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Indiana House Bill HB1329

Indiana 2023 Regular Session

Indiana House Bill HB1329 Compare Versions

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1+*EH1329.2*
2+Reprinted
3+April 4, 2023
4+ENGROSSED
5+HOUSE BILL No. 1329
6+_____
7+DIGEST OF HB 1329 (Updated April 3, 2023 2:34 pm - DI 141)
8+Citations Affected: IC 27-1; IC 27-2; IC 27-4; IC 27-8; IC 27-9;
9+IC 27-13; IC 27-14; IC 27-14.5; IC 27-19; IC 35-40.
10+Synopsis: Insurance matters. Provides that if an insurance producer
11+actively participates in a state or national professional insurance
12+organization, the insurance commissioner may apply the insurance
13+producer's participation toward the satisfaction of not more than two
14+hours of the insurance producer's continuing education requirement in
15+every two year licensing period. Prohibits a public adjuster to: (1) file
16+an insurance claim on behalf of an insured; (2) perform the role of
17+roofing contractor, appraiser, or any other role with respect to the
18+subject of a claim when the public adjuster is providing advice or
19+assistance in the adjustment of the claim; or (3) file an unfair claim
20+settlement practice complaint unless the person who filed the claim has
21+given written consent for the public adjuster to file the complaint.
22+Requires a public adjuster, before entering into a contract with an
23+insured, to provide a written disclosure concerning any direct or
24+(Continued next page)
25+Effective: May 1, 2023; July 1, 2023.
26+Lehman, Carbaugh, Fleming,
27+Criswell
28+(SENATE SPONSORS — BALDWIN, HOLDMAN, RANDOLPH LONNIE M)
29+January 12, 2023, read first time and referred to Committee on Insurance.
30+February 16, 2023, amended, reported — Do Pass.
31+February 21, 2023, read second time, ordered engrossed.
32+February 22, 2023, engrossed. Read third time, passed. Yeas 92, nays 0.
33+SENATE ACTION
34+March 1, 2023, read first time and referred to Committee on Insurance and Financial
35+Institutions.
36+March 30, 2023, amended, reported favorably — Do Pass.
37+April 3, 2023, read second time, amended, ordered engrossed.
38+EH 1329—LS 7406/DI 55 Digest Continued
39+indirect financial interest that the public adjuster has with any other
40+party that is or will be involved in the insured's claim. Requires a
41+public adjuster to provide to an insured a disclosure document
42+containing certain information before the insured enters into a contract
43+with the public adjuster. Provides that a contract between a public
44+adjuster and an insured must be in writing, must contain certain
45+information, and must be prepared on a form filed with and approved
46+by the insurance commissioner. Prohibits the inclusion of certain terms
47+in the contract. Provides that if the insurer, not more than five business
48+days after the date on which the insured's loss is reported to the insurer,
49+either pays or commits in writing to pay to the policy limit of the
50+insured's policy, the public adjuster may not be compensated by
51+receiving a percentage of the total amount paid by the insurer and is
52+entitled only to reasonable compensation for services provided. Allows
53+an insured to void or rescind a contract with a public adjuster. Requires
54+the Indiana Public Employers' Plan, Inc., before December 31, 2026,
55+to apply to the insurance commissioner for a certificate of authority to
56+transact business as a domestic tax exempt reciprocal insurance
57+company. Amends the anti-rebating law to provide that value-added
58+products or services may be offered or provided for free or at a
59+discounted price by an insurer or an insurance producer: (1) if the
60+products or services: (A) are intended to mitigate or reduce the severity
61+or frequency of loss; or (B) are primarily designed to enhance the
62+health, financial wellness, or safety of persons or of persons' lives,
63+health, or property; or (2) if the products or services: (A) are not
64+offered in a manner that is unfairly discriminatory; and (B) are made
65+available based on documented, objective criteria that are maintained
66+for inspection by the insurance commissioner. Requires that a
67+value-added product or service be accompanied by contact information.
68+Requires an insurer that makes a material change to an insured's
69+personal automobile or homeowner's policy to provide a written notice:
70+(1) explaining the principal factors for the material change; or (2)
71+stating that the first named insured, upon request, has a right to obtain
72+a written notice explaining the principal factors for the material change.
73+Establishes certain requirements for a notice of material change.
74+Requires the insurance commissioner to adopt rules to implement the
75+notice of material change requirements. Requires an insurer or health
76+maintenance organization (HMO) that provides coverage under an
77+Affordable Care Act Marketplace plan (Marketplace plan) to provide
78+to each individual covered under the Marketplace plan, not earlier than
79+six months and not later than two months before the individual will
80+become 65 years of age, a notice that includes: (1) a statement that the
81+individual may be eligible to enroll in Medicare during the individual's
82+initial enrollment period; (2) a statement that, in most cases, someone
83+covered by a Marketplace plan will want to end their Marketplace plan
84+coverage upon becoming eligible for Medicare; and (3) detailed
85+instructions for canceling the individual's Marketplace plan. Provides
86+that the plan sponsor of a health benefit plan may, on behalf of all
87+covered individuals, provide consent: (1) to all communications related
88+to the health benefit plan being sent to covered individuals by
89+electronic means; and (2) to the electronic delivery of health insurance
90+identification cards. Repeals the current mutual insurance holding
91+company law (IC 27-14) and replaces it with a new mutual holding
92+company law (IC 27-14.5). Requires the insurance commissioner to
93+conduct an examination of a HMO domiciled in Indiana at least once
94+every five years (instead of once every three years) and provides that
95+an examination of the quality management program of an HMO must
96+be conducted at least once every five years (instead of once every three
97+years). Amends the health benefit exchange law to provide that an
98+individual who continues to pay premiums for a policy or contract
99+offered by a qualified health plan issuer in a benefit year that follows
100+the benefit year in which the individual purchased the original policy
101+(Continued next page)
102+EH 1329—LS 7406/DI 55 Digest Continued
103+or contract is considered to have purchased a new policy or contract for
104+the purposes of the federal regulation providing that Medicare
105+entitlement or enrollment is not a basis to nonrenew an individual's
106+health insurance coverage in the individual market under the same
107+policy or contract of insurance.
108+EH 1329—LS 7406/DI 55 Reprinted
109+April 4, 2023
1110 First Regular Session of the 123rd General Assembly (2023)
2111 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3112 Constitution) is being amended, the text of the existing provision will appear in this style type,
4113 additions will appear in this style type, and deletions will appear in this style type.
5114 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6115 provision adopted), the text of the new provision will appear in this style type. Also, the
7116 word NEW will appear in that style type in the introductory clause of each SECTION that adds
8117 a new provision to the Indiana Code or the Indiana Constitution.
9118 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10119 between statutes enacted by the 2022 Regular Session of the General Assembly.
11-HOUSE ENROLLED ACT No. 1329
12-AN ACT to amend the Indiana Code concerning insurance.
120+ENGROSSED
121+HOUSE BILL No. 1329
122+A BILL FOR AN ACT to amend the Indiana Code concerning
123+insurance.
13124 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. IC 27-1-15.7-2, AS AMENDED BY P.L.165-2022,
15-SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16-JULY 1, 2023]: Sec. 2. (a) Except as provided in subsection (b) and
17-section 2.4 of this chapter, to renew a license issued under
18-IC 27-1-15.6, a resident insurance producer must complete at least
19-twenty-four (24) hours of credit in continuing education courses, not
20-more than four (4) hours of which may be in courses concerning one
21-(1) or a combination of the following:
22-(1) Sales promotion.
23-(2) Sales technique.
24-(3) Motivation.
25-(4) Psychology.
26-(5) Time management.
27-If the insurance producer has a qualification described in
28-IC 27-1-15.6-7(a)(1), IC 27-1-15.6-7(a)(2), or IC 27-1-15.6-7(a)(5), for
29-a license renewal that occurs after June 30, 2014, at least three (3) of
30-the hours of credit required by this subsection must be related to ethical
31-practices in the marketing and sale of life, health, or annuity insurance
32-products. An attorney in good standing who is admitted to the practice
33-of law in Indiana and holds a license issued under IC 27-1-15.6 may
34-HEA 1329 — CC 1 2
35-complete all or any number of hours of continuing education required
36-by this subsection by completing an equivalent number of hours in
37-continuing legal education courses that are related to the business of
38-insurance.
39-(b) Except as provided in subsection (c), to renew a license issued
40-under IC 27-1-15.6, a limited lines producer with a title qualification
41-under IC 27-1-15.6-7(a)(8) must complete at least seven (7) hours of
42-credit in continuing education courses related to the business of title
43-insurance, in a structured setting or comparable self-study, in any of the
44-following or any combination of the following:
45-(1) Ethical practices in the marketing and selling of title
46-insurance, including provisions of the Dodd-Frank Wall Street
47-Reform and Consumer Protection Act set forth in 12 U.S.C. 2608.
48-(2) Title insurance underwriting.
49-(3) Escrow matters.
50-(4) Matters concerning regulation by the department.
51-(5) Any other topic related to the marketing and selling of title
52-insurance.
53-An attorney in good standing who is admitted to the practice of law in
54-Indiana and holds a license issued under IC 27-1-15.6 with a title
55-qualification under IC 27-1-15.6-7(a)(8) may complete all or any
56-number of hours of continuing education required by this subsection by
57-completing an equivalent number of hours in continuing legal
58-education courses related to the business of title insurance or any
59-aspect of real property law.
60-(c) The following insurance producers are not required to complete
61-continuing education courses to renew a license under this chapter:
62-(1) A limited lines producer who is licensed without examination
63-under IC 27-1-15.6-18(1).
64-(2) A limited line credit insurance producer.
65-(3) A nonresident limited lines producer with a title qualification:
66-(A) whose home state requires continuing education for a title
67-qualification; and
68-(B) who has met the continuing education requirements
69-described in clause (A).
70-(d) Except as provided in section 2.2 of this chapter, to satisfy the
71-requirements of subsection (a) or (b), a licensee may use only those
72-credit hours earned in continuing education courses completed by the
73-licensee:
74-(1) after the effective date of the licensee's last renewal of a
75-license under this chapter; or
76-(2) if the licensee is renewing a license for the first time, after the
77-HEA 1329 — CC 1 3
78-date on which the licensee was issued the license under this
79-chapter.
80-(e) If an insurance producer receives qualification for a license in
81-more than one (1) line of authority under IC 27-1-15.6, the insurance
82-producer may not be required to complete a total of more than
83-twenty-four (24) hours of credit in continuing education courses to
84-renew the license.
85-(f) Except as provided in subsection (g), a licensee may receive
86-credit only for completing the following continuing education courses:
87-(1) Continuing education courses that have been approved by the
88-commissioner under section 4 of this chapter.
89-(2) Continuing education courses that are required for the licensee
90-under IC 27-19-4-14.
91-(g) A licensee who teaches a course approved by the commissioner
92-under section 4 of this chapter shall receive continuing education credit
93-for teaching the course.
94-(h) When a licensee renews a license issued under this chapter, the
95-licensee must submit:
96-(1) a continuing education statement that:
97-(A) is in a format authorized by the commissioner;
98-(B) is signed by the licensee under oath; and
99-(C) lists the continuing education courses completed by the
100-licensee to satisfy the continuing education requirements of
101-this section; and
102-(2) any other information required by the commissioner.
103-(i) A continuing education statement submitted under subsection (h)
104-may be reviewed and audited by the department.
105-(j) A licensee shall retain a copy of the original certificate of
106-completion received by the licensee for completion of a continuing
107-education course.
108-(k) A licensee who completes a continuing education course that:
109-(1) is approved by the commissioner under section 4 of this
110-chapter;
111-(2) is held in a classroom setting; and
112-(3) concerns ethics;
113-shall receive continuing education credit not to exceed four (4) hours
114-in a renewal period.
115-SECTION 2. IC 27-1-15.7-2.4 IS ADDED TO THE INDIANA
116-CODE AS A NEW SECTION TO READ AS FOLLOWS
117-[EFFECTIVE JULY 1, 2023]: Sec. 2.4. (a) This section applies to an
118-insurance producer licensed under IC 27-1-15.6 who is subject to
119-the continuing education requirement set forth in section 2(a) of
120-HEA 1329 — CC 1 4
121-this chapter.
122-(b) If an insurance producer actively participates in a state or
123-national professional insurance organization, the insurance
124-commissioner may:
125-(1) recognize the insurance producer's participation in the
126-professional insurance organization; and
127-(2) apply the insurance producer's participation toward
128-partial satisfaction of the continuing education requirement
129-set forth in section 2(a) of this chapter.
130-(c) To be recognized and applied under subsection (b), an
131-insurance producer's participation in a professional insurance
132-organization must be one of the following:
133-(1) Service on the board of directors of:
134-(A) a state professional insurance organization;
135-(B) a state chapter of a national professional insurance
136-organization; or
137-(C) a national professional insurance organization.
138-(2) Service on a formal committee of:
139-(A) a state professional insurance organization;
140-(B) a state chapter of a national professional insurance
141-organization; or
142-(C) a national professional insurance organization.
143-(3) Service on a formal subcommittee or task force of:
144-(A) a state professional insurance organization;
145-(B) a state chapter of a national professional insurance
146-organization; or
147-(C) a national professional insurance organization.
148-(d) Not more than two (2) of the twenty-four (24) total hours of
149-credit in continuing education courses required of an insurance
150-producer by section 2(a) of this chapter may be satisfied under this
151-section in each two (2) year licensing period.
152-(e) If an insurance producer's participation in a professional
153-insurance organization is recognized and applied under subsection
154-(b), one (1) hour of the insurance producer's participation in the
155-professional insurance organization shall count toward satisfaction
156-of one (1) hour of the twenty-four (24) total hours of credit in
157-continuing education courses required by section 2(a) of this
158-chapter, subject to the limit set forth in subsection (d).
159-(f) An insurance producer's participation in a professional
160-insurance organization may not be applied under this section
161-toward the satisfaction of the requirement under section 2(a) of
162-this chapter, if applicable, that an insurance producer complete at
163-HEA 1329 — CC 1 5
164-least three (3) hours of credit in continuing education courses
165-related to ethical practices in the marketing and sale of life, health,
166-or annuity insurance products in each two (2) year licensing
167-period.
168-(g) To be recognized and applied under subsection (b) toward
169-satisfaction of an insurance producer's continuing education
170-requirements under section 2(a) of this chapter for a two (2) year
171-licensing period, the insurance producer's participation in a
172-professional insurance organization must:
173-(1) occur during that two (2) year licensing period; and
174-(2) be verified by the professional insurance organization in
175-a communication submitted to the insurance commissioner
176-before the deadline (if any) established by the rules adopted
177-under subsection (h).
178-(h) The insurance commissioner may adopt rules under
179-IC 4-22-2 to administer this section.
180-SECTION 3. IC 27-1-27-1 IS AMENDED TO READ AS
181-FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 1. (a) The definitions
182-set forth in this section apply throughout this chapter.
183-(b) "Contract" refers to a contract between a public adjuster
184-and an insured under which:
185-(1) the public adjuster agrees to provide services for the
186-insured in the adjustment of an insurance claim; and
187-(2) the insured agrees to compensate the public adjuster for
188-those services.
189-(c) "Firm" includes any corporation, partnership, association,
190-joint stock company, or individual.
191-(d) "Independent adjuster" has the meaning set forth in
192-IC 27-1-28-6.
193-(e) "Insured" means a person covered by an insurance policy.
194-(f) "Person" means an individual, a corporation, a limited
195-liability company, a partnership, or any other legal entity.
196-(a) (g) The term "Public adjuster" shall include includes the
197-following:
198-(1) every individual or corporation who, or which, A person that,
199-for compensation or reward, renders advice or assistance to the an
200-insured in the adjustment of a claim or claims for loss or damages
201-under any policy of insurance covering real or personal property.
202-and
203-(2) any A person or corporation who, or which, that advertises,
204-solicits business, or holds itself out to the public as an adjuster of
205-such claims described in subdivision (1).
206-HEA 1329 — CC 1 6
207-However, no public adjuster shall:
208-(1) act in any manner in relation to claims for personal injury or
209-automobile property damage; or
210-(2) bind the insured in the settlement of claims.
211-(b) (h) This chapter does not apply to, and the following are not
212-included in The term "public adjuster" does not include the following:
213-(1) An attorney at law admitted to practice in the state of Indiana
214-who adjusts insurance losses in the course of the practice of the
215-attorney's profession.
216-(2) An officer, regular salaried employee, or other representative
217-of:
218-(A) an insurer; or of
219-(B) an attorney in fact of any reciprocal insurer of or Lloyd's
220-underwriter licensed to do business in Indiana;
221-who adjusts losses arising under an employer's or principal's own
222-policies.
223-(3) An adjustment bureau or association owned and maintained
224-by insurers to adjust or investigate losses of such the insurers, or
225-any regular salaried employee who devotes substantially all the
226-employee's time to the business of such an adjustment bureau or
227-association described in this subdivision.
228-(4) Any of the following:
229-(A) A licensed insurance producer. or
230-(B) An authorized insurer. or
231-(C) An officer or employee of the same an authorized
232-insurer who adjusts losses for such the insurer. and any
233-(D) An insurance producer or representative of a farm mutual
234-insurance company operating under the farm mutual insurance
235-laws of this state IC 27-5.1. on behalf of an insurer.
236-(5) Any independent adjuster representing an insurer.
237-SECTION 4. IC 27-1-27-1.5 IS ADDED TO THE INDIANA CODE
238-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
239-1, 2023]: Sec. 1.5. A public adjuster shall not:
240-(1) file an insurance claim with:
241-(A) an insurer; or
242-(B) an agent, employee, or representative of an insurer;
243-on behalf of an insured person;
244-(2) act in any manner in relation to claims for personal injury
245-or automobile liability;
246-(3) bind the insured in the settlement of claims; or
247-(4) perform:
248-(A) the role of a roofing contractor;
249-HEA 1329 — CC 1 7
250-(B) the role of an appraiser; or
251-(C) any other role;
252-with respect to the subject of a claim at the same time that the
253-public adjuster is providing advice or assistance to an insured
254-in the adjustment of the claim.
255-SECTION 5. IC 27-1-27-2 IS AMENDED TO READ AS
256-FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 2. (a) No individual or
257-corporation shall act within Indiana as a public adjuster, or receive,
258-directly or indirectly, compensation or reward for services rendered in
259-the adjustment of any claim or claims under the types of insurance
260-policies set forth in section 1(a) 1(g) of this chapter, unless he, the
261-individual, or it, is the holder of a certificate of authority to act as such
262-public adjuster issued by the commissioner of insurance of the state of
263-Indiana pursuant to this chapter.
264-(b) Any individual or corporation who, or which, shall have received
265-from the commissioner of insurance a public adjuster's certificate of
266-authority shall be styled and be known as a "Certified Public Adjuster".
267-SECTION 6. IC 27-1-27-7.1, AS ADDED BY P.L.146-2015,
268-SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
269-JULY 1, 2023]: Sec. 7.1. (a) The insurance commissioner:
270-(1) may:
271-(A) suspend;
272-(B) revoke; or
273-(C) refuse to issue or renew;
274-a public adjuster's certificate of authority; to act as a public
275-adjuster in Indiana, or
276-(2) may place a public adjuster on probation;
277-for a cause set forth in subsection (b).
278-(b) A public adjuster is subject to the penalties set forth in
279-subsection (a) for any of the following:
280-(1) Providing incorrect, misleading, incomplete, or materially
281-untrue information in an application for a certificate of authority.
282-(2) Violating an insurance law, a subpoena, or an order of the
283-commissioner or another state's insurance commissioner.
284-(3) Obtaining or attempting to obtain a certificate of authority
285-through misrepresentation or fraud.
286-(4) Improperly withholding, misappropriating, or converting
287-money or property received in the course of doing insurance
288-business.
289-(5) Intentionally misrepresenting the terms of an actual or
290-proposed insurance contract or application for insurance.
291-(6) Having been convicted of a felony.
292-HEA 1329 — CC 1 8
293-(7) Having admitted or been found to have committed any unfair
294-trade practice or fraud in the business of insurance.
295-(8) Using fraudulent, coercive, or dishonest practices, or
296-demonstrating incompetence, untrustworthiness, or financial
297-irresponsibility, in the conduct of insurance business.
298-(9) Having an insurance license, or the equivalent of an insurance
299-license, probated, suspended, revoked, or refused in another state,
300-province, district, or territory.
301-(10) Forging another person's name to a document related to an
302-insurance transaction.
303-(11) Cheating, including improperly using notes or any other
304-reference material, to complete an examination for an insurance
305-license.
306-(12) Failing to comply with an administrative or court order
307-imposing a child support obligation.
308-(13) Failing to pay state income tax or failing to comply with an
309-administrative or court order directing payment of state income
310-tax.
311-(14) Committing a violation of section 1.5, sections 12 through
312-17, section 19, or section 20 of this chapter.
313-(c) If the commissioner refuses an application for a certificate of
314-authority to act as a public adjuster or for the renewal of an existing
315-certificate of authority under this chapter, the commissioner shall notify
316-the applicant or certificate holder in writing, advising of the reason for
317-the refusal. The applicant or certificate holder may, not more than thirty
318-(30) days after receiving the commissioner's notice of refusal, make
319-written demand upon the commissioner for a hearing to determine the
320-reasonableness of the refusal. The hearing must be held under
321-IC 4-21.5 not more than twenty (20) days after the commissioner
322-receives the applicant's or certificate holder's written demand.
323-SECTION 7. IC 27-1-27-12 IS ADDED TO THE INDIANA CODE
324-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
325-1, 2023]: Sec. 12. (a) Before entering into a contract with an
326-insured, a public adjuster shall provide to the insured a written
327-disclosure concerning any direct or indirect financial interest that
328-the public adjuster has with any other party that is or will be
329-involved in any aspect of the insured's claim, other than by
330-receiving a salary, fee, commission, or other consideration that will
331-be established in the written contract with the insured.
332-(b) The direct or indirect financial interests that a public
333-adjuster must disclose to an insured under subsection (a) includes
334-any ownership by the public adjuster of, or any compensation that
335-HEA 1329 — CC 1 9
336-the public adjuster can expect to be received from, any:
337-(1) construction firm;
338-(2) salvage firm;
339-(3) lawyer or law firm;
340-(4) building appraisal firm; or
341-(5) board up company;
342-or any other firm that provides estimates for work, or performs
343-any work in conjunction with the insured loss to which the contract
344-between the public adjuster and the insured applies.
345-SECTION 8. IC 27-1-27-13 IS ADDED TO THE INDIANA CODE
346-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
347-1, 2023]: Sec. 13. (a) A public adjuster shall not provide services,
348-other than emergency services, to an insured until:
349-(1) a written contract between the public adjuster and the
350-insured has been executed; and
351-(2) an exact copy of the contract has been provided to:
352-(A) the insurer with which the insured has filed or intends
353-to file a claim; or
354-(B) a representative of the insurer described in clause (A)
355-who is authorized to receive a notice of loss or damage on
356-the insurer's behalf.
357-(b) A contract between a public adjuster and an insured:
358-(1) must be in writing; and
359-(2) must be prepared on a form filed with and approved by
360-the insurance commissioner; and
361-(3) must be executed in duplicate.
362-(c) One (1) original form of a contract executed under
363-subsection (b)(3) must be provided to the insured and one (1)
364-original form of the contract may be retained by the public
365-adjuster.
366-(d) A public adjuster may use electronic mail to provide the
367-exact copy of a contract to an insurer under subsection (a)(2).
368-(e) The original contract retained by the public adjuster under
369-subsection (c) must be available at all times, without prior notice,
370-for inspection by the insurance commissioner.
371-SECTION 9. IC 27-1-27-14 IS ADDED TO THE INDIANA CODE
372-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
373-1, 2023]: Sec. 14. (a) Before an insured enters into a contract with
374-a public adjuster, the public adjuster shall provide to the insured
375-a separate signed and dated disclosure document that states the
376-following:
377-"Property insurance policies obligate the insured to
378-HEA 1329 — CC 1 10
379-present a claim to his or her insurer for the insurer's
380-consideration. There are three (3) types of adjusters that
381-could be involved in that process. Here are definitions of
382-the three (3) types of adjusters:
383-"Company adjuster" means an insurance adjuster who is
384-an employee of an insurer, who represents the interests of
385-the insurer, and who is paid by the insurer. A company
386-adjuster will not charge the insured a fee.
387-"Independent adjuster" means an insurance adjuster who
388-is hired on a contract basis by an insurer to represent the
389-insurer's interest in the settlement of a claim and who is
390-paid by the insurer. An independent adjuster will not
391-charge the insured a fee.
392-"Public adjuster" means an insurance adjuster who does
393-not work for any insurer. A public adjuster represents the
394-insured to assist in the preparation, presentation, and
395-settlement of the insured's claim. The insured hires a
396-public adjuster by signing a contract under which the
397-insured agrees to pay the public adjuster a fee or
398-commission based on a percentage of the amount paid by
399-the insurer in settlement of the insured's claim or based on
400-some other method of compensation.".
401-SECTION 10. IC 27-1-27-15 IS ADDED TO THE INDIANA
402-CODE AS A NEW SECTION TO READ AS FOLLOWS
403-[EFFECTIVE JULY 1, 2023]: Sec. 15. (a) A contract between a
404-public adjuster and an insured may not contain any of the
405-following:
406-(1) If the public adjuster is to receive as compensation a
407-percentage of the total amount paid by the insurer to resolve
408-the insured's claim, a contract term that would:
409-(A) allow the public adjuster to collect a fee when the
410-insurer has not yet paid any of the money that is due from
411-the insurer; or
412-(B) allow the public adjuster to collect the public adjuster's
413-entire compensation from the first payment by the insurer
414-if the insurer will pay the total amount to resolve the
415-insured's claim in two (2) or more payments.
416-(2) A contract term that would require the insured to
417-authorize an insurer to issue a check only in the name of the
418-public adjuster.
419-(3) A contract term that would preclude the public adjuster or
420-the insured from pursuing civil remedies.
421-HEA 1329 — CC 1 11
422-(4) A contract term that would preclude the public adjuster's
423-liability to the insured for the public adjuster's negligence.
424-(5) A contract term that would allow the public adjuster to
425-perform the role of roofing contractor, appraiser, or any role
426-other than that of rendering advice or assistance to the
427-insured in the adjustment of a claim.
428-(6) A contract term that would give the public adjuster power
429-of attorney to act in the place of and instead of the insured.
430-SECTION 11. IC 27-1-27-16 IS ADDED TO THE INDIANA
431-CODE AS A NEW SECTION TO READ AS FOLLOWS
432-[EFFECTIVE JULY 1, 2023]: Sec. 16. (a) A public adjuster shall
433-ensure that a contract between the public adjuster and an insured
434-is in writing and contains the following:
435-(1) The legible full name of the public adjuster entering into
436-the contract, as specified in the records of the department.
437-(2) The permanent home state business address, electronic
438-mail address, and phone number of the public adjuster.
439-(3) The number of the certificate of authority issued to the
440-public adjuster under section 3 of this chapter.
441-(4) The title "Public Adjuster Contract" printed prominently
442-at the top of the first page of the contract.
443-(5) The:
444-(A) full name and street address of the insured; and
445-(B) the name of the insurance company by which the
446-insured is covered and the policy number of the policy
447-under which the insured is covered, if known.
448-(6) A description of the loss and the location of the loss, if
449-applicable.
450-(7) A description of services to be provided by the public
451-adjuster to the insured under the contract.
452-(8) The signatures of:
453-(A) the public adjuster or the public adjuster's authorized
454-representative; and
455-(B) the insured.
456-(9) The date and time when the contract was signed by the
457-public adjuster and the date and time when the contract was
458-signed by the insured.
459-(10) Attestation language stating that the public adjuster is
460-fully bonded under Indiana law.
461-(11) A statement of the full salary, fee, commission,
462-compensation, or other consideration the public adjuster is to
463-receive for services to be provided under the contract.
464-HEA 1329 — CC 1 12
465-(b) A contract between the public adjuster and an insured may
466-specify that the public adjuster is to be named as a co-payee on an
467-insurer's payment of a claim.
468-(c) If a public adjuster's compensation under a contract between
469-the public adjuster and an insured is to be based on a share of the
470-total amount paid by the insurer to resolve the insured's claim, the
471-contract must specify the exact percentage of the total amount paid
472-by the insurer that is the public adjuster's share.
473-(d) If, under a contract between a public adjuster and an
474-insured, the public adjuster's expenses are to be reimbursed to the
475-public adjuster from the proceeds of the claim payment, the
476-contract:
477-(1) must specify the public adjuster's expenses that are to be
478-reimbursed, setting forth:
479-(A) each type of expense to be reimbursed; and
480-(B) dollar estimates of the amount to be reimbursed; and
481-(2) must provide that the public adjuster will not be
482-reimbursed for any expenses other than those specified under
483-subdivision (1) unless those expenses are first approved by the
484-insured.
485-(e) The provisions of a contract between a public adjuster and
486-an insured pertaining to the compensation of the public adjuster
487-shall not be redacted in any copy of the contract that is provided to
488-the insurance commissioner.
489-SECTION 12. IC 27-1-27-17 IS ADDED TO THE INDIANA
490-CODE AS A NEW SECTION TO READ AS FOLLOWS
491-[EFFECTIVE JULY 1, 2023]: Sec. 17. The following apply to a
492-contract between an insured and a public adjuster:
493-(1) An insured is not required to hire a public adjuster to help
494-the insured meet the insured's obligations under a policy, but
495-has a right to do so.
496-(2) The public adjuster is not a representative or employee of
497-the insurer.
498-(3) The salary, fee, commission, or other consideration to be
499-paid to the public adjuster is the obligation of the insured, not
500-of the insurer, except when the insured has assigned the
501-insured's rights to the public adjuster.
502-SECTION 13. IC 27-1-27-18 IS ADDED TO THE INDIANA
503-CODE AS A NEW SECTION TO READ AS FOLLOWS
504-[EFFECTIVE JULY 1, 2023]: Sec. 18. (a) This section applies
505-notwithstanding the terms of a written contract between an insured
506-and a public adjuster.
507-HEA 1329 — CC 1 13
508-(b) If the insurer, not more than five (5) business days after the
509-date on which the insured's loss is reported to the insurer, either
510-pays or commits in writing to pay to the insured the policy limit of
511-the insurance policy covering the insured:
512-(1) the public adjuster shall not receive a commission
513-consisting of or based on a percentage of the total amount
514-paid by the insurer to resolve the claim of the insured;
515-(2) the public adjuster shall inform the insured that the loss
516-recovery amount might not be increased by the insurer; and
517-(3) the public adjuster is entitled only to reasonable
518-compensation from the insured for services provided by the
519-public adjuster on behalf of the insured, based on:
520-(A) the time spent by the public adjuster on the claim; and
521-(B) the expenses incurred by the public adjuster before the
522-claim is paid or the insured receives a written commitment
523-from the insurer to pay the claim.
524-SECTION 14. IC 27-1-27-19 IS ADDED TO THE INDIANA
525-CODE AS A NEW SECTION TO READ AS FOLLOWS
526-[EFFECTIVE JULY 1, 2023]: Sec. 19. (a) A contract between a
527-public adjuster and an insured is voidable at the option of the
528-insured at any time not more than three (3) business days after the
529-day on which the insurer is provided a copy of the contract under
530-section 13(a)(2) of this chapter.
531-(b) An insured may void a contract with a public adjuster by
532-notifying the public adjuster in writing of the insured's decision to
533-void the contract. The written notification must be transmitted to
534-the public adjuster by:
535-(1) registered or certified mail, return receipt requested, sent
536-to the address of the public adjuster shown on the contract;
537-(2) personally serving the notice on the public adjuster; or
538-(3) sending an electronic mail to the public adjuster at the
539-electronic mail address shown on the contract.
540-(c) If the insured exercises the right to void the contract under
541-this section, the public adjuster shall return to the insured anything
542-of value that the insured gave to the public adjuster under the
543-contract before the voiding of the contract. The public adjuster
544-shall return things of value to the insured under this section not
545-more than fifteen (15) business days after the day on which the
546-public adjuster receives notice under subsection (b) of the insured's
547-decision to void the contract.
548-SECTION 15. IC 27-1-27-20 IS ADDED TO THE INDIANA
549-CODE AS A NEW SECTION TO READ AS FOLLOWS
550-HEA 1329 — CC 1 14
551-[EFFECTIVE JULY 1, 2023]: Sec. 20. (a) An insured may rescind a
552-contract between the insured and a public adjuster at any time not
553-more than three (3) business days after the day on which the
554-insured submits to the insurer the claim to which the contract
555-relates.
556-(b) An insured may rescind a contract with a public adjuster by
557-notifying the public adjuster in writing of the insured's decision to
558-rescind the contract. The written notification must be transmitted
559-to the adjuster by:
560-(1) registered or certified mail, return receipt requested, sent
561-to the address of the public adjuster shown on the contract;
562-(2) personally serving the notice on the public adjuster; or
563-(3) sending an electronic mail to the public adjuster at the
564-electronic mail address shown on the contract.
565-(c) If the insured exercises the right to rescind a contract under
566-this section, the public adjuster shall return to the insured anything
567-of value that the insured gave to the public adjuster under the
568-contract before the recission of the contract. The public adjuster
569-shall return things of value to the insured under this section not
570-more than fifteen (15) business days after the day on which the
571-public adjuster receives notice under subsection (b) of the insured's
572-decision to rescind the contract.
573-SECTION 16. IC 27-1-34-8.5 IS ADDED TO THE INDIANA
574-CODE AS A NEW SECTION TO READ AS FOLLOWS
575-[EFFECTIVE JULY 1, 2023]: Sec. 8.5. (a) This section applies:
576-(1) only to an arrangement that provides benefits for a public
577-entity; and
578-(2) only with respect to the benefits provided by the
579-arrangement to a public entity.
580-(b) A policy of stop loss insurance issued by a reinsurer to an
581-arrangement providing benefits under this chapter must cover
582-claims submitted within:
583-(1) the timely filing limit of the policy; and
584-(2) the policy provisions of the stop loss coverage.
585-(c) The department may not adopt or enforce any rule that
586-would reduce the timely filing limit specified in the policy and the
587-policy provisions of the stop loss coverage.
588-SECTION 17. IC 27-1-45.5-3, AS ADDED BY P.L.117-2021,
125+1 SECTION 1. IC 27-1-15.7-2, AS AMENDED BY P.L.165-2022,
126+2 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
127+3 JULY 1, 2023]: Sec. 2. (a) Except as provided in subsection (b) and
128+4 section 2.4 of this chapter, to renew a license issued under
129+5 IC 27-1-15.6, a resident insurance producer must complete at least
130+6 twenty-four (24) hours of credit in continuing education courses, not
131+7 more than four (4) hours of which may be in courses concerning one
132+8 (1) or a combination of the following:
133+9 (1) Sales promotion.
134+10 (2) Sales technique.
135+11 (3) Motivation.
136+12 (4) Psychology.
137+13 (5) Time management.
138+14 If the insurance producer has a qualification described in
139+15 IC 27-1-15.6-7(a)(1), IC 27-1-15.6-7(a)(2), or IC 27-1-15.6-7(a)(5), for
140+EH 1329—LS 7406/DI 55 2
141+1 a license renewal that occurs after June 30, 2014, at least three (3) of
142+2 the hours of credit required by this subsection must be related to ethical
143+3 practices in the marketing and sale of life, health, or annuity insurance
144+4 products. An attorney in good standing who is admitted to the practice
145+5 of law in Indiana and holds a license issued under IC 27-1-15.6 may
146+6 complete all or any number of hours of continuing education required
147+7 by this subsection by completing an equivalent number of hours in
148+8 continuing legal education courses that are related to the business of
149+9 insurance.
150+10 (b) Except as provided in subsection (c), to renew a license issued
151+11 under IC 27-1-15.6, a limited lines producer with a title qualification
152+12 under IC 27-1-15.6-7(a)(8) must complete at least seven (7) hours of
153+13 credit in continuing education courses related to the business of title
154+14 insurance, in a structured setting or comparable self-study, in any of the
155+15 following or any combination of the following:
156+16 (1) Ethical practices in the marketing and selling of title
157+17 insurance, including provisions of the Dodd-Frank Wall Street
158+18 Reform and Consumer Protection Act set forth in 12 U.S.C. 2608.
159+19 (2) Title insurance underwriting.
160+20 (3) Escrow matters.
161+21 (4) Matters concerning regulation by the department.
162+22 (5) Any other topic related to the marketing and selling of title
163+23 insurance.
164+24 An attorney in good standing who is admitted to the practice of law in
165+25 Indiana and holds a license issued under IC 27-1-15.6 with a title
166+26 qualification under IC 27-1-15.6-7(a)(8) may complete all or any
167+27 number of hours of continuing education required by this subsection by
168+28 completing an equivalent number of hours in continuing legal
169+29 education courses related to the business of title insurance or any
170+30 aspect of real property law.
171+31 (c) The following insurance producers are not required to complete
172+32 continuing education courses to renew a license under this chapter:
173+33 (1) A limited lines producer who is licensed without examination
174+34 under IC 27-1-15.6-18(1).
175+35 (2) A limited line credit insurance producer.
176+36 (3) A nonresident limited lines producer with a title qualification:
177+37 (A) whose home state requires continuing education for a title
178+38 qualification; and
179+39 (B) who has met the continuing education requirements
180+40 described in clause (A).
181+41 (d) Except as provided in section 2.2 of this chapter, to satisfy the
182+42 requirements of subsection (a) or (b), a licensee may use only those
183+EH 1329—LS 7406/DI 55 3
184+1 credit hours earned in continuing education courses completed by the
185+2 licensee:
186+3 (1) after the effective date of the licensee's last renewal of a
187+4 license under this chapter; or
188+5 (2) if the licensee is renewing a license for the first time, after the
189+6 date on which the licensee was issued the license under this
190+7 chapter.
191+8 (e) If an insurance producer receives qualification for a license in
192+9 more than one (1) line of authority under IC 27-1-15.6, the insurance
193+10 producer may not be required to complete a total of more than
194+11 twenty-four (24) hours of credit in continuing education courses to
195+12 renew the license.
196+13 (f) Except as provided in subsection (g), a licensee may receive
197+14 credit only for completing the following continuing education courses:
198+15 (1) Continuing education courses that have been approved by the
199+16 commissioner under section 4 of this chapter.
200+17 (2) Continuing education courses that are required for the licensee
201+18 under IC 27-19-4-14.
202+19 (g) A licensee who teaches a course approved by the commissioner
203+20 under section 4 of this chapter shall receive continuing education credit
204+21 for teaching the course.
205+22 (h) When a licensee renews a license issued under this chapter, the
206+23 licensee must submit:
207+24 (1) a continuing education statement that:
208+25 (A) is in a format authorized by the commissioner;
209+26 (B) is signed by the licensee under oath; and
210+27 (C) lists the continuing education courses completed by the
211+28 licensee to satisfy the continuing education requirements of
212+29 this section; and
213+30 (2) any other information required by the commissioner.
214+31 (i) A continuing education statement submitted under subsection (h)
215+32 may be reviewed and audited by the department.
216+33 (j) A licensee shall retain a copy of the original certificate of
217+34 completion received by the licensee for completion of a continuing
218+35 education course.
219+36 (k) A licensee who completes a continuing education course that:
220+37 (1) is approved by the commissioner under section 4 of this
221+38 chapter;
222+39 (2) is held in a classroom setting; and
223+40 (3) concerns ethics;
224+41 shall receive continuing education credit not to exceed four (4) hours
225+42 in a renewal period.
226+EH 1329—LS 7406/DI 55 4
227+1 SECTION 2. IC 27-1-15.7-2.4 IS ADDED TO THE INDIANA
228+2 CODE AS A NEW SECTION TO READ AS FOLLOWS
229+3 [EFFECTIVE JULY 1, 2023]: Sec. 2.4. (a) This section applies to an
230+4 insurance producer licensed under IC 27-1-15.6 who is subject to
231+5 the continuing education requirement set forth in section 2(a) of
232+6 this chapter.
233+7 (b) If an insurance producer actively participates in a state or
234+8 national professional insurance organization, the insurance
235+9 commissioner may:
236+10 (1) recognize the insurance producer's participation in the
237+11 professional insurance organization; and
238+12 (2) apply the insurance producer's participation toward
239+13 partial satisfaction of the continuing education requirement
240+14 set forth in section 2(a) of this chapter.
241+15 (c) To be recognized and applied under subsection (b), an
242+16 insurance producer's participation in a professional insurance
243+17 organization must be one of the following:
244+18 (1) Service on the board of directors of:
245+19 (A) a state professional insurance organization;
246+20 (B) a state chapter of a national professional insurance
247+21 organization; or
248+22 (C) a national professional insurance organization.
249+23 (2) Service on a formal committee of:
250+24 (A) a state professional insurance organization;
251+25 (B) a state chapter of a national professional insurance
252+26 organization; or
253+27 (C) a national professional insurance organization.
254+28 (3) Service on a formal subcommittee or task force of:
255+29 (A) a state professional insurance organization;
256+30 (B) a state chapter of a national professional insurance
257+31 organization; or
258+32 (C) a national professional insurance organization.
259+33 (d) Not more than two (2) of the twenty-four (24) total hours of
260+34 credit in continuing education courses required of an insurance
261+35 producer by section 2(a) of this chapter may be satisfied under this
262+36 section in each two (2) year licensing period.
263+37 (e) If an insurance producer's participation in a professional
264+38 insurance organization is recognized and applied under subsection
265+39 (b), one (1) hour of the insurance producer's participation in the
266+40 professional insurance organization shall count toward satisfaction
267+41 of one (1) hour of the twenty-four (24) total hours of credit in
268+42 continuing education courses required by section 2(a) of this
269+EH 1329—LS 7406/DI 55 5
270+1 chapter, subject to the limit set forth in subsection (d).
271+2 (f) An insurance producer's participation in a professional
272+3 insurance organization may not be applied under this section
273+4 toward the satisfaction of the requirement under section 2(a) of
274+5 this chapter, if applicable, that an insurance producer complete at
275+6 least three (3) hours of credit in continuing education courses
276+7 related to ethical practices in the marketing and sale of life, health,
277+8 or annuity insurance products in each two (2) year licensing
278+9 period.
279+10 (g) To be recognized and applied under subsection (b) toward
280+11 satisfaction of an insurance producer's continuing education
281+12 requirements under section 2(a) of this chapter for a two (2) year
282+13 licensing period, the insurance producer's participation in a
283+14 professional insurance organization must:
284+15 (1) occur during that two (2) year licensing period; and
285+16 (2) be verified by the professional insurance organization in
286+17 a communication submitted to the insurance commissioner
287+18 before the deadline (if any) established by the rules adopted
288+19 under subsection (h).
289+20 (h) The insurance commissioner may adopt rules under
290+21 IC 4-22-2 to administer this section.
291+22 SECTION 3. IC 27-1-27-1 IS AMENDED TO READ AS
292+23 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 1. (a) The definitions
293+24 set forth in this section apply throughout this chapter.
294+25 (b) "Contract" refers to a contract between a public adjuster
295+26 and an insured under which:
296+27 (1) the public adjuster agrees to provide services for the
297+28 insured in the adjustment of an insurance claim; and
298+29 (2) the insured agrees to compensate the public adjuster for
299+30 those services.
300+31 (c) "Firm" includes any corporation, partnership, association,
301+32 joint stock company, or individual.
302+33 (d) "Independent adjuster" has the meaning set forth in
303+34 IC 27-1-28-6.
304+35 (e) "Insured" means a person covered by an insurance policy.
305+36 (f) "Person" means an individual, a corporation, a limited
306+37 liability company, a partnership, or any other legal entity.
307+38 (a) (g) The term "Public adjuster" shall include includes the
308+39 following:
309+40 (1) every individual or corporation who, or which, A person that,
310+41 for compensation or reward, renders advice or assistance to the an
311+42 insured in the adjustment of a claim or claims for loss or damages
312+EH 1329—LS 7406/DI 55 6
313+1 under any policy of insurance covering real or personal property.
314+2 and
315+3 (2) any A person or corporation who, or which, that advertises,
316+4 solicits business, or holds itself out to the public as an adjuster of
317+5 such claims described in subdivision (1).
318+6 However, no public adjuster shall:
319+7 (1) act in any manner in relation to claims for personal injury or
320+8 automobile property damage; or
321+9 (2) bind the insured in the settlement of claims.
322+10 (b) (h) This chapter does not apply to, and the following are not
323+11 included in The term "public adjuster" does not include the following:
324+12 (1) An attorney at law admitted to practice in the state of Indiana
325+13 who adjusts insurance losses in the course of the practice of the
326+14 attorney's profession.
327+15 (2) An officer, regular salaried employee, or other representative
328+16 of:
329+17 (A) an insurer; or of
330+18 (B) an attorney in fact of any reciprocal insurer of or Lloyd's
331+19 underwriter licensed to do business in Indiana;
332+20 who adjusts losses arising under an employer's or principal's own
333+21 policies.
334+22 (3) An adjustment bureau or association owned and maintained
335+23 by insurers to adjust or investigate losses of such the insurers, or
336+24 any regular salaried employee who devotes substantially all the
337+25 employee's time to the business of such an adjustment bureau or
338+26 association described in this subdivision.
339+27 (4) Any of the following:
340+28 (A) A licensed insurance producer. or
341+29 (B) An authorized insurer. or
342+30 (C) An officer or employee of the same an authorized
343+31 insurer who adjusts losses for such the insurer. and any
344+32 (D) An insurance producer or representative of a farm mutual
345+33 insurance company operating under the farm mutual insurance
346+34 laws of this state IC 27-5.1. on behalf of an insurer.
347+35 (5) Any independent adjuster representing an insurer.
348+36 SECTION 4. IC 27-1-27-1.5 IS ADDED TO THE INDIANA CODE
349+37 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
350+38 1, 2023]: Sec. 1.5. A public adjuster shall not:
351+39 (1) file an insurance claim with:
352+40 (A) an insurer; or
353+41 (B) an agent, employee, or representative of an insurer;
354+42 on behalf of an insured person;
355+EH 1329—LS 7406/DI 55 7
356+1 (2) act in any manner in relation to claims for personal injury
357+2 or automobile liability;
358+3 (3) bind the insured in the settlement of claims; or
359+4 (4) perform:
360+5 (A) the role of a roofing contractor;
361+6 (B) the role of an appraiser; or
362+7 (C) any other role;
363+8 with respect to the subject of a claim at the same time that the
364+9 public adjuster is providing advice or assistance to an insured
365+10 in the adjustment of the claim.
366+11 SECTION 5. IC 27-1-27-2 IS AMENDED TO READ AS
367+12 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 2. (a) No individual or
368+13 corporation shall act within Indiana as a public adjuster, or receive,
369+14 directly or indirectly, compensation or reward for services rendered in
370+15 the adjustment of any claim or claims under the types of insurance
371+16 policies set forth in section 1(a) 1(g) of this chapter, unless he, the
372+17 individual, or it, is the holder of a certificate of authority to act as such
373+18 public adjuster issued by the commissioner of insurance of the state of
374+19 Indiana pursuant to this chapter.
375+20 (b) Any individual or corporation who, or which, shall have received
376+21 from the commissioner of insurance a public adjuster's certificate of
377+22 authority shall be styled and be known as a "Certified Public Adjuster".
378+23 SECTION 6. IC 27-1-27-7.1, AS ADDED BY P.L.146-2015,
379+24 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
380+25 JULY 1, 2023]: Sec. 7.1. (a) The insurance commissioner:
381+26 (1) may:
382+27 (A) suspend;
383+28 (B) revoke; or
384+29 (C) refuse to issue or renew;
385+30 a public adjuster's certificate of authority; to act as a public
386+31 adjuster in Indiana, or
387+32 (2) may place a public adjuster on probation;
388+33 for a cause set forth in subsection (b).
389+34 (b) A public adjuster is subject to the penalties set forth in
390+35 subsection (a) for any of the following:
391+36 (1) Providing incorrect, misleading, incomplete, or materially
392+37 untrue information in an application for a certificate of authority.
393+38 (2) Violating an insurance law, a subpoena, or an order of the
394+39 commissioner or another state's insurance commissioner.
395+40 (3) Obtaining or attempting to obtain a certificate of authority
396+41 through misrepresentation or fraud.
397+42 (4) Improperly withholding, misappropriating, or converting
398+EH 1329—LS 7406/DI 55 8
399+1 money or property received in the course of doing insurance
400+2 business.
401+3 (5) Intentionally misrepresenting the terms of an actual or
402+4 proposed insurance contract or application for insurance.
403+5 (6) Having been convicted of a felony.
404+6 (7) Having admitted or been found to have committed any unfair
405+7 trade practice or fraud in the business of insurance.
406+8 (8) Using fraudulent, coercive, or dishonest practices, or
407+9 demonstrating incompetence, untrustworthiness, or financial
408+10 irresponsibility, in the conduct of insurance business.
409+11 (9) Having an insurance license, or the equivalent of an insurance
410+12 license, probated, suspended, revoked, or refused in another state,
411+13 province, district, or territory.
412+14 (10) Forging another person's name to a document related to an
413+15 insurance transaction.
414+16 (11) Cheating, including improperly using notes or any other
415+17 reference material, to complete an examination for an insurance
416+18 license.
417+19 (12) Failing to comply with an administrative or court order
418+20 imposing a child support obligation.
419+21 (13) Failing to pay state income tax or failing to comply with an
420+22 administrative or court order directing payment of state income
421+23 tax.
422+24 (14) Committing a violation of section 1.5, sections 12 through
423+25 17, section 19, or section 20 of this chapter.
424+26 (c) If the commissioner refuses an application for a certificate of
425+27 authority to act as a public adjuster or for the renewal of an existing
426+28 certificate of authority under this chapter, the commissioner shall notify
427+29 the applicant or certificate holder in writing, advising of the reason for
428+30 the refusal. The applicant or certificate holder may, not more than thirty
429+31 (30) days after receiving the commissioner's notice of refusal, make
430+32 written demand upon the commissioner for a hearing to determine the
431+33 reasonableness of the refusal. The hearing must be held under
432+34 IC 4-21.5 not more than twenty (20) days after the commissioner
433+35 receives the applicant's or certificate holder's written demand.
434+36 SECTION 7. IC 27-1-27-12 IS ADDED TO THE INDIANA CODE
435+37 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
436+38 1, 2023]: Sec. 12. (a) Before entering into a contract with an
437+39 insured, a public adjuster shall provide to the insured a written
438+40 disclosure concerning any direct or indirect financial interest that
439+41 the public adjuster has with any other party that is or will be
440+42 involved in any aspect of the insured's claim, other than by
441+EH 1329—LS 7406/DI 55 9
442+1 receiving a salary, fee, commission, or other consideration that will
443+2 be established in the written contract with the insured.
444+3 (b) The direct or indirect financial interests that a public
445+4 adjuster must disclose to an insured under subsection (a) includes
446+5 any ownership by the public adjuster of, or any compensation that
447+6 the public adjuster can expect to be received from, any:
448+7 (1) construction firm;
449+8 (2) salvage firm;
450+9 (3) lawyer or law firm;
451+10 (4) building appraisal firm; or
452+11 (5) board up company;
453+12 or any other firm that provides estimates for work, or performs
454+13 any work in conjunction with the insured loss to which the contract
455+14 between the public adjuster and the insured applies.
456+15 SECTION 8. IC 27-1-27-13 IS ADDED TO THE INDIANA CODE
457+16 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
458+17 1, 2023]: Sec. 13. (a) A public adjuster shall not provide services,
459+18 other than emergency services, to an insured until:
460+19 (1) a written contract between the public adjuster and the
461+20 insured has been executed; and
462+21 (2) an exact copy of the contract has been provided to:
463+22 (A) the insurer with which the insured has filed or intends
464+23 to file a claim; or
465+24 (B) a representative of the insurer described in clause (A)
466+25 who is authorized to receive a notice of loss or damage on
467+26 the insurer's behalf.
468+27 (b) A contract between a public adjuster and an insured:
469+28 (1) must be in writing; and
470+29 (2) must be prepared on a form filed with and approved by
471+30 the insurance commissioner; and
472+31 (3) must be executed in duplicate.
473+32 (c) One (1) original form of a contract executed under
474+33 subsection (b)(3) must be provided to the insured and one (1)
475+34 original form of the contract may be retained by the public
476+35 adjuster.
477+36 (d) A public adjuster may use electronic mail to provide the
478+37 exact copy of a contract to an insurer under subsection (a)(2).
479+38 (e) The original contract retained by the public adjuster under
480+39 subsection (c) must be available at all times, without prior notice,
481+40 for inspection by the insurance commissioner.
482+41 SECTION 9. IC 27-1-27-14 IS ADDED TO THE INDIANA CODE
483+42 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
484+EH 1329—LS 7406/DI 55 10
485+1 1, 2023]: Sec. 14. (a) Before an insured enters into a contract with
486+2 a public adjuster, the public adjuster shall provide to the insured
487+3 a separate signed and dated disclosure document that states the
488+4 following:
489+5 "Property insurance policies obligate the insured to
490+6 present a claim to his or her insurer for the insurer's
491+7 consideration. There are three (3) types of adjusters that
492+8 could be involved in that process. Here are definitions of
493+9 the three (3) types of adjusters:
494+10 "Company adjuster" means an insurance adjuster who is
495+11 an employee of an insurer, who represents the interests of
496+12 the insurer, and who is paid by the insurer. A company
497+13 adjuster will not charge the insured a fee.
498+14 "Independent adjuster" means an insurance adjuster who
499+15 is hired on a contract basis by an insurer to represent the
500+16 insurer's interest in the settlement of a claim and who is
501+17 paid by the insurer. An independent adjuster will not
502+18 charge the insured a fee.
503+19 "Public adjuster" means an insurance adjuster who does
504+20 not work for any insurer. A public adjuster represents the
505+21 insured to assist in the preparation, presentation, and
506+22 settlement of the insured's claim. The insured hires a
507+23 public adjuster by signing a contract under which the
508+24 insured agrees to pay the public adjuster a fee or
509+25 commission based on a percentage of the amount paid by
510+26 the insurer in settlement of the insured's claim or based on
511+27 some other method of compensation.".
512+28 SECTION 10. IC 27-1-27-15 IS ADDED TO THE INDIANA
513+29 CODE AS A NEW SECTION TO READ AS FOLLOWS
514+30 [EFFECTIVE JULY 1, 2023]: Sec. 15. (a) A contract between a
515+31 public adjuster and an insured may not contain any of the
516+32 following:
517+33 (1) If the public adjuster is to receive as compensation a
518+34 percentage of the total amount paid by the insurer to resolve
519+35 the insured's claim, a contract term that would:
520+36 (A) allow the public adjuster to collect a fee when the
521+37 insurer has not yet paid any of the money that is due from
522+38 the insurer; or
523+39 (B) allow the public adjuster to collect the public adjuster's
524+40 entire compensation from the first payment by the insurer
525+41 if the insurer will pay the total amount to resolve the
526+42 insured's claim in two (2) or more payments.
527+EH 1329—LS 7406/DI 55 11
528+1 (2) A contract term that would require the insured to
529+2 authorize an insurer to issue a check only in the name of the
530+3 public adjuster.
531+4 (3) A contract term that would preclude the public adjuster or
532+5 the insured from pursuing civil remedies.
533+6 (4) A contract term that would preclude the public adjuster's
534+7 liability to the insured for the public adjuster's negligence.
535+8 (5) A contract term that would allow the public adjuster to
536+9 perform the role of roofing contractor, appraiser, or any role
537+10 other than that of rendering advice or assistance to the
538+11 insured in the adjustment of a claim.
539+12 (6) A contract term that would give the public adjuster power
540+13 of attorney to act in the place of and instead of the insured.
541+14 SECTION 11. IC 27-1-27-16 IS ADDED TO THE INDIANA
542+15 CODE AS A NEW SECTION TO READ AS FOLLOWS
543+16 [EFFECTIVE JULY 1, 2023]: Sec. 16. (a) A public adjuster shall
544+17 ensure that a contract between the public adjuster and an insured
545+18 is in writing and contains the following:
546+19 (1) The legible full name of the public adjuster entering into
547+20 the contract, as specified in the records of the department.
548+21 (2) The permanent home state business address, electronic
549+22 mail address, and phone number of the public adjuster.
550+23 (3) The number of the certificate of authority issued to the
551+24 public adjuster under section 3 of this chapter.
552+25 (4) The title "Public Adjuster Contract" printed prominently
553+26 at the top of the first page of the contract.
554+27 (5) The:
555+28 (A) full name and street address of the insured; and
556+29 (B) the name of the insurance company by which the
557+30 insured is covered and the policy number of the policy
558+31 under which the insured is covered, if known.
559+32 (6) A description of the loss and the location of the loss, if
560+33 applicable.
561+34 (7) A description of services to be provided by the public
562+35 adjuster to the insured under the contract.
563+36 (8) The signatures of:
564+37 (A) the public adjuster or the public adjuster's authorized
565+38 representative; and
566+39 (B) the insured.
567+40 (9) The date and time when the contract was signed by the
568+41 public adjuster and the date and time when the contract was
569+42 signed by the insured.
570+EH 1329—LS 7406/DI 55 12
571+1 (10) Attestation language stating that the public adjuster is
572+2 fully bonded under Indiana law.
573+3 (11) A statement of the full salary, fee, commission,
574+4 compensation, or other consideration the public adjuster is to
575+5 receive for services to be provided under the contract.
576+6 (b) A contract between the public adjuster and an insured may
577+7 specify that the public adjuster is to be named as a co-payee on an
578+8 insurer's payment of a claim.
579+9 (c) If a public adjuster's compensation under a contract between
580+10 the public adjuster and an insured is to be based on a share of the
581+11 total amount paid by the insurer to resolve the insured's claim, the
582+12 contract must specify the exact percentage of the total amount paid
583+13 by the insurer that is the public adjuster's share.
584+14 (d) If, under a contract between a public adjuster and an
585+15 insured, the public adjuster's expenses are to be reimbursed to the
586+16 public adjuster from the proceeds of the claim payment, the
587+17 contract:
588+18 (1) must specify the public adjuster's expenses that are to be
589+19 reimbursed, setting forth:
590+20 (A) each type of expense to be reimbursed; and
591+21 (B) dollar estimates of the amount to be reimbursed; and
592+22 (2) must provide that the public adjuster will not be
593+23 reimbursed for any expenses other than those specified under
594+24 subdivision (1) unless those expenses are first approved by the
595+25 insured.
596+26 (e) The provisions of a contract between a public adjuster and
597+27 an insured pertaining to the compensation of the public adjuster
598+28 shall not be redacted in any copy of the contract that is provided to
599+29 the insurance commissioner.
600+30 SECTION 12. IC 27-1-27-17 IS ADDED TO THE INDIANA
601+31 CODE AS A NEW SECTION TO READ AS FOLLOWS
602+32 [EFFECTIVE JULY 1, 2023]: Sec. 17. The following apply to a
603+33 contract between an insured and a public adjuster:
604+34 (1) An insured is not required to hire a public adjuster to help
605+35 the insured meet the insured's obligations under a policy, but
606+36 has a right to do so.
607+37 (2) The public adjuster is not a representative or employee of
608+38 the insurer.
609+39 (3) The salary, fee, commission, or other consideration to be
610+40 paid to the public adjuster is the obligation of the insured, not
611+41 of the insurer, except when the insured has assigned the
612+42 insured's rights to the public adjuster.
613+EH 1329—LS 7406/DI 55 13
614+1 SECTION 13. IC 27-1-27-18 IS ADDED TO THE INDIANA
615+2 CODE AS A NEW SECTION TO READ AS FOLLOWS
616+3 [EFFECTIVE JULY 1, 2023]: Sec. 17. (a) This section applies
617+4 notwithstanding the terms of a written contract between an insured
618+5 and a public adjuster.
619+6 (b) If the insurer, not more than five (5) business days after the
620+7 date on which the insured's loss is reported to the insurer, either
621+8 pays or commits in writing to pay to the insured the policy limit of
622+9 the insurance policy covering the insured:
623+10 (1) the public adjuster shall not receive a commission
624+11 consisting of or based on a percentage of the total amount
625+12 paid by the insurer to resolve the claim of the insured;
626+13 (2) the public adjuster shall inform the insured that the loss
627+14 recovery amount might not be increased by the insurer; and
628+15 (3) the public adjuster is entitled only to reasonable
629+16 compensation from the insured for services provided by the
630+17 public adjuster on behalf of the insured, based on:
631+18 (A) the time spent by the public adjuster on the claim; and
632+19 (B) the expenses incurred by the public adjuster before the
633+20 claim is paid or the insured receives a written commitment
634+21 from the insurer to pay the claim.
635+22 SECTION 14. IC 27-1-27-19 IS ADDED TO THE INDIANA
636+23 CODE AS A NEW SECTION TO READ AS FOLLOWS
637+24 [EFFECTIVE JULY 1, 2023]: Sec. 19. (a) A contract between a
638+25 public adjuster and an insured is voidable at the option of the
639+26 insured at any time not more than three (3) business days after the
640+27 day on which the insurer is provided a copy of the contract under
641+28 section 13(a)(2) of this chapter.
642+29 (b) An insured may void a contract with a public adjuster by
643+30 notifying the public adjuster in writing of the insured's decision to
644+31 void the contract. The written notification must be transmitted to
645+32 the public adjuster by:
646+33 (1) registered or certified mail, return receipt requested, sent
647+34 to the address of the public adjuster shown on the contract;
648+35 (2) personally serving the notice on the public adjuster; or
649+36 (3) sending an electronic mail to the public adjuster at the
650+37 electronic mail address shown on the contract.
651+38 (c) If the insured exercises the right to void the contract under
652+39 this section, the public adjuster shall return to the insured anything
653+40 of value that the insured gave to the public adjuster under the
654+41 contract before the voiding of the contract. The public adjuster
655+42 shall return things of value to the insured under this section not
656+EH 1329—LS 7406/DI 55 14
657+1 more than fifteen (15) business days after the day on which the
658+2 public adjuster receives notice under subsection (b) of the insured's
659+3 decision to void the contract.
660+4 SECTION 15. IC 27-1-27-20 IS ADDED TO THE INDIANA
661+5 CODE AS A NEW SECTION TO READ AS FOLLOWS
662+6 [EFFECTIVE JULY 1, 2023]: Sec. 20. (a) An insured may rescind a
663+7 contract between the insured and a public adjuster at any time not
664+8 more than three (3) business days after the day on which the
665+9 insured submits to the insurer the claim to which the contract
666+10 relates.
667+11 (b) An insured may rescind a contract with a public adjuster by
668+12 notifying the public adjuster in writing of the insured's decision to
669+13 rescind the contract. The written notification must be transmitted
670+14 to the adjuster by:
671+15 (1) registered or certified mail, return receipt requested, sent
672+16 to the address of the public adjuster shown on the contract;
673+17 (2) personally serving the notice on the public adjuster; or
674+18 (3) sending an electronic mail to the public adjuster at the
675+19 electronic mail address shown on the contract.
676+20 (c) If the insured exercises the right to rescind a contract under
677+21 this section, the public adjuster shall return to the insured anything
678+22 of value that the insured gave to the public adjuster under the
679+23 contract before the recission of the contract. The public adjuster
680+24 shall return things of value to the insured under this section not
681+25 more than fifteen (15) business days after the day on which the
682+26 public adjuster receives notice under subsection (b) of the insured's
683+27 decision to rescind the contract.
684+28 SECTION 16. IC 27-1-45.5-3, AS ADDED BY P.L.117-2021,
685+29 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
686+30 JULY 1, 2023]: Sec. 3. (a) Before December 31, 2026, IPEP shall
687+31 apply to the insurance commissioner for a certificate of authority to
688+32 transact the business of insurance in Indiana as a domestic tax exempt
689+33 reciprocal insurance company.
690+34 (b) The bylaws or articles of incorporation prepared by IPEP for
691+35 purposes of IPEP's conversion to a domestic tax exempt reciprocal
692+36 insurance company must require that the board of the domestic tax
693+37 exempt reciprocal insurance company be made up of at least seven (7)
694+38 individuals.
695+39 (c) IPEP, in converting to a domestic tax exempt reciprocal
696+40 insurance company, must meet the requirements and conditions for the
697+41 formation of a domestic tax exempt reciprocal insurance company set
698+42 forth in IC 27-1-6, including an examination under IC 27-1-6-17.
699+EH 1329—LS 7406/DI 55 15
700+1 SECTION 17. IC 27-1-47-2, AS ADDED BY P.L.196-2021,
701+2 SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
702+3 JULY 1, 2023]: Sec. 2. (a) An insurer, by or through its employees,
703+4 affiliates, insurance producers, or third-party representatives, or an
704+5 insurance producer acting on the insurance producer's own behalf, may
705+6 offer or provide, for free or at a discounted price, value-added
706+7 products or services:
707+8 (1) that relate to or are provided in conjunction with a policy of
708+9 insurance; and
709+10 (2) that:
710+11 (A) are primarily intended to:
711+12 (i) educate about;
712+13 (ii) assess;
713+14 (iii) monitor;
714+15 (iv) mitigate;
715+16 (v) reduce;
716+17 (iv) (vi) control; or
717+18 (v) (vii) prevent;
718+19 risk, severity, or frequency of loss to persons or to persons'
719+20 lives, health, or property; or
720+21 (B) are primarily designed to enhance the health, financial
721+22 wellness, or safety of persons or of persons' lives, health, or
722+23 property; or
723+24 (B) (C) have a nexus to or enhance the value of the insurance
724+25 benefits of the policy.
725+26 (b) Offering or providing products or services under this section is
726+27 not a violation of IC 27-1-20-30, IC 27-1-22-18, or IC 27-4-1-4(a)(8).
727+28 SECTION 18. IC 27-1-47-3, AS ADDED BY P.L.196-2021,
728+29 SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
729+30 JULY 1, 2023]: Sec. 3. (a) Subject to subsection (b), A person holding
730+31 a license under this title may offer or provide, for free or for less than
731+32 fair market value, value-added products or services that are at least
732+33 tangentially related to an insurance contract or the administration of an
733+34 insurance contract if:
734+35 (1) the value-added products or services:
735+36 (1) (A) are not contingent upon the purchase of insurance;
736+37 offered in a manner that is unfairly discriminatory; and
737+38 (2) (B) are offered on the same terms to all potential insurance
738+39 customers. made available based on documented, objective
739+40 criteria; and
740+41 (2) the documented, objective criteria under which the
741+42 value-added products or services are offered are maintained
742+EH 1329—LS 7406/DI 55 16
743+1 for inspection by the insurance commissioner within thirty
744+2 (30) days after the insurance commissioner's request for
745+3 inspection.
746+4 (b) Before:
747+5 (1) the recipient of services described in subsection (a):
748+6 (A) receives a quote of insurance; or
749+7 (B) purchases insurance; or
750+8 (2) an agent of record is assigned to the recipient of the services;
751+9 the person offering or providing services under subsection (a) must
752+10 disclose conspicuously in writing to the recipient of the services that
753+11 receiving the services is not contingent on the purchase of insurance.
754+12 The products and services that may be offered or provided for free
755+13 or for less than fair market value under subsection (a) include but
756+14 are not limited to the following:
757+15 (1) Loss control, including wellness programs.
758+16 (2) Claim filing assistance.
759+17 (3) Administration of the continuation of health benefits
760+18 requirements of the Consolidated Omnibus Budget
761+19 Reconciliation Act (COBRA).
762+20 (4) Compliance with the requirements of the Health Insurance
763+21 Portability and Accountability Act (HIPAA).
764+22 (5) Risk management or analysis.
765+23 (6) Regulatory and legislative updates.
766+24 (7) Group policy administration.
767+25 (8) Payroll, accounting, and tax services.
768+26 (9) Legal and human resources.
769+27 (10) Referrals to third-party service providers that offer
770+28 discounted rates.
771+29 (c) A value-added product or service that is provided for free or
772+30 for less than fair market value under subsection (a) by:
773+31 (1) an insurer, acting by or through its employee, affiliate,
774+32 insurance producer, or a third-party representative; or
775+33 (2) an insurance producer, acting on the insurance producer's
776+34 own behalf;
777+35 shall be provided along with contact information for the purpose
778+36 of ensuring that the consumer is assisted with questions concerning
779+37 the product or service.
780+38 SECTION 19. IC 27-2-28 IS ADDED TO THE INDIANA CODE
781+39 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
782+40 JULY 1, 2023]:
783+41 Chapter 28. Notice of Material Change
784+42 Sec. 1. (a) This chapter applies to a personal automobile or
785+EH 1329—LS 7406/DI 55 17
786+1 homeowner's policy that is issued, delivered, amended, or renewed
787+2 after June 30, 2024.
788+3 (b) This chapter does not apply to notices required by the
789+4 federal Fair Credit Reporting Act (15 U.S.C. 1681 et seq.).
790+5 Sec. 2. As used in this chapter, "automobile policy" means a
791+6 policy providing one (1) or more of the types of insurance
792+7 described in Class 2(f) of IC 27-1-5-1.
793+8 Sec. 3. As used in this chapter, "homeowner's policy" means a
794+9 policy that provides:
795+10 (1) coverage for:
796+11 (A) damage to or the destruction of:
797+12 (i) a structure; or
798+13 (ii) a unit within a structure;
799+14 that is used as a residence by one (1) or more individuals;
800+15 and
801+16 (B) damage to or the loss of personal property that is
802+17 present in the structure or unit described in clause (A);
803+18 caused by perils such as fire, hail, and lightning; and
804+19 (2) coverage against the civil liability of the policyholder
805+20 arising from bodily injury or property damage incurred by
806+21 others.
807+22 Sec. 4. As used in this chapter, "insured" means an individual
808+23 who is the first named insured on the declarations page of a
809+24 personal automobile or homeowner's policy.
810+25 Sec. 5. As used in this chapter, "insurer" refers to an insurer (as
811+26 defined in IC 27-1-2-3) that issues a personal automobile or
812+27 homeowner's policy.
813+28 Sec. 6. (a) As used in this chapter, "material change" means:
814+29 (1) an increase of more than ten percent (10%) over the
815+30 expiring premium for; or
816+31 (2) another adverse or unfavorable change in the terms of
817+32 coverage or amount of;
818+33 insurance in connection with a personal automobile or
819+34 homeowner's policy.
820+35 (b) The term does not include the following:
821+36 (1) An increase in the insurer's filed rate plan and automatic
822+37 inflationary increases.
823+38 (2) An additional premium due to a change initiated by the
824+39 insured, such as:
825+40 (A) adding or removing vehicles or drivers;
826+41 (B) adding an endorsement;
827+42 (C) adding additional coverages;
828+EH 1329—LS 7406/DI 55 18
829+1 (D) adding covered premises; or
830+2 (E) increasing coverage limits or deductibles.
831+3 (3) An additional premium due to a change in risk exposure
832+4 as a result of the insured's participation in a usage based or
833+5 telematics insurance program.
834+6 (4) Changes resulting from a property inspection.
835+7 Sec. 7. As used in this chapter, "personal automobile or
836+8 homeowner's policy" means:
837+9 (1) an automobile policy; or
838+10 (2) a homeowner's policy;
839+11 that is underwritten on an individual basis for an individual,
840+12 family, or household.
841+13 Sec. 8. (a) An insurer that makes a material change to an
842+14 insured's personal automobile or homeowner's policy shall provide
843+15 a written notice to the insured that:
844+16 (1) explains the principal factors for the material change; or
845+17 (2) states that the insured has a right to request and obtain an
846+18 explanation of the principal factors for the material change.
847+19 (b) An insured who receives a notice of a material change
848+20 described in subsection (a)(2) may submit to the insurer a written
849+21 request for an explanation of the principal factors for the material
850+22 change.
851+23 (c) Upon receiving a request for an explanation under
852+24 subsection (b), the insurer shall provide written notice to the
853+25 insured explaining the principal factors for the material change.
854+26 (d) An insurer shall provide a copy of a written notice provided
855+27 under subsection (a)(1) or (c):
856+28 (1) to the insurance producer, if any, who:
857+29 (A) represented:
858+30 (i) the insured in obtaining coverage from the insurer; or
859+31 (ii) the insurer in regard to the providing of coverage to
860+32 the insured; and
861+33 (B) is not an employee, an exclusive agent, or a captive
862+34 agent of the insurer; and
863+35 (2) to the insurer's reporting portal for agent
864+36 communications.
865+37 (e) A written notice provided under subsection (a) or (c), or a
866+38 written request submitted under subsection (b), must be provided
867+39 by:
868+40 (1) first class mail; or
869+41 (2) electronic delivery as set forth in IC 27-1-43.
870+42 Sec. 9. (a) A written notice provided under section 8(a)(1) or 8(c)
871+EH 1329—LS 7406/DI 55 19
872+1 of this chapter:
873+2 (1) must:
874+3 (A) be sufficiently clear; and
875+4 (B) use language sufficiently specific;
876+5 to enable the insured to identify the basis for the insurer's
877+6 decision to make the material change;
878+7 (2) must include a description of the principal factors most
879+8 heavily weighed by an insurer in making a material change,
880+9 listed in no particular order; and
881+10 (3) may provide a point of contact through which the insured
882+11 may discuss the reasons for the material change.
883+12 (b) A statement that:
884+13 (1) the material change is based on the insurer's internal
885+14 standards, policies, or models;
886+15 (2) the insured failed to achieve a particular score on the
887+16 insurer's scoring system; or
888+17 (3) contains generalized terms, such as "poor credit history",
889+18 "poor credit rating", or "poor insurance score";
890+19 does not meet the requirements set forth in subsection (a).
891+20 (c) This section does not require the disclosure of factors that
892+21 are otherwise disclosed to the insured.
893+22 Sec. 10. The requirements set forth in this chapter:
894+23 (1) do not replace; and
895+24 (2) are in addition to;
896+25 the requirements under IC 27-7-6 and IC 27-7-12.
897+26 Sec. 11. This chapter does not prohibit an insurer from
898+27 voluntarily providing the disclosures required by this chapter.
899+28 Sec. 12. (a) The commissioner shall adopt rules under IC 4-22-2
900+29 to implement this chapter.
901+30 (b) The rules adopted under subsection (a) must include
902+31 monetary penalties for a violation of this chapter that are
903+32 consistent with other penalties assessed for similar violations under
904+33 this title.
905+34 (c) The commissioner is solely responsible for the enforcement
906+35 of this chapter.
907+36 Sec. 13. A violation of this chapter does not create a private
908+37 cause of action.
909+38 SECTION 20. IC 27-2-29 IS ADDED TO THE INDIANA CODE
910+39 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
911+40 JULY 1, 2023]:
912+41 Chapter 29. Transition from Affordable Care Act to Medicare
913+42 Sec. 1. As used in this chapter, "Affordable Care Act" refers to
914+EH 1329—LS 7406/DI 55 20
915+1 the federal Patient Protection and Affordable Care Act (P.L.
916+2 111-148), as amended by the federal Health Care and Education
917+3 Reconciliation Act of 2010 (P.L. 111-152).
918+4 Sec. 2. As used in this chapter, "health maintenance
919+5 organization" has the meaning set forth in IC 27-13-1-19.
920+6 Sec. 3. As used in this chapter, "insurer" has the meaning set
921+7 forth in IC 27-1-2-3(x).
922+8 Sec. 4. As used in this chapter, "Marketplace plan" means:
923+9 (1) a policy of accident and sickness insurance;
924+10 (2) a health maintenance organization contract; or
925+11 (3) an exclusive provider organization plan, point of service
926+12 plan, preferred provider organization plan, or any other plan
927+13 or program;
928+14 that is a qualified health plan available from a marketplace under
929+15 the Affordable Care Act.
930+16 Sec. 5. As used in this chapter, "policy of accident and sickness
931+17 insurance" means a policy or contract providing one (1) or more
932+18 of the kinds of insurance described in Class 1(b) or 2(a) of
933+19 IC 27-1-5-1.
934+20 Sec. 6. As used in this chapter, "qualified health plan" has the
935+21 meaning set forth in Section 1301 of the Affordable Care Act, 42
936+22 U.S.C. 18021.
937+23 Sec. 7. (a) An insurer or health maintenance organization that
938+24 provides coverage under a Marketplace plan shall provide to each
939+25 individual covered under the Marketplace plan, not earlier than six
940+26 (6) months and not later than two (2) months before the birthday
941+27 on which the individual will become sixty-five (65) years of age, a
942+28 notice that includes the following:
943+29 (1) A statement that the individual may be eligible to enroll in
944+30 Medicare during the individual's initial enrollment period,
945+31 which begins three (3) months before the individual becomes
946+32 sixty-five (65) years of age. The department of insurance shall
947+33 provide language for the statement required by this
948+34 subdivision in a bulletin issued under subsection (c).
949+35 (2) Detailed instructions that the individual may follow to
950+36 cancel the individual's Marketplace plan before the individual
951+37 becomes covered under Medicare, so that there is no overlap
952+38 between the individual's Marketplace plan coverage and the
953+39 individual's Medicare coverage.
954+40 (b) A written notice described in subsection (a) shall be sent:
955+41 (1) by first class mail in the form of a letter addressed to the
956+42 individual at the address of the individual's residence; or
957+EH 1329—LS 7406/DI 55 21
958+1 (2) by electronic notification.
959+2 (c) The department of insurance:
960+3 (1) shall issue an initial bulletin setting forth language for the
961+4 statement required by subsection (a)(1); and
962+5 (2) whenever the department of insurance revises the
963+6 language described in subdivision (1), shall issue a bulletin
964+7 setting forth the revised language.
965+8 SECTION 21. IC 27-4-1-5.6 IS AMENDED TO READ AS
966+9 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 5.6. (a) A person who:
967+10 (1) has submitted a claim to an insurer under an insurance
968+11 policy; and
969+12 (2) believes the person has been adversely affected by that an
970+13 unfair claim settlement practice under described in section 4.5 of
971+14 this chapter has been committed in connection with the claim;
972+15 may file a complaint with the commissioner.
973+16 (b) A complaint may not be filed under subsection (a) by a
974+17 public adjuster (as defined in IC 27-1-27-1) on behalf of a person
975+18 described in subsection (a) unless the person described in
976+19 subsection (a) has given written consent for the public adjuster to
977+20 file the complaint on the person's behalf.
978+21 (c) If the commissioner believes an unfair claim settlement practice
979+22 has occurred, the commissioner shall, within ten (10) business days
980+23 from the date of receipt of a written complaint, deliver a copy of the
981+24 complaint to the insurer and shall respond in writing to the complaining
982+25 party, at the address provided in the complaint, advising the party of
983+26 the following:
984+27 (1) The specific action taken by the department on the complaint.
985+28 (2) Any further investigations or other actions that are intended by
986+29 the department.
987+30 (b) (d) An insurer who receives a written notice of complaint under
988+31 subsection (a) (c) shall promptly conduct an investigation of the
989+32 matters alleged in the complaint. Within twenty (20) business days
990+33 from the date of receipt of the complaint, the insurer shall provide to
991+34 the commissioner and the complaining party a written report containing
992+35 the following information:
993+36 (1) The specific reasons for actions taken by the insurer with
994+37 respect to the claim.
995+38 (2) The specific reasons for any inaction by the insurer with
996+39 respect to the claim.
997+40 (3) If the claim has not been settled, a good faith estimate of the
998+41 time required for settlement.
999+42 (c) (e) An insurer who commits an unfair claims settlement practice
1000+EH 1329—LS 7406/DI 55 22
1001+1 or who fails to comply with this section is subject to action by the
1002+2 commissioner under section 6 of this chapter.
1003+3 (d) (f) Each insurer shall provide to each current policyholder a one
1004+4 (1) time written notice of the remedies provided under this section.
1005+5 Future policyholders shall be notified by the insurer at the time the
1006+6 insurance policy is issued.
1007+7 SECTION 22. IC 27-8-4.9 IS ADDED TO THE INDIANA CODE
1008+8 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
1009+9 JULY 1, 2023]:
1010+10 Chapter 4.9. Accident and Sickness Insurance: Consent to
1011+11 Electronic Communication
1012+12 Sec. 1. As used in this chapter, "covered individual" means an
1013+13 individual entitled to coverage under a health benefit plan.
1014+14 Sec. 2. (a) As used in this chapter, "health benefit plan" means
1015+15 a policy, contract, certificate, or agreement that is entered into,
1016+16 offered by, or issued by an insurer to provide, deliver, arrange for,
1017+17 pay for, or reimburse any of the costs of health care services.
1018+18 (b) The term includes a health benefit plan that provides:
1019+19 (1) vision coverage; or
1020+20 (2) dental coverage.
1021+21 Sec. 3. (a) As used in this chapter, "plan sponsor" means a
1022+22 person that establishes, adopts, or maintains a health benefit plan
1023+23 that covers individuals in Indiana.
1024+24 (b) The term includes a health benefit plan established, adopted,
1025+25 or maintained:
1026+26 (1) by an employer;
1027+27 (2) jointly by an employer and one (1) or more employee
1028+28 organizations; or
1029+29 (3) by an association, committee, joint board of trustees, or
1030+30 any similar group of representatives.
1031+31 (c) The term does not include an entity regulated under this
1032+32 title.
1033+33 Sec. 4. (a) Subject to subsection (b), the plan sponsor of a health
1034+34 benefit plan may, on behalf of all covered individuals of the health
1035+35 benefit plan, provide consent:
1036+36 (1) to the mailing to covered individuals by electronic means
1037+37 otherwise required by IC 27-1-43-3 of all communications
1038+38 related to the health benefit plan; and
1039+39 (2) to the electronic delivery to a covered individual of any
1040+40 health insurance identification card.
1041+41 (b) Before providing consent on behalf of a covered individual
1042+42 under subsection (a), the plan sponsor of a health benefit plan must
1043+EH 1329—LS 7406/DI 55 23
1044+1 confirm that the covered individual routinely uses electronic
1045+2 communications during the normal course of the covered
1046+3 individual's employment.
1047+4 Sec. 5. Before providing delivery by electronic means to a
1048+5 covered individual for whom the plan sponsor of a health benefit
1049+6 plan has provided consent under section 4 of this chapter, the
1050+7 insurer that entered into, offered, or issued the policy, contract,
1051+8 certificate, or agreement constituting the health benefit plan must
1052+9 provide the covered individual an opportunity to opt out of the
1053+10 mailing by electronic means of communications related to the
1054+11 health benefit plan and the electronic delivery of health insurance
1055+12 identification cards.
1056+13 SECTION 23. IC 27-9-1-1 IS AMENDED TO READ AS
1057+14 FOLLOWS [EFFECTIVE MAY 1, 2023]: Sec. 1. Proceedings under
1058+15 this article apply to the following:
1059+16 (1) All insurers who are doing, or who have done, insurance
1060+17 business in Indiana, and against whom claims arising from that
1061+18 business may exist.
1062+19 (2) All insurers who purport to do insurance business in Indiana.
1063+20 (3) All insurers who have insureds resident in Indiana.
1064+21 (4) All other persons organized or in the process of organizing
1065+22 with the intent to do an insurance business in Indiana.
1066+23 (5) All nonprofit service plans, fraternal benefit societies, and
1067+24 beneficial societies.
1068+25 (6) All title insurance companies.
1069+26 (7) All health maintenance organizations under IC 27-13.
1070+27 (8) All multiple employer welfare arrangements under
1071+28 IC 27-1-34.
1072+29 (9) All limited service health maintenance organizations under
1073+30 IC 27-13-34.
1074+31 (10) All mutual insurance holding companies under IC 27-14
1075+32 (before its repeal) or IC 27-14.5.
1076+33 SECTION 24. IC 27-9-2-1 IS AMENDED TO READ AS
1077+34 FOLLOWS [EFFECTIVE MAY 1, 2023]: Sec. 1. (a) Whenever the
1078+35 commissioner has reasonable cause to believe, and determines, after a
1079+36 hearing held under IC 4-21.5-3, that any domestic insurer has
1080+37 committed or engaged in, or is about to commit or engage in, any act,
1081+38 practice, or transaction that would subject it to a delinquency
1082+39 proceeding under IC 27-9-3-1 or IC 27-9-3-6, the commissioner may
1083+40 make and serve upon the insurer and any other persons involved, any
1084+41 orders reasonably necessary to correct, eliminate, or remedy that
1085+42 conduct, condition, or ground.
1086+EH 1329—LS 7406/DI 55 24
1087+1 (b) If the commissioner has reasonable cause to believe that any
1088+2 domestic insurer is in such condition as to render the continuance of its
1089+3 business hazardous to the public or to holders of its policies or
1090+4 certificates of insurance, or if that domestic insurer gives its consent,
1091+5 the commissioner shall upon his determination issue an order:
1092+6 (1) notifying the insurer of his determination; and
1093+7 (2) providing the insurer with a written list of the commissioner's
1094+8 requirements to correct its business practices.
1095+9 (c) If the commissioner makes a determination to supervise an
1096+10 insurer subject to an order under subsection (a) or (b), the
1097+11 commissioner shall notify the insurer that it is under the supervision of
1098+12 the commissioner. If the insurer is a reorganized insurer under IC 27-14
1099+13 (before its repeal) or IC 27-14.5, the commissioner may also
1100+14 determine to supervise the mutual insurance holding company that is
1101+15 affiliated with the reorganized insurer, regardless of whether another
1102+16 basis exists for supervising the mutual insurance holding company. If
1103+17 the commissioner makes a determination to supervise a mutual
1104+18 insurance holding company, the commissioner shall notify the mutual
1105+19 insurance holding company that it is under the supervision of the
1106+20 commissioner.
1107+21 (d) During the period of supervision, the commissioner may appoint
1108+22 a supervisor to supervise the insurer. The order appointing a supervisor
1109+23 must direct the supervisor to enforce orders issued under subsection (a)
1110+24 or (b). The order may also provide that the insurer may not do any of
1111+25 the following things, during the period of supervision, without the prior
1112+26 approval of the commissioner or his supervisor:
1113+27 (1) Dispose of, convey, or encumber any of its assets or its
1114+28 business in force.
1115+29 (2) Withdraw funds from any of its bank accounts.
1116+30 (3) Lend any of its funds.
1117+31 (4) Invest any of its funds.
1118+32 (5) Transfer any of its property.
1119+33 (6) Incur any debt, obligation, or liability.
1120+34 (7) Merge or consolidate with another company.
1121+35 (8) Enter into any new reinsurance contract or agreement.
1122+36 (9) Restrict the writing of new business on the renewal of existing
1123+37 business.
1124+38 (e) Any insurer subject to an order under this section must comply
1125+39 with the lawful requirements of the commissioner and, if placed under
1126+40 supervision, has sixty (60) days from the date the supervision order is
1127+41 served within which to comply with the requirements of the
1128+42 commissioner. In the event of the insurer's failure to comply within
1129+EH 1329—LS 7406/DI 55 25
1130+1 those time requirements, the commissioner may institute proceedings
1131+2 under IC 27-9-3-1 or IC 27-9-3-6 to have a rehabilitator or liquidator
1132+3 appointed, or extend the period of supervision.
1133+4 (f) During the period of supervision, the insurer may request the
1134+5 commissioner to review any action taken or proposed to be taken by the
1135+6 supervisor, specifying the reason the action complained of is believed
1136+7 not to be in the best interest of the insurer.
1137+8 (g) If a person violates a supervision order issued under this section,
1138+9 he is civilly liable up to ten thousand dollars ($10,000).
1139+10 (h) The commissioner may apply for and the Marion County circuit
1140+11 court may grant, under IC 4-21.5-6, orders as are necessary and proper
1141+12 to enforce a supervision order.
1142+13 (i) In the event that a person subject to this article knowingly
1143+14 violates any valid order of the commissioner issued under this section
1144+15 and, as a result of that violation, the net worth of the insurer is reduced
1145+16 or the insurer suffers loss it would not otherwise have suffered, that
1146+17 person is personally liable to the insurer for the amount of that
1147+18 reduction or loss. The commissioner or supervisor is authorized to
1148+19 bring an action on behalf of the insurer in the Marion County circuit
1149+20 court to recover the amount of the reduction or loss together with any
1150+21 costs.
1151+22 SECTION 25. IC 27-9-3-1 IS AMENDED TO READ AS
1152+23 FOLLOWS [EFFECTIVE MAY 1, 2023]: Sec. 1. The commissioner
1153+24 may apply by petition to the Marion County circuit court for an order
1154+25 authorizing him to rehabilitate a domestic insurer or an alien insurer
1155+26 domiciled in Indiana on any one (1) of the following grounds:
1156+27 (1) The insurer is in a condition that the further transaction of
1157+28 business would be hazardous, financially, to its policyholders,
1158+29 creditors, or the public.
1159+30 (2) There is reasonable cause to believe that there has been
1160+31 embezzlement from the insurer, wrongful sequestration or
1161+32 diversion of the insurer's assets, forgery or fraud affecting the
1162+33 insurer, or other illegal conduct in, by, or with respect to the
1163+34 insurer that if established would endanger assets in an amount
1164+35 threatening the solvency of the insurer.
1165+36 (3) The insurer has failed to remove any person who in fact has
1166+37 executive authority in the insurer, whether an officer, manager,
1167+38 general agent, employee, or other person, if the person has been
1168+39 found after notice and hearing by the commissioner under
1169+40 IC 4-21.5-3 to be dishonest or untrustworthy in a way affecting
1170+41 the insurer's business.
1171+42 (4) Control of the insurer, whether by stock ownership or
1172+EH 1329—LS 7406/DI 55 26
1173+1 otherwise, and whether direct or indirect, is in a person found
1174+2 after notice and hearing under IC 4-21.5-3 to be untrustworthy.
1175+3 (5) Any person who in fact has executive authority in the insurer,
1176+4 whether an officer, manager, general agent, director or trustee,
1177+5 employee, or other person, has refused to be examined under oath
1178+6 by the commissioner concerning its affairs, whether in Indiana or
1179+7 elsewhere, and after reasonable notice of the fact the insurer has
1180+8 failed promptly and effectively to terminate the employment and
1181+9 status of the person and all his influence on management.
1182+10 (6) After demand by the commissioner under this article or
1183+11 IC 27-1-3, the insurer has failed to promptly make available for
1184+12 examination any of its own property, books, accounts, documents,
1185+13 or other records, or those of any subsidiary or related company
1186+14 within the control of the insurer, or those of any person having
1187+15 executive authority in the insurer so far as they concern the
1188+16 insurer.
1189+17 (7) Without first obtaining the written consent of the
1190+18 commissioner, the insurer has transferred, or attempted to
1191+19 transfer, in a manner contrary to IC 27-1-23 or IC 27-6,
1192+20 substantially all of its entire property or business, or has entered
1193+21 into any transaction the effect of which is to merge, consolidate,
1194+22 or reinsure substantially its entire property or business in or with
1195+23 the property or business of any other person.
1196+24 (8) The insurer or its property has been or is the subject of an
1197+25 application for the appointment of a receiver, trustee, custodian,
1198+26 conservator, or sequestrator or similar fiduciary of the insurer or
1199+27 its property otherwise than as authorized under this title, and the
1200+28 appointment has been made or is imminent, and the appointment
1201+29 might:
1202+30 (A) remove the insurer from the jurisdiction of the Indiana
1203+31 courts; or
1204+32 (B) prejudice orderly delinquency proceedings under this
1205+33 article.
1206+34 (9) Within the previous four (4) years the insurer has willfully
1207+35 violated its charter or articles of incorporation, its bylaws, this
1208+36 title, or any valid order of the commissioner under IC 27-9-2-1.
1209+37 (10) The insurer has failed to pay within sixty (60) days after the
1210+38 due date any obligation to any state or any political subdivision of
1211+39 any state or any judgment entered in any state, if the court in
1212+40 which the judgment was entered had jurisdiction over the subject
1213+41 matter. However, nonpayment shall not be a ground until sixty
1214+42 (60) days after any good faith effort by the insurer to contest the
1215+EH 1329—LS 7406/DI 55 27
1216+1 obligation has been terminated, whether it is before the
1217+2 commissioner or in the courts, or the insurer has systematically
1218+3 attempted to compromise or renegotiate previously agreed
1219+4 settlements with its creditors on the ground that it is financially
1220+5 unable to pay its obligations in full.
1221+6 (11) The insurer has failed to file its annual report or other
1222+7 financial report required by law and, after written demand by the
1223+8 commissioner, has failed to immediately give an adequate
1224+9 explanation.
1225+10 (12) The board of directors or the holders of a majority of the
1226+11 shares entitled to vote, or a majority of those individuals entitled
1227+12 to the control of those entities, request or consent to rehabilitation
1228+13 under this article.
1229+14 (13) The insurer is a mutual insurance holding company under
1230+15 IC 27-14 (before its repeal) or IC 27-14.5 and a reorganized
1231+16 insurance company that is affiliated with the mutual insurance
1232+17 holding company and is or has been the subject of a petition for
1233+18 an order authorizing the commissioner to rehabilitate the
1234+19 reorganized insurance company under this section or to liquidate
1235+20 the reorganized insurance company under section 6 of this
1236+21 chapter, regardless of whether another basis exists for petitioning
1237+22 for rehabilitation of the mutual insurance holding company.
1238+23 SECTION 26. IC 27-13-23-1 IS AMENDED TO READ AS
1239+24 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 1. The commissioner
1240+25 may make an examination of a health maintenance organization
1241+26 whenever necessary for the protection of the interests of the citizens of
1242+27 Indiana. However, an examination of a health maintenance
1243+28 organization domiciled in Indiana must be conducted at least once
1244+29 every three (3) five (5) years.
1245+30 SECTION 27. IC 27-13-23-2 IS AMENDED TO READ AS
1246+31 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 2. The commissioner
1247+32 may make an examination concerning the quality management program
1248+33 of a health maintenance organization whenever necessary for the
1249+34 protection of the citizens of Indiana. However, an examination of the
1250+35 quality management program of a health maintenance organization
1251+36 domiciled in Indiana must be conducted at least once every three (3)
1252+37 five (5) years.
1253+38 SECTION 28. IC 27-14 IS REPEALED [EFFECTIVE MAY 1,
1254+39 2023]. (Mutual Insurance Holding Company Law).
1255+40 SECTION 29. IC 27-14.5 IS ADDED TO THE INDIANA CODE
1256+41 AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE MAY
1257+42 1, 2023]:
1258+EH 1329—LS 7406/DI 55 28
1259+1 ARTICLE 14.5. MUTUAL INSURANCE HOLDING
1260+2 COMPANY LAW
1261+3 Chapter 1. General Provisions and Definitions
1262+4 Sec. 1. This article may be referred to as the Indiana mutual
1263+5 insurance holding company law.
1264+6 Sec. 2. (a) This article replaces IC 27-14, as repealed by this
1265+7 House Enrolled Act 1329-2023.
1266+8 (b) The repeal of IC 27-14 does not affect the validity of any
1267+9 mutual insurance company reorganization that was approved
1268+10 under IC 27-14. Any existing mutual insurance holding company
1269+11 and any related intermediate stock holding company or
1270+12 reorganized insurer created or reorganized under IC 27-14 (before
1271+13 its repeal) are:
1272+14 (1) governed by this article after April 30, 2023; and
1273+15 (2) considered created or reorganized as of the date the
1274+16 mutual insurance holding company, related intermediate
1275+17 stock holding company, or reorganized insurer was created or
1276+18 reorganized, as applicable, under IC 27-14.
1277+19 Sec. 3. (a) This article is intended to enable mutual insurance
1278+20 companies to seek additional capital more effectively to:
1279+21 (1) enhance their financial strength and flexibility;
1280+22 (2) support long term growth internally and through mergers
1281+23 and acquisitions; and
1282+24 (3) expand and enhance the domestic insurance companies of
1283+25 this state.
1284+26 (b) This article provides an alternative organizational structure
1285+27 to help strengthen the Indiana mutual insurance industry by
1286+28 permitting mutual insurance companies to:
1287+29 (1) reorganize into a mutual insurance holding company
1288+30 structure; and
1289+31 (2) raise capital through the sale of capital stock.
1290+32 Sec. 4. The definitions set forth in this chapter apply throughout
1291+33 this article.
1292+34 Sec. 5. (a) Subject to subsection (b), "acting in concert" means:
1293+35 (1) a knowing participation in a joint activity whether or not
1294+36 under an express agreement;
1295+37 (2) interdependent conscious parallel action toward a common
1296+38 goal under an express agreement or otherwise; or
1297+39 (3) a combination or pooling of voting interests or other
1298+40 interests in the securities of any person for a common purpose
1299+41 under any contract, understanding, relationship, agreement,
1300+42 or other arrangement, written or otherwise.
1301+EH 1329—LS 7406/DI 55 29
1302+1 (b) An employee benefit plan is acting in concert with:
1303+2 (1) its trustee; or
1304+3 (2) a person who serves in a capacity similar to a trustee;
1305+4 solely for the purpose of determining whether capital stock held by
1306+5 the trustee or the person in a similar capacity and capital stock
1307+6 held by the plan will be aggregated.
1308+7 Sec. 6. "Adoption date" means, with respect to a plan, the date
1309+8 on which the board of directors approves a plan of reorganization
1310+9 or a plan to issue stock.
1311+10 Sec. 7. "Affiliate" means a person who, directly or indirectly:
1312+11 (1) controls;
1313+12 (2) is controlled by; or
1314+13 (3) is under common control with;
1315+14 another person.
1316+15 Sec. 8. "Applicant" means, with respect to a plan, a person that
1317+16 has submitted a plan to the commissioner under this article.
1318+17 Sec. 9. (a) Subject to subsection (b), "associate" means any of
1319+18 the following:
1320+19 (1) With respect to a particular person, corporation, business
1321+20 entity, or other organization (other than the applicant or an
1322+21 affiliate of the applicant) for which the person is:
1323+22 (A) an officer;
1324+23 (B) a partner; or
1325+24 (C) directly or indirectly the beneficial owner of at least
1326+25 ten percent (10%) of any class of equity securities.
1327+26 (2) With respect to an individual who is a director or an
1328+27 officer of the applicant or of any of the applicant's affiliates,
1329+28 a:
1330+29 (A) spouse; or
1331+30 (B) member of the immediate family sharing the same
1332+31 household.
1333+32 (3) With respect to a particular person, a trust or other estate
1334+33 in which the person has a substantial beneficial interest or for
1335+34 which the person serves as trustee or in a similar fiduciary
1336+35 capacity.
1337+36 (b) The term does not apply to a person that:
1338+37 (1) has a beneficial interest in; or
1339+38 (2) serves as a trustee or in a similar fiduciary capacity for;
1340+39 an employee benefit plan.
1341+40 Sec. 10. "Commissioner" refers to the insurance commissioner
1342+41 appointed under IC 27-1-1-2.
1343+42 Sec. 11. "Company" means any of the following:
1344+EH 1329—LS 7406/DI 55 30
1345+1 (1) A mutual insurance company.
1346+2 (2) A mutual insurance holding company.
1347+3 (3) An intermediate stock holding company.
1348+4 (4) A reorganized insurer.
1349+5 Sec. 12. "Effective date" means, with respect to a plan, the date
1350+6 on which the plan becomes effective under this article.
1351+7 Sec. 13. "Eligible member" means, with respect to a plan, a
1352+8 person who is a member of a mutual insurance company or mutual
1353+9 insurance holding company, as applicable, on the adoption date of
1354+10 a plan and:
1355+11 (1) solely for purposes of receipt of notice of and voting at a
1356+12 meeting of members on a plan of reorganization, continues to
1357+13 be a member of the mutual insurance company on the record
1358+14 date for the meeting of members; or
1359+15 (2) solely for purposes of eligibility to receive stock
1360+16 subscription rights, if any, under a plan to issue stock,
1361+17 continues to be a member of the mutual insurance company
1362+18 or mutual insurance holding company, as applicable, on the
1363+19 date the commissioner approves the plan to issue stock.
1364+20 Sec. 14. "Employee benefit plan" means an employee benefit
1365+21 plan established by a mutual insurance holding company or by one
1366+22 (1) or more of the subsidiaries of a mutual insurance holding
1367+23 company for the sole benefit of its:
1368+24 (1) employees; or
1369+25 (2) sales agents.
1370+26 Sec. 15. "Entity" has the meaning set forth in IC 23-0.5-1.5-8.
1371+27 Sec. 16. "Immediate family" means any child, stepchild,
1372+28 grandchild, parent, stepparent, grandparent, sibling,
1373+29 mother-in-law, father-in-law, daughter-in-law, son-in-law,
1374+30 brother-in-law, or sister-in-law. The term includes adoptive
1375+31 relationships.
1376+32 Sec. 17. "Intermediate stock holding company" means an entity,
1377+33 other than a reorganized insurer and its subsidiaries, that:
1378+34 (1) is owned entirely or in part, directly or indirectly, by a
1379+35 mutual insurance holding company; and
1380+36 (2) directly or indirectly owns all or part of the capital stock
1381+37 of a reorganized insurer.
1382+38 Sec. 18. "Member" means a person that, according to the:
1383+39 (1) records; and
1384+40 (2) articles of incorporation and bylaws;
1385+41 of a mutual insurance company or mutual insurance holding
1386+42 company, as applicable, is a member or policyholder of the mutual
1387+EH 1329—LS 7406/DI 55 31
1388+1 insurance company or mutual insurance holding company, as
1389+2 applicable, with voting rights.
1390+3 Sec. 19. "Member's interest" means:
1391+4 (1) the voting rights of a member provided by the mutual
1392+5 insurance company's or the mutual insurance holding
1393+6 company's articles of incorporation or bylaws; and
1394+7 (2) the right to receive cash, stock, or other consideration in
1395+8 the event of a liquidation or dissolution under IC 27-1-10,
1396+9 conversion to a stock company under IC 27-15, or as provided
1397+10 by the mutual insurance company's or mutual insurance
1398+11 holding company's articles of incorporation or bylaws.
1399+12 Sec. 20. "Mutual insurance company" means a mutual insurer
1400+13 that is:
1401+14 (1) submitting; or
1402+15 (2) subject to;
1403+16 a plan of reorganization or plan to issue stock under this article.
1404+17 Sec. 21. "Mutual insurance holding company" means a mutual
1405+18 insurance holding company established under IC 27-14.5-2.
1406+19 Sec. 22. "Participating policy" means a policy providing for the
1407+20 distribution of policy dividends.
1408+21 Sec. 23. "Person" means any of the following:
1409+22 (1) An individual.
1410+23 (2) A group of individuals acting in concert.
1411+24 (3) A trust.
1412+25 (4) An association.
1413+26 (5) A partnership.
1414+27 (6) A limited liability company.
1415+28 (7) A corporation.
1416+29 (8) A joint venture.
1417+30 (9) A government or governmental subdivision, agency, or
1418+31 instrumentality.
1419+32 (10) Any entity.
1420+33 Sec. 24. "Plan" means a plan:
1421+34 (1) of reorganization; or
1422+35 (2) to issue stock.
1423+36 Sec. 25. "Plan of reorganization" means a plan adopted under
1424+37 IC 27-14.5-2.
1425+38 Sec. 26. "Plan to issue stock" means a plan to issue shares of
1426+39 stock of an intermediate stock holding company or a reorganized
1427+40 insurer adopted under IC 27-14.5-3.
1428+41 Sec. 27. "Policy" means a contract providing one (1) or more of
1429+42 the kinds of insurance described in IC 27-1-5-1.
1430+EH 1329—LS 7406/DI 55 32
1431+1 Sec. 28. "Reorganized insurer" means an entity:
1432+2 (1) that is a domestic stock insurance company that is owned
1433+3 entirely or in part by a mutual insurance holding company or
1434+4 an intermediate stock holding company; and
1435+5 (2) the members of which:
1436+6 (A) may be; or
1437+7 (B) are entitled to become;
1438+8 members of the mutual insurance holding company.
1439+9 Sec. 29. "Subsidiary" means, with respect to a particular
1440+10 person, an affiliate of the person that is controlled by the person,
1441+11 either:
1442+12 (1) directly; or
1443+13 (2) indirectly through one (1) or more intermediaries.
1444+14 Sec. 30. "Voting capital stock" means capital stock whose holder
1445+15 has the right to vote in the election of directors of the entity issuing
1446+16 the stock.
1447+17 Chapter 2. Mutual Insurance Company Reorganization
1448+18 Sec. 1. (a) A mutual insurance company may reorganize under
1449+19 this chapter as a mutual insurance holding company with one (1)
1450+20 or more subsidiaries if the following occur:
1451+21 (1) The adoption of a plan of reorganization by the mutual
1452+22 insurance company's board of directors in accordance with
1453+23 section 4 of this chapter.
1454+24 (2) The approval by the commissioner of the mutual insurance
1455+25 company's application for reorganization.
1456+26 (3) The favorable vote of the mutual insurance company's
1457+27 members under sections 8 through 12 of this chapter.
1458+28 (b) The subsidiaries of a mutual insurance holding company
1459+29 that result from a reorganization of a mutual insurance company
1460+30 under this chapter:
1461+31 (1) must include at least one (1) stock insurance company
1462+32 subsidiary; and
1463+33 (2) may include one (1) or more intermediate stock holding
1464+34 companies.
1465+35 Sec. 2. The reorganization of a mutual insurance company or
1466+36 two (2) or more mutual insurance companies into a mutual
1467+37 insurance holding company structure under this chapter may be
1468+38 accomplished by any means approved by the commissioner,
1469+39 including the following:
1470+40 (1) The establishment of at least one (1) company.
1471+41 (2) The amendment or restatement of the articles and bylaws
1472+42 of any company.
1473+EH 1329—LS 7406/DI 55 33
1474+1 (3) The transfer or acquisition of any or all of the assets and
1475+2 liabilities of any company.
1476+3 (4) The transfer or acquisition of any or all of the capital stock
1477+4 of any company.
1478+5 (5) The merger of two (2) or more companies.
1479+6 (6) The merger of a mutual insurance company's members
1480+7 into any existing mutual insurance holding company with
1481+8 continued corporate existence of the reorganized mutual
1482+9 insurance company as a reorganized insurer.
1483+10 Sec. 3. After the effective date of the reorganization of a mutual
1484+11 insurance company as a mutual insurance holding company under
1485+12 this chapter, the mutual insurance holding company must at all
1486+13 times have the direct or indirect power to cast at least a majority
1487+14 of the votes for the election of the members of the board of
1488+15 directors of:
1489+16 (1) each stock insurance company subsidiary; and
1490+17 (2) any intermediate stock holding company.
1491+18 Sec. 4. A plan of reorganization under this chapter must be
1492+19 adopted by:
1493+20 (1) a vote of not less than two-thirds (2/3) of the members of
1494+21 the board of directors of the mutual insurance company; or
1495+22 (2) in the case of the formation of any intermediate stock
1496+23 insurance holding company that is not concurrent with the
1497+24 formation of the mutual insurance holding company, by a vote
1498+25 of not less than two-thirds (2/3) of the members of the board
1499+26 of directors of the mutual insurance holding company.
1500+27 Sec. 5. Not later than ninety (90) days after the adoption of a
1501+28 plan of reorganization and before a vote on the plan by the
1502+29 members, the company adopting the plan of reorganization must
1503+30 file with the commissioner an application containing the following:
1504+31 (1) A plan of reorganization.
1505+32 (2) The form of the notice, proxy statement, and the proxy
1506+33 form to be used in providing notice of the plan of
1507+34 reorganization and soliciting the votes of members under
1508+35 section 11 of this chapter.
1509+36 (3) A list of the officers and directors of each company that is
1510+37 affected by the plan of reorganization.
1511+38 Sec. 6. (a) A plan of reorganization filed with the commissioner
1512+39 under this chapter must include the following:
1513+40 (1) A description of all significant terms of the proposed
1514+41 reorganization.
1515+42 (2) Any plan to issue stock that may be proposed in connection
1516+EH 1329—LS 7406/DI 55 34
1517+1 with the plan of reorganization.
1518+2 (3) A statement describing how the reorganization is fair and
1519+3 equitable to the members.
1520+4 (4) With respect to participating policies and contracts of the
1521+5 reorganized insurer, a description of the current dividend
1522+6 practices of the mutual insurance company and the dividend
1523+7 practices to be followed by the reorganized insurer on and
1524+8 after the effective date of the plan of reorganization.
1525+9 (5) Information sufficient to demonstrate that the financial
1526+10 condition of the mutual insurance company will not be
1527+11 diminished upon reorganization.
1528+12 (6) Provisions that provide the following:
1529+13 (A) Immediate membership in the mutual insurance
1530+14 holding company for all existing members of the mutual
1531+15 insurance company.
1532+16 (B) A member's interest in a mutual insurance holding
1533+17 company may not be transferred, assigned, pledged, or
1534+18 alienated in any manner except in connection with a
1535+19 transfer, assignment, pledge, or alienation of the policy
1536+20 from which the member's interest is derived.
1537+21 (C) A member's interest in a mutual insurance holding
1538+22 company will automatically terminate upon the lapse or
1539+23 other termination of the policy from which the member's
1540+24 interest is derived.
1541+25 (7) Provisions for the discretionary granting of membership
1542+26 interests for existing or future policyholders of the
1543+27 reorganized insurer and any other existing or future direct or
1544+28 indirect stock insurance company subsidiary.
1545+29 (8) Provisions to ensure that, in the event of proceedings for
1546+30 rehabilitation or liquidation involving a stock insurance
1547+31 company subsidiary of the mutual insurance holding
1548+32 company, the assets of the mutual insurance holding company
1549+33 will be available to satisfy the policyholder obligations of the
1550+34 stock insurance company subsidiary.
1551+35 (9) The proposed articles of incorporation and bylaws of the
1552+36 mutual insurance holding company, intermediate stock
1553+37 holding company, and reorganized insurer or proposed
1554+38 amendments thereto as necessary to effectuate the
1555+39 reorganization.
1556+40 (10) A certification that the plan of reorganization has been
1557+41 duly adopted by a vote of not less than two-thirds (2/3) of the
1558+42 members of the board of directors of the mutual insurance
1559+EH 1329—LS 7406/DI 55 35
1560+1 company.
1561+2 (11) The names, addresses, and occupational information of
1562+3 all corporate officers and all members of the board of
1563+4 directors of the proposed mutual insurance holding company.
1564+5 (12) A description of any plans for the initial sale of stock of
1565+6 the intermediate stock holding company or reorganized
1566+7 insurer.
1567+8 (13) With regard to a policy of the mutual insurance company
1568+9 in force on the effective date of a plan of reorganization, a
1569+10 provision that provides the policy continues to remain in force
1570+11 under the policy's terms as the policy of the reorganized
1571+12 insurer.
1572+13 (14) Any other information requested by the commissioner.
1573+14 (b) A plan of reorganization that is filed with the commissioner
1574+15 under this chapter may also include any other provision acceptable
1575+16 to the commissioner.
1576+17 Sec. 7. A plan of reorganization that is adopted by the board of
1577+18 directors of the applicant may be amended or terminated by a vote
1578+19 of not less than two-thirds (2/3) of the members of the board of
1579+20 directors of the applicant:
1580+21 (1) in response to the comments or recommendations of the
1581+22 commissioner, or any other state or federal agency or entity,
1582+23 before any solicitation of proxies from the members to vote on
1583+24 the plan of reorganization;
1584+25 (2) at any time before the members vote on the plan of
1585+26 reorganization; or
1586+27 (3) otherwise, at any time, with the consent of the
1587+28 commissioner.
1588+29 Sec. 8. (a) A plan of reorganization must be submitted for
1589+30 approval by the members at a special or annual meeting of
1590+31 members held in accordance with IC 27-1-7-7.
1591+32 (b) The meeting of members under subsection (a) must be held
1592+33 after the commissioner has approved the plan under IC 27-14.5-4.
1593+34 Sec. 9. In accordance with IC 27-1-7-9, a member:
1594+35 (1) may vote in person or by proxy; and
1595+36 (2) is entitled to cast only one (1) vote on the proposed plan of
1596+37 reorganization, regardless of the number of policies or the
1597+38 amount of insurance that the member may have with the
1598+39 applicant or any affiliate of the applicant.
1599+40 Sec. 10. All members, in accordance with IC 27-1-7-7, must be
1600+41 provided with notice of the meeting at which the plan of
1601+42 reorganization will be submitted for approval by the members in
1602+EH 1329—LS 7406/DI 55 36
1603+1 the manner outlined in the plan of reorganization approved by the
1604+2 commissioner.
1605+3 Sec. 11. A person soliciting a proxy from a member shall
1606+4 provide all members with a proxy statement that:
1607+5 (1) identifies the person soliciting the proxy;
1608+6 (2) informs the member of the right to vote upon the plan of
1609+7 reorganization and the vote required for approval;
1610+8 (3) briefly describes the proposed plan of reorganization and
1611+9 any voting capital stock to be offered;
1612+10 (4) explains the use of any new capital to be raised; and
1613+11 (5) describes any employee benefit plan or stock option plan.
1614+12 Sec. 12. A plan of reorganization is approved under this chapter
1615+13 upon the affirmative vote of at least a majority of the votes cast by
1616+14 eligible members either in person or by proxy.
1617+15 Sec. 13. Not later than thirty (30) days after the members have
1618+16 approved a plan of reorganization under this chapter, the applicant
1619+17 must file with the commissioner the minutes of the meeting at
1620+18 which the plan of reorganization was approved.
1621+19 Sec. 14. The reorganized insurer to which insurance policies,
1622+20 contracts, and other assets and obligations are transferred in
1623+21 connection with a plan of reorganization under this chapter has,
1624+22 with respect to the insurance policies, contracts, and other assets
1625+23 and obligations, all rights, liabilities, and authority of the mutual
1626+24 insurance company that is subject to the plan of reorganization.
1627+25 Sec. 15. If a proceeding is pending against a mutual insurance
1628+26 company that is the subject of a plan of reorganization under this
1629+27 chapter:
1630+28 (1) the proceeding may be continued against the reorganized
1631+29 insurer under its former name after the effective date of the
1632+30 reorganization, as if the reorganization had not occurred; or
1633+31 (2) the reorganized insurer that succeeds to the mutual
1634+32 insurance company's business may be substituted in the
1635+33 proceeding for the mutual insurance company.
1636+34 Sec. 16. The reorganized insurer, at its discretion, may retain
1637+35 the name the reorganized insurer had prior to its reorganization
1638+36 into a mutual insurance holding company structure.
1639+37 Chapter 3. Issuance of Capital Stock
1640+38 Sec. 1. (a) Subject to subsection (c), a reorganized insurer may
1641+39 issue shares of any class or type of stock permitted under this title.
1642+40 (b) Subject to subsection (c), an intermediate stock holding
1643+41 company may issue any class or type of stock permitted by the law
1644+42 under which the intermediate stock holding company is organized.
1645+EH 1329—LS 7406/DI 55 37
1646+1 (c) A reorganized insurer and an intermediate stock holding
1647+2 company may issue shares of stock to a person or entity other than:
1648+3 (1) the mutual insurance holding company of which it is a
1649+4 subsidiary; or
1650+5 (2) an intermediate stock holding company that is a subsidiary
1651+6 of the mutual insurance holding company referred to in
1652+7 subdivision (1);
1653+8 only in compliance with this chapter.
1654+9 Sec. 2. A plan to issue stock under this chapter must be adopted:
1655+10 (1) by a vote of not less than two-thirds (2/3) of the members
1656+11 of the board of directors of the mutual insurance company; or
1657+12 (2) in the case of a plan to issue shares of stock that is not
1658+13 concurrent with the formation of the mutual insurance
1659+14 holding company, by a vote of not less than two-thirds (2/3) of
1660+15 the members of the board of directors of the mutual insurance
1661+16 holding company and the reorganized insurer or intermediate
1662+17 stock holding company proposing to issue the stock.
1663+18 Sec. 3. A board of directors that adopts a plan to issue stock
1664+19 under this chapter may amend or withdraw the plan at any time
1665+20 before the effective date by a vote of not less than two-thirds (2/3)
1666+21 of the members of the board of directors. However, after the
1667+22 commissioner has approved a plan to issue stock, the plan may not
1668+23 be amended unless the commissioner approves the amendment.
1669+24 Sec. 4. Not later than ninety (90) days after the adoption of a
1670+25 plan to issue stock, the reorganized insurer or intermediate stock
1671+26 holding company adopting the plan must file with the
1672+27 commissioner an application that contains the following:
1673+28 (1) A proposed plan to issue stock.
1674+29 (2) The form of notice to be sent to members informing
1675+30 members of the member's right to vote on the plan.
1676+31 (3) The form of the proxy statement to be used to solicit the
1677+32 votes of members, which must include a description of the
1678+33 plan.
1679+34 (4) The form of proxy to be solicited from members.
1680+35 (5) If it is necessary to amend the current articles of
1681+36 incorporation or bylaws of a company that is affected by the
1682+37 plan, a copy of the proposed articles of amendment and
1683+38 amended bylaws of the company, which must comply with the
1684+39 requirements of IC 27-1-8.
1685+40 (6) A list of the officers and directors of each company that is
1686+41 affected by the plan.
1687+42 (7) A description of the following:
1688+EH 1329—LS 7406/DI 55 38
1689+1 (A) The stock intended to be offered by the applicant.
1690+2 (B) All shareholder rights applicable to the stock intended
1691+3 to be offered by the applicant.
1692+4 (C) The total number of shares authorized to be issued.
1693+5 (D) The estimated number of shares the applicant intends
1694+6 to offer.
1695+7 (E) The intended date or range of dates for the offering.
1696+8 (8) A list of the following:
1697+9 (A) The name or names of any underwriter, syndicate
1698+10 member, or placement agent involved.
1699+11 (B) If known by the applicant, the name or names of each
1700+12 person or group of persons who will control five percent
1701+13 (5%) or more of the total outstanding shares of the class of
1702+14 stock to be offered.
1703+15 (C) If any of the persons listed under clause (A) or (B) is a
1704+16 corporation or other business entity, the name of each
1705+17 member of its board of directors or equivalent
1706+18 management body.
1707+19 (9) Copies of any filings that have been made, if applicable,
1708+20 with the United States Securities and Exchange Commission.
1709+21 (10) A description of all expenses expected to be incurred in
1710+22 connection with the plan to issue stock.
1711+23 (11) Any other information requested by the commissioner.
1712+24 Sec. 5. A plan to issue stock that is filed with the commissioner
1713+25 under this chapter must do the following:
1714+26 (1) Describe the reasons for and the purposes of the proposed
1715+27 issuance of shares of stock.
1716+28 (2) Require that, after the effective date, the mutual insurance
1717+29 holding company must at all times have the direct or indirect
1718+30 power to cast at least a majority of the votes for the election
1719+31 of the members of the board of directors of the reorganized
1720+32 insurer and any intermediate stock holding company.
1721+33 (3) Provide that the aggregate total number of shares of stock
1722+34 that may be purchased by the directors and officers of the
1723+35 mutual insurance holding company and its subsidiaries and
1724+36 associates may not exceed thirty percent (30%) of the total
1725+37 number of shares of stock to be issued, not including any
1726+38 shares attributed to the officers and directors and their
1727+39 associates but held by one (1) or more tax-qualified employee
1728+40 benefit plans.
1729+41 (4) Provide that the aggregate total number of shares of stock
1730+42 that may be purchased by:
1731+EH 1329—LS 7406/DI 55 39
1732+1 (A) a single director or officer of the mutual insurance
1733+2 holding company or the subsidiaries of the mutual
1734+3 insurance holding company;
1735+4 (B) associates of a person referred to in clause (A); and
1736+5 (C) persons acting in concert with a person referred to in
1737+6 clause (A) or (B);
1738+7 may not exceed five percent (5%) of the total number of
1739+8 shares to be issued under the plan, not including any shares
1740+9 attributed to the officers and directors and their associates
1741+10 but held by one (1) or more tax-qualified employee benefit
1742+11 plans.
1743+12 (5) Provide that a director, officer, agent, or employee of the
1744+13 mutual insurance holding company or its subsidiaries, or an
1745+14 associate of a director, officer, agent, or employee may not
1746+15 receive any fee, commission, or other valuable consideration
1747+16 for aiding, promoting, or assisting in the issuance of stock
1748+17 under this section, except for:
1749+18 (A) compensation as provided for in the plan and approved
1750+19 by the commissioner;
1751+20 (B) the person's usual, regular salary or compensation;
1752+21 and
1753+22 (C) reasonable fees and compensation paid to an individual
1754+23 who is an attorney, accountant, or actuary for services
1755+24 performed in the individual's independent practice, even
1756+25 if the individual is also a director, officer, agent, or
1757+26 employee of the mutual insurance holding company or its
1758+27 subsidiaries.
1759+28 (6) Describe:
1760+29 (A) how the offering price of the stock to be sold was
1761+30 established; or
1762+31 (B) the method by which the offering price will be
1763+32 determined.
1764+33 Sec. 6. A plan to issue stock in a public offering (other than an
1765+34 offering in a private placement or solely in connection with a
1766+35 consolidation, merger, share exchange, or other business
1767+36 combination or an offering of stock in connection with an employee
1768+37 benefit plan or under a stock option plan) must do the following:
1769+38 (1) Provide for each eligible member to receive, without
1770+39 payment, nontransferable subscription rights to purchase a
1771+40 portion of the stock of the applicant and describe how the
1772+41 offering price of the stock that may be purchased was
1773+42 established or the method by which that price will be
1774+EH 1329—LS 7406/DI 55 40
1775+1 determined, except that subscription rights need not be
1776+2 granted to an eligible member who resides in a foreign
1777+3 country or other jurisdiction for which the commissioner
1778+4 determines that any registration, qualification, or filing
1779+5 requirements would be impracticable or unduly burdensome
1780+6 for reasons of cost or otherwise.
1781+7 (2) Specify how subscription rights are to be allocated in
1782+8 whole shares of stock among the eligible members.
1783+9 (3) Provide a fair and equitable means for allocating shares of
1784+10 stock in the event of an over-subscription to the shares by
1785+11 eligible members exercising subscription rights received
1786+12 under this chapter.
1787+13 (4) Provide that any portion of shares not subject to
1788+14 subscription rights and any shares of stock not subscribed to
1789+15 by eligible members exercising subscription rights received
1790+16 under this chapter, or not subscribed to by an employee
1791+17 benefit plan or by directors, officers, and employees
1792+18 exercising subscription rights, will be sold:
1793+19 (A) in a public offering through an underwriter;
1794+20 (B) through private placement; or
1795+21 (C) by any other method approved by the commissioner
1796+22 that is fair and equitable to members.
1797+23 (5) Require a person that exercises subscription rights to:
1798+24 (A) purchase at least a minimum number of shares of
1799+25 stock; or
1800+26 (B) a minimum dollar amount of shares of stock.
1801+27 (6) Require that a majority of the members of the board of
1802+28 directors of the mutual insurance holding company must be
1803+29 persons who are not officers or employees of the mutual
1804+30 insurance holding company or any of its subsidiaries, unless
1805+31 this requirement is waived by the commissioner upon a
1806+32 showing of good cause.
1807+33 (7) Require that at least three (3) members of the board of
1808+34 directors of the:
1809+35 (A) intermediate stock holding company; or
1810+36 (B) reorganized insurer if there is no intermediate stock
1811+37 holding company;
1812+38 of the mutual insurance holding company must be persons
1813+39 who are not officers or employees of the mutual insurance
1814+40 holding company or any of its subsidiaries, unless this
1815+41 requirement is waived by the commissioner upon a showing
1816+42 of good cause.
1817+EH 1329—LS 7406/DI 55 41
1818+1 (8) Provide that the mutual insurance holding company will
1819+2 adopt articles of incorporation or articles of amendment that
1820+3 include a provision prohibiting the mutual insurance holding
1821+4 company from waiving any dividends from its subsidiaries
1822+5 except:
1823+6 (A) under conditions specified in the articles of
1824+7 incorporation; and
1825+8 (B) after approval of the waiver by the board of directors
1826+9 of the mutual insurance holding company and by the
1827+10 commissioner.
1828+11 Sec. 7. A reorganized insurer or intermediate stock holding
1829+12 company may offer and sell voting capital stock without complying
1830+13 with sections 2 through 6 of this chapter if the board of directors
1831+14 of the reorganized insurer or intermediate stock holding company
1832+15 approves the offer and sale and each of the following conditions are
1833+16 satisfied:
1834+17 (1) The offer is not the first offering of voting capital stock by
1835+18 the reorganized insurer or intermediate stock holding
1836+19 company to a person or persons other than a mutual
1837+20 insurance holding company or intermediate stock holding
1838+21 company.
1839+22 (2) The stock that is to be offered and sold is:
1840+23 (A) listed or approved for listing upon notice of issuance on
1841+24 the New York Stock Exchange, the Nasdaq Stock Market,
1842+25 LLC, or any other exchange approved and designated by
1843+26 the commissioner; or
1844+27 (B) of senior rank or substantially equal rank to stock of
1845+28 the same issuer that is listed or designated under clause
1846+29 (A).
1847+30 (3) The reorganized insurer or intermediate stock holding
1848+31 company intending to make the offering delivers to the
1849+32 commissioner, at least thirty (30) days before commencing the
1850+33 offering, a notice containing the following information:
1851+34 (A) The name of the entity intending to make the offering
1852+35 and the affiliated mutual insurance holding company.
1853+36 (B) The total number and type of shares that are intended
1854+37 to be offered.
1855+38 (C) The intended date of the sale and whether the sale will
1856+39 be by an underwritten public offering, a private offering,
1857+40 or otherwise.
1858+41 (D) The exchanges on which the shares (or shares of junior
1859+42 or substantially equal rank) are listed, or the national
1860+EH 1329—LS 7406/DI 55 42
1861+1 market systems on which the shares are designated
1862+2 (demonstrating compliance with subdivision (2)), together
1863+3 with the symbols under which the shares are traded.
1864+4 (E) A record of the trading price and trading volume of the
1865+5 previously issued voting capital stock shares during the
1866+6 immediately preceding fifty-two (52) weeks or shorter
1867+7 period of time if trading for a shorter period of time.
1868+8 (4) The commissioner does not issue a written objection to the
1869+9 offering and sale of voting capital stock under this section
1870+10 without compliance with sections 2 through 6 of this chapter
1871+11 within twenty (20) days after the commissioner receives the
1872+12 notice filed under subdivision (3).
1873+13 (5) The offer and sale of stock is completed not more than one
1874+14 hundred eighty (180) days after the commissioner receives the
1875+15 notice filed under subdivision (3), except as otherwise
1876+16 provided by order of the commissioner.
1877+17 Sec. 8. A mutual insurance holding company and its subsidiaries
1878+18 and affiliates may not do any of the following:
1879+19 (1) Lend funds to any person to finance the purchase of stock
1880+20 in a stock offering by a mutual insurance holding company or
1881+21 any of its subsidiaries.
1882+22 (2) Pay commissions, "special fees", or other special or
1883+23 extraordinary compensation to officers, directors, interested
1884+24 persons, or affiliates for arranging, promoting, aiding,
1885+25 assisting, or participating in the structure or placement of a
1886+26 stock offering by the mutual insurance holding company or
1887+27 any of its subsidiaries, except to the extent permitted under
1888+28 section 5(5) of this chapter.
1889+29 Sec. 9. (a) This section does not apply to the payment of
1890+30 dividends, savings, or unabsorbed premium deposits allowed or
1891+31 returned as set forth in IC 27-7-2-37.5 or other similar programs
1892+32 permitted or filed in other states.
1893+33 (b) The reorganized insurer must obtain approval by the
1894+34 commissioner of the dividend practices with respect to
1895+35 participating policies and contracts in force as of the effective date
1896+36 of the reorganization to be followed by the reorganized insurer as
1897+37 set forth in IC 27-14.5-2-6(4) if the dividend practices of the
1898+38 reorganized insurer will be different from the dividend practices
1899+39 of the mutual insurance company.
1900+40 (c) The commissioner may require the establishment of a closed
1901+41 block or other mechanism that the commissioner finds to be fair
1902+42 for the protection of mutual insurance company policyholder
1903+EH 1329—LS 7406/DI 55 43
1904+1 dividends.
1905+2 (d) The dividend practices of the reorganized insurer, the
1906+3 requirement to establish a closed block or other mechanism, if any,
1907+4 or the terms of the closed block, may be modified after approval
1908+5 under subsection (b) or subsequent to a reorganization under
1909+6 IC 27-14.5-2 only with the prior approval of the commissioner on
1910+7 application of the reorganized insurer.
1911+8 (e) Neither an intermediate stock holding company nor a
1912+9 reorganized insurer may pay dividends or make other distributions
1913+10 with respect to its stock or its shareholders if the reorganized
1914+11 insurer has failed to pay policyholder dividends in compliance with
1915+12 the dividend practices approved by the commissioner in
1916+13 accordance with this section.
1917+14 Chapter. 4. Public Hearing, Public Comment, Commissioner
1918+15 Approval, and Effective Date of Plan
1919+16 Sec. 1. Not more than sixty (60) days after the filing of a plan of
1920+17 reorganization that:
1921+18 (1) is complete; and
1922+19 (2) does not include a plan to issue stock;
1923+20 the commissioner shall approve the plan without holding a hearing
1924+21 unless the commissioner concludes that one (1) or more of the
1925+22 findings listed in section 6 of this chapter is likely to be made.
1926+23 Sec. 2. Not more than sixty (60) days after:
1927+24 (1) the filing of a plan of reorganization that:
1928+25 (A) is complete; and
1929+26 (B) includes a plan to issue stock; or
1930+27 (2) the filing of an application with respect to a plan to issue
1931+28 stock that is:
1932+29 (A) complete; and
1933+30 (B) filed sometime after the consummation of an approved
1934+31 plan of reorganization;
1935+32 the commissioner may, if deemed necessary because the
1936+33 commissioner believes that one (1) or more of the findings listed in
1937+34 section 6 of this chapter may be made, conduct a public hearing or
1938+35 allow public comment for a period of not more than sixty (60) days
1939+36 to afford interested persons an opportunity to present information,
1940+37 views, arguments, or comments in regard to the proposed plan.
1941+38 Sec. 3. (a) If the commissioner deems that a public hearing or
1942+39 public comment period is necessary, the commissioner shall
1943+40 provide written notice of a hearing or comment period held under
1944+41 this chapter at least thirty (30) days before the hearing or sixty (60)
1945+42 days before the end of the comment period by publication in:
1946+EH 1329—LS 7406/DI 55 44
1947+1 (1) a newspaper of general circulation in the city of
1948+2 Indianapolis;
1949+3 (2) a newspaper of general circulation in the city in which the
1950+4 principal office of the applicant is located; and
1951+5 (3) a newspaper of general circulation in any other city or
1952+6 cities that the commissioner deems appropriate.
1953+7 The commissioner may provide written notice of the hearing or
1954+8 comment period by other means and to persons that the
1955+9 commissioner deems appropriate.
1956+10 (b) The notice provided under this section must:
1957+11 (1) refer to the applicable statutory provisions;
1958+12 (2) state the:
1959+13 (A) date, time, and location of the hearing; or
1960+14 (B) means by which comments may be submitted; and
1961+15 (3) include a brief statement of the subject of the hearing or
1962+16 comment period.
1963+17 Sec. 4. At a hearing held under this chapter:
1964+18 (1) any interested person may appear;
1965+19 (2) any interested person may:
1966+20 (A) file a written statement; or
1967+21 (B) make an oral presentation; and
1968+22 (3) at the discretion of the commissioner or the
1969+23 commissioner's appointee, testimony may be taken under oath
1970+24 or by affirmation.
1971+25 Sec. 5. The commissioner shall approve or disapprove any plan
1972+26 submitted under this article on or before the later of:
1973+27 (1) thirty (30) days after a hearing or comment period held
1974+28 under this chapter; or
1975+29 (2) thirty (30) days after the commissioner accepts the
1976+30 application relating to the plan.
1977+31 Sec. 6. The commissioner shall approve a plan submitted under
1978+32 this article unless the commissioner makes at least one (1) of the
1979+33 following findings with respect to the plan:
1980+34 (1) Disapproval of the plan is necessary to prevent practices
1981+35 that will cause material financial impairment to the applicant
1982+36 or its subsidiaries.
1983+37 (2) The financial position or management resources and
1984+38 capabilities of the applicant or its subsidiaries or affiliates
1985+39 warrant disapproval.
1986+40 (3) The plan does not comply with this article.
1987+41 (4) The proposed plan would not be fair and equitable to the
1988+42 members.
1989+EH 1329—LS 7406/DI 55 45
1990+1 Sec. 7. (a) The commissioner shall transmit to the applicant any
1991+2 order approving or disapproving a plan submitted under this
1992+3 article.
1993+4 (b) If the commissioner disapproves a plan, the commissioner
1994+5 shall provide the applicant with a written statement detailing:
1995+6 (1) the reasons for; and
1996+7 (2) all findings in connection with;
1997+8 the disapproval.
1998+9 Sec. 8. The approval by the commissioner of a plan to issue
1999+10 stock expires one hundred eighty (180) days after the date of
2000+11 approval, except as otherwise provided by an order of the
2001+12 commissioner.
2002+13 Sec. 9. Except as otherwise provided in this article, the
2003+14 organization of a mutual insurance holding company under a plan
2004+15 under this article must be conducted in compliance with the
2005+16 provisions of IC 27-1-6 concerning the formation of domestic
2006+17 insurance companies.
2007+18 Sec. 10. (a) Except as otherwise provided in this article and
2008+19 subject to subsection (b), the amendment of the articles of
2009+20 incorporation of a mutual insurance company under a plan under
2010+21 this article must be conducted in compliance with IC 27-1-8.
2011+22 (b) The commissioner, the attorney general, and the secretary
2012+23 of state shall:
2013+24 (1) examine; and
2014+25 (2) if warranted, approve;
2015+26 the proposed articles of amendment before the amended articles
2016+27 are submitted to the members for approval.
2017+28 Sec. 11. (a) Before the commissioner issues a permit for
2018+29 completion of organization of the mutual insurance holding
2019+30 company and a certificate of authority for the reorganized insurer
2020+31 under subsection (b), the commissioner must:
2021+32 (1) issue notice to the applicant that the commissioner has
2022+33 approved the plan of reorganization of the applicant under
2023+34 this article; and
2024+35 (2) receive the minutes of the meeting of the members at
2025+36 which the plan was approved under this article.
2026+37 (b) After the events referred to in subsection (a), the
2027+38 commissioner shall issue:
2028+39 (1) a permit for completion of organization of the mutual
2029+40 insurance holding company as provided in IC 27-1-6-11; and
2030+41 (2) a certificate of authority for the reorganized insurer as
2031+42 provided in IC 27-1-8-9.
2032+EH 1329—LS 7406/DI 55 46
2033+1 Sec. 12. (a) A plan of reorganization is effective when:
2034+2 (1) the commissioner has issued the permit for completion of
2035+3 organization of the mutual insurance holding company; and
2036+4 (2) the certificate of authority for the reorganized insurer has
2037+5 been:
2038+6 (A) issued by the commissioner under this chapter; and
2039+7 (B) recorded in the office of the county recorder of the
2040+8 county in which the principal office of the reorganized
2041+9 insurer is located.
2042+10 (b) A plan to issue stock is effective on the date on which the
2043+11 stock is issued in compliance with this article.
2044+12 Sec. 13. The commissioner may, at the applicant's expense, hire
2045+13 attorneys, actuaries, accountants, investment bankers, and other
2046+14 experts as may be reasonably necessary to assist the commissioner
2047+15 in reviewing an application.
2048+16 Chapter. 5. Mutual Insurance Holding Companies
2049+17 Sec. 1. A mutual insurance holding company organized under
2050+18 this article is subject to any rules adopted by the commissioner
2051+19 under IC 4-22-2.
2052+20 Sec. 2. The articles of incorporation of a mutual insurance
2053+21 holding company must contain the following or provisions at least
2054+22 substantially equivalent to the following:
2055+23 (1) The name of the mutual insurance holding company,
2056+24 which must include the term "mutual" or the abbreviation
2057+25 "MHC".
2058+26 (2) A provision specifying that one (1) purpose of the mutual
2059+27 insurance holding company is, at all times, to have the direct
2060+28 or indirect power to cast at least a majority of the votes for
2061+29 the election of directors of each stock insurance company
2062+30 subsidiary and any intermediate stock holding company.
2063+31 (3) A provision specifying that the mutual insurance holding
2064+32 company does not have the power to engage in the business of
2065+33 issuing insurance policies or contracts, except through a stock
2066+34 insurance company subsidiary.
2067+35 (4) A provision specifying that the mutual insurance holding
2068+36 company is not authorized to issue voting stock.
2069+37 (5) A provision setting forth any rights of members of the
2070+38 mutual insurance holding company in the equity of the mutual
2071+39 insurance holding company upon dissolution or liquidation.
2072+40 (6) A provision specifying that:
2073+41 (A) a member of the mutual insurance holding company is
2074+42 not, as a member, personally liable for the acts, debts,
2075+EH 1329—LS 7406/DI 55 47
2076+1 liabilities, or obligations of the mutual insurance holding
2077+2 company; and
2078+3 (B) no assessment of any kind may be imposed upon the
2079+4 members of the mutual insurance holding company by any
2080+5 person, including:
2081+6 (i) the board of directors, members, or creditors of the
2082+7 mutual insurance holding company; and
2083+8 (ii) any governmental office or official, including the
2084+9 commissioner;
2085+10 because of any liability of any company or because of any
2086+11 act, debt, or liability of the mutual insurance holding
2087+12 company.
2088+13 Sec. 3. The members of a mutual insurance holding company
2089+14 have the rights and obligations specified in:
2090+15 (1) this article; and
2091+16 (2) the articles of incorporation and bylaws of the mutual
2092+17 insurance holding company.
2093+18 Sec. 4. (a) With the written approval of the commissioner, and
2094+19 subject to any conditions that the commissioner may impose, a
2095+20 mutual insurance holding company may do any of the following:
2096+21 (1) Merge or consolidate with, or acquire the assets of:
2097+22 (A) a mutual insurance holding company licensed under
2098+23 this article; or
2099+24 (B) any similar entity organized under the laws of any
2100+25 other state.
2101+26 (2) Either alone or together with one (1) or more of an
2102+27 intermediate stock holding company, a stock insurance
2103+28 company subsidiaries or other subsidiaries, directly or
2104+29 indirectly, acquire the stock or assets of:
2105+30 (A) a stock insurance company;
2106+31 (B) a mutual insurance company that is reorganized under
2107+32 this article or the law of its state of organization; or
2108+33 (C) a mutual insurance company.
2109+34 (3) Acquire a stock insurance company through the merger of
2110+35 the stock insurance company or its parent company, as
2111+36 applicable, into:
2112+37 (A) a stock insurance company subsidiary; or
2113+38 (B) an intermediate stock holding company subsidiary or
2114+39 the mutual insurance holding company.
2115+40 (b) A mutual insurance holding company and its affiliates may:
2116+41 (1) establish any other type of entity as otherwise permitted
2117+42 by law; and
2118+EH 1329—LS 7406/DI 55 48
2119+1 (2) acquire the stock or assets of any other entity or person as
2120+2 otherwise permitted by law.
2121+3 (c) Whenever a mutual insurance holding company:
2122+4 (1) holds;
2123+5 (2) acquires; or
2124+6 (3) plans to acquire;
2125+7 more than fifty percent (50%) of the voting capital stock of a stock
2126+8 insurance company, the mutual insurance holding company must
2127+9 submit to the commissioner a description of any membership
2128+10 interests of policyholders of the stock insurance company in the
2129+11 mutual insurance holding company.
2130+12 Sec. 5. (a) Except as provided in subsection (b), a mutual
2131+13 insurance holding company:
2132+14 (1) has and may exercise all the rights and privileges of
2133+15 insurance companies formed under this title; and
2134+16 (2) is subject to all of the requirements and regulations
2135+17 imposed upon insurance companies formed under this title.
2136+18 (b) The exceptions referred to in subsection (a) are as follows:
2137+19 (1) A mutual insurance holding company has no right or
2138+20 privilege to write insurance (except through a stock insurance
2139+21 company subsidiary) and is not subject to any requirement or
2140+22 rule adopted under IC 4-22-2 relating to the writing of
2141+23 insurance.
2142+24 (2) A mutual insurance holding company is not subject to the
2143+25 surplus requirements in IC 27-1-6-15.
2144+26 (3) A mutual insurance holding company is not subject to the
2145+27 deposit requirement in IC 27-1-6-15(d).
2146+28 (4) A mutual insurance holding company is not subject to the
2147+29 investment requirements under IC 27-1-12, IC 27-1-13, or
2148+30 IC 27-1-23-2.6 that limit or restrict investments in
2149+31 subsidiaries.
2150+32 (5) A mutual insurance holding company is not subject to
2151+33 risk-based capital requirements under IC 27-1-36.
2152+34 (6) A mutual insurance holding company is not subject to a
2153+35 requirement under this title if the commissioner determines
2154+36 by order or rule adopted by the commissioner under
2155+37 IC 4-22-2 that the requirement does not apply to the mutual
2156+38 insurance holding company.
2157+39 (7) A mutual insurance holding company is not subject to any
2158+40 requirement or rule adopted under IC 4-22-2 that is imposed
2159+41 upon insurance companies formed under this title to the
2160+42 extent that the requirement or rule is in conflict with this
2161+EH 1329—LS 7406/DI 55 49
2162+1 article.
2163+2 Sec. 6. (a) Not later than June 1 of each year, each mutual
2164+3 insurance holding company must file with the commissioner an
2165+4 annual statement consisting of the following information:
2166+5 (1) Audited financial statements, including:
2167+6 (A) an income statement;
2168+7 (B) a balance sheet; and
2169+8 (C) a statement of cash flows.
2170+9 (2) Complete information on the status of any condition
2171+10 imposed in connection with the approval of a plan of
2172+11 reorganization.
2173+12 (3) An investment plan covering all assets of the mutual
2174+13 insurance holding company.
2175+14 (4) A statement disclosing any intention to pledge, borrow
2176+15 against, alienate, hypothecate, or in any way encumber the
2177+16 assets of the mutual insurance holding company.
2178+17 (b) The commissioner, through an order or by a rule adopted
2179+18 under IC 4-22-2, may waive or suspend all or any part of the
2180+19 requirements of subsection (a) for a particular mutual insurance
2181+20 holding company or class of mutual insurance holding companies.
2182+21 Sec. 7. (a) A mutual insurance holding company, an
2183+22 intermediate stock holding company, and stock insurance company
2184+23 subsidiaries that are owned entirely or in part, directly or
2185+24 indirectly, by the mutual insurance holding company constitute an
2186+25 insurance holding company system (as defined in IC 27-1-23-1).
2187+26 (b) Notwithstanding subsection (a), a separate filing or approval
2188+27 is not required under IC 27-1-23 for a reorganization that:
2189+28 (1) is included in a plan approved under this article; and
2190+29 (2) does not involve the acquisition of control of an insurance
2191+30 company that is not affiliated with the applicant before the
2192+31 reorganization.
2193+32 Sec. 8. A membership interest in a mutual insurance holding
2194+33 company does not constitute a security under Indiana law.
2195+34 Sec. 9. A mutual insurance holding company may convert to a
2196+35 stock company under IC 27-15 as though the mutual insurance
2197+36 holding company were a mutual insurance company.
2198+37 Chapter 6. Miscellaneous Provisions
2199+38 Sec. 1. (a) This article, while independent of any other law, is
2200+39 supplemental to IC 27-1-2 through IC 27-1-20.
2201+40 (b) All provisions of IC 27-1-2 through IC 27-1-20 are fully and
2202+41 completely applicable to this article in the same manner as if the
2203+42 provisions of this article had been an original part of IC 27-1-2
2204+EH 1329—LS 7406/DI 55 50
2205+1 through IC 27-1-20. If any conflict exists between this article and
2206+2 IC 27-1-2 through IC 27-1-20, this article is controlling.
2207+3 Sec. 2. All information, documents, and copies of information
2208+4 and documents obtained by or disclosed to the commissioner or to
2209+5 any other person in the course of an examination or approval of a
2210+6 plan under this article:
2211+7 (1) are declared confidential for purposes of IC 5-14-3-4(a)(1);
2212+8 (2) shall be given confidential treatment;
2213+9 (3) are not subject to subpoena; and
2214+10 (4) shall not be made public by the commissioner or any other
2215+11 person, except to insurance departments of other states with
2216+12 the prior written consent of the applicant.
2217+13 Sec. 3. Any action:
2218+14 (1) challenging the validity of; or
2219+15 (2) arising out of;
2220+16 an action that is taken or proposed to be taken under this article
2221+17 must commence not later than thirty (30) days after the approval
2222+18 by the commissioner of the plan under which or in respect of which
2223+19 the action is taken or proposed to be taken.
2224+20 Sec. 4. The provisions of this article are severable in the manner
2225+21 provided in IC 1-1-1-8(b).
2226+22 Sec. 5. (a) A person who is aggrieved by an agency action of the
2227+23 commissioner under this article may petition for judicial review of
2228+24 the action in accordance, so far as practicable, with IC 4-21.5-5.
2229+25 (b) A person who is aggrieved by a failure of the commissioner
2230+26 to act or make a determination required by this article may bring
2231+27 an action for mandate in the circuit court of Marion County to
2232+28 compel the commissioner to act or make the determination.
2233+29 SECTION 30. IC 27-19-1-5 IS ADDED TO THE INDIANA CODE
2234+30 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
2235+31 1, 2023]: Sec. 5. For the purposes of this article, an individual who
2236+32 continues to pay premiums for a policy or contract offered by a
2237+33 qualified health plan issuer in a benefit year that follows the benefit
2238+34 year in which the individual purchased the original policy or
2239+35 contract is considered to have purchased a new policy or contract
2240+36 for the purposes of 45 CFR 147.106(h)(2).
2241+37 SECTION 31. IC 35-40-5-8.5, AS ADDED BY P.L.78-2018,
2242+38 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2243+39 MAY 1, 2023]: Sec. 8.5. (a) This section applies if:
2244+40 (1) a defendant has filed an appeal of the defendant's conviction;
2245+41 or
2246+42 (2) the state has filed an appeal in connection with criminal
2247+EH 1329—LS 7406/DI 55 51
2248+1 proceedings against a defendant.
2249+2 (b) A:
2250+3 (1) victim or alleged victim; or
2251+4 (2) spouse or member of the immediate family (as defined in
2252+5 IC 27-14-1-17 (before its repeal) or IC 27-14.5-1-16) of the
2253+6 victim or alleged victim, if:
2254+7 (A) the victim or alleged victim is deceased; and
2255+8 (B) the spouse or the immediate family member is not a
2256+9 defendant in the criminal case;
2257+10 in a case described in subsection (a) is entitled, at no charge, to an
2258+11 electronic copy of the transcript prepared for appeal in the case
2259+12 described in subsection (a).
2260+13 (c) The trial court clerk shall provide the victim or alleged victim (or
2261+14 spouse or immediate family member) with an electronic copy of the
2262+15 transcript as soon as practicable after the court reporter has filed the
2263+16 transcript with the clerk.
2264+17 (d) The victim or alleged victim (or spouse or immediate family
2265+18 member) is not entitled to any confidential information that the court
2266+19 has excluded from public access under the Indiana rules of appellate
2267+20 procedure, the court administrative rules adopted by the supreme court,
2268+21 or any other statute or court rule.
2269+22 SECTION 32. An emergency is declared for this act.
2270+EH 1329—LS 7406/DI 55 52
2271+COMMITTEE REPORT
2272+Mr. Speaker: Your Committee on Insurance, to which was referred
2273+House Bill 1329, has had the same under consideration and begs leave
2274+to report the same back to the House with the recommendation that said
2275+bill be amended as follows:
2276+Page 4, line 33, delete "four (4)" and insert "two (2)".
2277+Page 6, delete lines 39 through 40, begin a new line block indented
2278+and insert:
2279+"(1) act in any manner in relation to claims for personal
2280+injury or automobile liability; or".
2281+Page 14, delete lines 16 through 42.
2282+Delete pages 15 through 16.
2283+Page 17, delete lines 1 through 17, begin a new paragraph and
2284+insert:
2285+"SECTION 16. IC 27-1-45.5-3, AS ADDED BY P.L.117-2021,
5892286 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5902287 JULY 1, 2023]: Sec. 3. (a) Before December 31, 2026, IPEP shall
5912288 apply to the insurance commissioner for a certificate of authority to
5922289 transact the business of insurance in Indiana as a domestic tax exempt
593-HEA 1329 — CC 1 15
5942290 reciprocal insurance company.
5952291 (b) The bylaws or articles of incorporation prepared by IPEP for
5962292 purposes of IPEP's conversion to a domestic tax exempt reciprocal
5972293 insurance company must require that the board of the domestic tax
5982294 exempt reciprocal insurance company be made up of at least seven (7)
5992295 individuals.
6002296 (c) IPEP, in converting to a domestic tax exempt reciprocal
6012297 insurance company, must meet the requirements and conditions for the
6022298 formation of a domestic tax exempt reciprocal insurance company set
6032299 forth in IC 27-1-6, including an examination under IC 27-1-6-17.
604-SECTION 18. IC 27-1-47-2, AS ADDED BY P.L.196-2021,
605-SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
606-JULY 1, 2023]: Sec. 2. (a) An insurer, by or through its employees,
607-affiliates, insurance producers, or third-party representatives, or an
608-insurance producer acting on the insurance producer's own behalf, may
609-offer or provide, for free or at a discounted price, value-added
610-products or services:
611-(1) that relate to or are provided in conjunction with a policy of
612-insurance; and
613-(2) that:
614-(A) are primarily intended to:
615-(i) educate about;
616-(ii) assess;
617-(iii) monitor;
618-(iv) mitigate;
619-(v) reduce;
620-(iv) (vi) control; or
621-(v) (vii) prevent;
622-risk, severity, or frequency of loss to persons or to persons'
623-lives, health, or property; or
624-(B) are primarily designed to enhance the health, financial
625-wellness, or safety of persons or of persons' lives, health, or
626-property; or
627-(B) (C) have a nexus to or enhance the value of the insurance
628-benefits of the policy.
629-(b) Offering or providing products or services under this section is
630-not a violation of IC 27-1-20-30, IC 27-1-22-18, or IC 27-4-1-4(a)(8).
631-SECTION 19. IC 27-1-47-3, AS ADDED BY P.L.196-2021,
632-SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
633-JULY 1, 2023]: Sec. 3. (a) Subject to subsection (b), A person holding
634-a license under this title may offer or provide, for free or for less than
635-fair market value, value-added products or services that are at least
636-HEA 1329 — CC 1 16
637-tangentially related to an insurance contract or the administration of an
638-insurance contract if:
639-(1) the value-added products or services:
640-(1) (A) are not contingent upon the purchase of insurance;
641-offered in a manner that is unfairly discriminatory; and
642-(2) (B) are offered on the same terms to all potential insurance
643-customers. made available based on documented, objective
644-criteria; and
645-(2) the documented, objective criteria under which the
646-value-added products or services are offered are maintained
647-for inspection by the insurance commissioner within thirty
648-(30) days after the insurance commissioner's request for
649-inspection.
650-(b) Before:
651-(1) the recipient of services described in subsection (a):
652-(A) receives a quote of insurance; or
653-(B) purchases insurance; or
654-(2) an agent of record is assigned to the recipient of the services;
655-the person offering or providing services under subsection (a) must
656-disclose conspicuously in writing to the recipient of the services that
657-receiving the services is not contingent on the purchase of insurance.
658-The products and services that may be offered or provided for free
659-or for less than fair market value under subsection (a) include but
660-are not limited to the following:
661-(1) Loss control, including wellness programs.
662-(2) Claim filing assistance.
663-(3) Administration of the continuation of health benefits
664-requirements of the Consolidated Omnibus Budget
665-Reconciliation Act (COBRA).
666-(4) Compliance with the requirements of the Health Insurance
667-Portability and Accountability Act (HIPAA).
668-(5) Risk management or analysis.
669-(6) Regulatory and legislative updates.
670-(7) Group policy administration.
671-(8) Payroll, accounting, and tax services.
672-(9) Legal and human resources.
673-(10) Referrals to third-party service providers that offer
674-discounted rates.
675-(c) A value-added product or service that is provided for free or
676-for less than fair market value under subsection (a) by:
677-(1) an insurer, acting by or through its employee, affiliate,
678-insurance producer, or a third-party representative; or
679-HEA 1329 — CC 1 17
680-(2) an insurance producer, acting on the insurance producer's
681-own behalf;
682-shall be provided along with contact information for the purpose
683-of ensuring that the consumer is assisted with questions concerning
684-the product or service.
685-SECTION 20. IC 27-2-28 IS ADDED TO THE INDIANA CODE
2300+SECTION 17. IC 27-2-28 IS ADDED TO THE INDIANA CODE
6862301 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
6872302 JULY 1, 2023]:
6882303 Chapter 28. Notice of Material Change
6892304 Sec. 1. (a) This chapter applies to a personal automobile or
6902305 homeowner's policy that is issued, delivered, amended, or renewed
6912306 after June 30, 2024.
6922307 (b) This chapter does not apply to notices required by the
6932308 federal Fair Credit Reporting Act (15 U.S.C. 1681 et seq.).
6942309 Sec. 2. As used in this chapter, "automobile policy" means a
6952310 policy providing one (1) or more of the types of insurance
6962311 described in Class 2(f) of IC 27-1-5-1.
6972312 Sec. 3. As used in this chapter, "homeowner's policy" means a
2313+EH 1329—LS 7406/DI 55 53
6982314 policy that provides:
6992315 (1) coverage for:
7002316 (A) damage to or the destruction of:
7012317 (i) a structure; or
7022318 (ii) a unit within a structure;
7032319 that is used as a residence by one (1) or more individuals;
7042320 and
7052321 (B) damage to or the loss of personal property that is
7062322 present in the structure or unit described in clause (A);
7072323 caused by perils such as fire, hail, and lightning; and
7082324 (2) coverage against the civil liability of the policyholder
7092325 arising from bodily injury or property damage incurred by
7102326 others.
7112327 Sec. 4. As used in this chapter, "insured" means an individual
712-who is the first named insured on the declarations page of a
713-personal automobile or homeowner's policy.
2328+entitled to coverage under a personal automobile or homeowner's
2329+policy.
7142330 Sec. 5. As used in this chapter, "insurer" refers to an insurer (as
7152331 defined in IC 27-1-2-3) that issues a personal automobile or
7162332 homeowner's policy.
7172333 Sec. 6. (a) As used in this chapter, "material change" means:
718-(1) an increase of more than ten percent (10%) over the
719-expiring premium for; or
720-(2) another adverse or unfavorable change in the terms of
2334+(1) a nonrenewal or cancellation of;
2335+(2) an increase of more than ten percent (10%) over the
2336+expiring premium for;
2337+(3) a reduction in coverage of; or
2338+(4) another adverse or unfavorable change in the terms of
7212339 coverage or amount of;
722-HEA 1329 — CC 1 18
7232340 insurance in connection with a personal automobile or
7242341 homeowner's policy.
7252342 (b) The term does not include the following:
7262343 (1) An increase in the insurer's filed rate plan and automatic
7272344 inflationary increases.
7282345 (2) An additional premium due to a change initiated by the
7292346 insured, such as:
7302347 (A) adding or removing vehicles or drivers;
7312348 (B) adding an endorsement;
7322349 (C) adding additional coverages;
7332350 (D) adding covered premises; or
7342351 (E) increasing coverage limits or deductibles.
7352352 (3) An additional premium due to a change in risk exposure
7362353 as a result of the insured's participation in a usage based or
7372354 telematics insurance program.
738-(4) Changes resulting from a property inspection.
7392355 Sec. 7. As used in this chapter, "personal automobile or
2356+EH 1329—LS 7406/DI 55 54
7402357 homeowner's policy" means:
7412358 (1) an automobile policy; or
7422359 (2) a homeowner's policy;
7432360 that is underwritten on an individual basis for an individual,
7442361 family, or household.
7452362 Sec. 8. (a) An insurer that makes a material change to an
7462363 insured's personal automobile or homeowner's policy shall provide
7472364 a written notice to the insured that:
7482365 (1) explains the principal factors for the material change; or
7492366 (2) states that the insured has a right to request and obtain an
7502367 explanation of the principal factors for the material change.
7512368 (b) An insured who receives a notice of a material change
7522369 described in subsection (a)(2) may submit to the insurer a written
7532370 request for an explanation of the principal factors for the material
7542371 change.
7552372 (c) Upon receiving a request for an explanation under
7562373 subsection (b), the insurer shall provide written notice to the
7572374 insured explaining the principal factors for the material change.
7582375 (d) An insurer shall provide a copy of a written notice provided
759-under subsection (a)(1) or (c):
760-(1) to the insurance producer, if any, who:
761-(A) represented:
762-(i) the insured in obtaining coverage from the insurer; or
763-(ii) the insurer in regard to the providing of coverage to
2376+under subsection (a)(1) or (c) to the insurance producer, if any,
2377+who:
2378+(1) represented:
2379+(A) the insured in obtaining coverage from the insurer; or
2380+(B) the insurer in regard to the providing of coverage to
7642381 the insured; and
765-HEA 1329 — CC 1 19
766-(B) is not an employee, an exclusive agent, or a captive
767-agent of the insurer; and
768-(2) to the insurer's reporting portal for agent
769-communications.
2382+(2) is not an employee, an exclusive agent, or a captive agent
2383+of the insurer.
7702384 (e) A written notice provided under subsection (a) or (c), or a
7712385 written request submitted under subsection (b), must be provided
7722386 by:
7732387 (1) first class mail; or
7742388 (2) electronic delivery as set forth in IC 27-1-43.
7752389 Sec. 9. (a) A written notice provided under section 8(a)(1) or 8(c)
7762390 of this chapter:
7772391 (1) must:
7782392 (A) be sufficiently clear; and
7792393 (B) use language sufficiently specific;
7802394 to enable the insured to identify the basis for the insurer's
7812395 decision to make the material change;
7822396 (2) must include a description of the principal factors most
7832397 heavily weighed by an insurer in making a material change,
7842398 listed in no particular order; and
2399+EH 1329—LS 7406/DI 55 55
7852400 (3) may provide a point of contact through which the insured
7862401 may discuss the reasons for the material change.
7872402 (b) A statement that:
7882403 (1) the material change is based on the insurer's internal
7892404 standards, policies, or models;
7902405 (2) the insured failed to achieve a particular score on the
7912406 insurer's scoring system; or
7922407 (3) contains generalized terms, such as "poor credit history",
7932408 "poor credit rating", or "poor insurance score";
7942409 does not meet the requirements set forth in subsection (a).
7952410 (c) This section does not require the disclosure of factors that
7962411 are otherwise disclosed to the insured.
7972412 Sec. 10. The requirements set forth in this chapter:
7982413 (1) do not replace; and
7992414 (2) are in addition to;
8002415 the requirements under IC 27-7-6 and IC 27-7-12.
8012416 Sec. 11. This chapter does not prohibit an insurer from
8022417 voluntarily providing the disclosures required by this chapter.
8032418 Sec. 12. (a) The commissioner shall adopt rules under IC 4-22-2
8042419 to implement this chapter.
8052420 (b) The rules adopted under subsection (a) must include
8062421 monetary penalties for a violation of this chapter that are
8072422 consistent with other penalties assessed for similar violations under
808-HEA 1329 — CC 1 20
8092423 this title.
8102424 (c) The commissioner is solely responsible for the enforcement
8112425 of this chapter.
8122426 Sec. 13. A violation of this chapter does not create a private
813-cause of action.
814-SECTION 21. IC 27-2-29 IS ADDED TO THE INDIANA CODE
2427+cause of action.".
2428+Page 24, delete line 10.
2429+Page 24, between lines 10 and 11, begin a new line block indented
2430+and insert:
2431+"(40) Violating IC 27-8-13-18.1 concerning a Medicare
2432+product solicitation.".
2433+Page 24, after line 20, begin a new paragraph and insert:
2434+"SECTION 18. IC 27-8-13-10 IS AMENDED TO READ AS
2435+FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 10. (a) The
2436+commissioner shall adopt rules under IC 4-22-2 to establish minimum
2437+standards for:
2438+(1) claims payment;
2439+(2) marketing practices, subject to section 18.1 of this chapter;
2440+(3) compensation arrangements; and
2441+(4) reporting practices;
2442+EH 1329—LS 7406/DI 55 56
2443+for Medicare supplement policies and certificates.
2444+(b) The commissioner may adopt rules under IC 4-22-2 that are
2445+necessary to conform Medicare supplement policies and certificates to
2446+the requirements of federal law and federal regulations. A rule adopted
2447+under this subsection may do the following:
2448+(1) Require refunds or credits if the policies or certificates do not
2449+meet loss ratio requirements.
2450+(2) Establish a uniform methodology for calculating and reporting
2451+loss ratios.
2452+(3) Assure public access to policies, premiums, and loss ratio
2453+information of issuers of Medicare supplement insurance.
2454+(4) Establish a process for approving or disapproving policy forms
2455+and certificate forms and proposed premium increases.
2456+(5) Establish a policy for holding public hearings before approval
2457+of premium increases.
2458+(6) Establish standards for Medicare Select policies and
2459+certificates.
2460+SECTION 19. IC 27-8-13-18.1 IS ADDED TO THE INDIANA
2461+CODE AS A NEW SECTION TO READ AS FOLLOWS
2462+[EFFECTIVE JULY 1, 2023]: Sec. 18.1. (a) As used in this section,
2463+"Medicare product" means any of the following:
2464+(1) A Medicare supplement policy.
2465+(2) A Medicare Advantage plan.
2466+(3) A Medicare prescription drug plan.
2467+(4) A similar policy, plan, or contract based on an individual's
2468+eligibility for Medicare.
2469+(b) As used in this section, "Medicare product solicitation"
2470+means a communication that:
2471+(1) is initiated by:
2472+(A) an individual who is licensed or required to be licensed
2473+as an insurance producer under this title; or
2474+(B) an insurance solicitor (as defined in IC 27-1-2-3);
2475+and made to another individual without the other individual's
2476+advance consent; and
2477+(2) discusses the possible issuance or delivery of a Medicare
2478+product to the other individual.
2479+The term does not include a face-to-face meeting.
2480+(c) Except as provided in subsection (d), if an individual
2481+described in subsection (b)(1)(A) or (b)(1)(B) makes a Medicare
2482+product solicitation, the individual shall comply with applicable
2483+federal marketing and communications requirements for Medicare
2484+products under:
2485+EH 1329—LS 7406/DI 55 57
2486+(1) 42 CFR 422, Subpart V; and
2487+(2) 42 CFR 423, Subpart V;
2488+when making the Medicare product solicitation.
2489+(d) Subsection (c) does not apply to telephone call recording
2490+requirements under 42 CFR 422, Subpart V, and 42 CFR 423,
2491+Subpart V.
2492+(e) An individual described in subsection (b)(1)(A) or (b)(1)(B)
2493+who violates this section commits an unfair and deceptive act or
2494+practice in the business of insurance under IC 27-4-1-4.
2495+SECTION 20. IC 27-2-29 IS ADDED TO THE INDIANA CODE
8152496 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
8162497 JULY 1, 2023]:
8172498 Chapter 29. Transition from Affordable Care Act to Medicare
8182499 Sec. 1. As used in this chapter, "Affordable Care Act" refers to
8192500 the federal Patient Protection and Affordable Care Act (P.L.
8202501 111-148), as amended by the federal Health Care and Education
8212502 Reconciliation Act of 2010 (P.L. 111-152).
8222503 Sec. 2. As used in this chapter, "health maintenance
8232504 organization" has the meaning set forth in IC 27-13-1-19.
8242505 Sec. 3. As used in this chapter, "insurer" has the meaning set
8252506 forth in IC 27-1-2-3(x).
8262507 Sec. 4. As used in this chapter, "Marketplace plan" means:
8272508 (1) a policy of accident and sickness insurance;
8282509 (2) a health maintenance organization contract; or
8292510 (3) an exclusive provider organization plan, point of service
8302511 plan, preferred provider organization plan, or any other plan
8312512 or program;
8322513 that is a qualified health plan available from a marketplace under
8332514 the Affordable Care Act.
8342515 Sec. 5. As used in this chapter, "policy of accident and sickness
8352516 insurance" means a policy or contract providing one (1) or more
8362517 of the kinds of insurance described in Class 1(b) or 2(a) of
8372518 IC 27-1-5-1.
8382519 Sec. 6. As used in this chapter, "qualified health plan" has the
8392520 meaning set forth in Section 1301 of the Affordable Care Act, 42
8402521 U.S.C. 18021.
8412522 Sec. 7. (a) An insurer or health maintenance organization that
8422523 provides coverage under a Marketplace plan shall provide to each
8432524 individual covered under the Marketplace plan, not earlier than six
8442525 (6) months and not later than two (2) months before the birthday
8452526 on which the individual will become sixty-five (65) years of age, a
846-written notice that includes the following:
847-(1) A statement that the individual may be eligible to enroll in
2527+written message that includes the following:
2528+EH 1329—LS 7406/DI 55 58
2529+(1) A statement that the individual will be eligible to enroll in
8482530 Medicare during the individual's initial enrollment period,
8492531 which begins three (3) months before the individual becomes
850-sixty-five (65) years of age. The department of insurance shall
851-HEA 1329 — CC 1 21
852-provide language for the statement required by this
853-subdivision in a bulletin issued under subsection (c).
854-(2) Detailed instructions that the individual may follow to
2532+sixty-five (65) years of age.
2533+(2) This statement: "According to the health insurance
2534+exchange website operated by the federal government under
2535+the Affordable Care Act, in most cases, if you have a
2536+Marketplace plan when you become eligible for Medicare, you
2537+will want to end your Marketplace coverage.".
2538+(3) Detailed instructions that the individual may follow to
8552539 cancel the individual's Marketplace plan before the individual
8562540 becomes covered under Medicare, so that there is no overlap
8572541 between the individual's Marketplace plan coverage and the
8582542 individual's Medicare coverage.
859-(b) A written notice described in subsection (a) shall be sent:
860-(1) by first class mail in the form of a letter addressed to the
861-individual at the address of the individual's residence; or
862-(2) by electronic notification.
863-(c) The department of insurance:
864-(1) shall issue an initial bulletin setting forth language for the
865-statement required by subsection (a)(1); and
866-(2) whenever the department of insurance revises the
867-language described in subdivision (1), shall issue a bulletin
868-setting forth the revised language.
869-SECTION 22. IC 27-4-1-5.6 IS AMENDED TO READ AS
870-FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 5.6. (a) A person who:
871-(1) has submitted a claim to an insurer under an insurance
872-policy; and
873-(2) believes the person has been adversely affected by that an
874-unfair claim settlement practice under described in section 4.5 of
875-this chapter has been committed in connection with the claim;
876-may file a complaint with the commissioner.
877-(b) A complaint may not be filed under subsection (a) by a
878-public adjuster (as defined in IC 27-1-27-1) on behalf of a person
879-described in subsection (a) unless the person described in
880-subsection (a) has given written consent for the public adjuster to
881-file the complaint on the person's behalf.
882-(c) If the commissioner believes an unfair claim settlement practice
883-has occurred, the commissioner shall, within ten (10) business days
884-from the date of receipt of a written complaint, deliver a copy of the
885-complaint to the insurer and shall respond in writing to the complaining
886-party, at the address provided in the complaint, advising the party of
887-the following:
888-(1) The specific action taken by the department on the complaint.
889-(2) Any further investigations or other actions that are intended by
890-the department.
891-(b) (d) An insurer who receives a written notice of complaint under
892-subsection (a) (c) shall promptly conduct an investigation of the
893-matters alleged in the complaint. Within twenty (20) business days
894-HEA 1329 — CC 1 22
895-from the date of receipt of the complaint, the insurer shall provide to
896-the commissioner and the complaining party a written report containing
897-the following information:
898-(1) The specific reasons for actions taken by the insurer with
899-respect to the claim.
900-(2) The specific reasons for any inaction by the insurer with
901-respect to the claim.
902-(3) If the claim has not been settled, a good faith estimate of the
903-time required for settlement.
904-(c) (e) An insurer who commits an unfair claims settlement practice
905-or who fails to comply with this section is subject to action by the
906-commissioner under section 6 of this chapter.
907-(d) (f) Each insurer shall provide to each current policyholder a one
908-(1) time written notice of the remedies provided under this section.
909-Future policyholders shall be notified by the insurer at the time the
910-insurance policy is issued.
911-SECTION 23. IC 27-8-4.9 IS ADDED TO THE INDIANA CODE
912-AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
913-JULY 1, 2023]:
914-Chapter 4.9. Accident and Sickness Insurance: Consent to
915-Electronic Communication
916-Sec. 1. As used in this chapter, "covered individual" means an
917-individual entitled to coverage under a health benefit plan.
918-Sec. 2. (a) As used in this chapter, "health benefit plan" means
919-a policy, contract, certificate, or agreement that is entered into,
920-offered by, or issued by an insurer to provide, deliver, arrange for,
921-pay for, or reimburse any of the costs of health care services.
922-(b) The term includes a health benefit plan that provides:
923-(1) vision coverage; or
924-(2) dental coverage.
925-Sec. 3. (a) As used in this chapter, "plan sponsor" means a
926-person that establishes, adopts, or maintains a health benefit plan
927-that covers individuals in Indiana.
928-(b) The term includes a health benefit plan established, adopted,
929-or maintained:
930-(1) by an employer;
931-(2) jointly by an employer and one (1) or more employee
932-organizations; or
933-(3) by an association, committee, joint board of trustees, or
934-any similar group of representatives.
935-(c) The term does not include an entity regulated under this
936-title.
937-HEA 1329 — CC 1 23
938-Sec. 4. (a) Subject to subsection (b), the plan sponsor of a health
939-benefit plan may, on behalf of all covered individuals of the health
940-benefit plan, provide consent:
941-(1) to the mailing to covered individuals by electronic means
942-otherwise required by IC 27-1-43-3 of all communications
943-related to the health benefit plan; and
944-(2) to the electronic delivery to a covered individual of any
945-health insurance identification card.
946-(b) Before providing consent on behalf of a covered individual
947-under subsection (a), the plan sponsor of a health benefit plan must
948-confirm that the covered individual routinely uses electronic
949-communications during the normal course of the covered
950-individual's employment.
951-Sec. 5. Before providing delivery by electronic means to a
952-covered individual for whom the plan sponsor of a health benefit
953-plan has provided consent under section 4 of this chapter, the
954-insurer that entered into, offered, or issued the policy, contract,
955-certificate, or agreement constituting the health benefit plan must
956-provide the covered individual an opportunity to opt out of the
957-mailing by electronic means of communications related to the
958-health benefit plan and the electronic delivery of health insurance
959-identification cards.
960-SECTION 24. IC 27-9-1-1 IS AMENDED TO READ AS
2543+(b) A written message required by subsection (a):
2544+(1) shall be sent by first class mail in the form of a letter
2545+addressed to the individual at the address of the individual's
2546+residence; and
2547+(2) shall also be sent to the individual as an electronic mail
2548+message if the insurer or health maintenance organization
2549+knows the individual's electronic mail address.
2550+SECTION 21. IC 27-9-1-1 IS AMENDED TO READ AS
9612551 FOLLOWS [EFFECTIVE MAY 1, 2023]: Sec. 1. Proceedings under
9622552 this article apply to the following:
9632553 (1) All insurers who are doing, or who have done, insurance
9642554 business in Indiana, and against whom claims arising from that
9652555 business may exist.
9662556 (2) All insurers who purport to do insurance business in Indiana.
9672557 (3) All insurers who have insureds resident in Indiana.
9682558 (4) All other persons organized or in the process of organizing
9692559 with the intent to do an insurance business in Indiana.
9702560 (5) All nonprofit service plans, fraternal benefit societies, and
9712561 beneficial societies.
9722562 (6) All title insurance companies.
9732563 (7) All health maintenance organizations under IC 27-13.
9742564 (8) All multiple employer welfare arrangements under
9752565 IC 27-1-34.
9762566 (9) All limited service health maintenance organizations under
9772567 IC 27-13-34.
9782568 (10) All mutual insurance holding companies under IC 27-14
9792569 (before its repeal) or IC 27-14.5.
980-HEA 1329 — CC 1 24
981-SECTION 25. IC 27-9-2-1 IS AMENDED TO READ AS
2570+SECTION 22. IC 27-9-2-1 IS AMENDED TO READ AS
2571+EH 1329—LS 7406/DI 55 59
9822572 FOLLOWS [EFFECTIVE MAY 1, 2023]: Sec. 1. (a) Whenever the
9832573 commissioner has reasonable cause to believe, and determines, after a
9842574 hearing held under IC 4-21.5-3, that any domestic insurer has
9852575 committed or engaged in, or is about to commit or engage in, any act,
9862576 practice, or transaction that would subject it to a delinquency
9872577 proceeding under IC 27-9-3-1 or IC 27-9-3-6, the commissioner may
9882578 make and serve upon the insurer and any other persons involved, any
9892579 orders reasonably necessary to correct, eliminate, or remedy that
9902580 conduct, condition, or ground.
9912581 (b) If the commissioner has reasonable cause to believe that any
9922582 domestic insurer is in such condition as to render the continuance of its
9932583 business hazardous to the public or to holders of its policies or
9942584 certificates of insurance, or if that domestic insurer gives its consent,
9952585 the commissioner shall upon his determination issue an order:
9962586 (1) notifying the insurer of his determination; and
9972587 (2) providing the insurer with a written list of the commissioner's
9982588 requirements to correct its business practices.
9992589 (c) If the commissioner makes a determination to supervise an
10002590 insurer subject to an order under subsection (a) or (b), the
10012591 commissioner shall notify the insurer that it is under the supervision of
10022592 the commissioner. If the insurer is a reorganized insurer under IC 27-14
10032593 (before its repeal) or IC 27-14.5, the commissioner may also
10042594 determine to supervise the mutual insurance holding company that is
10052595 affiliated with the reorganized insurer, regardless of whether another
10062596 basis exists for supervising the mutual insurance holding company. If
10072597 the commissioner makes a determination to supervise a mutual
10082598 insurance holding company, the commissioner shall notify the mutual
10092599 insurance holding company that it is under the supervision of the
10102600 commissioner.
10112601 (d) During the period of supervision, the commissioner may appoint
10122602 a supervisor to supervise the insurer. The order appointing a supervisor
10132603 must direct the supervisor to enforce orders issued under subsection (a)
10142604 or (b). The order may also provide that the insurer may not do any of
10152605 the following things, during the period of supervision, without the prior
10162606 approval of the commissioner or his supervisor:
10172607 (1) Dispose of, convey, or encumber any of its assets or its
10182608 business in force.
10192609 (2) Withdraw funds from any of its bank accounts.
10202610 (3) Lend any of its funds.
10212611 (4) Invest any of its funds.
10222612 (5) Transfer any of its property.
1023-HEA 1329 — CC 1 25
10242613 (6) Incur any debt, obligation, or liability.
2614+EH 1329—LS 7406/DI 55 60
10252615 (7) Merge or consolidate with another company.
10262616 (8) Enter into any new reinsurance contract or agreement.
10272617 (9) Restrict the writing of new business on the renewal of existing
10282618 business.
10292619 (e) Any insurer subject to an order under this section must comply
10302620 with the lawful requirements of the commissioner and, if placed under
10312621 supervision, has sixty (60) days from the date the supervision order is
10322622 served within which to comply with the requirements of the
10332623 commissioner. In the event of the insurer's failure to comply within
10342624 those time requirements, the commissioner may institute proceedings
10352625 under IC 27-9-3-1 or IC 27-9-3-6 to have a rehabilitator or liquidator
10362626 appointed, or extend the period of supervision.
10372627 (f) During the period of supervision, the insurer may request the
10382628 commissioner to review any action taken or proposed to be taken by the
10392629 supervisor, specifying the reason the action complained of is believed
10402630 not to be in the best interest of the insurer.
10412631 (g) If a person violates a supervision order issued under this section,
10422632 he is civilly liable up to ten thousand dollars ($10,000).
10432633 (h) The commissioner may apply for and the Marion County circuit
10442634 court may grant, under IC 4-21.5-6, orders as are necessary and proper
10452635 to enforce a supervision order.
10462636 (i) In the event that a person subject to this article knowingly
10472637 violates any valid order of the commissioner issued under this section
10482638 and, as a result of that violation, the net worth of the insurer is reduced
10492639 or the insurer suffers loss it would not otherwise have suffered, that
10502640 person is personally liable to the insurer for the amount of that
10512641 reduction or loss. The commissioner or supervisor is authorized to
10522642 bring an action on behalf of the insurer in the Marion County circuit
10532643 court to recover the amount of the reduction or loss together with any
10542644 costs.
1055-SECTION 26. IC 27-9-3-1 IS AMENDED TO READ AS
2645+SECTION 23. IC 27-9-3-1 IS AMENDED TO READ AS
10562646 FOLLOWS [EFFECTIVE MAY 1, 2023]: Sec. 1. The commissioner
10572647 may apply by petition to the Marion County circuit court for an order
10582648 authorizing him to rehabilitate a domestic insurer or an alien insurer
10592649 domiciled in Indiana on any one (1) of the following grounds:
10602650 (1) The insurer is in a condition that the further transaction of
10612651 business would be hazardous, financially, to its policyholders,
10622652 creditors, or the public.
10632653 (2) There is reasonable cause to believe that there has been
10642654 embezzlement from the insurer, wrongful sequestration or
10652655 diversion of the insurer's assets, forgery or fraud affecting the
1066-HEA 1329 — CC 1 26
10672656 insurer, or other illegal conduct in, by, or with respect to the
2657+EH 1329—LS 7406/DI 55 61
10682658 insurer that if established would endanger assets in an amount
10692659 threatening the solvency of the insurer.
10702660 (3) The insurer has failed to remove any person who in fact has
10712661 executive authority in the insurer, whether an officer, manager,
10722662 general agent, employee, or other person, if the person has been
10732663 found after notice and hearing by the commissioner under
10742664 IC 4-21.5-3 to be dishonest or untrustworthy in a way affecting
10752665 the insurer's business.
10762666 (4) Control of the insurer, whether by stock ownership or
10772667 otherwise, and whether direct or indirect, is in a person found
10782668 after notice and hearing under IC 4-21.5-3 to be untrustworthy.
10792669 (5) Any person who in fact has executive authority in the insurer,
10802670 whether an officer, manager, general agent, director or trustee,
10812671 employee, or other person, has refused to be examined under oath
10822672 by the commissioner concerning its affairs, whether in Indiana or
10832673 elsewhere, and after reasonable notice of the fact the insurer has
10842674 failed promptly and effectively to terminate the employment and
10852675 status of the person and all his influence on management.
10862676 (6) After demand by the commissioner under this article or
10872677 IC 27-1-3, the insurer has failed to promptly make available for
10882678 examination any of its own property, books, accounts, documents,
10892679 or other records, or those of any subsidiary or related company
10902680 within the control of the insurer, or those of any person having
10912681 executive authority in the insurer so far as they concern the
10922682 insurer.
10932683 (7) Without first obtaining the written consent of the
10942684 commissioner, the insurer has transferred, or attempted to
10952685 transfer, in a manner contrary to IC 27-1-23 or IC 27-6,
10962686 substantially all of its entire property or business, or has entered
10972687 into any transaction the effect of which is to merge, consolidate,
10982688 or reinsure substantially its entire property or business in or with
10992689 the property or business of any other person.
11002690 (8) The insurer or its property has been or is the subject of an
11012691 application for the appointment of a receiver, trustee, custodian,
11022692 conservator, or sequestrator or similar fiduciary of the insurer or
11032693 its property otherwise than as authorized under this title, and the
11042694 appointment has been made or is imminent, and the appointment
11052695 might:
11062696 (A) remove the insurer from the jurisdiction of the Indiana
11072697 courts; or
11082698 (B) prejudice orderly delinquency proceedings under this
1109-HEA 1329 — CC 1 27
11102699 article.
2700+EH 1329—LS 7406/DI 55 62
11112701 (9) Within the previous four (4) years the insurer has willfully
11122702 violated its charter or articles of incorporation, its bylaws, this
11132703 title, or any valid order of the commissioner under IC 27-9-2-1.
11142704 (10) The insurer has failed to pay within sixty (60) days after the
11152705 due date any obligation to any state or any political subdivision of
11162706 any state or any judgment entered in any state, if the court in
11172707 which the judgment was entered had jurisdiction over the subject
11182708 matter. However, nonpayment shall not be a ground until sixty
11192709 (60) days after any good faith effort by the insurer to contest the
11202710 obligation has been terminated, whether it is before the
11212711 commissioner or in the courts, or the insurer has systematically
11222712 attempted to compromise or renegotiate previously agreed
11232713 settlements with its creditors on the ground that it is financially
11242714 unable to pay its obligations in full.
11252715 (11) The insurer has failed to file its annual report or other
11262716 financial report required by law and, after written demand by the
11272717 commissioner, has failed to immediately give an adequate
11282718 explanation.
11292719 (12) The board of directors or the holders of a majority of the
11302720 shares entitled to vote, or a majority of those individuals entitled
11312721 to the control of those entities, request or consent to rehabilitation
11322722 under this article.
11332723 (13) The insurer is a mutual insurance holding company under
11342724 IC 27-14 (before its repeal) or IC 27-14.5 and a reorganized
11352725 insurance company that is affiliated with the mutual insurance
11362726 holding company and is or has been the subject of a petition for
11372727 an order authorizing the commissioner to rehabilitate the
11382728 reorganized insurance company under this section or to liquidate
11392729 the reorganized insurance company under section 6 of this
11402730 chapter, regardless of whether another basis exists for petitioning
11412731 for rehabilitation of the mutual insurance holding company.
1142-SECTION 27. IC 27-13-23-1 IS AMENDED TO READ AS
1143-FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 1. The commissioner
1144-may make an examination of a health maintenance organization
1145-whenever necessary for the protection of the interests of the citizens of
1146-Indiana. However, an examination of a health maintenance
1147-organization domiciled in Indiana must be conducted at least once
1148-every three (3) five (5) years.
1149-SECTION 28. IC 27-13-23-2 IS AMENDED TO READ AS
2732+SECTION 24. IC 27-13-23-2 IS AMENDED TO READ AS
11502733 FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 2. The commissioner
11512734 may make an examination concerning the quality management program
1152-HEA 1329 — CC 1 28
11532735 of a health maintenance organization whenever necessary for the
11542736 protection of the citizens of Indiana. However, an examination of the
11552737 quality management program of a health maintenance organization
11562738 domiciled in Indiana must be conducted at least once every three (3)
11572739 five (5) years.
1158-SECTION 29. IC 27-14 IS REPEALED [EFFECTIVE MAY 1,
2740+SECTION 25. IC 27-14 IS REPEALED [EFFECTIVE MAY 1,
11592741 2023]. (Mutual Insurance Holding Company Law).
1160-SECTION 30. IC 27-14.5 IS ADDED TO THE INDIANA CODE
2742+SECTION 26. IC 27-14.5 IS ADDED TO THE INDIANA CODE
2743+EH 1329—LS 7406/DI 55 63
11612744 AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE MAY
11622745 1, 2023]:
11632746 ARTICLE 14.5. MUTUAL INSURANCE HOLDING
11642747 COMPANY LAW
11652748 Chapter 1. General Provisions and Definitions
11662749 Sec. 1. This article may be referred to as the Indiana mutual
11672750 insurance holding company law.
11682751 Sec. 2. (a) This article replaces IC 27-14, as repealed by this
11692752 House Enrolled Act 1329-2023.
11702753 (b) The repeal of IC 27-14 does not affect the validity of any
11712754 mutual insurance company reorganization that was approved
11722755 under IC 27-14. Any existing mutual insurance holding company
11732756 and any related intermediate stock holding company or
11742757 reorganized insurer created or reorganized under IC 27-14 (before
11752758 its repeal) are:
11762759 (1) governed by this article after April 30, 2023; and
11772760 (2) considered created or reorganized as of the date the
11782761 mutual insurance holding company, related intermediate
11792762 stock holding company, or reorganized insurer was created or
11802763 reorganized, as applicable, under IC 27-14.
11812764 Sec. 3. (a) This article is intended to enable mutual insurance
11822765 companies to seek additional capital more effectively to:
11832766 (1) enhance their financial strength and flexibility;
11842767 (2) support long term growth internally and through mergers
11852768 and acquisitions; and
11862769 (3) expand and enhance the domestic insurance companies of
11872770 this state.
11882771 (b) This article provides an alternative organizational structure
11892772 to help strengthen the Indiana mutual insurance industry by
11902773 permitting mutual insurance companies to:
11912774 (1) reorganize into a mutual insurance holding company
11922775 structure; and
11932776 (2) raise capital through the sale of capital stock.
11942777 Sec. 4. The definitions set forth in this chapter apply throughout
1195-HEA 1329 — CC 1 29
11962778 this article.
11972779 Sec. 5. (a) Subject to subsection (b), "acting in concert" means:
11982780 (1) a knowing participation in a joint activity whether or not
11992781 under an express agreement;
12002782 (2) interdependent conscious parallel action toward a common
12012783 goal under an express agreement or otherwise; or
12022784 (3) a combination or pooling of voting interests or other
12032785 interests in the securities of any person for a common purpose
2786+EH 1329—LS 7406/DI 55 64
12042787 under any contract, understanding, relationship, agreement,
12052788 or other arrangement, written or otherwise.
12062789 (b) An employee benefit plan is acting in concert with:
12072790 (1) its trustee; or
12082791 (2) a person who serves in a capacity similar to a trustee;
12092792 solely for the purpose of determining whether capital stock held by
12102793 the trustee or the person in a similar capacity and capital stock
12112794 held by the plan will be aggregated.
12122795 Sec. 6. "Adoption date" means, with respect to a plan, the date
12132796 on which the board of directors approves a plan of reorganization
12142797 or a plan to issue stock.
12152798 Sec. 7. "Affiliate" means a person who, directly or indirectly:
12162799 (1) controls;
12172800 (2) is controlled by; or
12182801 (3) is under common control with;
12192802 another person.
12202803 Sec. 8. "Applicant" means, with respect to a plan, a person that
12212804 has submitted a plan to the commissioner under this article.
12222805 Sec. 9. (a) Subject to subsection (b), "associate" means any of
12232806 the following:
12242807 (1) With respect to a particular person, corporation, business
12252808 entity, or other organization (other than the applicant or an
12262809 affiliate of the applicant) for which the person is:
12272810 (A) an officer;
12282811 (B) a partner; or
12292812 (C) directly or indirectly the beneficial owner of at least
12302813 ten percent (10%) of any class of equity securities.
12312814 (2) With respect to an individual who is a director or an
12322815 officer of the applicant or of any of the applicant's affiliates,
12332816 a:
12342817 (A) spouse; or
12352818 (B) member of the immediate family sharing the same
12362819 household.
12372820 (3) With respect to a particular person, a trust or other estate
1238-HEA 1329 — CC 1 30
12392821 in which the person has a substantial beneficial interest or for
12402822 which the person serves as trustee or in a similar fiduciary
12412823 capacity.
12422824 (b) The term does not apply to a person that:
12432825 (1) has a beneficial interest in; or
12442826 (2) serves as a trustee or in a similar fiduciary capacity for;
12452827 an employee benefit plan.
12462828 Sec. 10. "Commissioner" refers to the insurance commissioner
2829+EH 1329—LS 7406/DI 55 65
12472830 appointed under IC 27-1-1-2.
12482831 Sec. 11. "Company" means any of the following:
12492832 (1) A mutual insurance company.
12502833 (2) A mutual insurance holding company.
12512834 (3) An intermediate stock holding company.
12522835 (4) A reorganized insurer.
12532836 Sec. 12. "Effective date" means, with respect to a plan, the date
12542837 on which the plan becomes effective under this article.
12552838 Sec. 13. "Eligible member" means, with respect to a plan, a
12562839 person who is a member of a mutual insurance company or mutual
12572840 insurance holding company, as applicable, on the adoption date of
12582841 a plan and:
12592842 (1) solely for purposes of receipt of notice of and voting at a
12602843 meeting of members on a plan of reorganization, continues to
12612844 be a member of the mutual insurance company on the record
12622845 date for the meeting of members; or
12632846 (2) solely for purposes of eligibility to receive stock
12642847 subscription rights, if any, under a plan to issue stock,
12652848 continues to be a member of the mutual insurance company
12662849 or mutual insurance holding company, as applicable, on the
12672850 date the commissioner approves the plan to issue stock.
12682851 Sec. 14. "Employee benefit plan" means an employee benefit
12692852 plan established by a mutual insurance holding company or by one
12702853 (1) or more of the subsidiaries of a mutual insurance holding
12712854 company for the sole benefit of its:
12722855 (1) employees; or
12732856 (2) sales agents.
12742857 Sec. 15. "Entity" has the meaning set forth in IC 23-0.5-1.5-8.
12752858 Sec. 16. "Immediate family" means any child, stepchild,
12762859 grandchild, parent, stepparent, grandparent, sibling,
12772860 mother-in-law, father-in-law, daughter-in-law, son-in-law,
12782861 brother-in-law, or sister-in-law. The term includes adoptive
12792862 relationships.
12802863 Sec. 17. "Intermediate stock holding company" means an entity,
1281-HEA 1329 — CC 1 31
12822864 other than a reorganized insurer and its subsidiaries, that:
12832865 (1) is owned entirely or in part, directly or indirectly, by a
12842866 mutual insurance holding company; and
12852867 (2) directly or indirectly owns all or part of the capital stock
12862868 of a reorganized insurer.
12872869 Sec. 18. "Member" means a person that, according to the:
12882870 (1) records; and
12892871 (2) articles of incorporation and bylaws;
2872+EH 1329—LS 7406/DI 55 66
12902873 of a mutual insurance company or mutual insurance holding
12912874 company, as applicable, is a member or policyholder of the mutual
12922875 insurance company or mutual insurance holding company, as
12932876 applicable, with voting rights.
12942877 Sec. 19. "Member's interest" means:
12952878 (1) the voting rights of a member provided by the mutual
12962879 insurance company's or the mutual insurance holding
12972880 company's articles of incorporation or bylaws; and
12982881 (2) the right to receive cash, stock, or other consideration in
12992882 the event of a liquidation or dissolution under IC 27-1-10,
13002883 conversion to a stock company under IC 27-15, or as provided
13012884 by the mutual insurance company's or mutual insurance
13022885 holding company's articles of incorporation or bylaws.
13032886 Sec. 20. "Mutual insurance company" means a mutual insurer
13042887 that is:
13052888 (1) submitting; or
13062889 (2) subject to;
13072890 a plan of reorganization or plan to issue stock under this article.
13082891 Sec. 21. "Mutual insurance holding company" means a mutual
13092892 insurance holding company established under IC 27-14.5-2.
13102893 Sec. 22. "Participating policy" means a policy providing for the
13112894 distribution of policy dividends.
13122895 Sec. 23. "Person" means any of the following:
13132896 (1) An individual.
13142897 (2) A group of individuals acting in concert.
13152898 (3) A trust.
13162899 (4) An association.
13172900 (5) A partnership.
13182901 (6) A limited liability company.
13192902 (7) A corporation.
13202903 (8) A joint venture.
13212904 (9) A government or governmental subdivision, agency, or
13222905 instrumentality.
13232906 (10) Any entity.
1324-HEA 1329 — CC 1 32
13252907 Sec. 24. "Plan" means a plan:
13262908 (1) of reorganization; or
13272909 (2) to issue stock.
13282910 Sec. 25. "Plan of reorganization" means a plan adopted under
13292911 IC 27-14.5-2.
13302912 Sec. 26. "Plan to issue stock" means a plan to issue shares of
13312913 stock of an intermediate stock holding company or a reorganized
13322914 insurer adopted under IC 27-14.5-3.
2915+EH 1329—LS 7406/DI 55 67
13332916 Sec. 27. "Policy" means a contract providing one (1) or more of
13342917 the kinds of insurance described in IC 27-1-5-1.
13352918 Sec. 28. "Reorganized insurer" means an entity:
13362919 (1) that is a domestic stock insurance company that is owned
13372920 entirely or in part by a mutual insurance holding company or
13382921 an intermediate stock holding company; and
13392922 (2) the members of which:
13402923 (A) may be; or
13412924 (B) are entitled to become;
13422925 members of the mutual insurance holding company.
13432926 Sec. 29. "Subsidiary" means, with respect to a particular
13442927 person, an affiliate of the person that is controlled by the person,
13452928 either:
13462929 (1) directly; or
13472930 (2) indirectly through one (1) or more intermediaries.
13482931 Sec. 30. "Voting capital stock" means capital stock whose holder
13492932 has the right to vote in the election of directors of the entity issuing
13502933 the stock.
13512934 Chapter 2. Mutual Insurance Company Reorganization
13522935 Sec. 1. (a) A mutual insurance company may reorganize under
13532936 this chapter as a mutual insurance holding company with one (1)
13542937 or more subsidiaries if the following occur:
13552938 (1) The adoption of a plan of reorganization by the mutual
13562939 insurance company's board of directors in accordance with
13572940 section 4 of this chapter.
13582941 (2) The approval by the commissioner of the mutual insurance
13592942 company's application for reorganization.
13602943 (3) The favorable vote of the mutual insurance company's
13612944 members under sections 8 through 12 of this chapter.
13622945 (b) The subsidiaries of a mutual insurance holding company
13632946 that result from a reorganization of a mutual insurance company
13642947 under this chapter:
13652948 (1) must include at least one (1) stock insurance company
13662949 subsidiary; and
1367-HEA 1329 — CC 1 33
13682950 (2) may include one (1) or more intermediate stock holding
13692951 companies.
13702952 Sec. 2. The reorganization of a mutual insurance company or
13712953 two (2) or more mutual insurance companies into a mutual
13722954 insurance holding company structure under this chapter may be
13732955 accomplished by any means approved by the commissioner,
13742956 including the following:
13752957 (1) The establishment of at least one (1) company.
2958+EH 1329—LS 7406/DI 55 68
13762959 (2) The amendment or restatement of the articles and bylaws
13772960 of any company.
13782961 (3) The transfer or acquisition of any or all of the assets and
13792962 liabilities of any company.
13802963 (4) The transfer or acquisition of any or all of the capital stock
13812964 of any company.
13822965 (5) The merger of two (2) or more companies.
13832966 (6) The merger of a mutual insurance company's members
13842967 into any existing mutual insurance holding company with
13852968 continued corporate existence of the reorganized mutual
13862969 insurance company as a reorganized insurer.
13872970 Sec. 3. After the effective date of the reorganization of a mutual
13882971 insurance company as a mutual insurance holding company under
13892972 this chapter, the mutual insurance holding company must at all
13902973 times have the direct or indirect power to cast at least a majority
13912974 of the votes for the election of the members of the board of
13922975 directors of:
13932976 (1) each stock insurance company subsidiary; and
13942977 (2) any intermediate stock holding company.
13952978 Sec. 4. A plan of reorganization under this chapter must be
13962979 adopted by:
13972980 (1) a vote of not less than two-thirds (2/3) of the members of
13982981 the board of directors of the mutual insurance company; or
13992982 (2) in the case of the formation of any intermediate stock
14002983 insurance holding company that is not concurrent with the
14012984 formation of the mutual insurance holding company, by a vote
14022985 of not less than two-thirds (2/3) of the members of the board
14032986 of directors of the mutual insurance holding company.
14042987 Sec. 5. Not later than ninety (90) days after the adoption of a
14052988 plan of reorganization and before a vote on the plan by the
14062989 members, the company adopting the plan of reorganization must
14072990 file with the commissioner an application containing the following:
14082991 (1) A plan of reorganization.
14092992 (2) The form of the notice, proxy statement, and the proxy
1410-HEA 1329 — CC 1 34
14112993 form to be used in providing notice of the plan of
14122994 reorganization and soliciting the votes of members under
14132995 section 11 of this chapter.
14142996 (3) A list of the officers and directors of each company that is
14152997 affected by the plan of reorganization.
14162998 Sec. 6. (a) A plan of reorganization filed with the commissioner
14172999 under this chapter must include the following:
14183000 (1) A description of all significant terms of the proposed
3001+EH 1329—LS 7406/DI 55 69
14193002 reorganization.
14203003 (2) Any plan to issue stock that may be proposed in connection
14213004 with the plan of reorganization.
14223005 (3) A statement describing how the reorganization is fair and
14233006 equitable to the members.
14243007 (4) With respect to participating policies and contracts of the
14253008 reorganized insurer, a description of the current dividend
14263009 practices of the mutual insurance company and the dividend
14273010 practices to be followed by the reorganized insurer on and
14283011 after the effective date of the plan of reorganization.
14293012 (5) Information sufficient to demonstrate that the financial
14303013 condition of the mutual insurance company will not be
14313014 diminished upon reorganization.
14323015 (6) Provisions that provide the following:
14333016 (A) Immediate membership in the mutual insurance
14343017 holding company for all existing members of the mutual
14353018 insurance company.
14363019 (B) A member's interest in a mutual insurance holding
14373020 company may not be transferred, assigned, pledged, or
14383021 alienated in any manner except in connection with a
14393022 transfer, assignment, pledge, or alienation of the policy
14403023 from which the member's interest is derived.
14413024 (C) A member's interest in a mutual insurance holding
14423025 company will automatically terminate upon the lapse or
14433026 other termination of the policy from which the member's
14443027 interest is derived.
14453028 (7) Provisions for the discretionary granting of membership
14463029 interests for existing or future policyholders of the
14473030 reorganized insurer and any other existing or future direct or
14483031 indirect stock insurance company subsidiary.
14493032 (8) Provisions to ensure that, in the event of proceedings for
14503033 rehabilitation or liquidation involving a stock insurance
14513034 company subsidiary of the mutual insurance holding
14523035 company, the assets of the mutual insurance holding company
1453-HEA 1329 — CC 1 35
14543036 will be available to satisfy the policyholder obligations of the
14553037 stock insurance company subsidiary.
14563038 (9) The proposed articles of incorporation and bylaws of the
14573039 mutual insurance holding company, intermediate stock
14583040 holding company, and reorganized insurer or proposed
14593041 amendments thereto as necessary to effectuate the
14603042 reorganization.
14613043 (10) A certification that the plan of reorganization has been
3044+EH 1329—LS 7406/DI 55 70
14623045 duly adopted by a vote of not less than two-thirds (2/3) of the
14633046 members of the board of directors of the mutual insurance
14643047 company.
14653048 (11) The names, addresses, and occupational information of
14663049 all corporate officers and all members of the board of
14673050 directors of the proposed mutual insurance holding company.
14683051 (12) A description of any plans for the initial sale of stock of
14693052 the intermediate stock holding company or reorganized
14703053 insurer.
14713054 (13) With regard to a policy of the mutual insurance company
14723055 in force on the effective date of a plan of reorganization, a
14733056 provision that provides the policy continues to remain in force
14743057 under the policy's terms as the policy of the reorganized
14753058 insurer.
14763059 (14) Any other information requested by the commissioner.
14773060 (b) A plan of reorganization that is filed with the commissioner
14783061 under this chapter may also include any other provision acceptable
14793062 to the commissioner.
14803063 Sec. 7. A plan of reorganization that is adopted by the board of
14813064 directors of the applicant may be amended or terminated by a vote
14823065 of not less than two-thirds (2/3) of the members of the board of
14833066 directors of the applicant:
14843067 (1) in response to the comments or recommendations of the
14853068 commissioner, or any other state or federal agency or entity,
14863069 before any solicitation of proxies from the members to vote on
14873070 the plan of reorganization;
14883071 (2) at any time before the members vote on the plan of
14893072 reorganization; or
14903073 (3) otherwise, at any time, with the consent of the
14913074 commissioner.
14923075 Sec. 8. (a) A plan of reorganization must be submitted for
14933076 approval by the members at a special or annual meeting of
14943077 members held in accordance with IC 27-1-7-7.
14953078 (b) The meeting of members under subsection (a) must be held
1496-HEA 1329 — CC 1 36
14973079 after the commissioner has approved the plan under IC 27-14.5-4.
14983080 Sec. 9. In accordance with IC 27-1-7-9, a member:
14993081 (1) may vote in person or by proxy; and
15003082 (2) is entitled to cast only one (1) vote on the proposed plan of
15013083 reorganization, regardless of the number of policies or the
15023084 amount of insurance that the member may have with the
15033085 applicant or any affiliate of the applicant.
15043086 Sec. 10. All members, in accordance with IC 27-1-7-7, must be
3087+EH 1329—LS 7406/DI 55 71
15053088 provided with notice of the meeting at which the plan of
15063089 reorganization will be submitted for approval by the members in
15073090 the manner outlined in the plan of reorganization approved by the
15083091 commissioner.
15093092 Sec. 11. A person soliciting a proxy from a member shall
15103093 provide all members with a proxy statement that:
15113094 (1) identifies the person soliciting the proxy;
15123095 (2) informs the member of the right to vote upon the plan of
15133096 reorganization and the vote required for approval;
15143097 (3) briefly describes the proposed plan of reorganization and
15153098 any voting capital stock to be offered;
15163099 (4) explains the use of any new capital to be raised; and
15173100 (5) describes any employee benefit plan or stock option plan.
15183101 Sec. 12. A plan of reorganization is approved under this chapter
15193102 upon the affirmative vote of at least a majority of the votes cast by
15203103 eligible members either in person or by proxy.
15213104 Sec. 13. Not later than thirty (30) days after the members have
15223105 approved a plan of reorganization under this chapter, the applicant
15233106 must file with the commissioner the minutes of the meeting at
15243107 which the plan of reorganization was approved.
15253108 Sec. 14. The reorganized insurer to which insurance policies,
15263109 contracts, and other assets and obligations are transferred in
15273110 connection with a plan of reorganization under this chapter has,
15283111 with respect to the insurance policies, contracts, and other assets
15293112 and obligations, all rights, liabilities, and authority of the mutual
15303113 insurance company that is subject to the plan of reorganization.
15313114 Sec. 15. If a proceeding is pending against a mutual insurance
15323115 company that is the subject of a plan of reorganization under this
15333116 chapter:
15343117 (1) the proceeding may be continued against the reorganized
15353118 insurer under its former name after the effective date of the
15363119 reorganization, as if the reorganization had not occurred; or
15373120 (2) the reorganized insurer that succeeds to the mutual
15383121 insurance company's business may be substituted in the
1539-HEA 1329 — CC 1 37
15403122 proceeding for the mutual insurance company.
15413123 Sec. 16. The reorganized insurer, at its discretion, may retain
15423124 the name the reorganized insurer had prior to its reorganization
15433125 into a mutual insurance holding company structure.
15443126 Chapter 3. Issuance of Capital Stock
15453127 Sec. 1. (a) Subject to subsection (c), a reorganized insurer may
15463128 issue shares of any class or type of stock permitted under this title.
15473129 (b) Subject to subsection (c), an intermediate stock holding
3130+EH 1329—LS 7406/DI 55 72
15483131 company may issue any class or type of stock permitted by the law
15493132 under which the intermediate stock holding company is organized.
15503133 (c) A reorganized insurer and an intermediate stock holding
15513134 company may issue shares of stock to a person or entity other than:
15523135 (1) the mutual insurance holding company of which it is a
15533136 subsidiary; or
15543137 (2) an intermediate stock holding company that is a subsidiary
15553138 of the mutual insurance holding company referred to in
15563139 subdivision (1);
15573140 only in compliance with this chapter.
15583141 Sec. 2. A plan to issue stock under this chapter must be adopted:
15593142 (1) by a vote of not less than two-thirds (2/3) of the members
15603143 of the board of directors of the mutual insurance company; or
15613144 (2) in the case of a plan to issue shares of stock that is not
15623145 concurrent with the formation of the mutual insurance
15633146 holding company, by a vote of not less than two-thirds (2/3) of
15643147 the members of the board of directors of the mutual insurance
15653148 holding company and the reorganized insurer or intermediate
15663149 stock holding company proposing to issue the stock.
15673150 Sec. 3. A board of directors that adopts a plan to issue stock
15683151 under this chapter may amend or withdraw the plan at any time
15693152 before the effective date by a vote of not less than two-thirds (2/3)
15703153 of the members of the board of directors. However, after the
15713154 commissioner has approved a plan to issue stock, the plan may not
15723155 be amended unless the commissioner approves the amendment.
15733156 Sec. 4. Not later than ninety (90) days after the adoption of a
15743157 plan to issue stock, the reorganized insurer or intermediate stock
15753158 holding company adopting the plan must file with the
15763159 commissioner an application that contains the following:
15773160 (1) A proposed plan to issue stock.
15783161 (2) The form of notice to be sent to members informing
15793162 members of the member's right to vote on the plan.
15803163 (3) The form of the proxy statement to be used to solicit the
15813164 votes of members, which must include a description of the
1582-HEA 1329 — CC 1 38
15833165 plan.
15843166 (4) The form of proxy to be solicited from members.
15853167 (5) If it is necessary to amend the current articles of
15863168 incorporation or bylaws of a company that is affected by the
15873169 plan, a copy of the proposed articles of amendment and
15883170 amended bylaws of the company, which must comply with the
15893171 requirements of IC 27-1-8.
15903172 (6) A list of the officers and directors of each company that is
3173+EH 1329—LS 7406/DI 55 73
15913174 affected by the plan.
15923175 (7) A description of the following:
15933176 (A) The stock intended to be offered by the applicant.
15943177 (B) All shareholder rights applicable to the stock intended
15953178 to be offered by the applicant.
15963179 (C) The total number of shares authorized to be issued.
15973180 (D) The estimated number of shares the applicant intends
15983181 to offer.
15993182 (E) The intended date or range of dates for the offering.
16003183 (8) A list of the following:
16013184 (A) The name or names of any underwriter, syndicate
16023185 member, or placement agent involved.
16033186 (B) If known by the applicant, the name or names of each
16043187 person or group of persons who will control five percent
16053188 (5%) or more of the total outstanding shares of the class of
16063189 stock to be offered.
16073190 (C) If any of the persons listed under clause (A) or (B) is a
16083191 corporation or other business entity, the name of each
16093192 member of its board of directors or equivalent
16103193 management body.
16113194 (9) Copies of any filings that have been made, if applicable,
16123195 with the United States Securities and Exchange Commission.
16133196 (10) A description of all expenses expected to be incurred in
16143197 connection with the plan to issue stock.
16153198 (11) Any other information requested by the commissioner.
16163199 Sec. 5. A plan to issue stock that is filed with the commissioner
16173200 under this chapter must do the following:
16183201 (1) Describe the reasons for and the purposes of the proposed
16193202 issuance of shares of stock.
16203203 (2) Require that, after the effective date, the mutual insurance
16213204 holding company must at all times have the direct or indirect
16223205 power to cast at least a majority of the votes for the election
16233206 of the members of the board of directors of the reorganized
16243207 insurer and any intermediate stock holding company.
1625-HEA 1329 — CC 1 39
16263208 (3) Provide that the aggregate total number of shares of stock
16273209 that may be purchased by the directors and officers of the
16283210 mutual insurance holding company and its subsidiaries and
16293211 associates may not exceed thirty percent (30%) of the total
16303212 number of shares of stock to be issued, not including any
16313213 shares attributed to the officers and directors and their
16323214 associates but held by one (1) or more tax-qualified employee
16333215 benefit plans.
3216+EH 1329—LS 7406/DI 55 74
16343217 (4) Provide that the aggregate total number of shares of stock
16353218 that may be purchased by:
16363219 (A) a single director or officer of the mutual insurance
16373220 holding company or the subsidiaries of the mutual
16383221 insurance holding company;
16393222 (B) associates of a person referred to in clause (A); and
16403223 (C) persons acting in concert with a person referred to in
16413224 clause (A) or (B);
16423225 may not exceed five percent (5%) of the total number of
16433226 shares to be issued under the plan, not including any shares
16443227 attributed to the officers and directors and their associates
16453228 but held by one (1) or more tax-qualified employee benefit
16463229 plans.
16473230 (5) Provide that a director, officer, agent, or employee of the
16483231 mutual insurance holding company or its subsidiaries, or an
16493232 associate of a director, officer, agent, or employee may not
16503233 receive any fee, commission, or other valuable consideration
16513234 for aiding, promoting, or assisting in the issuance of stock
16523235 under this section, except for:
16533236 (A) compensation as provided for in the plan and approved
16543237 by the commissioner;
16553238 (B) the person's usual, regular salary or compensation;
16563239 and
16573240 (C) reasonable fees and compensation paid to an individual
16583241 who is an attorney, accountant, or actuary for services
16593242 performed in the individual's independent practice, even
16603243 if the individual is also a director, officer, agent, or
16613244 employee of the mutual insurance holding company or its
16623245 subsidiaries.
16633246 (6) Describe:
16643247 (A) how the offering price of the stock to be sold was
16653248 established; or
16663249 (B) the method by which the offering price will be
16673250 determined.
1668-HEA 1329 — CC 1 40
16693251 Sec. 6. A plan to issue stock in a public offering (other than an
16703252 offering in a private placement or solely in connection with a
16713253 consolidation, merger, share exchange, or other business
16723254 combination or an offering of stock in connection with an employee
16733255 benefit plan or under a stock option plan) must do the following:
16743256 (1) Provide for each eligible member to receive, without
16753257 payment, nontransferable subscription rights to purchase a
16763258 portion of the stock of the applicant and describe how the
3259+EH 1329—LS 7406/DI 55 75
16773260 offering price of the stock that may be purchased was
16783261 established or the method by which that price will be
16793262 determined, except that subscription rights need not be
16803263 granted to an eligible member who resides in a foreign
16813264 country or other jurisdiction for which the commissioner
16823265 determines that any registration, qualification, or filing
16833266 requirements would be impracticable or unduly burdensome
16843267 for reasons of cost or otherwise.
16853268 (2) Specify how subscription rights are to be allocated in
16863269 whole shares of stock among the eligible members.
16873270 (3) Provide a fair and equitable means for allocating shares of
16883271 stock in the event of an over-subscription to the shares by
16893272 eligible members exercising subscription rights received
16903273 under this chapter.
16913274 (4) Provide that any portion of shares not subject to
16923275 subscription rights and any shares of stock not subscribed to
16933276 by eligible members exercising subscription rights received
16943277 under this chapter, or not subscribed to by an employee
16953278 benefit plan or by directors, officers, and employees
16963279 exercising subscription rights, will be sold:
16973280 (A) in a public offering through an underwriter;
16983281 (B) through private placement; or
16993282 (C) by any other method approved by the commissioner
17003283 that is fair and equitable to members.
17013284 (5) Require a person that exercises subscription rights to:
17023285 (A) purchase at least a minimum number of shares of
17033286 stock; or
17043287 (B) a minimum dollar amount of shares of stock.
17053288 (6) Require that a majority of the members of the board of
17063289 directors of the mutual insurance holding company must be
17073290 persons who are not officers or employees of the mutual
17083291 insurance holding company or any of its subsidiaries, unless
17093292 this requirement is waived by the commissioner upon a
17103293 showing of good cause.
1711-HEA 1329 — CC 1 41
17123294 (7) Require that at least three (3) members of the board of
17133295 directors of the:
17143296 (A) intermediate stock holding company; or
17153297 (B) reorganized insurer if there is no intermediate stock
17163298 holding company;
17173299 of the mutual insurance holding company must be persons
17183300 who are not officers or employees of the mutual insurance
17193301 holding company or any of its subsidiaries, unless this
3302+EH 1329—LS 7406/DI 55 76
17203303 requirement is waived by the commissioner upon a showing
17213304 of good cause.
17223305 (8) Provide that the mutual insurance holding company will
17233306 adopt articles of incorporation or articles of amendment that
17243307 include a provision prohibiting the mutual insurance holding
17253308 company from waiving any dividends from its subsidiaries
17263309 except:
17273310 (A) under conditions specified in the articles of
17283311 incorporation; and
17293312 (B) after approval of the waiver by the board of directors
17303313 of the mutual insurance holding company and by the
17313314 commissioner.
17323315 Sec. 7. A reorganized insurer or intermediate stock holding
17333316 company may offer and sell voting capital stock without complying
17343317 with sections 2 through 6 of this chapter if the board of directors
17353318 of the reorganized insurer or intermediate stock holding company
17363319 approves the offer and sale and each of the following conditions are
17373320 satisfied:
17383321 (1) The offer is not the first offering of voting capital stock by
17393322 the reorganized insurer or intermediate stock holding
17403323 company to a person or persons other than a mutual
17413324 insurance holding company or intermediate stock holding
17423325 company.
17433326 (2) The stock that is to be offered and sold is:
17443327 (A) listed or approved for listing upon notice of issuance on
17453328 the New York Stock Exchange, the Nasdaq Stock Market,
17463329 LLC, or any other exchange approved and designated by
17473330 the commissioner; or
17483331 (B) of senior rank or substantially equal rank to stock of
17493332 the same issuer that is listed or designated under clause
17503333 (A).
17513334 (3) The reorganized insurer or intermediate stock holding
17523335 company intending to make the offering delivers to the
17533336 commissioner, at least thirty (30) days before commencing the
1754-HEA 1329 — CC 1 42
17553337 offering, a notice containing the following information:
17563338 (A) The name of the entity intending to make the offering
17573339 and the affiliated mutual insurance holding company.
17583340 (B) The total number and type of shares that are intended
17593341 to be offered.
17603342 (C) The intended date of the sale and whether the sale will
17613343 be by an underwritten public offering, a private offering,
17623344 or otherwise.
3345+EH 1329—LS 7406/DI 55 77
17633346 (D) The exchanges on which the shares (or shares of junior
17643347 or substantially equal rank) are listed, or the national
17653348 market systems on which the shares are designated
17663349 (demonstrating compliance with subdivision (2)), together
17673350 with the symbols under which the shares are traded.
17683351 (E) A record of the trading price and trading volume of the
17693352 previously issued voting capital stock shares during the
17703353 immediately preceding fifty-two (52) weeks or shorter
17713354 period of time if trading for a shorter period of time.
17723355 (4) The commissioner does not issue a written objection to the
17733356 offering and sale of voting capital stock under this section
17743357 without compliance with sections 2 through 6 of this chapter
17753358 within twenty (20) days after the commissioner receives the
17763359 notice filed under subdivision (3).
17773360 (5) The offer and sale of stock is completed not more than one
17783361 hundred eighty (180) days after the commissioner receives the
17793362 notice filed under subdivision (3), except as otherwise
17803363 provided by order of the commissioner.
17813364 Sec. 8. A mutual insurance holding company and its subsidiaries
17823365 and affiliates may not do any of the following:
17833366 (1) Lend funds to any person to finance the purchase of stock
17843367 in a stock offering by a mutual insurance holding company or
17853368 any of its subsidiaries.
17863369 (2) Pay commissions, "special fees", or other special or
17873370 extraordinary compensation to officers, directors, interested
17883371 persons, or affiliates for arranging, promoting, aiding,
17893372 assisting, or participating in the structure or placement of a
17903373 stock offering by the mutual insurance holding company or
17913374 any of its subsidiaries, except to the extent permitted under
17923375 section 5(5) of this chapter.
17933376 Sec. 9. (a) This section does not apply to the payment of
17943377 dividends, savings, or unabsorbed premium deposits allowed or
17953378 returned as set forth in IC 27-7-2-37.5 or other similar programs
17963379 permitted or filed in other states.
1797-HEA 1329 — CC 1 43
17983380 (b) The reorganized insurer must obtain approval by the
17993381 commissioner of the dividend practices with respect to
18003382 participating policies and contracts in force as of the effective date
18013383 of the reorganization to be followed by the reorganized insurer as
18023384 set forth in IC 27-14.5-2-6(4) if the dividend practices of the
18033385 reorganized insurer will be different from the dividend practices
18043386 of the mutual insurance company.
18053387 (c) The commissioner may require the establishment of a closed
3388+EH 1329—LS 7406/DI 55 78
18063389 block or other mechanism that the commissioner finds to be fair
18073390 for the protection of mutual insurance company policyholder
18083391 dividends.
18093392 (d) The dividend practices of the reorganized insurer, the
18103393 requirement to establish a closed block or other mechanism, if any,
18113394 or the terms of the closed block, may be modified after approval
18123395 under subsection (b) or subsequent to a reorganization under
18133396 IC 27-14.5-2 only with the prior approval of the commissioner on
18143397 application of the reorganized insurer.
18153398 (e) Neither an intermediate stock holding company nor a
18163399 reorganized insurer may pay dividends or make other distributions
18173400 with respect to its stock or its shareholders if the reorganized
18183401 insurer has failed to pay policyholder dividends in compliance with
18193402 the dividend practices approved by the commissioner in
18203403 accordance with this section.
18213404 Chapter. 4. Public Hearing, Public Comment, Commissioner
18223405 Approval, and Effective Date of Plan
18233406 Sec. 1. Not more than sixty (60) days after the filing of a plan of
18243407 reorganization that:
18253408 (1) is complete; and
18263409 (2) does not include a plan to issue stock;
18273410 the commissioner shall approve the plan without holding a hearing
18283411 unless the commissioner concludes that one (1) or more of the
18293412 findings listed in section 6 of this chapter is likely to be made.
18303413 Sec. 2. Not more than sixty (60) days after:
18313414 (1) the filing of a plan of reorganization that:
18323415 (A) is complete; and
18333416 (B) includes a plan to issue stock; or
18343417 (2) the filing of an application with respect to a plan to issue
18353418 stock that is:
18363419 (A) complete; and
18373420 (B) filed sometime after the consummation of an approved
18383421 plan of reorganization;
18393422 the commissioner may, if deemed necessary because the
1840-HEA 1329 — CC 1 44
18413423 commissioner believes that one (1) or more of the findings listed in
18423424 section 6 of this chapter may be made, conduct a public hearing or
18433425 allow public comment for a period of not more than sixty (60) days
18443426 to afford interested persons an opportunity to present information,
18453427 views, arguments, or comments in regard to the proposed plan.
18463428 Sec. 3. (a) If the commissioner deems that a public hearing or
18473429 public comment period is necessary, the commissioner shall
18483430 provide written notice of a hearing or comment period held under
3431+EH 1329—LS 7406/DI 55 79
18493432 this chapter at least thirty (30) days before the hearing or sixty (60)
18503433 days before the end of the comment period by publication in:
18513434 (1) a newspaper of general circulation in the city of
18523435 Indianapolis;
18533436 (2) a newspaper of general circulation in the city in which the
18543437 principal office of the applicant is located; and
18553438 (3) a newspaper of general circulation in any other city or
18563439 cities that the commissioner deems appropriate.
18573440 The commissioner may provide written notice of the hearing or
18583441 comment period by other means and to persons that the
18593442 commissioner deems appropriate.
18603443 (b) The notice provided under this section must:
18613444 (1) refer to the applicable statutory provisions;
18623445 (2) state the:
18633446 (A) date, time, and location of the hearing; or
18643447 (B) means by which comments may be submitted; and
18653448 (3) include a brief statement of the subject of the hearing or
18663449 comment period.
18673450 Sec. 4. At a hearing held under this chapter:
18683451 (1) any interested person may appear;
18693452 (2) any interested person may:
18703453 (A) file a written statement; or
18713454 (B) make an oral presentation; and
18723455 (3) at the discretion of the commissioner or the
18733456 commissioner's appointee, testimony may be taken under oath
18743457 or by affirmation.
18753458 Sec. 5. The commissioner shall approve or disapprove any plan
18763459 submitted under this article on or before the later of:
18773460 (1) thirty (30) days after a hearing or comment period held
18783461 under this chapter; or
18793462 (2) thirty (30) days after the commissioner accepts the
18803463 application relating to the plan.
18813464 Sec. 6. The commissioner shall approve a plan submitted under
18823465 this article unless the commissioner makes at least one (1) of the
1883-HEA 1329 — CC 1 45
18843466 following findings with respect to the plan:
18853467 (1) Disapproval of the plan is necessary to prevent practices
18863468 that will cause material financial impairment to the applicant
18873469 or its subsidiaries.
18883470 (2) The financial position or management resources and
18893471 capabilities of the applicant or its subsidiaries or affiliates
18903472 warrant disapproval.
18913473 (3) The plan does not comply with this article.
3474+EH 1329—LS 7406/DI 55 80
18923475 (4) The proposed plan would not be fair and equitable to the
18933476 members.
18943477 Sec. 7. (a) The commissioner shall transmit to the applicant any
18953478 order approving or disapproving a plan submitted under this
18963479 article.
18973480 (b) If the commissioner disapproves a plan, the commissioner
18983481 shall provide the applicant with a written statement detailing:
18993482 (1) the reasons for; and
19003483 (2) all findings in connection with;
19013484 the disapproval.
19023485 Sec. 8. The approval by the commissioner of a plan to issue
19033486 stock expires one hundred eighty (180) days after the date of
19043487 approval, except as otherwise provided by an order of the
19053488 commissioner.
19063489 Sec. 9. Except as otherwise provided in this article, the
19073490 organization of a mutual insurance holding company under a plan
19083491 under this article must be conducted in compliance with the
19093492 provisions of IC 27-1-6 concerning the formation of domestic
19103493 insurance companies.
19113494 Sec. 10. (a) Except as otherwise provided in this article and
19123495 subject to subsection (b), the amendment of the articles of
19133496 incorporation of a mutual insurance company under a plan under
19143497 this article must be conducted in compliance with IC 27-1-8.
19153498 (b) The commissioner, the attorney general, and the secretary
19163499 of state shall:
19173500 (1) examine; and
19183501 (2) if warranted, approve;
19193502 the proposed articles of amendment before the amended articles
19203503 are submitted to the members for approval.
19213504 Sec. 11. (a) Before the commissioner issues a permit for
19223505 completion of organization of the mutual insurance holding
19233506 company and a certificate of authority for the reorganized insurer
19243507 under subsection (b), the commissioner must:
19253508 (1) issue notice to the applicant that the commissioner has
1926-HEA 1329 — CC 1 46
19273509 approved the plan of reorganization of the applicant under
19283510 this article; and
19293511 (2) receive the minutes of the meeting of the members at
19303512 which the plan was approved under this article.
19313513 (b) After the events referred to in subsection (a), the
19323514 commissioner shall issue:
19333515 (1) a permit for completion of organization of the mutual
19343516 insurance holding company as provided in IC 27-1-6-11; and
3517+EH 1329—LS 7406/DI 55 81
19353518 (2) a certificate of authority for the reorganized insurer as
19363519 provided in IC 27-1-8-9.
19373520 Sec. 12. (a) A plan of reorganization is effective when:
19383521 (1) the commissioner has issued the permit for completion of
19393522 organization of the mutual insurance holding company; and
19403523 (2) the certificate of authority for the reorganized insurer has
19413524 been:
19423525 (A) issued by the commissioner under this chapter; and
19433526 (B) recorded in the office of the county recorder of the
19443527 county in which the principal office of the reorganized
19453528 insurer is located.
19463529 (b) A plan to issue stock is effective on the date on which the
19473530 stock is issued in compliance with this article.
19483531 Sec. 13. The commissioner may, at the applicant's expense, hire
19493532 attorneys, actuaries, accountants, investment bankers, and other
19503533 experts as may be reasonably necessary to assist the commissioner
19513534 in reviewing an application.
19523535 Chapter. 5. Mutual Insurance Holding Companies
19533536 Sec. 1. A mutual insurance holding company organized under
19543537 this article is subject to any rules adopted by the commissioner
19553538 under IC 4-22-2.
19563539 Sec. 2. The articles of incorporation of a mutual insurance
19573540 holding company must contain the following or provisions at least
19583541 substantially equivalent to the following:
19593542 (1) The name of the mutual insurance holding company,
19603543 which must include the term "mutual" or the abbreviation
19613544 "MHC".
19623545 (2) A provision specifying that one (1) purpose of the mutual
19633546 insurance holding company is, at all times, to have the direct
19643547 or indirect power to cast at least a majority of the votes for
19653548 the election of directors of each stock insurance company
19663549 subsidiary and any intermediate stock holding company.
19673550 (3) A provision specifying that the mutual insurance holding
19683551 company does not have the power to engage in the business of
1969-HEA 1329 — CC 1 47
19703552 issuing insurance policies or contracts, except through a stock
19713553 insurance company subsidiary.
19723554 (4) A provision specifying that the mutual insurance holding
19733555 company is not authorized to issue voting stock.
19743556 (5) A provision setting forth any rights of members of the
19753557 mutual insurance holding company in the equity of the mutual
19763558 insurance holding company upon dissolution or liquidation.
19773559 (6) A provision specifying that:
3560+EH 1329—LS 7406/DI 55 82
19783561 (A) a member of the mutual insurance holding company is
19793562 not, as a member, personally liable for the acts, debts,
19803563 liabilities, or obligations of the mutual insurance holding
19813564 company; and
19823565 (B) no assessment of any kind may be imposed upon the
19833566 members of the mutual insurance holding company by any
19843567 person, including:
19853568 (i) the board of directors, members, or creditors of the
19863569 mutual insurance holding company; and
19873570 (ii) any governmental office or official, including the
19883571 commissioner;
19893572 because of any liability of any company or because of any
19903573 act, debt, or liability of the mutual insurance holding
19913574 company.
19923575 Sec. 3. The members of a mutual insurance holding company
19933576 have the rights and obligations specified in:
19943577 (1) this article; and
19953578 (2) the articles of incorporation and bylaws of the mutual
19963579 insurance holding company.
19973580 Sec. 4. (a) With the written approval of the commissioner, and
19983581 subject to any conditions that the commissioner may impose, a
19993582 mutual insurance holding company may do any of the following:
20003583 (1) Merge or consolidate with, or acquire the assets of:
20013584 (A) a mutual insurance holding company licensed under
20023585 this article; or
20033586 (B) any similar entity organized under the laws of any
20043587 other state.
20053588 (2) Either alone or together with one (1) or more of an
20063589 intermediate stock holding company, a stock insurance
20073590 company subsidiaries or other subsidiaries, directly or
20083591 indirectly, acquire the stock or assets of:
20093592 (A) a stock insurance company;
20103593 (B) a mutual insurance company that is reorganized under
20113594 this article or the law of its state of organization; or
2012-HEA 1329 — CC 1 48
20133595 (C) a mutual insurance company.
20143596 (3) Acquire a stock insurance company through the merger of
20153597 the stock insurance company or its parent company, as
20163598 applicable, into:
20173599 (A) a stock insurance company subsidiary; or
20183600 (B) an intermediate stock holding company subsidiary or
20193601 the mutual insurance holding company.
20203602 (b) A mutual insurance holding company and its affiliates may:
3603+EH 1329—LS 7406/DI 55 83
20213604 (1) establish any other type of entity as otherwise permitted
20223605 by law; and
20233606 (2) acquire the stock or assets of any other entity or person as
20243607 otherwise permitted by law.
20253608 (c) Whenever a mutual insurance holding company:
20263609 (1) holds;
20273610 (2) acquires; or
20283611 (3) plans to acquire;
20293612 more than fifty percent (50%) of the voting capital stock of a stock
20303613 insurance company, the mutual insurance holding company must
20313614 submit to the commissioner a description of any membership
20323615 interests of policyholders of the stock insurance company in the
20333616 mutual insurance holding company.
20343617 Sec. 5. (a) Except as provided in subsection (b), a mutual
20353618 insurance holding company:
20363619 (1) has and may exercise all the rights and privileges of
20373620 insurance companies formed under this title; and
20383621 (2) is subject to all of the requirements and regulations
20393622 imposed upon insurance companies formed under this title.
20403623 (b) The exceptions referred to in subsection (a) are as follows:
20413624 (1) A mutual insurance holding company has no right or
20423625 privilege to write insurance (except through a stock insurance
20433626 company subsidiary) and is not subject to any requirement or
20443627 rule adopted under IC 4-22-2 relating to the writing of
20453628 insurance.
20463629 (2) A mutual insurance holding company is not subject to the
20473630 surplus requirements in IC 27-1-6-15.
20483631 (3) A mutual insurance holding company is not subject to the
20493632 deposit requirement in IC 27-1-6-15(d).
20503633 (4) A mutual insurance holding company is not subject to the
20513634 investment requirements under IC 27-1-12, IC 27-1-13, or
20523635 IC 27-1-23-2.6 that limit or restrict investments in
20533636 subsidiaries.
20543637 (5) A mutual insurance holding company is not subject to
2055-HEA 1329 — CC 1 49
20563638 risk-based capital requirements under IC 27-1-36.
20573639 (6) A mutual insurance holding company is not subject to a
20583640 requirement under this title if the commissioner determines
20593641 by order or rule adopted by the commissioner under
20603642 IC 4-22-2 that the requirement does not apply to the mutual
20613643 insurance holding company.
20623644 (7) A mutual insurance holding company is not subject to any
20633645 requirement or rule adopted under IC 4-22-2 that is imposed
3646+EH 1329—LS 7406/DI 55 84
20643647 upon insurance companies formed under this title to the
20653648 extent that the requirement or rule is in conflict with this
20663649 article.
20673650 Sec. 6. (a) Not later than June 1 of each year, each mutual
20683651 insurance holding company must file with the commissioner an
20693652 annual statement consisting of the following information:
20703653 (1) Audited financial statements, including:
20713654 (A) an income statement;
20723655 (B) a balance sheet; and
20733656 (C) a statement of cash flows.
20743657 (2) Complete information on the status of any condition
20753658 imposed in connection with the approval of a plan of
20763659 reorganization.
20773660 (3) An investment plan covering all assets of the mutual
20783661 insurance holding company.
20793662 (4) A statement disclosing any intention to pledge, borrow
20803663 against, alienate, hypothecate, or in any way encumber the
20813664 assets of the mutual insurance holding company.
20823665 (b) The commissioner, through an order or by a rule adopted
20833666 under IC 4-22-2, may waive or suspend all or any part of the
20843667 requirements of subsection (a) for a particular mutual insurance
20853668 holding company or class of mutual insurance holding companies.
20863669 Sec. 7. (a) A mutual insurance holding company, an
20873670 intermediate stock holding company, and stock insurance company
20883671 subsidiaries that are owned entirely or in part, directly or
20893672 indirectly, by the mutual insurance holding company constitute an
20903673 insurance holding company system (as defined in IC 27-1-23-1).
20913674 (b) Notwithstanding subsection (a), a separate filing or approval
20923675 is not required under IC 27-1-23 for a reorganization that:
20933676 (1) is included in a plan approved under this article; and
20943677 (2) does not involve the acquisition of control of an insurance
20953678 company that is not affiliated with the applicant before the
20963679 reorganization.
20973680 Sec. 8. A membership interest in a mutual insurance holding
2098-HEA 1329 — CC 1 50
20993681 company does not constitute a security under Indiana law.
21003682 Sec. 9. A mutual insurance holding company may convert to a
21013683 stock company under IC 27-15 as though the mutual insurance
21023684 holding company were a mutual insurance company.
21033685 Chapter 6. Miscellaneous Provisions
21043686 Sec. 1. (a) This article, while independent of any other law, is
21053687 supplemental to IC 27-1-2 through IC 27-1-20.
21063688 (b) All provisions of IC 27-1-2 through IC 27-1-20 are fully and
3689+EH 1329—LS 7406/DI 55 85
21073690 completely applicable to this article in the same manner as if the
21083691 provisions of this article had been an original part of IC 27-1-2
21093692 through IC 27-1-20. If any conflict exists between this article and
21103693 IC 27-1-2 through IC 27-1-20, this article is controlling.
21113694 Sec. 2. All information, documents, and copies of information
21123695 and documents obtained by or disclosed to the commissioner or to
21133696 any other person in the course of an examination or approval of a
21143697 plan under this article:
21153698 (1) are declared confidential for purposes of IC 5-14-3-4(a)(1);
21163699 (2) shall be given confidential treatment;
21173700 (3) are not subject to subpoena; and
21183701 (4) shall not be made public by the commissioner or any other
21193702 person, except to insurance departments of other states with
21203703 the prior written consent of the applicant.
21213704 Sec. 3. Any action:
21223705 (1) challenging the validity of; or
21233706 (2) arising out of;
21243707 an action that is taken or proposed to be taken under this article
21253708 must commence not later than thirty (30) days after the approval
21263709 by the commissioner of the plan under which or in respect of which
21273710 the action is taken or proposed to be taken.
21283711 Sec. 4. The provisions of this article are severable in the manner
21293712 provided in IC 1-1-1-8(b).
21303713 Sec. 5. (a) A person who is aggrieved by an agency action of the
21313714 commissioner under this article may petition for judicial review of
21323715 the action in accordance, so far as practicable, with IC 4-21.5-5.
21333716 (b) A person who is aggrieved by a failure of the commissioner
21343717 to act or make a determination required by this article may bring
21353718 an action for mandate in the circuit court of Marion County to
21363719 compel the commissioner to act or make the determination.
2137-SECTION 31. IC 27-19-1-5 IS ADDED TO THE INDIANA CODE
2138-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
2139-1, 2023]: Sec. 5. For the purposes of this article, an individual who
2140-continues to pay premiums for a policy or contract offered by a
2141-HEA 1329 — CC 1 51
2142-qualified health plan issuer in a benefit year that follows the benefit
2143-year in which the individual purchased the original policy or
2144-contract is considered to have purchased a new policy or contract
2145-for the purposes of 45 CFR 147.106(h)(2).
2146-SECTION 32. IC 35-40-5-8.5, AS ADDED BY P.L.78-2018,
3720+SECTION 27. IC 34-51-2-19 IS AMENDED TO READ AS
3721+FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 19. If a subrogation
3722+claim or other lien or claim that arose out of the payment of medical
3723+expenses or other benefits exists in respect to a claim for personal
3724+injuries or death and the claimant's recovery is diminished:
3725+(1) by comparative fault; or
3726+(2) by reason of the uncollectibility of the full value of the claim
3727+for personal injuries or death resulting from limited liability
3728+insurance; or from any other cause;
3729+the lien or claim shall be diminished in the same proportion as the
3730+claimant's recovery is diminished. The party holding the lien or claim
3731+shall bear a pro rata share of the claimant's attorney's fees and litigation
3732+EH 1329—LS 7406/DI 55 86
3733+expenses.
3734+SECTION 28. IC 35-40-5-8.5, AS ADDED BY P.L.78-2018,
21473735 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21483736 MAY 1, 2023]: Sec. 8.5. (a) This section applies if:
21493737 (1) a defendant has filed an appeal of the defendant's conviction;
21503738 or
21513739 (2) the state has filed an appeal in connection with criminal
21523740 proceedings against a defendant.
21533741 (b) A:
21543742 (1) victim or alleged victim; or
21553743 (2) spouse or member of the immediate family (as defined in
21563744 IC 27-14-1-17 (before its repeal) or IC 27-14.5-1-16) of the
21573745 victim or alleged victim, if:
21583746 (A) the victim or alleged victim is deceased; and
21593747 (B) the spouse or the immediate family member is not a
21603748 defendant in the criminal case;
21613749 in a case described in subsection (a) is entitled, at no charge, to an
21623750 electronic copy of the transcript prepared for appeal in the case
21633751 described in subsection (a).
21643752 (c) The trial court clerk shall provide the victim or alleged victim (or
21653753 spouse or immediate family member) with an electronic copy of the
21663754 transcript as soon as practicable after the court reporter has filed the
21673755 transcript with the clerk.
21683756 (d) The victim or alleged victim (or spouse or immediate family
21693757 member) is not entitled to any confidential information that the court
21703758 has excluded from public access under the Indiana rules of appellate
21713759 procedure, the court administrative rules adopted by the supreme court,
21723760 or any other statute or court rule.
2173-SECTION 33. An emergency is declared for this act.
2174-HEA 1329 — CC 1 Speaker of the House of Representatives
2175-President of the Senate
2176-President Pro Tempore
2177-Governor of the State of Indiana
2178-Date: Time:
2179-HEA 1329 — CC 1
3761+SECTION 29. An emergency is declared for this act.".
3762+Renumber all SECTIONS consecutively.
3763+and when so amended that said bill do pass.
3764+(Reference is to HB 1329 as introduced.)
3765+CARBAUGH
3766+Committee Vote: yeas 12, nays 0.
3767+EH 1329—LS 7406/DI 55 87
3768+COMMITTEE REPORT
3769+Madam President: The Senate Committee on Insurance and
3770+Financial Institutions, to which was referred House Bill No. 1329, has
3771+had the same under consideration and begs leave to report the same
3772+back to the Senate with the recommendation that said bill be
3773+AMENDED as follows:
3774+Page 6, between lines 38 and 39, begin a new line block indented
3775+and insert:
3776+"(1) file an insurance claim with:
3777+(A) an insurer; or
3778+(B) an agent, employee, or representative of an insurer;
3779+on behalf of an insured person;".
3780+Page 6, line 39, delete "(1)" and insert "(2)".
3781+Page 6, line 40, after "liability;" delete "or".
3782+ Page 6, line 41, delete "(2)" and insert "(3)".
3783+Page 6, line 41, delete "claims." and insert "claims; or".
3784+Page 6, between lines 41 and 42, begin a new line block indented
3785+and insert:
3786+"(4) perform:
3787+(A) the role of a roofing contractor;
3788+(B) the role of an appraiser; or
3789+(C) any other role;
3790+with respect to the subject of a claim at the same time that the
3791+public adjuster is providing advice or assistance to an insured
3792+in the adjustment of the claim.".
3793+Page 9, line 23, after "may" insert "be".
3794+Page 13, line 14, delete "five (5)" and insert "three (3)".
3795+Page 14, between lines 15 and 16, begin a new paragraph and insert:
3796+"SECTION 16. IC 27-1-34-8.5 IS ADDED TO THE INDIANA
3797+CODE AS A NEW SECTION TO READ AS FOLLOWS
3798+[EFFECTIVE JULY 1, 2023]: Sec. 8.5. (a) This section applies:
3799+(1) only to an arrangement that provides benefits for a public
3800+entity; and
3801+(2) only with respect to the benefits provided by the
3802+arrangement to a public entity.
3803+(b) A policy of stop loss insurance issued by a reinsurer to an
3804+arrangement providing benefits under this chapter must cover
3805+claims submitted within:
3806+(1) the timely filing limit of the policy; and
3807+(2) the policy provisions of the stop loss coverage.
3808+(c) The department may not adopt or enforce any rule that
3809+would reduce the timely filing limit specified in the policy and the
3810+EH 1329—LS 7406/DI 55 88
3811+policy provisions of the stop loss coverage.".
3812+Page 14, between lines 30 and 31, begin a new paragraph and insert:
3813+"SECTION 17. IC 27-1-47-2, AS ADDED BY P.L.196-2021,
3814+SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3815+JULY 1, 2023]: Sec. 2. (a) An insurer, by or through its employees,
3816+affiliates, insurance producers, or third-party representatives, or an
3817+insurance producer acting on the insurance producer's own behalf, may
3818+offer or provide, for free or at a discounted price, value-added
3819+products or services:
3820+(1) that relate to or are provided in conjunction with a policy of
3821+insurance; and
3822+(2) that:
3823+(A) are primarily intended to:
3824+(i) educate about;
3825+(ii) assess;
3826+(iii) monitor;
3827+(iv) mitigate;
3828+(v) reduce;
3829+(iv) (vi) control; or
3830+(v) (vii) prevent;
3831+risk, severity, or frequency of loss to persons or to persons'
3832+lives, health, or property; or
3833+(B) are primarily designed to enhance the health, financial
3834+wellness, or safety of persons or of persons' lives, health, or
3835+property; or
3836+(B) (C) have a nexus to or enhance the value of the insurance
3837+benefits of the policy.
3838+(b) Offering or providing products or services under this section is
3839+not a violation of IC 27-1-20-30, IC 27-1-22-18, or IC 27-4-1-4(a)(8).
3840+SECTION 18. IC 27-1-47-3, AS ADDED BY P.L.196-2021,
3841+SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3842+JULY 1, 2023]: Sec. 3. (a) Subject to subsection (b), A person holding
3843+a license under this title may offer or provide, for free or for less than
3844+fair market value, value-added products or services that are at least
3845+tangentially related to an insurance contract or the administration of an
3846+insurance contract if:
3847+(1) the value-added products or services:
3848+(1) (A) are not contingent upon the purchase of insurance;
3849+offered in a manner that is unfairly discriminatory; and
3850+(2) (B) are offered on the same terms to all potential insurance
3851+customers. made available based on documented, objective
3852+criteria; and
3853+EH 1329—LS 7406/DI 55 89
3854+(2) the documented, objective criteria under which the
3855+value-added products or services are offered are maintained
3856+for inspection by the insurance commissioner within thirty
3857+(30) days after the insurance commissioner's request for
3858+inspection.
3859+(b) Before:
3860+(1) the recipient of services described in subsection (a):
3861+(A) receives a quote of insurance; or
3862+(B) purchases insurance; or
3863+(2) an agent of record is assigned to the recipient of the services;
3864+the person offering or providing services under subsection (a) must
3865+disclose conspicuously in writing to the recipient of the services that
3866+receiving the services is not contingent on the purchase of insurance.
3867+The products and services that may be offered or provided for free
3868+or for less than fair market value under subsection (a) include but
3869+are not limited to the following:
3870+(1) Loss control, including wellness programs.
3871+(2) Claim filing assistance.
3872+(3) Administration of the continuation of health benefits
3873+requirements of the Consolidated Omnibus Budget
3874+Reconciliation Act (COBRA).
3875+(4) Compliance with the requirements of the Health Insurance
3876+Portability and Accountability Act (HIPAA).
3877+(5) Risk management or analysis.
3878+(6) Regulatory and legislative updates.
3879+(7) Group policy administration.
3880+(8) Payroll, accounting, and tax services.
3881+(9) Legal and human resources.
3882+(10) Referrals to third-party service providers that offer
3883+discounted rates.
3884+(c) A value-added product or service that is provided for free or
3885+for less than fair market value under subsection (a) by:
3886+(1) an insurer, acting by or through its employee, affiliate,
3887+insurance producer, or a third-party representative; or
3888+(2) an insurance producer, acting on the insurance producer's
3889+own behalf;
3890+shall be provided along with contact information for the purpose
3891+of ensuring that the consumer is assisted with questions concerning
3892+the product or service.".
3893+Page 15, line 16, delete "entitled to coverage under" and insert "who
3894+is the first named insured on the declarations page of".
3895+Page 15, delete line 22.
3896+EH 1329—LS 7406/DI 55 90
3897+Page 15, line 23, delete "(2)" and insert "(1)".
3898+Page 15, line 24, after "for;" insert "or".
3899+Page 15, delete line 25.
3900+Page 15, line 26, delete "(4)" and insert "(2)".
3901+Page 15, after line 42, begin a new line block indented and insert:
3902+"(4) Changes resulting from a property inspection.".
3903+Page 16, line 21, delete "(c) to the insurance producer, if any," and
3904+insert "(c):".
3905+Page 16, delete lines 22 through 28, begin a new line block indented
3906+and insert:
3907+"(1) to the insurance producer, if any, who:
3908+(A) represented:
3909+(i) the insured in obtaining coverage from the insurer; or
3910+(ii) the insurer in regard to the providing of coverage to
3911+the insured; and
3912+(B) is not an employee, an exclusive agent, or a captive
3913+agent of the insurer; and
3914+(2) to the insurer's reporting portal for agent
3915+communications.".
3916+Page 17, delete lines 30 through 42.
3917+Delete pages 18 through 25.
3918+Page 26, delete lines 1 through 8.
3919+Page 26, line 41, delete "written message" and insert "notice".
3920+Page 26, line 42, delete "will" and insert "may".
3921+Page 27, line 3, after "age." insert "The department of insurance
3922+shall provide language for the statement required by this
3923+subdivision in a bulletin issued under subsection (c).".
3924+Page 27, delete lines 4 through 8.
3925+Page 27, line 9, delete "(3)" and insert "(2)".
3926+Page 27, line 14, delete "message required by subsection (a):" and
3927+insert "notice described in subsection (a) shall be sent:".
3928+Page 27, line 15, delete "shall be sent".
3929+Page 27, line 17, delete "and" and insert "or".
3930+Page 27, line 18, delete "shall also be sent to the individual as an
3931+electronic mail" and insert "by electronic notification.".
3932+Page 27, delete lines 19 through 20, begin a new paragraph and
3933+insert:
3934+"(c) The department of insurance:
3935+(1) shall issue an initial bulletin setting forth language for the
3936+statement required by subsection (a)(1); and
3937+(2) whenever the department of insurance revises the
3938+language described in subdivision (1), shall issue a bulletin
3939+EH 1329—LS 7406/DI 55 91
3940+setting forth the revised language.".
3941+Page 27, between lines 20 and 21, begin a new paragraph and insert:
3942+"SECTION 19. IC 27-4-1-5.6 IS AMENDED TO READ AS
3943+FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 5.6. (a) A person who:
3944+(1) has submitted a claim to an insurer under an insurance
3945+policy; and
3946+(2) believes the person has been adversely affected by that an
3947+unfair claim settlement practice under described in section 4.5 of
3948+this chapter has been committed in connection with the claim;
3949+may file a complaint with the commissioner.
3950+(b) A complaint may not be filed under subsection (a) by a
3951+public adjuster (as defined in IC 27-1-27-1) on behalf of a person
3952+described in subsection (a) unless the person described in
3953+subsection (a) has given written consent for the public adjuster to
3954+file the complaint on the person's behalf.
3955+(c) If the commissioner believes an unfair claim settlement practice
3956+has occurred, the commissioner shall, within ten (10) business days
3957+from the date of receipt of a written complaint, deliver a copy of the
3958+complaint to the insurer and shall respond in writing to the complaining
3959+party, at the address provided in the complaint, advising the party of
3960+the following:
3961+(1) The specific action taken by the department on the complaint.
3962+(2) Any further investigations or other actions that are intended by
3963+the department.
3964+(b) (d) An insurer who receives a written notice of complaint under
3965+subsection (a) (c) shall promptly conduct an investigation of the
3966+matters alleged in the complaint. Within twenty (20) business days
3967+from the date of receipt of the complaint, the insurer shall provide to
3968+the commissioner and the complaining party a written report containing
3969+the following information:
3970+(1) The specific reasons for actions taken by the insurer with
3971+respect to the claim.
3972+(2) The specific reasons for any inaction by the insurer with
3973+respect to the claim.
3974+(3) If the claim has not been settled, a good faith estimate of the
3975+time required for settlement.
3976+(c) (e) An insurer who commits an unfair claims settlement practice
3977+or who fails to comply with this section is subject to action by the
3978+commissioner under section 6 of this chapter.
3979+(d) (f) Each insurer shall provide to each current policyholder a one
3980+(1) time written notice of the remedies provided under this section.
3981+Future policyholders shall be notified by the insurer at the time the
3982+EH 1329—LS 7406/DI 55 92
3983+insurance policy is issued.
3984+SECTION 20. IC 27-8-4.9 IS ADDED TO THE INDIANA CODE
3985+AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3986+JULY 1, 2023]:
3987+Chapter 4.9. Accident and Sickness Insurance: Consent to
3988+Electronic Communication
3989+Sec. 1. As used in this chapter, "covered individual" means an
3990+individual entitled to coverage under a health benefit plan.
3991+Sec. 2. (a) As used in this chapter, "health benefit plan" means
3992+a policy, contract, certificate, or agreement that is entered into,
3993+offered by, or issued by an insurer to provide, deliver, arrange for,
3994+pay for, or reimburse any of the costs of health care services.
3995+(b) The term includes a health benefit plan that provides:
3996+(1) vision coverage; or
3997+(2) dental coverage.
3998+Sec. 3. (a) As used in this chapter, "plan sponsor" means a
3999+person that establishes, adopts, or maintains a health benefit plan
4000+that covers individuals in Indiana.
4001+(b) The term includes a health benefit plan established, adopted,
4002+or maintained:
4003+(1) by an employer;
4004+(2) jointly by an employer and one (1) or more employee
4005+organizations; or
4006+(3) by an association, committee, joint board of trustees, or
4007+any similar group of representatives.
4008+(c) The term does not include an entity regulated under this
4009+title.
4010+Sec. 4. (a) Subject to subsection (b), the plan sponsor of a health
4011+benefit plan may, on behalf of all covered individuals of the health
4012+benefit plan, provide consent:
4013+(1) to the mailing to covered individuals by electronic means
4014+otherwise required by IC 27-1-43-3 of all communications
4015+related to the health benefit plan; and
4016+(2) to the electronic delivery to a covered individual of any
4017+health insurance identification card.
4018+(b) Before providing consent on behalf of a covered individual
4019+under subsection (a), the plan sponsor of a health benefit plan must
4020+confirm that the covered individual routinely uses electronic
4021+communications during the normal course of the covered
4022+individual's employment.
4023+Sec. 5. Before providing delivery by electronic means to a
4024+covered individual for whom the plan sponsor of a health benefit
4025+EH 1329—LS 7406/DI 55 93
4026+plan has provided consent under section 4 of this chapter, the
4027+insurer that entered into, offered, or issued the policy, contract,
4028+certificate, or agreement constituting the health benefit plan must
4029+provide the covered individual an opportunity to opt out of the
4030+mailing by electronic means of communications related to the
4031+health benefit plan and the electronic delivery of health insurance
4032+identification cards.".
4033+Page 31, between lines 30 and 31, begin a new paragraph and insert:
4034+"SECTION 25. IC 27-13-23-1 IS AMENDED TO READ AS
4035+FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 1. The commissioner
4036+may make an examination of a health maintenance organization
4037+whenever necessary for the protection of the interests of the citizens of
4038+Indiana. However, an examination of a health maintenance
4039+organization domiciled in Indiana must be conducted at least once
4040+every three (3) five (5) years.".
4041+Page 54, delete lines 30 through 42, begin a new paragraph and
4042+insert:
4043+"SECTION 28. IC 27-19-1-5 IS ADDED TO THE INDIANA CODE
4044+AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
4045+1, 2023]: Sec. 5. For the purposes of this article, an individual who
4046+continues to pay premiums for a policy or contract offered by a
4047+qualified health plan issuer in a benefit year that follows the benefit
4048+year in which the individual purchased the original policy or
4049+contract is considered to have purchased a new policy or contract
4050+for the purposes of 45 CFR 147.106(h)(2).".
4051+Renumber all SECTIONS consecutively.
4052+and when so amended that said bill do pass.
4053+(Reference is to HB 1329 as printed February 16, 2023.)
4054+BALDWIN, Chairperson
4055+Committee Vote: Yeas 6, Nays 0.
4056+EH 1329—LS 7406/DI 55 94
4057+SENATE MOTION
4058+Madam President: I move that Engrossed House Bill 1329 be
4059+amended to read as follows:
4060+Page 14, delete lines 28 through 42.
4061+Renumber all SECTIONS consecutively.
4062+(Reference is to EHB 1329 as printed March 31, 2023.)
4063+BALDWIN
4064+EH 1329—LS 7406/DI 55