IC 27-11-8-1 Standards for valuation of certificates; maintenance of excess
reserves on certificates
Sec. 1. (a) Standards of valuation for certificates issued before
January 1, 1987, shall be those provided by the laws applicable on
December 31, 1985.
(b) The minimum standards of valuation for certificates issued
after December 31, 1986, shall be based on the following tables:
(1) For certificates of life insurance.the Commissioner's 1941
Standard Ordinary Mortality Table, the Commissioner's 1941
Standard Industrial Mortality Table, the Commissioner's 1958
Standard Ordinary Mortality Table, the Commissioner's 1980
Standard Ordinary Mortality Table, or any more recent table
made applicable to life insurers.
(2) For annuity and pure endowment certificates, total and
permanent disability benefits, accidental death benefits, and
noncancellable accident and health benefits.such tables as are
authorized for use by life insurers in this state.
(c) All of the above shall be under valuation methods and
standards (including interest assumptions) in accordance with the
laws of this state applicable to life insurers issuing policies
containing like benefits.
(d) The commissioner may accept other standards for valuation if
the commissioner finds that the reserves produced will not be less in
the aggregate than reserves computed in accordance with the
minimum valuation standard prescribed in this section. The
commissioner may vary the standards of mortality applicable to all
benefit contracts on substandard lives or other extra hazardous lives
by any society authorized to do business in this state.
(e) Any society, with the consent of the commissioner of the state
of domicile of the society and under the conditions, if any, that the
commissioner may impose, may establish and maintain reserves on
its certificates in excess of the reserves required thereunder, but the
contractual rights of any benefit member shall not be affected
thereby. As added by P.L.262-1985, SEC.1.
IC 27-11-8-2 Annual financial statement
Sec. 2. (a) Reports shall be filed in accordance with this section.
(b) Every society transacting business in this state shall annually,
before March 1, unless for cause shown the time has been extended
by the commissioner, file with the commissioner a true statement of
its financial condition, transactions, and affairs for the preceding
calendar year and pay a fee of twenty-five dollars ($25) for filing the
statement. The statement shall be in general form and context as
approved by the National Association of Insurance Commissioners
for fraternal benefit societies and as supplemented by additional
information required by the commissioner.
(c) As part of the annual statement required in this section, each
society shall, before March 1, file with the commissioner a valuation
of its certificates in force on December 31 last preceding, provided
the commissioner may for cause shown, extend the time for filing the
valuation for not more than two (2) calendar months. The valuation
shall be done in accordance with the standards specified in section
1 of this chapter. The valuation and underlying data shall be certified
by a qualified actuary or, at the expense of the society, verified by
the actuary of the department of insurance of the state of domicile of
the society.
(d) A society neglecting to file the annual statement in the form
and within the time provided by this section shall forfeit one hundred
dollars ($100) for each day during which the neglect continues, and,
upon notice by the commissioner to that effect, its authority to do
business in Indiana shall cease while the default continues. As added by P.L.262-1985, SEC.1. Amended by P.L.31-1988,
SEC.24.
IC 27-11-8-3 Renewal of license; fee
Sec. 3. The authority of all societies licensed may be renewed
annually, but in all cases to terminate on April 30. However, a
license shall continue in full force and effect until the new license is
issued or specifically refused. For each license or renewal, the
society shall pay the commissioner a fee of twenty-five dollars ($25).
A duly certified copy or duplicate of the license is prima facie
evidence that the licensee is a fraternal benefit society within the
meaning of this article. As added by P.L.262-1985, SEC.1. Amended by P.L.31-1988,
SEC.25.
IC 27-11-8-4 Examination of societies transacting or applying for admission to
transact business in Indiana; expenses
Sec. 4. (a) The commissioner or any person the commissioner may
appoint may examine any domestic, foreign, or alien society
transacting or applying for admission to transact business in Indiana
in the same manner as authorized for examination of domestic,
foreign, or alien insurers. Requirements of notice and an opportunity
to respond before findings are made public as provided in the laws
regulating insurers shall also be applicable to the examination of
societies.
(b) The expense of each examination and of each valuation,
including compensation and actual expense of examiners, shall be
paid by the society examined or whose certificates are valued, upon
statements furnished by the commissioner. As added by P.L.262-1985, SEC.1. IC 27-11-8-5 Requirements for issuance of license to transact business in
Indiana
Sec. 5. No foreign or alien society shall transact business in
Indiana without a license issued by the commissioner. Any society
desiring admission to Indiana shall comply substantially with the
requirements and limitations of this article applicable to domestic
societies. Any society may be licensed to transact business in Indiana
upon filing with the commissioner:
(1) a certified copy of its articles of incorporation;
(2) a copy of its bylaws, certified by its secretary or
corresponding officer;
(3) a power of attorney to the commissioner as prescribed in
IC 27-11-9-1;
(4) a statement of its business under oath of its president and
secretary or corresponding officers in a form prescribed by the
commissioner, verified by an examination made by the
supervising insurance official of its home state or other state,
territory, province, or country and satisfactory to the
commissioner;
(5) certification from the proper official of its home state,
territory, province, or country that the society is legally
incorporated and licensed to transact business therein;
(6) copies of its certificate forms; and
(7) such other information as the commissioner considers
necessary;
and upon a showing that its assets are invested in accordance with
this chapter. As added by P.L.262-1985, SEC.1.
IC 27-11-8-6 Noncompliance with limitations on transaction of business;
injunction; hearing; liquidation of society; receivership; voluntary
determination to discontinue business
Sec. 6. (a) When the commissioner upon investigation finds that
a domestic society:
(1) has exceeded its powers;
(2) has failed to comply with this chapter;
(3) is not fulfilling its contracts in good faith;
(4) has a membership of less than four hundred (400) after an
existence of one (1) year or more; or
(5) is conducting business fraudulently or in a manner
hazardous to its members, creditors, the public, or the business;
the commissioner shall in writing notify the society of the deficiency
or deficiencies, state the reasons for the commissioner's
dissatisfaction, and require that the deficiency or deficiencies that
exist be corrected. After notice, the society shall have thirty (30)
days in which to comply with the commissioner's request for
correction, and, if the society fails to comply, the commissioner shall
notify the society of the findings of noncompliance and require the
society to show cause on a date named why it should not be enjoined
from carrying on any business until the violation complained of shall
have been corrected, or why an action in quo warranto should not be
commenced against the society.
(b) If on that date the society does not present good and sufficient
reasons why it should not be enjoined or why action should not be
commenced, the commissioner may present the facts relating thereto
to the attorney general who shall, if the attorney general considers
the circumstances warrant, commence an action to enjoin the society
from transacting business or in quo warranto.
(c) The court shall notify the officers of the society of a hearing.
If after a full hearing it appears that the society should be enjoined
or liquidated or a receiver appointed, the court shall enter the
necessary order. No society so enjoined shall have the authority to do
business until:
(1) the commissioner finds that the violation complained of has
been corrected;
(2) the costs of the action have been paid by the society if the
court finds that the society was in default as charged;
(3) the court has dissolved its injunction; and
(4) the commissioner has reinstated the certificate of authority.
(d) If the court orders the society liquidated, it shall be enjoined
from carrying on any further business, whereupon the receiver of the
society shall proceed at once to take possession of the books, papers,
money, and other assets of the society and, under the direction of the
court, proceed to close the affairs of the society and to distribute its
funds to those entitled to the funds.
(e) No action under this section shall be recognized in any court
of this state unless brought by the attorney general upon request of
the commissioner. Whenever a receiver is to be appointed for a
domestic society, the court shall appoint the commissioner as the
receiver.
(f) The provisions of this section relating to hearing by the
commissioner, action by the attorney general at the request of the
commissioner, hearing by the court, injunction, and receivership
shall be applicable to a society that shall voluntarily determine to
discontinue business. As added by P.L.262-1985, SEC.1.
IC 27-11-8-7 Noncompliance by foreign or alien society; suspension, revocation,
or refusal of license
Sec. 7. (a) When the commissioner upon investigation finds that
a foreign or alien society transacting or applying to transact business
in Indiana:
(1) has exceeded its powers;
(2) has failed to comply with any of the provisions of this
chapter;
(3) is not fulfilling its contracts in good faith; or
(4) is conducting its business fraudulently or in a manner
hazardous to its members or creditors or the public;
the commissioner shall in writing notify the society of the deficiency
or deficiencies, state the reasons for the commissioner's
dissatisfaction, and require that the deficiency or deficiencies that
exist be corrected.
(b) After the notice, the society shall have thirty (30) days in
which to comply with the commissioner's request for correction, and,
if the society fails to comply, the commissioner shall notify the
society of the findings of noncompliance and require the society to
show cause on a date named why its license should not be suspended,
revoked, or refused. If on that date the society does not present good
and sufficient reason why its authority to do business in Indiana
should not be suspended, revoked, or refused, the commissioner may
suspend or refuse the license of the society to do business in Indiana
until satisfactory evidence is furnished to the commissioner that the
suspension or refusal should be withdrawn, or the commissioner may
revoke the authority of the society to do business in Indiana.
(c) Nothing contained in this section shall be taken or construed
as preventing any society from continuing in good faith all contracts
made in Indiana during the time the society was legally authorized to
transact business in Indiana. As added by P.L.262-1985, SEC.1.
IC 27-11-8-8 Application or petition for injunction
Sec. 8. No application or petition for injunction against any
domestic, foreign, or alien society, or lodge shall be recognized in
any court of Indiana unless made by the attorney general upon
request of the commissioner. As added by P.L.262-1985, SEC.1.
IC 27-11-8-9 Licensing of insurance producers of societies
Sec. 9. (a) Insurance producers of societies shall be licensed in
accordance with the laws regulating the licensing and the revocation,
suspension, or termination of license of resident and nonresident
insurance producers.
(b) No examination or license shall be required of any regular
salaried officer, employee, or member of a licensed society who
devotes substantially all of the officer's, employee's or member's
services to activities other than the solicitation of fraternal insurance
contracts from the public and who receives for the solicitation of
those contracts no commission or other compensation directly
dependent upon the amount of business obtained. As added by P.L.262-1985, SEC.1. Amended by P.L.178-2003,
SEC.83.
IC 27-11-8-10 Unfair competition; unfair or deceptive acts or practices
Sec. 10. Every society authorized to do business in Indiana shall
be subject to IC 27-4-1 relating to unfair methods of competition and
unfair or deceptive acts or practices, provided that nothing in those
provisions shall be construed as applying to or affecting the right of
any society to determine its eligibility requirements for membership
or be construed as applying to or affecting the offering of benefits
exclusively to members or persons eligible for membership in the
society by a subsidiary corporation or affiliated organization of the
society. As added by P.L.262-1985, SEC.1.
IC 27-11-8-1 Standards for valuation of certificates; maintenance of excess
reserves on certificates
Sec. 1. (a) Standards of valuation for certificates issued before
January 1, 1987, shall be those provided by the laws applicable on
December 31, 1985.
(b) The minimum standards of valuation for certificates issued
after December 31, 1986, shall be based on the following tables:
(1) For certificates of life insurance.the Commissioner's 1941
Standard Ordinary Mortality Table, the Commissioner's 1941
Standard Industrial Mortality Table, the Commissioner's 1958
Standard Ordinary Mortality Table, the Commissioner's 1980
Standard Ordinary Mortality Table, or any more recent table
made applicable to life insurers.
(2) For annuity and pure endowment certificates, total and
permanent disability benefits, accidental death benefits, and
noncancellable accident and health benefits.such tables as are
authorized for use by life insurers in this state.
(c) All of the above shall be under valuation methods and
standards (including interest assumptions) in accordance with the
laws of this state applicable to life insurers issuing policies
containing like benefits.
(d) The commissioner may accept other standards for valuation if
the commissioner finds that the reserves produced will not be less in
the aggregate than reserves computed in accordance with the
minimum valuation standard prescribed in this section. The
commissioner may vary the standards of mortality applicable to all
benefit contracts on substandard lives or other extra hazardous lives
by any society authorized to do business in this state.
(e) Any society, with the consent of the commissioner of the state
of domicile of the society and under the conditions, if any, that the
commissioner may impose, may establish and maintain reserves on
its certificates in excess of the reserves required thereunder, but the
contractual rights of any benefit member shall not be affected
thereby. As added by P.L.262-1985, SEC.1.
IC 27-11-8-2 Annual financial statement
Sec. 2. (a) Reports shall be filed in accordance with this section.
(b) Every society transacting business in this state shall annually,
before March 1, unless for cause shown the time has been extended
by the commissioner, file with the commissioner a true statement of
its financial condition, transactions, and affairs for the preceding
calendar year and pay a fee of twenty-five dollars ($25) for filing the
statement. The statement shall be in general form and context as
approved by the National Association of Insurance Commissioners
for fraternal benefit societies and as supplemented by additional
information required by the commissioner.
(c) As part of the annual statement required in this section, each
society shall, before March 1, file with the commissioner a valuation
of its certificates in force on December 31 last preceding, provided
the commissioner may for cause shown, extend the time for filing the
valuation for not more than two (2) calendar months. The valuation
shall be done in accordance with the standards specified in section
1 of this chapter. The valuation and underlying data shall be certified
by a qualified actuary or, at the expense of the society, verified by
the actuary of the department of insurance of the state of domicile of
the society.
(d) A society neglecting to file the annual statement in the form
and within the time provided by this section shall forfeit one hundred
dollars ($100) for each day during which the neglect continues, and,
upon notice by the commissioner to that effect, its authority to do
business in Indiana shall cease while the default continues. As added by P.L.262-1985, SEC.1. Amended by P.L.31-1988,
SEC.24.
IC 27-11-8-3 Renewal of license; fee
Sec. 3. The authority of all societies licensed may be renewed
annually, but in all cases to terminate on April 30. However, a
license shall continue in full force and effect until the new license is
issued or specifically refused. For each license or renewal, the
society shall pay the commissioner a fee of twenty-five dollars ($25).
A duly certified copy or duplicate of the license is prima facie
evidence that the licensee is a fraternal benefit society within the
meaning of this article. As added by P.L.262-1985, SEC.1. Amended by P.L.31-1988,
SEC.25.
IC 27-11-8-4 Examination of societies transacting or applying for admission to
transact business in Indiana; expenses
Sec. 4. (a) The commissioner or any person the commissioner may
appoint may examine any domestic, foreign, or alien society
transacting or applying for admission to transact business in Indiana
in the same manner as authorized for examination of domestic,
foreign, or alien insurers. Requirements of notice and an opportunity
to respond before findings are made public as provided in the laws
regulating insurers shall also be applicable to the examination of
societies.
(b) The expense of each examination and of each valuation,
including compensation and actual expense of examiners, shall be
paid by the society examined or whose certificates are valued, upon
statements furnished by the commissioner. As added by P.L.262-1985, SEC.1. IC 27-11-8-5 Requirements for issuance of license to transact business in
Indiana
Sec. 5. No foreign or alien society shall transact business in
Indiana without a license issued by the commissioner. Any society
desiring admission to Indiana shall comply substantially with the
requirements and limitations of this article applicable to domestic
societies. Any society may be licensed to transact business in Indiana
upon filing with the commissioner:
(1) a certified copy of its articles of incorporation;
(2) a copy of its bylaws, certified by its secretary or
corresponding officer;
(3) a power of attorney to the commissioner as prescribed in
IC 27-11-9-1;
(4) a statement of its business under oath of its president and
secretary or corresponding officers in a form prescribed by the
commissioner, verified by an examination made by the
supervising insurance official of its home state or other state,
territory, province, or country and satisfactory to the
commissioner;
(5) certification from the proper official of its home state,
territory, province, or country that the society is legally
incorporated and licensed to transact business therein;
(6) copies of its certificate forms; and
(7) such other information as the commissioner considers
necessary;
and upon a showing that its assets are invested in accordance with
this chapter. As added by P.L.262-1985, SEC.1.
IC 27-11-8-6 Noncompliance with limitations on transaction of business;
injunction; hearing; liquidation of society; receivership; voluntary
determination to discontinue business
Sec. 6. (a) When the commissioner upon investigation finds that
a domestic society:
(1) has exceeded its powers;
(2) has failed to comply with this chapter;
(3) is not fulfilling its contracts in good faith;
(4) has a membership of less than four hundred (400) after an
existence of one (1) year or more; or
(5) is conducting business fraudulently or in a manner
hazardous to its members, creditors, the public, or the business;
the commissioner shall in writing notify the society of the deficiency
or deficiencies, state the reasons for the commissioner's
dissatisfaction, and require that the deficiency or deficiencies that
exist be corrected. After notice, the society shall have thirty (30)
days in which to comply with the commissioner's request for
correction, and, if the society fails to comply, the commissioner shall
notify the society of the findings of noncompliance and require the
society to show cause on a date named why it should not be enjoined
from carrying on any business until the violation complained of shall
have been corrected, or why an action in quo warranto should not be
commenced against the society.
(b) If on that date the society does not present good and sufficient
reasons why it should not be enjoined or why action should not be
commenced, the commissioner may present the facts relating thereto
to the attorney general who shall, if the attorney general considers
the circumstances warrant, commence an action to enjoin the society
from transacting business or in quo warranto.
(c) The court shall notify the officers of the society of a hearing.
If after a full hearing it appears that the society should be enjoined
or liquidated or a receiver appointed, the court shall enter the
necessary order. No society so enjoined shall have the authority to do
business until:
(1) the commissioner finds that the violation complained of has
been corrected;
(2) the costs of the action have been paid by the society if the
court finds that the society was in default as charged;
(3) the court has dissolved its injunction; and
(4) the commissioner has reinstated the certificate of authority.
(d) If the court orders the society liquidated, it shall be enjoined
from carrying on any further business, whereupon the receiver of the
society shall proceed at once to take possession of the books, papers,
money, and other assets of the society and, under the direction of the
court, proceed to close the affairs of the society and to distribute its
funds to those entitled to the funds.
(e) No action under this section shall be recognized in any court
of this state unless brought by the attorney general upon request of
the commissioner. Whenever a receiver is to be appointed for a
domestic society, the court shall appoint the commissioner as the
receiver.
(f) The provisions of this section relating to hearing by the
commissioner, action by the attorney general at the request of the
commissioner, hearing by the court, injunction, and receivership
shall be applicable to a society that shall voluntarily determine to
discontinue business. As added by P.L.262-1985, SEC.1.
IC 27-11-8-7 Noncompliance by foreign or alien society; suspension, revocation,
or refusal of license
Sec. 7. (a) When the commissioner upon investigation finds that
a foreign or alien society transacting or applying to transact business
in Indiana:
(1) has exceeded its powers;
(2) has failed to comply with any of the provisions of this
chapter;
(3) is not fulfilling its contracts in good faith; or
(4) is conducting its business fraudulently or in a manner
hazardous to its members or creditors or the public;
the commissioner shall in writing notify the society of the deficiency
or deficiencies, state the reasons for the commissioner's
dissatisfaction, and require that the deficiency or deficiencies that
exist be corrected.
(b) After the notice, the society shall have thirty (30) days in
which to comply with the commissioner's request for correction, and,
if the society fails to comply, the commissioner shall notify the
society of the findings of noncompliance and require the society to
show cause on a date named why its license should not be suspended,
revoked, or refused. If on that date the society does not present good
and sufficient reason why its authority to do business in Indiana
should not be suspended, revoked, or refused, the commissioner may
suspend or refuse the license of the society to do business in Indiana
until satisfactory evidence is furnished to the commissioner that the
suspension or refusal should be withdrawn, or the commissioner may
revoke the authority of the society to do business in Indiana.
(c) Nothing contained in this section shall be taken or construed
as preventing any society from continuing in good faith all contracts
made in Indiana during the time the society was legally authorized to
transact business in Indiana. As added by P.L.262-1985, SEC.1.
IC 27-11-8-8 Application or petition for injunction
Sec. 8. No application or petition for injunction against any
domestic, foreign, or alien society, or lodge shall be recognized in
any court of Indiana unless made by the attorney general upon
request of the commissioner. As added by P.L.262-1985, SEC.1.
IC 27-11-8-9 Licensing of insurance producers of societies
Sec. 9. (a) Insurance producers of societies shall be licensed in
accordance with the laws regulating the licensing and the revocation,
suspension, or termination of license of resident and nonresident
insurance producers.
(b) No examination or license shall be required of any regular
salaried officer, employee, or member of a licensed society who
devotes substantially all of the officer's, employee's or member's
services to activities other than the solicitation of fraternal insurance
contracts from the public and who receives for the solicitation of
those contracts no commission or other compensation directly
dependent upon the amount of business obtained. As added by P.L.262-1985, SEC.1. Amended by P.L.178-2003,
SEC.83.
IC 27-11-8-10 Unfair competition; unfair or deceptive acts or practices
Sec. 10. Every society authorized to do business in Indiana shall
be subject to IC 27-4-1 relating to unfair methods of competition and
unfair or deceptive acts or practices, provided that nothing in those
provisions shall be construed as applying to or affecting the right of
any society to determine its eligibility requirements for membership
or be construed as applying to or affecting the offering of benefits
exclusively to members or persons eligible for membership in the
society by a subsidiary corporation or affiliated organization of the
society. As added by P.L.262-1985, SEC.1.
IC 27-11-8-1 Standards for valuation of certificates; maintenance of excess
reserves on certificates
Sec. 1. (a) Standards of valuation for certificates issued before
January 1, 1987, shall be those provided by the laws applicable on
December 31, 1985.
(b) The minimum standards of valuation for certificates issued
after December 31, 1986, shall be based on the following tables:
(1) For certificates of life insurance.the Commissioner's 1941
Standard Ordinary Mortality Table, the Commissioner's 1941
Standard Industrial Mortality Table, the Commissioner's 1958
Standard Ordinary Mortality Table, the Commissioner's 1980
Standard Ordinary Mortality Table, or any more recent table
made applicable to life insurers.
(2) For annuity and pure endowment certificates, total and
permanent disability benefits, accidental death benefits, and
noncancellable accident and health benefits.such tables as are
authorized for use by life insurers in this state.
(c) All of the above shall be under valuation methods and
standards (including interest assumptions) in accordance with the
laws of this state applicable to life insurers issuing policies
containing like benefits.
(d) The commissioner may accept other standards for valuation if
the commissioner finds that the reserves produced will not be less in
the aggregate than reserves computed in accordance with the
minimum valuation standard prescribed in this section. The
commissioner may vary the standards of mortality applicable to all
benefit contracts on substandard lives or other extra hazardous lives
by any society authorized to do business in this state.
(e) Any society, with the consent of the commissioner of the state
of domicile of the society and under the conditions, if any, that the
commissioner may impose, may establish and maintain reserves on
its certificates in excess of the reserves required thereunder, but the
contractual rights of any benefit member shall not be affected
thereby. As added by P.L.262-1985, SEC.1.
IC 27-11-8-2 Annual financial statement
Sec. 2. (a) Reports shall be filed in accordance with this section.
(b) Every society transacting business in this state shall annually,
before March 1, unless for cause shown the time has been extended
by the commissioner, file with the commissioner a true statement of
its financial condition, transactions, and affairs for the preceding
calendar year and pay a fee of twenty-five dollars ($25) for filing the
statement. The statement shall be in general form and context as
approved by the National Association of Insurance Commissioners
for fraternal benefit societies and as supplemented by additional
information required by the commissioner.
(c) As part of the annual statement required in this section, each
society shall, before March 1, file with the commissioner a valuation
of its certificates in force on December 31 last preceding, provided
the commissioner may for cause shown, extend the time for filing the
valuation for not more than two (2) calendar months. The valuation
shall be done in accordance with the standards specified in section
1 of this chapter. The valuation and underlying data shall be certified
by a qualified actuary or, at the expense of the society, verified by
the actuary of the department of insurance of the state of domicile of
the society.
(d) A society neglecting to file the annual statement in the form
and within the time provided by this section shall forfeit one hundred
dollars ($100) for each day during which the neglect continues, and,
upon notice by the commissioner to that effect, its authority to do
business in Indiana shall cease while the default continues. As added by P.L.262-1985, SEC.1. Amended by P.L.31-1988,
SEC.24.
IC 27-11-8-3 Renewal of license; fee
Sec. 3. The authority of all societies licensed may be renewed
annually, but in all cases to terminate on April 30. However, a
license shall continue in full force and effect until the new license is
issued or specifically refused. For each license or renewal, the
society shall pay the commissioner a fee of twenty-five dollars ($25).
A duly certified copy or duplicate of the license is prima facie
evidence that the licensee is a fraternal benefit society within the
meaning of this article. As added by P.L.262-1985, SEC.1. Amended by P.L.31-1988,
SEC.25.
IC 27-11-8-4 Examination of societies transacting or applying for admission to
transact business in Indiana; expenses
Sec. 4. (a) The commissioner or any person the commissioner may
appoint may examine any domestic, foreign, or alien society
transacting or applying for admission to transact business in Indiana
in the same manner as authorized for examination of domestic,
foreign, or alien insurers. Requirements of notice and an opportunity
to respond before findings are made public as provided in the laws
regulating insurers shall also be applicable to the examination of
societies.
(b) The expense of each examination and of each valuation,
including compensation and actual expense of examiners, shall be
paid by the society examined or whose certificates are valued, upon
statements furnished by the commissioner. As added by P.L.262-1985, SEC.1. IC 27-11-8-5 Requirements for issuance of license to transact business in
Indiana
Sec. 5. No foreign or alien society shall transact business in
Indiana without a license issued by the commissioner. Any society
desiring admission to Indiana shall comply substantially with the
requirements and limitations of this article applicable to domestic
societies. Any society may be licensed to transact business in Indiana
upon filing with the commissioner:
(1) a certified copy of its articles of incorporation;
(2) a copy of its bylaws, certified by its secretary or
corresponding officer;
(3) a power of attorney to the commissioner as prescribed in
IC 27-11-9-1;
(4) a statement of its business under oath of its president and
secretary or corresponding officers in a form prescribed by the
commissioner, verified by an examination made by the
supervising insurance official of its home state or other state,
territory, province, or country and satisfactory to the
commissioner;
(5) certification from the proper official of its home state,
territory, province, or country that the society is legally
incorporated and licensed to transact business therein;
(6) copies of its certificate forms; and
(7) such other information as the commissioner considers
necessary;
and upon a showing that its assets are invested in accordance with
this chapter. As added by P.L.262-1985, SEC.1.
IC 27-11-8-6 Noncompliance with limitations on transaction of business;
injunction; hearing; liquidation of society; receivership; voluntary
determination to discontinue business
Sec. 6. (a) When the commissioner upon investigation finds that
a domestic society:
(1) has exceeded its powers;
(2) has failed to comply with this chapter;
(3) is not fulfilling its contracts in good faith;
(4) has a membership of less than four hundred (400) after an
existence of one (1) year or more; or
(5) is conducting business fraudulently or in a manner
hazardous to its members, creditors, the public, or the business;
the commissioner shall in writing notify the society of the deficiency
or deficiencies, state the reasons for the commissioner's
dissatisfaction, and require that the deficiency or deficiencies that
exist be corrected. After notice, the society shall have thirty (30)
days in which to comply with the commissioner's request for
correction, and, if the society fails to comply, the commissioner shall
notify the society of the findings of noncompliance and require the
society to show cause on a date named why it should not be enjoined
from carrying on any business until the violation complained of shall
have been corrected, or why an action in quo warranto should not be
commenced against the society.
(b) If on that date the society does not present good and sufficient
reasons why it should not be enjoined or why action should not be
commenced, the commissioner may present the facts relating thereto
to the attorney general who shall, if the attorney general considers
the circumstances warrant, commence an action to enjoin the society
from transacting business or in quo warranto.
(c) The court shall notify the officers of the society of a hearing.
If after a full hearing it appears that the society should be enjoined
or liquidated or a receiver appointed, the court shall enter the
necessary order. No society so enjoined shall have the authority to do
business until:
(1) the commissioner finds that the violation complained of has
been corrected;
(2) the costs of the action have been paid by the society if the
court finds that the society was in default as charged;
(3) the court has dissolved its injunction; and
(4) the commissioner has reinstated the certificate of authority.
(d) If the court orders the society liquidated, it shall be enjoined
from carrying on any further business, whereupon the receiver of the
society shall proceed at once to take possession of the books, papers,
money, and other assets of the society and, under the direction of the
court, proceed to close the affairs of the society and to distribute its
funds to those entitled to the funds.
(e) No action under this section shall be recognized in any court
of this state unless brought by the attorney general upon request of
the commissioner. Whenever a receiver is to be appointed for a
domestic society, the court shall appoint the commissioner as the
receiver.
(f) The provisions of this section relating to hearing by the
commissioner, action by the attorney general at the request of the
commissioner, hearing by the court, injunction, and receivership
shall be applicable to a society that shall voluntarily determine to
discontinue business. As added by P.L.262-1985, SEC.1.
IC 27-11-8-7 Noncompliance by foreign or alien society; suspension, revocation,
or refusal of license
Sec. 7. (a) When the commissioner upon investigation finds that
a foreign or alien society transacting or applying to transact business
in Indiana:
(1) has exceeded its powers;
(2) has failed to comply with any of the provisions of this
chapter;
(3) is not fulfilling its contracts in good faith; or
(4) is conducting its business fraudulently or in a manner
hazardous to its members or creditors or the public;
the commissioner shall in writing notify the society of the deficiency
or deficiencies, state the reasons for the commissioner's
dissatisfaction, and require that the deficiency or deficiencies that
exist be corrected.
(b) After the notice, the society shall have thirty (30) days in
which to comply with the commissioner's request for correction, and,
if the society fails to comply, the commissioner shall notify the
society of the findings of noncompliance and require the society to
show cause on a date named why its license should not be suspended,
revoked, or refused. If on that date the society does not present good
and sufficient reason why its authority to do business in Indiana
should not be suspended, revoked, or refused, the commissioner may
suspend or refuse the license of the society to do business in Indiana
until satisfactory evidence is furnished to the commissioner that the
suspension or refusal should be withdrawn, or the commissioner may
revoke the authority of the society to do business in Indiana.
(c) Nothing contained in this section shall be taken or construed
as preventing any society from continuing in good faith all contracts
made in Indiana during the time the society was legally authorized to
transact business in Indiana. As added by P.L.262-1985, SEC.1.
IC 27-11-8-8 Application or petition for injunction
Sec. 8. No application or petition for injunction against any
domestic, foreign, or alien society, or lodge shall be recognized in
any court of Indiana unless made by the attorney general upon
request of the commissioner. As added by P.L.262-1985, SEC.1.
IC 27-11-8-9 Licensing of insurance producers of societies
Sec. 9. (a) Insurance producers of societies shall be licensed in
accordance with the laws regulating the licensing and the revocation,
suspension, or termination of license of resident and nonresident
insurance producers.
(b) No examination or license shall be required of any regular
salaried officer, employee, or member of a licensed society who
devotes substantially all of the officer's, employee's or member's
services to activities other than the solicitation of fraternal insurance
contracts from the public and who receives for the solicitation of
those contracts no commission or other compensation directly
dependent upon the amount of business obtained. As added by P.L.262-1985, SEC.1. Amended by P.L.178-2003,
SEC.83.
IC 27-11-8-10 Unfair competition; unfair or deceptive acts or practices
Sec. 10. Every society authorized to do business in Indiana shall
be subject to IC 27-4-1 relating to unfair methods of competition and
unfair or deceptive acts or practices, provided that nothing in those
provisions shall be construed as applying to or affecting the right of
any society to determine its eligibility requirements for membership
or be construed as applying to or affecting the offering of benefits
exclusively to members or persons eligible for membership in the
society by a subsidiary corporation or affiliated organization of the
society. As added by P.L.262-1985, SEC.1.
