars
($25,000) shall remain on deposit. (Formerly: Acts 1935, c.162, s.256.) As amended by P.L.252-1985,
SEC.90.
IC 27-1-20-10 Disposition of interest earned by securities on deposit
Sec. 10. The department shall permit companies having on deposit
with it stocks or bonds as security, to collect the interest accruing on
such deposits, delivering to their authorized agents, respectively, the
coupons or other evidences of interest as the same become due; but
upon default by any company to deposit additional security as called
for by the department or pending any proceedings for rehabilitation,
liquidation or conservation of such company, the department shall
collect the interest as it becomes due and add the same to the
securities in its possession, or under its control, belonging to such
company. (Formerly: Acts 1935, c.162, s.257.)
IC 27-1-20-11 Discontinuance of business; procedure for return of deposited
securities
Sec. 11. When any company determines to discontinue its
business and ceases to do business in this state and desires to
withdraw its deposit made in this state pursuant to this article, the
department shall upon the application of the company and at the
expense of the company give notice of such intention in a newspaper
of general circulation in the state once a week for a period of four (4)
weeks. After such publication it shall deliver to such company or its
assigns the securities so deposited when it is satisfied upon
examination and investigation made by it or under its authority and
upon the oaths of the president or a vice president and the secretary
or an assistant secretary of the company that all debts and liabilities
of every kind due and to become due which the deposit was made to
secure are paid and extinguished. (Formerly: Acts 1935, c.162, s.258.) As amended by P.L.252-1985,
SEC.91.
IC 27-1-20-12 Retaliatory provisions
Sec. 12. (a) When, by the laws of any other state, any taxes, fines,
penalties, licenses, fees, deposits of money or securities, or other
obligations or prohibitions are imposed upon insurance companies
of this or other states, or their agents, greater than are required by
laws of this state, then the same obligations and prohibitions, of
whatever kind, shall, in like manner for like purposes, be imposed
upon all insurance companies of such states and their agents. All
insurance companies of other nations, under this section, shall be
held as of the state where they have elected to make their deposit and
establish their principal agency in the United States.
(b) Whenever it shall be made to appear to the insurance
commissioner that permission to transact business within any state
of the United States, other than the state of Indiana, or within any
foreign country, is refused to an insurance company organized under
the laws of this state, after a certificate of the solvency and good
management of such company has been issued to it by the insurance
commissioner and after such company has complied with any
reasonable laws of such other state or foreign country requiring
deposits of money or securities with the government of such other
state or foreign country, then and in every such case, the
commissioner may forthwith cancel the authority of every insurance
company organized under the laws of such other state or foreign
country and licensed to do business in this state, and may refuse a
certificate of authority to every such company thereafter applying to
him for authority to do business in this state, until his certificate shall
have been duly recognized by the government of such other state or
foreign country. (Formerly: Acts 1935, c.162, s.259; Acts 1937, c.288, s.5.)
IC 27-1-20-13 Fees of secretary of state
Sec. 13. The fees payable to the secretary of the state by insurance
companies which are organized or reorganized under the laws of this
state or the laws of any other state, territory or insular possession of
the United States or the District of Columbia shall be the same as the
fees prescribed in chapter 219 of the Acts of the General Assembly
of 1929. (Formerly: Acts 1935, c.162, s.262.)
IC 27-1-20-14 Pension plan for officers and employees
Sec. 14. Any insurance company organized under the laws of this
state, in addition to the rights and powers conferred upon it by the
law under which it was organized and/or under which it operates,
shall have the power to establish a pension plan or system for the
benefit of its officers and employees. Before such a plan or system
is adopted by a company, it shall be submitted to and approved by
the commissioner of insurance. (Formerly: Acts 1935, c.162, s.262a.)
IC 27-1-20-15 Automatic revocation of authority for failure to timely complete
organization
Sec. 15. If any company, whether organized under the provisions
of this article or of any statute enacted prior to March 8, 1935, for the
purpose of making any kind or kinds of insurance, does not complete
its organization and proceed with the transaction of business,
pursuant to the provisions of the statute under which it is organized,
within a period of one (1) year after its articles of incorporation or its
organization shall have been approved and filed in the office of the
secretary of state, the approval so given shall be deemed to be
revoked and such articles of incorporation or such organization shall
be null and void. (Formerly: Acts 1935, c.162, s.264.) As amended by P.L.252-1985,
SEC.92.
IC 27-1-20-16
(Repealed by P.L.1-1989, SEC.75.)
IC 27-1-20-17
Repealed
(Repealed by Acts 1978, P.L.2, SEC.2728.)
IC 27-1-20-18
Repealed
(Repealed by Acts 1976, P.L.122, SEC.1.)
IC 27-1-20-19 Misrepresentation of funds available to pay losses or policy claims
Sec. 19. No company doing business in this state or agent thereof
shall state or represent by advertisement in any newspaper, periodical
or magazine or by any sign, circular, card, policy of insurance or
certificate of renewal thereof or otherwise that any funds or assets
are in possession of such company which are not actually owned by
it and available for the payment of losses and claims and held for the
protection of its policyholders and creditors. Funds deposited by any
company, under depository laws of this or other states, shall be
considered as in the company's possession for the payment of losses
or policy claims. (Formerly: Acts 1935, c.162, s.267.)
IC 27-1-20-20 Financial statement; requirements; violations; penalties
Sec. 20. Except as otherwise provided in this section, every
advertisement or public announcement and every sign, circular or
card issued or displayed by any domestic, foreign or alien company
doing business in this state, purporting to make known its financial
condition, shall state the amount of its paid-up capital, the assets
owned, its liabilities, including therein the premium and loss reserves
required by law, and the amount of net surplus of admitted assets
over all its liabilities actually available for the payment of its losses
and claims and held for the protection of its policyholders and shall
correspond to the next preceding verified statement made to the
department by such company. The foregoing shall not apply to a
statement showing only the capital stock paid up and the surplus
separately and combined, but such items shall not be in excess of the
corresponding items shown on the verified statements made by such
company to the department next preceding the making or issuing of
the same. Every advertisement or public announcement and every
sign, circular or card issued or displayed by an alien company doing
business in this state, purporting to make known its financial
condition, shall segregate and state separately the capital and assets
held by its United States branch, the liabilities, including therein the
premium and loss reserves required by law, and the amount of net
surplus of assets over all its liabilities actually available for the
payment of its losses and claims and held for the protection of its
policyholders in the United States and shall correspond to the next
preceding verified annual statement made by such company to the
commissioner.
Despite any other provision of the laws of this state an insurer
may, subject to requirements set forth by regulation promulgated by
the Commissioner, publish financial statements or information based
on financial statements prepared on a basis which is in accordance
with requirements of a competent authority and which differs from
the basis of the statements which have been filed with the Insurance
Commissioner. Such differing financial statements or information
based on financial statements shall not be made the basis for the
application of provisions of any laws of this state not relating solely
to the publication of financial information unless such provisions
specifically so require.
For every willful violation of this section and section 19 of this
chapter by any such company or by an agent thereof the company
shall forfeit for the first offense to the state of Indiana the sum of five
hundred dollars ($500) and for every subsequent offense the sum of
one thousand dollars ($1,000), which, when recovered, shall be paid
to the state treasurer. (Formerly: Acts 1935, c.162, s.268; Acts 1974, P.L.123, SEC.1.)
IC 27-1-20-21 Annual financial statement; microfilm copies
Sec. 21. Every company doing business in this state shall file with
the department on or before March 1 in each year a financial
statement for the year ending December 31 immediately preceding
in a format in accordance with IC 27-1-3-13. For good and sufficient
cause shown, the commissioner may grant to any individual company
a reasonable extension of time not to exceed ninety (90) days within
which such statement may be filed. Such statement shall be verified
by the oaths of the president or a vice president and the secretary or
an assistant secretary of the company. The statement of an alien
company shall segregate and state separately its condition and
transaction in the United States and such segregated and separated
statement shall be verified by the oath of its resident manager or
principal representative in the United States. The commissioner of
insurance may, with the approval of the commission on public
records, authorize the destruction of such annual statements which
have been on file for two (2) years or more and microfilm copies of
which have been made and filed. (Formerly: Acts 1935, c.162, s.269; Acts 1957, c.124, s.1.) As
amended by P.L.252-1985, SEC.94; P.L.159-1986, SEC.4;
P.L.271-1987, SEC.3; P.L.3-1989, SEC.151; P.L.246-1989, SEC.1;
P.L.130-1994, SEC.26; P.L.116-1994, SEC.36; P.L.1-1998,
SEC.140; P.L.268-1999, SEC.8.
IC 27-1-20-21.1
Repealed
(Repealed by P.L.1-1990, SEC.257.)
IC 27-1-20-21.2 Civil penalty; failure to comply with IC 27-1-20-21
Sec. 21.2. The commissioner may impose a civil penalty of five
hundred dollars ($500) under IC 4-21.5-3 on an insurance company
that fails to comply with section 21 of this chapter. As added by P.L.1-1990, SEC.258.
IC 27-1-20-21.3 Actuarial opinions
Sec. 21.3. (a) Every domestic casualty insurance company,
domestic fire and marine insurance company, and domestic life and
health insurance company shall include an actuarial opinion as an
additional part of the financial statement required under section 21
of this chapter. The commissioner shall adopt rules under IC 4-22-2
that:
(1) prescribe the form and content of the actuarial opinion
required by this section; and
(2) establish minimum qualifications that an actuary must meet
in order to provide the actuarial opinion required under this
section.
(b) The actuarial opinion required by subsection (a) shall be
included with every annual statement beginning with the statement
for calendar year 1994. As added by P.L.1-1990, SEC.259. Amended by P.L.130-1994,
SEC.27; P.L.116-1994, SEC.37; P.L.14-2000, SEC.57.
IC 27-1-20-22 Verification of accounts and reports
Sec. 22. Whenever any provision of this article requires that there
shall be filed any verified account, report, or other paper by any
person, firm, or corporation, such account, report, or other paper
shall be executed by the person or persons filing such account,
report, or other paper or by the president or such other officer as may
be designated by the board of directors of any corporation filing such
account, report, or other paper, and the truth of the matters therein
stated shall be sworn to under oath by such person or by such
president or other officer, before a notary public or other officer duly
qualified to administer oaths. (Formerly: Acts 1935, c.162, s.270.) As amended by P.L.252-1985,
SEC.95.
IC 27-1-20-23 Remedies of receivership exclusive with department; exception in
favor of judgment creditor
Sec. 23. No order, judgment, or decree providing for an
accounting or enjoining, restraining, or interfering with the operation
of the business of any insurance company, association, or society, to
which any provision of this article is applicable, or for the
appointment of a temporary or permanent receiver thereof, shall be
made or granted otherwise than upon the application of the
department, except in an action by a judgment creditor or in
proceedings supplemental to execution. (Formerly: Acts 1935, c.162, s.270a.) As amended by P.L.252-1985,
SEC.96.
IC 27-1-20-24
Repealed
(Repealed by Acts 1978, P.L.2, SEC.2728.)
IC 27-1-20-25 Organization of new companies on Lloyds or assessment plan
prohibited; surplus requirement for reciprocal plan
Sec. 25. (a) A domestic company that organized after March 7,
1935, may not operate:
(1) an insurance business on the assessment plan; or
(2) an insurance business as Lloyds.
(b) A domestic company may not operate an insurance business
on the reciprocal plan as an interinsurer or individual underwriter
unless it has a surplus over all policy liabilities of not less than two
hundred fifty thousand dollars ($250,000). (Formerly: Acts 1935, c.162, s.272.) As amended by Acts 1977,
P.L.282, SEC.4.
IC 27-1-20-26 Exemption from article of a farm mutual insurance company
Sec. 26. Except as provided in IC 27-5.1-2-8, the provisions of
this article shall not apply to a farm mutual insurance company or
any similar company organized and operating under IC 27-5 (before
its repeal) or IC 27-5.1, nor shall any provision of this article be
construed as repealing any provision of the statutes applicable to the
companies and associations referred to in this section. (Formerly: Acts 1935, c.162, s.272a.) As amended by P.L.252-1985,
SEC.97; P.L.129-2003, SEC.4.
IC 27-1-20-27 Exemption of domestic mutual fire insurance companies
Sec. 27. The provisions of IC 27-1-5 through IC 27-1-19 and this
chapter shall not apply to any domestic mutual fire insurance
company or association licensed as of March 8, 1935, originally
organized and operated by farmers to insure farm property. (Formerly: Acts 1935, c.162, s.272b.) As amended by P.L.252-1985,
SEC.98.
IC 27-1-20-28 Exemption of interinsurance associations or reciprocal or
interinsurance exchanges dealing with worker's compensation
insurance
Sec. 28. The provisions of this article shall not apply to any
interinsurance association or reciprocal or interinsurance exchange
organized under and by virtue of Acts 1915, c.106, as amended and
supplemented, and formed and operating on or before January 1,
1991, for the sole purpose of writing worker's compensation
insurance.
(Formerly: Acts 1935, c.162, s.272c.) As amended by P.L.252-1985,
SEC.99; P.L.28-1988, SEC.78; P.L.170-1991, SEC.26.
IC 27-1-20-29 Exemption of abstract and title insurance companies
Sec. 29. Nothing contained in this article shall be construed to
affect or apply to any corporation organized before March 8, 1935,
under any law of this state which is authorized to engage in the
making of abstracts of title to real estate and the issuing of
certificates insuring or guaranteeing the titles to real estate. (Formerly: Acts 1935, c.162, s.272d.) As amended by P.L.252-1985,
SEC.100.
IC 27-1-20-30 Rebate of premium or commission; unfair competition
Sec. 30. (a) No company acting through its officers or members,
attorney-in-fact, or by any other party, no officer of a company acting
on the officer's own behalf and no insurance producer, broker, or
solicitor, personally or by any other party, shall offer, promise, allow,
give, set off or pay, directly or indirectly, any rebate of or part of the
premium payable on a policy, or any insurance producer's
commission thereon, or earnings, profits, dividends or other benefits
founded, arising, accruing, or to accrue thereon or therefrom, or any
special advantage in date of policy or age of issue, or any paid
employment or contract for services of any kind, or any other
valuable consideration or inducement, to or for insurance on any risk
in this state, now or hereafter to be written, or for or upon any
renewal of any such insurance, which is not specified in the policy
contract of insurance, or offer, promise, give, option, sell or purchase
any stocks, bonds, securities, or property, or any dividends or profits
accruing or to accrue thereon, or other thing of value whatsoever as
inducement to insurance or in connection therewith, or any renewal
thereof, which is not specified in the policy. Nothing in this section
shall prevent a company which transacts industrial life insurance on
a weekly payment plan from returning to policyholders who have
made a premium payment for a period of at least one (1) year directly
to the company at its home or district office a percentage of premium
which the company would otherwise have paid for the weekly
collection of such premium, nor shall this section be construed to
prevent the taking of a bona fide obligation, with legal interest, in
payment of any premium.
(b) No insured person or party or applicant for insurance shall
directly or indirectly, receive or accept, or agree to receive or accept,
any rebate of premium or of any part thereof, or all or any part of any
insurance producer's or broker's commission thereon, or any favor or
advantage, or share in any benefit to accrue under any policy of
insurance, or any valuable consideration or inducement, other than
such as are specified in the policy. (Formerly: Acts 1935, c.162, s.273.) As amended by Acts 1978,
P.L.2, SEC.2713; P.L.178-2003, SEC.20. IC 27-1-20-31 Restrictions on interlocking directorates
Sec. 31. Insurance corporations may have interlocking
directorates, provided no person at the same time shall be a director
in two (2) or more insurance corporations where the effect may be to
substantially lessen competition generally or tend to create a
monopoly. Whenever the commissioner of insurance has reason to
believe that there is a violation of this section, he shall have the
authority to proceed to an adjudication of the violation under
IC 4-21.5-3. (Formerly: Acts 1935, c.162, s.273a; Acts 1949, c.90, s.1.) As
amended by P.L.252-1985, SEC.101; P.L.7-1987, SEC.139.
IC 27-1-20-32 Effect of captions
Sec. 32. No caption of any section or set of sections of Acts 1935,
c.162 shall in any way affect the interpretation of this article or any
provision of this article. (Formerly: Acts 1935, c.162, s.275.) As amended by P.L.252-1985,
SEC.102.
IC 27-1-20-33 Annual statement convention blank, additional filings, and
quarterly statements; filings with NAIC
Sec. 33. (a) As used in this section, "insurer" refers to each:
(1) domestic company;
(2) foreign company; and
(3) alien company;
that is authorized to transact business in Indiana.
(b) As used in this section, "NAIC" means the National
Association of Insurance Commissioners.
(c) On or before March 1 of each year, an insurer shall file with
the National Association of Insurance Commissioners and with the
department a copy of the insurer's annual statement convention blank
and additional filings prescribed by the commissioner for the
preceding year. An insurer shall also file quarterly statements with
the NAIC and with the department on or before May 15, August 15,
and November 15 of each year in a form prescribed by the
commissioner. The information filed with the NAIC under this
subsection:
(1) must be:
(A) in the same format; and
(B) of the same scope;
as is required by the commissioner under section 21 of this
chapter;
(2) to the extent required by the NAIC, must include the signed
jurat page and the actuarial certification; and
(3) must be filed electronically in accordance with NAIC
electronic filing specifications.
The commissioner may grant an exemption from the requirement of
subdivision (3) to domestic companies that operate only in Indiana.
If an insurer files any amendment or addendum to an insurer's annual
statement convention blank or quarterly statement with the
commissioner, the insurer shall also file a copy of the amendment or
addendum with the NAIC. Annual and quarterly financial statements
are deemed filed with the NAIC when delivered to the address
designated by the NAIC for the filings regardless of whether the
filing is accompanied by any applicable fee.
(d) The commissioner may, for good cause, grant an insurer an
extension of time for the filing required by subsection (c).
(e) A foreign company that:
(1) is domiciled in a state that has a law substantially similar to
subsection (c); and
(2) complies with that law;
shall be considered to be in compliance with this section.
(f) In the absence of actual malice:
(1) members of the NAIC;
(2) duly authorized committees, subcommittees, and task forces
of members of the NAIC;
(3) delegates of members of the NAIC;
(4) employees of the NAIC; and
(5) other persons responsible for collecting, reviewing,
analyzing, and disseminating information developed from the
filing of annual statement convention blanks under this section;
shall be considered to be acting as agents of the commissioner under
the authority of this section and are not subject to civil liability for
libel, slander, or any other cause of action by virtue of the collection,
review, analysis, or dissemination of the data and information
collected from the filings required by this section.
(g) The commissioner may suspend, revoke, or refuse to renew the
certificate of authority of an insurer that fails to file the insurer's
annual statement convention blank or quarterly statements with the
NAIC or with the department within the time allowed by subsection
(c) or (d). As added by P.L.121-1992, SEC.3. Amended by P.L.251-1995,
SEC.16; P.L.91-1998, SEC.7; P.L.268-1999, SEC.9.
IC 27-1-20-34
Repealed
(Repealed by P.L.193-2006, SEC.33.)
IC 27-1-20
Chapter 20. Additional Provisions Pertaining to All Insurance
Companies
IC 27-1-20-1 Insurance of deposited securities
Sec. 1. The department, in the name of the State of Indiana, and
for the benefit of the owners of all securities subject to negotiation
by delivery, and deposited with the department or under its
supervision, shall purchase and maintain insurance, in an aggregate
amount not to exceed one million dollars, against loss from any cause
that the department may deem appropriate. (Formerly: Acts 1935, c.162, s.248; Acts 1971, P.L.385, SEC.5.)
IC 27-1-20-2
Repealed
(Repealed by Acts 1971, P.L.1, SEC.8.)
IC 27-1-20-3 Eligibility of investments for deposit; existing investments
Sec. 3. Eligible investments made or deposited prior to March 8,
1935, shall continue to be eligible for deposit, subject, however, to
section 4 of this chapter. (Formerly: Acts 1935, c.162, s.250.) As amended by P.L.252-1985,
SEC.87.
IC 27-1-20-4 Revaluation of investments omitting interest or dividends
Sec. 4. If any investment when made or purchased conforms to the
requirements of this law, or of any law of this state at the date of
such deposit, it shall continue to be eligible for deposit for the full
amount thereof so long as: (a) in the case of an interest-bearing
investment, the interest is not in default for more than two (2) years;
and (b) in the case of a dividend-paying investment, the dividends are
not unpaid for more than two (2) years: Provided, however, That
when there shall be a default in the payment of interest, or a failure
to pay dividends, for a period of more than two (2) years, the
commissioner may, if he deems it advisable, require the company to
furnish reasonable proof of the then fair value of the investment and
the same shall thereafter continue to be a proper investment and
available for deposit for the fair value thus determined, not
exceeding the amount due on any given promise to pay or the amount
paid for a given share of stock. (Formerly: Acts 1935, c.162, s.251.)
IC 27-1-20-5 Deposit of securities acquired from foreign life insurer under
reinsurance agreement
Sec. 5. Nothing in this law shall prevent the deposit of securities
and other evidences of ownership of property, acquired from a life
insurance company domiciled in a foreign state or alien country by
a domestic life insurance company under a reinsurance agreement
approved by the department, provided such securities and property
comply with the investment requirements of the state of
incorporation of such reinsured company. (Formerly: Acts 1935, c.162, s.252.)
IC 27-1-20-6 Transfer of defaulted deposited securities to other depository
under financial reorganization agreement; filing receipt; effect on
deposit credit
Sec. 6. If a life insurance company, in order to protect itself
against loss on account of defaulted securities issued by a public or
private corporation and deposited with the department in accordance
with this article, enters into an agreement incidental to the financial
reorganization of such corporation, and requiring a deposit of such
securities with a committee or a depository designated in such
agreement, such securities may be withdrawn from the deposit with
the department and transferred to the committee or depository
designated in such agreement without reducing the deposit credit of
such company, provided that a proper receipt executed by the
committee or depository be filed with the department within fifteen
(15) days following the date such securities are withdrawn, or within
such further period of time as the commissioner may in his discretion
allow. (Formerly: Acts 1935, c.162, s.253.) As amended by P.L.252-1985,
SEC.88.
IC 27-1-20-7 Withdrawal from deposit to pledge for loan; effect; redeposit
Sec. 7. Nothing in this article shall prevent a life insurance
company, with the commissioner's consent, from withdrawing
investments from deposit for the purpose of pledging them for a loan
or loans, in which case the difference between the deposit value of
such investments and the amount of the obligation or obligations
thereby secured shall, unless and until such pledge is foreclosed,
continue as a deposit credit, and when such investments are offered
for deposit they shall be reinstated in all respects to their former
status as a deposit. (Formerly: Acts 1935, c.162, s.254.) As amended by P.L.252-1985,
SEC.89.
IC 27-1-20-8 Deposits as a condition of doing business; definitions; securities;
bank deposits with restricted withdrawal privileges
Sec. 8. (a) As used in this section:
"Securities" means instruments as defined in IC 26-1-8.1-102.
"Clearing corporation" means a corporation as defined in
IC 26-1-8.1-102 except that with respect to securities issued by
institutions organized or existing under the laws of any foreign
country or securities used to meet the deposit requirements pursuant
to the laws of a foreign country as a condition of doing business
therein. "Clearing corporation" may include a corporation organized
or existing under the laws of any foreign country and which is legally
qualified under such laws to effect transactions in securities by
computerized book entry.
"Direct participant" means a bank, trust company, or safety
deposit company approved by the commissioner which maintains an
account in its name in a clearing corporation and through which an
insurance company participates in a clearing corporation.
"Federal Reserve book-entry system" means the computerized
systems sponsored by the United States Department of the Treasury
and certain agencies and instrumentalities of the United States for
holding and transferring securities of the United States government
and such agencies and instrumentalities, respectively, in Federal
Reserve Banks through banks which are members of the Federal
Reserve System, or which otherwise have access to such
computerized systems.
"Member bank" means a national bank, state bank or trust
company which is a member of the Federal Reserve System and
through which an insurance company participates in the Federal
Reserve book-entry system.
(b) Notwithstanding any other provision of law, a domestic
insurance company may deposit or arrange for the safekeeping of
securities held in or purchased for its general account and its separate
accounts in a clearing corporation or the Federal Reserve book-entry
system. When securities are deposited with a clearing corporation,
certificates representing securities of the same class of the same
issuer may be merged and held in bulk in the name of the nominee of
such clearing corporation with any other securities deposited with
such clearing corporation by any person, regardless of the ownership
of such securities, and certificates representing securities of small
denominations may be merged into one (1) or more certificates of
larger denominations. The records of any member bank through
which an insurance company holds securities in the Federal Reserve
book-entry system, and the records of any custodian through which
an insurance company holds securities in a clearing corporation, shall
at all times show that such securities are held for such insurance
company and for which accounts thereof. Ownership of, and other
interests in, such securities may be transferred by bookkeeping entry
on the books of such clearing corporation or in the Federal Reserve
book-entry system without, in either case, physical delivery of
certificates representing such securities.
(c) Any Indiana law requiring an insurance company operating
under the laws of Indiana to deposit assets with the department shall
be deemed complied with if such deposit is made pursuant to a
written agreement between the insurance company and any bank,
trust company or a safety deposit company and approved by the
commissioner which limits withdrawals to those sanctioned and
approved by the department. Deposits so made shall be credited by
the department as deposits in its possession on the basis of the
insurance company's affidavit describing such deposits as to amount
and nature.
(d) Notwithstanding any other provisions of law, securities
eligible for deposit under the insurance law of this state relating to
deposit of securities by an insurance company as a condition of
commencing or continuing to do an insurance business in this state
may be deposited with a clearing corporation or held in the Federal
Reserve book-entry system. Securities deposited with a clearing
corporation or held in the Federal Reserve book-entry system and
used to meet the deposit requirements under the insurance laws of
this state shall be under the control of the commissioner and shall not
be withdrawn by the insurance company without the approval of the
commissioner. Any insurance company holding such securities in
such manner shall provide to the commissioner evidence issued by
its custodian or a member bank through which such insurance
company has deposited securities with a clearing corporation or held
in the Federal Reserve book-entry system, respectively, in order to
establish that the securities are actually recorded in an account in the
name of the custodian or other direct participant or member bank and
evidence that the records of the custodian, other participant or
member bank reflect that such securities are held subject to the order
of the commissioner.
(e) The commissioner of insurance is authorized to promulgate
rules and regulations governing the deposit by insurance companies
of securities with clearing corporations and in the Federal Reserve
book-entry system. (Formerly: Acts 1935, c.162, s.255; Acts 1945, c.175, s.5; Acts 1957,
c.22, s.1.) As amended by Acts 1981, P.L.238, SEC.2; Acts 1982,
P.L.164, SEC.1; P.L.255-1995, SEC.4; P.L.247-1995, SEC.24.
IC 27-1-20-9 Substitution of securities on deposit; withdrawal of securities in
excess of requirements
Sec. 9. Companies shall have the right at any time to change their
securities on deposit, by substituting for those withdrawn a like
amount in other securities of the character provided for in this article,
and whenever the net cash value of policies outstanding and in force
against any company is less than the amount of securities then on
deposit with the department, said company shall have the right to
withdraw such excess, but at least twenty-five thousand dollars
($25,000) shall remain on deposit. (Formerly: Acts 1935, c.162, s.256.) As amended by P.L.252-1985,
SEC.90.
IC 27-1-20-10 Disposition of interest earned by securities on deposit
Sec. 10. The department shall permit companies having on deposit
with it stocks or bonds as security, to collect the interest accruing on
such deposits, delivering to their authorized agents, respectively, the
coupons or other evidences of interest as the same become due; but
upon default by any company to deposit additional security as called
for by the department or pending any proceedings for rehabilitation,
liquidation or conservation of such company, the department shall
collect the interest as it becomes due and add the same to the
securities in its possession, or under its control, belonging to such
company. (Formerly: Acts 1935, c.162, s.257.)
IC 27-1-20-11 Discontinuance of business; procedure for return of deposited
securities
Sec. 11. When any company determines to discontinue its
business and ceases to do business in this state and desires to
withdraw its deposit made in this state pursuant to this article, the
department shall upon the application of the company and at the
expense of the company give notice of such intention in a newspaper
of general circulation in the state once a week for a period of four (4)
weeks. After such publication it shall deliver to such company or its
assigns the securities so deposited when it is satisfied upon
examination and investigation made by it or under its authority and
upon the oaths of the president or a vice president and the secretary
or an assistant secretary of the company that all debts and liabilities
of every kind due and to become due which the deposit was made to
secure are paid and extinguished. (Formerly: Acts 1935, c.162, s.258.) As amended by P.L.252-1985,
SEC.91.
IC 27-1-20-12 Retaliatory provisions
Sec. 12. (a) When, by the laws of any other state, any taxes, fines,
penalties, licenses, fees, deposits of money or securities, or other
obligations or prohibitions are imposed upon insurance companies
of this or other states, or their agents, greater than are required by
laws of this state, then the same obligations and prohibitions, of
whatever kind, shall, in like manner for like purposes, be imposed
upon all insurance companies of such states and their agents. All
insurance companies of other nations, under this section, shall be
held as of the state where they have elected to make their deposit and
establish their principal agency in the United States.
(b) Whenever it shall be made to appear to the insurance
commissioner that permission to transact business within any state
of the United States, other than the state of Indiana, or within any
foreign country, is refused to an insurance company organized under
the laws of this state, after a certificate of the solvency and good
management of such company has been issued to it by the insurance
commissioner and after such company has complied with any
reasonable laws of such other state or foreign country requiring
deposits of money or securities with the government of such other
state or foreign country, then and in every such case, the
commissioner may forthwith cancel the authority of every insurance
company organized under the laws of such other state or foreign
country and licensed to do business in this state, and may refuse a
certificate of authority to every such company thereafter applying to
him for authority to do business in this state, until his certificate shall
have been duly recognized by the government of such other state or
foreign country. (Formerly: Acts 1935, c.162, s.259; Acts 1937, c.288, s.5.)
IC 27-1-20-13 Fees of secretary of state
Sec. 13. The fees payable to the secretary of the state by insurance
companies which are organized or reorganized under the laws of this
state or the laws of any other state, territory or insular possession of
the United States or the District of Columbia shall be the same as the
fees prescribed in chapter 219 of the Acts of the General Assembly
of 1929. (Formerly: Acts 1935, c.162, s.262.)
IC 27-1-20-14 Pension plan for officers and employees
Sec. 14. Any insurance company organized under the laws of this
state, in addition to the rights and powers conferred upon it by the
law under which it was organized and/or under which it operates,
shall have the power to establish a pension plan or system for the
benefit of its officers and employees. Before such a plan or system
is adopted by a company, it shall be submitted to and approved by
the commissioner of insurance. (Formerly: Acts 1935, c.162, s.262a.)
IC 27-1-20-15 Automatic revocation of authority for failure to timely complete
organization
Sec. 15. If any company, whether organized under the provisions
of this article or of any statute enacted prior to March 8, 1935, for the
purpose of making any kind or kinds of insurance, does not complete
its organization and proceed with the transaction of business,
pursuant to the provisions of the statute under which it is organized,
within a period of one (1) year after its articles of incorporation or its
organization shall have been approved and filed in the office of the
secretary of state, the approval so given shall be deemed to be
revoked and such articles of incorporation or such organization shall
be null and void. (Formerly: Acts 1935, c.162, s.264.) As amended by P.L.252-1985,
SEC.92.
IC 27-1-20-16
(Repealed by P.L.1-1989, SEC.75.)
IC 27-1-20-17
Repealed
(Repealed by Acts 1978, P.L.2, SEC.2728.)
IC 27-1-20-18
Repealed
(Repealed by Acts 1976, P.L.122, SEC.1.)
IC 27-1-20-19 Misrepresentation of funds available to pay losses or policy claims
Sec. 19. No company doing business in this state or agent thereof
shall state or represent by advertisement in any newspaper, periodical
or magazine or by any sign, circular, card, policy of insurance or
certificate of renewal thereof or otherwise that any funds or assets
are in possession of such company which are not actually owned by
it and available for the payment of losses and claims and held for the
protection of its policyholders and creditors. Funds deposited by any
company, under depository laws of this or other states, shall be
considered as in the company's possession for the payment of losses
or policy claims. (Formerly: Acts 1935, c.162, s.267.)
IC 27-1-20-20 Financial statement; requirements; violations; penalties
Sec. 20. Except as otherwise provided in this section, every
advertisement or public announcement and every sign, circular or
card issued or displayed by any domestic, foreign or alien company
doing business in this state, purporting to make known its financial
condition, shall state the amount of its paid-up capital, the assets
owned, its liabilities, including therein the premium and loss reserves
required by law, and the amount of net surplus of admitted assets
over all its liabilities actually available for the payment of its losses
and claims and held for the protection of its policyholders and shall
correspond to the next preceding verified statement made to the
department by such company. The foregoing shall not apply to a
statement showing only the capital stock paid up and the surplus
separately and combined, but such items shall not be in excess of the
corresponding items shown on the verified statements made by such
company to the department next preceding the making or issuing of
the same. Every advertisement or public announcement and every
sign, circular or card issued or displayed by an alien company doing
business in this state, purporting to make known its financial
condition, shall segregate and state separately the capital and assets
held by its United States branch, the liabilities, including therein the
premium and loss reserves required by law, and the amount of net
surplus of assets over all its liabilities actually available for the
payment of its losses and claims and held for the protection of its
policyholders in the United States and shall correspond to the next
preceding verified annual statement made by such company to the
commissioner.
Despite any other provision of the laws of this state an insurer
may, subject to requirements set forth by regulation promulgated by
the Commissioner, publish financial statements or information based
on financial statements prepared on a basis which is in accordance
with requirements of a competent authority and which differs from
the basis of the statements which have been filed with the Insurance
Commissioner. Such differing financial statements or information
based on financial statements shall not be made the basis for the
application of provisions of any laws of this state not relating solely
to the publication of financial information unless such provisions
specifically so require.
For every willful violation of this section and section 19 of this
chapter by any such company or by an agent thereof the company
shall forfeit for the first offense to the state of Indiana the sum of five
hundred dollars ($500) and for every subsequent offense the sum of
one thousand dollars ($1,000), which, when recovered, shall be paid
to the state treasurer. (Formerly: Acts 1935, c.162, s.268; Acts 1974, P.L.123, SEC.1.)
IC 27-1-20-21 Annual financial statement; microfilm copies
Sec. 21. Every company doing business in this state shall file with
the department on or before March 1 in each year a financial
statement for the year ending December 31 immediately preceding
in a format in accordance with IC 27-1-3-13. For good and sufficient
cause shown, the commissioner may grant to any individual company
a reasonable extension of time not to exceed ninety (90) days within
which such statement may be filed. Such statement shall be verified
by the oaths of the president or a vice president and the secretary or
an assistant secretary of the company. The statement of an alien
company shall segregate and state separately its condition and
transaction in the United States and such segregated and separated
statement shall be verified by the oath of its resident manager or
principal representative in the United States. The commissioner of
insurance may, with the approval of the commission on public
records, authorize the destruction of such annual statements which
have been on file for two (2) years or more and microfilm copies of
which have been made and filed. (Formerly: Acts 1935, c.162, s.269; Acts 1957, c.124, s.1.) As
amended by P.L.252-1985, SEC.94; P.L.159-1986, SEC.4;
P.L.271-1987, SEC.3; P.L.3-1989, SEC.151; P.L.246-1989, SEC.1;
P.L.130-1994, SEC.26; P.L.116-1994, SEC.36; P.L.1-1998,
SEC.140; P.L.268-1999, SEC.8.
IC 27-1-20-21.1
Repealed
(Repealed by P.L.1-1990, SEC.257.)
IC 27-1-20-21.2 Civil penalty; failure to comply with IC 27-1-20-21
Sec. 21.2. The commissioner may impose a civil penalty of five
hundred dollars ($500) under IC 4-21.5-3 on an insurance company
that fails to comply with section 21 of this chapter. As added by P.L.1-1990, SEC.258.
IC 27-1-20-21.3 Actuarial opinions
Sec. 21.3. (a) Every domestic casualty insurance company,
domestic fire and marine insurance company, and domestic life and
health insurance company shall include an actuarial opinion as an
additional part of the financial statement required under section 21
of this chapter. The commissioner shall adopt rules under IC 4-22-2
that:
(1) prescribe the form and content of the actuarial opinion
required by this section; and
(2) establish minimum qualifications that an actuary must meet
in order to provide the actuarial opinion required under this
section.
(b) The actuarial opinion required by subsection (a) shall be
included with every annual statement beginning with the statement
for calendar year 1994. As added by P.L.1-1990, SEC.259. Amended by P.L.130-1994,
SEC.27; P.L.116-1994, SEC.37; P.L.14-2000, SEC.57.
IC 27-1-20-22 Verification of accounts and reports
Sec. 22. Whenever any provision of this article requires that there
shall be filed any verified account, report, or other paper by any
person, firm, or corporation, such account, report, or other paper
shall be executed by the person or persons filing such account,
report, or other paper or by the president or such other officer as may
be designated by the board of directors of any corporation filing such
account, report, or other paper, and the truth of the matters therein
stated shall be sworn to under oath by such person or by such
president or other officer, before a notary public or other officer duly
qualified to administer oaths. (Formerly: Acts 1935, c.162, s.270.) As amended by P.L.252-1985,
SEC.95.
IC 27-1-20-23 Remedies of receivership exclusive with department; exception in
favor of judgment creditor
Sec. 23. No order, judgment, or decree providing for an
accounting or enjoining, restraining, or interfering with the operation
of the business of any insurance company, association, or society, to
which any provision of this article is applicable, or for the
appointment of a temporary or permanent receiver thereof, shall be
made or granted otherwise than upon the application of the
department, except in an action by a judgment creditor or in
proceedings supplemental to execution. (Formerly: Acts 1935, c.162, s.270a.) As amended by P.L.252-1985,
SEC.96.
IC 27-1-20-24
Repealed
(Repealed by Acts 1978, P.L.2, SEC.2728.)
IC 27-1-20-25 Organization of new companies on Lloyds or assessment plan
prohibited; surplus requirement for reciprocal plan
Sec. 25. (a) A domestic company that organized after March 7,
1935, may not operate:
(1) an insurance business on the assessment plan; or
(2) an insurance business as Lloyds.
(b) A domestic company may not operate an insurance business
on the reciprocal plan as an interinsurer or individual underwriter
unless it has a surplus over all policy liabilities of not less than two
hundred fifty thousand dollars ($250,000). (Formerly: Acts 1935, c.162, s.272.) As amended by Acts 1977,
P.L.282, SEC.4.
IC 27-1-20-26 Exemption from article of a farm mutual insurance company
Sec. 26. Except as provided in IC 27-5.1-2-8, the provisions of
this article shall not apply to a farm mutual insurance company or
any similar company organized and operating under IC 27-5 (before
its repeal) or IC 27-5.1, nor shall any provision of this article be
construed as repealing any provision of the statutes applicable to the
companies and associations referred to in this section. (Formerly: Acts 1935, c.162, s.272a.) As amended by P.L.252-1985,
SEC.97; P.L.129-2003, SEC.4.
IC 27-1-20-27 Exemption of domestic mutual fire insurance companies
Sec. 27. The provisions of IC 27-1-5 through IC 27-1-19 and this
chapter shall not apply to any domestic mutual fire insurance
company or association licensed as of March 8, 1935, originally
organized and operated by farmers to insure farm property. (Formerly: Acts 1935, c.162, s.272b.) As amended by P.L.252-1985,
SEC.98.
IC 27-1-20-28 Exemption of interinsurance associations or reciprocal or
interinsurance exchanges dealing with worker's compensation
insurance
Sec. 28. The provisions of this article shall not apply to any
interinsurance association or reciprocal or interinsurance exchange
organized under and by virtue of Acts 1915, c.106, as amended and
supplemented, and formed and operating on or before January 1,
1991, for the sole purpose of writing worker's compensation
insurance.
(Formerly: Acts 1935, c.162, s.272c.) As amended by P.L.252-1985,
SEC.99; P.L.28-1988, SEC.78; P.L.170-1991, SEC.26.
IC 27-1-20-29 Exemption of abstract and title insurance companies
Sec. 29. Nothing contained in this article shall be construed to
affect or apply to any corporation organized before March 8, 1935,
under any law of this state which is authorized to engage in the
making of abstracts of title to real estate and the issuing of
certificates insuring or guaranteeing the titles to real estate. (Formerly: Acts 1935, c.162, s.272d.) As amended by P.L.252-1985,
SEC.100.
IC 27-1-20-30 Rebate of premium or commission; unfair competition
Sec. 30. (a) No company acting through its officers or members,
attorney-in-fact, or by any other party, no officer of a company acting
on the officer's own behalf and no insurance producer, broker, or
solicitor, personally or by any other party, shall offer, promise, allow,
give, set off or pay, directly or indirectly, any rebate of or part of the
premium payable on a policy, or any insurance producer's
commission thereon, or earnings, profits, dividends or other benefits
founded, arising, accruing, or to accrue thereon or therefrom, or any
special advantage in date of policy or age of issue, or any paid
employment or contract for services of any kind, or any other
valuable consideration or inducement, to or for insurance on any risk
in this state, now or hereafter to be written, or for or upon any
renewal of any such insurance, which is not specified in the policy
contract of insurance, or offer, promise, give, option, sell or purchase
any stocks, bonds, securities, or property, or any dividends or profits
accruing or to accrue thereon, or other thing of value whatsoever as
inducement to insurance or in connection therewith, or any renewal
thereof, which is not specified in the policy. Nothing in this section
shall prevent a company which transacts industrial life insurance on
a weekly payment plan from returning to policyholders who have
made a premium payment for a period of at least one (1) year directly
to the company at its home or district office a percentage of premium
which the company would otherwise have paid for the weekly
collection of such premium, nor shall this section be construed to
prevent the taking of a bona fide obligation, with legal interest, in
payment of any premium.
(b) No insured person or party or applicant for insurance shall
directly or indirectly, receive or accept, or agree to receive or accept,
any rebate of premium or of any part thereof, or all or any part of any
insurance producer's or broker's commission thereon, or any favor or
advantage, or share in any benefit to accrue under any policy of
insurance, or any valuable consideration or inducement, other than
such as are specified in the policy. (Formerly: Acts 1935, c.162, s.273.) As amended by Acts 1978,
P.L.2, SEC.2713; P.L.178-2003, SEC.20. IC 27-1-20-31 Restrictions on interlocking directorates
Sec. 31. Insurance corporations may have interlocking
directorates, provided no person at the same time shall be a director
in two (2) or more insurance corporations where the effect may be to
substantially lessen competition generally or tend to create a
monopoly. Whenever the commissioner of insurance has reason to
believe that there is a violation of this section, he shall have the
authority to proceed to an adjudication of the violation under
IC 4-21.5-3. (Formerly: Acts 1935, c.162, s.273a; Acts 1949, c.90, s.1.) As
amended by P.L.252-1985, SEC.101; P.L.7-1987, SEC.139.
IC 27-1-20-32 Effect of captions
Sec. 32. No caption of any section or set of sections of Acts 1935,
c.162 shall in any way affect the interpretation of this article or any
provision of this article. (Formerly: Acts 1935, c.162, s.275.) As amended by P.L.252-1985,
SEC.102.
IC 27-1-20-33 Annual statement convention blank, additional filings, and
quarterly statements; filings with NAIC
Sec. 33. (a) As used in this section, "insurer" refers to each:
(1) domestic company;
(2) foreign company; and
(3) alien company;
that is authorized to transact business in Indiana.
(b) As used in this section, "NAIC" means the National
Association of Insurance Commissioners.
(c) On or before March 1 of each year, an insurer shall file with
the National Association of Insurance Commissioners and with the
department a copy of the insurer's annual statement convention blank
and additional filings prescribed by the commissioner for the
preceding year. An insurer shall also file quarterly statements with
the NAIC and with the department on or before May 15, August 15,
and November 15 of each year in a form prescribed by the
commissioner. The information filed with the NAIC under this
subsection:
(1) must be:
(A) in the same format; and
(B) of the same scope;
as is required by the commissioner under section 21 of this
chapter;
(2) to the extent required by the NAIC, must include the signed
jurat page and the actuarial certification; and
(3) must be filed electronically in accordance with NAIC
electronic filing specifications.
The commissioner may grant an exemption from the requirement of
subdivision (3) to domestic companies that operate only in Indiana.
If an insurer files any amendment or addendum to an insurer's annual
statement convention blank or quarterly statement with the
commissioner, the insurer shall also file a copy of the amendment or
addendum with the NAIC. Annual and quarterly financial statements
are deemed filed with the NAIC when delivered to the address
designated by the NAIC for the filings regardless of whether the
filing is accompanied by any applicable fee.
(d) The commissioner may, for good cause, grant an insurer an
extension of time for the filing required by subsection (c).
(e) A foreign company that:
(1) is domiciled in a state that has a law substantially similar to
subsection (c); and
(2) complies with that law;
shall be considered to be in compliance with this section.
(f) In the absence of actual malice:
(1) members of the NAIC;
(2) duly authorized committees, subcommittees, and task forces
of members of the NAIC;
(3) delegates of members of the NAIC;
(4) employees of the NAIC; and
(5) other persons responsible for collecting, reviewing,
analyzing, and disseminating information developed from the
filing of annual statement convention blanks under this section;
shall be considered to be acting as agents of the commissioner under
the authority of this section and are not subject to civil liability for
libel, slander, or any other cause of action by virtue of the collection,
review, analysis, or dissemination of the data and information
collected from the filings required by this section.
(g) The commissioner may suspend, revoke, or refuse to renew the
certificate of authority of an insurer that fails to file the insurer's
annual statement convention blank or quarterly statements with the
NAIC or with the department within the time allowed by subsection
(c) or (d). As added by P.L.121-1992, SEC.3. Amended by P.L.251-1995,
SEC.16; P.L.91-1998, SEC.7; P.L.268-1999, SEC.9.
IC 27-1-20-34
Repealed
(Repealed by P.L.193-2006, SEC.33.)
