Indiana House Bill HB1329 Latest Draft

                            First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in  this  style  type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2022 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1329
AN ACT to amend the Indiana Code concerning insurance.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 27-1-15.7-2, AS AMENDED BY P.L.165-2022,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 2. (a) Except as provided in subsection (b) and
section 2.4 of this chapter, to renew a license issued under
IC 27-1-15.6, a resident insurance producer must complete at least
twenty-four (24) hours of credit in continuing education courses, not
more than four (4) hours of which may be in courses concerning one
(1) or a combination of the following:
(1) Sales promotion.
(2) Sales technique.
(3) Motivation.
(4) Psychology.
(5) Time management.
If the insurance producer has a qualification described in
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
a license renewal that occurs after June 30, 2014, at least three (3) of
the hours of credit required by this subsection must be related to ethical
practices in the marketing and sale of life, health, or annuity insurance
products. An attorney in good standing who is admitted to the practice
of law in Indiana and holds a license issued under IC 27-1-15.6 may
HEA 1329 — CC 1 2
complete all or any number of hours of continuing education required
by this subsection by completing an equivalent number of hours in
continuing legal education courses that are related to the business of
insurance.
(b) Except as provided in subsection (c), to renew a license issued
under IC 27-1-15.6, a limited lines producer with a title qualification
under IC 27-1-15.6-7(a)(8) must complete at least seven (7) hours of
credit in continuing education courses related to the business of title
insurance, in a structured setting or comparable self-study, in any of the
following or any combination of the following:
(1) Ethical practices in the marketing and selling of title
insurance, including provisions of the Dodd-Frank Wall Street
Reform and Consumer Protection Act set forth in 12 U.S.C. 2608.
(2) Title insurance underwriting.
(3) Escrow matters.
(4) Matters concerning regulation by the department.
(5) Any other topic related to the marketing and selling of title
insurance.
An attorney in good standing who is admitted to the practice of law in
Indiana and holds a license issued under IC 27-1-15.6 with a title
qualification under IC 27-1-15.6-7(a)(8) may complete all or any
number of hours of continuing education required by this subsection by
completing an equivalent number of hours in continuing legal
education courses related to the business of title insurance or any
aspect of real property law.
(c) The following insurance producers are not required to complete
continuing education courses to renew a license under this chapter:
(1) A limited lines producer who is licensed without examination
under IC 27-1-15.6-18(1).
(2) A limited line credit insurance producer.
(3) A nonresident limited lines producer with a title qualification:
(A) whose home state requires continuing education for a title
qualification; and
(B) who has met the continuing education requirements
described in clause (A).
(d) Except as provided in section 2.2 of this chapter, to satisfy the
requirements of subsection (a) or (b), a licensee may use only those
credit hours earned in continuing education courses completed by the
licensee:
(1) after the effective date of the licensee's last renewal of a
license under this chapter; or
(2) if the licensee is renewing a license for the first time, after the
HEA 1329 — CC 1 3
date on which the licensee was issued the license under this
chapter.
(e) If an insurance producer receives qualification for a license in
more than one (1) line of authority under IC 27-1-15.6, the insurance
producer may not be required to complete a total of more than
twenty-four (24) hours of credit in continuing education courses to
renew the license.
(f) Except as provided in subsection (g), a licensee may receive
credit only for completing the following continuing education courses:
(1) Continuing education courses that have been approved by the
commissioner under section 4 of this chapter.
(2) Continuing education courses that are required for the licensee
under IC 27-19-4-14.
(g) A licensee who teaches a course approved by the commissioner
under section 4 of this chapter shall receive continuing education credit
for teaching the course.
(h) When a licensee renews a license issued under this chapter, the
licensee must submit:
(1) a continuing education statement that:
(A) is in a format authorized by the commissioner;
(B) is signed by the licensee under oath; and
(C) lists the continuing education courses completed by the
licensee to satisfy the continuing education requirements of
this section; and
(2) any other information required by the commissioner.
(i) A continuing education statement submitted under subsection (h)
may be reviewed and audited by the department.
(j) A licensee shall retain a copy of the original certificate of
completion received by the licensee for completion of a continuing
education course.
(k) A licensee who completes a continuing education course that:
(1) is approved by the commissioner under section 4 of this
chapter;
(2) is held in a classroom setting; and
(3) concerns ethics;
shall receive continuing education credit not to exceed four (4) hours
in a renewal period.
SECTION 2. IC 27-1-15.7-2.4 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 2.4. (a) This section applies to an
insurance producer licensed under IC 27-1-15.6 who is subject to
the continuing education requirement set forth in section 2(a) of
HEA 1329 — CC 1 4
this chapter.
(b) If an insurance producer actively participates in a state or
national professional insurance organization, the insurance
commissioner may:
(1) recognize the insurance producer's participation in the
professional insurance organization; and
(2) apply the insurance producer's participation toward
partial satisfaction of the continuing education requirement
set forth in section 2(a) of this chapter.
(c) To be recognized and applied under subsection (b), an
insurance producer's participation in a professional insurance
organization must be one of the following:
(1) Service on the board of directors of:
(A) a state professional insurance organization;
(B) a state chapter of a national professional insurance
organization; or
(C) a national professional insurance organization.
(2) Service on a formal committee of:
(A) a state professional insurance organization;
(B) a state chapter of a national professional insurance
organization; or
(C) a national professional insurance organization.
(3) Service on a formal subcommittee or task force of:
(A) a state professional insurance organization;
(B) a state chapter of a national professional insurance
organization; or
(C) a national professional insurance organization.
(d) Not more than two (2) of the twenty-four (24) total hours of
credit in continuing education courses required of an insurance
producer by section 2(a) of this chapter may be satisfied under this
section in each two (2) year licensing period.
(e) If an insurance producer's participation in a professional
insurance organization is recognized and applied under subsection
(b), one (1) hour of the insurance producer's participation in the
professional insurance organization shall count toward satisfaction
of one (1) hour of the twenty-four (24) total hours of credit in
continuing education courses required by section 2(a) of this
chapter, subject to the limit set forth in subsection (d).
(f) An insurance producer's participation in a professional
insurance organization may not be applied under this section
toward the satisfaction of the requirement under section 2(a) of
this chapter, if applicable, that an insurance producer complete at
HEA 1329 — CC 1 5
least three (3) hours of credit in continuing education courses
related to ethical practices in the marketing and sale of life, health,
or annuity insurance products in each two (2) year licensing
period.
(g) To be recognized and applied under subsection (b) toward
satisfaction of an insurance producer's continuing education
requirements under section 2(a) of this chapter for a two (2) year
licensing period, the insurance producer's participation in a
professional insurance organization must:
(1) occur during that two (2) year licensing period; and
(2) be verified by the professional insurance organization in
a communication submitted to the insurance commissioner
before the deadline (if any) established by the rules adopted
under subsection (h).
(h) The insurance commissioner may adopt rules under
IC 4-22-2 to administer this section.
SECTION 3. IC 27-1-27-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 1. (a) The definitions
set forth in this section apply throughout this chapter.
(b) "Contract" refers to a contract between a public adjuster
and an insured under which:
(1) the public adjuster agrees to provide services for the
insured in the adjustment of an insurance claim; and
(2) the insured agrees to compensate the public adjuster for
those services.
(c) "Firm" includes any corporation, partnership, association,
joint stock company, or individual.
(d) "Independent adjuster" has the meaning set forth in
IC 27-1-28-6.
(e) "Insured" means a person covered by an insurance policy.
(f) "Person" means an individual, a corporation, a limited
liability company, a partnership, or any other legal entity.
(a) (g) The term "Public adjuster" shall include includes the
following:
(1) every individual or corporation who, or which, A person that,
for compensation or reward, renders advice or assistance to the an
insured in the adjustment of a claim or claims for loss or damages
under any policy of insurance covering real or personal property.
and
(2) any A person or corporation who, or which, that advertises,
solicits business, or holds itself out to the public as an adjuster of
such claims described in subdivision (1).
HEA 1329 — CC 1 6
However, no public adjuster shall:
(1) act in any manner in relation to claims for personal injury or
automobile property damage; or
(2) bind the insured in the settlement of claims.
(b) (h) This chapter does not apply to, and the following are not
included in The term "public adjuster" does not include the following:
(1) An attorney at law admitted to practice in the state of Indiana
who adjusts insurance losses in the course of the practice of the
attorney's profession.
(2) An officer, regular salaried employee, or other representative
of:
(A) an insurer; or of
(B) an attorney in fact of any reciprocal insurer of or Lloyd's
underwriter licensed to do business in Indiana;
who adjusts losses arising under an employer's or principal's own
policies.
(3) An adjustment bureau or association owned and maintained
by insurers to adjust or investigate losses of such the insurers, or
any regular salaried employee who devotes substantially all the
employee's time to the business of such an adjustment bureau or
association described in this subdivision.
(4) Any of the following:
(A) A licensed insurance producer. or
(B) An authorized insurer. or
(C) An officer or employee of the same an authorized
insurer who adjusts losses for such the insurer. and any
(D) An insurance producer or representative of a farm mutual
insurance company operating under the farm mutual insurance
laws of this state IC 27-5.1. on behalf of an insurer.
(5) Any independent adjuster representing an insurer.
SECTION 4. IC 27-1-27-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 1.5. A public adjuster shall not:
(1) file an insurance claim with:
(A) an insurer; or
(B) an agent, employee, or representative of an insurer;
on behalf of an insured person;
(2) act in any manner in relation to claims for personal injury
or automobile liability;
(3) bind the insured in the settlement of claims; or
(4) perform:
(A) the role of a roofing contractor;
HEA 1329 — CC 1 7
(B) the role of an appraiser; or
(C) any other role;
with respect to the subject of a claim at the same time that the
public adjuster is providing advice or assistance to an insured
in the adjustment of the claim.
SECTION 5. IC 27-1-27-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 2. (a) No individual or
corporation shall act within Indiana as a public adjuster, or receive,
directly or indirectly, compensation or reward for services rendered in
the adjustment of any claim or claims under the types of insurance
policies set forth in section 1(a) 1(g) of this chapter, unless he, the
individual, or it, is the holder of a certificate of authority to act as such
public adjuster issued by the commissioner of insurance of the state of
Indiana pursuant to this chapter.
(b) Any individual or corporation who, or which, shall have received
from the commissioner of insurance a public adjuster's certificate of
authority shall be styled and be known as a "Certified Public Adjuster".
SECTION 6. IC 27-1-27-7.1, AS ADDED BY P.L.146-2015,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 7.1. (a) The insurance commissioner:
(1) may:
(A) suspend;
(B) revoke; or
(C) refuse to issue or renew;
a public adjuster's certificate of authority; to act as a public
adjuster in Indiana, or
(2) may place a public adjuster on probation;
for a cause set forth in subsection (b).
(b) A public adjuster is subject to the penalties set forth in
subsection (a) for any of the following:
(1) Providing incorrect, misleading, incomplete, or materially
untrue information in an application for a certificate of authority.
(2) Violating an insurance law, a subpoena, or an order of the
commissioner or another state's insurance commissioner.
(3) Obtaining or attempting to obtain a certificate of authority
through misrepresentation or fraud.
(4) Improperly withholding, misappropriating, or converting
money or property received in the course of doing insurance
business.
(5) Intentionally misrepresenting the terms of an actual or
proposed insurance contract or application for insurance.
(6) Having been convicted of a felony.
HEA 1329 — CC 1 8
(7) Having admitted or been found to have committed any unfair
trade practice or fraud in the business of insurance.
(8) Using fraudulent, coercive, or dishonest practices, or
demonstrating incompetence, untrustworthiness, or financial
irresponsibility, in the conduct of insurance business.
(9) Having an insurance license, or the equivalent of an insurance
license, probated, suspended, revoked, or refused in another state,
province, district, or territory.
(10) Forging another person's name to a document related to an
insurance transaction.
(11) Cheating, including improperly using notes or any other
reference material, to complete an examination for an insurance
license.
(12) Failing to comply with an administrative or court order
imposing a child support obligation.
(13) Failing to pay state income tax or failing to comply with an
administrative or court order directing payment of state income
tax.
(14) Committing a violation of section 1.5, sections 12 through
17, section 19, or section 20 of this chapter.
(c) If the commissioner refuses an application for a certificate of
authority to act as a public adjuster or for the renewal of an existing
certificate of authority under this chapter, the commissioner shall notify
the applicant or certificate holder in writing, advising of the reason for
the refusal. The applicant or certificate holder may, not more than thirty
(30) days after receiving the commissioner's notice of refusal, make
written demand upon the commissioner for a hearing to determine the
reasonableness of the refusal. The hearing must be held under
IC 4-21.5 not more than twenty (20) days after the commissioner
receives the applicant's or certificate holder's written demand.
SECTION 7. IC 27-1-27-12 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 12. (a) Before entering into a contract with an
insured, a public adjuster shall provide to the insured a written
disclosure concerning any direct or indirect financial interest that
the public adjuster has with any other party that is or will be
involved in any aspect of the insured's claim, other than by
receiving a salary, fee, commission, or other consideration that will
be established in the written contract with the insured.
(b) The direct or indirect financial interests that a public
adjuster must disclose to an insured under subsection (a) includes
any ownership by the public adjuster of, or any compensation that
HEA 1329 — CC 1 9
the public adjuster can expect to be received from, any:
(1) construction firm;
(2) salvage firm;
(3) lawyer or law firm;
(4) building appraisal firm; or
(5) board up company;
or any other firm that provides estimates for work, or performs
any work in conjunction with the insured loss to which the contract
between the public adjuster and the insured applies.
SECTION 8. IC 27-1-27-13 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 13. (a) A public adjuster shall not provide services,
other than emergency services, to an insured until:
(1) a written contract between the public adjuster and the
insured has been executed; and
(2) an exact copy of the contract has been provided to:
(A) the insurer with which the insured has filed or intends
to file a claim; or
(B) a representative of the insurer described in clause (A)
who is authorized to receive a notice of loss or damage on
the insurer's behalf.
(b) A contract between a public adjuster and an insured:
(1) must be in writing; and
(2) must be prepared on a form filed with and approved by
the insurance commissioner; and
(3) must be executed in duplicate.
(c) One (1) original form of a contract executed under
subsection (b)(3) must be provided to the insured and one (1)
original form of the contract may be retained by the public
adjuster.
(d) A public adjuster may use electronic mail to provide the
exact copy of a contract to an insurer under subsection (a)(2).
(e) The original contract retained by the public adjuster under
subsection (c) must be available at all times, without prior notice,
for inspection by the insurance commissioner.
SECTION 9. IC 27-1-27-14 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 14. (a) Before an insured enters into a contract with
a public adjuster, the public adjuster shall provide to the insured
a separate signed and dated disclosure document that states the
following:
"Property insurance policies obligate the insured to
HEA 1329 — CC 1 10
present a claim to his or her insurer for the insurer's
consideration. There are three (3) types of adjusters that
could be involved in that process. Here are definitions of
the three (3) types of adjusters:
"Company adjuster" means an insurance adjuster who is
an employee of an insurer, who represents the interests of
the insurer, and who is paid by the insurer. A company
adjuster will not charge the insured a fee.
"Independent adjuster" means an insurance adjuster who
is hired on a contract basis by an insurer to represent the
insurer's interest in the settlement of a claim and who is
paid by the insurer. An independent adjuster will not
charge the insured a fee.
"Public adjuster" means an insurance adjuster who does
not work for any insurer. A public adjuster represents the
insured to assist in the preparation, presentation, and
settlement of the insured's claim. The insured hires a
public adjuster by signing a contract under which the
insured agrees to pay the public adjuster a fee or
commission based on a percentage of the amount paid by
the insurer in settlement of the insured's claim or based on
some other method of compensation.".
SECTION 10. IC 27-1-27-15 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 15. (a) A contract between a
public adjuster and an insured may not contain any of the
following:
(1) If the public adjuster is to receive as compensation a
percentage of the total amount paid by the insurer to resolve
the insured's claim, a contract term that would:
(A) allow the public adjuster to collect a fee when the
insurer has not yet paid any of the money that is due from
the insurer; or
(B) allow the public adjuster to collect the public adjuster's
entire compensation from the first payment by the insurer
if the insurer will pay the total amount to resolve the
insured's claim in two (2) or more payments.
(2) A contract term that would require the insured to
authorize an insurer to issue a check only in the name of the
public adjuster.
(3) A contract term that would preclude the public adjuster or
the insured from pursuing civil remedies.
HEA 1329 — CC 1 11
(4) A contract term that would preclude the public adjuster's
liability to the insured for the public adjuster's negligence.
(5) A contract term that would allow the public adjuster to
perform the role of roofing contractor, appraiser, or any role
other than that of rendering advice or assistance to the
insured in the adjustment of a claim.
(6) A contract term that would give the public adjuster power
of attorney to act in the place of and instead of the insured.
SECTION 11. IC 27-1-27-16 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 16. (a) A public adjuster shall
ensure that a contract between the public adjuster and an insured
is in writing and contains the following:
(1) The legible full name of the public adjuster entering into
the contract, as specified in the records of the department.
(2) The permanent home state business address, electronic
mail address, and phone number of the public adjuster.
(3) The number of the certificate of authority issued to the
public adjuster under section 3 of this chapter.
(4) The title "Public Adjuster Contract" printed prominently
at the top of the first page of the contract.
(5) The:
(A) full name and street address of the insured; and
(B) the name of the insurance company by which the
insured is covered and the policy number of the policy
under which the insured is covered, if known.
(6) A description of the loss and the location of the loss, if
applicable.
(7) A description of services to be provided by the public
adjuster to the insured under the contract.
(8) The signatures of:
(A) the public adjuster or the public adjuster's authorized
representative; and
(B) the insured.
(9) The date and time when the contract was signed by the
public adjuster and the date and time when the contract was
signed by the insured.
(10) Attestation language stating that the public adjuster is
fully bonded under Indiana law.
(11) A statement of the full salary, fee, commission,
compensation, or other consideration the public adjuster is to
receive for services to be provided under the contract.
HEA 1329 — CC 1 12
(b) A contract between the public adjuster and an insured may
specify that the public adjuster is to be named as a co-payee on an
insurer's payment of a claim.
(c) If a public adjuster's compensation under a contract between
the public adjuster and an insured is to be based on a share of the
total amount paid by the insurer to resolve the insured's claim, the
contract must specify the exact percentage of the total amount paid
by the insurer that is the public adjuster's share.
(d) If, under a contract between a public adjuster and an
insured, the public adjuster's expenses are to be reimbursed to the
public adjuster from the proceeds of the claim payment, the
contract:
(1) must specify the public adjuster's expenses that are to be
reimbursed, setting forth:
(A) each type of expense to be reimbursed; and
(B) dollar estimates of the amount to be reimbursed; and
(2) must provide that the public adjuster will not be
reimbursed for any expenses other than those specified under
subdivision (1) unless those expenses are first approved by the
insured.
(e) The provisions of a contract between a public adjuster and
an insured pertaining to the compensation of the public adjuster
shall not be redacted in any copy of the contract that is provided to
the insurance commissioner.
SECTION 12. IC 27-1-27-17 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 17. The following apply to a
contract between an insured and a public adjuster:
(1) An insured is not required to hire a public adjuster to help
the insured meet the insured's obligations under a policy, but
has a right to do so.
(2) The public adjuster is not a representative or employee of
the insurer.
(3) The salary, fee, commission, or other consideration to be
paid to the public adjuster is the obligation of the insured, not
of the insurer, except when the insured has assigned the
insured's rights to the public adjuster.
SECTION 13. IC 27-1-27-18 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 18. (a) This section applies
notwithstanding the terms of a written contract between an insured
and a public adjuster.
HEA 1329 — CC 1 13
(b) If the insurer, not more than five (5) business days after the
date on which the insured's loss is reported to the insurer, either
pays or commits in writing to pay to the insured the policy limit of
the insurance policy covering the insured:
(1) the public adjuster shall not receive a commission
consisting of or based on a percentage of the total amount
paid by the insurer to resolve the claim of the insured;
(2) the public adjuster shall inform the insured that the loss
recovery amount might not be increased by the insurer; and
(3) the public adjuster is entitled only to reasonable
compensation from the insured for services provided by the
public adjuster on behalf of the insured, based on:
(A) the time spent by the public adjuster on the claim; and
(B) the expenses incurred by the public adjuster before the
claim is paid or the insured receives a written commitment
from the insurer to pay the claim.
SECTION 14. IC 27-1-27-19 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 19. (a) A contract between a
public adjuster and an insured is voidable at the option of the
insured at any time not more than three (3) business days after the
day on which the insurer is provided a copy of the contract under
section 13(a)(2) of this chapter.
(b) An insured may void a contract with a public adjuster by
notifying the public adjuster in writing of the insured's decision to
void the contract. The written notification must be transmitted to
the public adjuster by:
(1) registered or certified mail, return receipt requested, sent
to the address of the public adjuster shown on the contract;
(2) personally serving the notice on the public adjuster; or
(3) sending an electronic mail to the public adjuster at the
electronic mail address shown on the contract.
(c) If the insured exercises the right to void the contract under
this section, the public adjuster shall return to the insured anything
of value that the insured gave to the public adjuster under the
contract before the voiding of the contract. The public adjuster
shall return things of value to the insured under this section not
more than fifteen (15) business days after the day on which the
public adjuster receives notice under subsection (b) of the insured's
decision to void the contract.
SECTION 15. IC 27-1-27-20 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
HEA 1329 — CC 1 14
[EFFECTIVE JULY 1, 2023]: Sec. 20. (a) An insured may rescind a
contract between the insured and a public adjuster at any time not
more than three (3) business days after the day on which the
insured submits to the insurer the claim to which the contract
relates.
(b) An insured may rescind a contract with a public adjuster by
notifying the public adjuster in writing of the insured's decision to
rescind the contract. The written notification must be transmitted
to the adjuster by:
(1) registered or certified mail, return receipt requested, sent
to the address of the public adjuster shown on the contract;
(2) personally serving the notice on the public adjuster; or
(3) sending an electronic mail to the public adjuster at the
electronic mail address shown on the contract.
(c) If the insured exercises the right to rescind a contract under
this section, the public adjuster shall return to the insured anything
of value that the insured gave to the public adjuster under the
contract before the recission of the contract. The public adjuster
shall return things of value to the insured under this section not
more than fifteen (15) business days after the day on which the
public adjuster receives notice under subsection (b) of the insured's
decision to rescind the contract.
SECTION 16. IC 27-1-34-8.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2023]: Sec. 8.5. (a) This section applies:
(1) only to an arrangement that provides benefits for a public
entity; and
(2) only with respect to the benefits provided by the
arrangement to a public entity.
(b) A policy of stop loss insurance issued by a reinsurer to an
arrangement providing benefits under this chapter must cover
claims submitted within:
(1) the timely filing limit of the policy; and
(2) the policy provisions of the stop loss coverage.
(c) The department may not adopt or enforce any rule that
would reduce the timely filing limit specified in the policy and the
policy provisions of the stop loss coverage.
SECTION 17. IC 27-1-45.5-3, AS ADDED BY P.L.117-2021,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 3. (a) Before December 31, 2026, IPEP shall
apply to the insurance commissioner for a certificate of authority to
transact the business of insurance in Indiana as a domestic tax exempt
HEA 1329 — CC 1 15
reciprocal insurance company.
(b) The bylaws or articles of incorporation prepared by IPEP for
purposes of IPEP's conversion to a domestic tax exempt reciprocal
insurance company must require that the board of the domestic tax
exempt reciprocal insurance company be made up of at least seven (7)
individuals.
(c) IPEP, in converting to a domestic tax exempt reciprocal
insurance company, must meet the requirements and conditions for the
formation of a domestic tax exempt reciprocal insurance company set
forth in IC 27-1-6, including an examination under IC 27-1-6-17.
SECTION 18. IC 27-1-47-2, AS ADDED BY P.L.196-2021,
SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 2. (a) An insurer, by or through its employees,
affiliates, insurance producers, or third-party representatives, or an
insurance producer acting on the insurance producer's own behalf, may
offer or provide, for free or at a discounted price, value-added
products or services:
(1) that relate to or are provided in conjunction with a policy of
insurance; and
(2) that:
(A) are primarily intended to:
(i) educate about;
(ii) assess;
(iii) monitor;
(iv) mitigate;
(v) reduce;
(iv) (vi) control; or
(v) (vii) prevent;
risk, severity, or frequency of loss to persons or to persons'
lives, health, or property; or
(B) are primarily designed to enhance the health, financial
wellness, or safety of persons or of persons' lives, health, or
property; or
(B) (C) have a nexus to or enhance the value of the insurance
benefits of the policy.
(b) Offering or providing products or services under this section is
not a violation of IC 27-1-20-30, IC 27-1-22-18, or IC 27-4-1-4(a)(8).
SECTION 19. IC 27-1-47-3, AS ADDED BY P.L.196-2021,
SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]: Sec. 3. (a) Subject to subsection (b), A person holding
a license under this title may offer or provide, for free or for less than
fair market value, value-added products or services that are at least
HEA 1329 — CC 1 16
tangentially related to an insurance contract or the administration of an
insurance contract if:
(1) the value-added products or services:
(1) (A) are not contingent upon the purchase of insurance;
offered in a manner that is unfairly discriminatory; and
(2) (B) are offered on the same terms to all potential insurance
customers. made available based on documented, objective
criteria; and
(2) the documented, objective criteria under which the
value-added products or services are offered are maintained
for inspection by the insurance commissioner within thirty
(30) days after the insurance commissioner's request for
inspection.
(b) Before:
(1) the recipient of services described in subsection (a):
(A) receives a quote of insurance; or
(B) purchases insurance; or
(2) an agent of record is assigned to the recipient of the services;
the person offering or providing services under subsection (a) must
disclose conspicuously in writing to the recipient of the services that
receiving the services is not contingent on the purchase of insurance.
The products and services that may be offered or provided for free
or for less than fair market value under subsection (a) include but
are not limited to the following:
(1) Loss control, including wellness programs.
(2) Claim filing assistance.
(3) Administration of the continuation of health benefits
requirements of the Consolidated Omnibus Budget
Reconciliation Act (COBRA).
(4) Compliance with the requirements of the Health Insurance
Portability and Accountability Act (HIPAA).
(5) Risk management or analysis.
(6) Regulatory and legislative updates.
(7) Group policy administration.
(8) Payroll, accounting, and tax services.
(9) Legal and human resources.
(10) Referrals to third-party service providers that offer
discounted rates.
(c) A value-added product or service that is provided for free or
for less than fair market value under subsection (a) by:
(1) an insurer, acting by or through its employee, affiliate,
insurance producer, or a third-party representative; or
HEA 1329 — CC 1 17
(2) an insurance producer, acting on the insurance producer's
own behalf;
shall be provided along with contact information for the purpose
of ensuring that the consumer is assisted with questions concerning
the product or service.
SECTION 20. IC 27-2-28 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]:
Chapter 28. Notice of Material Change
Sec. 1. (a) This chapter applies to a personal automobile or
homeowner's policy that is issued, delivered, amended, or renewed
after June 30, 2024.
(b) This chapter does not apply to notices required by the
federal Fair Credit Reporting Act (15 U.S.C. 1681 et seq.).
Sec. 2. As used in this chapter, "automobile policy" means a
policy providing one (1) or more of the types of insurance
described in Class 2(f) of IC 27-1-5-1.
Sec. 3. As used in this chapter, "homeowner's policy" means a
policy that provides:
(1) coverage for:
(A) damage to or the destruction of:
(i) a structure; or
(ii) a unit within a structure;
that is used as a residence by one (1) or more individuals;
and
(B) damage to or the loss of personal property that is
present in the structure or unit described in clause (A);
caused by perils such as fire, hail, and lightning; and
(2) coverage against the civil liability of the policyholder
arising from bodily injury or property damage incurred by
others.
Sec. 4. As used in this chapter, "insured" means an individual
who is the first named insured on the declarations page of a
personal automobile or homeowner's policy.
Sec. 5. As used in this chapter, "insurer" refers to an insurer (as
defined in IC 27-1-2-3) that issues a personal automobile or
homeowner's policy.
Sec. 6. (a) As used in this chapter, "material change" means:
(1) an increase of more than ten percent (10%) over the
expiring premium for; or
(2) another adverse or unfavorable change in the terms of
coverage or amount of;
HEA 1329 — CC 1 18
insurance in connection with a personal automobile or
homeowner's policy.
(b) The term does not include the following:
(1) An increase in the insurer's filed rate plan and automatic
inflationary increases.
(2) An additional premium due to a change initiated by the
insured, such as:
(A) adding or removing vehicles or drivers;
(B) adding an endorsement;
(C) adding additional coverages;
(D) adding covered premises; or
(E) increasing coverage limits or deductibles.
(3) An additional premium due to a change in risk exposure
as a result of the insured's participation in a usage based or
telematics insurance program.
(4) Changes resulting from a property inspection.
Sec. 7. As used in this chapter, "personal automobile or
homeowner's policy" means:
(1) an automobile policy; or
(2) a homeowner's policy;
that is underwritten on an individual basis for an individual,
family, or household.
Sec. 8. (a) An insurer that makes a material change to an
insured's personal automobile or homeowner's policy shall provide
a written notice to the insured that:
(1) explains the principal factors for the material change; or
(2) states that the insured has a right to request and obtain an
explanation of the principal factors for the material change.
(b) An insured who receives a notice of a material change
described in subsection (a)(2) may submit to the insurer a written
request for an explanation of the principal factors for the material
change.
(c) Upon receiving a request for an explanation under
subsection (b), the insurer shall provide written notice to the
insured explaining the principal factors for the material change.
(d) An insurer shall provide a copy of a written notice provided
under subsection (a)(1) or (c):
(1) to the insurance producer, if any, who:
(A) represented:
(i) the insured in obtaining coverage from the insurer; or
(ii) the insurer in regard to the providing of coverage to
the insured; and
HEA 1329 — CC 1 19
(B) is not an employee, an exclusive agent, or a captive
agent of the insurer; and
(2) to the insurer's reporting portal for agent
communications.
(e) A written notice provided under subsection (a) or (c), or a
written request submitted under subsection (b), must be provided
by:
(1) first class mail; or
(2) electronic delivery as set forth in IC 27-1-43.
Sec. 9. (a) A written notice provided under section 8(a)(1) or 8(c)
of this chapter:
(1) must:
(A) be sufficiently clear; and
(B) use language sufficiently specific;
to enable the insured to identify the basis for the insurer's
decision to make the material change;
(2) must include a description of the principal factors most
heavily weighed by an insurer in making a material change,
listed in no particular order; and
(3) may provide a point of contact through which the insured
may discuss the reasons for the material change.
(b) A statement that:
(1) the material change is based on the insurer's internal
standards, policies, or models;
(2) the insured failed to achieve a particular score on the
insurer's scoring system; or
(3) contains generalized terms, such as "poor credit history",
"poor credit rating", or "poor insurance score";
does not meet the requirements set forth in subsection (a).
(c) This section does not require the disclosure of factors that
are otherwise disclosed to the insured.
Sec. 10. The requirements set forth in this chapter:
(1) do not replace; and
(2) are in addition to;
the requirements under IC 27-7-6 and IC 27-7-12.
Sec. 11. This chapter does not prohibit an insurer from
voluntarily providing the disclosures required by this chapter.
Sec. 12. (a) The commissioner shall adopt rules under IC 4-22-2
to implement this chapter.
(b) The rules adopted under subsection (a) must include
monetary penalties for a violation of this chapter that are
consistent with other penalties assessed for similar violations under
HEA 1329 — CC 1 20
this title.
(c) The commissioner is solely responsible for the enforcement
of this chapter.
Sec. 13. A violation of this chapter does not create a private
cause of action.
SECTION 21. IC 27-2-29 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]:
Chapter 29. Transition from Affordable Care Act to Medicare
Sec. 1. As used in this chapter, "Affordable Care Act" refers to
the federal Patient Protection and Affordable Care Act (P.L.
111-148), as amended by the federal Health Care and Education
Reconciliation Act of 2010 (P.L. 111-152).
Sec. 2. As used in this chapter, "health maintenance
organization" has the meaning set forth in IC 27-13-1-19.
Sec. 3. As used in this chapter, "insurer" has the meaning set
forth in IC 27-1-2-3(x).
Sec. 4. As used in this chapter, "Marketplace plan" means:
(1) a policy of accident and sickness insurance;
(2) a health maintenance organization contract; or
(3) an exclusive provider organization plan, point of service
plan, preferred provider organization plan, or any other plan
or program;
that is a qualified health plan available from a marketplace under
the Affordable Care Act.
Sec. 5. As used in this chapter, "policy of accident and sickness
insurance" means a policy or contract providing one (1) or more
of the kinds of insurance described in Class 1(b) or 2(a) of
IC 27-1-5-1.
Sec. 6. As used in this chapter, "qualified health plan" has the
meaning set forth in Section 1301 of the Affordable Care Act, 42
U.S.C. 18021.
Sec. 7. (a) An insurer or health maintenance organization that
provides coverage under a Marketplace plan shall provide to each
individual covered under the Marketplace plan, not earlier than six
(6) months and not later than two (2) months before the birthday
on which the individual will become sixty-five (65) years of age, a
written notice that includes the following:
(1) A statement that the individual may be eligible to enroll in
Medicare during the individual's initial enrollment period,
which begins three (3) months before the individual becomes
sixty-five (65) years of age. The department of insurance shall
HEA 1329 — CC 1 21
provide language for the statement required by this
subdivision in a bulletin issued under subsection (c).
(2) Detailed instructions that the individual may follow to
cancel the individual's Marketplace plan before the individual
becomes covered under Medicare, so that there is no overlap
between the individual's Marketplace plan coverage and the
individual's Medicare coverage.
(b) A written notice described in subsection (a) shall be sent:
(1) by first class mail in the form of a letter addressed to the
individual at the address of the individual's residence; or
(2) by electronic notification.
(c) The department of insurance:
(1) shall issue an initial bulletin setting forth language for the
statement required by subsection (a)(1); and
(2) whenever the department of insurance revises the
language described in subdivision (1), shall issue a bulletin
setting forth the revised language.
SECTION 22. IC 27-4-1-5.6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 5.6. (a) A person who:
(1) has submitted a claim to an insurer under an insurance
policy; and
(2) believes the person has been adversely affected by that an
unfair claim settlement practice under described in section 4.5 of
this chapter has been committed in connection with the claim;
may file a complaint with the commissioner.
(b) A complaint may not be filed under subsection (a) by a
public adjuster (as defined in IC 27-1-27-1) on behalf of a person
described in subsection (a) unless the person described in
subsection (a) has given written consent for the public adjuster to
file the complaint on the person's behalf.
(c) If the commissioner believes an unfair claim settlement practice
has occurred, the commissioner shall, within ten (10) business days
from the date of receipt of a written complaint, deliver a copy of the
complaint to the insurer and shall respond in writing to the complaining
party, at the address provided in the complaint, advising the party of
the following:
(1) The specific action taken by the department on the complaint.
(2) Any further investigations or other actions that are intended by
the department.
(b) (d) An insurer who receives a written notice of complaint under
subsection (a) (c) shall promptly conduct an investigation of the
matters alleged in the complaint. Within twenty (20) business days
HEA 1329 — CC 1 22
from the date of receipt of the complaint, the insurer shall provide to
the commissioner and the complaining party a written report containing
the following information:
(1) The specific reasons for actions taken by the insurer with
respect to the claim.
(2) The specific reasons for any inaction by the insurer with
respect to the claim.
(3) If the claim has not been settled, a good faith estimate of the
time required for settlement.
(c) (e) An insurer who commits an unfair claims settlement practice
or who fails to comply with this section is subject to action by the
commissioner under section 6 of this chapter.
(d) (f) Each insurer shall provide to each current policyholder a one
(1) time written notice of the remedies provided under this section.
Future policyholders shall be notified by the insurer at the time the
insurance policy is issued.
SECTION 23. IC 27-8-4.9 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2023]:
Chapter 4.9. Accident and Sickness Insurance: Consent to
Electronic Communication
Sec. 1. As used in this chapter, "covered individual" means an
individual entitled to coverage under a health benefit plan.
Sec. 2. (a) As used in this chapter, "health benefit plan" means
a policy, contract, certificate, or agreement that is entered into,
offered by, or issued by an insurer to provide, deliver, arrange for,
pay for, or reimburse any of the costs of health care services.
(b) The term includes a health benefit plan that provides:
(1) vision coverage; or
(2) dental coverage.
Sec. 3. (a) As used in this chapter, "plan sponsor" means a
person that establishes, adopts, or maintains a health benefit plan
that covers individuals in Indiana.
(b) The term includes a health benefit plan established, adopted,
or maintained:
(1) by an employer;
(2) jointly by an employer and one (1) or more employee
organizations; or
(3) by an association, committee, joint board of trustees, or
any similar group of representatives.
(c) The term does not include an entity regulated under this
title.
HEA 1329 — CC 1 23
Sec. 4. (a) Subject to subsection (b), the plan sponsor of a health
benefit plan may, on behalf of all covered individuals of the health
benefit plan, provide consent:
(1) to the mailing to covered individuals by electronic means
otherwise required by IC 27-1-43-3 of all communications
related to the health benefit plan; and
(2) to the electronic delivery to a covered individual of any
health insurance identification card.
(b) Before providing consent on behalf of a covered individual
under subsection (a), the plan sponsor of a health benefit plan must
confirm that the covered individual routinely uses electronic
communications during the normal course of the covered
individual's employment.
Sec. 5. Before providing delivery by electronic means to a
covered individual for whom the plan sponsor of a health benefit
plan has provided consent under section 4 of this chapter, the
insurer that entered into, offered, or issued the policy, contract,
certificate, or agreement constituting the health benefit plan must
provide the covered individual an opportunity to opt out of the
mailing by electronic means of communications related to the
health benefit plan and the electronic delivery of health insurance
identification cards.
SECTION 24. IC 27-9-1-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE MAY 1, 2023]: Sec. 1. Proceedings under
this article apply to the following:
(1) All insurers who are doing, or who have done, insurance
business in Indiana, and against whom claims arising from that
business may exist.
(2) All insurers who purport to do insurance business in Indiana.
(3) All insurers who have insureds resident in Indiana.
(4) All other persons organized or in the process of organizing
with the intent to do an insurance business in Indiana.
(5) All nonprofit service plans, fraternal benefit societies, and
beneficial societies.
(6) All title insurance companies.
(7) All health maintenance organizations under IC 27-13.
(8) All multiple employer welfare arrangements under
IC 27-1-34.
(9) All limited service health maintenance organizations under
IC 27-13-34.
(10) All mutual insurance holding companies under IC 27-14
(before its repeal) or IC 27-14.5.
HEA 1329 — CC 1 24
SECTION 25. IC 27-9-2-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE MAY 1, 2023]: Sec. 1. (a) Whenever the
commissioner has reasonable cause to believe, and determines, after a
hearing held under IC 4-21.5-3, that any domestic insurer has
committed or engaged in, or is about to commit or engage in, any act,
practice, or transaction that would subject it to a delinquency
proceeding under IC 27-9-3-1 or IC 27-9-3-6, the commissioner may
make and serve upon the insurer and any other persons involved, any
orders reasonably necessary to correct, eliminate, or remedy that
conduct, condition, or ground.
(b) If the commissioner has reasonable cause to believe that any
domestic insurer is in such condition as to render the continuance of its
business hazardous to the public or to holders of its policies or
certificates of insurance, or if that domestic insurer gives its consent,
the commissioner shall upon his determination issue an order:
(1) notifying the insurer of his determination; and
(2) providing the insurer with a written list of the commissioner's
requirements to correct its business practices.
(c) If the commissioner makes a determination to supervise an
insurer subject to an order under subsection (a) or (b), the
commissioner shall notify the insurer that it is under the supervision of
the commissioner. If the insurer is a reorganized insurer under IC 27-14
(before its repeal) or IC 27-14.5, the commissioner may also
determine to supervise the mutual insurance holding company that is
affiliated with the reorganized insurer, regardless of whether another
basis exists for supervising the mutual insurance holding company. If
the commissioner makes a determination to supervise a mutual
insurance holding company, the commissioner shall notify the mutual
insurance holding company that it is under the supervision of the
commissioner.
(d) During the period of supervision, the commissioner may appoint
a supervisor to supervise the insurer. The order appointing a supervisor
must direct the supervisor to enforce orders issued under subsection (a)
or (b). The order may also provide that the insurer may not do any of
the following things, during the period of supervision, without the prior
approval of the commissioner or his supervisor:
(1) Dispose of, convey, or encumber any of its assets or its
business in force.
(2) Withdraw funds from any of its bank accounts.
(3) Lend any of its funds.
(4) Invest any of its funds.
(5) Transfer any of its property.
HEA 1329 — CC 1 25
(6) Incur any debt, obligation, or liability.
(7) Merge or consolidate with another company.
(8) Enter into any new reinsurance contract or agreement.
(9) Restrict the writing of new business on the renewal of existing
business.
(e) Any insurer subject to an order under this section must comply
with the lawful requirements of the commissioner and, if placed under
supervision, has sixty (60) days from the date the supervision order is
served within which to comply with the requirements of the
commissioner. In the event of the insurer's failure to comply within
those time requirements, the commissioner may institute proceedings
under IC 27-9-3-1 or IC 27-9-3-6 to have a rehabilitator or liquidator
appointed, or extend the period of supervision.
(f) During the period of supervision, the insurer may request the
commissioner to review any action taken or proposed to be taken by the
supervisor, specifying the reason the action complained of is believed
not to be in the best interest of the insurer.
(g) If a person violates a supervision order issued under this section,
he is civilly liable up to ten thousand dollars ($10,000).
(h) The commissioner may apply for and the Marion County circuit
court may grant, under IC 4-21.5-6, orders as are necessary and proper
to enforce a supervision order.
(i) In the event that a person subject to this article knowingly
violates any valid order of the commissioner issued under this section
and, as a result of that violation, the net worth of the insurer is reduced
or the insurer suffers loss it would not otherwise have suffered, that
person is personally liable to the insurer for the amount of that
reduction or loss. The commissioner or supervisor is authorized to
bring an action on behalf of the insurer in the Marion County circuit
court to recover the amount of the reduction or loss together with any
costs.
SECTION 26. IC 27-9-3-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE MAY 1, 2023]: Sec. 1. The commissioner
may apply by petition to the Marion County circuit court for an order
authorizing him to rehabilitate a domestic insurer or an alien insurer
domiciled in Indiana on any one (1) of the following grounds:
(1) The insurer is in a condition that the further transaction of
business would be hazardous, financially, to its policyholders,
creditors, or the public.
(2) There is reasonable cause to believe that there has been
embezzlement from the insurer, wrongful sequestration or
diversion of the insurer's assets, forgery or fraud affecting the
HEA 1329 — CC 1 26
insurer, or other illegal conduct in, by, or with respect to the
insurer that if established would endanger assets in an amount
threatening the solvency of the insurer.
(3) The insurer has failed to remove any person who in fact has
executive authority in the insurer, whether an officer, manager,
general agent, employee, or other person, if the person has been
found after notice and hearing by the commissioner under
IC 4-21.5-3 to be dishonest or untrustworthy in a way affecting
the insurer's business.
(4) Control of the insurer, whether by stock ownership or
otherwise, and whether direct or indirect, is in a person found
after notice and hearing under IC 4-21.5-3 to be untrustworthy.
(5) Any person who in fact has executive authority in the insurer,
whether an officer, manager, general agent, director or trustee,
employee, or other person, has refused to be examined under oath
by the commissioner concerning its affairs, whether in Indiana or
elsewhere, and after reasonable notice of the fact the insurer has
failed promptly and effectively to terminate the employment and
status of the person and all his influence on management.
(6) After demand by the commissioner under this article or
IC 27-1-3, the insurer has failed to promptly make available for
examination any of its own property, books, accounts, documents,
or other records, or those of any subsidiary or related company
within the control of the insurer, or those of any person having
executive authority in the insurer so far as they concern the
insurer.
(7) Without first obtaining the written consent of the
commissioner, the insurer has transferred, or attempted to
transfer, in a manner contrary to IC 27-1-23 or IC 27-6,
substantially all of its entire property or business, or has entered
into any transaction the effect of which is to merge, consolidate,
or reinsure substantially its entire property or business in or with
the property or business of any other person.
(8) The insurer or its property has been or is the subject of an
application for the appointment of a receiver, trustee, custodian,
conservator, or sequestrator or similar fiduciary of the insurer or
its property otherwise than as authorized under this title, and the
appointment has been made or is imminent, and the appointment
might:
(A) remove the insurer from the jurisdiction of the Indiana
courts; or
(B) prejudice orderly delinquency proceedings under this
HEA 1329 — CC 1 27
article.
(9) Within the previous four (4) years the insurer has willfully
violated its charter or articles of incorporation, its bylaws, this
title, or any valid order of the commissioner under IC 27-9-2-1.
(10) The insurer has failed to pay within sixty (60) days after the
due date any obligation to any state or any political subdivision of
any state or any judgment entered in any state, if the court in
which the judgment was entered had jurisdiction over the subject
matter. However, nonpayment shall not be a ground until sixty
(60) days after any good faith effort by the insurer to contest the
obligation has been terminated, whether it is before the
commissioner or in the courts, or the insurer has systematically
attempted to compromise or renegotiate previously agreed
settlements with its creditors on the ground that it is financially
unable to pay its obligations in full.
(11) The insurer has failed to file its annual report or other
financial report required by law and, after written demand by the
commissioner, has failed to immediately give an adequate
explanation.
(12) The board of directors or the holders of a majority of the
shares entitled to vote, or a majority of those individuals entitled
to the control of those entities, request or consent to rehabilitation
under this article.
(13) The insurer is a mutual insurance holding company under
IC 27-14 (before its repeal) or IC 27-14.5 and a reorganized
insurance company that is affiliated with the mutual insurance
holding company and is or has been the subject of a petition for
an order authorizing the commissioner to rehabilitate the
reorganized insurance company under this section or to liquidate
the reorganized insurance company under section 6 of this
chapter, regardless of whether another basis exists for petitioning
for rehabilitation of the mutual insurance holding company.
SECTION 27. IC 27-13-23-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 1. The commissioner
may make an examination of a health maintenance organization
whenever necessary for the protection of the interests of the citizens of
Indiana. However, an examination of a health maintenance
organization domiciled in Indiana must be conducted at least once
every three (3) five (5) years.
SECTION 28. IC 27-13-23-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2023]: Sec. 2. The commissioner
may make an examination concerning the quality management program
HEA 1329 — CC 1 28
of a health maintenance organization whenever necessary for the
protection of the citizens of Indiana. However, an examination of the
quality management program of a health maintenance organization
domiciled in Indiana must be conducted at least once every three (3)
five (5) years.
SECTION 29. IC 27-14 IS REPEALED [EFFECTIVE MAY 1,
2023]. (Mutual Insurance Holding Company Law).
SECTION 30. IC 27-14.5 IS ADDED TO THE INDIANA CODE
AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE MAY
1, 2023]:
ARTICLE 14.5. MUTUAL INSURANCE HOLDING
COMPANY LAW
Chapter 1. General Provisions and Definitions
Sec. 1. This article may be referred to as the Indiana mutual
insurance holding company law.
Sec. 2. (a) This article replaces IC 27-14, as repealed by this
House Enrolled Act 1329-2023.
(b) The repeal of IC 27-14 does not affect the validity of any
mutual insurance company reorganization that was approved
under IC 27-14. Any existing mutual insurance holding company
and any related intermediate stock holding company or
reorganized insurer created or reorganized under IC 27-14 (before
its repeal) are:
(1) governed by this article after April 30, 2023; and
(2) considered created or reorganized as of the date the
mutual insurance holding company, related intermediate
stock holding company, or reorganized insurer was created or
reorganized, as applicable, under IC 27-14.
Sec. 3. (a) This article is intended to enable mutual insurance
companies to seek additional capital more effectively to:
(1) enhance their financial strength and flexibility;
(2) support long term growth internally and through mergers
and acquisitions; and
(3) expand and enhance the domestic insurance companies of
this state.
(b) This article provides an alternative organizational structure
to help strengthen the Indiana mutual insurance industry by
permitting mutual insurance companies to:
(1) reorganize into a mutual insurance holding company
structure; and
(2) raise capital through the sale of capital stock.
Sec. 4. The definitions set forth in this chapter apply throughout
HEA 1329 — CC 1 29
this article.
Sec. 5. (a) Subject to subsection (b), "acting in concert" means:
(1) a knowing participation in a joint activity whether or not
under an express agreement;
(2) interdependent conscious parallel action toward a common
goal under an express agreement or otherwise; or
(3) a combination or pooling of voting interests or other
interests in the securities of any person for a common purpose
under any contract, understanding, relationship, agreement,
or other arrangement, written or otherwise.
(b) An employee benefit plan is acting in concert with:
(1) its trustee; or
(2) a person who serves in a capacity similar to a trustee;
solely for the purpose of determining whether capital stock held by
the trustee or the person in a similar capacity and capital stock
held by the plan will be aggregated.
Sec. 6. "Adoption date" means, with respect to a plan, the date
on which the board of directors approves a plan of reorganization
or a plan to issue stock.
Sec. 7. "Affiliate" means a person who, directly or indirectly:
(1) controls;
(2) is controlled by; or
(3) is under common control with;
another person.
Sec. 8. "Applicant" means, with respect to a plan, a person that
has submitted a plan to the commissioner under this article.
Sec. 9. (a) Subject to subsection (b), "associate" means any of
the following:
(1) With respect to a particular person, corporation, business
entity, or other organization (other than the applicant or an
affiliate of the applicant) for which the person is:
(A) an officer;
(B) a partner; or
(C) directly or indirectly the beneficial owner of at least
ten percent (10%) of any class of equity securities.
(2) With respect to an individual who is a director or an
officer of the applicant or of any of the applicant's affiliates,
a:
(A) spouse; or
(B) member of the immediate family sharing the same
household.
(3) With respect to a particular person, a trust or other estate
HEA 1329 — CC 1 30
in which the person has a substantial beneficial interest or for
which the person serves as trustee or in a similar fiduciary
capacity.
(b) The term does not apply to a person that:
(1) has a beneficial interest in; or
(2) serves as a trustee or in a similar fiduciary capacity for;
an employee benefit plan.
Sec. 10. "Commissioner" refers to the insurance commissioner
appointed under IC 27-1-1-2.
Sec. 11. "Company" means any of the following:
(1) A mutual insurance company.
(2) A mutual insurance holding company.
(3) An intermediate stock holding company.
(4) A reorganized insurer.
Sec. 12. "Effective date" means, with respect to a plan, the date
on which the plan becomes effective under this article.
Sec. 13. "Eligible member" means, with respect to a plan, a
person who is a member of a mutual insurance company or mutual
insurance holding company, as applicable, on the adoption date of
a plan and:
(1) solely for purposes of receipt of notice of and voting at a
meeting of members on a plan of reorganization, continues to
be a member of the mutual insurance company on the record
date for the meeting of members; or
(2) solely for purposes of eligibility to receive stock
subscription rights, if any, under a plan to issue stock,
continues to be a member of the mutual insurance company
or mutual insurance holding company, as applicable, on the
date the commissioner approves the plan to issue stock.
Sec. 14. "Employee benefit plan" means an employee benefit
plan established by a mutual insurance holding company or by one
(1) or more of the subsidiaries of a mutual insurance holding
company for the sole benefit of its:
(1) employees; or
(2) sales agents.
Sec. 15. "Entity" has the meaning set forth in IC 23-0.5-1.5-8.
Sec. 16. "Immediate family" means any child, stepchild,
grandchild, parent, stepparent, grandparent, sibling,
mother-in-law, father-in-law, daughter-in-law, son-in-law,
brother-in-law, or sister-in-law. The term includes adoptive
relationships.
Sec. 17. "Intermediate stock holding company" means an entity,
HEA 1329 — CC 1 31
other than a reorganized insurer and its subsidiaries, that:
(1) is owned entirely or in part, directly or indirectly, by a
mutual insurance holding company; and
(2) directly or indirectly owns all or part of the capital stock
of a reorganized insurer.
Sec. 18. "Member" means a person that, according to the:
(1) records; and
(2) articles of incorporation and bylaws;
of a mutual insurance company or mutual insurance holding
company, as applicable, is a member or policyholder of the mutual
insurance company or mutual insurance holding company, as
applicable, with voting rights.
Sec. 19. "Member's interest" means:
(1) the voting rights of a member provided by the mutual
insurance company's or the mutual insurance holding
company's articles of incorporation or bylaws; and
(2) the right to receive cash, stock, or other consideration in
the event of a liquidation or dissolution under IC 27-1-10,
conversion to a stock company under IC 27-15, or as provided
by the mutual insurance company's or mutual insurance
holding company's articles of incorporation or bylaws.
Sec. 20. "Mutual insurance company" means a mutual insurer
that is:
(1) submitting; or
(2) subject to;
a plan of reorganization or plan to issue stock under this article.
Sec. 21. "Mutual insurance holding company" means a mutual
insurance holding company established under IC 27-14.5-2.
Sec. 22. "Participating policy" means a policy providing for the
distribution of policy dividends.
Sec. 23. "Person" means any of the following:
(1) An individual.
(2) A group of individuals acting in concert.
(3) A trust.
(4) An association.
(5) A partnership.
(6) A limited liability company.
(7) A corporation.
(8) A joint venture.
(9) A government or governmental subdivision, agency, or
instrumentality.
(10) Any entity.
HEA 1329 — CC 1 32
Sec. 24. "Plan" means a plan:
(1) of reorganization; or
(2) to issue stock.
Sec. 25. "Plan of reorganization" means a plan adopted under
IC 27-14.5-2.
Sec. 26. "Plan to issue stock" means a plan to issue shares of
stock of an intermediate stock holding company or a reorganized
insurer adopted under IC 27-14.5-3.
Sec. 27. "Policy" means a contract providing one (1) or more of
the kinds of insurance described in IC 27-1-5-1.
Sec. 28. "Reorganized insurer" means an entity:
(1) that is a domestic stock insurance company that is owned
entirely or in part by a mutual insurance holding company or
an intermediate stock holding company; and
(2) the members of which:
(A) may be; or
(B) are entitled to become;
members of the mutual insurance holding company.
Sec. 29. "Subsidiary" means, with respect to a particular
person, an affiliate of the person that is controlled by the person,
either:
(1) directly; or
(2) indirectly through one (1) or more intermediaries.
Sec. 30. "Voting capital stock" means capital stock whose holder
has the right to vote in the election of directors of the entity issuing
the stock.
Chapter 2. Mutual Insurance Company Reorganization
Sec. 1. (a) A mutual insurance company may reorganize under
this chapter as a mutual insurance holding company with one (1)
or more subsidiaries if the following occur:
(1) The adoption of a plan of reorganization by the mutual
insurance company's board of directors in accordance with
section 4 of this chapter.
(2) The approval by the commissioner of the mutual insurance
company's application for reorganization.
(3) The favorable vote of the mutual insurance company's
members under sections 8 through 12 of this chapter.
(b) The subsidiaries of a mutual insurance holding company
that result from a reorganization of a mutual insurance company
under this chapter:
(1) must include at least one (1) stock insurance company
subsidiary; and
HEA 1329 — CC 1 33
(2) may include one (1) or more intermediate stock holding
companies.
Sec. 2. The reorganization of a mutual insurance company or
two (2) or more mutual insurance companies into a mutual
insurance holding company structure under this chapter may be
accomplished by any means approved by the commissioner,
including the following:
(1) The establishment of at least one (1) company.
(2) The amendment or restatement of the articles and bylaws
of any company.
(3) The transfer or acquisition of any or all of the assets and
liabilities of any company.
(4) The transfer or acquisition of any or all of the capital stock
of any company.
(5) The merger of two (2) or more companies.
(6) The merger of a mutual insurance company's members
into any existing mutual insurance holding company with
continued corporate existence of the reorganized mutual
insurance company as a reorganized insurer.
Sec. 3. After the effective date of the reorganization of a mutual
insurance company as a mutual insurance holding company under
this chapter, the mutual insurance holding company must at all
times have the direct or indirect power to cast at least a majority
of the votes for the election of the members of the board of
directors of:
(1) each stock insurance company subsidiary; and
(2) any intermediate stock holding company.
Sec. 4. A plan of reorganization under this chapter must be
adopted by:
(1) a vote of not less than two-thirds (2/3) of the members of
the board of directors of the mutual insurance company; or
(2) in the case of the formation of any intermediate stock
insurance holding company that is not concurrent with the
formation of the mutual insurance holding company, by a vote
of not less than two-thirds (2/3) of the members of the board
of directors of the mutual insurance holding company.
Sec. 5. Not later than ninety (90) days after the adoption of a
plan of reorganization and before a vote on the plan by the
members, the company adopting the plan of reorganization must
file with the commissioner an application containing the following:
(1) A plan of reorganization.
(2) The form of the notice, proxy statement, and the proxy
HEA 1329 — CC 1 34
form to be used in providing notice of the plan of
reorganization and soliciting the votes of members under
section 11 of this chapter.
(3) A list of the officers and directors of each company that is
affected by the plan of reorganization.
Sec. 6. (a) A plan of reorganization filed with the commissioner
under this chapter must include the following:
(1) A description of all significant terms of the proposed
reorganization.
(2) Any plan to issue stock that may be proposed in connection
with the plan of reorganization.
(3) A statement describing how the reorganization is fair and
equitable to the members.
(4) With respect to participating policies and contracts of the
reorganized insurer, a description of the current dividend
practices of the mutual insurance company and the dividend
practices to be followed by the reorganized insurer on and
after the effective date of the plan of reorganization.
(5) Information sufficient to demonstrate that the financial
condition of the mutual insurance company will not be
diminished upon reorganization.
(6) Provisions that provide the following:
(A) Immediate membership in the mutual insurance
holding company for all existing members of the mutual
insurance company.
(B) A member's interest in a mutual insurance holding
company may not be transferred, assigned, pledged, or
alienated in any manner except in connection with a
transfer, assignment, pledge, or alienation of the policy
from which the member's interest is derived.
(C) A member's interest in a mutual insurance holding
company will automatically terminate upon the lapse or
other termination of the policy from which the member's
interest is derived.
(7) Provisions for the discretionary granting of membership
interests for existing or future policyholders of the
reorganized insurer and any other existing or future direct or
indirect stock insurance company subsidiary.
(8) Provisions to ensure that, in the event of proceedings for
rehabilitation or liquidation involving a stock insurance
company subsidiary of the mutual insurance holding
company, the assets of the mutual insurance holding company
HEA 1329 — CC 1 35
will be available to satisfy the policyholder obligations of the
stock insurance company subsidiary.
(9) The proposed articles of incorporation and bylaws of the
mutual insurance holding company, intermediate stock
holding company, and reorganized insurer or proposed
amendments thereto as necessary to effectuate the
reorganization.
(10) A certification that the plan of reorganization has been
duly adopted by a vote of not less than two-thirds (2/3) of the
members of the board of directors of the mutual insurance
company.
(11) The names, addresses, and occupational information of
all corporate officers and all members of the board of
directors of the proposed mutual insurance holding company.
(12) A description of any plans for the initial sale of stock of
the intermediate stock holding company or reorganized
insurer.
(13) With regard to a policy of the mutual insurance company
in force on the effective date of a plan of reorganization, a
provision that provides the policy continues to remain in force
under the policy's terms as the policy of the reorganized
insurer.
(14) Any other information requested by the commissioner.
(b) A plan of reorganization that is filed with the commissioner
under this chapter may also include any other provision acceptable
to the commissioner.
Sec. 7. A plan of reorganization that is adopted by the board of
directors of the applicant may be amended or terminated by a vote
of not less than two-thirds (2/3) of the members of the board of
directors of the applicant:
(1) in response to the comments or recommendations of the
commissioner, or any other state or federal agency or entity,
before any solicitation of proxies from the members to vote on
the plan of reorganization;
(2) at any time before the members vote on the plan of
reorganization; or
(3) otherwise, at any time, with the consent of the
commissioner.
Sec. 8. (a) A plan of reorganization must be submitted for
approval by the members at a special or annual meeting of
members held in accordance with IC 27-1-7-7.
(b) The meeting of members under subsection (a) must be held
HEA 1329 — CC 1 36
after the commissioner has approved the plan under IC 27-14.5-4.
Sec. 9. In accordance with IC 27-1-7-9, a member:
(1) may vote in person or by proxy; and
(2) is entitled to cast only one (1) vote on the proposed plan of
reorganization, regardless of the number of policies or the
amount of insurance that the member may have with the
applicant or any affiliate of the applicant.
Sec. 10. All members, in accordance with IC 27-1-7-7, must be
provided with notice of the meeting at which the plan of
reorganization will be submitted for approval by the members in
the manner outlined in the plan of reorganization approved by the
commissioner.
Sec. 11. A person soliciting a proxy from a member shall
provide all members with a proxy statement that:
(1) identifies the person soliciting the proxy;
(2) informs the member of the right to vote upon the plan of
reorganization and the vote required for approval;
(3) briefly describes the proposed plan of reorganization and
any voting capital stock to be offered;
(4) explains the use of any new capital to be raised; and
(5) describes any employee benefit plan or stock option plan.
Sec. 12. A plan of reorganization is approved under this chapter
upon the affirmative vote of at least a majority of the votes cast by
eligible members either in person or by proxy.
Sec. 13. Not later than thirty (30) days after the members have
approved a plan of reorganization under this chapter, the applicant
must file with the commissioner the minutes of the meeting at
which the plan of reorganization was approved.
Sec. 14. The reorganized insurer to which insurance policies,
contracts, and other assets and obligations are transferred in
connection with a plan of reorganization under this chapter has,
with respect to the insurance policies, contracts, and other assets
and obligations, all rights, liabilities, and authority of the mutual
insurance company that is subject to the plan of reorganization.
Sec. 15. If a proceeding is pending against a mutual insurance
company that is the subject of a plan of reorganization under this
chapter:
(1) the proceeding may be continued against the reorganized
insurer under its former name after the effective date of the
reorganization, as if the reorganization had not occurred; or
(2) the reorganized insurer that succeeds to the mutual
insurance company's business may be substituted in the
HEA 1329 — CC 1 37
proceeding for the mutual insurance company.
Sec. 16. The reorganized insurer, at its discretion, may retain
the name the reorganized insurer had prior to its reorganization
into a mutual insurance holding company structure.
Chapter 3. Issuance of Capital Stock
Sec. 1. (a) Subject to subsection (c), a reorganized insurer may
issue shares of any class or type of stock permitted under this title.
(b) Subject to subsection (c), an intermediate stock holding
company may issue any class or type of stock permitted by the law
under which the intermediate stock holding company is organized.
(c) A reorganized insurer and an intermediate stock holding
company may issue shares of stock to a person or entity other than:
(1) the mutual insurance holding company of which it is a
subsidiary; or
(2) an intermediate stock holding company that is a subsidiary
of the mutual insurance holding company referred to in
subdivision (1);
only in compliance with this chapter.
Sec. 2. A plan to issue stock under this chapter must be adopted:
(1) by a vote of not less than two-thirds (2/3) of the members
of the board of directors of the mutual insurance company; or
(2) in the case of a plan to issue shares of stock that is not
concurrent with the formation of the mutual insurance
holding company, by a vote of not less than two-thirds (2/3) of
the members of the board of directors of the mutual insurance
holding company and the reorganized insurer or intermediate
stock holding company proposing to issue the stock.
Sec. 3. A board of directors that adopts a plan to issue stock
under this chapter may amend or withdraw the plan at any time
before the effective date by a vote of not less than two-thirds (2/3)
of the members of the board of directors. However, after the
commissioner has approved a plan to issue stock, the plan may not
be amended unless the commissioner approves the amendment.
Sec. 4. Not later than ninety (90) days after the adoption of a
plan to issue stock, the reorganized insurer or intermediate stock
holding company adopting the plan must file with the
commissioner an application that contains the following:
(1) A proposed plan to issue stock.
(2) The form of notice to be sent to members informing
members of the member's right to vote on the plan.
(3) The form of the proxy statement to be used to solicit the
votes of members, which must include a description of the
HEA 1329 — CC 1 38
plan.
(4) The form of proxy to be solicited from members.
(5) If it is necessary to amend the current articles of
incorporation or bylaws of a company that is affected by the
plan, a copy of the proposed articles of amendment and
amended bylaws of the company, which must comply with the
requirements of IC 27-1-8.
(6) A list of the officers and directors of each company that is
affected by the plan.
(7) A description of the following:
(A) The stock intended to be offered by the applicant.
(B) All shareholder rights applicable to the stock intended
to be offered by the applicant.
(C) The total number of shares authorized to be issued.
(D) The estimated number of shares the applicant intends
to offer.
(E) The intended date or range of dates for the offering.
(8) A list of the following:
(A) The name or names of any underwriter, syndicate
member, or placement agent involved.
(B) If known by the applicant, the name or names of each
person or group of persons who will control five percent
(5%) or more of the total outstanding shares of the class of
stock to be offered.
(C) If any of the persons listed under clause (A) or (B) is a
corporation or other business entity, the name of each
member of its board of directors or equivalent
management body.
(9) Copies of any filings that have been made, if applicable,
with the United States Securities and Exchange Commission.
(10) A description of all expenses expected to be incurred in
connection with the plan to issue stock.
(11) Any other information requested by the commissioner.
Sec. 5. A plan to issue stock that is filed with the commissioner
under this chapter must do the following:
(1) Describe the reasons for and the purposes of the proposed
issuance of shares of stock.
(2) Require that, after the effective date, the mutual insurance
holding company must at all times have the direct or indirect
power to cast at least a majority of the votes for the election
of the members of the board of directors of the reorganized
insurer and any intermediate stock holding company.
HEA 1329 — CC 1 39
(3) Provide that the aggregate total number of shares of stock
that may be purchased by the directors and officers of the
mutual insurance holding company and its subsidiaries and
associates may not exceed thirty percent (30%) of the total
number of shares of stock to be issued, not including any
shares attributed to the officers and directors and their
associates but held by one (1) or more tax-qualified employee
benefit plans.
(4) Provide that the aggregate total number of shares of stock
that may be purchased by:
(A) a single director or officer of the mutual insurance
holding company or the subsidiaries of the mutual
insurance holding company;
(B) associates of a person referred to in clause (A); and
(C) persons acting in concert with a person referred to in
clause (A) or (B);
may not exceed five percent (5%) of the total number of
shares to be issued under the plan, not including any shares
attributed to the officers and directors and their associates
but held by one (1) or more tax-qualified employee benefit
plans.
(5) Provide that a director, officer, agent, or employee of the
mutual insurance holding company or its subsidiaries, or an
associate of a director, officer, agent, or employee may not
receive any fee, commission, or other valuable consideration
for aiding, promoting, or assisting in the issuance of stock
under this section, except for:
(A) compensation as provided for in the plan and approved
by the commissioner;
(B) the person's usual, regular salary or compensation;
and
(C) reasonable fees and compensation paid to an individual
who is an attorney, accountant, or actuary for services
performed in the individual's independent practice, even
if the individual is also a director, officer, agent, or
employee of the mutual insurance holding company or its
subsidiaries.
(6) Describe:
(A) how the offering price of the stock to be sold was
established; or
(B) the method by which the offering price will be
determined.
HEA 1329 — CC 1 40
Sec. 6. A plan to issue stock in a public offering (other than an
offering in a private placement or solely in connection with a
consolidation, merger, share exchange, or other business
combination or an offering of stock in connection with an employee
benefit plan or under a stock option plan) must do the following:
(1) Provide for each eligible member to receive, without
payment, nontransferable subscription rights to purchase a
portion of the stock of the applicant and describe how the
offering price of the stock that may be purchased was
established or the method by which that price will be
determined, except that subscription rights need not be
granted to an eligible member who resides in a foreign
country or other jurisdiction for which the commissioner
determines that any registration, qualification, or filing
requirements would be impracticable or unduly burdensome
for reasons of cost or otherwise.
(2) Specify how subscription rights are to be allocated in
whole shares of stock among the eligible members.
(3) Provide a fair and equitable means for allocating shares of
stock in the event of an over-subscription to the shares by
eligible members exercising subscription rights received
under this chapter.
(4) Provide that any portion of shares not subject to
subscription rights and any shares of stock not subscribed to
by eligible members exercising subscription rights received
under this chapter, or not subscribed to by an employee
benefit plan or by directors, officers, and employees
exercising subscription rights, will be sold:
(A) in a public offering through an underwriter;
(B) through private placement; or
(C) by any other method approved by the commissioner
that is fair and equitable to members.
(5) Require a person that exercises subscription rights to:
(A) purchase at least a minimum number of shares of
stock; or
(B) a minimum dollar amount of shares of stock.
(6) Require that a majority of the members of the board of
directors of the mutual insurance holding company must be
persons who are not officers or employees of the mutual
insurance holding company or any of its subsidiaries, unless
this requirement is waived by the commissioner upon a
showing of good cause.
HEA 1329 — CC 1 41
(7) Require that at least three (3) members of the board of
directors of the:
(A) intermediate stock holding company; or
(B) reorganized insurer if there is no intermediate stock
holding company;
of the mutual insurance holding company must be persons
who are not officers or employees of the mutual insurance
holding company or any of its subsidiaries, unless this
requirement is waived by the commissioner upon a showing
of good cause.
(8) Provide that the mutual insurance holding company will
adopt articles of incorporation or articles of amendment that
include a provision prohibiting the mutual insurance holding
company from waiving any dividends from its subsidiaries
except:
(A) under conditions specified in the articles of
incorporation; and
(B) after approval of the waiver by the board of directors
of the mutual insurance holding company and by the
commissioner.
Sec. 7. A reorganized insurer or intermediate stock holding
company may offer and sell voting capital stock without complying
with sections 2 through 6 of this chapter if the board of directors
of the reorganized insurer or intermediate stock holding company
approves the offer and sale and each of the following conditions are
satisfied:
(1) The offer is not the first offering of voting capital stock by
the reorganized insurer or intermediate stock holding
company to a person or persons other than a mutual
insurance holding company or intermediate stock holding
company.
(2) The stock that is to be offered and sold is:
(A) listed or approved for listing upon notice of issuance on
the New York Stock Exchange, the Nasdaq Stock Market,
LLC, or any other exchange approved and designated by
the commissioner; or
(B) of senior rank or substantially equal rank to stock of
the same issuer that is listed or designated under clause
(A).
(3) The reorganized insurer or intermediate stock holding
company intending to make the offering delivers to the
commissioner, at least thirty (30) days before commencing the
HEA 1329 — CC 1 42
offering, a notice containing the following information:
(A) The name of the entity intending to make the offering
and the affiliated mutual insurance holding company.
(B) The total number and type of shares that are intended
to be offered.
(C) The intended date of the sale and whether the sale will
be by an underwritten public offering, a private offering,
or otherwise.
(D) The exchanges on which the shares (or shares of junior
or substantially equal rank) are listed, or the national
market systems on which the shares are designated
(demonstrating compliance with subdivision (2)), together
with the symbols under which the shares are traded.
(E) A record of the trading price and trading volume of the
previously issued voting capital stock shares during the
immediately preceding fifty-two (52) weeks or shorter
period of time if trading for a shorter period of time.
(4) The commissioner does not issue a written objection to the
offering and sale of voting capital stock under this section
without compliance with sections 2 through 6 of this chapter
within twenty (20) days after the commissioner receives the
notice filed under subdivision (3).
(5) The offer and sale of stock is completed not more than one
hundred eighty (180) days after the commissioner receives the
notice filed under subdivision (3), except as otherwise
provided by order of the commissioner.
Sec. 8. A mutual insurance holding company and its subsidiaries
and affiliates may not do any of the following:
(1) Lend funds to any person to finance the purchase of stock
in a stock offering by a mutual insurance holding company or
any of its subsidiaries.
(2) Pay commissions, "special fees", or other special or
extraordinary compensation to officers, directors, interested
persons, or affiliates for arranging, promoting, aiding,
assisting, or participating in the structure or placement of a
stock offering by the mutual insurance holding company or
any of its subsidiaries, except to the extent permitted under
section 5(5) of this chapter.
Sec. 9. (a) This section does not apply to the payment of
dividends, savings, or unabsorbed premium deposits allowed or
returned as set forth in IC 27-7-2-37.5 or other similar programs
permitted or filed in other states.
HEA 1329 — CC 1 43
(b) The reorganized insurer must obtain approval by the
commissioner of the dividend practices with respect to
participating policies and contracts in force as of the effective date
of the reorganization to be followed by the reorganized insurer as
set forth in IC 27-14.5-2-6(4) if the dividend practices of the
reorganized insurer will be different from the dividend practices
of the mutual insurance company.
(c) The commissioner may require the establishment of a closed
block or other mechanism that the commissioner finds to be fair
for the protection of mutual insurance company policyholder
dividends.
(d) The dividend practices of the reorganized insurer, the
requirement to establish a closed block or other mechanism, if any,
or the terms of the closed block, may be modified after approval
under subsection (b) or subsequent to a reorganization under
IC 27-14.5-2 only with the prior approval of the commissioner on
application of the reorganized insurer.
(e) Neither an intermediate stock holding company nor a
reorganized insurer may pay dividends or make other distributions
with respect to its stock or its shareholders if the reorganized
insurer has failed to pay policyholder dividends in compliance with
the dividend practices approved by the commissioner in
accordance with this section.
Chapter. 4. Public Hearing, Public Comment, Commissioner
Approval, and Effective Date of Plan
Sec. 1. Not more than sixty (60) days after the filing of a plan of
reorganization that:
(1) is complete; and
(2) does not include a plan to issue stock;
the commissioner shall approve the plan without holding a hearing
unless the commissioner concludes that one (1) or more of the
findings listed in section 6 of this chapter is likely to be made.
Sec. 2. Not more than sixty (60) days after:
(1) the filing of a plan of reorganization that:
(A) is complete; and
(B) includes a plan to issue stock; or
(2) the filing of an application with respect to a plan to issue
stock that is:
(A) complete; and
(B) filed sometime after the consummation of an approved
plan of reorganization;
the commissioner may, if deemed necessary because the
HEA 1329 — CC 1 44
commissioner believes that one (1) or more of the findings listed in
section 6 of this chapter may be made, conduct a public hearing or
allow public comment for a period of not more than sixty (60) days
to afford interested persons an opportunity to present information,
views, arguments, or comments in regard to the proposed plan.
Sec. 3. (a) If the commissioner deems that a public hearing or
public comment period is necessary, the commissioner shall
provide written notice of a hearing or comment period held under
this chapter at least thirty (30) days before the hearing or sixty (60)
days before the end of the comment period by publication in:
(1) a newspaper of general circulation in the city of
Indianapolis;
(2) a newspaper of general circulation in the city in which the
principal office of the applicant is located; and
(3) a newspaper of general circulation in any other city or
cities that the commissioner deems appropriate.
The commissioner may provide written notice of the hearing or
comment period by other means and to persons that the
commissioner deems appropriate.
(b) The notice provided under this section must:
(1) refer to the applicable statutory provisions;
(2) state the:
(A) date, time, and location of the hearing; or
(B) means by which comments may be submitted; and
(3) include a brief statement of the subject of the hearing or
comment period.
Sec. 4. At a hearing held under this chapter:
(1) any interested person may appear;
(2) any interested person may:
(A) file a written statement; or
(B) make an oral presentation; and
(3) at the discretion of the commissioner or the
commissioner's appointee, testimony may be taken under oath
or by affirmation.
Sec. 5. The commissioner shall approve or disapprove any plan
submitted under this article on or before the later of:
(1) thirty (30) days after a hearing or comment period held
under this chapter; or
(2) thirty (30) days after the commissioner accepts the
application relating to the plan.
Sec. 6. The commissioner shall approve a plan submitted under
this article unless the commissioner makes at least one (1) of the
HEA 1329 — CC 1 45
following findings with respect to the plan:
(1) Disapproval of the plan is necessary to prevent practices
that will cause material financial impairment to the applicant
or its subsidiaries.
(2) The financial position or management resources and
capabilities of the applicant or its subsidiaries or affiliates
warrant disapproval.
(3) The plan does not comply with this article.
(4) The proposed plan would not be fair and equitable to the
members.
Sec. 7. (a) The commissioner shall transmit to the applicant any
order approving or disapproving a plan submitted under this
article.
(b) If the commissioner disapproves a plan, the commissioner
shall provide the applicant with a written statement detailing:
(1) the reasons for; and
(2) all findings in connection with;
the disapproval.
Sec. 8. The approval by the commissioner of a plan to issue
stock expires one hundred eighty (180) days after the date of
approval, except as otherwise provided by an order of the
commissioner.
Sec. 9. Except as otherwise provided in this article, the
organization of a mutual insurance holding company under a plan
under this article must be conducted in compliance with the
provisions of IC 27-1-6 concerning the formation of domestic
insurance companies.
Sec. 10. (a) Except as otherwise provided in this article and
subject to subsection (b), the amendment of the articles of
incorporation of a mutual insurance company under a plan under
this article must be conducted in compliance with IC 27-1-8.
(b) The commissioner, the attorney general, and the secretary
of state shall:
(1) examine; and
(2) if warranted, approve;
the proposed articles of amendment before the amended articles
are submitted to the members for approval.
Sec. 11. (a) Before the commissioner issues a permit for
completion of organization of the mutual insurance holding
company and a certificate of authority for the reorganized insurer
under subsection (b), the commissioner must:
(1) issue notice to the applicant that the commissioner has
HEA 1329 — CC 1 46
approved the plan of reorganization of the applicant under
this article; and
(2) receive the minutes of the meeting of the members at
which the plan was approved under this article.
(b) After the events referred to in subsection (a), the
commissioner shall issue:
(1) a permit for completion of organization of the mutual
insurance holding company as provided in IC 27-1-6-11; and
(2) a certificate of authority for the reorganized insurer as
provided in IC 27-1-8-9.
Sec. 12. (a) A plan of reorganization is effective when:
(1) the commissioner has issued the permit for completion of
organization of the mutual insurance holding company; and
(2) the certificate of authority for the reorganized insurer has
been:
(A) issued by the commissioner under this chapter; and
(B) recorded in the office of the county recorder of the
county in which the principal office of the reorganized
insurer is located.
(b) A plan to issue stock is effective on the date on which the
stock is issued in compliance with this article.
Sec. 13. The commissioner may, at the applicant's expense, hire
attorneys, actuaries, accountants, investment bankers, and other
experts as may be reasonably necessary to assist the commissioner
in reviewing an application.
Chapter. 5. Mutual Insurance Holding Companies
Sec. 1. A mutual insurance holding company organized under
this article is subject to any rules adopted by the commissioner
under IC 4-22-2.
Sec. 2. The articles of incorporation of a mutual insurance
holding company must contain the following or provisions at least
substantially equivalent to the following:
(1) The name of the mutual insurance holding company,
which must include the term "mutual" or the abbreviation
"MHC".
(2) A provision specifying that one (1) purpose of the mutual
insurance holding company is, at all times, to have the direct
or indirect power to cast at least a majority of the votes for
the election of directors of each stock insurance company
subsidiary and any intermediate stock holding company.
(3) A provision specifying that the mutual insurance holding
company does not have the power to engage in the business of
HEA 1329 — CC 1 47
issuing insurance policies or contracts, except through a stock
insurance company subsidiary.
(4) A provision specifying that the mutual insurance holding
company is not authorized to issue voting stock.
(5) A provision setting forth any rights of members of the
mutual insurance holding company in the equity of the mutual
insurance holding company upon dissolution or liquidation.
(6) A provision specifying that:
(A) a member of the mutual insurance holding company is
not, as a member, personally liable for the acts, debts,
liabilities, or obligations of the mutual insurance holding
company; and
(B) no assessment of any kind may be imposed upon the
members of the mutual insurance holding company by any
person, including:
(i) the board of directors, members, or creditors of the
mutual insurance holding company; and
(ii) any governmental office or official, including the
commissioner;
because of any liability of any company or because of any
act, debt, or liability of the mutual insurance holding
company.
Sec. 3. The members of a mutual insurance holding company
have the rights and obligations specified in:
(1) this article; and
(2) the articles of incorporation and bylaws of the mutual
insurance holding company.
Sec. 4. (a) With the written approval of the commissioner, and
subject to any conditions that the commissioner may impose, a
mutual insurance holding company may do any of the following:
(1) Merge or consolidate with, or acquire the assets of:
(A) a mutual insurance holding company licensed under
this article; or
(B) any similar entity organized under the laws of any
other state.
(2) Either alone or together with one (1) or more of an
intermediate stock holding company, a stock insurance
company subsidiaries or other subsidiaries, directly or
indirectly, acquire the stock or assets of:
(A) a stock insurance company;
(B) a mutual insurance company that is reorganized under
this article or the law of its state of organization; or
HEA 1329 — CC 1 48
(C) a mutual insurance company.
(3) Acquire a stock insurance company through the merger of
the stock insurance company or its parent company, as
applicable, into:
(A) a stock insurance company subsidiary; or
(B) an intermediate stock holding company subsidiary or
the mutual insurance holding company.
(b) A mutual insurance holding company and its affiliates may:
(1) establish any other type of entity as otherwise permitted
by law; and
(2) acquire the stock or assets of any other entity or person as
otherwise permitted by law.
(c) Whenever a mutual insurance holding company:
(1) holds;
(2) acquires; or
(3) plans to acquire;
more than fifty percent (50%) of the voting capital stock of a stock
insurance company, the mutual insurance holding company must
submit to the commissioner a description of any membership
interests of policyholders of the stock insurance company in the
mutual insurance holding company.
Sec. 5. (a) Except as provided in subsection (b), a mutual
insurance holding company:
(1) has and may exercise all the rights and privileges of
insurance companies formed under this title; and
(2) is subject to all of the requirements and regulations
imposed upon insurance companies formed under this title.
(b) The exceptions referred to in subsection (a) are as follows:
(1) A mutual insurance holding company has no right or
privilege to write insurance (except through a stock insurance
company subsidiary) and is not subject to any requirement or
rule adopted under IC 4-22-2 relating to the writing of
insurance.
(2) A mutual insurance holding company is not subject to the
surplus requirements in IC 27-1-6-15.
(3) A mutual insurance holding company is not subject to the
deposit requirement in IC 27-1-6-15(d).
(4) A mutual insurance holding company is not subject to the
investment requirements under IC 27-1-12, IC 27-1-13, or
IC 27-1-23-2.6 that limit or restrict investments in
subsidiaries.
(5) A mutual insurance holding company is not subject to
HEA 1329 — CC 1 49
risk-based capital requirements under IC 27-1-36.
(6) A mutual insurance holding company is not subject to a
requirement under this title if the commissioner determines
by order or rule adopted by the commissioner under
IC 4-22-2 that the requirement does not apply to the mutual
insurance holding company.
(7) A mutual insurance holding company is not subject to any
requirement or rule adopted under IC 4-22-2 that is imposed
upon insurance companies formed under this title to the
extent that the requirement or rule is in conflict with this
article.
Sec. 6. (a) Not later than June 1 of each year, each mutual
insurance holding company must file with the commissioner an
annual statement consisting of the following information:
(1) Audited financial statements, including:
(A) an income statement;
(B) a balance sheet; and
(C) a statement of cash flows.
(2) Complete information on the status of any condition
imposed in connection with the approval of a plan of
reorganization.
(3) An investment plan covering all assets of the mutual
insurance holding company.
(4) A statement disclosing any intention to pledge, borrow
against, alienate, hypothecate, or in any way encumber the
assets of the mutual insurance holding company.
(b) The commissioner, through an order or by a rule adopted
under IC 4-22-2, may waive or suspend all or any part of the
requirements of subsection (a) for a particular mutual insurance
holding company or class of mutual insurance holding companies.
Sec. 7. (a) A mutual insurance holding company, an
intermediate stock holding company, and stock insurance company
subsidiaries that are owned entirely or in part, directly or
indirectly, by the mutual insurance holding company constitute an
insurance holding company system (as defined in IC 27-1-23-1).
(b) Notwithstanding subsection (a), a separate filing or approval
is not required under IC 27-1-23 for a reorganization that:
(1) is included in a plan approved under this article; and
(2) does not involve the acquisition of control of an insurance
company that is not affiliated with the applicant before the
reorganization.
Sec. 8. A membership interest in a mutual insurance holding
HEA 1329 — CC 1 50
company does not constitute a security under Indiana law.
Sec. 9. A mutual insurance holding company may convert to a
stock company under IC 27-15 as though the mutual insurance
holding company were a mutual insurance company.
Chapter 6. Miscellaneous Provisions
Sec. 1. (a) This article, while independent of any other law, is
supplemental to IC 27-1-2 through IC 27-1-20.
(b) All provisions of IC 27-1-2 through IC 27-1-20 are fully and
completely applicable to this article in the same manner as if the
provisions of this article had been an original part of IC 27-1-2
through IC 27-1-20. If any conflict exists between this article and
IC 27-1-2 through IC 27-1-20, this article is controlling.
Sec. 2. All information, documents, and copies of information
and documents obtained by or disclosed to the commissioner or to
any other person in the course of an examination or approval of a
plan under this article:
(1) are declared confidential for purposes of IC 5-14-3-4(a)(1);
(2) shall be given confidential treatment;
(3) are not subject to subpoena; and
(4) shall not be made public by the commissioner or any other
person, except to insurance departments of other states with
the prior written consent of the applicant.
Sec. 3. Any action:
(1) challenging the validity of; or
(2) arising out of;
an action that is taken or proposed to be taken under this article
must commence not later than thirty (30) days after the approval
by the commissioner of the plan under which or in respect of which
the action is taken or proposed to be taken.
Sec. 4. The provisions of this article are severable in the manner
provided in IC 1-1-1-8(b).
Sec. 5. (a) A person who is aggrieved by an agency action of the
commissioner under this article may petition for judicial review of
the action in accordance, so far as practicable, with IC 4-21.5-5.
(b) A person who is aggrieved by a failure of the commissioner
to act or make a determination required by this article may bring
an action for mandate in the circuit court of Marion County to
compel the commissioner to act or make the determination.
SECTION 31. IC 27-19-1-5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2023]: Sec. 5. For the purposes of this article, an individual who
continues to pay premiums for a policy or contract offered by a
HEA 1329 — CC 1 51
qualified health plan issuer in a benefit year that follows the benefit
year in which the individual purchased the original policy or
contract is considered to have purchased a new policy or contract
for the purposes of 45 CFR 147.106(h)(2).
SECTION 32. IC 35-40-5-8.5, AS ADDED BY P.L.78-2018,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
MAY 1, 2023]: Sec. 8.5. (a) This section applies if:
(1) a defendant has filed an appeal of the defendant's conviction;
or
(2) the state has filed an appeal in connection with criminal
proceedings against a defendant.
(b) A:
(1) victim or alleged victim; or
(2) spouse or member of the immediate family (as defined in
IC 27-14-1-17 (before its repeal) or IC 27-14.5-1-16) of the
victim or alleged victim, if:
(A) the victim or alleged victim is deceased; and
(B) the spouse or the immediate family member is not a
defendant in the criminal case;
in a case described in subsection (a) is entitled, at no charge, to an
electronic copy of the transcript prepared for appeal in the case
described in subsection (a).
(c) The trial court clerk shall provide the victim or alleged victim (or
spouse or immediate family member) with an electronic copy of the
transcript as soon as practicable after the court reporter has filed the
transcript with the clerk.
(d) The victim or alleged victim (or spouse or immediate family
member) is not entitled to any confidential information that the court
has excluded from public access under the Indiana rules of appellate
procedure, the court administrative rules adopted by the supreme court,
or any other statute or court rule.
SECTION 33. An emergency is declared for this act.
HEA 1329 — CC 1 Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: 	Time: 
HEA 1329 — CC 1