LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6979 NOTE PREPARED: Feb 1, 2024
BILL NUMBER: HB 1332 BILL AMENDED: Jan 25, 2024
SUBJECT: Department of Insurance Regulatory Matters.
FIRST AUTHOR: Rep. Carbaugh BILL STATUS: As Passed House
FIRST SPONSOR: Sen. Baldwin
FUNDS AFFECTED: XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: Consumer Data Protection: The bill provides that the article regarding consumer
data protection does not apply to any organization exempt from taxation under Section 501(c)(4) of the
Internal Revenue Code that is established to detect or prevent insurance related crime or fraud and subject
to a memorandum of understanding with a statewide law enforcement agency.
Alien or Foreign Insurance Company: The bill repeals the law requiring an alien or foreign insurance
company to annually submit to the Department of Insurance (DOI) a condensed statement of its assets and
liabilities and requiring the DOI to publish the statement in a newspaper.
Regulation of Insurance: The bill 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.
Insurance Administrators: The bill 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.
Prescription Drug Rebates: The bill amends the law on individual prescription drug rebates and the law on
group prescription drug rebates to authorize the DOI to adopt rules for the 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.
Options: The bill requires an insurer to offer to plan sponsors the following plans:
(1) A plan that applies 100% of the rebates to reduce premiums for all covered individuals equally.
HB 1332 1 (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.
It allows a plan sponsor to choose one of the offered plans.
Applicability: The bill changes the date of applicability for provisions regarding a notice of material change
from after June 30, 2024, to after June 30, 2025.
Property and Casualty Insurance: The bill 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.
Effective Date: June 30, 2024; July 1, 2024; January 1, 2026.
Explanation of State Expenditures: Consumer Data Protection: The Attorney General (AG) is responsible
for enforcing consumer data protection as prescribed in IC 24-15. This bill exempts certain 501(c)(4)
organizations from such enforcement which will result in a minor decrease in workload for the AG beginning
January 1, 2026. (IC 24-15 does not go into effect until January 1, 2026.)
Department of Insurance (DOI): Violations of individual and group prescription drug rebates are actionable
by the DOI as unfair and deceptive acts. The agency workload could increase to investigate and adjudicate
allegations to determine if an unfair or deceptive act has been committed. Increases in DOI workload are
expected to be accomplished within existing resource and funding levels. [The DOI is funded through a
dedicated agency fund.]
Explanation of State Revenues: Consumer Data Protections: The AG is able to collect a maximum civil
penalty of $7,500 per violation. The bill’s requirements would decrease the number of potential violations
once the provision goes into effect. Any revenue decrease would be minimal.
Unfair and Deceptive Acts: The state insurance commissioner may take administrative actions concerning
unfair and deceptive acts that will impact revenue to the state General Fund and the DOI’s agency fund. The
penalty for engaging in unfair and deceptive acts is a civil penalty between $25,000 and $50,000 for each
act or violation, which is deposited into the state General Fund.
Third Party Administrator (TPA) Licenses: The bill could lead to additional administrators applying for
licensure in Indiana, which could increase license fee revenue. The current fee for TPA licenses is $50.
Additional Information: According to DOI, there are currently 380 licensed TPAs, of which, 84 are resident
licenses.
Explanation of Local Expenditures: The bill impacts local units of government who offer group
prescription drug coverage. The bill requires an insurer to offer two options to employers to choose from for
their group plans. Any changes resulting from the bill is indeterminate.
Explanation of Local Revenues:
State Agencies Affected: Department of Insurance; Attorney General.
HB 1332 2 Local Agencies Affected: Local units offering group prescription drug coverage.
Information Sources: Claire Szpara, Department of Insurance; Legislative Services Agency, Indiana
Handbook of Taxes, Revenues, and Appropriations, FY 2023; IC 25-1-50;
https://www.in.gov/idoi/licensing/continuing-education/providers/ce-providers-general-informationguidel
ines/.
Fiscal Analyst: Jasmine Noel, 317-234-1360; Nate Bodnar, 317-234-9476.
HB 1332 3