Indiana House Bill HB1332 Comm Sub / Bill

                    *EH1332.1*
March 1, 2024
ENGROSSED
HOUSE BILL No. 1332
_____
DIGEST OF HB 1332 (Updated February 28, 2024 10:43 am - DI 104)
Citations Affected:  IC 27-1; IC 27-2; IC 27-4; IC 27-6; IC 27-8;
IC 27-13; noncode.
Synopsis:  Department of insurance regulatory matters. Establishes the
insurance producer education and continuing education commission
with appointments by the commissioner of the department of insurance.
Repeals the insurance producer education and continuing education
advisory council. Repeals the law requiring an alien or foreign
insurance company to annually submit to the department of insurance
(department) a condensed statement of its assets and liabilities and
requiring the department to publish the statement in a newspaper. Adds
to the law on the regulation of insurance holding company systems
provisions concerning liquidity stress testing according to the
framework established by the National Association of Insurance
Commissioners. Amends the law on insurance administrators to set
forth certain circumstances under which an insurance administrator is
required to apply to Indiana for a license. Amends the law on
individual prescription drug rebates and the law on group prescription
drug rebates to authorize the department to adopt rules for the
(Continued next page)
Effective:  June 30, 2024; July 1, 2024.
Carbaugh, Lehman
(SENATE SPONSOR — BALDWIN)
January 10, 2024, read first time and referred to Committee on Insurance.
January 25, 2024, amended, reported — Do Pass.
January 31, 2024, read second time, ordered engrossed. Engrossed.
February 1, 2024, read third time, passed. Yeas 95, nays 0.
SENATE ACTION
February 7, 2024, read first time and referred to Committee on Health and Provider
Services.
February 29, 2024, amended, reported favorably — Do Pass.
EH 1332—LS 6979/DI 55 Digest Continued
enforcement of those laws and to specify that a violation of either of
those laws is an unfair or deceptive act or practice in the business of
insurance. Requires an insurer to only offer to plan sponsors the
following plans: (1) A plan that applies 100% of the rebates to reduce
premiums for all covered individuals equally. (2) A plan that calculates
defined cost sharing for covered individuals of the plan sponsor at the
point of sale based on a price that is reduced by an amount equal to at
least 85% of all of the rebates received or estimated to be received by
the insurer. Allows a marketplace plan to seek a temporary waiver from
compliance to prescription drug rebate plan requirements. Changes the
date of applicability for provisions regarding a notice of material
change from after June 30, 2024, to after June 30, 2025. Amends the
property and casualty insurance guaranty association law concerning
the allocation, transfer, or assumption by one insurer of a policy that
was issued by another insurer.
EH 1332—LS 6979/DI 55EH 1332—LS 6979/DI 55 March 1, 2024
Second Regular Session of the 123rd General Assembly (2024)
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 2023 Regular Session of the General Assembly.
ENGROSSED
HOUSE BILL No. 1332
A BILL FOR AN ACT to amend the Indiana Code concerning
insurance.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 27-1-15.7-4, AS AMENDED BY P.L.148-2017,
2 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 4. (a) The commissioner shall approve and
4 disapprove continuing education courses after considering
5 recommendations made by the insurance producer education and
6 continuing education advisory council created commission established
7 under section 6 6.5 of this chapter.
8 (b) The commissioner may not approve a course under this section
9 if the course:
10 (1) is designed to prepare an individual to receive an initial
11 license under this chapter;
12 (2) concerns only routine, basic office skills, including filing,
13 keyboarding, and basic computer skills; or
14 (3) may be completed by a licensee without supervision by an
15 instructor, unless the course involves an examination process that
16 is:
17 (A) completed and passed by the licensee as determined by the
EH 1332—LS 6979/DI 55 2
1 provider of the course; and
2 (B) approved by the commissioner.
3 (c) The commissioner shall approve a course under this section that
4 is submitted for approval by an insurance trade association or
5 professional insurance association if:
6 (1) the objective of the course is to educate a manager or an
7 owner of a business entity that is required to obtain an insurance
8 producer license under IC 27-1-15.6-6(d);
9 (2) the course teaches insurance producer management and is
10 designed to result in improved efficiency in insurance producer
11 operations, systems use, or key functions;
12 (3) the course is designed to benefit consumers; and
13 (4) the course is not described in subsection (b).
14 (d) Approval of a continuing education course under this section
15 shall be for a period of not more than two (2) years.
16 (e) A prospective provider of a continuing education course shall
17 pay:
18 (1) a fee of forty dollars ($40) for each course submitted for
19 approval of the commissioner under this section; or
20 (2) an annual fee of five hundred dollars ($500) not later than
21 January 1 of a calendar year, which entitles the prospective
22 provider to submit an unlimited number of courses for approval
23 of the commissioner under this section during the calendar year.
24 The commissioner may waive all or a portion of the fee for a course
25 submitted under a reciprocity agreement with another state for the
26 approval or disapproval of continuing education courses. Fees collected
27 under this subsection shall be deposited in the department of insurance
28 fund established under IC 27-1-3-28.
29 (f) A prospective provider of a continuing education course may
30 electronically deliver to the commissioner any supporting materials for
31 the course.
32 (g) The commissioner shall adopt rules under IC 4-22-2 to establish
33 procedures for approving continuing education courses.
34 SECTION 2. IC 27-1-15.7-5, AS AMENDED BY P.L.81-2012,
35 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2024]: Sec. 5. (a) To qualify as a certified prelicensing course
37 of study for purposes of IC 27-1-15.6-6, an insurance producer program
38 of study must meet all of the following criteria:
39 (1) Be conducted or developed by an:
40 (A) insurance trade association;
41 (B) accredited college or university;
42 (C) educational organization certified by the insurance
EH 1332—LS 6979/DI 55 3
1 producer education and continuing education advisory council;
2 commission; or
3 (D) insurance company licensed to do business in Indiana.
4 (2) Provide for self-study or instruction provided by an approved
5 instructor in a structured setting, as follows:
6 (A) For life insurance producers, not less than twenty (20)
7 hours of instruction in a structured setting or comparable
8 self-study on:
9 (i) ethical practices in the marketing and selling of
10 insurance;
11 (ii) requirements of the insurance laws and administrative
12 rules of Indiana; and
13 (iii) principles of life insurance.
14 (B) For health insurance producers, not less than twenty (20)
15 hours of instruction in a structured setting or comparable
16 self-study on:
17 (i) ethical practices in the marketing and selling of
18 insurance;
19 (ii) requirements of the insurance laws and administrative
20 rules of Indiana; and
21 (iii) principles of health insurance.
22 (C) For life and health insurance producers, not less than forty
23 (40) hours of instruction in a structured setting or comparable
24 self-study on:
25 (i) ethical practices in the marketing and selling of
26 insurance;
27 (ii) requirements of the insurance laws and administrative
28 rules of Indiana;
29 (iii) principles of life insurance; and
30 (iv) principles of health insurance.
31 (D) For property and casualty insurance producers, not less
32 than forty (40) hours of instruction in a structured setting or
33 comparable self-study on:
34 (i) ethical practices in the marketing and selling of
35 insurance;
36 (ii) requirements of the insurance laws and administrative
37 rules of Indiana;
38 (iii) principles of property insurance; and
39 (iv) principles of liability insurance.
40 (E) For personal lines producers, a minimum of twenty (20)
41 hours of instruction in a structured setting or comparable
42 self-study on:
EH 1332—LS 6979/DI 55 4
1 (i) ethical practices in the marketing and selling of
2 insurance;
3 (ii) requirements of the insurance laws and administrative
4 rules of Indiana; and
5 (iii) principles of property and liability insurance applicable
6 to coverages sold to individuals and families for primarily
7 noncommercial purposes.
8 (F) For title insurance producers, not less than ten (10) hours
9 of instruction in a structured setting or comparable self-study
10 on:
11 (i) ethical practices in the marketing and selling of title
12 insurance;
13 (ii) requirements of the insurance laws and administrative
14 rules of Indiana;
15 (iii) principles of title insurance, including underwriting and
16 escrow issues; and
17 (iv) principles of the federal Real Estate Settlement
18 Procedures Act (12 U.S.C. 2608).
19 (G) For annuity product producers, not less than four (4) hours
20 of instruction in a structured setting or comparable self-study
21 on:
22 (i) types and classifications of annuities;
23 (ii) identification of the parties to an annuity;
24 (iii) the manner in which fixed, variable, and indexed
25 annuity contract provisions affect consumers;
26 (iv) income taxation of qualified and non-qualified
27 annuities;
28 (v) primary uses of annuities; and
29 (vi) appropriate sales practices, replacement, and disclosure
30 requirements.
31 (3) Instruction provided in a structured setting must be provided
32 only by individuals who meet the qualifications established by the
33 commissioner under subsection (b).
34 (b) The commissioner, after consulting with the insurance producer
35 education and continuing education advisory council, commission,
36 shall adopt rules under IC 4-22-2 prescribing the criteria that a person
37 must meet to render instruction in a certified prelicensing course of
38 study.
39 (c) The commissioner shall adopt rules under IC 4-22-2 prescribing
40 the subject matter that an insurance producer program of study must
41 cover to qualify for certification as a certified prelicensing course of
42 study under this section.
EH 1332—LS 6979/DI 55 5
1 (d) The commissioner may make recommendations that the
2 commissioner considers necessary for improvements in course
3 materials.
4 (e) The commissioner shall designate a program of study that meets
5 the requirements of this section as a certified prelicensing course of
6 study for purposes of IC 27-1-15.6-6.
7 (f) For each person that provides one (1) or more certified
8 prelicensing courses of study, the commissioner shall annually
9 determine, of all individuals who received classroom instruction in the
10 certified prelicensing courses of study provided by the person, the
11 percentage who passed the examination required by IC 27-1-15.6-5.
12 The commissioner shall determine only one (1) passing percentage
13 under this subsection for all lines of insurance described in
14 IC 27-1-15.6-7(a) for which the person provides classroom instruction
15 in certified prelicensing courses of study.
16 (g) The commissioner may, after notice and opportunity for a
17 hearing, do the following:
18 (1) Withdraw the certification of a course of study that does not
19 maintain reasonable standards, as determined by the
20 commissioner for the protection of the public.
21 (2) Disqualify a person that is currently qualified under
22 subsection (b) to render instruction in a certified prelicensing
23 course of study from rendering the instruction if the passing
24 percentage calculated under subsection (f) is less than forty-five
25 percent (45%).
26 (h) Current course materials for a prelicensing course of study that
27 is certified under this section must be submitted to the commissioner
28 upon request, but not less frequently than once every three (3) years.
29 SECTION 3. IC 27-1-15.7-6 IS REPEALED [EFFECTIVE JULY
30 1, 2024]. Sec. 6. (a) As used in this section, "council" refers to the
31 insurance producer education and continuing education advisory
32 council created under subsection (b).
33 (b) The insurance producer education and continuing education
34 advisory council is created within the department. The council consists
35 of the commissioner and fifteen (15) members appointed by the
36 governor as follows:
37 (1) Two (2) members recommended by the Professional Insurance
38 Agents of Indiana.
39 (2) Two (2) members recommended by the Independent Insurance
40 Agents of Indiana.
41 (3) Two (2) members recommended by the Indiana Association
42 of Insurance and Financial Advisors.
EH 1332—LS 6979/DI 55 6
1 (4) Two (2) members recommended by the Indiana State
2 Association of Health Underwriters.
3 (5) Two (2) representatives of direct writing or exclusive
4 producer's insurance companies.
5 (6) One (1) representative of the Association of Life Insurance
6 Companies.
7 (7) One (1) member recommended by the Insurance Institute of
8 Indiana.
9 (8) One (1) member recommended by the Indiana Land Title
10 Association.
11 (9) Two (2) other individuals.
12 (c) Members of the council serve for a term of three (3) years.
13 Members may not serve more than two (2) consecutive terms.
14 (d) Before making appointments to the council, the governor must:
15 (1) solicit; and
16 (2) select appointees to the council from;
17 nominations made by organizations and associations that represent
18 individuals and corporations selling insurance in Indiana.
19 (e) The council shall meet at least semiannually.
20 (f) A member of the council is entitled to the minimum salary per
21 diem provided under IC 4-10-11-2.1(b). A member is also entitled to
22 reimbursement for traveling expenses and other expenses actually
23 incurred in connection with the member's duties, as provided in the
24 state travel policies and procedures established by the state department
25 of administration and approved by the state budget agency.
26 (g) The council shall review and make recommendations to the
27 commissioner with respect to course materials, curriculum, and
28 credentials of instructors of each prelicensing course of study for which
29 certification by the commissioner is sought under section 5 of this
30 chapter and shall make recommendations to the commissioner with
31 respect to educational requirements for insurance producers.
32 (h) A member of the council or designee of the commissioner shall
33 be permitted access to any classroom while instruction is in progress
34 to monitor the classroom instruction.
35 (i) The council shall make recommendations to the commissioner
36 concerning the following:
37 (1) Continuing education courses for which the approval of the
38 commissioner is sought under section 4 of this chapter.
39 (2) Rules proposed for adoption by the commissioner that would
40 affect continuing education.
41 SECTION 4. IC 27-1-15.7-6.5 IS ADDED TO THE INDIANA
42 CODE AS A NEW SECTION TO READ AS FOLLOWS
EH 1332—LS 6979/DI 55 7
1 [EFFECTIVE JULY 1, 2024]: Sec. 6.5. (a) As used in this section,
2 "commission" refers to the insurance producer education and
3 continuing education commission established by subsection (b).
4 (b) The insurance producer education and continuing education
5 commission is established within the department. The
6 commissioner shall appoint the following seven (7) individuals:
7 (1) One (1) individual nominated by the Professional
8 Insurance Agents of Indiana or its successor organization.
9 (2) One (1) individual nominated by the Independent
10 Insurance Agents of Indiana or its successor organization.
11 (3) One (1) individual nominated by the Indiana Association
12 of Insurance and Financial Advisors or its successor
13 organization.
14 (4) One (1) individual nominated by the Indiana State
15 Association of Health Underwriters or its successor
16 organization.
17 (5) One (1) individual nominated by the Association of Life
18 Insurance Companies or its successor organization.
19 (6) One (1) individual nominated by the Insurance Institute of
20 Indiana or its successor organization.
21 (7) One (1) individual nominated by the Indiana Land Title
22 Association or its successor organization.
23 The commissioner shall solicit nominations from the entities set
24 forth in this subsection. The commissioner may deny to make the
25 appointment of an individual nominated under this subsection only
26 if the commissioner determines that the individual is not in good
27 standing with the department or is not qualified. If the
28 commissioner denies the appointment of an individual nominated
29 under this subsection, the commissioner shall provide the
30 nominating entity with the reason for the denial and allow the
31 nominating entity to submit an alternative nomination.
32 (c) A member of the commission serves for a term of three (3)
33 years that expires June 30, 2027, and every third year thereafter.
34 A member may not serve more than two (2) consecutive terms.
35 (d) The commissioner shall appoint a member of the commission
36 to serve as chairperson, who serves at the will of the commissioner.
37 The commission shall meet:
38 (1) at the call of the chairperson; and
39 (2) at least semiannually.
40 The department shall staff the commission. Four (4) members
41 constitute a quorum of the commission.
42 (e) The commissioner shall fill a vacancy on the commission
EH 1332—LS 6979/DI 55 8
1 with a nomination from the entity that nominated the predecessor
2 or the entity's succession. The individual appointed to fill the
3 vacancy shall serve for the remainder of the predecessor's term.
4 (f) A member of the commission is entitled to the minimum
5 salary per diem provided under IC 4-10-11-2.1(b). A member is
6 also entitled to reimbursement for traveling expenses and other
7 expenses actually incurred in connection with the member's duties,
8 in accordance with state travel policies and procedures established
9 by the Indiana department of administration and approved by the
10 budget agency. Money paid under this subsection shall be paid
11 from amounts appropriated to the department.
12 (g) The commission shall review and make recommendations to
13 the commissioner concerning the following:
14 (1) Course materials and curriculum and instructor
15 credentials for prelicensing courses of study for which
16 certification by the commissioner is sought under section 5 of
17 this chapter.
18 (2) Continuing education requirements for insurance
19 producers.
20 (3) Continuing education courses for which the approval of
21 the commissioner is sought under section 4 of this chapter.
22 (4) Rules proposed for adoption by the commissioner
23 concerning continuing education under this chapter.
24 (h) A member of the commission or a designee of the
25 commissioner is permitted access to any classroom while
26 instruction is in progress to monitor the classroom instruction.
27 SECTION 5. IC 27-1-18-5 IS REPEALED [EFFECTIVE JULY 1,
28 2024]. Sec. 5. At the time of filing its annual statement, an alien or
29 foreign company shall submit, on a form prescribed by the department,
30 a condensed statement of its assets and liabilities as of December 31 of
31 the preceding year. If the department, on examination of such
32 statement, determines from information available to it that it is true and
33 correct, it shall cause such statement to be published in a newspaper in
34 this state selected by the department. In the event the department
35 determines that the statement submitted by a company is inaccurate or
36 incorrect, it shall, after giving the company notice of the proposed
37 changes and an opportunity to be heard, certify the corrected statement
38 and proceed with its publication as above provided. The company shall
39 bear the expenses of the publication, but in no event shall an amount
40 exceeding forty dollars ($40) be charged for such publication. Any cost
41 of publication that exceeds forty dollars ($40) must be borne by the
42 newspaper publishing the statement.
EH 1332—LS 6979/DI 55 9
1 SECTION 6. IC 27-1-23-1, AS AMENDED BY P.L.72-2016,
2 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 1. As used in this chapter, the following terms
4 shall have the respective meanings set forth in this section, unless the
5 context shall otherwise require:
6 (a) An "acquiring party" is the specific person by whom an
7 acquisition of control of a domestic insurer or of any corporation
8 controlling a domestic insurer is to be effected, and each person who
9 directly, or indirectly through one (1) or more intermediaries, controls
10 the person specified.
11 (b) An "affiliate" of, or person "affiliated" with, a specific person,
12 is a person that directly, or indirectly through one (1) or more
13 intermediaries, controls, or is controlled by, or is under common
14 control with, the person specified.
15 (c) A "beneficial owner" of a voting security includes any person
16 who, directly or indirectly, through any contract, arrangement,
17 understanding, relationship, revocable or irrevocable proxy, or
18 otherwise has or shares:
19 (1) voting power including the power to vote, or to direct the
20 voting of, the security; or
21 (2) investment power which includes the power to dispose, or to
22 direct the disposition, of the security.
23 (d) "Commissioner" means the insurance commissioner of this state.
24 (e) "Control" (including the terms "controlling", "controlled by", and
25 "under common control with") means the possession, direct or indirect,
26 of the power to direct or cause the direction of the management and
27 policies of a person, whether through the beneficial ownership of
28 voting securities, by contract other than a commercial contract for
29 goods or nonmanagement services, or otherwise, unless the power is
30 the result of an official position or corporate office. Control shall be
31 presumed to exist if any person beneficially owns ten percent (10%) or
32 more of the voting securities of any other person. The commissioner
33 may determine this presumption has been rebutted only by a showing
34 made in the manner provided by section 3(k) of this chapter that
35 control does not exist in fact, after giving all interested persons notice
36 and an opportunity to be heard. Control shall be presumed again to
37 exist upon the acquisition of beneficial ownership of each additional
38 five percent (5%) or more of the voting securities of the other person.
39 The commissioner may determine, after furnishing all persons in
40 interest notice and opportunity to be heard, that control exists in fact,
41 notwithstanding the absence of a presumption to that effect.
42 (f) "Department" means the department of insurance created by
EH 1332—LS 6979/DI 55 10
1 IC 27-1-1-1.
2 (g) A "domestic insurer" is an insurer organized under the laws of
3 this state.
4 (h) "Earned surplus" means an amount equal to the unassigned
5 funds of an insurer as set forth in the most recent annual statement of
6 an insurer that is submitted to the commissioner, excluding surplus
7 arising from unrealized capital gains or revaluation of assets.
8 (i) "Enterprise risk" means an activity, circumstance, event, or series
9 of events that involves at least one (1) affiliate of an insurer that, if not
10 remedied promptly, is likely to have a material adverse effect upon the
11 financial condition or liquidity of the insurer or the insurer's insurance
12 holding company system as a whole, including an activity,
13 circumstance, event, or series of events that would cause the:
14 (1) insurer's risk based capital to fall into company action level
15 under IC 27-1-36; or
16 (2) insurer to be in hazardous financial condition subject to
17 IC 27-1-3-7 and rules adopted under IC 27-1-3-7.
18 (j) This subsection is effective beginning January 1, 2026.
19 "Group Capital Calculation Instructions" refers to the group
20 capital calculation instructions as adopted by the NAIC and as
21 amended by the NAIC from time to time in accordance with the
22 procedures adopted by the NAIC.
23 (j) (k) "Group wide supervisor" means the regulatory official who
24 is:
25 (1) authorized by the commissioner to conduct and coordinate
26 group wide supervision of an internationally active insurance
27 group; and
28 (2) determined by the commissioner to have sufficient significant
29 contact with the internationally active insurance group to enable
30 group wide supervision.
31 (k) (l) An "insurance holding company system" consists of two (2)
32 or more affiliated persons, one (1) or more of which is an insurer.
33 (l) (m) "Insurer" has the same meaning as set forth in IC 27-1-2-3,
34 except that it does not include:
35 (1) agencies, authorities, or instrumentalities of the United States,
36 its possessions and territories, the Commonwealth of Puerto Rico,
37 the District of Columbia, or a state or political subdivision of a
38 state; or
39 (2) nonprofit medical and hospital service associations.
40 The term includes a health maintenance organization (as defined in
41 IC 27-13-1-19) and a limited service health maintenance organization
42 (as defined in IC 27-13-1-27).
EH 1332—LS 6979/DI 55 11
1 (m) (n) "Internationally active insurance group" means an insurance
2 holding company system that:
3 (1) includes an insurer that is registered under section 3 of this
4 chapter; and
5 (2) meets the following requirements:
6 (A) The insurance holding company system has premiums
7 written in at least three (3) countries.
8 (B) The percentage of the insurance holding company system's
9 gross premiums written outside the United States is at least ten
10 percent (10%) of the insurance holding company system's total
11 gross written premiums.
12 (C) Based on a three (3) year rolling average, the:
13 (i) total assets of the insurance holding company system are
14 at least fifty billion dollars ($50,000,000,000); or
15 (ii) total gross written premiums of the insurance holding
16 company system are at least ten billion dollars
17 ($10,000,000,000).
18 (n) (o) "NAIC" refers to the National Association of Insurance
19 Commissioners.
20 (p) This subsection is effective beginning January 1, 2026.
21 "NAIC Liquidity Stress Test Framework" refers to a separate
22 NAIC publication that includes:
23 (1) a history of the NAIC's development of regulatory
24 liquidity stress testing;
25 (2) the Scope Criteria applicable for a specific data year; and
26 (3) the Liquidity Stress Test instructions and reporting
27 templates for a specific data year, such Scope Criteria,
28 instructions, and a reporting template as adopted by the
29 NAIC and as amended by the NAIC from time to time in
30 accordance with the procedures adopted by the NAIC.
31 (q) This subsection is effective beginning January 1, 2026.
32 "Scope Criteria", as detailed in the NAIC Liquidity Stress Test
33 Framework, refers to the designated exposure bases, along with the
34 minimum magnitudes of the designated exposure bases, for the
35 specified data year, which are used to establish a preliminary list
36 of insurers considered scoped into the NAIC Liquidity Stress Test
37 Framework for that data year.
38 (o) (r) "Supervisory college" means a temporary or permanent
39 forum:
40 (1) comprised of regulators, including other state, federal, and
41 international regulators, responsible for the supervision of:
42 (A) a domestic insurer that is part of an insurance holding
EH 1332—LS 6979/DI 55 12
1 company system that has international operations;
2 (B) an insurance holding company system described in clause
3 (A); or
4 (C) an affiliate of:
5 (i) a domestic insurer described in clause (A); or
6 (ii) an insurance holding company system described in
7 clause (B); and
8 (2) established to facilitate communication and cooperation
9 between the regulators described in subdivision (1).
10 (p) (s) A "person" is an individual, a corporation, a limited liability
11 company, a partnership, an association, a joint stock company, a trust,
12 an unincorporated organization, any similar entity or any combination
13 of the foregoing acting in concert. The term does not include the
14 following:
15 (1) A securities broker performing no more than the usual and
16 customary broker's function.
17 (2) A joint venture partnership that is exclusively engaged in
18 owning, managing, leasing, or developing real or tangible
19 personal property.
20 (q) (t) A "policyholder" of a domestic insurer includes any person
21 who owns an insurance policy or annuity contract issued by the
22 domestic insurer, any person reinsured by the domestic insurer under
23 a reinsurance contract or treaty between the person and the domestic
24 insurer, and any health maintenance organization with which the
25 domestic insurer has contracted to provide services or protection
26 against the cost of care.
27 (r) (u) "Securityholder" means a person that owns a security of a
28 specified person, including common stock, preferred stock, debt
29 obligations, and any other security that:
30 (1) is convertible to; or
31 (2) evidences the right to acquire;
32 a common stock, preferred stock, or debt obligation.
33 (s) (v) A "subsidiary" of a specified person is an affiliate controlled
34 by that person directly or indirectly through one (1) or more
35 intermediaries.
36 (t) (w) "Surplus" means the total of gross paid in and contributed
37 surplus, special surplus funds, and unassigned surplus, less treasury
38 stock at cost.
39 (u) (x) "Voting security" includes any security convertible into or
40 evidencing a right to acquire a voting security.
41 SECTION 7. IC 27-1-23-3, AS AMENDED BY P.L.124-2018,
42 SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
EH 1332—LS 6979/DI 55 13
1 JULY 1, 2024]: Sec. 3. (a) Every insurer which is authorized to do
2 business in this state and which is a member of an insurance holding
3 company system shall register with the commissioner, except a foreign
4 insurer subject to disclosure requirements and standards adopted by
5 statute or regulation in the jurisdiction of its domicile which are
6 substantially similar to those contained in:
7 (1) this section;
8 (2) section 4(a) and 4(c) of this chapter; and
9 (3) section 4(b) of this chapter or a provision such as the
10 following:
11 Each registered insurer shall keep current the information
12 required to be disclosed in its registration statement by
13 reporting all material changes or additions within fifteen
14 (15) days after the end of the month in which it learns of
15 each such change or addition.
16 Any insurer which is subject to registration under this section shall
17 register within fifteen (15) days after it becomes subject to registration,
18 and annually thereafter by July 1 of each year for the previous calendar
19 year, unless the commissioner for good cause shown extends the time
20 for registration, and then within such extended time. The commissioner
21 may require any authorized insurer which is a member of an insurance
22 holding company system but not subject to registration under this
23 section to furnish a copy of the registration statement or other
24 information filed by such insurer with the insurance regulatory
25 authority of its domiciliary jurisdiction.
26 (b) Every insurer subject to registration shall file a registration
27 statement on a form prescribed by the commissioner, which shall
28 contain current information about all of the following:
29 (1) The capital structure, general financial condition, ownership
30 and management of the insurer and any person controlling the
31 insurer.
32 (2) The identity of every member of the insurance holding
33 company system.
34 (3) The following agreements in force, relationships subsisting,
35 and transactions that are currently outstanding or that have
36 occurred during the last calendar year between such insurer and
37 its affiliates:
38 (A) loans, other investments, or purchases, sales or exchanges
39 of securities of the affiliates by the insurer or of the insurer by
40 its affiliates;
41 (B) purchases, sales, or exchanges of assets;
42 (C) transactions not in the ordinary course of business;
EH 1332—LS 6979/DI 55 14
1 (D) guarantees or undertakings for the benefit of an affiliate
2 which result in an actual contingent exposure of the insurer's
3 assets to liability, other than insurance contracts entered into
4 in the ordinary course of the insurer's business;
5 (E) all management and service contracts and all cost-sharing
6 arrangements;
7 (F) reinsurance agreements;
8 (G) dividends and other distributions to shareholders; and
9 (H) consolidated tax allocation agreements.
10 (4) Any pledge of the insurer's stock, including stock of any
11 subsidiary or controlling affiliate, for a loan made to any member
12 of the insurance holding company system.
13 (5) If requested by the commissioner, financial statements of the
14 insurance holding company system, the parent corporation of the
15 insurer, or all affiliates, including annual audited financial
16 statements filed with the federal Securities and Exchange
17 Commission under the Securities Act of 1933 (15 U.S.C. 77a et
18 seq.) or the federal Securities Exchange Act of 1934 (15 U.S.C.
19 78a et seq.).
20 (6) Statements reflecting that the insurer's:
21 (A) board of directors oversees corporate governance and
22 internal controls; and
23 (B) officers or senior management have approved and
24 implemented and maintain and monitor corporate governance
25 and internal control procedures.
26 (7) Other matters concerning transactions between registered
27 insurers and any affiliates as may be included from time to time
28 in any registration forms prescribed by the commissioner.
29 (8) Other information that the commissioner requires under rules
30 adopted under IC 4-22-2.
31 (c) Every registration statement must contain a summary outlining
32 all items in the current registration statement representing changes
33 from the prior registration statement.
34 (d) No information need be disclosed on the registration statement
35 filed pursuant to subsection (b) if such information is not material for
36 the purposes of this section. Unless the commissioner by rule or order
37 provides otherwise, sales, purchases, exchanges, loans or extensions of
38 credit, or investments, involving one-half of one per cent percent
39 (0.5%) or less of an insurer's admitted assets as of the 31st thirty-first
40 day of December next preceding shall not be deemed material for
41 purposes of this section. Beginning January 1, 2026, the definition
42 of materiality set forth in this subsection does not apply for
EH 1332—LS 6979/DI 55 15
1 purposes of the Group Capital Calculation or the Liquidity Stress
2 Test Framework.
3 (e) Each registered insurer shall keep current the information
4 required to be disclosed in its registration statement by reporting all
5 material changes or additions on amendment forms prescribed by the
6 commissioner within fifteen (15) days after the end of the month in
7 which it learns of each such change or addition.
8 (f) A person within an insurance holding company system subject
9 to registration under this chapter shall provide complete and accurate
10 information to an insurer when that information is reasonably necessary
11 to enable the insurer to comply with this chapter.
12 (g) The commissioner shall terminate the registration of any insurer
13 which demonstrates that it no longer is subject to the provisions of this
14 section.
15 (h) The commissioner may require or allow two (2) or more
16 affiliated insurers subject to registration under this section to file a
17 consolidated registration statement or consolidated reports amending
18 their consolidated registration statement or their individual registration
19 statements.
20 (i) The commissioner may allow an insurer which is authorized to
21 do business in this state and which is a member of an insurance holding
22 company system to register on behalf of any affiliated insurer which is
23 required to register under subsection (a) and to file all information and
24 material required to be filed under this section.
25 (j) The provisions of this section shall not apply to any insurer,
26 information, or transaction if and to the extent that the commissioner
27 by rule or order shall exempt the same from the provisions of this
28 section.
29 (k) Any person may file with the commissioner a disclaimer of
30 affiliation with any authorized insurer or such a disclaimer may be filed
31 by such insurer or any member of an insurance holding company
32 system. The disclaimer shall fully disclose all material relationships
33 and bases for affiliation between such person and such insurer as well
34 as the basis for disclaiming such affiliation. After a disclaimer has been
35 filed, the insurer shall be relieved of any duty to register or report under
36 this section which may arise out of the insurer's relationship with such
37 person unless and until the commissioner disallows such disclaimer. A
38 disclaimer of affiliation is considered to have been granted unless the
39 commissioner, less than thirty (30) days after receiving a disclaimer,
40 notifies the person filing the disclaimer that the disclaimer is
41 disallowed. The commissioner shall disallow such disclaimer only after
42 furnishing all parties in interest with notice and opportunity to be
EH 1332—LS 6979/DI 55 16
1 heard.
2 (l) The person that ultimately controls an insurer that is subject to
3 registration shall file with the lead state commissioner of the insurance
4 holding company system (as determined by the procedures in the
5 Financial Analysis Handbook) an annual enterprise risk report that
6 identifies, to the best of the person's knowledge, the material risks
7 within the insurance holding company system that could pose
8 enterprise risk to the insurer.
9 (m) This subsection is effective beginning January 1, 2026.
10 Except as otherwise provided in subdivisions (1) through (7), the
11 ultimate controlling person of every insurer subject to registration
12 shall file, concurrently with the registration, an annual group
13 capital calculation as directed by the lead state commissioner. The
14 report shall be completed in accordance with the NAIC Group
15 Capital Calculation Instructions, which may permit the lead state
16 commissioner to allow a controlling person that is not the ultimate
17 controlling person to file the group capital calculation. The report
18 shall be filed with the lead state commissioner of the insurance
19 holding company system as determined by the commissioner in
20 accordance with the procedures within the Financial Analysis
21 Handbook adopted by the NAIC. Insurance holding company
22 systems described in the following are exempt from filing the group
23 capital calculation:
24 (1) An insurance holding company system that has only one
25 (1) insurer within its holding company structure, writes
26 business only in its domestic state, is licensed only in its
27 domestic state, and assumes no business from any other
28 insurer.
29 (2) An insurance holding company system that is required to
30 perform a group capital calculation specified by the United
31 States Federal Reserve Board. The lead state commissioner
32 shall request the calculation from the Federal Reserve Board
33 under the terms of information sharing agreements in effect.
34 If the Federal Reserve Board cannot share the calculation
35 with the lead state commissioner, the insurance holding
36 company system is not exempt from the group capital
37 calculation filing.
38 (3) An insurance holding company system whose non-United
39 States group wide supervisor is located within a Reciprocal
40 Jurisdiction as described in IC 27-6-10.1 that recognizes the
41 United States state regulatory approach to group supervision
42 and group capital.
EH 1332—LS 6979/DI 55 17
1 (4) An insurance holding company system:
2 (A) that provides information to the lead state that meets
3 the requirements for accreditation under the NAIC
4 financial standards and accreditation program, either
5 directly or indirectly through the group wide supervisor,
6 who has determined such information is satisfactory to
7 allow the lead state to comply with the NAIC group
8 supervision approach, as detailed in the Financial Analysis
9 Handbook adopted by the NAIC; and
10 (B) whose non-United States group wide supervisor that is
11 not in a Reciprocal Jurisdiction recognizes and accepts, as
12 specified by the commissioner in regulation, the group
13 capital calculation as the world wide group capital
14 assessment for United States insurance groups that operate
15 in that jurisdiction.
16 (5) Notwithstanding the provisions of subdivisions (3) and (4),
17 a lead state commissioner shall require the group capital
18 calculation for United States operations of any non-United
19 States based insurance holding company system where, after
20 any necessary consultation with other supervisors or officials,
21 it is deemed appropriate by the lead state commissioner for
22 prudential oversight and solvency monitoring purposes or for
23 ensuring the competitiveness of the insurance marketplace.
24 (6) Notwithstanding the exemptions from filing the group
25 capital calculation stated in subdivisions (1) through (4), the
26 lead state commissioner has the discretion to exempt the
27 ultimate controlling person from filing the annual group
28 capital calculation or to accept a limited group capital filing
29 or report in accordance with criteria as specified by the
30 commissioner in regulation.
31 (7) If the lead state commissioner determines that an
32 insurance holding company system no longer meets one (1) or
33 more of the requirements for an exemption from filing the
34 group capital calculation under this section, the insurance
35 holding company system shall file the group capital
36 calculation at the next annual filing date unless given an
37 extension by the lead state commissioner based on reasonable
38 grounds shown.
39 (n) This subsection is effective beginning January 1, 2026. The
40 ultimate controlling person of every insurer that is subject to
41 registration and is also scoped into the NAIC Liquidity Stress Test
42 Framework shall file the results of a specific year's Liquidity Stress
EH 1332—LS 6979/DI 55 18
1 Test. The filing shall be made to the lead state commissioner of the
2 insurance holding company system as determined by the
3 procedures within the Financial Analysis Handbook adopted by the
4 NAIC, subject to the following:
5 (1) The NAIC Liquidity Stress Test Framework includes
6 Scope Criteria applicable to a specific data year. These Scope
7 Criteria are reviewed at least annually by the NAIC Financial
8 Stability Task Force or its successor. Any change to the NAIC
9 Liquidity Stress Test Framework or to the data year for
10 which the Scope Criteria are to be measured shall be effective
11 on January 1 of the year following the calendar year when
12 such changes are adopted. Insurers meeting at least one (1)
13 threshold of the Scope Criteria are considered scoped into the
14 NAIC Liquidity Stress Test Framework for the specified data
15 year unless the lead state commissioner, in consultation with
16 the NAIC Financial Stability Task Force or its successor,
17 determines that the insurer should not be scoped into the
18 NAIC Liquidity Stress Test Framework for that data year.
19 Similarly, insurers that do not trigger at least one (1)
20 threshold of the Scope Criteria are considered scoped out of
21 the NAIC Liquidity Stress Test Framework for the specified
22 data year unless the lead state commissioner, in consultation
23 with the NAIC Financial Stability Task Force or its successor,
24 determines that the insurer should be scoped into the NAIC
25 Liquidity Stress Test Framework for that data year.
26 (2) The performance of, and the filing of the results from, a
27 specific year's Liquidity Stress Test shall comply with the
28 NAIC Liquidity Stress Test Framework's instructions and
29 reporting templates for that year and any lead state
30 commissioner determinations, in consultation with the NAIC
31 Financial Stability Task Force or its successor, that are
32 provided within the NAIC Liquidity Stress Test Framework.
33 (m) (o) The commissioner may impose on a person a civil penalty
34 of one hundred dollars ($100) per day that the person fails to file,
35 within the period specified, a:
36 (1) registration statement; or
37 (2) summary of a registration statement or enterprise risk filing;
38 required by this section. The commissioner shall deposit a civil penalty
39 collected under this subsection in the department of insurance fund
40 established by IC 27-1-3-28.
41 SECTION 8. IC 27-1-24.5-20, AS ADDED BY P.L.68-2020,
42 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
EH 1332—LS 6979/DI 55 19
1 JULY 1, 2024]: Sec. 20. (a) The commissioner shall do the following:
2 (1) Prescribe an application for use in applying for a license to
3 operate as a pharmacy benefit manager.
4 (2) Adopt rules under IC 4-22-2 to establish the following:
5 (A) Pharmacy benefit manager licensing requirements.
6 (B) Licensing fees.
7 (C) A license application.
8 (D) Financial standards for pharmacy benefit managers.
9 (E) Reporting requirements described in section sections 21
10 and 29 of this chapter.
11 (F) The time frame for the resolution of an appeal under
12 section 22 of this chapter.
13 (b) The commissioner may do the following:
14 (1) Charge a license application fee and renewal fees established
15 under subsection (a)(2) in an amount not to exceed five hundred
16 dollars ($500) to be deposited in the department of insurance fund
17 established by IC 27-1-3-28.
18 (2) Examine or audit the books and records of a pharmacy benefit
19 manager one (1) time per year to determine if the pharmacy
20 benefit manager is in compliance with this chapter.
21 (3) Adopt rules under IC 4-22-2 to:
22 (A) implement this chapter; and
23 (B) specify requirements for the following:
24 (i) Prohibited market conduct practices.
25 (ii) Data reporting in connection with violations of state law.
26 (iii) Maximum allowable cost list compliance and
27 enforcement requirements, including the requirements of
28 sections 22 and 23 of this chapter.
29 (iv) Prohibitions and limits on pharmacy benefit manager
30 practices that require licensure under IC 25-22.5.
31 (v) Pharmacy benefit manager affiliate information sharing.
32 (vi) Lists of health plans administered by a pharmacy benefit
33 manager in Indiana.
34 (c) Financial information and proprietary information submitted by
35 a pharmacy benefit manager to the department is confidential.
36 SECTION 9. IC 27-1-25-11.1, AS AMENDED BY P.L.124-2018,
37 SECTION 48, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2024]: Sec. 11.1. (a) If the home state of a person is Indiana,
39 the person shall:
40 (1) apply to act as an administrator in Indiana upon the uniform
41 application for third party administrator license;
42 (2) pay an application fee in an amount determined by the
EH 1332—LS 6979/DI 55 20
1 commissioner; and
2 (3) receive a license from the commissioner;
3 before performing the function of an administrator in Indiana. The
4 commissioner shall deposit a fee paid under subdivision (2) into the
5 department of insurance fund established by IC 27-1-3-28.
6 (b) For the purposes of this section:
7 (1) if:
8 (A) an administrator is incorporated in Indiana; or
9 (B) Indiana is the administrator's principal place of
10 business within the United States;
11 the administrator shall apply to Indiana for a resident
12 administrator license; and
13 (2) if:
14 (A) neither the state in which an administrator is
15 incorporated nor the state that is the administrator's
16 principal place of business have adopted this chapter or a
17 substantially similar law governing administrators; and
18 (B) the administrator has not designated any other state
19 that has adopted this chapter or a substantially similar law
20 governing administrators as its home state;
21 the administrator shall apply to Indiana for licensure as its
22 designated home state.
23 (b) (c) The uniform application for third party administrator license
24 must include or be accompanied by the following:
25 (1) Basic organizational documents of the applicant, including:
26 (A) articles of incorporation;
27 (B) articles of association;
28 (C) partnership agreement;
29 (D) trade name certificate;
30 (E) trust agreement;
31 (F) shareholder agreement;
32 (G) other applicable documents; and
33 (H) amendments to the documents specified in clauses (A)
34 through (G).
35 (2) Bylaws, rules, regulations, or other documents that regulate
36 the internal affairs of the applicant.
37 (3) The NAIC biographical affidavits for individuals who are
38 responsible for the conduct of affairs of the applicant, including:
39 (A) members of the applicant's:
40 (i) board of directors;
41 (ii) board of trustees;
42 (iii) executive committee; or
EH 1332—LS 6979/DI 55 21
1 (iv) other governing board or committee;
2 (B) principal officers, if the applicant is a corporation;
3 (C) partners or members, if the applicant is:
4 (i) a partnership;
5 (ii) an association; or
6 (iii) a limited liability company;
7 (D) shareholders or members that hold, directly or indirectly,
8 at least ten percent (10%) of the:
9 (i) voting stock;
10 (ii) voting securities; or
11 (iii) voting interest;
12 of the applicant; and
13 (E) any other person who exercises control or influence over
14 the affairs of the applicant.
15 (4) Financial information reflecting a positive net worth,
16 including:
17 (A) audited annual financial statements prepared by an
18 independent certified public accountant for the two (2) most
19 recent fiscal years; or
20 (B) if the applicant has been in business for less than two (2)
21 fiscal years, financial statements or reports that are:
22 (i) prepared in accordance with GAAP; and
23 (ii) certified by an officer of the applicant;
24 for any completed fiscal years and for any month during the
25 current fiscal year for which financial statements or reports
26 have been completed.
27 If an audited financial statement or report required under clause
28 (A) or (B) is prepared on a consolidated basis, the statement or
29 report must include a columnar consolidating or combining
30 worksheet that includes the amounts shown on the consolidated
31 audited financial statement or report, separately reported on the
32 worksheet for each entity included on the statement or report, and
33 an explanation of consolidating and eliminating entries.
34 (5) Information determined by the commissioner to be necessary
35 for a review of the current financial condition of the applicant.
36 (6) A description of the business plan of the applicant, including:
37 (A) information on staffing levels and activities proposed in
38 Indiana and nationwide; and
39 (B) details concerning the applicant's ability to provide a
40 sufficient number of experienced and qualified personnel for:
41 (i) claims processing;
42 (ii) record keeping; and
EH 1332—LS 6979/DI 55 22
1 (iii) underwriting.
2 (7) Any other information required by the commissioner.
3 (c) (d) An administrator that applies for licensure under this section
4 shall make copies of written agreements with insurers available for
5 inspection by the commissioner.
6 (d) (e) An administrator that applies for licensure under this section
7 shall:
8 (1) produce the administrator's accounts, records, and files for
9 examination; and
10 (2) make the administrator's officers available to provide
11 information concerning the affairs of the administrator;
12 whenever reasonably required by the commissioner.
13 (e) (f) The commissioner may refuse to issue a license under this
14 section if the commissioner determines that:
15 (1) the administrator or an individual who is responsible for the
16 conduct of the affairs of the administrator:
17 (A) is not:
18 (i) competent;
19 (ii) trustworthy;
20 (iii) financially responsible; or
21 (iv) of good personal and business reputation; or
22 (B) has had an:
23 (i) insurance certificate of authority or insurance license; or
24 (ii) administrator certificate of authority or administrator
25 license;
26 denied or revoked for cause by any jurisdiction;
27 (2) the financial information provided under subsection (b)(4)
28 (c)(4) does not reflect that the applicant has a positive net worth;
29 or
30 (3) any of the grounds set forth in section 12.4 of this chapter
31 exists with respect to the administrator.
32 (f) (g) An administrator that applies for a license under this section
33 shall immediately notify the commissioner of a material change in:
34 (1) the ownership or control of the administrator; or
35 (2) another fact or circumstance that affects the administrator's
36 qualification for a license.
37 The commissioner, upon receiving notice under this subsection, shall
38 report the change to the centralized insurance producer license registry
39 described in IC 27-1-15.6-7.
40 (g) (h) An administrator that applies for a license under this section
41 and will administer a governmental plan or a church plan shall obtain
42 a bond as required under section 4(g) of this chapter.
EH 1332—LS 6979/DI 55 23
1 (h) (i) A license that is issued under this section is valid:
2 (1) for one (1) year after the date of issuance, unless subdivision
3 (2) applies; or
4 (2) until:
5 (A) the license is:
6 (i) surrendered; or
7 (ii) suspended or revoked by the commissioner; or
8 (B) the administrator:
9 (i) ceases to do business in Indiana; or
10 (ii) is not in compliance with this chapter.
11 SECTION 10. IC 27-1-25-12.3, AS AMENDED BY P.L.124-2018,
12 SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2024]: Sec. 12.3. (a) An administrator that is licensed under
14 section 11.1 of this chapter shall, not later than July 1 of each year
15 unless the commissioner grants an extension of time for good cause,
16 file a report for the previous calendar year that complies with the
17 following:
18 (1) The report must contain financial information reflecting a
19 positive net worth prepared in accordance with section 11.1(b)(4)
20 11.1(c)(4) of this chapter.
21 (2) The report must be in the form and contain matters prescribed
22 by the commissioner.
23 (3) The report must be verified by at least two (2) officers of the
24 administrator.
25 (4) The report must include the complete names and addresses of
26 insurers with which the administrator had a written agreement
27 during the preceding fiscal year.
28 (5) The report must be accompanied by a filing fee in an amount
29 determined by the commissioner.
30 The commissioner shall collect a filing fee paid under subdivision (5)
31 and deposit the fee into the department of insurance fund established
32 by IC 27-1-3-28.
33 (b) The commissioner shall review a report filed under subsection
34 (a) not later than September 1 of the year in which the report is filed.
35 Upon completion of the review, the commissioner shall:
36 (1) issue a certification to the administrator:
37 (A) indicating that:
38 (i) the financial statement reflects a positive net worth; and
39 (ii) the administrator is currently licensed and in good
40 standing; or
41 (B) noting deficiencies found in the report; or
42 (2) update the centralized insurance producer license registry
EH 1332—LS 6979/DI 55 24
1 described in IC 27-1-15.6-7:
2 (A) indicating that the administrator is solvent and in
3 compliance with this chapter; or
4 (B) noting deficiencies found in the report.
5 SECTION 11. IC 27-1-49-9, AS ADDED BY P.L.166-2023,
6 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2024]: Sec. 9. (a) The department may enforce the
8 requirements of this chapter to the extent permissible under applicable
9 law.
10 (b) A violation of this chapter is an unfair or deceptive act or
11 practice in the business of insurance under IC 27-4-1-4.
12 (c) The department may adopt rules under IC 4-22-2 to set forth
13 fines for violations of this chapter.
14 SECTION 12. IC 27-1-50-9, AS ADDED BY P.L.166-2023,
15 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2024]: Sec. 9. (a) At the time of contracting, an insurer shall
17 provide only offer to plan sponsors the option of following plans:
18 (1) A plan that applies one hundred percent (100%) of the
19 rebates to reduce premiums for all covered individuals
20 equally.
21 (2) A plan calculating that calculates defined cost sharing for
22 covered individuals of the plan sponsor at the point of sale based
23 on a price that is reduced by some or an amount equal to at least
24 eighty-five percent (85%) of all of the rebates received or
25 estimated to be received by the insurer concerning the dispensing
26 or administration of the prescription drug.
27 (b) A plan sponsor may choose one (1) of the plans offered
28 under subsection (a).
29 SECTION 13. IC 27-1-50-11, AS ADDED BY P.L.166-2023,
30 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2024]: Sec. 11. An insurer shall disclose the following
32 information to a plan sponsor on at least an annual basis:
33 (1) The approximate amount of rebates expected to be received by
34 the insurer concerning the dispensing or administration of
35 prescription drugs to the covered individuals of the plan sponsor.
36 (2) An explanation that the plan sponsor may choose to:
37 (A) apply the rebates to reduce premiums for all covered
38 individuals; or
39 (B) calculate defined cost sharing for a covered individual at
40 the point of sale based on a price that is reduced by an
41 amount equal to at least eighty-five percent (85%) of all
42 rebates received or estimated to be received by the insurer
EH 1332—LS 6979/DI 55 25
1 concerning the dispensing or administration of the covered
2 individual's prescription drugs.
3 (3) An explanation that, in the individual market, IC 27-1-49
4 requires that covered individual defined cost sharing be calculated
5 at the point of sale based on a price that is reduced by at least
6 eighty-five percent (85%) of the rebates concerning the
7 dispensing or administration of the covered individual's
8 prescription drugs.
9 SECTION 14. IC 27-1-50-12, AS ADDED BY P.L.166-2023,
10 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2024]: Sec. 12. (a) The department may enforce the
12 requirements of this chapter to the extent permissible under applicable
13 law.
14 (b) A violation of this chapter is an unfair or deceptive act or
15 practice in the business of insurance under IC 27-4-1-4.
16 (c) The department may adopt rules under IC 4-22-2 that:
17 (1) provide for the enforcement of this chapter; and
18 (2) set forth fines for violations of this chapter.
19 SECTION 15. IC 27-2-28-1, AS ADDED BY P.L.226-2023,
20 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JUNE 30, 2024]: Sec. 1. (a) This chapter applies to a personal
22 automobile or homeowner's policy that is issued, delivered, amended,
23 or renewed after June 30, 2024. 2025.
24 (b) This chapter does not apply to notices required by the federal
25 Fair Credit Reporting Act (15 U.S.C. 1681 et seq.).
26 SECTION 16. IC 27-4-1-4, AS AMENDED BY P.L.56-2023,
27 SECTION 244, IS AMENDED TO READ AS FOLLOWS
28 [EFFECTIVE JULY 1, 2024]: Sec. 4. (a) The following are hereby
29 defined as unfair methods of competition and unfair and deceptive acts
30 and practices in the business of insurance:
31 (1) Making, issuing, circulating, or causing to be made, issued, or
32 circulated, any estimate, illustration, circular, or statement:
33 (A) misrepresenting the terms of any policy issued or to be
34 issued or the benefits or advantages promised thereby or the
35 dividends or share of the surplus to be received thereon;
36 (B) making any false or misleading statement as to the
37 dividends or share of surplus previously paid on similar
38 policies;
39 (C) making any misleading representation or any
40 misrepresentation as to the financial condition of any insurer,
41 or as to the legal reserve system upon which any life insurer
42 operates;
EH 1332—LS 6979/DI 55 26
1 (D) using any name or title of any policy or class of policies
2 misrepresenting the true nature thereof; or
3 (E) making any misrepresentation to any policyholder insured
4 in any company for the purpose of inducing or tending to
5 induce such policyholder to lapse, forfeit, or surrender the
6 policyholder's insurance.
7 (2) Making, publishing, disseminating, circulating, or placing
8 before the public, or causing, directly or indirectly, to be made,
9 published, disseminated, circulated, or placed before the public,
10 in a newspaper, magazine, or other publication, or in the form of
11 a notice, circular, pamphlet, letter, or poster, or over any radio or
12 television station, or in any other way, an advertisement,
13 announcement, or statement containing any assertion,
14 representation, or statement with respect to any person in the
15 conduct of the person's insurance business, which is untrue,
16 deceptive, or misleading.
17 (3) Making, publishing, disseminating, or circulating, directly or
18 indirectly, or aiding, abetting, or encouraging the making,
19 publishing, disseminating, or circulating of any oral or written
20 statement or any pamphlet, circular, article, or literature which is
21 false, or maliciously critical of or derogatory to the financial
22 condition of an insurer, and which is calculated to injure any
23 person engaged in the business of insurance.
24 (4) Entering into any agreement to commit, or individually or by
25 a concerted action committing any act of boycott, coercion, or
26 intimidation resulting or tending to result in unreasonable
27 restraint of, or a monopoly in, the business of insurance.
28 (5) Filing with any supervisory or other public official, or making,
29 publishing, disseminating, circulating, or delivering to any person,
30 or placing before the public, or causing directly or indirectly, to
31 be made, published, disseminated, circulated, delivered to any
32 person, or placed before the public, any false statement of
33 financial condition of an insurer with intent to deceive. Making
34 any false entry in any book, report, or statement of any insurer
35 with intent to deceive any agent or examiner lawfully appointed
36 to examine into its condition or into any of its affairs, or any
37 public official to which such insurer is required by law to report,
38 or which has authority by law to examine into its condition or into
39 any of its affairs, or, with like intent, willfully omitting to make a
40 true entry of any material fact pertaining to the business of such
41 insurer in any book, report, or statement of such insurer.
42 (6) Issuing or delivering or permitting agents, officers, or
EH 1332—LS 6979/DI 55 27
1 employees to issue or deliver, agency company stock or other
2 capital stock, or benefit certificates or shares in any common law
3 corporation, or securities or any special or advisory board
4 contracts or other contracts of any kind promising returns and
5 profits as an inducement to insurance.
6 (7) Making or permitting any of the following:
7 (A) Unfair discrimination between individuals of the same
8 class and equal expectation of life in the rates or assessments
9 charged for any contract of life insurance or of life annuity or
10 in the dividends or other benefits payable thereon, or in any
11 other of the terms and conditions of such contract. However,
12 in determining the class, consideration may be given to the
13 nature of the risk, plan of insurance, the actual or expected
14 expense of conducting the business, or any other relevant
15 factor.
16 (B) Unfair discrimination between individuals of the same
17 class involving essentially the same hazards in the amount of
18 premium, policy fees, assessments, or rates charged or made
19 for any policy or contract of accident or health insurance or in
20 the benefits payable thereunder, or in any of the terms or
21 conditions of such contract, or in any other manner whatever.
22 However, in determining the class, consideration may be given
23 to the nature of the risk, the plan of insurance, the actual or
24 expected expense of conducting the business, or any other
25 relevant factor.
26 (C) Excessive or inadequate charges for premiums, policy
27 fees, assessments, or rates, or making or permitting any unfair
28 discrimination between persons of the same class involving
29 essentially the same hazards, in the amount of premiums,
30 policy fees, assessments, or rates charged or made for:
31 (i) policies or contracts of reinsurance or joint reinsurance,
32 or abstract and title insurance;
33 (ii) policies or contracts of insurance against loss or damage
34 to aircraft, or against liability arising out of the ownership,
35 maintenance, or use of any aircraft, or of vessels or craft,
36 their cargoes, marine builders' risks, marine protection and
37 indemnity, or other risks commonly insured under marine,
38 as distinguished from inland marine, insurance; or
39 (iii) policies or contracts of any other kind or kinds of
40 insurance whatsoever.
41 However, nothing contained in clause (C) shall be construed to
42 apply to any of the kinds of insurance referred to in clauses (A)
EH 1332—LS 6979/DI 55 28
1 and (B) nor to reinsurance in relation to such kinds of insurance.
2 Nothing in clause (A), (B), or (C) shall be construed as making or
3 permitting any excessive, inadequate, or unfairly discriminatory
4 charge or rate or any charge or rate determined by the department
5 or commissioner to meet the requirements of any other insurance
6 rate regulatory law of this state.
7 (8) Except as otherwise expressly provided by IC 27-1-47 or
8 another law, knowingly permitting or offering to make or making
9 any contract or policy of insurance of any kind or kinds
10 whatsoever, including but not in limitation, life annuities, or
11 agreement as to such contract or policy other than as plainly
12 expressed in such contract or policy issued thereon, or paying or
13 allowing, or giving or offering to pay, allow, or give, directly or
14 indirectly, as inducement to such insurance, or annuity, any rebate
15 of premiums payable on the contract, or any special favor or
16 advantage in the dividends, savings, or other benefits thereon, or
17 any valuable consideration or inducement whatever not specified
18 in the contract or policy; or giving, or selling, or purchasing or
19 offering to give, sell, or purchase as inducement to such insurance
20 or annuity or in connection therewith, any stocks, bonds, or other
21 securities of any insurance company or other corporation,
22 association, limited liability company, or partnership, or any
23 dividends, savings, or profits accrued thereon, or anything of
24 value whatsoever not specified in the contract. Nothing in this
25 subdivision and subdivision (7) shall be construed as including
26 within the definition of discrimination or rebates any of the
27 following practices:
28 (A) Paying bonuses to policyholders or otherwise abating their
29 premiums in whole or in part out of surplus accumulated from
30 nonparticipating insurance, so long as any such bonuses or
31 abatement of premiums are fair and equitable to policyholders
32 and for the best interests of the company and its policyholders.
33 (B) In the case of life insurance policies issued on the
34 industrial debit plan, making allowance to policyholders who
35 have continuously for a specified period made premium
36 payments directly to an office of the insurer in an amount
37 which fairly represents the saving in collection expense.
38 (C) Readjustment of the rate of premium for a group insurance
39 policy based on the loss or expense experience thereunder, at
40 the end of the first year or of any subsequent year of insurance
41 thereunder, which may be made retroactive only for such
42 policy year.
EH 1332—LS 6979/DI 55 29
1 (D) Paying by an insurer or insurance producer thereof duly
2 licensed as such under the laws of this state of money,
3 commission, or brokerage, or giving or allowing by an insurer
4 or such licensed insurance producer thereof anything of value,
5 for or on account of the solicitation or negotiation of policies
6 or other contracts of any kind or kinds, to a broker, an
7 insurance producer, or a solicitor duly licensed under the laws
8 of this state, but such broker, insurance producer, or solicitor
9 receiving such consideration shall not pay, give, or allow
10 credit for such consideration as received in whole or in part,
11 directly or indirectly, to the insured by way of rebate.
12 (9) Requiring, as a condition precedent to loaning money upon the
13 security of a mortgage upon real property, that the owner of the
14 property to whom the money is to be loaned negotiate any policy
15 of insurance covering such real property through a particular
16 insurance producer or broker or brokers. However, this
17 subdivision shall not prevent the exercise by any lender of the
18 lender's right to approve or disapprove of the insurance company
19 selected by the borrower to underwrite the insurance.
20 (10) Entering into any contract, combination in the form of a trust
21 or otherwise, or conspiracy in restraint of commerce in the
22 business of insurance.
23 (11) Monopolizing or attempting to monopolize or combining or
24 conspiring with any other person or persons to monopolize any
25 part of commerce in the business of insurance. However,
26 participation as a member, director, or officer in the activities of
27 any nonprofit organization of insurance producers or other
28 workers in the insurance business shall not be interpreted, in
29 itself, to constitute a combination in restraint of trade or as
30 combining to create a monopoly as provided in this subdivision
31 and subdivision (10). The enumeration in this chapter of specific
32 unfair methods of competition and unfair or deceptive acts and
33 practices in the business of insurance is not exclusive or
34 restrictive or intended to limit the powers of the commissioner or
35 department or of any court of review under section 8 of this
36 chapter.
37 (12) Requiring as a condition precedent to the sale of real or
38 personal property under any contract of sale, conditional sales
39 contract, or other similar instrument or upon the security of a
40 chattel mortgage, that the buyer of such property negotiate any
41 policy of insurance covering such property through a particular
42 insurance company, insurance producer, or broker or brokers.
EH 1332—LS 6979/DI 55 30
1 However, this subdivision shall not prevent the exercise by any
2 seller of such property or the one making a loan thereon of the
3 right to approve or disapprove of the insurance company selected
4 by the buyer to underwrite the insurance.
5 (13) Issuing, offering, or participating in a plan to issue or offer,
6 any policy or certificate of insurance of any kind or character as
7 an inducement to the purchase of any property, real, personal, or
8 mixed, or services of any kind, where a charge to the insured is
9 not made for and on account of such policy or certificate of
10 insurance. However, this subdivision shall not apply to any of the
11 following:
12 (A) Insurance issued to credit unions or members of credit
13 unions in connection with the purchase of shares in such credit
14 unions.
15 (B) Insurance employed as a means of guaranteeing the
16 performance of goods and designed to benefit the purchasers
17 or users of such goods.
18 (C) Title insurance.
19 (D) Insurance written in connection with an indebtedness and
20 intended as a means of repaying such indebtedness in the
21 event of the death or disability of the insured.
22 (E) Insurance provided by or through motorists service clubs
23 or associations.
24 (F) Insurance that is provided to the purchaser or holder of an
25 air transportation ticket and that:
26 (i) insures against death or nonfatal injury that occurs during
27 the flight to which the ticket relates;
28 (ii) insures against personal injury or property damage that
29 occurs during travel to or from the airport in a common
30 carrier immediately before or after the flight;
31 (iii) insures against baggage loss during the flight to which
32 the ticket relates; or
33 (iv) insures against a flight cancellation to which the ticket
34 relates.
35 (14) Refusing, because of the for-profit status of a hospital or
36 medical facility, to make payments otherwise required to be made
37 under a contract or policy of insurance for charges incurred by an
38 insured in such a for-profit hospital or other for-profit medical
39 facility licensed by the Indiana department of health.
40 (15) Refusing to insure an individual, refusing to continue to issue
41 insurance to an individual, limiting the amount, extent, or kind of
42 coverage available to an individual, or charging an individual a
EH 1332—LS 6979/DI 55 31
1 different rate for the same coverage, solely because of that
2 individual's blindness or partial blindness, except where the
3 refusal, limitation, or rate differential is based on sound actuarial
4 principles or is related to actual or reasonably anticipated
5 experience.
6 (16) Committing or performing, with such frequency as to
7 indicate a general practice, unfair claim settlement practices (as
8 defined in section 4.5 of this chapter).
9 (17) Between policy renewal dates, unilaterally canceling an
10 individual's coverage under an individual or group health
11 insurance policy solely because of the individual's medical or
12 physical condition.
13 (18) Using a policy form or rider that would permit a cancellation
14 of coverage as described in subdivision (17).
15 (19) Violating IC 27-1-22-25, IC 27-1-22-26, or IC 27-1-22-26.1
16 concerning motor vehicle insurance rates.
17 (20) Violating IC 27-8-21-2 concerning advertisements referring
18 to interest rate guarantees.
19 (21) Violating IC 27-8-24.3 concerning insurance and health plan
20 coverage for victims of abuse.
21 (22) Violating IC 27-8-26 concerning genetic screening or testing.
22 (23) Violating IC 27-1-15.6-3(b) concerning licensure of
23 insurance producers.
24 (24) Violating IC 27-1-38 concerning depository institutions.
25 (25) Violating IC 27-8-28-17(c) or IC 27-13-10-8(c) concerning
26 the resolution of an appealed grievance decision.
27 (26) Violating IC 27-8-5-2.5(e) through IC 27-8-5-2.5(j) (expired
28 July 1, 2007, and removed) or IC 27-8-5-19.2 (expired July 1,
29 2007, and repealed).
30 (27) Violating IC 27-2-21 concerning use of credit information.
31 (28) Violating IC 27-4-9-3 concerning recommendations to
32 consumers.
33 (29) Engaging in dishonest or predatory insurance practices in
34 marketing or sales of insurance to members of the United States
35 Armed Forces as:
36 (A) described in the federal Military Personnel Financial
37 Services Protection Act, P.L.109-290; or
38 (B) defined in rules adopted under subsection (b).
39 (30) Violating IC 27-8-19.8-20.1 concerning stranger originated
40 life insurance.
41 (31) Violating IC 27-2-22 concerning retained asset accounts.
42 (32) Violating IC 27-8-5-29 concerning health plans offered
EH 1332—LS 6979/DI 55 32
1 through a health benefit exchange (as defined in IC 27-19-2-8).
2 (33) Violating a requirement of the federal Patient Protection and
3 Affordable Care Act (P.L. 111-148), as amended by the federal
4 Health Care and Education Reconciliation Act of 2010 (P.L.
5 111-152), that is enforceable by the state.
6 (34) After June 30, 2015, violating IC 27-2-23 concerning
7 unclaimed life insurance, annuity, or retained asset account
8 benefits.
9 (35) Willfully violating IC 27-1-12-46 concerning a life insurance
10 policy or certificate described in IC 27-1-12-46(a).
11 (36) Violating IC 27-1-37-7 concerning prohibiting the disclosure
12 of health care service claims data.
13 (37) Violating IC 27-4-10-10 concerning virtual claims payments.
14 (38) Violating IC 27-1-24.5 concerning pharmacy benefit
15 managers.
16 (39) Violating IC 27-7-17-16 or IC 27-7-17-17 concerning the
17 marketing of travel insurance policies.
18 (40) Violating IC 27-1-49 concerning individual prescription
19 drug rebates.
20 (41) Violating IC 27-1-50 concerning group prescription drug
21 rebates.
22 (b) Except with respect to federal insurance programs under
23 Subchapter III of Chapter 19 of Title 38 of the United States Code, the
24 commissioner may, consistent with the federal Military Personnel
25 Financial Services Protection Act (10 U.S.C. 992 note), adopt rules
26 under IC 4-22-2 to:
27 (1) define; and
28 (2) while the members are on a United States military installation
29 or elsewhere in Indiana, protect members of the United States
30 Armed Forces from;
31 dishonest or predatory insurance practices.
32 SECTION 17. IC 27-6-8-4, AS AMENDED BY P.L.52-2013,
33 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2024]: Sec. 4. (a) As used in this chapter, unless otherwise
35 provided:
36 (1) The term "account" means any one (1) of the three (3)
37 accounts created by section 5 of this chapter.
38 (2) The term "association" means the Indiana Insurance Guaranty
39 Association created by section 5 of this chapter.
40 (3) The term "commissioner" means the commissioner of
41 insurance of this state.
42 (4) The term "covered claim" means an unpaid claim which arises
EH 1332—LS 6979/DI 55 33
1 out of and is within the coverage and not in excess of the
2 applicable limits of an insurance policy to which this chapter
3 applies issued by an insurer, if the insurer becomes an insolvent
4 insurer after the effective date (January 1, 1972) of this chapter
5 and (a) the claimant or insured is a resident of this state at the
6 time of the insured event or (b) the property from which the claim
7 arises is permanently located in this state. "Covered claim" shall
8 be limited as provided in section 7 of this chapter, and shall not
9 include the following:
10 (A) Any amount due any reinsurer, insurer, insurance pool, or
11 underwriting association, as subrogation recoveries or
12 otherwise. However, a claim for any such amount, asserted
13 against a person insured under a policy issued by an insurer
14 which has become an insolvent insurer, which if it were not a
15 claim by or for the benefit of a reinsurer, insurer, insurance
16 pool or underwriting association, would be a "covered claim"
17 may be filed directly with the receiver or liquidator of the
18 insolvent insurer, but in no event may any such claim be
19 asserted in any legal action against the insured of such
20 insolvent insurer.
21 (B) Any supplementary obligation including but not limited to
22 adjustment fees and expenses, attorney fees and expenses,
23 court costs, interest and bond premiums, whether arising as a
24 policy benefit or otherwise, prior to the appointment of a
25 liquidator.
26 (C) Any unpaid claim that is filed with the association after the
27 final date set by the court for the filing of claims against the
28 liquidator or receiver of an insolvent insurer. For the purpose
29 of filing a claim under this clause, notice of a claim to the
30 liquidator of the insolvent insurer is considered to be notice to
31 the association or the agent of the association and a list of
32 claims must be periodically submitted to the association (or
33 another state's association that is similar to the association) by
34 the liquidator.
35 (D) A claim that is excluded under section 11.5 of this chapter
36 due to the high net worth of an insured.
37 (E) Any claim by a person who directly or indirectly controls,
38 is controlled, or is under common control with an insolvent
39 insurer on December 31 of the year before the order of
40 liquidation.
41 All covered claims filed in the liquidation proceedings shall be
42 referred immediately to the association by the liquidator for
EH 1332—LS 6979/DI 55 34
1 processing as provided in this chapter.
2 (5) The term "high net worth insured" means the following:
3 (A) For purposes of section 11.5(a) of this chapter, an insured
4 that has a net worth (including the aggregate net worth of the
5 insured and all subsidiaries and affiliates of the insured,
6 calculated on a consolidated basis) that exceeds twenty-five
7 million dollars ($25,000,000) on December 31 of the year
8 immediately preceding the year in which the insurer becomes
9 an insolvent insurer.
10 (B) For purposes of section 11.5(b) of this chapter, an insured
11 that has a net worth (including the aggregate net worth of the
12 insured and all subsidiaries and affiliates of the insured,
13 calculated on a consolidated basis) that exceeds fifty million
14 dollars ($50,000,000) on December 31 of the year immediately
15 preceding the year in which the insurer becomes an insolvent
16 insurer.
17 (6) The term "insolvent insurer" means (a) a member insurer
18 holding a valid certificate of authority to transact insurance in this
19 state either at the time the policy was issued or when the insured
20 event occurred and (b) against whom a final order of liquidation,
21 with a finding of insolvency, to which there is no further right of
22 appeal, has been entered by a court of competent jurisdiction in
23 the company's state of domicile. "Insolvent insurer" shall not be
24 construed to mean an insurer with respect to which an order,
25 decree, judgment or finding of insolvency whether preliminary or
26 temporary in nature or order to rehabilitation or conservation has
27 been issued by any court of competent jurisdiction prior to
28 January 1, 1972 or which is adjudicated to have been insolvent
29 prior to that date.
30 (7) The term "member insurer" means any person who is licensed
31 or holds a certificate of authority under IC 27-1-6-18 or
32 IC 27-1-17-1 to transact in Indiana any kind of insurance for
33 which coverage is provided under section 3 of this chapter,
34 including the exchange of reciprocal or inter-insurance contracts.
35 The term includes any insurer whose license or certificate of
36 authority to transact such insurance in Indiana may have been
37 suspended, revoked, not renewed, or voluntarily surrendered. A
38 "member insurer" does not include farm mutual insurance
39 companies organized and operating pursuant to IC 27-5.1 other
40 than a company to which IC 27-5.1-2-6 applies.
41 (8) The term "net direct written premiums" means direct gross
42 premiums written in this state on insurance policies to which this
EH 1332—LS 6979/DI 55 35
1 chapter applies, less return premiums thereon and dividends paid
2 or credited to policyholders on such direct business. "Net direct
3 premiums written" does not include premiums on contracts
4 between insurers or reinsurers.
5 (9) The term "person" means an individual, an aggregation of
6 individuals, a corporation, a partnership, or another entity.
7 (b) Notwithstanding any other provision in this chapter, an
8 insurance policy that is issued by a member insurer and later
9 allocated, transferred, assumed by, or otherwise made the sole
10 responsibility of another insurer, pursuant to a state statute
11 providing for the division of an insurance company or the statutory
12 assumption or transfer of designated policies and under which
13 there is no remaining obligation to the transferring entity, shall be
14 considered to have been issued by a member insurer which is an
15 insolvent insurer for the purposes of this chapter in the event that
16 the insurer to which the policy has been allocated, transferred,
17 assumed by, or otherwise made the sole responsibility of is placed
18 in liquidation.
19 (c) An insurance policy that was issued by a nonmember insurer
20 and later allocated, transferred, assumed by, or otherwise made
21 the sole responsibility of a member insurer under a state statute
22 shall not be considered to have been issued by a member insurer
23 for the purposes of this chapter.
24 SECTION 18. IC 27-6-8-5, AS AMENDED BY P.L.52-2013,
25 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JULY 1, 2024]: Sec. 5. There is created a nonprofit unincorporated
27 legal entity to be known as the Indiana Insurance Guaranty Association
28 (referred to in this chapter as the "association"). All insurers defined as
29 member insurers in section 4(7) 4(a)(7) of this chapter shall be and
30 remain members of the association as a condition of their authority to
31 transact insurance in this state. The association shall perform its
32 functions under a plan of operation established and approved under
33 section 8 of this chapter and shall exercise its powers through a board
34 of directors established under section 6 of this chapter. For purposes of
35 administration and assessment, the association shall be divided into
36 three (3) separate accounts:
37 (1) The worker's compensation insurance account.
38 (2) The automobile insurance account.
39 (3) The account for all other insurance to which this chapter
40 applies.
41 SECTION 19. IC 27-6-8-11.5, AS ADDED BY P.L.52-2013,
42 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
EH 1332—LS 6979/DI 55 36
1 JULY 1, 2024]: Sec. 11.5. (a) The association is not obligated to pay
2 a first party claim by a high net worth insured described in section
3 4(5)(A) 4(a)(5)(A) of this chapter.
4 (b) The association has the right to recover from a high net worth
5 insured described in section 4(5)(B) 4(a)(5)(B) of this chapter all
6 amounts paid by the association to or on behalf of the high net worth
7 insured, regardless of whether the amounts were paid for indemnity,
8 defense, or otherwise.
9 (c) The association is not obligated to pay a claim that:
10 (1) would otherwise be a covered claim;
11 (2) is an obligation to or on behalf of a person who has a net
12 worth greater than the net worth allowed by the insurance
13 guaranty association law of the state of residence of the claimant
14 at the time specified by the applicable law of the state of
15 residence of the claimant; and
16 (3) has been denied by the association of the state of residence of
17 the claimant on the basis described in subdivision (2).
18 (d) The association shall establish reasonable procedures, subject to
19 the approval of the commissioner, for requesting financial information
20 from insureds:
21 (1) on a confidential basis; and
22 (2) in the application of this section.
23 (e) The procedures established under subsection (d) must provide
24 for sharing of the financial information obtained from insureds with:
25 (1) any other association that is similar to the association; and
26 (2) the liquidator for an insolvent insurer;
27 on the same confidential basis.
28 (f) If an insured refuses to provide financial information that is:
29 (1) requested under the procedures established under subsection
30 (d); and
31 (2) available;
32 the association may, until the time that the financial information is
33 provided to the association, consider the insured to be a high net worth
34 insured for purposes of subsections (a) and (b).
35 (g) In an action contesting the applicability of this section to an
36 insured that refuses to provide financial information under the
37 procedures established under subsection (d), the insured bears the
38 burden of proof concerning the insured's net worth at the relevant time.
39 If the insured fails to prove that the insured's net worth at the relevant
40 time was less than the applicable amount set forth in section 4(5)(A) or
41 4(5)(B) 4(a)(5)(A) or 4(a)(5)(B) of this chapter, the court shall award
42 to the association the association's full costs, expenses, and reasonable
EH 1332—LS 6979/DI 55 37
1 attorney's fees incurred in contesting the claim.
2 SECTION 20. IC 27-8-11-7, AS AMENDED BY P.L.190-2023,
3 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2024]: Sec. 7. (a) This section applies to an insurer that issues
5 or administers a policy that provides coverage for basic health care
6 services (as defined in IC 27-13-1-4).
7 (b) As used in this section, "clean credentialing application" means
8 an application for network participation that:
9 (1) is submitted by a provider under this section;
10 (2) does not contain an error; and
11 (3) may be processed by the insurer without returning the
12 application to the provider for a revision or clarification.
13 (c) As used in this section, "credentialing" means a process by
14 which an insurer makes a determination that:
15 (1) is based on criteria established by the insurer; and
16 (2) concerns whether a provider is eligible to:
17 (A) provide health services to an individual eligible for
18 coverage; and
19 (B) receive reimbursement for the health services;
20 under an agreement that is entered into between the provider and
21 the insurer.
22 (d) As used in this section, "unclean credentialing application"
23 means an application for network participation that:
24 (1) is submitted by a provider under this section;
25 (2) contains at least one (1) error; and
26 (3) must be returned to the provider to correct the error.
27 (e) The department of insurance shall prescribe the credentialing
28 application form used by the Council for Affordable Quality Healthcare
29 (CAQH) in electronic or paper format, which must be used by:
30 (1) a provider who applies for credentialing by an insurer; and
31 (2) an insurer that performs credentialing activities.
32 (f) An insurer shall notify a provider concerning a deficiency on a
33 completed unclean credentialing application form submitted by the
34 provider not later than five (5) business days after the entity receives
35 the completed unclean credentialing application form. A notice
36 described in this subsection must:
37 (1) provide a description of the deficiency; and
38 (2) state the reason why the application was determined to be an
39 unclean credentialing application.
40 (g) A provider shall respond to the notification required under
41 subsection (f) not later than five (5) business days after receipt of the
42 notice.
EH 1332—LS 6979/DI 55 38
1 (h) An insurer shall notify a provider concerning the status of the
2 provider's completed clean credentialing application when:
3 (1) the provider is provisionally credentialed; and
4 (2) the insurer makes a final credentialing determination
5 concerning the provider.
6 (i) If the insurer fails to issue a credentialing determination within
7 fifteen (15) business days after receiving a completed clean
8 credentialing application form from a provider, the insurer shall
9 provisionally credential the provider in accordance with the standards
10 and guidelines governing provisional credentialing from the National
11 Committee for Quality Assurance or its successor organization. The
12 provisional credentialing license is valid until a determination is made
13 on the credentialing application of the provider.
14 (j) Once an insurer fully credentials a provider that holds
15 provisional credentialing and a network provider agreement has been
16 executed, then reimbursement payments under the contract shall be
17 paid retroactive to the date the provider was provisionally credentialed.
18 The insurer shall reimburse the provider at the rates determined by the
19 contract between the provider and the insurer.
20 (k) If an insurer does not fully credential a provider that is
21 provisionally credentialed under subsection (i), the provisional
22 credentialing is terminated on the date the insurer notifies the provider
23 of the adverse credentialing determination. The insurer is not required
24 to reimburse for services rendered while the provider was provisionally
25 credentialed.
26 SECTION 21. IC 27-13-43-2, AS AMENDED BY P.L.190-2023,
27 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2024]: Sec. 2. (a) As used in this section, "clean credentialing
29 application" means an application for network participation that:
30 (1) is submitted by a provider under this section;
31 (2) does not contain an error; and
32 (3) may be processed by the health maintenance organization
33 without returning the application to the provider for a revision or
34 clarification.
35 (b) As used in this section, "credentialing" means a process by
36 which a health maintenance organization makes a determination that:
37 (1) is based on criteria established by the health maintenance
38 organization; and
39 (2) concerns whether a provider is eligible to:
40 (A) provide health services to an individual eligible for
41 coverage; and
42 (B) receive reimbursement for the health services;
EH 1332—LS 6979/DI 55 39
1 under an agreement that is entered into between the provider and
2 the health maintenance organization.
3 (c) As used in this section, "unclean credentialing application"
4 means an application for network participation that:
5 (1) is submitted by a provider under this section;
6 (2) contains at least one (1) error; and
7 (3) must be returned to the provider to correct the error.
8 (d) The department shall prescribe the credentialing application
9 form used by the Council for Affordable Quality Healthcare (CAQH)
10 in electronic or paper format. The form must be used by:
11 (1) a provider who applies for credentialing by a health
12 maintenance organization; and
13 (2) a health maintenance organization that performs credentialing
14 activities.
15 (e) A health maintenance organization shall notify a provider
16 concerning a deficiency on a completed unclean credentialing
17 application form submitted by the provider not later than five (5)
18 business days after the entity receives the completed unclean
19 credentialing application form. A notice described in this subsection
20 must:
21 (1) provide a description of the deficiency; and
22 (2) state the reason why the application was determined to be an
23 unclean credentialing application.
24 (f) A provider shall respond to the notification required under
25 subsection (e) not later than five (5) business days after receipt of the
26 notice.
27 (g) A health maintenance organization shall notify a provider
28 concerning the status of the provider's completed clean credentialing
29 application when:
30 (1) the provider is provisionally credentialed; and
31 (2) the health maintenance organization makes a final
32 credentialing determination concerning the provider.
33 (h) If the health maintenance organization fails to issue a
34 credentialing determination within fifteen (15) business days after
35 receiving a completed clean credentialing application form from a
36 provider, the health maintenance organization shall provisionally
37 credential the provider in accordance with the standards and guidelines
38 governing provisional credentialing from the National Committee for
39 Quality Assurance or its successor organization. The provisional
40 credentialing license is valid until a determination is made on the
41 credentialing application of the provider.
42 (i) Once a health maintenance organization fully credentials a
EH 1332—LS 6979/DI 55 40
1 provider that holds provisional credentialing and a network provider
2 agreement has been executed, then reimbursement payments under the
3 contract shall be paid retroactive to the date the provider was
4 provisionally credentialed. The health maintenance organization shall
5 reimburse the provider at the rates determined by the contract between
6 the provider and the health maintenance organization.
7 (j) If a health maintenance organization does not fully credential a
8 provider that is provisionally credentialed under subsection (h), the
9 provisional credentialing is terminated on the date the health
10 maintenance organization notifies the provider of the adverse
11 credentialing determination. The health maintenance organization is
12 not required to reimburse for services rendered while the provider was
13 provisionally credentialed.
14 SECTION 22. [EFFECTIVE JULY 1, 2024] (a) The definitions in
15 IC 27-2-29 apply to this SECTION.
16 (b) A Marketplace plan may request a temporary waiver in
17 writing from the department of insurance concerning compliance
18 with IC 27-1-49 and IC 27-1-50. The Marketplace plan must state
19 in the request the following:
20 (1) The reason why the Marketplace plan is unable to comply
21 with either or both of the following:
22 (A) IC 27-1-49.
23 (B) IC 27-1-50.
24 (2) Verification that the Marketplace plan will comply with
25 the statute or statutes for which the waiver is requested
26 beginning January 1, 2025.
27 (c) The department of insurance may approve a waiver
28 requested by a Marketplace plan under subsection (b) for a time
29 not to exceed December 31, 2024.
30 (d) This SECTION expires January 1, 2025.
EH 1332—LS 6979/DI 55 41
COMMITTEE REPORT
Mr. Speaker: Your Committee on Insurance, to which was referred
House Bill 1332, has had the same under consideration and begs leave
to report the same back to the House with the recommendation that said
bill be amended as follows:
Page 1, delete lines 1 through 17, begin a new paragraph and insert:
"SECTION 1. IC 24-15-1-1, AS ADDED BY P.L.94-2023,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]: Sec. 1. (a) This article applies to a person that
conducts business in Indiana or produces products or services that are
targeted to residents of Indiana and that during a calendar year:
(1) controls or processes personal data of at least one hundred
thousand (100,000) consumers who are Indiana residents; or
(2) controls or processes personal data of at least twenty-five
thousand (25,000) consumers who are Indiana residents and
derives more than fifty percent (50%) of gross revenue from the
sale of personal data.
(b) This article does not apply to any of the following:
(1) Either of the following:
(A) The state, a state agency, or a body, authority, board,
bureau, commission, district, or agency of any political
subdivision of the state.
(B) A third party under contract with an entity described in
clause (A), when acting on behalf of the entity. This clause
does not exempt data held or created by third parties outside
of the scope of the contract with the entity.
(2) Any financial institutions and affiliates, or data subject to Title
V of the federal Gramm-Leach-Bliley Act (15 U.S.C. 6801 et
seq.).
(3) Any covered entity or business associate governed by the
privacy, security, and breach notification rules issued by the
United States Department of Health and Human Services (45 CFR
Parts 160 and 164) pursuant to HIPAA.
(4) Any nonprofit organization.
(5) Any institution of higher education.
(6) Any public utility (as defined in IC 8-1-2-1(a)) or service
company affiliated with a public utility (as defined in
IC 8-1-2-1(a)). For purposes of this subdivision, "service
company" means an associate company within a holding company
system organized specifically for the purpose of providing goods
or services to a public utility (as defined in IC 8-1-2-1(a)) in the
EH 1332—LS 6979/DI 55 42
same holding company system.
(7) Any organization exempt from taxation under Section
501(c)(4) of the Internal Revenue Code that is:
(A) established to detect or prevent insurance related
crime or fraud; and
(B) subject to a memorandum of understanding with a
statewide law enforcement agency.".
Delete pages 2 through 5.
Page 6, delete lines 1 through 39.
Page 22, between lines 20 and 21, begin a new paragraph and insert:
"SECTION 11. IC 27-1-50-8 IS REPEALED [EFFECTIVE JULY
1, 2024]. Sec. 8. An insurer shall pass through to a plan sponsor one
hundred percent (100%) of all rebates concerning the dispensing or
administration of prescription drugs to the covered individuals of the
plan sponsor.
SECTION 12. IC 27-1-50-9, AS ADDED BY P.L.166-2023,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 9. (a) At the time of contracting, an insurer shall
provide offer to plan sponsors the option of following plans:
(1) A plan that applies one hundred percent (100%) of the
rebates to reduce premiums for all covered individuals
equally.
(2) A plan calculating that calculates defined cost sharing for
covered individuals of the plan sponsor at the point of sale based
on a price that is reduced by some or an amount equal to at least
eighty-five percent (85%) of all of the rebates received or
estimated to be received by the insurer concerning the dispensing
or administration of the prescription drug.
(b) A plan sponsor may choose one (1) of the plans offered
under subsection (a).
SECTION 13. IC 27-1-50-10, AS ADDED BY P.L.166-2023,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 10. Nothing in this chapter prohibits an insurer
from decreasing a covered individual's defined cost sharing by an
amount greater than the amount required under section 8 9 of this
chapter.
SECTION 14. IC 27-1-50-11, AS ADDED BY P.L.166-2023,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 11. An insurer shall disclose the following
information to a plan sponsor on at least an annual basis:
(1) The approximate amount of rebates expected to be received by
the insurer concerning the dispensing or administration of
EH 1332—LS 6979/DI 55 43
prescription drugs to the covered individuals of the plan sponsor.
(2) An explanation that the plan sponsor may choose to:
(A) apply the rebates to reduce premiums for all covered
individuals; or
(B) calculate defined cost sharing for a covered individual at
the point of sale based on a price that is reduced by an
amount equal to at least eighty-five percent (85%) of all
rebates received or estimated to be received by the insurer
concerning the dispensing or administration of the covered
individual's prescription drugs.
(3) An explanation that, in the individual market, IC 27-1-49
requires that covered individual defined cost sharing be calculated
at the point of sale based on a price that is reduced by at least
eighty-five percent (85%) of the rebates concerning the
dispensing or administration of the covered individual's
prescription drugs.".
Page 22, between lines 30 and 31, begin a new paragraph and insert:
"SECTION 12. IC 27-2-28-1, AS ADDED BY P.L.226-2023,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JUNE 30, 2024]: 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. 2025.
(b) This chapter does not apply to notices required by the federal
Fair Credit Reporting Act (15 U.S.C. 1681 et seq.).".
Page 34, after line 6, begin a new paragraph and insert:
"SECTION 16. IC 27-8-11-7, AS AMENDED BY P.L.190-2023,
SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 7. (a) This section applies to an insurer that issues
or administers a policy that provides coverage for basic health care
services (as defined in IC 27-13-1-4).
(b) As used in this section, "clean credentialing application" means
an application for network participation that:
(1) is submitted by a provider under this section;
(2) does not contain an error; and
(3) may be processed by the insurer without returning the
application to the provider for a revision or clarification.
(c) As used in this section, "credentialing" means a process by
which an insurer makes a determination that:
(1) is based on criteria established by the insurer; and
(2) concerns whether a provider is eligible to:
(A) provide health services to an individual eligible for
coverage; and
EH 1332—LS 6979/DI 55 44
(B) receive reimbursement for the health services;
under an agreement that is entered into between the provider and
the insurer.
(d) As used in this section, "unclean credentialing application"
means an application for network participation that:
(1) is submitted by a provider under this section;
(2) contains at least one (1) error; and
(3) must be returned to the provider to correct the error.
(e) The department of insurance shall prescribe the credentialing
application form used by the Council for Affordable Quality Healthcare
(CAQH) in electronic or paper format, which must be used by:
(1) a provider who applies for credentialing by an insurer; and
(2) an insurer that performs credentialing activities.
(f) An insurer shall notify a provider concerning a deficiency on a
completed unclean credentialing application form submitted by the
provider not later than five (5) business days after the entity receives
the completed unclean credentialing application form. A notice
described in this subsection must:
(1) provide a description of the deficiency; and
(2) state the reason why the application was determined to be an
unclean credentialing application.
(g) A provider shall respond to the notification required under
subsection (f) not later than five (5) business days after receipt of the
notice.
(h) An insurer shall notify a provider concerning the status of the
provider's completed clean credentialing application when:
(1) the provider is provisionally credentialed; and
(2) the insurer makes a final credentialing determination
concerning the provider.
(i) If the insurer fails to issue a credentialing determination within
fifteen (15) business days after receiving a completed clean
credentialing application form from a provider, the insurer shall
provisionally credential the provider in accordance with the standards
and guidelines governing provisional credentialing from the National
Committee for Quality Assurance or its successor organization. The
provisional credentialing license is valid until a determination is made
on the credentialing application of the provider.
(j) Once an insurer fully credentials a provider that holds
provisional credentialing and a network provider agreement has been
executed, then reimbursement payments under the contract shall be
paid retroactive to the date the provider was provisionally credentialed.
The insurer shall reimburse the provider at the rates determined by the
EH 1332—LS 6979/DI 55 45
contract between the provider and the insurer.
(k) If an insurer does not fully credential a provider that is
provisionally credentialed under subsection (i), the provisional
credentialing is terminated on the date the insurer notifies the provider
of the adverse credentialing determination. The insurer is not required
to reimburse for services rendered while the provider was provisionally
credentialed.
SECTION 17. IC 27-13-43-2, AS AMENDED BY P.L.190-2023,
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 2. (a) As used in this section, "clean credentialing
application" means an application for network participation that:
(1) is submitted by a provider under this section;
(2) does not contain an error; and
(3) may be processed by the health maintenance organization
without returning the application to the provider for a revision or
clarification.
(b) As used in this section, "credentialing" means a process by
which a health maintenance organization makes a determination that:
(1) is based on criteria established by the health maintenance
organization; and
(2) concerns whether a provider is eligible to:
(A) provide health services to an individual eligible for
coverage; and
(B) receive reimbursement for the health services;
under an agreement that is entered into between the provider and
the health maintenance organization.
(c) As used in this section, "unclean credentialing application"
means an application for network participation that:
(1) is submitted by a provider under this section;
(2) contains at least one (1) error; and
(3) must be returned to the provider to correct the error.
(d) The department shall prescribe the credentialing application
form used by the Council for Affordable Quality Healthcare (CAQH)
in electronic or paper format. The form must be used by:
(1) a provider who applies for credentialing by a health
maintenance organization; and
(2) a health maintenance organization that performs credentialing
activities.
(e) A health maintenance organization shall notify a provider
concerning a deficiency on a completed unclean credentialing
application form submitted by the provider not later than five (5)
business days after the entity receives the completed unclean
EH 1332—LS 6979/DI 55 46
credentialing application form. A notice described in this subsection
must:
(1) provide a description of the deficiency; and
(2) state the reason why the application was determined to be an
unclean credentialing application.
(f) A provider shall respond to the notification required under
subsection (e) not later than five (5) business days after receipt of the
notice.
(g) A health maintenance organization shall notify a provider
concerning the status of the provider's completed clean credentialing
application when:
(1) the provider is provisionally credentialed; and
(2) the health maintenance organization makes a final
credentialing determination concerning the provider.
(h) If the health maintenance organization fails to issue a
credentialing determination within fifteen (15) business days after
receiving a completed clean credentialing application form from a
provider, the health maintenance organization shall provisionally
credential the provider in accordance with the standards and guidelines
governing provisional credentialing from the National Committee for
Quality Assurance or its successor organization. The provisional
credentialing license is valid until a determination is made on the
credentialing application of the provider.
(i) Once a health maintenance organization fully credentials a
provider that holds provisional credentialing and a network provider
agreement has been executed, then reimbursement payments under the
contract shall be paid retroactive to the date the provider was
provisionally credentialed. The health maintenance organization shall
reimburse the provider at the rates determined by the contract between
the provider and the health maintenance organization.
(j) If a health maintenance organization does not fully credential a
provider that is provisionally credentialed under subsection (h), the
provisional credentialing is terminated on the date the health
maintenance organization notifies the provider of the adverse
credentialing determination. The health maintenance organization is
not required to reimburse for services rendered while the provider was
provisionally credentialed.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1332 as introduced.)
EH 1332—LS 6979/DI 55 47
CARBAUGH
Committee Vote: yeas 13, nays 0.
_____
COMMITTEE REPORT
Madam President: The Senate Committee on Health and Provider
Services, to which was referred House Bill No. 1332, has had the same
under consideration and begs leave to report the same back to the
Senate with the recommendation that said bill be AMENDED as
follows:
Page 1, delete lines 1 through 17.
Page 2, delete lines 1 through 25, begin a new paragraph and insert:
"SECTION 1. IC 27-1-15.7-4, AS AMENDED BY P.L.148-2017,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 4. (a) The commissioner shall approve and
disapprove continuing education courses after considering
recommendations made by the insurance producer education and
continuing education advisory council created commission established
under section 6 6.5 of this chapter.
(b) The commissioner may not approve a course under this section
if the course:
(1) is designed to prepare an individual to receive an initial
license under this chapter;
(2) concerns only routine, basic office skills, including filing,
keyboarding, and basic computer skills; or
(3) may be completed by a licensee without supervision by an
instructor, unless the course involves an examination process that
is:
(A) completed and passed by the licensee as determined by the
provider of the course; and
(B) approved by the commissioner.
(c) The commissioner shall approve a course under this section that
is submitted for approval by an insurance trade association or
professional insurance association if:
(1) the objective of the course is to educate a manager or an
owner of a business entity that is required to obtain an insurance
producer license under IC 27-1-15.6-6(d);
(2) the course teaches insurance producer management and is
designed to result in improved efficiency in insurance producer
operations, systems use, or key functions;
EH 1332—LS 6979/DI 55 48
(3) the course is designed to benefit consumers; and
(4) the course is not described in subsection (b).
(d) Approval of a continuing education course under this section
shall be for a period of not more than two (2) years.
(e) A prospective provider of a continuing education course shall
pay:
(1) a fee of forty dollars ($40) for each course submitted for
approval of the commissioner under this section; or
(2) an annual fee of five hundred dollars ($500) not later than
January 1 of a calendar year, which entitles the prospective
provider to submit an unlimited number of courses for approval
of the commissioner under this section during the calendar year.
The commissioner may waive all or a portion of the fee for a course
submitted under a reciprocity agreement with another state for the
approval or disapproval of continuing education courses. Fees collected
under this subsection shall be deposited in the department of insurance
fund established under IC 27-1-3-28.
(f) A prospective provider of a continuing education course may
electronically deliver to the commissioner any supporting materials for
the course.
(g) The commissioner shall adopt rules under IC 4-22-2 to establish
procedures for approving continuing education courses.
SECTION 2. IC 27-1-15.7-5, AS AMENDED BY P.L.81-2012,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 5. (a) To qualify as a certified prelicensing course
of study for purposes of IC 27-1-15.6-6, an insurance producer program
of study must meet all of the following criteria:
(1) Be conducted or developed by an:
(A) insurance trade association;
(B) accredited college or university;
(C) educational organization certified by the insurance
producer education and continuing education advisory council;
commission; or
(D) insurance company licensed to do business in Indiana.
(2) Provide for self-study or instruction provided by an approved
instructor in a structured setting, as follows:
(A) For life insurance producers, not less than twenty (20)
hours of instruction in a structured setting or comparable
self-study on:
(i) ethical practices in the marketing and selling of
insurance;
(ii) requirements of the insurance laws and administrative
EH 1332—LS 6979/DI 55 49
rules of Indiana; and
(iii) principles of life insurance.
(B) For health insurance producers, not less than twenty (20)
hours of instruction in a structured setting or comparable
self-study on:
(i) ethical practices in the marketing and selling of
insurance;
(ii) requirements of the insurance laws and administrative
rules of Indiana; and
(iii) principles of health insurance.
(C) For life and health insurance producers, not less than forty
(40) hours of instruction in a structured setting or comparable
self-study on:
(i) ethical practices in the marketing and selling of
insurance;
(ii) requirements of the insurance laws and administrative
rules of Indiana;
(iii) principles of life insurance; and
(iv) principles of health insurance.
(D) For property and casualty insurance producers, not less
than forty (40) hours of instruction in a structured setting or
comparable self-study on:
(i) ethical practices in the marketing and selling of
insurance;
(ii) requirements of the insurance laws and administrative
rules of Indiana;
(iii) principles of property insurance; and
(iv) principles of liability insurance.
(E) For personal lines producers, a minimum of twenty (20)
hours of instruction in a structured setting or comparable
self-study on:
(i) ethical practices in the marketing and selling of
insurance;
(ii) requirements of the insurance laws and administrative
rules of Indiana; and
(iii) principles of property and liability insurance applicable
to coverages sold to individuals and families for primarily
noncommercial purposes.
(F) For title insurance producers, not less than ten (10) hours
of instruction in a structured setting or comparable self-study
on:
(i) ethical practices in the marketing and selling of title
EH 1332—LS 6979/DI 55 50
insurance;
(ii) requirements of the insurance laws and administrative
rules of Indiana;
(iii) principles of title insurance, including underwriting and
escrow issues; and
(iv) principles of the federal Real Estate Settlement
Procedures Act (12 U.S.C. 2608).
(G) For annuity product producers, not less than four (4) hours
of instruction in a structured setting or comparable self-study
on:
(i) types and classifications of annuities;
(ii) identification of the parties to an annuity;
(iii) the manner in which fixed, variable, and indexed
annuity contract provisions affect consumers;
(iv) income taxation of qualified and non-qualified
annuities;
(v) primary uses of annuities; and
(vi) appropriate sales practices, replacement, and disclosure
requirements.
(3) Instruction provided in a structured setting must be provided
only by individuals who meet the qualifications established by the
commissioner under subsection (b).
(b) The commissioner, after consulting with the insurance producer
education and continuing education advisory council, commission,
shall adopt rules under IC 4-22-2 prescribing the criteria that a person
must meet to render instruction in a certified prelicensing course of
study.
(c) The commissioner shall adopt rules under IC 4-22-2 prescribing
the subject matter that an insurance producer program of study must
cover to qualify for certification as a certified prelicensing course of
study under this section.
(d) The commissioner may make recommendations that the
commissioner considers necessary for improvements in course
materials.
(e) The commissioner shall designate a program of study that meets
the requirements of this section as a certified prelicensing course of
study for purposes of IC 27-1-15.6-6.
(f) For each person that provides one (1) or more certified
prelicensing courses of study, the commissioner shall annually
determine, of all individuals who received classroom instruction in the
certified prelicensing courses of study provided by the person, the
percentage who passed the examination required by IC 27-1-15.6-5.
EH 1332—LS 6979/DI 55 51
The commissioner shall determine only one (1) passing percentage
under this subsection for all lines of insurance described in
IC 27-1-15.6-7(a) for which the person provides classroom instruction
in certified prelicensing courses of study.
(g) The commissioner may, after notice and opportunity for a
hearing, do the following:
(1) Withdraw the certification of a course of study that does not
maintain reasonable standards, as determined by the
commissioner for the protection of the public.
(2) Disqualify a person that is currently qualified under
subsection (b) to render instruction in a certified prelicensing
course of study from rendering the instruction if the passing
percentage calculated under subsection (f) is less than forty-five
percent (45%).
(h) Current course materials for a prelicensing course of study that
is certified under this section must be submitted to the commissioner
upon request, but not less frequently than once every three (3) years.
SECTION 3. IC 27-1-15.7-6 IS REPEALED [EFFECTIVE JULY
1, 2024]. Sec. 6. (a) As used in this section, "council" refers to the
insurance producer education and continuing education advisory
council created under subsection (b).
(b) The insurance producer education and continuing education
advisory council is created within the department. The council consists
of the commissioner and fifteen (15) members appointed by the
governor as follows:
(1) Two (2) members recommended by the Professional Insurance
Agents of Indiana.
(2) Two (2) members recommended by the Independent Insurance
Agents of Indiana.
(3) Two (2) members recommended by the Indiana Association
of Insurance and Financial Advisors.
(4) Two (2) members recommended by the Indiana State
Association of Health Underwriters.
(5) Two (2) representatives of direct writing or exclusive
producer's insurance companies.
(6) One (1) representative of the Association of Life Insurance
Companies.
(7) One (1) member recommended by the Insurance Institute of
Indiana.
(8) One (1) member recommended by the Indiana Land Title
Association.
(9) Two (2) other individuals.
EH 1332—LS 6979/DI 55 52
(c) Members of the council serve for a term of three (3) years.
Members may not serve more than two (2) consecutive terms.
(d) Before making appointments to the council, the governor must:
(1) solicit; and
(2) select appointees to the council from;
nominations made by organizations and associations that represent
individuals and corporations selling insurance in Indiana.
(e) The council shall meet at least semiannually.
(f) A member of the council is entitled to the minimum salary per
diem provided under IC 4-10-11-2.1(b). A member is also entitled to
reimbursement for traveling expenses and other expenses actually
incurred in connection with the member's duties, as provided in the
state travel policies and procedures established by the state department
of administration and approved by the state budget agency.
(g) The council shall review and make recommendations to the
commissioner with respect to course materials, curriculum, and
credentials of instructors of each prelicensing course of study for which
certification by the commissioner is sought under section 5 of this
chapter and shall make recommendations to the commissioner with
respect to educational requirements for insurance producers.
(h) A member of the council or designee of the commissioner shall
be permitted access to any classroom while instruction is in progress
to monitor the classroom instruction.
(i) The council shall make recommendations to the commissioner
concerning the following:
(1) Continuing education courses for which the approval of the
commissioner is sought under section 4 of this chapter.
(2) Rules proposed for adoption by the commissioner that would
affect continuing education.
SECTION 4. IC 27-1-15.7-6.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 6.5. (a) As used in this section,
"commission" refers to the insurance producer education and
continuing education commission established by subsection (b).
(b) The insurance producer education and continuing education
commission is established within the department. The
commissioner shall appoint the following seven (7) individuals:
(1) One (1) individual nominated by the Professional
Insurance Agents of Indiana or its successor organization.
(2) One (1) individual nominated by the Independent
Insurance Agents of Indiana or its successor organization.
(3) One (1) individual nominated by the Indiana Association
EH 1332—LS 6979/DI 55 53
of Insurance and Financial Advisors or its successor
organization.
(4) One (1) individual nominated by the Indiana State
Association of Health Underwriters or its successor
organization.
(5) One (1) individual nominated by the Association of Life
Insurance Companies or its successor organization.
(6) One (1) individual nominated by the Insurance Institute of
Indiana or its successor organization.
(7) One (1) individual nominated by the Indiana Land Title
Association or its successor organization.
The commissioner shall solicit nominations from the entities set
forth in this subsection. The commissioner may deny to make the
appointment of an individual nominated under this subsection only
if the commissioner determines that the individual is not in good
standing with the department or is not qualified. If the
commissioner denies the appointment of an individual nominated
under this subsection, the commissioner shall provide the
nominating entity with the reason for the denial and allow the
nominating entity to submit an alternative nomination.
(c) A member of the commission serves for a term of three (3)
years that expires June 30, 2027, and every third year thereafter.
A member may not serve more than two (2) consecutive terms.
(d) The commissioner shall appoint a member of the commission
to serve as chairperson, who serves at the will of the commissioner.
The commission shall meet:
(1) at the call of the chairperson; and
(2) at least semiannually.
The department shall staff the commission. Four (4) members
constitute a quorum of the commission.
(e) The commissioner shall fill a vacancy on the commission
with a nomination from the entity that nominated the predecessor
or the entity's succession. The individual appointed to fill the
vacancy shall serve for the remainder of the predecessor's term.
(f) A member of the commission is entitled to the minimum
salary per diem provided under IC 4-10-11-2.1(b). A member is
also entitled to reimbursement for traveling expenses and other
expenses actually incurred in connection with the member's duties,
in accordance with state travel policies and procedures established
by the Indiana department of administration and approved by the
budget agency. Money paid under this subsection shall be paid
from amounts appropriated to the department.
EH 1332—LS 6979/DI 55 54
(g) The commission shall review and make recommendations to
the commissioner concerning the following:
(1) Course materials and curriculum and instructor
credentials for prelicensing courses of study for which
certification by the commissioner is sought under section 5 of
this chapter.
(2) Continuing education requirements for insurance
producers.
(3) Continuing education courses for which the approval of
the commissioner is sought under section 4 of this chapter.
(4) Rules proposed for adoption by the commissioner
concerning continuing education under this chapter.
(h) A member of the commission or a designee of the
commissioner is permitted access to any classroom while
instruction is in progress to monitor the classroom instruction.".
Page 4, line 17, after "(j)" insert "This subsection is effective
beginning January 1, 2026.".
Page 5, line 18, after "(p)" insert "This subsection is effective
beginning January 1, 2026.".
Page 5, line 28, after "(q)" insert "This subsection is effective
beginning January 1, 2026.".
Page 8, line 37, delete "The" and insert "Beginning January 1,
2026, the".
Page 10, line 4, delete "Group Capital Calculation." and insert "This
subsection is effective beginning January 1, 2026.".
Page 11, line 33, delete "Liquidity Stress Test." and insert "This
subsection is effective beginning January 1, 2026.".
Page 18, delete lines 7 through 11.
Page 18, line 15, after "provide" insert "only".
Page 18, delete lines 27 through 32.
Page 34, after line 17, begin a new paragraph and insert:
"SECTION 19. [EFFECTIVE JULY 1, 2024] (a) The definitions in
IC 27-2-29 apply to this SECTION.
(b) A Marketplace plan may request a temporary waiver in
writing from the department of insurance concerning compliance
with IC 27-1-49 and IC 27-1-50. The Marketplace plan must state
in the request the following:
(1) The reason why the Marketplace plan is unable to comply
with either or both of the following:
(A) IC 27-1-49.
(B) IC 27-1-50.
(2) Verification that the Marketplace plan will comply with
EH 1332—LS 6979/DI 55 55
the statute or statutes for which the waiver is requested
beginning January 1, 2025.
(c) The department of insurance may approve a waiver
requested by a Marketplace plan under subsection (b) for a time
not to exceed December 31, 2024.
(d) This SECTION expires January 1, 2025.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1332 as printed January 25, 2024.)
CHARBONNEAU, Chairperson
Committee Vote: Yeas 11, Nays 0.
EH 1332—LS 6979/DI 55