IN
Indiana House Bill HB1332

Indiana 2024 Regular Session

Indiana House Bill HB1332 Compare Versions

OldNewDifferences
1+*EH1332.2*
2+Reprinted
3+March 5, 2024
4+ENGROSSED
5+HOUSE BILL No. 1332
6+_____
7+DIGEST OF HB 1332 (Updated March 4, 2024 4:35 pm - DI 141)
8+Citations Affected: IC 27-1; IC 27-2; IC 27-4; IC 27-6; IC 27-8;
9+IC 27-13.
10+Synopsis: Department of insurance regulatory matters. Repeals the
11+law requiring an alien or foreign insurance company to annually submit
12+to the department of insurance (department) a condensed statement of
13+(Continued next page)
14+Effective: June 30, 2024; July 1, 2024.
15+Carbaugh, Lehman
16+(SENATE SPONSOR — BALDWIN)
17+January 10, 2024, read first time and referred to Committee on Insurance.
18+January 25, 2024, amended, reported — Do Pass.
19+January 31, 2024, read second time, ordered engrossed. Engrossed.
20+February 1, 2024, read third time, passed. Yeas 95, nays 0.
21+SENATE ACTION
22+February 7, 2024, read first time and referred to Committee on Health and Provider
23+Services.
24+February 29, 2024, amended, reported favorably — Do Pass.
25+March 4, 2024, read second time, amended, ordered engrossed.
26+EH 1332—LS 6979/DI 55 Digest Continued
27+its assets and liabilities and requiring the department to publish the
28+statement in a newspaper. Adds to the law on the regulation of
29+insurance holding company systems provisions concerning liquidity
30+stress testing according to the framework established by the National
31+Association of Insurance Commissioners. Amends the law on insurance
32+administrators to set forth certain circumstances under which an
33+insurance administrator is required to apply to Indiana for a license.
34+Requires an insurer to mail a written notice of nonrenewal to an insured
35+at least 60 days before the anniversary date of the policy if the coverage
36+is provided to a municipality or county entity. Amends the law on
37+individual prescription drug rebates and the law on group prescription
38+drug rebates to authorize the department to adopt rules for the
39+enforcement of those laws and to specify that a violation of either of
40+those laws is an unfair or deceptive act or practice in the business of
41+insurance. Requires an insurer to only offer to plan sponsors the
42+following plans: (1) A plan that applies 100% of the rebates to reduce
43+premiums for all covered individuals equally. (2) A plan that calculates
44+defined cost sharing for covered individuals of the plan sponsor at the
45+point of sale based on a price that is reduced by an amount equal to at
46+least 85% of all of the rebates received or estimated to be received by
47+the insurer. Changes the date of applicability for provisions regarding
48+a notice of material change from after June 30, 2024, to after June 30,
49+2025. Amends the property and casualty insurance guaranty association
50+law concerning the allocation, transfer, or assumption by one insurer
51+of a policy that was issued by another insurer.
52+EH 1332—LS 6979/DI 55EH 1332—LS 6979/DI 55 Reprinted
53+March 5, 2024
154 Second Regular Session of the 123rd General Assembly (2024)
255 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
356 Constitution) is being amended, the text of the existing provision will appear in this style type,
457 additions will appear in this style type, and deletions will appear in this style type.
558 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
659 provision adopted), the text of the new provision will appear in this style type. Also, the
760 word NEW will appear in that style type in the introductory clause of each SECTION that adds
861 a new provision to the Indiana Code or the Indiana Constitution.
962 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
1063 between statutes enacted by the 2023 Regular Session of the General Assembly.
11-HOUSE ENROLLED ACT No. 1332
12-AN ACT to amend the Indiana Code concerning insurance.
64+ENGROSSED
65+HOUSE BILL No. 1332
66+A BILL FOR AN ACT to amend the Indiana Code concerning
67+insurance.
1368 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. IC 27-1-15.7-4, AS AMENDED BY P.L.148-2017,
15-SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16-JULY 1, 2024]: Sec. 4. (a) The commissioner shall approve and
17-disapprove continuing education courses after considering
18-recommendations made by the insurance producer education and
19-continuing education advisory council created commission established
20-under section 6 6.5 of this chapter.
21-(b) The commissioner may not approve a course under this section
22-if the course:
23-(1) is designed to prepare an individual to receive an initial
24-license under this chapter;
25-(2) concerns only routine, basic office skills, including filing,
26-keyboarding, and basic computer skills; or
27-(3) may be completed by a licensee without supervision by an
28-instructor, unless the course involves an examination process that
29-is:
30-(A) completed and passed by the licensee as determined by the
31-provider of the course; and
32-(B) approved by the commissioner.
33-(c) The commissioner shall approve a course under this section that
34-is submitted for approval by an insurance trade association or
35-professional insurance association if:
36-HEA 1332 — CC 1 2
37-(1) the objective of the course is to educate a manager or an
38-owner of a business entity that is required to obtain an insurance
39-producer license under IC 27-1-15.6-6(d);
40-(2) the course teaches insurance producer management and is
41-designed to result in improved efficiency in insurance producer
42-operations, systems use, or key functions;
43-(3) the course is designed to benefit consumers; and
44-(4) the course is not described in subsection (b).
45-(d) Approval of a continuing education course under this section
46-shall be for a period of not more than two (2) years.
47-(e) A prospective provider of a continuing education course shall
48-pay:
49-(1) a fee of forty dollars ($40) for each course submitted for
50-approval of the commissioner under this section; or
51-(2) an annual fee of five hundred dollars ($500) not later than
52-January 1 of a calendar year, which entitles the prospective
53-provider to submit an unlimited number of courses for approval
54-of the commissioner under this section during the calendar year.
55-The commissioner may waive all or a portion of the fee for a course
56-submitted under a reciprocity agreement with another state for the
57-approval or disapproval of continuing education courses. Fees collected
58-under this subsection shall be deposited in the department of insurance
59-fund established under IC 27-1-3-28.
60-(f) A prospective provider of a continuing education course may
61-electronically deliver to the commissioner any supporting materials for
62-the course.
63-(g) The commissioner shall adopt rules under IC 4-22-2 to establish
64-procedures for approving continuing education courses.
65-SECTION 2. IC 27-1-15.7-5, AS AMENDED BY P.L.81-2012,
66-SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
67-JULY 1, 2024]: Sec. 5. (a) To qualify as a certified prelicensing course
68-of study for purposes of IC 27-1-15.6-6, an insurance producer program
69-of study must meet all of the following criteria:
70-(1) Be conducted or developed by an:
71-(A) insurance trade association;
72-(B) accredited college or university;
73-(C) educational organization certified by the insurance
74-producer education and continuing education advisory council;
75-commission; or
76-(D) insurance company licensed to do business in Indiana.
77-(2) Provide for self-study or instruction provided by an approved
78-instructor in a structured setting, as follows:
79-HEA 1332 — CC 1 3
80-(A) For life insurance producers, not less than twenty (20)
81-hours of instruction in a structured setting or comparable
82-self-study on:
83-(i) ethical practices in the marketing and selling of
84-insurance;
85-(ii) requirements of the insurance laws and administrative
86-rules of Indiana; and
87-(iii) principles of life insurance.
88-(B) For health insurance producers, not less than twenty (20)
89-hours of instruction in a structured setting or comparable
90-self-study on:
91-(i) ethical practices in the marketing and selling of
92-insurance;
93-(ii) requirements of the insurance laws and administrative
94-rules of Indiana; and
95-(iii) principles of health insurance.
96-(C) For life and health insurance producers, not less than forty
97-(40) hours of instruction in a structured setting or comparable
98-self-study on:
99-(i) ethical practices in the marketing and selling of
100-insurance;
101-(ii) requirements of the insurance laws and administrative
102-rules of Indiana;
103-(iii) principles of life insurance; and
104-(iv) principles of health insurance.
105-(D) For property and casualty insurance producers, not less
106-than forty (40) hours of instruction in a structured setting or
107-comparable self-study on:
108-(i) ethical practices in the marketing and selling of
109-insurance;
110-(ii) requirements of the insurance laws and administrative
111-rules of Indiana;
112-(iii) principles of property insurance; and
113-(iv) principles of liability insurance.
114-(E) For personal lines producers, a minimum of twenty (20)
115-hours of instruction in a structured setting or comparable
116-self-study on:
117-(i) ethical practices in the marketing and selling of
118-insurance;
119-(ii) requirements of the insurance laws and administrative
120-rules of Indiana; and
121-(iii) principles of property and liability insurance applicable
122-HEA 1332 — CC 1 4
123-to coverages sold to individuals and families for primarily
124-noncommercial purposes.
125-(F) For title insurance producers, not less than ten (10) hours
126-of instruction in a structured setting or comparable self-study
127-on:
128-(i) ethical practices in the marketing and selling of title
129-insurance;
130-(ii) requirements of the insurance laws and administrative
131-rules of Indiana;
132-(iii) principles of title insurance, including underwriting and
133-escrow issues; and
134-(iv) principles of the federal Real Estate Settlement
135-Procedures Act (12 U.S.C. 2608).
136-(G) For annuity product producers, not less than four (4) hours
137-of instruction in a structured setting or comparable self-study
138-on:
139-(i) types and classifications of annuities;
140-(ii) identification of the parties to an annuity;
141-(iii) the manner in which fixed, variable, and indexed
142-annuity contract provisions affect consumers;
143-(iv) income taxation of qualified and non-qualified
144-annuities;
145-(v) primary uses of annuities; and
146-(vi) appropriate sales practices, replacement, and disclosure
147-requirements.
148-(3) Instruction provided in a structured setting must be provided
149-only by individuals who meet the qualifications established by the
150-commissioner under subsection (b).
151-(b) The commissioner, after consulting with the insurance producer
152-education and continuing education advisory council, commission,
153-shall adopt rules under IC 4-22-2 prescribing the criteria that a person
154-must meet to render instruction in a certified prelicensing course of
155-study.
156-(c) The commissioner shall adopt rules under IC 4-22-2 prescribing
157-the subject matter that an insurance producer program of study must
158-cover to qualify for certification as a certified prelicensing course of
159-study under this section.
160-(d) The commissioner may make recommendations that the
161-commissioner considers necessary for improvements in course
162-materials.
163-(e) The commissioner shall designate a program of study that meets
164-the requirements of this section as a certified prelicensing course of
165-HEA 1332 — CC 1 5
166-study for purposes of IC 27-1-15.6-6.
167-(f) For each person that provides one (1) or more certified
168-prelicensing courses of study, the commissioner shall annually
169-determine, of all individuals who received classroom instruction in the
170-certified prelicensing courses of study provided by the person, the
171-percentage who passed the examination required by IC 27-1-15.6-5.
172-The commissioner shall determine only one (1) passing percentage
173-under this subsection for all lines of insurance described in
174-IC 27-1-15.6-7(a) for which the person provides classroom instruction
175-in certified prelicensing courses of study.
176-(g) The commissioner may, after notice and opportunity for a
177-hearing, do the following:
178-(1) Withdraw the certification of a course of study that does not
179-maintain reasonable standards, as determined by the
180-commissioner for the protection of the public.
181-(2) Disqualify a person that is currently qualified under
182-subsection (b) to render instruction in a certified prelicensing
183-course of study from rendering the instruction if the passing
184-percentage calculated under subsection (f) is less than forty-five
185-percent (45%).
186-(h) Current course materials for a prelicensing course of study that
187-is certified under this section must be submitted to the commissioner
188-upon request, but not less frequently than once every three (3) years.
189-SECTION 3. IC 27-1-15.7-6 IS REPEALED [EFFECTIVE JULY
190-1, 2024]. Sec. 6. (a) As used in this section, "council" refers to the
191-insurance producer education and continuing education advisory
192-council created under subsection (b).
193-(b) The insurance producer education and continuing education
194-advisory council is created within the department. The council consists
195-of the commissioner and fifteen (15) members appointed by the
196-governor as follows:
197-(1) Two (2) members recommended by the Professional Insurance
198-Agents of Indiana.
199-(2) Two (2) members recommended by the Independent Insurance
200-Agents of Indiana.
201-(3) Two (2) members recommended by the Indiana Association
202-of Insurance and Financial Advisors.
203-(4) Two (2) members recommended by the Indiana State
204-Association of Health Underwriters.
205-(5) Two (2) representatives of direct writing or exclusive
206-producer's insurance companies.
207-(6) One (1) representative of the Association of Life Insurance
208-HEA 1332 — CC 1 6
209-Companies.
210-(7) One (1) member recommended by the Insurance Institute of
211-Indiana.
212-(8) One (1) member recommended by the Indiana Land Title
213-Association.
214-(9) Two (2) other individuals.
215-(c) Members of the council serve for a term of three (3) years.
216-Members may not serve more than two (2) consecutive terms.
217-(d) Before making appointments to the council, the governor must:
218-(1) solicit; and
219-(2) select appointees to the council from;
220-nominations made by organizations and associations that represent
221-individuals and corporations selling insurance in Indiana.
222-(e) The council shall meet at least semiannually.
223-(f) A member of the council is entitled to the minimum salary per
224-diem provided under IC 4-10-11-2.1(b). A member is also entitled to
225-reimbursement for traveling expenses and other expenses actually
226-incurred in connection with the member's duties, as provided in the
227-state travel policies and procedures established by the state department
228-of administration and approved by the state budget agency.
229-(g) The council shall review and make recommendations to the
230-commissioner with respect to course materials, curriculum, and
231-credentials of instructors of each prelicensing course of study for which
232-certification by the commissioner is sought under section 5 of this
233-chapter and shall make recommendations to the commissioner with
234-respect to educational requirements for insurance producers.
235-(h) A member of the council or designee of the commissioner shall
236-be permitted access to any classroom while instruction is in progress
237-to monitor the classroom instruction.
238-(i) The council shall make recommendations to the commissioner
239-concerning the following:
240-(1) Continuing education courses for which the approval of the
241-commissioner is sought under section 4 of this chapter.
242-(2) Rules proposed for adoption by the commissioner that would
243-affect continuing education.
244-SECTION 4. IC 27-1-15.7-6.5 IS ADDED TO THE INDIANA
245-CODE AS A NEW SECTION TO READ AS FOLLOWS
246-[EFFECTIVE JULY 1, 2024]: Sec. 6.5. (a) As used in this section,
247-"commission" refers to the insurance producer education and
248-continuing education commission established by subsection (b).
249-(b) The insurance producer education and continuing education
250-commission is established within the department. The
251-HEA 1332 — CC 1 7
252-commissioner shall appoint the following seven (7) individuals:
253-(1) One (1) individual nominated by the Professional
254-Insurance Agents of Indiana or its successor organization.
255-(2) One (1) individual nominated by the Independent
256-Insurance Agents of Indiana or its successor organization.
257-(3) One (1) individual nominated by the Indiana Association
258-of Insurance and Financial Advisors or its successor
259-organization.
260-(4) One (1) individual nominated by the Indiana State
261-Association of Health Underwriters or its successor
262-organization.
263-(5) One (1) individual nominated by the Association of Life
264-Insurance Companies or its successor organization.
265-(6) One (1) individual nominated by the Insurance Institute of
266-Indiana or its successor organization.
267-(7) One (1) individual nominated by the Indiana Land Title
268-Association or its successor organization.
269-The commissioner shall solicit nominations from the entities set
270-forth in this subsection. The commissioner may deny to make the
271-appointment of an individual nominated under this subsection only
272-if the commissioner determines that the individual is not in good
273-standing with the department or is not qualified. If the
274-commissioner denies the appointment of an individual nominated
275-under this subsection, the commissioner shall provide the
276-nominating entity with the reason for the denial and allow the
277-nominating entity to submit an alternative nomination.
278-(c) A member of the commission serves for a term of three (3)
279-years that expires June 30, 2027, and every third year thereafter.
280-A member may not serve more than two (2) consecutive terms.
281-(d) The commissioner shall appoint a member of the commission
282-to serve as chairperson, who serves at the will of the commissioner.
283-The commission shall meet:
284-(1) at the call of the chairperson; and
285-(2) at least semiannually.
286-The department shall staff the commission. Four (4) members
287-constitute a quorum of the commission.
288-(e) The commissioner shall fill a vacancy on the commission
289-with a nomination from the entity that nominated the predecessor
290-or the entity's successor. The individual appointed to fill the
291-vacancy shall serve for the remainder of the predecessor's term.
292-(f) A member of the commission is entitled to the minimum
293-salary per diem provided under IC 4-10-11-2.1(b). A member is
294-HEA 1332 — CC 1 8
295-also entitled to reimbursement for traveling expenses and other
296-expenses actually incurred in connection with the member's duties,
297-in accordance with state travel policies and procedures established
298-by the Indiana department of administration and approved by the
299-budget agency. Money paid under this subsection shall be paid
300-from amounts appropriated to the department.
301-(g) The commission shall review and make recommendations to
302-the commissioner concerning the following:
303-(1) Course materials and curriculum and instructor
304-credentials for prelicensing courses of study for which
305-certification by the commissioner is sought under section 5 of
306-this chapter.
307-(2) Continuing education requirements for insurance
308-producers.
309-(3) Continuing education courses for which the approval of
310-the commissioner is sought under section 4 of this chapter.
311-(4) Rules proposed for adoption by the commissioner
312-concerning continuing education under this chapter.
313-(h) A member of the commission or a designee of the
314-commissioner is permitted access to any classroom while
315-instruction is in progress to monitor the classroom instruction.
316-SECTION 5. IC 27-1-18-5 IS REPEALED [EFFECTIVE JULY 1,
317-2024]. Sec. 5. At the time of filing its annual statement, an alien or
318-foreign company shall submit, on a form prescribed by the department,
319-a condensed statement of its assets and liabilities as of December 31 of
320-the preceding year. If the department, on examination of such
321-statement, determines from information available to it that it is true and
322-correct, it shall cause such statement to be published in a newspaper in
323-this state selected by the department. In the event the department
324-determines that the statement submitted by a company is inaccurate or
325-incorrect, it shall, after giving the company notice of the proposed
326-changes and an opportunity to be heard, certify the corrected statement
327-and proceed with its publication as above provided. The company shall
328-bear the expenses of the publication, but in no event shall an amount
329-exceeding forty dollars ($40) be charged for such publication. Any cost
330-of publication that exceeds forty dollars ($40) must be borne by the
331-newspaper publishing the statement.
332-SECTION 6. IC 27-1-23-1, AS AMENDED BY P.L.72-2016,
333-SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
334-JULY 1, 2024]: Sec. 1. As used in this chapter, the following terms
335-shall have the respective meanings set forth in this section, unless the
336-context shall otherwise require:
337-HEA 1332 — CC 1 9
338-(a) An "acquiring party" is the specific person by whom an
339-acquisition of control of a domestic insurer or of any corporation
340-controlling a domestic insurer is to be effected, and each person who
341-directly, or indirectly through one (1) or more intermediaries, controls
342-the person specified.
343-(b) An "affiliate" of, or person "affiliated" with, a specific person,
344-is a person that directly, or indirectly through one (1) or more
345-intermediaries, controls, or is controlled by, or is under common
346-control with, the person specified.
347-(c) A "beneficial owner" of a voting security includes any person
348-who, directly or indirectly, through any contract, arrangement,
349-understanding, relationship, revocable or irrevocable proxy, or
350-otherwise has or shares:
351-(1) voting power including the power to vote, or to direct the
352-voting of, the security; or
353-(2) investment power which includes the power to dispose, or to
354-direct the disposition, of the security.
355-(d) "Commissioner" means the insurance commissioner of this state.
356-(e) "Control" (including the terms "controlling", "controlled by", and
357-"under common control with") means the possession, direct or indirect,
358-of the power to direct or cause the direction of the management and
359-policies of a person, whether through the beneficial ownership of
360-voting securities, by contract other than a commercial contract for
361-goods or nonmanagement services, or otherwise, unless the power is
362-the result of an official position or corporate office. Control shall be
363-presumed to exist if any person beneficially owns ten percent (10%) or
364-more of the voting securities of any other person. The commissioner
365-may determine this presumption has been rebutted only by a showing
366-made in the manner provided by section 3(k) of this chapter that
367-control does not exist in fact, after giving all interested persons notice
368-and an opportunity to be heard. Control shall be presumed again to
369-exist upon the acquisition of beneficial ownership of each additional
370-five percent (5%) or more of the voting securities of the other person.
371-The commissioner may determine, after furnishing all persons in
372-interest notice and opportunity to be heard, that control exists in fact,
373-notwithstanding the absence of a presumption to that effect.
374-(f) "Department" means the department of insurance created by
375-IC 27-1-1-1.
376-(g) A "domestic insurer" is an insurer organized under the laws of
377-this state.
378-(h) "Earned surplus" means an amount equal to the unassigned
379-funds of an insurer as set forth in the most recent annual statement of
380-HEA 1332 — CC 1 10
381-an insurer that is submitted to the commissioner, excluding surplus
382-arising from unrealized capital gains or revaluation of assets.
383-(i) "Enterprise risk" means an activity, circumstance, event, or series
384-of events that involves at least one (1) affiliate of an insurer that, if not
385-remedied promptly, is likely to have a material adverse effect upon the
386-financial condition or liquidity of the insurer or the insurer's insurance
387-holding company system as a whole, including an activity,
388-circumstance, event, or series of events that would cause the:
389-(1) insurer's risk based capital to fall into company action level
390-under IC 27-1-36; or
391-(2) insurer to be in hazardous financial condition subject to
392-IC 27-1-3-7 and rules adopted under IC 27-1-3-7.
393-(j) This subsection is effective beginning January 1, 2026.
394-"Group Capital Calculation Instructions" refers to the group
395-capital calculation instructions as adopted by the NAIC and as
396-amended by the NAIC from time to time in accordance with the
397-procedures adopted by the NAIC.
398-(j) (k) "Group wide supervisor" means the regulatory official who
399-is:
400-(1) authorized by the commissioner to conduct and coordinate
401-group wide supervision of an internationally active insurance
402-group; and
403-(2) determined by the commissioner to have sufficient significant
404-contact with the internationally active insurance group to enable
405-group wide supervision.
406-(k) (l) An "insurance holding company system" consists of two (2)
407-or more affiliated persons, one (1) or more of which is an insurer.
408-(l) (m) "Insurer" has the same meaning as set forth in IC 27-1-2-3,
409-except that it does not include:
410-(1) agencies, authorities, or instrumentalities of the United States,
411-its possessions and territories, the Commonwealth of Puerto Rico,
412-the District of Columbia, or a state or political subdivision of a
413-state; or
414-(2) nonprofit medical and hospital service associations.
415-The term includes a health maintenance organization (as defined in
416-IC 27-13-1-19) and a limited service health maintenance organization
417-(as defined in IC 27-13-1-27).
418-(m) (n) "Internationally active insurance group" means an insurance
419-holding company system that:
420-(1) includes an insurer that is registered under section 3 of this
421-chapter; and
422-(2) meets the following requirements:
423-HEA 1332 — CC 1 11
424-(A) The insurance holding company system has premiums
425-written in at least three (3) countries.
426-(B) The percentage of the insurance holding company system's
427-gross premiums written outside the United States is at least ten
428-percent (10%) of the insurance holding company system's total
429-gross written premiums.
430-(C) Based on a three (3) year rolling average, the:
431-(i) total assets of the insurance holding company system are
432-at least fifty billion dollars ($50,000,000,000); or
433-(ii) total gross written premiums of the insurance holding
434-company system are at least ten billion dollars
435-($10,000,000,000).
436-(n) (o) "NAIC" refers to the National Association of Insurance
437-Commissioners.
438-(p) This subsection is effective beginning January 1, 2026.
439-"NAIC Liquidity Stress Test Framework" refers to a separate
440-NAIC publication that includes:
441-(1) a history of the NAIC's development of regulatory
442-liquidity stress testing;
443-(2) the Scope Criteria applicable for a specific data year; and
444-(3) the Liquidity Stress Test instructions and reporting
445-templates for a specific data year, such Scope Criteria,
446-instructions, and a reporting template as adopted by the
447-NAIC and as amended by the NAIC from time to time in
448-accordance with the procedures adopted by the NAIC.
449-(q) This subsection is effective beginning January 1, 2026.
450-"Scope Criteria", as detailed in the NAIC Liquidity Stress Test
451-Framework, refers to the designated exposure bases, along with the
452-minimum magnitudes of the designated exposure bases, for the
453-specified data year, which are used to establish a preliminary list
454-of insurers considered scoped into the NAIC Liquidity Stress Test
455-Framework for that data year.
456-(o) (r) "Supervisory college" means a temporary or permanent
457-forum:
458-(1) comprised of regulators, including other state, federal, and
459-international regulators, responsible for the supervision of:
460-(A) a domestic insurer that is part of an insurance holding
461-company system that has international operations;
462-(B) an insurance holding company system described in clause
463-(A); or
464-(C) an affiliate of:
465-(i) a domestic insurer described in clause (A); or
466-HEA 1332 — CC 1 12
467-(ii) an insurance holding company system described in
468-clause (B); and
469-(2) established to facilitate communication and cooperation
470-between the regulators described in subdivision (1).
471-(p) (s) A "person" is an individual, a corporation, a limited liability
472-company, a partnership, an association, a joint stock company, a trust,
473-an unincorporated organization, any similar entity or any combination
474-of the foregoing acting in concert. The term does not include the
475-following:
476-(1) A securities broker performing no more than the usual and
477-customary broker's function.
478-(2) A joint venture partnership that is exclusively engaged in
479-owning, managing, leasing, or developing real or tangible
480-personal property.
481-(q) (t) A "policyholder" of a domestic insurer includes any person
482-who owns an insurance policy or annuity contract issued by the
483-domestic insurer, any person reinsured by the domestic insurer under
484-a reinsurance contract or treaty between the person and the domestic
485-insurer, and any health maintenance organization with which the
486-domestic insurer has contracted to provide services or protection
487-against the cost of care.
488-(r) (u) "Securityholder" means a person that owns a security of a
489-specified person, including common stock, preferred stock, debt
490-obligations, and any other security that:
491-(1) is convertible to; or
492-(2) evidences the right to acquire;
493-a common stock, preferred stock, or debt obligation.
494-(s) (v) A "subsidiary" of a specified person is an affiliate controlled
495-by that person directly or indirectly through one (1) or more
496-intermediaries.
497-(t) (w) "Surplus" means the total of gross paid in and contributed
498-surplus, special surplus funds, and unassigned surplus, less treasury
499-stock at cost.
500-(u) (x) "Voting security" includes any security convertible into or
501-evidencing a right to acquire a voting security.
502-SECTION 7. IC 27-1-23-3, AS AMENDED BY P.L.124-2018,
503-SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
504-JULY 1, 2024]: Sec. 3. (a) Every insurer which is authorized to do
505-business in this state and which is a member of an insurance holding
506-company system shall register with the commissioner, except a foreign
507-insurer subject to disclosure requirements and standards adopted by
508-statute or regulation in the jurisdiction of its domicile which are
509-HEA 1332 — CC 1 13
510-substantially similar to those contained in:
511-(1) this section;
512-(2) section 4(a) and 4(c) of this chapter; and
513-(3) section 4(b) of this chapter or a provision such as the
514-following:
515-Each registered insurer shall keep current the information
516-required to be disclosed in its registration statement by
517-reporting all material changes or additions within fifteen
518-(15) days after the end of the month in which it learns of
519-each such change or addition.
520-Any insurer which is subject to registration under this section shall
521-register within fifteen (15) days after it becomes subject to registration,
522-and annually thereafter by July 1 of each year for the previous calendar
523-year, unless the commissioner for good cause shown extends the time
524-for registration, and then within such extended time. The commissioner
525-may require any authorized insurer which is a member of an insurance
526-holding company system but not subject to registration under this
527-section to furnish a copy of the registration statement or other
528-information filed by such insurer with the insurance regulatory
529-authority of its domiciliary jurisdiction.
530-(b) Every insurer subject to registration shall file a registration
531-statement on a form prescribed by the commissioner, which shall
532-contain current information about all of the following:
533-(1) The capital structure, general financial condition, ownership
534-and management of the insurer and any person controlling the
535-insurer.
536-(2) The identity of every member of the insurance holding
537-company system.
538-(3) The following agreements in force, relationships subsisting,
539-and transactions that are currently outstanding or that have
540-occurred during the last calendar year between such insurer and
541-its affiliates:
542-(A) loans, other investments, or purchases, sales or exchanges
543-of securities of the affiliates by the insurer or of the insurer by
544-its affiliates;
545-(B) purchases, sales, or exchanges of assets;
546-(C) transactions not in the ordinary course of business;
547-(D) guarantees or undertakings for the benefit of an affiliate
548-which result in an actual contingent exposure of the insurer's
549-assets to liability, other than insurance contracts entered into
550-in the ordinary course of the insurer's business;
551-(E) all management and service contracts and all cost-sharing
552-HEA 1332 — CC 1 14
553-arrangements;
554-(F) reinsurance agreements;
555-(G) dividends and other distributions to shareholders; and
556-(H) consolidated tax allocation agreements.
557-(4) Any pledge of the insurer's stock, including stock of any
558-subsidiary or controlling affiliate, for a loan made to any member
559-of the insurance holding company system.
560-(5) If requested by the commissioner, financial statements of the
561-insurance holding company system, the parent corporation of the
562-insurer, or all affiliates, including annual audited financial
563-statements filed with the federal Securities and Exchange
564-Commission under the Securities Act of 1933 (15 U.S.C. 77a et
565-seq.) or the federal Securities Exchange Act of 1934 (15 U.S.C.
566-78a et seq.).
567-(6) Statements reflecting that the insurer's:
568-(A) board of directors oversees corporate governance and
569-internal controls; and
570-(B) officers or senior management have approved and
571-implemented and maintain and monitor corporate governance
572-and internal control procedures.
573-(7) Other matters concerning transactions between registered
574-insurers and any affiliates as may be included from time to time
575-in any registration forms prescribed by the commissioner.
576-(8) Other information that the commissioner requires under rules
577-adopted under IC 4-22-2.
578-(c) Every registration statement must contain a summary outlining
579-all items in the current registration statement representing changes
580-from the prior registration statement.
581-(d) No information need be disclosed on the registration statement
582-filed pursuant to subsection (b) if such information is not material for
583-the purposes of this section. Unless the commissioner by rule or order
584-provides otherwise, sales, purchases, exchanges, loans or extensions of
585-credit, or investments, involving one-half of one per cent percent
586-(0.5%) or less of an insurer's admitted assets as of the 31st thirty-first
587-day of December next preceding shall not be deemed material for
588-purposes of this section. Beginning January 1, 2026, the definition
589-of materiality set forth in this subsection does not apply for
590-purposes of the Group Capital Calculation or the Liquidity Stress
591-Test Framework.
592-(e) Each registered insurer shall keep current the information
593-required to be disclosed in its registration statement by reporting all
594-material changes or additions on amendment forms prescribed by the
595-HEA 1332 — CC 1 15
596-commissioner within fifteen (15) days after the end of the month in
597-which it learns of each such change or addition.
598-(f) A person within an insurance holding company system subject
599-to registration under this chapter shall provide complete and accurate
600-information to an insurer when that information is reasonably necessary
601-to enable the insurer to comply with this chapter.
602-(g) The commissioner shall terminate the registration of any insurer
603-which demonstrates that it no longer is subject to the provisions of this
604-section.
605-(h) The commissioner may require or allow two (2) or more
606-affiliated insurers subject to registration under this section to file a
607-consolidated registration statement or consolidated reports amending
608-their consolidated registration statement or their individual registration
609-statements.
610-(i) The commissioner may allow an insurer which is authorized to
611-do business in this state and which is a member of an insurance holding
612-company system to register on behalf of any affiliated insurer which is
613-required to register under subsection (a) and to file all information and
614-material required to be filed under this section.
615-(j) The provisions of this section shall not apply to any insurer,
616-information, or transaction if and to the extent that the commissioner
617-by rule or order shall exempt the same from the provisions of this
618-section.
619-(k) Any person may file with the commissioner a disclaimer of
620-affiliation with any authorized insurer or such a disclaimer may be filed
621-by such insurer or any member of an insurance holding company
622-system. The disclaimer shall fully disclose all material relationships
623-and bases for affiliation between such person and such insurer as well
624-as the basis for disclaiming such affiliation. After a disclaimer has been
625-filed, the insurer shall be relieved of any duty to register or report under
626-this section which may arise out of the insurer's relationship with such
627-person unless and until the commissioner disallows such disclaimer. A
628-disclaimer of affiliation is considered to have been granted unless the
629-commissioner, less than thirty (30) days after receiving a disclaimer,
630-notifies the person filing the disclaimer that the disclaimer is
631-disallowed. The commissioner shall disallow such disclaimer only after
632-furnishing all parties in interest with notice and opportunity to be
633-heard.
634-(l) The person that ultimately controls an insurer that is subject to
635-registration shall file with the lead state commissioner of the insurance
636-holding company system (as determined by the procedures in the
637-Financial Analysis Handbook) an annual enterprise risk report that
638-HEA 1332 — CC 1 16
639-identifies, to the best of the person's knowledge, the material risks
640-within the insurance holding company system that could pose
641-enterprise risk to the insurer.
642-(m) This subsection is effective beginning January 1, 2026.
643-Except as otherwise provided in subdivisions (1) through (7), the
644-ultimate controlling person of every insurer subject to registration
645-shall file, concurrently with the registration, an annual group
646-capital calculation as directed by the lead state commissioner. The
647-report shall be completed in accordance with the NAIC Group
648-Capital Calculation Instructions, which may permit the lead state
649-commissioner to allow a controlling person that is not the ultimate
650-controlling person to file the group capital calculation. The report
651-shall be filed with the lead state commissioner of the insurance
652-holding company system as determined by the commissioner in
653-accordance with the procedures within the Financial Analysis
654-Handbook adopted by the NAIC. Insurance holding company
655-systems described in the following are exempt from filing the group
656-capital calculation:
657-(1) An insurance holding company system that has only one
658-(1) insurer within its holding company structure, writes
659-business only in its domestic state, is licensed only in its
660-domestic state, and assumes no business from any other
661-insurer.
662-(2) An insurance holding company system that is required to
663-perform a group capital calculation specified by the United
664-States Federal Reserve Board. The lead state commissioner
665-shall request the calculation from the Federal Reserve Board
666-under the terms of information sharing agreements in effect.
667-If the Federal Reserve Board cannot share the calculation
668-with the lead state commissioner, the insurance holding
669-company system is not exempt from the group capital
670-calculation filing.
671-(3) An insurance holding company system whose non-United
672-States group wide supervisor is located within a Reciprocal
673-Jurisdiction as described in IC 27-6-10.1 that recognizes the
674-United States state regulatory approach to group supervision
675-and group capital.
676-(4) An insurance holding company system:
677-(A) that provides information to the lead state that meets
678-the requirements for accreditation under the NAIC
679-financial standards and accreditation program, either
680-directly or indirectly through the group wide supervisor,
681-HEA 1332 — CC 1 17
682-who has determined such information is satisfactory to
683-allow the lead state to comply with the NAIC group
684-supervision approach, as detailed in the Financial Analysis
685-Handbook adopted by the NAIC; and
686-(B) whose non-United States group wide supervisor that is
687-not in a Reciprocal Jurisdiction recognizes and accepts, as
688-specified by the commissioner in regulation, the group
689-capital calculation as the world wide group capital
690-assessment for United States insurance groups that operate
691-in that jurisdiction.
692-(5) Notwithstanding the provisions of subdivisions (3) and (4),
693-a lead state commissioner shall require the group capital
694-calculation for United States operations of any non-United
695-States based insurance holding company system where, after
696-any necessary consultation with other supervisors or officials,
697-it is deemed appropriate by the lead state commissioner for
698-prudential oversight and solvency monitoring purposes or for
699-ensuring the competitiveness of the insurance marketplace.
700-(6) Notwithstanding the exemptions from filing the group
701-capital calculation stated in subdivisions (1) through (4), the
702-lead state commissioner has the discretion to exempt the
703-ultimate controlling person from filing the annual group
704-capital calculation or to accept a limited group capital filing
705-or report in accordance with criteria as specified by the
706-commissioner in regulation.
707-(7) If the lead state commissioner determines that an
708-insurance holding company system no longer meets one (1) or
709-more of the requirements for an exemption from filing the
710-group capital calculation under this section, the insurance
711-holding company system shall file the group capital
712-calculation at the next annual filing date unless given an
713-extension by the lead state commissioner based on reasonable
714-grounds shown.
715-(n) This subsection is effective beginning January 1, 2026. The
716-ultimate controlling person of every insurer that is subject to
717-registration and is also scoped into the NAIC Liquidity Stress Test
718-Framework shall file the results of a specific year's Liquidity Stress
719-Test. The filing shall be made to the lead state commissioner of the
720-insurance holding company system as determined by the
721-procedures within the Financial Analysis Handbook adopted by the
722-NAIC, subject to the following:
723-(1) The NAIC Liquidity Stress Test Framework includes
724-HEA 1332 — CC 1 18
725-Scope Criteria applicable to a specific data year. These Scope
726-Criteria are reviewed at least annually by the NAIC Financial
727-Stability Task Force or its successor. Any change to the NAIC
728-Liquidity Stress Test Framework or to the data year for
729-which the Scope Criteria are to be measured shall be effective
730-on January 1 of the year following the calendar year when
731-such changes are adopted. Insurers meeting at least one (1)
732-threshold of the Scope Criteria are considered scoped into the
733-NAIC Liquidity Stress Test Framework for the specified data
734-year unless the lead state commissioner, in consultation with
735-the NAIC Financial Stability Task Force or its successor,
736-determines that the insurer should not be scoped into the
737-NAIC Liquidity Stress Test Framework for that data year.
738-Similarly, insurers that do not trigger at least one (1)
739-threshold of the Scope Criteria are considered scoped out of
740-the NAIC Liquidity Stress Test Framework for the specified
741-data year unless the lead state commissioner, in consultation
742-with the NAIC Financial Stability Task Force or its successor,
743-determines that the insurer should be scoped into the NAIC
744-Liquidity Stress Test Framework for that data year.
745-(2) The performance of, and the filing of the results from, a
746-specific year's Liquidity Stress Test shall comply with the
747-NAIC Liquidity Stress Test Framework's instructions and
748-reporting templates for that year and any lead state
749-commissioner determinations, in consultation with the NAIC
750-Financial Stability Task Force or its successor, that are
751-provided within the NAIC Liquidity Stress Test Framework.
752-(m) (o) The commissioner may impose on a person a civil penalty
753-of one hundred dollars ($100) per day that the person fails to file,
754-within the period specified, a:
755-(1) registration statement; or
756-(2) summary of a registration statement or enterprise risk filing;
757-required by this section. The commissioner shall deposit a civil penalty
758-collected under this subsection in the department of insurance fund
759-established by IC 27-1-3-28.
760-SECTION 8. IC 27-1-24.5-20, AS ADDED BY P.L.68-2020,
69+1 SECTION 1. IC 27-1-18-5 IS REPEALED [EFFECTIVE JULY 1,
70+2 2024]. Sec. 5. At the time of filing its annual statement, an alien or
71+3 foreign company shall submit, on a form prescribed by the department,
72+4 a condensed statement of its assets and liabilities as of December 31 of
73+5 the preceding year. If the department, on examination of such
74+6 statement, determines from information available to it that it is true and
75+7 correct, it shall cause such statement to be published in a newspaper in
76+8 this state selected by the department. In the event the department
77+9 determines that the statement submitted by a company is inaccurate or
78+10 incorrect, it shall, after giving the company notice of the proposed
79+11 changes and an opportunity to be heard, certify the corrected statement
80+12 and proceed with its publication as above provided. The company shall
81+13 bear the expenses of the publication, but in no event shall an amount
82+14 exceeding forty dollars ($40) be charged for such publication. Any cost
83+15 of publication that exceeds forty dollars ($40) must be borne by the
84+16 newspaper publishing the statement.
85+17 SECTION 2. IC 27-1-23-1, AS AMENDED BY P.L.72-2016,
86+EH 1332—LS 6979/DI 55 2
87+1 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
88+2 JULY 1, 2024]: Sec. 1. As used in this chapter, the following terms
89+3 shall have the respective meanings set forth in this section, unless the
90+4 context shall otherwise require:
91+5 (a) An "acquiring party" is the specific person by whom an
92+6 acquisition of control of a domestic insurer or of any corporation
93+7 controlling a domestic insurer is to be effected, and each person who
94+8 directly, or indirectly through one (1) or more intermediaries, controls
95+9 the person specified.
96+10 (b) An "affiliate" of, or person "affiliated" with, a specific person,
97+11 is a person that directly, or indirectly through one (1) or more
98+12 intermediaries, controls, or is controlled by, or is under common
99+13 control with, the person specified.
100+14 (c) A "beneficial owner" of a voting security includes any person
101+15 who, directly or indirectly, through any contract, arrangement,
102+16 understanding, relationship, revocable or irrevocable proxy, or
103+17 otherwise has or shares:
104+18 (1) voting power including the power to vote, or to direct the
105+19 voting of, the security; or
106+20 (2) investment power which includes the power to dispose, or to
107+21 direct the disposition, of the security.
108+22 (d) "Commissioner" means the insurance commissioner of this state.
109+23 (e) "Control" (including the terms "controlling", "controlled by", and
110+24 "under common control with") means the possession, direct or indirect,
111+25 of the power to direct or cause the direction of the management and
112+26 policies of a person, whether through the beneficial ownership of
113+27 voting securities, by contract other than a commercial contract for
114+28 goods or nonmanagement services, or otherwise, unless the power is
115+29 the result of an official position or corporate office. Control shall be
116+30 presumed to exist if any person beneficially owns ten percent (10%) or
117+31 more of the voting securities of any other person. The commissioner
118+32 may determine this presumption has been rebutted only by a showing
119+33 made in the manner provided by section 3(k) of this chapter that
120+34 control does not exist in fact, after giving all interested persons notice
121+35 and an opportunity to be heard. Control shall be presumed again to
122+36 exist upon the acquisition of beneficial ownership of each additional
123+37 five percent (5%) or more of the voting securities of the other person.
124+38 The commissioner may determine, after furnishing all persons in
125+39 interest notice and opportunity to be heard, that control exists in fact,
126+40 notwithstanding the absence of a presumption to that effect.
127+41 (f) "Department" means the department of insurance created by
128+42 IC 27-1-1-1.
129+EH 1332—LS 6979/DI 55 3
130+1 (g) A "domestic insurer" is an insurer organized under the laws of
131+2 this state.
132+3 (h) "Earned surplus" means an amount equal to the unassigned
133+4 funds of an insurer as set forth in the most recent annual statement of
134+5 an insurer that is submitted to the commissioner, excluding surplus
135+6 arising from unrealized capital gains or revaluation of assets.
136+7 (i) "Enterprise risk" means an activity, circumstance, event, or series
137+8 of events that involves at least one (1) affiliate of an insurer that, if not
138+9 remedied promptly, is likely to have a material adverse effect upon the
139+10 financial condition or liquidity of the insurer or the insurer's insurance
140+11 holding company system as a whole, including an activity,
141+12 circumstance, event, or series of events that would cause the:
142+13 (1) insurer's risk based capital to fall into company action level
143+14 under IC 27-1-36; or
144+15 (2) insurer to be in hazardous financial condition subject to
145+16 IC 27-1-3-7 and rules adopted under IC 27-1-3-7.
146+17 (j) This subsection is effective beginning January 1, 2026.
147+18 "Group Capital Calculation Instructions" refers to the group
148+19 capital calculation instructions as adopted by the NAIC and as
149+20 amended by the NAIC from time to time in accordance with the
150+21 procedures adopted by the NAIC.
151+22 (j) (k) "Group wide supervisor" means the regulatory official who
152+23 is:
153+24 (1) authorized by the commissioner to conduct and coordinate
154+25 group wide supervision of an internationally active insurance
155+26 group; and
156+27 (2) determined by the commissioner to have sufficient significant
157+28 contact with the internationally active insurance group to enable
158+29 group wide supervision.
159+30 (k) (l) An "insurance holding company system" consists of two (2)
160+31 or more affiliated persons, one (1) or more of which is an insurer.
161+32 (l) (m) "Insurer" has the same meaning as set forth in IC 27-1-2-3,
162+33 except that it does not include:
163+34 (1) agencies, authorities, or instrumentalities of the United States,
164+35 its possessions and territories, the Commonwealth of Puerto Rico,
165+36 the District of Columbia, or a state or political subdivision of a
166+37 state; or
167+38 (2) nonprofit medical and hospital service associations.
168+39 The term includes a health maintenance organization (as defined in
169+40 IC 27-13-1-19) and a limited service health maintenance organization
170+41 (as defined in IC 27-13-1-27).
171+42 (m) (n) "Internationally active insurance group" means an insurance
172+EH 1332—LS 6979/DI 55 4
173+1 holding company system that:
174+2 (1) includes an insurer that is registered under section 3 of this
175+3 chapter; and
176+4 (2) meets the following requirements:
177+5 (A) The insurance holding company system has premiums
178+6 written in at least three (3) countries.
179+7 (B) The percentage of the insurance holding company system's
180+8 gross premiums written outside the United States is at least ten
181+9 percent (10%) of the insurance holding company system's total
182+10 gross written premiums.
183+11 (C) Based on a three (3) year rolling average, the:
184+12 (i) total assets of the insurance holding company system are
185+13 at least fifty billion dollars ($50,000,000,000); or
186+14 (ii) total gross written premiums of the insurance holding
187+15 company system are at least ten billion dollars
188+16 ($10,000,000,000).
189+17 (n) (o) "NAIC" refers to the National Association of Insurance
190+18 Commissioners.
191+19 (p) This subsection is effective beginning January 1, 2026.
192+20 "NAIC Liquidity Stress Test Framework" refers to a separate
193+21 NAIC publication that includes:
194+22 (1) a history of the NAIC's development of regulatory
195+23 liquidity stress testing;
196+24 (2) the Scope Criteria applicable for a specific data year; and
197+25 (3) the Liquidity Stress Test instructions and reporting
198+26 templates for a specific data year, such Scope Criteria,
199+27 instructions, and a reporting template as adopted by the
200+28 NAIC and as amended by the NAIC from time to time in
201+29 accordance with the procedures adopted by the NAIC.
202+30 (q) This subsection is effective beginning January 1, 2026.
203+31 "Scope Criteria", as detailed in the NAIC Liquidity Stress Test
204+32 Framework, refers to the designated exposure bases, along with the
205+33 minimum magnitudes of the designated exposure bases, for the
206+34 specified data year, which are used to establish a preliminary list
207+35 of insurers considered scoped into the NAIC Liquidity Stress Test
208+36 Framework for that data year.
209+37 (o) (r) "Supervisory college" means a temporary or permanent
210+38 forum:
211+39 (1) comprised of regulators, including other state, federal, and
212+40 international regulators, responsible for the supervision of:
213+41 (A) a domestic insurer that is part of an insurance holding
214+42 company system that has international operations;
215+EH 1332—LS 6979/DI 55 5
216+1 (B) an insurance holding company system described in clause
217+2 (A); or
218+3 (C) an affiliate of:
219+4 (i) a domestic insurer described in clause (A); or
220+5 (ii) an insurance holding company system described in
221+6 clause (B); and
222+7 (2) established to facilitate communication and cooperation
223+8 between the regulators described in subdivision (1).
224+9 (p) (s) A "person" is an individual, a corporation, a limited liability
225+10 company, a partnership, an association, a joint stock company, a trust,
226+11 an unincorporated organization, any similar entity or any combination
227+12 of the foregoing acting in concert. The term does not include the
228+13 following:
229+14 (1) A securities broker performing no more than the usual and
230+15 customary broker's function.
231+16 (2) A joint venture partnership that is exclusively engaged in
232+17 owning, managing, leasing, or developing real or tangible
233+18 personal property.
234+19 (q) (t) A "policyholder" of a domestic insurer includes any person
235+20 who owns an insurance policy or annuity contract issued by the
236+21 domestic insurer, any person reinsured by the domestic insurer under
237+22 a reinsurance contract or treaty between the person and the domestic
238+23 insurer, and any health maintenance organization with which the
239+24 domestic insurer has contracted to provide services or protection
240+25 against the cost of care.
241+26 (r) (u) "Securityholder" means a person that owns a security of a
242+27 specified person, including common stock, preferred stock, debt
243+28 obligations, and any other security that:
244+29 (1) is convertible to; or
245+30 (2) evidences the right to acquire;
246+31 a common stock, preferred stock, or debt obligation.
247+32 (s) (v) A "subsidiary" of a specified person is an affiliate controlled
248+33 by that person directly or indirectly through one (1) or more
249+34 intermediaries.
250+35 (t) (w) "Surplus" means the total of gross paid in and contributed
251+36 surplus, special surplus funds, and unassigned surplus, less treasury
252+37 stock at cost.
253+38 (u) (x) "Voting security" includes any security convertible into or
254+39 evidencing a right to acquire a voting security.
255+40 SECTION 3. IC 27-1-23-3, AS AMENDED BY P.L.124-2018,
256+41 SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
257+42 JULY 1, 2024]: Sec. 3. (a) Every insurer which is authorized to do
258+EH 1332—LS 6979/DI 55 6
259+1 business in this state and which is a member of an insurance holding
260+2 company system shall register with the commissioner, except a foreign
261+3 insurer subject to disclosure requirements and standards adopted by
262+4 statute or regulation in the jurisdiction of its domicile which are
263+5 substantially similar to those contained in:
264+6 (1) this section;
265+7 (2) section 4(a) and 4(c) of this chapter; and
266+8 (3) section 4(b) of this chapter or a provision such as the
267+9 following:
268+10 Each registered insurer shall keep current the information
269+11 required to be disclosed in its registration statement by
270+12 reporting all material changes or additions within fifteen
271+13 (15) days after the end of the month in which it learns of
272+14 each such change or addition.
273+15 Any insurer which is subject to registration under this section shall
274+16 register within fifteen (15) days after it becomes subject to registration,
275+17 and annually thereafter by July 1 of each year for the previous calendar
276+18 year, unless the commissioner for good cause shown extends the time
277+19 for registration, and then within such extended time. The commissioner
278+20 may require any authorized insurer which is a member of an insurance
279+21 holding company system but not subject to registration under this
280+22 section to furnish a copy of the registration statement or other
281+23 information filed by such insurer with the insurance regulatory
282+24 authority of its domiciliary jurisdiction.
283+25 (b) Every insurer subject to registration shall file a registration
284+26 statement on a form prescribed by the commissioner, which shall
285+27 contain current information about all of the following:
286+28 (1) The capital structure, general financial condition, ownership
287+29 and management of the insurer and any person controlling the
288+30 insurer.
289+31 (2) The identity of every member of the insurance holding
290+32 company system.
291+33 (3) The following agreements in force, relationships subsisting,
292+34 and transactions that are currently outstanding or that have
293+35 occurred during the last calendar year between such insurer and
294+36 its affiliates:
295+37 (A) loans, other investments, or purchases, sales or exchanges
296+38 of securities of the affiliates by the insurer or of the insurer by
297+39 its affiliates;
298+40 (B) purchases, sales, or exchanges of assets;
299+41 (C) transactions not in the ordinary course of business;
300+42 (D) guarantees or undertakings for the benefit of an affiliate
301+EH 1332—LS 6979/DI 55 7
302+1 which result in an actual contingent exposure of the insurer's
303+2 assets to liability, other than insurance contracts entered into
304+3 in the ordinary course of the insurer's business;
305+4 (E) all management and service contracts and all cost-sharing
306+5 arrangements;
307+6 (F) reinsurance agreements;
308+7 (G) dividends and other distributions to shareholders; and
309+8 (H) consolidated tax allocation agreements.
310+9 (4) Any pledge of the insurer's stock, including stock of any
311+10 subsidiary or controlling affiliate, for a loan made to any member
312+11 of the insurance holding company system.
313+12 (5) If requested by the commissioner, financial statements of the
314+13 insurance holding company system, the parent corporation of the
315+14 insurer, or all affiliates, including annual audited financial
316+15 statements filed with the federal Securities and Exchange
317+16 Commission under the Securities Act of 1933 (15 U.S.C. 77a et
318+17 seq.) or the federal Securities Exchange Act of 1934 (15 U.S.C.
319+18 78a et seq.).
320+19 (6) Statements reflecting that the insurer's:
321+20 (A) board of directors oversees corporate governance and
322+21 internal controls; and
323+22 (B) officers or senior management have approved and
324+23 implemented and maintain and monitor corporate governance
325+24 and internal control procedures.
326+25 (7) Other matters concerning transactions between registered
327+26 insurers and any affiliates as may be included from time to time
328+27 in any registration forms prescribed by the commissioner.
329+28 (8) Other information that the commissioner requires under rules
330+29 adopted under IC 4-22-2.
331+30 (c) Every registration statement must contain a summary outlining
332+31 all items in the current registration statement representing changes
333+32 from the prior registration statement.
334+33 (d) No information need be disclosed on the registration statement
335+34 filed pursuant to subsection (b) if such information is not material for
336+35 the purposes of this section. Unless the commissioner by rule or order
337+36 provides otherwise, sales, purchases, exchanges, loans or extensions of
338+37 credit, or investments, involving one-half of one per cent percent
339+38 (0.5%) or less of an insurer's admitted assets as of the 31st thirty-first
340+39 day of December next preceding shall not be deemed material for
341+40 purposes of this section. Beginning January 1, 2026, the definition
342+41 of materiality set forth in this subsection does not apply for
343+42 purposes of the Group Capital Calculation or the Liquidity Stress
344+EH 1332—LS 6979/DI 55 8
345+1 Test Framework.
346+2 (e) Each registered insurer shall keep current the information
347+3 required to be disclosed in its registration statement by reporting all
348+4 material changes or additions on amendment forms prescribed by the
349+5 commissioner within fifteen (15) days after the end of the month in
350+6 which it learns of each such change or addition.
351+7 (f) A person within an insurance holding company system subject
352+8 to registration under this chapter shall provide complete and accurate
353+9 information to an insurer when that information is reasonably necessary
354+10 to enable the insurer to comply with this chapter.
355+11 (g) The commissioner shall terminate the registration of any insurer
356+12 which demonstrates that it no longer is subject to the provisions of this
357+13 section.
358+14 (h) The commissioner may require or allow two (2) or more
359+15 affiliated insurers subject to registration under this section to file a
360+16 consolidated registration statement or consolidated reports amending
361+17 their consolidated registration statement or their individual registration
362+18 statements.
363+19 (i) The commissioner may allow an insurer which is authorized to
364+20 do business in this state and which is a member of an insurance holding
365+21 company system to register on behalf of any affiliated insurer which is
366+22 required to register under subsection (a) and to file all information and
367+23 material required to be filed under this section.
368+24 (j) The provisions of this section shall not apply to any insurer,
369+25 information, or transaction if and to the extent that the commissioner
370+26 by rule or order shall exempt the same from the provisions of this
371+27 section.
372+28 (k) Any person may file with the commissioner a disclaimer of
373+29 affiliation with any authorized insurer or such a disclaimer may be filed
374+30 by such insurer or any member of an insurance holding company
375+31 system. The disclaimer shall fully disclose all material relationships
376+32 and bases for affiliation between such person and such insurer as well
377+33 as the basis for disclaiming such affiliation. After a disclaimer has been
378+34 filed, the insurer shall be relieved of any duty to register or report under
379+35 this section which may arise out of the insurer's relationship with such
380+36 person unless and until the commissioner disallows such disclaimer. A
381+37 disclaimer of affiliation is considered to have been granted unless the
382+38 commissioner, less than thirty (30) days after receiving a disclaimer,
383+39 notifies the person filing the disclaimer that the disclaimer is
384+40 disallowed. The commissioner shall disallow such disclaimer only after
385+41 furnishing all parties in interest with notice and opportunity to be
386+42 heard.
387+EH 1332—LS 6979/DI 55 9
388+1 (l) The person that ultimately controls an insurer that is subject to
389+2 registration shall file with the lead state commissioner of the insurance
390+3 holding company system (as determined by the procedures in the
391+4 Financial Analysis Handbook) an annual enterprise risk report that
392+5 identifies, to the best of the person's knowledge, the material risks
393+6 within the insurance holding company system that could pose
394+7 enterprise risk to the insurer.
395+8 (m) This subsection is effective beginning January 1, 2026.
396+9 Except as otherwise provided in subdivisions (1) through (7), the
397+10 ultimate controlling person of every insurer subject to registration
398+11 shall file, concurrently with the registration, an annual group
399+12 capital calculation as directed by the lead state commissioner. The
400+13 report shall be completed in accordance with the NAIC Group
401+14 Capital Calculation Instructions, which may permit the lead state
402+15 commissioner to allow a controlling person that is not the ultimate
403+16 controlling person to file the group capital calculation. The report
404+17 shall be filed with the lead state commissioner of the insurance
405+18 holding company system as determined by the commissioner in
406+19 accordance with the procedures within the Financial Analysis
407+20 Handbook adopted by the NAIC. Insurance holding company
408+21 systems described in the following are exempt from filing the group
409+22 capital calculation:
410+23 (1) An insurance holding company system that has only one
411+24 (1) insurer within its holding company structure, writes
412+25 business only in its domestic state, is licensed only in its
413+26 domestic state, and assumes no business from any other
414+27 insurer.
415+28 (2) An insurance holding company system that is required to
416+29 perform a group capital calculation specified by the United
417+30 States Federal Reserve Board. The lead state commissioner
418+31 shall request the calculation from the Federal Reserve Board
419+32 under the terms of information sharing agreements in effect.
420+33 If the Federal Reserve Board cannot share the calculation
421+34 with the lead state commissioner, the insurance holding
422+35 company system is not exempt from the group capital
423+36 calculation filing.
424+37 (3) An insurance holding company system whose non-United
425+38 States group wide supervisor is located within a Reciprocal
426+39 Jurisdiction as described in IC 27-6-10.1 that recognizes the
427+40 United States state regulatory approach to group supervision
428+41 and group capital.
429+42 (4) An insurance holding company system:
430+EH 1332—LS 6979/DI 55 10
431+1 (A) that provides information to the lead state that meets
432+2 the requirements for accreditation under the NAIC
433+3 financial standards and accreditation program, either
434+4 directly or indirectly through the group wide supervisor,
435+5 who has determined such information is satisfactory to
436+6 allow the lead state to comply with the NAIC group
437+7 supervision approach, as detailed in the Financial Analysis
438+8 Handbook adopted by the NAIC; and
439+9 (B) whose non-United States group wide supervisor that is
440+10 not in a Reciprocal Jurisdiction recognizes and accepts, as
441+11 specified by the commissioner in regulation, the group
442+12 capital calculation as the world wide group capital
443+13 assessment for United States insurance groups that operate
444+14 in that jurisdiction.
445+15 (5) Notwithstanding the provisions of subdivisions (3) and (4),
446+16 a lead state commissioner shall require the group capital
447+17 calculation for United States operations of any non-United
448+18 States based insurance holding company system where, after
449+19 any necessary consultation with other supervisors or officials,
450+20 it is deemed appropriate by the lead state commissioner for
451+21 prudential oversight and solvency monitoring purposes or for
452+22 ensuring the competitiveness of the insurance marketplace.
453+23 (6) Notwithstanding the exemptions from filing the group
454+24 capital calculation stated in subdivisions (1) through (4), the
455+25 lead state commissioner has the discretion to exempt the
456+26 ultimate controlling person from filing the annual group
457+27 capital calculation or to accept a limited group capital filing
458+28 or report in accordance with criteria as specified by the
459+29 commissioner in regulation.
460+30 (7) If the lead state commissioner determines that an
461+31 insurance holding company system no longer meets one (1) or
462+32 more of the requirements for an exemption from filing the
463+33 group capital calculation under this section, the insurance
464+34 holding company system shall file the group capital
465+35 calculation at the next annual filing date unless given an
466+36 extension by the lead state commissioner based on reasonable
467+37 grounds shown.
468+38 (n) This subsection is effective beginning January 1, 2026. The
469+39 ultimate controlling person of every insurer that is subject to
470+40 registration and is also scoped into the NAIC Liquidity Stress Test
471+41 Framework shall file the results of a specific year's Liquidity Stress
472+42 Test. The filing shall be made to the lead state commissioner of the
473+EH 1332—LS 6979/DI 55 11
474+1 insurance holding company system as determined by the
475+2 procedures within the Financial Analysis Handbook adopted by the
476+3 NAIC, subject to the following:
477+4 (1) The NAIC Liquidity Stress Test Framework includes
478+5 Scope Criteria applicable to a specific data year. These Scope
479+6 Criteria are reviewed at least annually by the NAIC Financial
480+7 Stability Task Force or its successor. Any change to the NAIC
481+8 Liquidity Stress Test Framework or to the data year for
482+9 which the Scope Criteria are to be measured shall be effective
483+10 on January 1 of the year following the calendar year when
484+11 such changes are adopted. Insurers meeting at least one (1)
485+12 threshold of the Scope Criteria are considered scoped into the
486+13 NAIC Liquidity Stress Test Framework for the specified data
487+14 year unless the lead state commissioner, in consultation with
488+15 the NAIC Financial Stability Task Force or its successor,
489+16 determines that the insurer should not be scoped into the
490+17 NAIC Liquidity Stress Test Framework for that data year.
491+18 Similarly, insurers that do not trigger at least one (1)
492+19 threshold of the Scope Criteria are considered scoped out of
493+20 the NAIC Liquidity Stress Test Framework for the specified
494+21 data year unless the lead state commissioner, in consultation
495+22 with the NAIC Financial Stability Task Force or its successor,
496+23 determines that the insurer should be scoped into the NAIC
497+24 Liquidity Stress Test Framework for that data year.
498+25 (2) The performance of, and the filing of the results from, a
499+26 specific year's Liquidity Stress Test shall comply with the
500+27 NAIC Liquidity Stress Test Framework's instructions and
501+28 reporting templates for that year and any lead state
502+29 commissioner determinations, in consultation with the NAIC
503+30 Financial Stability Task Force or its successor, that are
504+31 provided within the NAIC Liquidity Stress Test Framework.
505+32 (m) (o) The commissioner may impose on a person a civil penalty
506+33 of one hundred dollars ($100) per day that the person fails to file,
507+34 within the period specified, a:
508+35 (1) registration statement; or
509+36 (2) summary of a registration statement or enterprise risk filing;
510+37 required by this section. The commissioner shall deposit a civil penalty
511+38 collected under this subsection in the department of insurance fund
512+39 established by IC 27-1-3-28.
513+40 SECTION 4. IC 27-1-24.5-20, AS ADDED BY P.L.68-2020,
514+41 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
515+42 JULY 1, 2024]: Sec. 20. (a) The commissioner shall do the following:
516+EH 1332—LS 6979/DI 55 12
517+1 (1) Prescribe an application for use in applying for a license to
518+2 operate as a pharmacy benefit manager.
519+3 (2) Adopt rules under IC 4-22-2 to establish the following:
520+4 (A) Pharmacy benefit manager licensing requirements.
521+5 (B) Licensing fees.
522+6 (C) A license application.
523+7 (D) Financial standards for pharmacy benefit managers.
524+8 (E) Reporting requirements described in section sections 21
525+9 and 29 of this chapter.
526+10 (F) The time frame for the resolution of an appeal under
527+11 section 22 of this chapter.
528+12 (b) The commissioner may do the following:
529+13 (1) Charge a license application fee and renewal fees established
530+14 under subsection (a)(2) in an amount not to exceed five hundred
531+15 dollars ($500) to be deposited in the department of insurance fund
532+16 established by IC 27-1-3-28.
533+17 (2) Examine or audit the books and records of a pharmacy benefit
534+18 manager one (1) time per year to determine if the pharmacy
535+19 benefit manager is in compliance with this chapter.
536+20 (3) Adopt rules under IC 4-22-2 to:
537+21 (A) implement this chapter; and
538+22 (B) specify requirements for the following:
539+23 (i) Prohibited market conduct practices.
540+24 (ii) Data reporting in connection with violations of state law.
541+25 (iii) Maximum allowable cost list compliance and
542+26 enforcement requirements, including the requirements of
543+27 sections 22 and 23 of this chapter.
544+28 (iv) Prohibitions and limits on pharmacy benefit manager
545+29 practices that require licensure under IC 25-22.5.
546+30 (v) Pharmacy benefit manager affiliate information sharing.
547+31 (vi) Lists of health plans administered by a pharmacy benefit
548+32 manager in Indiana.
549+33 (c) Financial information and proprietary information submitted by
550+34 a pharmacy benefit manager to the department is confidential.
551+35 SECTION 5. IC 27-1-25-11.1, AS AMENDED BY P.L.124-2018,
552+36 SECTION 48, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
553+37 JULY 1, 2024]: Sec. 11.1. (a) If the home state of a person is Indiana,
554+38 the person shall:
555+39 (1) apply to act as an administrator in Indiana upon the uniform
556+40 application for third party administrator license;
557+41 (2) pay an application fee in an amount determined by the
558+42 commissioner; and
559+EH 1332—LS 6979/DI 55 13
560+1 (3) receive a license from the commissioner;
561+2 before performing the function of an administrator in Indiana. The
562+3 commissioner shall deposit a fee paid under subdivision (2) into the
563+4 department of insurance fund established by IC 27-1-3-28.
564+5 (b) For the purposes of this section:
565+6 (1) if:
566+7 (A) an administrator is incorporated in Indiana; or
567+8 (B) Indiana is the administrator's principal place of
568+9 business within the United States;
569+10 the administrator shall apply to Indiana for a resident
570+11 administrator license; and
571+12 (2) if:
572+13 (A) neither the state in which an administrator is
573+14 incorporated nor the state that is the administrator's
574+15 principal place of business have adopted this chapter or a
575+16 substantially similar law governing administrators; and
576+17 (B) the administrator has not designated any other state
577+18 that has adopted this chapter or a substantially similar law
578+19 governing administrators as its home state;
579+20 the administrator shall apply to Indiana for licensure as its
580+21 designated home state.
581+22 (b) (c) The uniform application for third party administrator license
582+23 must include or be accompanied by the following:
583+24 (1) Basic organizational documents of the applicant, including:
584+25 (A) articles of incorporation;
585+26 (B) articles of association;
586+27 (C) partnership agreement;
587+28 (D) trade name certificate;
588+29 (E) trust agreement;
589+30 (F) shareholder agreement;
590+31 (G) other applicable documents; and
591+32 (H) amendments to the documents specified in clauses (A)
592+33 through (G).
593+34 (2) Bylaws, rules, regulations, or other documents that regulate
594+35 the internal affairs of the applicant.
595+36 (3) The NAIC biographical affidavits for individuals who are
596+37 responsible for the conduct of affairs of the applicant, including:
597+38 (A) members of the applicant's:
598+39 (i) board of directors;
599+40 (ii) board of trustees;
600+41 (iii) executive committee; or
601+42 (iv) other governing board or committee;
602+EH 1332—LS 6979/DI 55 14
603+1 (B) principal officers, if the applicant is a corporation;
604+2 (C) partners or members, if the applicant is:
605+3 (i) a partnership;
606+4 (ii) an association; or
607+5 (iii) a limited liability company;
608+6 (D) shareholders or members that hold, directly or indirectly,
609+7 at least ten percent (10%) of the:
610+8 (i) voting stock;
611+9 (ii) voting securities; or
612+10 (iii) voting interest;
613+11 of the applicant; and
614+12 (E) any other person who exercises control or influence over
615+13 the affairs of the applicant.
616+14 (4) Financial information reflecting a positive net worth,
617+15 including:
618+16 (A) audited annual financial statements prepared by an
619+17 independent certified public accountant for the two (2) most
620+18 recent fiscal years; or
621+19 (B) if the applicant has been in business for less than two (2)
622+20 fiscal years, financial statements or reports that are:
623+21 (i) prepared in accordance with GAAP; and
624+22 (ii) certified by an officer of the applicant;
625+23 for any completed fiscal years and for any month during the
626+24 current fiscal year for which financial statements or reports
627+25 have been completed.
628+26 If an audited financial statement or report required under clause
629+27 (A) or (B) is prepared on a consolidated basis, the statement or
630+28 report must include a columnar consolidating or combining
631+29 worksheet that includes the amounts shown on the consolidated
632+30 audited financial statement or report, separately reported on the
633+31 worksheet for each entity included on the statement or report, and
634+32 an explanation of consolidating and eliminating entries.
635+33 (5) Information determined by the commissioner to be necessary
636+34 for a review of the current financial condition of the applicant.
637+35 (6) A description of the business plan of the applicant, including:
638+36 (A) information on staffing levels and activities proposed in
639+37 Indiana and nationwide; and
640+38 (B) details concerning the applicant's ability to provide a
641+39 sufficient number of experienced and qualified personnel for:
642+40 (i) claims processing;
643+41 (ii) record keeping; and
644+42 (iii) underwriting.
645+EH 1332—LS 6979/DI 55 15
646+1 (7) Any other information required by the commissioner.
647+2 (c) (d) An administrator that applies for licensure under this section
648+3 shall make copies of written agreements with insurers available for
649+4 inspection by the commissioner.
650+5 (d) (e) An administrator that applies for licensure under this section
651+6 shall:
652+7 (1) produce the administrator's accounts, records, and files for
653+8 examination; and
654+9 (2) make the administrator's officers available to provide
655+10 information concerning the affairs of the administrator;
656+11 whenever reasonably required by the commissioner.
657+12 (e) (f) The commissioner may refuse to issue a license under this
658+13 section if the commissioner determines that:
659+14 (1) the administrator or an individual who is responsible for the
660+15 conduct of the affairs of the administrator:
661+16 (A) is not:
662+17 (i) competent;
663+18 (ii) trustworthy;
664+19 (iii) financially responsible; or
665+20 (iv) of good personal and business reputation; or
666+21 (B) has had an:
667+22 (i) insurance certificate of authority or insurance license; or
668+23 (ii) administrator certificate of authority or administrator
669+24 license;
670+25 denied or revoked for cause by any jurisdiction;
671+26 (2) the financial information provided under subsection (b)(4)
672+27 (c)(4) does not reflect that the applicant has a positive net worth;
673+28 or
674+29 (3) any of the grounds set forth in section 12.4 of this chapter
675+30 exists with respect to the administrator.
676+31 (f) (g) An administrator that applies for a license under this section
677+32 shall immediately notify the commissioner of a material change in:
678+33 (1) the ownership or control of the administrator; or
679+34 (2) another fact or circumstance that affects the administrator's
680+35 qualification for a license.
681+36 The commissioner, upon receiving notice under this subsection, shall
682+37 report the change to the centralized insurance producer license registry
683+38 described in IC 27-1-15.6-7.
684+39 (g) (h) An administrator that applies for a license under this section
685+40 and will administer a governmental plan or a church plan shall obtain
686+41 a bond as required under section 4(g) of this chapter.
687+42 (h) (i) A license that is issued under this section is valid:
688+EH 1332—LS 6979/DI 55 16
689+1 (1) for one (1) year after the date of issuance, unless subdivision
690+2 (2) applies; or
691+3 (2) until:
692+4 (A) the license is:
693+5 (i) surrendered; or
694+6 (ii) suspended or revoked by the commissioner; or
695+7 (B) the administrator:
696+8 (i) ceases to do business in Indiana; or
697+9 (ii) is not in compliance with this chapter.
698+10 SECTION 6. IC 27-1-25-12.3, AS AMENDED BY P.L.124-2018,
699+11 SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
700+12 JULY 1, 2024]: Sec. 12.3. (a) An administrator that is licensed under
701+13 section 11.1 of this chapter shall, not later than July 1 of each year
702+14 unless the commissioner grants an extension of time for good cause,
703+15 file a report for the previous calendar year that complies with the
704+16 following:
705+17 (1) The report must contain financial information reflecting a
706+18 positive net worth prepared in accordance with section 11.1(b)(4)
707+19 11.1(c)(4) of this chapter.
708+20 (2) The report must be in the form and contain matters prescribed
709+21 by the commissioner.
710+22 (3) The report must be verified by at least two (2) officers of the
711+23 administrator.
712+24 (4) The report must include the complete names and addresses of
713+25 insurers with which the administrator had a written agreement
714+26 during the preceding fiscal year.
715+27 (5) The report must be accompanied by a filing fee in an amount
716+28 determined by the commissioner.
717+29 The commissioner shall collect a filing fee paid under subdivision (5)
718+30 and deposit the fee into the department of insurance fund established
719+31 by IC 27-1-3-28.
720+32 (b) The commissioner shall review a report filed under subsection
721+33 (a) not later than September 1 of the year in which the report is filed.
722+34 Upon completion of the review, the commissioner shall:
723+35 (1) issue a certification to the administrator:
724+36 (A) indicating that:
725+37 (i) the financial statement reflects a positive net worth; and
726+38 (ii) the administrator is currently licensed and in good
727+39 standing; or
728+40 (B) noting deficiencies found in the report; or
729+41 (2) update the centralized insurance producer license registry
730+42 described in IC 27-1-15.6-7:
731+EH 1332—LS 6979/DI 55 17
732+1 (A) indicating that the administrator is solvent and in
733+2 compliance with this chapter; or
734+3 (B) noting deficiencies found in the report.
735+4 SECTION 7. IC 27-1-31-3, AS AMENDED BY P.L.196-2021,
736+5 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
737+6 JULY 1, 2024]: Sec. 3. (a) Except as provided in subsection (b), if an
738+7 insurer refuses to renew a policy of insurance written by the insurer, the
739+8 insurer shall mail written notice of nonrenewal to the insured:
740+9 (1) at least forty-five (45) days before the expiration date of the
741+10 policy, if the coverage provided is for one (1) year, or less; or
742+11 (2) at least forty-five (45) days before the anniversary date of the
743+12 policy, if the coverage provided is for more than one (1) year.
744+13 (b) This subsection does not apply to worker's compensation
745+14 insurance. If an insurer refuses to renew a policy of insurance
746+15 written by the insurer, the insurer shall mail written notice of
747+16 nonrenewal to the insured at least sixty (60) days before the
748+17 anniversary date of the policy if the coverage is provided to a
749+18 municipality (as defined in IC 36-1-2-11) or county entity.
750+19 (b) (c) A notice of nonrenewal is not required if:
751+20 (1) the insured is transferred from an insurer to an affiliate of the
752+21 insurer for future coverage; and
753+22 (2) the transfer results in the same or broader coverage.
754+23 SECTION 8. IC 27-1-49-9, AS ADDED BY P.L.166-2023,
755+24 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
756+25 JULY 1, 2024]: Sec. 9. (a) The department may enforce the
757+26 requirements of this chapter to the extent permissible under applicable
758+27 law.
759+28 (b) A violation of this chapter is an unfair or deceptive act or
760+29 practice in the business of insurance under IC 27-4-1-4.
761+30 (c) The department may adopt rules under IC 4-22-2 to set forth
762+31 fines for violations of this chapter.
763+32 SECTION 9. IC 27-1-50-9, AS ADDED BY P.L.166-2023,
764+33 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
765+34 JULY 1, 2024]: Sec. 9. (a) At the time of contracting, an insurer shall
766+35 provide only offer to plan sponsors the option of following plans:
767+36 (1) A plan that applies one hundred percent (100%) of the
768+37 rebates to reduce premiums for all covered individuals
769+38 equally.
770+39 (2) A plan calculating that calculates defined cost sharing for
771+40 covered individuals of the plan sponsor at the point of sale based
772+41 on a price that is reduced by some or an amount equal to at least
773+42 eighty-five percent (85%) of all of the rebates received or
774+EH 1332—LS 6979/DI 55 18
775+1 estimated to be received by the insurer concerning the dispensing
776+2 or administration of the prescription drug.
777+3 (b) A plan sponsor may choose one (1) of the plans offered
778+4 under subsection (a).
779+5 SECTION 10. IC 27-1-50-11, AS ADDED BY P.L.166-2023,
780+6 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
781+7 JULY 1, 2024]: Sec. 11. An insurer shall disclose the following
782+8 information to a plan sponsor on at least an annual basis:
783+9 (1) The approximate amount of rebates expected to be received by
784+10 the insurer concerning the dispensing or administration of
785+11 prescription drugs to the covered individuals of the plan sponsor.
786+12 (2) An explanation that the plan sponsor may choose to:
787+13 (A) apply the rebates to reduce premiums for all covered
788+14 individuals; or
789+15 (B) calculate defined cost sharing for a covered individual at
790+16 the point of sale based on a price that is reduced by an
791+17 amount equal to at least eighty-five percent (85%) of all
792+18 rebates received or estimated to be received by the insurer
793+19 concerning the dispensing or administration of the covered
794+20 individual's prescription drugs.
795+21 (3) An explanation that, in the individual market, IC 27-1-49
796+22 requires that covered individual defined cost sharing be calculated
797+23 at the point of sale based on a price that is reduced by at least
798+24 eighty-five percent (85%) of the rebates concerning the
799+25 dispensing or administration of the covered individual's
800+26 prescription drugs.
801+27 SECTION 11. IC 27-1-50-12, AS ADDED BY P.L.166-2023,
802+28 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
803+29 JULY 1, 2024]: Sec. 12. (a) The department may enforce the
804+30 requirements of this chapter to the extent permissible under applicable
805+31 law.
806+32 (b) A violation of this chapter is an unfair or deceptive act or
807+33 practice in the business of insurance under IC 27-4-1-4.
808+34 (c) The department may adopt rules under IC 4-22-2 that:
809+35 (1) provide for the enforcement of this chapter; and
810+36 (2) set forth fines for violations of this chapter.
811+37 SECTION 12. IC 27-2-28-1, AS ADDED BY P.L.226-2023,
812+38 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
813+39 JUNE 30, 2024]: Sec. 1. (a) This chapter applies to a personal
814+40 automobile or homeowner's policy that is issued, delivered, amended,
815+41 or renewed after June 30, 2024. 2025.
816+42 (b) This chapter does not apply to notices required by the federal
817+EH 1332—LS 6979/DI 55 19
818+1 Fair Credit Reporting Act (15 U.S.C. 1681 et seq.).
819+2 SECTION 13. IC 27-4-1-4, AS AMENDED BY P.L.56-2023,
820+3 SECTION 244, IS AMENDED TO READ AS FOLLOWS
821+4 [EFFECTIVE JULY 1, 2024]: Sec. 4. (a) The following are hereby
822+5 defined as unfair methods of competition and unfair and deceptive acts
823+6 and practices in the business of insurance:
824+7 (1) Making, issuing, circulating, or causing to be made, issued, or
825+8 circulated, any estimate, illustration, circular, or statement:
826+9 (A) misrepresenting the terms of any policy issued or to be
827+10 issued or the benefits or advantages promised thereby or the
828+11 dividends or share of the surplus to be received thereon;
829+12 (B) making any false or misleading statement as to the
830+13 dividends or share of surplus previously paid on similar
831+14 policies;
832+15 (C) making any misleading representation or any
833+16 misrepresentation as to the financial condition of any insurer,
834+17 or as to the legal reserve system upon which any life insurer
835+18 operates;
836+19 (D) using any name or title of any policy or class of policies
837+20 misrepresenting the true nature thereof; or
838+21 (E) making any misrepresentation to any policyholder insured
839+22 in any company for the purpose of inducing or tending to
840+23 induce such policyholder to lapse, forfeit, or surrender the
841+24 policyholder's insurance.
842+25 (2) Making, publishing, disseminating, circulating, or placing
843+26 before the public, or causing, directly or indirectly, to be made,
844+27 published, disseminated, circulated, or placed before the public,
845+28 in a newspaper, magazine, or other publication, or in the form of
846+29 a notice, circular, pamphlet, letter, or poster, or over any radio or
847+30 television station, or in any other way, an advertisement,
848+31 announcement, or statement containing any assertion,
849+32 representation, or statement with respect to any person in the
850+33 conduct of the person's insurance business, which is untrue,
851+34 deceptive, or misleading.
852+35 (3) Making, publishing, disseminating, or circulating, directly or
853+36 indirectly, or aiding, abetting, or encouraging the making,
854+37 publishing, disseminating, or circulating of any oral or written
855+38 statement or any pamphlet, circular, article, or literature which is
856+39 false, or maliciously critical of or derogatory to the financial
857+40 condition of an insurer, and which is calculated to injure any
858+41 person engaged in the business of insurance.
859+42 (4) Entering into any agreement to commit, or individually or by
860+EH 1332—LS 6979/DI 55 20
861+1 a concerted action committing any act of boycott, coercion, or
862+2 intimidation resulting or tending to result in unreasonable
863+3 restraint of, or a monopoly in, the business of insurance.
864+4 (5) Filing with any supervisory or other public official, or making,
865+5 publishing, disseminating, circulating, or delivering to any person,
866+6 or placing before the public, or causing directly or indirectly, to
867+7 be made, published, disseminated, circulated, delivered to any
868+8 person, or placed before the public, any false statement of
869+9 financial condition of an insurer with intent to deceive. Making
870+10 any false entry in any book, report, or statement of any insurer
871+11 with intent to deceive any agent or examiner lawfully appointed
872+12 to examine into its condition or into any of its affairs, or any
873+13 public official to which such insurer is required by law to report,
874+14 or which has authority by law to examine into its condition or into
875+15 any of its affairs, or, with like intent, willfully omitting to make a
876+16 true entry of any material fact pertaining to the business of such
877+17 insurer in any book, report, or statement of such insurer.
878+18 (6) Issuing or delivering or permitting agents, officers, or
879+19 employees to issue or deliver, agency company stock or other
880+20 capital stock, or benefit certificates or shares in any common law
881+21 corporation, or securities or any special or advisory board
882+22 contracts or other contracts of any kind promising returns and
883+23 profits as an inducement to insurance.
884+24 (7) Making or permitting any of the following:
885+25 (A) Unfair discrimination between individuals of the same
886+26 class and equal expectation of life in the rates or assessments
887+27 charged for any contract of life insurance or of life annuity or
888+28 in the dividends or other benefits payable thereon, or in any
889+29 other of the terms and conditions of such contract. However,
890+30 in determining the class, consideration may be given to the
891+31 nature of the risk, plan of insurance, the actual or expected
892+32 expense of conducting the business, or any other relevant
893+33 factor.
894+34 (B) Unfair discrimination between individuals of the same
895+35 class involving essentially the same hazards in the amount of
896+36 premium, policy fees, assessments, or rates charged or made
897+37 for any policy or contract of accident or health insurance or in
898+38 the benefits payable thereunder, or in any of the terms or
899+39 conditions of such contract, or in any other manner whatever.
900+40 However, in determining the class, consideration may be given
901+41 to the nature of the risk, the plan of insurance, the actual or
902+42 expected expense of conducting the business, or any other
903+EH 1332—LS 6979/DI 55 21
904+1 relevant factor.
905+2 (C) Excessive or inadequate charges for premiums, policy
906+3 fees, assessments, or rates, or making or permitting any unfair
907+4 discrimination between persons of the same class involving
908+5 essentially the same hazards, in the amount of premiums,
909+6 policy fees, assessments, or rates charged or made for:
910+7 (i) policies or contracts of reinsurance or joint reinsurance,
911+8 or abstract and title insurance;
912+9 (ii) policies or contracts of insurance against loss or damage
913+10 to aircraft, or against liability arising out of the ownership,
914+11 maintenance, or use of any aircraft, or of vessels or craft,
915+12 their cargoes, marine builders' risks, marine protection and
916+13 indemnity, or other risks commonly insured under marine,
917+14 as distinguished from inland marine, insurance; or
918+15 (iii) policies or contracts of any other kind or kinds of
919+16 insurance whatsoever.
920+17 However, nothing contained in clause (C) shall be construed to
921+18 apply to any of the kinds of insurance referred to in clauses (A)
922+19 and (B) nor to reinsurance in relation to such kinds of insurance.
923+20 Nothing in clause (A), (B), or (C) shall be construed as making or
924+21 permitting any excessive, inadequate, or unfairly discriminatory
925+22 charge or rate or any charge or rate determined by the department
926+23 or commissioner to meet the requirements of any other insurance
927+24 rate regulatory law of this state.
928+25 (8) Except as otherwise expressly provided by IC 27-1-47 or
929+26 another law, knowingly permitting or offering to make or making
930+27 any contract or policy of insurance of any kind or kinds
931+28 whatsoever, including but not in limitation, life annuities, or
932+29 agreement as to such contract or policy other than as plainly
933+30 expressed in such contract or policy issued thereon, or paying or
934+31 allowing, or giving or offering to pay, allow, or give, directly or
935+32 indirectly, as inducement to such insurance, or annuity, any rebate
936+33 of premiums payable on the contract, or any special favor or
937+34 advantage in the dividends, savings, or other benefits thereon, or
938+35 any valuable consideration or inducement whatever not specified
939+36 in the contract or policy; or giving, or selling, or purchasing or
940+37 offering to give, sell, or purchase as inducement to such insurance
941+38 or annuity or in connection therewith, any stocks, bonds, or other
942+39 securities of any insurance company or other corporation,
943+40 association, limited liability company, or partnership, or any
944+41 dividends, savings, or profits accrued thereon, or anything of
945+42 value whatsoever not specified in the contract. Nothing in this
946+EH 1332—LS 6979/DI 55 22
947+1 subdivision and subdivision (7) shall be construed as including
948+2 within the definition of discrimination or rebates any of the
949+3 following practices:
950+4 (A) Paying bonuses to policyholders or otherwise abating their
951+5 premiums in whole or in part out of surplus accumulated from
952+6 nonparticipating insurance, so long as any such bonuses or
953+7 abatement of premiums are fair and equitable to policyholders
954+8 and for the best interests of the company and its policyholders.
955+9 (B) In the case of life insurance policies issued on the
956+10 industrial debit plan, making allowance to policyholders who
957+11 have continuously for a specified period made premium
958+12 payments directly to an office of the insurer in an amount
959+13 which fairly represents the saving in collection expense.
960+14 (C) Readjustment of the rate of premium for a group insurance
961+15 policy based on the loss or expense experience thereunder, at
962+16 the end of the first year or of any subsequent year of insurance
963+17 thereunder, which may be made retroactive only for such
964+18 policy year.
965+19 (D) Paying by an insurer or insurance producer thereof duly
966+20 licensed as such under the laws of this state of money,
967+21 commission, or brokerage, or giving or allowing by an insurer
968+22 or such licensed insurance producer thereof anything of value,
969+23 for or on account of the solicitation or negotiation of policies
970+24 or other contracts of any kind or kinds, to a broker, an
971+25 insurance producer, or a solicitor duly licensed under the laws
972+26 of this state, but such broker, insurance producer, or solicitor
973+27 receiving such consideration shall not pay, give, or allow
974+28 credit for such consideration as received in whole or in part,
975+29 directly or indirectly, to the insured by way of rebate.
976+30 (9) Requiring, as a condition precedent to loaning money upon the
977+31 security of a mortgage upon real property, that the owner of the
978+32 property to whom the money is to be loaned negotiate any policy
979+33 of insurance covering such real property through a particular
980+34 insurance producer or broker or brokers. However, this
981+35 subdivision shall not prevent the exercise by any lender of the
982+36 lender's right to approve or disapprove of the insurance company
983+37 selected by the borrower to underwrite the insurance.
984+38 (10) Entering into any contract, combination in the form of a trust
985+39 or otherwise, or conspiracy in restraint of commerce in the
986+40 business of insurance.
987+41 (11) Monopolizing or attempting to monopolize or combining or
988+42 conspiring with any other person or persons to monopolize any
989+EH 1332—LS 6979/DI 55 23
990+1 part of commerce in the business of insurance. However,
991+2 participation as a member, director, or officer in the activities of
992+3 any nonprofit organization of insurance producers or other
993+4 workers in the insurance business shall not be interpreted, in
994+5 itself, to constitute a combination in restraint of trade or as
995+6 combining to create a monopoly as provided in this subdivision
996+7 and subdivision (10). The enumeration in this chapter of specific
997+8 unfair methods of competition and unfair or deceptive acts and
998+9 practices in the business of insurance is not exclusive or
999+10 restrictive or intended to limit the powers of the commissioner or
1000+11 department or of any court of review under section 8 of this
1001+12 chapter.
1002+13 (12) Requiring as a condition precedent to the sale of real or
1003+14 personal property under any contract of sale, conditional sales
1004+15 contract, or other similar instrument or upon the security of a
1005+16 chattel mortgage, that the buyer of such property negotiate any
1006+17 policy of insurance covering such property through a particular
1007+18 insurance company, insurance producer, or broker or brokers.
1008+19 However, this subdivision shall not prevent the exercise by any
1009+20 seller of such property or the one making a loan thereon of the
1010+21 right to approve or disapprove of the insurance company selected
1011+22 by the buyer to underwrite the insurance.
1012+23 (13) Issuing, offering, or participating in a plan to issue or offer,
1013+24 any policy or certificate of insurance of any kind or character as
1014+25 an inducement to the purchase of any property, real, personal, or
1015+26 mixed, or services of any kind, where a charge to the insured is
1016+27 not made for and on account of such policy or certificate of
1017+28 insurance. However, this subdivision shall not apply to any of the
1018+29 following:
1019+30 (A) Insurance issued to credit unions or members of credit
1020+31 unions in connection with the purchase of shares in such credit
1021+32 unions.
1022+33 (B) Insurance employed as a means of guaranteeing the
1023+34 performance of goods and designed to benefit the purchasers
1024+35 or users of such goods.
1025+36 (C) Title insurance.
1026+37 (D) Insurance written in connection with an indebtedness and
1027+38 intended as a means of repaying such indebtedness in the
1028+39 event of the death or disability of the insured.
1029+40 (E) Insurance provided by or through motorists service clubs
1030+41 or associations.
1031+42 (F) Insurance that is provided to the purchaser or holder of an
1032+EH 1332—LS 6979/DI 55 24
1033+1 air transportation ticket and that:
1034+2 (i) insures against death or nonfatal injury that occurs during
1035+3 the flight to which the ticket relates;
1036+4 (ii) insures against personal injury or property damage that
1037+5 occurs during travel to or from the airport in a common
1038+6 carrier immediately before or after the flight;
1039+7 (iii) insures against baggage loss during the flight to which
1040+8 the ticket relates; or
1041+9 (iv) insures against a flight cancellation to which the ticket
1042+10 relates.
1043+11 (14) Refusing, because of the for-profit status of a hospital or
1044+12 medical facility, to make payments otherwise required to be made
1045+13 under a contract or policy of insurance for charges incurred by an
1046+14 insured in such a for-profit hospital or other for-profit medical
1047+15 facility licensed by the Indiana department of health.
1048+16 (15) Refusing to insure an individual, refusing to continue to issue
1049+17 insurance to an individual, limiting the amount, extent, or kind of
1050+18 coverage available to an individual, or charging an individual a
1051+19 different rate for the same coverage, solely because of that
1052+20 individual's blindness or partial blindness, except where the
1053+21 refusal, limitation, or rate differential is based on sound actuarial
1054+22 principles or is related to actual or reasonably anticipated
1055+23 experience.
1056+24 (16) Committing or performing, with such frequency as to
1057+25 indicate a general practice, unfair claim settlement practices (as
1058+26 defined in section 4.5 of this chapter).
1059+27 (17) Between policy renewal dates, unilaterally canceling an
1060+28 individual's coverage under an individual or group health
1061+29 insurance policy solely because of the individual's medical or
1062+30 physical condition.
1063+31 (18) Using a policy form or rider that would permit a cancellation
1064+32 of coverage as described in subdivision (17).
1065+33 (19) Violating IC 27-1-22-25, IC 27-1-22-26, or IC 27-1-22-26.1
1066+34 concerning motor vehicle insurance rates.
1067+35 (20) Violating IC 27-8-21-2 concerning advertisements referring
1068+36 to interest rate guarantees.
1069+37 (21) Violating IC 27-8-24.3 concerning insurance and health plan
1070+38 coverage for victims of abuse.
1071+39 (22) Violating IC 27-8-26 concerning genetic screening or testing.
1072+40 (23) Violating IC 27-1-15.6-3(b) concerning licensure of
1073+41 insurance producers.
1074+42 (24) Violating IC 27-1-38 concerning depository institutions.
1075+EH 1332—LS 6979/DI 55 25
1076+1 (25) Violating IC 27-8-28-17(c) or IC 27-13-10-8(c) concerning
1077+2 the resolution of an appealed grievance decision.
1078+3 (26) Violating IC 27-8-5-2.5(e) through IC 27-8-5-2.5(j) (expired
1079+4 July 1, 2007, and removed) or IC 27-8-5-19.2 (expired July 1,
1080+5 2007, and repealed).
1081+6 (27) Violating IC 27-2-21 concerning use of credit information.
1082+7 (28) Violating IC 27-4-9-3 concerning recommendations to
1083+8 consumers.
1084+9 (29) Engaging in dishonest or predatory insurance practices in
1085+10 marketing or sales of insurance to members of the United States
1086+11 Armed Forces as:
1087+12 (A) described in the federal Military Personnel Financial
1088+13 Services Protection Act, P.L.109-290; or
1089+14 (B) defined in rules adopted under subsection (b).
1090+15 (30) Violating IC 27-8-19.8-20.1 concerning stranger originated
1091+16 life insurance.
1092+17 (31) Violating IC 27-2-22 concerning retained asset accounts.
1093+18 (32) Violating IC 27-8-5-29 concerning health plans offered
1094+19 through a health benefit exchange (as defined in IC 27-19-2-8).
1095+20 (33) Violating a requirement of the federal Patient Protection and
1096+21 Affordable Care Act (P.L. 111-148), as amended by the federal
1097+22 Health Care and Education Reconciliation Act of 2010 (P.L.
1098+23 111-152), that is enforceable by the state.
1099+24 (34) After June 30, 2015, violating IC 27-2-23 concerning
1100+25 unclaimed life insurance, annuity, or retained asset account
1101+26 benefits.
1102+27 (35) Willfully violating IC 27-1-12-46 concerning a life insurance
1103+28 policy or certificate described in IC 27-1-12-46(a).
1104+29 (36) Violating IC 27-1-37-7 concerning prohibiting the disclosure
1105+30 of health care service claims data.
1106+31 (37) Violating IC 27-4-10-10 concerning virtual claims payments.
1107+32 (38) Violating IC 27-1-24.5 concerning pharmacy benefit
1108+33 managers.
1109+34 (39) Violating IC 27-7-17-16 or IC 27-7-17-17 concerning the
1110+35 marketing of travel insurance policies.
1111+36 (40) Violating IC 27-1-49 concerning individual prescription
1112+37 drug rebates.
1113+38 (41) Violating IC 27-1-50 concerning group prescription drug
1114+39 rebates.
1115+40 (b) Except with respect to federal insurance programs under
1116+41 Subchapter III of Chapter 19 of Title 38 of the United States Code, the
1117+42 commissioner may, consistent with the federal Military Personnel
1118+EH 1332—LS 6979/DI 55 26
1119+1 Financial Services Protection Act (10 U.S.C. 992 note), adopt rules
1120+2 under IC 4-22-2 to:
1121+3 (1) define; and
1122+4 (2) while the members are on a United States military installation
1123+5 or elsewhere in Indiana, protect members of the United States
1124+6 Armed Forces from;
1125+7 dishonest or predatory insurance practices.
1126+8 SECTION 14. IC 27-6-8-4, AS AMENDED BY P.L.52-2013,
1127+9 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1128+10 JULY 1, 2024]: Sec. 4. (a) As used in this chapter, unless otherwise
1129+11 provided:
1130+12 (1) The term "account" means any one (1) of the three (3)
1131+13 accounts created by section 5 of this chapter.
1132+14 (2) The term "association" means the Indiana Insurance Guaranty
1133+15 Association created by section 5 of this chapter.
1134+16 (3) The term "commissioner" means the commissioner of
1135+17 insurance of this state.
1136+18 (4) The term "covered claim" means an unpaid claim which arises
1137+19 out of and is within the coverage and not in excess of the
1138+20 applicable limits of an insurance policy to which this chapter
1139+21 applies issued by an insurer, if the insurer becomes an insolvent
1140+22 insurer after the effective date (January 1, 1972) of this chapter
1141+23 and (a) the claimant or insured is a resident of this state at the
1142+24 time of the insured event or (b) the property from which the claim
1143+25 arises is permanently located in this state. "Covered claim" shall
1144+26 be limited as provided in section 7 of this chapter, and shall not
1145+27 include the following:
1146+28 (A) Any amount due any reinsurer, insurer, insurance pool, or
1147+29 underwriting association, as subrogation recoveries or
1148+30 otherwise. However, a claim for any such amount, asserted
1149+31 against a person insured under a policy issued by an insurer
1150+32 which has become an insolvent insurer, which if it were not a
1151+33 claim by or for the benefit of a reinsurer, insurer, insurance
1152+34 pool or underwriting association, would be a "covered claim"
1153+35 may be filed directly with the receiver or liquidator of the
1154+36 insolvent insurer, but in no event may any such claim be
1155+37 asserted in any legal action against the insured of such
1156+38 insolvent insurer.
1157+39 (B) Any supplementary obligation including but not limited to
1158+40 adjustment fees and expenses, attorney fees and expenses,
1159+41 court costs, interest and bond premiums, whether arising as a
1160+42 policy benefit or otherwise, prior to the appointment of a
1161+EH 1332—LS 6979/DI 55 27
1162+1 liquidator.
1163+2 (C) Any unpaid claim that is filed with the association after the
1164+3 final date set by the court for the filing of claims against the
1165+4 liquidator or receiver of an insolvent insurer. For the purpose
1166+5 of filing a claim under this clause, notice of a claim to the
1167+6 liquidator of the insolvent insurer is considered to be notice to
1168+7 the association or the agent of the association and a list of
1169+8 claims must be periodically submitted to the association (or
1170+9 another state's association that is similar to the association) by
1171+10 the liquidator.
1172+11 (D) A claim that is excluded under section 11.5 of this chapter
1173+12 due to the high net worth of an insured.
1174+13 (E) Any claim by a person who directly or indirectly controls,
1175+14 is controlled, or is under common control with an insolvent
1176+15 insurer on December 31 of the year before the order of
1177+16 liquidation.
1178+17 All covered claims filed in the liquidation proceedings shall be
1179+18 referred immediately to the association by the liquidator for
1180+19 processing as provided in this chapter.
1181+20 (5) The term "high net worth insured" means the following:
1182+21 (A) For purposes of section 11.5(a) of this chapter, an insured
1183+22 that has a net worth (including the aggregate net worth of the
1184+23 insured and all subsidiaries and affiliates of the insured,
1185+24 calculated on a consolidated basis) that exceeds twenty-five
1186+25 million dollars ($25,000,000) on December 31 of the year
1187+26 immediately preceding the year in which the insurer becomes
1188+27 an insolvent insurer.
1189+28 (B) For purposes of section 11.5(b) of this chapter, an insured
1190+29 that has a net worth (including the aggregate net worth of the
1191+30 insured and all subsidiaries and affiliates of the insured,
1192+31 calculated on a consolidated basis) that exceeds fifty million
1193+32 dollars ($50,000,000) on December 31 of the year immediately
1194+33 preceding the year in which the insurer becomes an insolvent
1195+34 insurer.
1196+35 (6) The term "insolvent insurer" means (a) a member insurer
1197+36 holding a valid certificate of authority to transact insurance in this
1198+37 state either at the time the policy was issued or when the insured
1199+38 event occurred and (b) against whom a final order of liquidation,
1200+39 with a finding of insolvency, to which there is no further right of
1201+40 appeal, has been entered by a court of competent jurisdiction in
1202+41 the company's state of domicile. "Insolvent insurer" shall not be
1203+42 construed to mean an insurer with respect to which an order,
1204+EH 1332—LS 6979/DI 55 28
1205+1 decree, judgment or finding of insolvency whether preliminary or
1206+2 temporary in nature or order to rehabilitation or conservation has
1207+3 been issued by any court of competent jurisdiction prior to
1208+4 January 1, 1972 or which is adjudicated to have been insolvent
1209+5 prior to that date.
1210+6 (7) The term "member insurer" means any person who is licensed
1211+7 or holds a certificate of authority under IC 27-1-6-18 or
1212+8 IC 27-1-17-1 to transact in Indiana any kind of insurance for
1213+9 which coverage is provided under section 3 of this chapter,
1214+10 including the exchange of reciprocal or inter-insurance contracts.
1215+11 The term includes any insurer whose license or certificate of
1216+12 authority to transact such insurance in Indiana may have been
1217+13 suspended, revoked, not renewed, or voluntarily surrendered. A
1218+14 "member insurer" does not include farm mutual insurance
1219+15 companies organized and operating pursuant to IC 27-5.1 other
1220+16 than a company to which IC 27-5.1-2-6 applies.
1221+17 (8) The term "net direct written premiums" means direct gross
1222+18 premiums written in this state on insurance policies to which this
1223+19 chapter applies, less return premiums thereon and dividends paid
1224+20 or credited to policyholders on such direct business. "Net direct
1225+21 premiums written" does not include premiums on contracts
1226+22 between insurers or reinsurers.
1227+23 (9) The term "person" means an individual, an aggregation of
1228+24 individuals, a corporation, a partnership, or another entity.
1229+25 (b) Notwithstanding any other provision in this chapter, an
1230+26 insurance policy that is issued by a member insurer and later
1231+27 allocated, transferred, assumed by, or otherwise made the sole
1232+28 responsibility of another insurer, pursuant to a state statute
1233+29 providing for the division of an insurance company or the statutory
1234+30 assumption or transfer of designated policies and under which
1235+31 there is no remaining obligation to the transferring entity, shall be
1236+32 considered to have been issued by a member insurer which is an
1237+33 insolvent insurer for the purposes of this chapter in the event that
1238+34 the insurer to which the policy has been allocated, transferred,
1239+35 assumed by, or otherwise made the sole responsibility of is placed
1240+36 in liquidation.
1241+37 (c) An insurance policy that was issued by a nonmember insurer
1242+38 and later allocated, transferred, assumed by, or otherwise made
1243+39 the sole responsibility of a member insurer under a state statute
1244+40 shall not be considered to have been issued by a member insurer
1245+41 for the purposes of this chapter.
1246+42 SECTION 15. IC 27-6-8-5, AS AMENDED BY P.L.52-2013,
1247+EH 1332—LS 6979/DI 55 29
1248+1 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1249+2 JULY 1, 2024]: Sec. 5. There is created a nonprofit unincorporated
1250+3 legal entity to be known as the Indiana Insurance Guaranty Association
1251+4 (referred to in this chapter as the "association"). All insurers defined as
1252+5 member insurers in section 4(7) 4(a)(7) of this chapter shall be and
1253+6 remain members of the association as a condition of their authority to
1254+7 transact insurance in this state. The association shall perform its
1255+8 functions under a plan of operation established and approved under
1256+9 section 8 of this chapter and shall exercise its powers through a board
1257+10 of directors established under section 6 of this chapter. For purposes of
1258+11 administration and assessment, the association shall be divided into
1259+12 three (3) separate accounts:
1260+13 (1) The worker's compensation insurance account.
1261+14 (2) The automobile insurance account.
1262+15 (3) The account for all other insurance to which this chapter
1263+16 applies.
1264+17 SECTION 16. IC 27-6-8-11.5, AS ADDED BY P.L.52-2013,
1265+18 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1266+19 JULY 1, 2024]: Sec. 11.5. (a) The association is not obligated to pay
1267+20 a first party claim by a high net worth insured described in section
1268+21 4(5)(A) 4(a)(5)(A) of this chapter.
1269+22 (b) The association has the right to recover from a high net worth
1270+23 insured described in section 4(5)(B) 4(a)(5)(B) of this chapter all
1271+24 amounts paid by the association to or on behalf of the high net worth
1272+25 insured, regardless of whether the amounts were paid for indemnity,
1273+26 defense, or otherwise.
1274+27 (c) The association is not obligated to pay a claim that:
1275+28 (1) would otherwise be a covered claim;
1276+29 (2) is an obligation to or on behalf of a person who has a net
1277+30 worth greater than the net worth allowed by the insurance
1278+31 guaranty association law of the state of residence of the claimant
1279+32 at the time specified by the applicable law of the state of
1280+33 residence of the claimant; and
1281+34 (3) has been denied by the association of the state of residence of
1282+35 the claimant on the basis described in subdivision (2).
1283+36 (d) The association shall establish reasonable procedures, subject to
1284+37 the approval of the commissioner, for requesting financial information
1285+38 from insureds:
1286+39 (1) on a confidential basis; and
1287+40 (2) in the application of this section.
1288+41 (e) The procedures established under subsection (d) must provide
1289+42 for sharing of the financial information obtained from insureds with:
1290+EH 1332—LS 6979/DI 55 30
1291+1 (1) any other association that is similar to the association; and
1292+2 (2) the liquidator for an insolvent insurer;
1293+3 on the same confidential basis.
1294+4 (f) If an insured refuses to provide financial information that is:
1295+5 (1) requested under the procedures established under subsection
1296+6 (d); and
1297+7 (2) available;
1298+8 the association may, until the time that the financial information is
1299+9 provided to the association, consider the insured to be a high net worth
1300+10 insured for purposes of subsections (a) and (b).
1301+11 (g) In an action contesting the applicability of this section to an
1302+12 insured that refuses to provide financial information under the
1303+13 procedures established under subsection (d), the insured bears the
1304+14 burden of proof concerning the insured's net worth at the relevant time.
1305+15 If the insured fails to prove that the insured's net worth at the relevant
1306+16 time was less than the applicable amount set forth in section 4(5)(A) or
1307+17 4(5)(B) 4(a)(5)(A) or 4(a)(5)(B) of this chapter, the court shall award
1308+18 to the association the association's full costs, expenses, and reasonable
1309+19 attorney's fees incurred in contesting the claim.
1310+20 SECTION 17. IC 27-8-11-7, AS AMENDED BY P.L.190-2023,
1311+21 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1312+22 JULY 1, 2024]: Sec. 7. (a) This section applies to an insurer that issues
1313+23 or administers a policy that provides coverage for basic health care
1314+24 services (as defined in IC 27-13-1-4).
1315+25 (b) As used in this section, "clean credentialing application" means
1316+26 an application for network participation that:
1317+27 (1) is submitted by a provider under this section;
1318+28 (2) does not contain an error; and
1319+29 (3) may be processed by the insurer without returning the
1320+30 application to the provider for a revision or clarification.
1321+31 (c) As used in this section, "credentialing" means a process by
1322+32 which an insurer makes a determination that:
1323+33 (1) is based on criteria established by the insurer; and
1324+34 (2) concerns whether a provider is eligible to:
1325+35 (A) provide health services to an individual eligible for
1326+36 coverage; and
1327+37 (B) receive reimbursement for the health services;
1328+38 under an agreement that is entered into between the provider and
1329+39 the insurer.
1330+40 (d) As used in this section, "unclean credentialing application"
1331+41 means an application for network participation that:
1332+42 (1) is submitted by a provider under this section;
1333+EH 1332—LS 6979/DI 55 31
1334+1 (2) contains at least one (1) error; and
1335+2 (3) must be returned to the provider to correct the error.
1336+3 (e) The department of insurance shall prescribe the credentialing
1337+4 application form used by the Council for Affordable Quality Healthcare
1338+5 (CAQH) in electronic or paper format, which must be used by:
1339+6 (1) a provider who applies for credentialing by an insurer; and
1340+7 (2) an insurer that performs credentialing activities.
1341+8 (f) An insurer shall notify a provider concerning a deficiency on a
1342+9 completed unclean credentialing application form submitted by the
1343+10 provider not later than five (5) business days after the entity receives
1344+11 the completed unclean credentialing application form. A notice
1345+12 described in this subsection must:
1346+13 (1) provide a description of the deficiency; and
1347+14 (2) state the reason why the application was determined to be an
1348+15 unclean credentialing application.
1349+16 (g) A provider shall respond to the notification required under
1350+17 subsection (f) not later than five (5) business days after receipt of the
1351+18 notice.
1352+19 (h) An insurer shall notify a provider concerning the status of the
1353+20 provider's completed clean credentialing application when:
1354+21 (1) the provider is provisionally credentialed; and
1355+22 (2) the insurer makes a final credentialing determination
1356+23 concerning the provider.
1357+24 (i) If the insurer fails to issue a credentialing determination within
1358+25 fifteen (15) business days after receiving a completed clean
1359+26 credentialing application form from a provider, the insurer shall
1360+27 provisionally credential the provider in accordance with the standards
1361+28 and guidelines governing provisional credentialing from the National
1362+29 Committee for Quality Assurance or its successor organization. The
1363+30 provisional credentialing license is valid until a determination is made
1364+31 on the credentialing application of the provider.
1365+32 (j) Once an insurer fully credentials a provider that holds
1366+33 provisional credentialing and a network provider agreement has been
1367+34 executed, then reimbursement payments under the contract shall be
1368+35 paid retroactive to the date the provider was provisionally credentialed.
1369+36 The insurer shall reimburse the provider at the rates determined by the
1370+37 contract between the provider and the insurer.
1371+38 (k) If an insurer does not fully credential a provider that is
1372+39 provisionally credentialed under subsection (i), the provisional
1373+40 credentialing is terminated on the date the insurer notifies the provider
1374+41 of the adverse credentialing determination. The insurer is not required
1375+42 to reimburse for services rendered while the provider was provisionally
1376+EH 1332—LS 6979/DI 55 32
1377+1 credentialed.
1378+2 SECTION 18. IC 27-13-43-2, AS AMENDED BY P.L.190-2023,
1379+3 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1380+4 JULY 1, 2024]: Sec. 2. (a) As used in this section, "clean credentialing
1381+5 application" means an application for network participation that:
1382+6 (1) is submitted by a provider under this section;
1383+7 (2) does not contain an error; and
1384+8 (3) may be processed by the health maintenance organization
1385+9 without returning the application to the provider for a revision or
1386+10 clarification.
1387+11 (b) As used in this section, "credentialing" means a process by
1388+12 which a health maintenance organization makes a determination that:
1389+13 (1) is based on criteria established by the health maintenance
1390+14 organization; and
1391+15 (2) concerns whether a provider is eligible to:
1392+16 (A) provide health services to an individual eligible for
1393+17 coverage; and
1394+18 (B) receive reimbursement for the health services;
1395+19 under an agreement that is entered into between the provider and
1396+20 the health maintenance organization.
1397+21 (c) As used in this section, "unclean credentialing application"
1398+22 means an application for network participation that:
1399+23 (1) is submitted by a provider under this section;
1400+24 (2) contains at least one (1) error; and
1401+25 (3) must be returned to the provider to correct the error.
1402+26 (d) The department shall prescribe the credentialing application
1403+27 form used by the Council for Affordable Quality Healthcare (CAQH)
1404+28 in electronic or paper format. The form must be used by:
1405+29 (1) a provider who applies for credentialing by a health
1406+30 maintenance organization; and
1407+31 (2) a health maintenance organization that performs credentialing
1408+32 activities.
1409+33 (e) A health maintenance organization shall notify a provider
1410+34 concerning a deficiency on a completed unclean credentialing
1411+35 application form submitted by the provider not later than five (5)
1412+36 business days after the entity receives the completed unclean
1413+37 credentialing application form. A notice described in this subsection
1414+38 must:
1415+39 (1) provide a description of the deficiency; and
1416+40 (2) state the reason why the application was determined to be an
1417+41 unclean credentialing application.
1418+42 (f) A provider shall respond to the notification required under
1419+EH 1332—LS 6979/DI 55 33
1420+1 subsection (e) not later than five (5) business days after receipt of the
1421+2 notice.
1422+3 (g) A health maintenance organization shall notify a provider
1423+4 concerning the status of the provider's completed clean credentialing
1424+5 application when:
1425+6 (1) the provider is provisionally credentialed; and
1426+7 (2) the health maintenance organization makes a final
1427+8 credentialing determination concerning the provider.
1428+9 (h) If the health maintenance organization fails to issue a
1429+10 credentialing determination within fifteen (15) business days after
1430+11 receiving a completed clean credentialing application form from a
1431+12 provider, the health maintenance organization shall provisionally
1432+13 credential the provider in accordance with the standards and guidelines
1433+14 governing provisional credentialing from the National Committee for
1434+15 Quality Assurance or its successor organization. The provisional
1435+16 credentialing license is valid until a determination is made on the
1436+17 credentialing application of the provider.
1437+18 (i) Once a health maintenance organization fully credentials a
1438+19 provider that holds provisional credentialing and a network provider
1439+20 agreement has been executed, then reimbursement payments under the
1440+21 contract shall be paid retroactive to the date the provider was
1441+22 provisionally credentialed. The health maintenance organization shall
1442+23 reimburse the provider at the rates determined by the contract between
1443+24 the provider and the health maintenance organization.
1444+25 (j) If a health maintenance organization does not fully credential a
1445+26 provider that is provisionally credentialed under subsection (h), the
1446+27 provisional credentialing is terminated on the date the health
1447+28 maintenance organization notifies the provider of the adverse
1448+29 credentialing determination. The health maintenance organization is
1449+30 not required to reimburse for services rendered while the provider was
1450+31 provisionally credentialed.
1451+EH 1332—LS 6979/DI 55 34
1452+COMMITTEE REPORT
1453+Mr. Speaker: Your Committee on Insurance, to which was referred
1454+House Bill 1332, has had the same under consideration and begs leave
1455+to report the same back to the House with the recommendation that said
1456+bill be amended as follows:
1457+Page 1, delete lines 1 through 17, begin a new paragraph and insert:
1458+"SECTION 1. IC 24-15-1-1, AS ADDED BY P.L.94-2023,
7611459 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
762-JULY 1, 2024]: Sec. 20. (a) The commissioner shall do the following:
763-(1) Prescribe an application for use in applying for a license to
764-operate as a pharmacy benefit manager.
765-(2) Adopt rules under IC 4-22-2 to establish the following:
766-(A) Pharmacy benefit manager licensing requirements.
767-HEA 1332 — CC 1 19
768-(B) Licensing fees.
769-(C) A license application.
770-(D) Financial standards for pharmacy benefit managers.
771-(E) Reporting requirements described in section sections 21
772-and 29 of this chapter.
773-(F) The time frame for the resolution of an appeal under
774-section 22 of this chapter.
775-(b) The commissioner may do the following:
776-(1) Charge a license application fee and renewal fees established
777-under subsection (a)(2) in an amount not to exceed five hundred
778-dollars ($500) to be deposited in the department of insurance fund
779-established by IC 27-1-3-28.
780-(2) Examine or audit the books and records of a pharmacy benefit
781-manager one (1) time per year to determine if the pharmacy
782-benefit manager is in compliance with this chapter.
783-(3) Adopt rules under IC 4-22-2 to:
784-(A) implement this chapter; and
785-(B) specify requirements for the following:
786-(i) Prohibited market conduct practices.
787-(ii) Data reporting in connection with violations of state law.
788-(iii) Maximum allowable cost list compliance and
789-enforcement requirements, including the requirements of
790-sections 22 and 23 of this chapter.
791-(iv) Prohibitions and limits on pharmacy benefit manager
792-practices that require licensure under IC 25-22.5.
793-(v) Pharmacy benefit manager affiliate information sharing.
794-(vi) Lists of health plans administered by a pharmacy benefit
795-manager in Indiana.
796-(c) Financial information and proprietary information submitted by
797-a pharmacy benefit manager to the department is confidential.
798-SECTION 9. IC 27-1-25-11.1, AS AMENDED BY P.L.124-2018,
799-SECTION 48, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
800-JULY 1, 2024]: Sec. 11.1. (a) If the home state of a person is Indiana,
801-the person shall:
802-(1) apply to act as an administrator in Indiana upon the uniform
803-application for third party administrator license;
804-(2) pay an application fee in an amount determined by the
805-commissioner; and
806-(3) receive a license from the commissioner;
807-before performing the function of an administrator in Indiana. The
808-commissioner shall deposit a fee paid under subdivision (2) into the
809-department of insurance fund established by IC 27-1-3-28.
810-HEA 1332 — CC 1 20
811-(b) For the purposes of this section:
812-(1) if:
813-(A) an administrator is incorporated in Indiana; or
814-(B) Indiana is the administrator's principal place of
815-business within the United States;
816-the administrator shall apply to Indiana for a resident
817-administrator license; and
818-(2) if:
819-(A) neither the state in which an administrator is
820-incorporated nor the state that is the administrator's
821-principal place of business have adopted this chapter or a
822-substantially similar law governing administrators; and
823-(B) the administrator has not designated any other state
824-that has adopted this chapter or a substantially similar law
825-governing administrators as its home state;
826-the administrator shall apply to Indiana for licensure as its
827-designated home state.
828-(b) (c) The uniform application for third party administrator license
829-must include or be accompanied by the following:
830-(1) Basic organizational documents of the applicant, including:
831-(A) articles of incorporation;
832-(B) articles of association;
833-(C) partnership agreement;
834-(D) trade name certificate;
835-(E) trust agreement;
836-(F) shareholder agreement;
837-(G) other applicable documents; and
838-(H) amendments to the documents specified in clauses (A)
839-through (G).
840-(2) Bylaws, rules, regulations, or other documents that regulate
841-the internal affairs of the applicant.
842-(3) The NAIC biographical affidavits for individuals who are
843-responsible for the conduct of affairs of the applicant, including:
844-(A) members of the applicant's:
845-(i) board of directors;
846-(ii) board of trustees;
847-(iii) executive committee; or
848-(iv) other governing board or committee;
849-(B) principal officers, if the applicant is a corporation;
850-(C) partners or members, if the applicant is:
851-(i) a partnership;
852-(ii) an association; or
853-HEA 1332 — CC 1 21
854-(iii) a limited liability company;
855-(D) shareholders or members that hold, directly or indirectly,
856-at least ten percent (10%) of the:
857-(i) voting stock;
858-(ii) voting securities; or
859-(iii) voting interest;
860-of the applicant; and
861-(E) any other person who exercises control or influence over
862-the affairs of the applicant.
863-(4) Financial information reflecting a positive net worth,
864-including:
865-(A) audited annual financial statements prepared by an
866-independent certified public accountant for the two (2) most
867-recent fiscal years; or
868-(B) if the applicant has been in business for less than two (2)
869-fiscal years, financial statements or reports that are:
870-(i) prepared in accordance with GAAP; and
871-(ii) certified by an officer of the applicant;
872-for any completed fiscal years and for any month during the
873-current fiscal year for which financial statements or reports
874-have been completed.
875-If an audited financial statement or report required under clause
876-(A) or (B) is prepared on a consolidated basis, the statement or
877-report must include a columnar consolidating or combining
878-worksheet that includes the amounts shown on the consolidated
879-audited financial statement or report, separately reported on the
880-worksheet for each entity included on the statement or report, and
881-an explanation of consolidating and eliminating entries.
882-(5) Information determined by the commissioner to be necessary
883-for a review of the current financial condition of the applicant.
884-(6) A description of the business plan of the applicant, including:
885-(A) information on staffing levels and activities proposed in
886-Indiana and nationwide; and
887-(B) details concerning the applicant's ability to provide a
888-sufficient number of experienced and qualified personnel for:
889-(i) claims processing;
890-(ii) record keeping; and
891-(iii) underwriting.
892-(7) Any other information required by the commissioner.
893-(c) (d) An administrator that applies for licensure under this section
894-shall make copies of written agreements with insurers available for
895-inspection by the commissioner.
896-HEA 1332 — CC 1 22
897-(d) (e) An administrator that applies for licensure under this section
898-shall:
899-(1) produce the administrator's accounts, records, and files for
900-examination; and
901-(2) make the administrator's officers available to provide
902-information concerning the affairs of the administrator;
903-whenever reasonably required by the commissioner.
904-(e) (f) The commissioner may refuse to issue a license under this
905-section if the commissioner determines that:
906-(1) the administrator or an individual who is responsible for the
907-conduct of the affairs of the administrator:
908-(A) is not:
909-(i) competent;
910-(ii) trustworthy;
911-(iii) financially responsible; or
912-(iv) of good personal and business reputation; or
913-(B) has had an:
914-(i) insurance certificate of authority or insurance license; or
915-(ii) administrator certificate of authority or administrator
916-license;
917-denied or revoked for cause by any jurisdiction;
918-(2) the financial information provided under subsection (b)(4)
919-(c)(4) does not reflect that the applicant has a positive net worth;
920-or
921-(3) any of the grounds set forth in section 12.4 of this chapter
922-exists with respect to the administrator.
923-(f) (g) An administrator that applies for a license under this section
924-shall immediately notify the commissioner of a material change in:
925-(1) the ownership or control of the administrator; or
926-(2) another fact or circumstance that affects the administrator's
927-qualification for a license.
928-The commissioner, upon receiving notice under this subsection, shall
929-report the change to the centralized insurance producer license registry
930-described in IC 27-1-15.6-7.
931-(g) (h) An administrator that applies for a license under this section
932-and will administer a governmental plan or a church plan shall obtain
933-a bond as required under section 4(g) of this chapter.
934-(h) (i) A license that is issued under this section is valid:
935-(1) for one (1) year after the date of issuance, unless subdivision
936-(2) applies; or
937-(2) until:
938-(A) the license is:
939-HEA 1332 — CC 1 23
940-(i) surrendered; or
941-(ii) suspended or revoked by the commissioner; or
942-(B) the administrator:
943-(i) ceases to do business in Indiana; or
944-(ii) is not in compliance with this chapter.
945-SECTION 10. IC 27-1-25-12.3, AS AMENDED BY P.L.124-2018,
946-SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
947-JULY 1, 2024]: Sec. 12.3. (a) An administrator that is licensed under
948-section 11.1 of this chapter shall, not later than July 1 of each year
949-unless the commissioner grants an extension of time for good cause,
950-file a report for the previous calendar year that complies with the
951-following:
952-(1) The report must contain financial information reflecting a
953-positive net worth prepared in accordance with section 11.1(b)(4)
954-11.1(c)(4) of this chapter.
955-(2) The report must be in the form and contain matters prescribed
956-by the commissioner.
957-(3) The report must be verified by at least two (2) officers of the
958-administrator.
959-(4) The report must include the complete names and addresses of
960-insurers with which the administrator had a written agreement
961-during the preceding fiscal year.
962-(5) The report must be accompanied by a filing fee in an amount
963-determined by the commissioner.
964-The commissioner shall collect a filing fee paid under subdivision (5)
965-and deposit the fee into the department of insurance fund established
966-by IC 27-1-3-28.
967-(b) The commissioner shall review a report filed under subsection
968-(a) not later than September 1 of the year in which the report is filed.
969-Upon completion of the review, the commissioner shall:
970-(1) issue a certification to the administrator:
971-(A) indicating that:
972-(i) the financial statement reflects a positive net worth; and
973-(ii) the administrator is currently licensed and in good
974-standing; or
975-(B) noting deficiencies found in the report; or
976-(2) update the centralized insurance producer license registry
977-described in IC 27-1-15.6-7:
978-(A) indicating that the administrator is solvent and in
979-compliance with this chapter; or
980-(B) noting deficiencies found in the report.
981-SECTION 11. IC 27-1-31-3, AS AMENDED BY P.L.196-2021,
982-HEA 1332 — CC 1 24
983-SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
984-JULY 1, 2024]: Sec. 3. (a) Except as provided in subsection (b), if an
985-insurer refuses to renew a policy of insurance written by the insurer, the
986-insurer shall mail written notice of nonrenewal to the insured:
987-(1) at least forty-five (45) days before the expiration date of the
988-policy, if the coverage provided is for one (1) year, or less; or
989-(2) at least forty-five (45) days before the anniversary date of the
990-policy, if the coverage provided is for more than one (1) year.
991-(b) This subsection does not apply to worker's compensation
992-insurance. If an insurer refuses to renew a policy of insurance
993-written by the insurer, the insurer shall mail written notice of
994-nonrenewal to the insured at least sixty (60) days before the
995-anniversary date of the policy if the coverage is provided to a
996-municipality (as defined in IC 36-1-2-11) or county entity.
997-(b) (c) A notice of nonrenewal is not required if:
998-(1) the insured is transferred from an insurer to an affiliate of the
999-insurer for future coverage; and
1000-(2) the transfer results in the same or broader coverage.
1001-SECTION 12. IC 27-1-37-9 IS ADDED TO THE INDIANA CODE
1002-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1003-1, 2024]: Sec. 9. (a) This section applies to health provider contracts
1004-entered into or renewed after June 30, 2024.
1005-(b) If a party to a health provider contract intends to terminate
1006-the contractual relationship with another party to the health
1007-provider contract, the terminating party must provide written
1008-notice to the other party of the decision to terminate the
1009-contractual relationship not less than ninety (90) days before the
1010-health provider contract terminates.
1011-SECTION 13. IC 27-1-37.1-0.5 IS ADDED TO THE INDIANA
1012-CODE AS A NEW SECTION TO READ AS FOLLOWS
1013-[EFFECTIVE JULY 1, 2024]: Sec. 0.5. This chapter does not apply
1014-to the termination of a health provider contract under
1015-IC 27-1-37-9.
1016-SECTION 14. IC 27-1-49-9, AS ADDED BY P.L.166-2023,
1017-SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1018-JULY 1, 2024]: Sec. 9. (a) The department may enforce the
1019-requirements of this chapter to the extent permissible under applicable
1020-law.
1021-(b) A violation of this chapter is an unfair or deceptive act or
1022-practice in the business of insurance under IC 27-4-1-4.
1023-(c) The department may adopt rules under IC 4-22-2 to set forth
1024-fines for violations of this chapter.
1025-HEA 1332 — CC 1 25
1026-SECTION 15. IC 27-1-50-9, AS ADDED BY P.L.166-2023,
1460+JANUARY 1, 2026]: Sec. 1. (a) This article applies to a person that
1461+conducts business in Indiana or produces products or services that are
1462+targeted to residents of Indiana and that during a calendar year:
1463+(1) controls or processes personal data of at least one hundred
1464+thousand (100,000) consumers who are Indiana residents; or
1465+(2) controls or processes personal data of at least twenty-five
1466+thousand (25,000) consumers who are Indiana residents and
1467+derives more than fifty percent (50%) of gross revenue from the
1468+sale of personal data.
1469+(b) This article does not apply to any of the following:
1470+(1) Either of the following:
1471+(A) The state, a state agency, or a body, authority, board,
1472+bureau, commission, district, or agency of any political
1473+subdivision of the state.
1474+(B) A third party under contract with an entity described in
1475+clause (A), when acting on behalf of the entity. This clause
1476+does not exempt data held or created by third parties outside
1477+of the scope of the contract with the entity.
1478+(2) Any financial institutions and affiliates, or data subject to Title
1479+V of the federal Gramm-Leach-Bliley Act (15 U.S.C. 6801 et
1480+seq.).
1481+(3) Any covered entity or business associate governed by the
1482+privacy, security, and breach notification rules issued by the
1483+United States Department of Health and Human Services (45 CFR
1484+Parts 160 and 164) pursuant to HIPAA.
1485+(4) Any nonprofit organization.
1486+(5) Any institution of higher education.
1487+(6) Any public utility (as defined in IC 8-1-2-1(a)) or service
1488+company affiliated with a public utility (as defined in
1489+IC 8-1-2-1(a)). For purposes of this subdivision, "service
1490+company" means an associate company within a holding company
1491+system organized specifically for the purpose of providing goods
1492+or services to a public utility (as defined in IC 8-1-2-1(a)) in the
1493+EH 1332—LS 6979/DI 55 35
1494+same holding company system.
1495+(7) Any organization exempt from taxation under Section
1496+501(c)(4) of the Internal Revenue Code that is:
1497+(A) established to detect or prevent insurance related
1498+crime or fraud; and
1499+(B) subject to a memorandum of understanding with a
1500+statewide law enforcement agency.".
1501+Delete pages 2 through 5.
1502+Page 6, delete lines 1 through 39.
1503+Page 22, between lines 20 and 21, begin a new paragraph and insert:
1504+"SECTION 11. IC 27-1-50-8 IS REPEALED [EFFECTIVE JULY
1505+1, 2024]. Sec. 8. An insurer shall pass through to a plan sponsor one
1506+hundred percent (100%) of all rebates concerning the dispensing or
1507+administration of prescription drugs to the covered individuals of the
1508+plan sponsor.
1509+SECTION 12. IC 27-1-50-9, AS ADDED BY P.L.166-2023,
10271510 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10281511 JULY 1, 2024]: Sec. 9. (a) At the time of contracting, an insurer shall
1029-provide only offer to plan sponsors the option of following plans:
1512+provide offer to plan sponsors the option of following plans:
10301513 (1) A plan that applies one hundred percent (100%) of the
10311514 rebates to reduce premiums for all covered individuals
10321515 equally.
10331516 (2) A plan calculating that calculates defined cost sharing for
10341517 covered individuals of the plan sponsor at the point of sale based
10351518 on a price that is reduced by some or an amount equal to at least
10361519 eighty-five percent (85%) of all of the rebates received or
10371520 estimated to be received by the insurer concerning the dispensing
10381521 or administration of the prescription drug.
10391522 (b) A plan sponsor may choose one (1) of the plans offered
10401523 under subsection (a).
1041-SECTION 16. IC 27-1-50-11, AS ADDED BY P.L.166-2023,
1524+SECTION 13. IC 27-1-50-10, AS ADDED BY P.L.166-2023,
1525+SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1526+JULY 1, 2024]: Sec. 10. Nothing in this chapter prohibits an insurer
1527+from decreasing a covered individual's defined cost sharing by an
1528+amount greater than the amount required under section 8 9 of this
1529+chapter.
1530+SECTION 14. IC 27-1-50-11, AS ADDED BY P.L.166-2023,
10421531 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10431532 JULY 1, 2024]: Sec. 11. An insurer shall disclose the following
10441533 information to a plan sponsor on at least an annual basis:
10451534 (1) The approximate amount of rebates expected to be received by
10461535 the insurer concerning the dispensing or administration of
1536+EH 1332—LS 6979/DI 55 36
10471537 prescription drugs to the covered individuals of the plan sponsor.
10481538 (2) An explanation that the plan sponsor may choose to:
10491539 (A) apply the rebates to reduce premiums for all covered
10501540 individuals; or
10511541 (B) calculate defined cost sharing for a covered individual at
10521542 the point of sale based on a price that is reduced by an
10531543 amount equal to at least eighty-five percent (85%) of all
10541544 rebates received or estimated to be received by the insurer
10551545 concerning the dispensing or administration of the covered
10561546 individual's prescription drugs.
10571547 (3) An explanation that, in the individual market, IC 27-1-49
10581548 requires that covered individual defined cost sharing be calculated
10591549 at the point of sale based on a price that is reduced by at least
10601550 eighty-five percent (85%) of the rebates concerning the
10611551 dispensing or administration of the covered individual's
1062-prescription drugs.
1063-SECTION 17. IC 27-1-50-12, AS ADDED BY P.L.166-2023,
1064-SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1065-JULY 1, 2024]: Sec. 12. (a) The department may enforce the
1066-requirements of this chapter to the extent permissible under applicable
1067-law.
1068-HEA 1332 — CC 1 26
1069-(b) A violation of this chapter is an unfair or deceptive act or
1070-practice in the business of insurance under IC 27-4-1-4.
1071-(c) The department may adopt rules under IC 4-22-2 that:
1072-(1) provide for the enforcement of this chapter; and
1073-(2) set forth fines for violations of this chapter.
1074-SECTION 18. IC 27-2-28-1, AS ADDED BY P.L.226-2023,
1552+prescription drugs.".
1553+Page 22, between lines 30 and 31, begin a new paragraph and insert:
1554+"SECTION 12. IC 27-2-28-1, AS ADDED BY P.L.226-2023,
10751555 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10761556 JUNE 30, 2024]: Sec. 1. (a) This chapter applies to a personal
10771557 automobile or homeowner's policy that is issued, delivered, amended,
10781558 or renewed after June 30, 2024. 2025.
10791559 (b) This chapter does not apply to notices required by the federal
1080-Fair Credit Reporting Act (15 U.S.C. 1681 et seq.).
1081-SECTION 19. IC 27-4-1-4, AS AMENDED BY P.L.56-2023,
1082-SECTION 244, IS AMENDED TO READ AS FOLLOWS
1083-[EFFECTIVE JULY 1, 2024]: Sec. 4. (a) The following are hereby
1084-defined as unfair methods of competition and unfair and deceptive acts
1085-and practices in the business of insurance:
1086-(1) Making, issuing, circulating, or causing to be made, issued, or
1087-circulated, any estimate, illustration, circular, or statement:
1088-(A) misrepresenting the terms of any policy issued or to be
1089-issued or the benefits or advantages promised thereby or the
1090-dividends or share of the surplus to be received thereon;
1091-(B) making any false or misleading statement as to the
1092-dividends or share of surplus previously paid on similar
1093-policies;
1094-(C) making any misleading representation or any
1095-misrepresentation as to the financial condition of any insurer,
1096-or as to the legal reserve system upon which any life insurer
1097-operates;
1098-(D) using any name or title of any policy or class of policies
1099-misrepresenting the true nature thereof; or
1100-(E) making any misrepresentation to any policyholder insured
1101-in any company for the purpose of inducing or tending to
1102-induce such policyholder to lapse, forfeit, or surrender the
1103-policyholder's insurance.
1104-(2) Making, publishing, disseminating, circulating, or placing
1105-before the public, or causing, directly or indirectly, to be made,
1106-published, disseminated, circulated, or placed before the public,
1107-in a newspaper, magazine, or other publication, or in the form of
1108-a notice, circular, pamphlet, letter, or poster, or over any radio or
1109-television station, or in any other way, an advertisement,
1110-announcement, or statement containing any assertion,
1111-HEA 1332 — CC 1 27
1112-representation, or statement with respect to any person in the
1113-conduct of the person's insurance business, which is untrue,
1114-deceptive, or misleading.
1115-(3) Making, publishing, disseminating, or circulating, directly or
1116-indirectly, or aiding, abetting, or encouraging the making,
1117-publishing, disseminating, or circulating of any oral or written
1118-statement or any pamphlet, circular, article, or literature which is
1119-false, or maliciously critical of or derogatory to the financial
1120-condition of an insurer, and which is calculated to injure any
1121-person engaged in the business of insurance.
1122-(4) Entering into any agreement to commit, or individually or by
1123-a concerted action committing any act of boycott, coercion, or
1124-intimidation resulting or tending to result in unreasonable
1125-restraint of, or a monopoly in, the business of insurance.
1126-(5) Filing with any supervisory or other public official, or making,
1127-publishing, disseminating, circulating, or delivering to any person,
1128-or placing before the public, or causing directly or indirectly, to
1129-be made, published, disseminated, circulated, delivered to any
1130-person, or placed before the public, any false statement of
1131-financial condition of an insurer with intent to deceive. Making
1132-any false entry in any book, report, or statement of any insurer
1133-with intent to deceive any agent or examiner lawfully appointed
1134-to examine into its condition or into any of its affairs, or any
1135-public official to which such insurer is required by law to report,
1136-or which has authority by law to examine into its condition or into
1137-any of its affairs, or, with like intent, willfully omitting to make a
1138-true entry of any material fact pertaining to the business of such
1139-insurer in any book, report, or statement of such insurer.
1140-(6) Issuing or delivering or permitting agents, officers, or
1141-employees to issue or deliver, agency company stock or other
1142-capital stock, or benefit certificates or shares in any common law
1143-corporation, or securities or any special or advisory board
1144-contracts or other contracts of any kind promising returns and
1145-profits as an inducement to insurance.
1146-(7) Making or permitting any of the following:
1147-(A) Unfair discrimination between individuals of the same
1148-class and equal expectation of life in the rates or assessments
1149-charged for any contract of life insurance or of life annuity or
1150-in the dividends or other benefits payable thereon, or in any
1151-other of the terms and conditions of such contract. However,
1152-in determining the class, consideration may be given to the
1153-nature of the risk, plan of insurance, the actual or expected
1154-HEA 1332 — CC 1 28
1155-expense of conducting the business, or any other relevant
1156-factor.
1157-(B) Unfair discrimination between individuals of the same
1158-class involving essentially the same hazards in the amount of
1159-premium, policy fees, assessments, or rates charged or made
1160-for any policy or contract of accident or health insurance or in
1161-the benefits payable thereunder, or in any of the terms or
1162-conditions of such contract, or in any other manner whatever.
1163-However, in determining the class, consideration may be given
1164-to the nature of the risk, the plan of insurance, the actual or
1165-expected expense of conducting the business, or any other
1166-relevant factor.
1167-(C) Excessive or inadequate charges for premiums, policy
1168-fees, assessments, or rates, or making or permitting any unfair
1169-discrimination between persons of the same class involving
1170-essentially the same hazards, in the amount of premiums,
1171-policy fees, assessments, or rates charged or made for:
1172-(i) policies or contracts of reinsurance or joint reinsurance,
1173-or abstract and title insurance;
1174-(ii) policies or contracts of insurance against loss or damage
1175-to aircraft, or against liability arising out of the ownership,
1176-maintenance, or use of any aircraft, or of vessels or craft,
1177-their cargoes, marine builders' risks, marine protection and
1178-indemnity, or other risks commonly insured under marine,
1179-as distinguished from inland marine, insurance; or
1180-(iii) policies or contracts of any other kind or kinds of
1181-insurance whatsoever.
1182-However, nothing contained in clause (C) shall be construed to
1183-apply to any of the kinds of insurance referred to in clauses (A)
1184-and (B) nor to reinsurance in relation to such kinds of insurance.
1185-Nothing in clause (A), (B), or (C) shall be construed as making or
1186-permitting any excessive, inadequate, or unfairly discriminatory
1187-charge or rate or any charge or rate determined by the department
1188-or commissioner to meet the requirements of any other insurance
1189-rate regulatory law of this state.
1190-(8) Except as otherwise expressly provided by IC 27-1-47 or
1191-another law, knowingly permitting or offering to make or making
1192-any contract or policy of insurance of any kind or kinds
1193-whatsoever, including but not in limitation, life annuities, or
1194-agreement as to such contract or policy other than as plainly
1195-expressed in such contract or policy issued thereon, or paying or
1196-allowing, or giving or offering to pay, allow, or give, directly or
1197-HEA 1332 — CC 1 29
1198-indirectly, as inducement to such insurance, or annuity, any rebate
1199-of premiums payable on the contract, or any special favor or
1200-advantage in the dividends, savings, or other benefits thereon, or
1201-any valuable consideration or inducement whatever not specified
1202-in the contract or policy; or giving, or selling, or purchasing or
1203-offering to give, sell, or purchase as inducement to such insurance
1204-or annuity or in connection therewith, any stocks, bonds, or other
1205-securities of any insurance company or other corporation,
1206-association, limited liability company, or partnership, or any
1207-dividends, savings, or profits accrued thereon, or anything of
1208-value whatsoever not specified in the contract. Nothing in this
1209-subdivision and subdivision (7) shall be construed as including
1210-within the definition of discrimination or rebates any of the
1211-following practices:
1212-(A) Paying bonuses to policyholders or otherwise abating their
1213-premiums in whole or in part out of surplus accumulated from
1214-nonparticipating insurance, so long as any such bonuses or
1215-abatement of premiums are fair and equitable to policyholders
1216-and for the best interests of the company and its policyholders.
1217-(B) In the case of life insurance policies issued on the
1218-industrial debit plan, making allowance to policyholders who
1219-have continuously for a specified period made premium
1220-payments directly to an office of the insurer in an amount
1221-which fairly represents the saving in collection expense.
1222-(C) Readjustment of the rate of premium for a group insurance
1223-policy based on the loss or expense experience thereunder, at
1224-the end of the first year or of any subsequent year of insurance
1225-thereunder, which may be made retroactive only for such
1226-policy year.
1227-(D) Paying by an insurer or insurance producer thereof duly
1228-licensed as such under the laws of this state of money,
1229-commission, or brokerage, or giving or allowing by an insurer
1230-or such licensed insurance producer thereof anything of value,
1231-for or on account of the solicitation or negotiation of policies
1232-or other contracts of any kind or kinds, to a broker, an
1233-insurance producer, or a solicitor duly licensed under the laws
1234-of this state, but such broker, insurance producer, or solicitor
1235-receiving such consideration shall not pay, give, or allow
1236-credit for such consideration as received in whole or in part,
1237-directly or indirectly, to the insured by way of rebate.
1238-(9) Requiring, as a condition precedent to loaning money upon the
1239-security of a mortgage upon real property, that the owner of the
1240-HEA 1332 — CC 1 30
1241-property to whom the money is to be loaned negotiate any policy
1242-of insurance covering such real property through a particular
1243-insurance producer or broker or brokers. However, this
1244-subdivision shall not prevent the exercise by any lender of the
1245-lender's right to approve or disapprove of the insurance company
1246-selected by the borrower to underwrite the insurance.
1247-(10) Entering into any contract, combination in the form of a trust
1248-or otherwise, or conspiracy in restraint of commerce in the
1249-business of insurance.
1250-(11) Monopolizing or attempting to monopolize or combining or
1251-conspiring with any other person or persons to monopolize any
1252-part of commerce in the business of insurance. However,
1253-participation as a member, director, or officer in the activities of
1254-any nonprofit organization of insurance producers or other
1255-workers in the insurance business shall not be interpreted, in
1256-itself, to constitute a combination in restraint of trade or as
1257-combining to create a monopoly as provided in this subdivision
1258-and subdivision (10). The enumeration in this chapter of specific
1259-unfair methods of competition and unfair or deceptive acts and
1260-practices in the business of insurance is not exclusive or
1261-restrictive or intended to limit the powers of the commissioner or
1262-department or of any court of review under section 8 of this
1263-chapter.
1264-(12) Requiring as a condition precedent to the sale of real or
1265-personal property under any contract of sale, conditional sales
1266-contract, or other similar instrument or upon the security of a
1267-chattel mortgage, that the buyer of such property negotiate any
1268-policy of insurance covering such property through a particular
1269-insurance company, insurance producer, or broker or brokers.
1270-However, this subdivision shall not prevent the exercise by any
1271-seller of such property or the one making a loan thereon of the
1272-right to approve or disapprove of the insurance company selected
1273-by the buyer to underwrite the insurance.
1274-(13) Issuing, offering, or participating in a plan to issue or offer,
1275-any policy or certificate of insurance of any kind or character as
1276-an inducement to the purchase of any property, real, personal, or
1277-mixed, or services of any kind, where a charge to the insured is
1278-not made for and on account of such policy or certificate of
1279-insurance. However, this subdivision shall not apply to any of the
1280-following:
1281-(A) Insurance issued to credit unions or members of credit
1282-unions in connection with the purchase of shares in such credit
1283-HEA 1332 — CC 1 31
1284-unions.
1285-(B) Insurance employed as a means of guaranteeing the
1286-performance of goods and designed to benefit the purchasers
1287-or users of such goods.
1288-(C) Title insurance.
1289-(D) Insurance written in connection with an indebtedness and
1290-intended as a means of repaying such indebtedness in the
1291-event of the death or disability of the insured.
1292-(E) Insurance provided by or through motorists service clubs
1293-or associations.
1294-(F) Insurance that is provided to the purchaser or holder of an
1295-air transportation ticket and that:
1296-(i) insures against death or nonfatal injury that occurs during
1297-the flight to which the ticket relates;
1298-(ii) insures against personal injury or property damage that
1299-occurs during travel to or from the airport in a common
1300-carrier immediately before or after the flight;
1301-(iii) insures against baggage loss during the flight to which
1302-the ticket relates; or
1303-(iv) insures against a flight cancellation to which the ticket
1304-relates.
1305-(14) Refusing, because of the for-profit status of a hospital or
1306-medical facility, to make payments otherwise required to be made
1307-under a contract or policy of insurance for charges incurred by an
1308-insured in such a for-profit hospital or other for-profit medical
1309-facility licensed by the Indiana department of health.
1310-(15) Refusing to insure an individual, refusing to continue to issue
1311-insurance to an individual, limiting the amount, extent, or kind of
1312-coverage available to an individual, or charging an individual a
1313-different rate for the same coverage, solely because of that
1314-individual's blindness or partial blindness, except where the
1315-refusal, limitation, or rate differential is based on sound actuarial
1316-principles or is related to actual or reasonably anticipated
1317-experience.
1318-(16) Committing or performing, with such frequency as to
1319-indicate a general practice, unfair claim settlement practices (as
1320-defined in section 4.5 of this chapter).
1321-(17) Between policy renewal dates, unilaterally canceling an
1322-individual's coverage under an individual or group health
1323-insurance policy solely because of the individual's medical or
1324-physical condition.
1325-(18) Using a policy form or rider that would permit a cancellation
1326-HEA 1332 — CC 1 32
1327-of coverage as described in subdivision (17).
1328-(19) Violating IC 27-1-22-25, IC 27-1-22-26, or IC 27-1-22-26.1
1329-concerning motor vehicle insurance rates.
1330-(20) Violating IC 27-8-21-2 concerning advertisements referring
1331-to interest rate guarantees.
1332-(21) Violating IC 27-8-24.3 concerning insurance and health plan
1333-coverage for victims of abuse.
1334-(22) Violating IC 27-8-26 concerning genetic screening or testing.
1335-(23) Violating IC 27-1-15.6-3(b) concerning licensure of
1336-insurance producers.
1337-(24) Violating IC 27-1-38 concerning depository institutions.
1338-(25) Violating IC 27-8-28-17(c) or IC 27-13-10-8(c) concerning
1339-the resolution of an appealed grievance decision.
1340-(26) Violating IC 27-8-5-2.5(e) through IC 27-8-5-2.5(j) (expired
1341-July 1, 2007, and removed) or IC 27-8-5-19.2 (expired July 1,
1342-2007, and repealed).
1343-(27) Violating IC 27-2-21 concerning use of credit information.
1344-(28) Violating IC 27-4-9-3 concerning recommendations to
1345-consumers.
1346-(29) Engaging in dishonest or predatory insurance practices in
1347-marketing or sales of insurance to members of the United States
1348-Armed Forces as:
1349-(A) described in the federal Military Personnel Financial
1350-Services Protection Act, P.L.109-290; or
1351-(B) defined in rules adopted under subsection (b).
1352-(30) Violating IC 27-8-19.8-20.1 concerning stranger originated
1353-life insurance.
1354-(31) Violating IC 27-2-22 concerning retained asset accounts.
1355-(32) Violating IC 27-8-5-29 concerning health plans offered
1356-through a health benefit exchange (as defined in IC 27-19-2-8).
1357-(33) Violating a requirement of the federal Patient Protection and
1358-Affordable Care Act (P.L. 111-148), as amended by the federal
1359-Health Care and Education Reconciliation Act of 2010 (P.L.
1360-111-152), that is enforceable by the state.
1361-(34) After June 30, 2015, violating IC 27-2-23 concerning
1362-unclaimed life insurance, annuity, or retained asset account
1363-benefits.
1364-(35) Willfully violating IC 27-1-12-46 concerning a life insurance
1365-policy or certificate described in IC 27-1-12-46(a).
1366-(36) Violating IC 27-1-37-7 concerning prohibiting the disclosure
1367-of health care service claims data.
1368-(37) Violating IC 27-4-10-10 concerning virtual claims payments.
1369-HEA 1332 — CC 1 33
1370-(38) Violating IC 27-1-24.5 concerning pharmacy benefit
1371-managers.
1372-(39) Violating IC 27-7-17-16 or IC 27-7-17-17 concerning the
1373-marketing of travel insurance policies.
1374-(40) Violating IC 27-1-49 concerning individual prescription
1375-drug rebates.
1376-(41) Violating IC 27-1-50 concerning group prescription drug
1377-rebates.
1378-(b) Except with respect to federal insurance programs under
1379-Subchapter III of Chapter 19 of Title 38 of the United States Code, the
1380-commissioner may, consistent with the federal Military Personnel
1381-Financial Services Protection Act (10 U.S.C. 992 note), adopt rules
1382-under IC 4-22-2 to:
1383-(1) define; and
1384-(2) while the members are on a United States military installation
1385-or elsewhere in Indiana, protect members of the United States
1386-Armed Forces from;
1387-dishonest or predatory insurance practices.
1388-SECTION 20. IC 27-6-8-4, AS AMENDED BY P.L.52-2013,
1389-SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1390-JULY 1, 2024]: Sec. 4. (a) As used in this chapter, unless otherwise
1391-provided:
1392-(1) The term "account" means any one (1) of the three (3)
1393-accounts created by section 5 of this chapter.
1394-(2) The term "association" means the Indiana Insurance Guaranty
1395-Association created by section 5 of this chapter.
1396-(3) The term "commissioner" means the commissioner of
1397-insurance of this state.
1398-(4) The term "covered claim" means an unpaid claim which arises
1399-out of and is within the coverage and not in excess of the
1400-applicable limits of an insurance policy to which this chapter
1401-applies issued by an insurer, if the insurer becomes an insolvent
1402-insurer after the effective date (January 1, 1972) of this chapter
1403-and (a) the claimant or insured is a resident of this state at the
1404-time of the insured event or (b) the property from which the claim
1405-arises is permanently located in this state. "Covered claim" shall
1406-be limited as provided in section 7 of this chapter, and shall not
1407-include the following:
1408-(A) Any amount due any reinsurer, insurer, insurance pool, or
1409-underwriting association, as subrogation recoveries or
1410-otherwise. However, a claim for any such amount, asserted
1411-against a person insured under a policy issued by an insurer
1412-HEA 1332 — CC 1 34
1413-which has become an insolvent insurer, which if it were not a
1414-claim by or for the benefit of a reinsurer, insurer, insurance
1415-pool or underwriting association, would be a "covered claim"
1416-may be filed directly with the receiver or liquidator of the
1417-insolvent insurer, but in no event may any such claim be
1418-asserted in any legal action against the insured of such
1419-insolvent insurer.
1420-(B) Any supplementary obligation including but not limited to
1421-adjustment fees and expenses, attorney fees and expenses,
1422-court costs, interest and bond premiums, whether arising as a
1423-policy benefit or otherwise, prior to the appointment of a
1424-liquidator.
1425-(C) Any unpaid claim that is filed with the association after the
1426-final date set by the court for the filing of claims against the
1427-liquidator or receiver of an insolvent insurer. For the purpose
1428-of filing a claim under this clause, notice of a claim to the
1429-liquidator of the insolvent insurer is considered to be notice to
1430-the association or the agent of the association and a list of
1431-claims must be periodically submitted to the association (or
1432-another state's association that is similar to the association) by
1433-the liquidator.
1434-(D) A claim that is excluded under section 11.5 of this chapter
1435-due to the high net worth of an insured.
1436-(E) Any claim by a person who directly or indirectly controls,
1437-is controlled, or is under common control with an insolvent
1438-insurer on December 31 of the year before the order of
1439-liquidation.
1440-All covered claims filed in the liquidation proceedings shall be
1441-referred immediately to the association by the liquidator for
1442-processing as provided in this chapter.
1443-(5) The term "high net worth insured" means the following:
1444-(A) For purposes of section 11.5(a) of this chapter, an insured
1445-that has a net worth (including the aggregate net worth of the
1446-insured and all subsidiaries and affiliates of the insured,
1447-calculated on a consolidated basis) that exceeds twenty-five
1448-million dollars ($25,000,000) on December 31 of the year
1449-immediately preceding the year in which the insurer becomes
1450-an insolvent insurer.
1451-(B) For purposes of section 11.5(b) of this chapter, an insured
1452-that has a net worth (including the aggregate net worth of the
1453-insured and all subsidiaries and affiliates of the insured,
1454-calculated on a consolidated basis) that exceeds fifty million
1455-HEA 1332 — CC 1 35
1456-dollars ($50,000,000) on December 31 of the year immediately
1457-preceding the year in which the insurer becomes an insolvent
1458-insurer.
1459-(6) The term "insolvent insurer" means (a) a member insurer
1460-holding a valid certificate of authority to transact insurance in this
1461-state either at the time the policy was issued or when the insured
1462-event occurred and (b) against whom a final order of liquidation,
1463-with a finding of insolvency, to which there is no further right of
1464-appeal, has been entered by a court of competent jurisdiction in
1465-the company's state of domicile. "Insolvent insurer" shall not be
1466-construed to mean an insurer with respect to which an order,
1467-decree, judgment or finding of insolvency whether preliminary or
1468-temporary in nature or order to rehabilitation or conservation has
1469-been issued by any court of competent jurisdiction prior to
1470-January 1, 1972 or which is adjudicated to have been insolvent
1471-prior to that date.
1472-(7) The term "member insurer" means any person who is licensed
1473-or holds a certificate of authority under IC 27-1-6-18 or
1474-IC 27-1-17-1 to transact in Indiana any kind of insurance for
1475-which coverage is provided under section 3 of this chapter,
1476-including the exchange of reciprocal or inter-insurance contracts.
1477-The term includes any insurer whose license or certificate of
1478-authority to transact such insurance in Indiana may have been
1479-suspended, revoked, not renewed, or voluntarily surrendered. A
1480-"member insurer" does not include farm mutual insurance
1481-companies organized and operating pursuant to IC 27-5.1 other
1482-than a company to which IC 27-5.1-2-6 applies.
1483-(8) The term "net direct written premiums" means direct gross
1484-premiums written in this state on insurance policies to which this
1485-chapter applies, less return premiums thereon and dividends paid
1486-or credited to policyholders on such direct business. "Net direct
1487-premiums written" does not include premiums on contracts
1488-between insurers or reinsurers.
1489-(9) The term "person" means an individual, an aggregation of
1490-individuals, a corporation, a partnership, or another entity.
1491-(b) Notwithstanding any other provision in this chapter, an
1492-insurance policy that is issued by a member insurer and later
1493-allocated, transferred, assumed by, or otherwise made the sole
1494-responsibility of another insurer, pursuant to a state statute
1495-providing for the division of an insurance company or the statutory
1496-assumption or transfer of designated policies and under which
1497-there is no remaining obligation to the transferring entity, shall be
1498-HEA 1332 — CC 1 36
1499-considered to have been issued by a member insurer which is an
1500-insolvent insurer for the purposes of this chapter in the event that
1501-the insurer to which the policy has been allocated, transferred,
1502-assumed by, or otherwise made the sole responsibility of is placed
1503-in liquidation.
1504-(c) An insurance policy that was issued by a nonmember insurer
1505-and later allocated, transferred, assumed by, or otherwise made
1506-the sole responsibility of a member insurer under a state statute
1507-shall not be considered to have been issued by a member insurer
1508-for the purposes of this chapter.
1509-SECTION 21. IC 27-6-8-5, AS AMENDED BY P.L.52-2013,
1510-SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1511-JULY 1, 2024]: Sec. 5. There is created a nonprofit unincorporated
1512-legal entity to be known as the Indiana Insurance Guaranty Association
1513-(referred to in this chapter as the "association"). All insurers defined as
1514-member insurers in section 4(7) 4(a)(7) of this chapter shall be and
1515-remain members of the association as a condition of their authority to
1516-transact insurance in this state. The association shall perform its
1517-functions under a plan of operation established and approved under
1518-section 8 of this chapter and shall exercise its powers through a board
1519-of directors established under section 6 of this chapter. For purposes of
1520-administration and assessment, the association shall be divided into
1521-three (3) separate accounts:
1522-(1) The worker's compensation insurance account.
1523-(2) The automobile insurance account.
1524-(3) The account for all other insurance to which this chapter
1525-applies.
1526-SECTION 22. IC 27-6-8-11.5, AS ADDED BY P.L.52-2013,
1527-SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1528-JULY 1, 2024]: Sec. 11.5. (a) The association is not obligated to pay
1529-a first party claim by a high net worth insured described in section
1530-4(5)(A) 4(a)(5)(A) of this chapter.
1531-(b) The association has the right to recover from a high net worth
1532-insured described in section 4(5)(B) 4(a)(5)(B) of this chapter all
1533-amounts paid by the association to or on behalf of the high net worth
1534-insured, regardless of whether the amounts were paid for indemnity,
1535-defense, or otherwise.
1536-(c) The association is not obligated to pay a claim that:
1537-(1) would otherwise be a covered claim;
1538-(2) is an obligation to or on behalf of a person who has a net
1539-worth greater than the net worth allowed by the insurance
1540-guaranty association law of the state of residence of the claimant
1541-HEA 1332 — CC 1 37
1542-at the time specified by the applicable law of the state of
1543-residence of the claimant; and
1544-(3) has been denied by the association of the state of residence of
1545-the claimant on the basis described in subdivision (2).
1546-(d) The association shall establish reasonable procedures, subject to
1547-the approval of the commissioner, for requesting financial information
1548-from insureds:
1549-(1) on a confidential basis; and
1550-(2) in the application of this section.
1551-(e) The procedures established under subsection (d) must provide
1552-for sharing of the financial information obtained from insureds with:
1553-(1) any other association that is similar to the association; and
1554-(2) the liquidator for an insolvent insurer;
1555-on the same confidential basis.
1556-(f) If an insured refuses to provide financial information that is:
1557-(1) requested under the procedures established under subsection
1558-(d); and
1559-(2) available;
1560-the association may, until the time that the financial information is
1561-provided to the association, consider the insured to be a high net worth
1562-insured for purposes of subsections (a) and (b).
1563-(g) In an action contesting the applicability of this section to an
1564-insured that refuses to provide financial information under the
1565-procedures established under subsection (d), the insured bears the
1566-burden of proof concerning the insured's net worth at the relevant time.
1567-If the insured fails to prove that the insured's net worth at the relevant
1568-time was less than the applicable amount set forth in section 4(5)(A) or
1569-4(5)(B) 4(a)(5)(A) or 4(a)(5)(B) of this chapter, the court shall award
1570-to the association the association's full costs, expenses, and reasonable
1571-attorney's fees incurred in contesting the claim.
1572-SECTION 23. IC 27-8-11-7, AS AMENDED BY P.L.190-2023,
1560+Fair Credit Reporting Act (15 U.S.C. 1681 et seq.).".
1561+Page 34, after line 6, begin a new paragraph and insert:
1562+"SECTION 16. IC 27-8-11-7, AS AMENDED BY P.L.190-2023,
15731563 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15741564 JULY 1, 2024]: Sec. 7. (a) This section applies to an insurer that issues
15751565 or administers a policy that provides coverage for basic health care
15761566 services (as defined in IC 27-13-1-4).
15771567 (b) As used in this section, "clean credentialing application" means
15781568 an application for network participation that:
15791569 (1) is submitted by a provider under this section;
15801570 (2) does not contain an error; and
15811571 (3) may be processed by the insurer without returning the
15821572 application to the provider for a revision or clarification.
15831573 (c) As used in this section, "credentialing" means a process by
1584-HEA 1332 — CC 1 38
15851574 which an insurer makes a determination that:
15861575 (1) is based on criteria established by the insurer; and
15871576 (2) concerns whether a provider is eligible to:
15881577 (A) provide health services to an individual eligible for
15891578 coverage; and
1579+EH 1332—LS 6979/DI 55 37
15901580 (B) receive reimbursement for the health services;
15911581 under an agreement that is entered into between the provider and
15921582 the insurer.
15931583 (d) As used in this section, "unclean credentialing application"
15941584 means an application for network participation that:
15951585 (1) is submitted by a provider under this section;
15961586 (2) contains at least one (1) error; and
15971587 (3) must be returned to the provider to correct the error.
15981588 (e) The department of insurance shall prescribe the credentialing
15991589 application form used by the Council for Affordable Quality Healthcare
16001590 (CAQH) in electronic or paper format, which must be used by:
16011591 (1) a provider who applies for credentialing by an insurer; and
16021592 (2) an insurer that performs credentialing activities.
16031593 (f) An insurer shall notify a provider concerning a deficiency on a
16041594 completed unclean credentialing application form submitted by the
16051595 provider not later than five (5) business days after the entity receives
16061596 the completed unclean credentialing application form. A notice
16071597 described in this subsection must:
16081598 (1) provide a description of the deficiency; and
16091599 (2) state the reason why the application was determined to be an
16101600 unclean credentialing application.
16111601 (g) A provider shall respond to the notification required under
16121602 subsection (f) not later than five (5) business days after receipt of the
16131603 notice.
16141604 (h) An insurer shall notify a provider concerning the status of the
16151605 provider's completed clean credentialing application when:
16161606 (1) the provider is provisionally credentialed; and
16171607 (2) the insurer makes a final credentialing determination
16181608 concerning the provider.
16191609 (i) If the insurer fails to issue a credentialing determination within
16201610 fifteen (15) business days after receiving a completed clean
16211611 credentialing application form from a provider, the insurer shall
16221612 provisionally credential the provider in accordance with the standards
16231613 and guidelines governing provisional credentialing from the National
16241614 Committee for Quality Assurance or its successor organization. The
16251615 provisional credentialing license is valid until a determination is made
16261616 on the credentialing application of the provider.
1627-HEA 1332 — CC 1 39
16281617 (j) Once an insurer fully credentials a provider that holds
16291618 provisional credentialing and a network provider agreement has been
16301619 executed, then reimbursement payments under the contract shall be
16311620 paid retroactive to the date the provider was provisionally credentialed.
16321621 The insurer shall reimburse the provider at the rates determined by the
1622+EH 1332—LS 6979/DI 55 38
16331623 contract between the provider and the insurer.
16341624 (k) If an insurer does not fully credential a provider that is
16351625 provisionally credentialed under subsection (i), the provisional
16361626 credentialing is terminated on the date the insurer notifies the provider
16371627 of the adverse credentialing determination. The insurer is not required
16381628 to reimburse for services rendered while the provider was provisionally
16391629 credentialed.
1640-SECTION 24. IC 27-13-43-2, AS AMENDED BY P.L.190-2023,
1630+SECTION 17. IC 27-13-43-2, AS AMENDED BY P.L.190-2023,
16411631 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16421632 JULY 1, 2024]: Sec. 2. (a) As used in this section, "clean credentialing
16431633 application" means an application for network participation that:
16441634 (1) is submitted by a provider under this section;
16451635 (2) does not contain an error; and
16461636 (3) may be processed by the health maintenance organization
16471637 without returning the application to the provider for a revision or
16481638 clarification.
16491639 (b) As used in this section, "credentialing" means a process by
16501640 which a health maintenance organization makes a determination that:
16511641 (1) is based on criteria established by the health maintenance
16521642 organization; and
16531643 (2) concerns whether a provider is eligible to:
16541644 (A) provide health services to an individual eligible for
16551645 coverage; and
16561646 (B) receive reimbursement for the health services;
16571647 under an agreement that is entered into between the provider and
16581648 the health maintenance organization.
16591649 (c) As used in this section, "unclean credentialing application"
16601650 means an application for network participation that:
16611651 (1) is submitted by a provider under this section;
16621652 (2) contains at least one (1) error; and
16631653 (3) must be returned to the provider to correct the error.
16641654 (d) The department shall prescribe the credentialing application
16651655 form used by the Council for Affordable Quality Healthcare (CAQH)
16661656 in electronic or paper format. The form must be used by:
16671657 (1) a provider who applies for credentialing by a health
16681658 maintenance organization; and
16691659 (2) a health maintenance organization that performs credentialing
1670-HEA 1332 — CC 1 40
16711660 activities.
16721661 (e) A health maintenance organization shall notify a provider
16731662 concerning a deficiency on a completed unclean credentialing
16741663 application form submitted by the provider not later than five (5)
16751664 business days after the entity receives the completed unclean
1665+EH 1332—LS 6979/DI 55 39
16761666 credentialing application form. A notice described in this subsection
16771667 must:
16781668 (1) provide a description of the deficiency; and
16791669 (2) state the reason why the application was determined to be an
16801670 unclean credentialing application.
16811671 (f) A provider shall respond to the notification required under
16821672 subsection (e) not later than five (5) business days after receipt of the
16831673 notice.
16841674 (g) A health maintenance organization shall notify a provider
16851675 concerning the status of the provider's completed clean credentialing
16861676 application when:
16871677 (1) the provider is provisionally credentialed; and
16881678 (2) the health maintenance organization makes a final
16891679 credentialing determination concerning the provider.
16901680 (h) If the health maintenance organization fails to issue a
16911681 credentialing determination within fifteen (15) business days after
16921682 receiving a completed clean credentialing application form from a
16931683 provider, the health maintenance organization shall provisionally
16941684 credential the provider in accordance with the standards and guidelines
16951685 governing provisional credentialing from the National Committee for
16961686 Quality Assurance or its successor organization. The provisional
16971687 credentialing license is valid until a determination is made on the
16981688 credentialing application of the provider.
16991689 (i) Once a health maintenance organization fully credentials a
17001690 provider that holds provisional credentialing and a network provider
17011691 agreement has been executed, then reimbursement payments under the
17021692 contract shall be paid retroactive to the date the provider was
17031693 provisionally credentialed. The health maintenance organization shall
17041694 reimburse the provider at the rates determined by the contract between
17051695 the provider and the health maintenance organization.
17061696 (j) If a health maintenance organization does not fully credential a
17071697 provider that is provisionally credentialed under subsection (h), the
17081698 provisional credentialing is terminated on the date the health
17091699 maintenance organization notifies the provider of the adverse
17101700 credentialing determination. The health maintenance organization is
17111701 not required to reimburse for services rendered while the provider was
1712-provisionally credentialed.
1713-HEA 1332 — CC 1 Speaker of the House of Representatives
1714-President of the Senate
1715-President Pro Tempore
1716-Governor of the State of Indiana
1717-Date: Time:
1718-HEA 1332 — CC 1
1702+provisionally credentialed.".
1703+Renumber all SECTIONS consecutively.
1704+and when so amended that said bill do pass.
1705+(Reference is to HB 1332 as introduced.)
1706+EH 1332—LS 6979/DI 55 40
1707+CARBAUGH
1708+Committee Vote: yeas 13, nays 0.
1709+_____
1710+COMMITTEE REPORT
1711+Madam President: The Senate Committee on Health and Provider
1712+Services, to which was referred House Bill No. 1332, has had the same
1713+under consideration and begs leave to report the same back to the
1714+Senate with the recommendation that said bill be AMENDED as
1715+follows:
1716+Page 1, delete lines 1 through 17.
1717+Page 2, delete lines 1 through 25, begin a new paragraph and insert:
1718+"SECTION 1. IC 27-1-15.7-4, AS AMENDED BY P.L.148-2017,
1719+SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1720+JULY 1, 2024]: Sec. 4. (a) The commissioner shall approve and
1721+disapprove continuing education courses after considering
1722+recommendations made by the insurance producer education and
1723+continuing education advisory council created commission established
1724+under section 6 6.5 of this chapter.
1725+(b) The commissioner may not approve a course under this section
1726+if the course:
1727+(1) is designed to prepare an individual to receive an initial
1728+license under this chapter;
1729+(2) concerns only routine, basic office skills, including filing,
1730+keyboarding, and basic computer skills; or
1731+(3) may be completed by a licensee without supervision by an
1732+instructor, unless the course involves an examination process that
1733+is:
1734+(A) completed and passed by the licensee as determined by the
1735+provider of the course; and
1736+(B) approved by the commissioner.
1737+(c) The commissioner shall approve a course under this section that
1738+is submitted for approval by an insurance trade association or
1739+professional insurance association if:
1740+(1) the objective of the course is to educate a manager or an
1741+owner of a business entity that is required to obtain an insurance
1742+producer license under IC 27-1-15.6-6(d);
1743+(2) the course teaches insurance producer management and is
1744+designed to result in improved efficiency in insurance producer
1745+operations, systems use, or key functions;
1746+EH 1332—LS 6979/DI 55 41
1747+(3) the course is designed to benefit consumers; and
1748+(4) the course is not described in subsection (b).
1749+(d) Approval of a continuing education course under this section
1750+shall be for a period of not more than two (2) years.
1751+(e) A prospective provider of a continuing education course shall
1752+pay:
1753+(1) a fee of forty dollars ($40) for each course submitted for
1754+approval of the commissioner under this section; or
1755+(2) an annual fee of five hundred dollars ($500) not later than
1756+January 1 of a calendar year, which entitles the prospective
1757+provider to submit an unlimited number of courses for approval
1758+of the commissioner under this section during the calendar year.
1759+The commissioner may waive all or a portion of the fee for a course
1760+submitted under a reciprocity agreement with another state for the
1761+approval or disapproval of continuing education courses. Fees collected
1762+under this subsection shall be deposited in the department of insurance
1763+fund established under IC 27-1-3-28.
1764+(f) A prospective provider of a continuing education course may
1765+electronically deliver to the commissioner any supporting materials for
1766+the course.
1767+(g) The commissioner shall adopt rules under IC 4-22-2 to establish
1768+procedures for approving continuing education courses.
1769+SECTION 2. IC 27-1-15.7-5, AS AMENDED BY P.L.81-2012,
1770+SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1771+JULY 1, 2024]: Sec. 5. (a) To qualify as a certified prelicensing course
1772+of study for purposes of IC 27-1-15.6-6, an insurance producer program
1773+of study must meet all of the following criteria:
1774+(1) Be conducted or developed by an:
1775+(A) insurance trade association;
1776+(B) accredited college or university;
1777+(C) educational organization certified by the insurance
1778+producer education and continuing education advisory council;
1779+commission; or
1780+(D) insurance company licensed to do business in Indiana.
1781+(2) Provide for self-study or instruction provided by an approved
1782+instructor in a structured setting, as follows:
1783+(A) For life insurance producers, not less than twenty (20)
1784+hours of instruction in a structured setting or comparable
1785+self-study on:
1786+(i) ethical practices in the marketing and selling of
1787+insurance;
1788+(ii) requirements of the insurance laws and administrative
1789+EH 1332—LS 6979/DI 55 42
1790+rules of Indiana; and
1791+(iii) principles of life insurance.
1792+(B) For health insurance producers, not less than twenty (20)
1793+hours of instruction in a structured setting or comparable
1794+self-study on:
1795+(i) ethical practices in the marketing and selling of
1796+insurance;
1797+(ii) requirements of the insurance laws and administrative
1798+rules of Indiana; and
1799+(iii) principles of health insurance.
1800+(C) For life and health insurance producers, not less than forty
1801+(40) hours of instruction in a structured setting or comparable
1802+self-study on:
1803+(i) ethical practices in the marketing and selling of
1804+insurance;
1805+(ii) requirements of the insurance laws and administrative
1806+rules of Indiana;
1807+(iii) principles of life insurance; and
1808+(iv) principles of health insurance.
1809+(D) For property and casualty insurance producers, not less
1810+than forty (40) hours of instruction in a structured setting or
1811+comparable self-study on:
1812+(i) ethical practices in the marketing and selling of
1813+insurance;
1814+(ii) requirements of the insurance laws and administrative
1815+rules of Indiana;
1816+(iii) principles of property insurance; and
1817+(iv) principles of liability insurance.
1818+(E) For personal lines producers, a minimum of twenty (20)
1819+hours of instruction in a structured setting or comparable
1820+self-study on:
1821+(i) ethical practices in the marketing and selling of
1822+insurance;
1823+(ii) requirements of the insurance laws and administrative
1824+rules of Indiana; and
1825+(iii) principles of property and liability insurance applicable
1826+to coverages sold to individuals and families for primarily
1827+noncommercial purposes.
1828+(F) For title insurance producers, not less than ten (10) hours
1829+of instruction in a structured setting or comparable self-study
1830+on:
1831+(i) ethical practices in the marketing and selling of title
1832+EH 1332—LS 6979/DI 55 43
1833+insurance;
1834+(ii) requirements of the insurance laws and administrative
1835+rules of Indiana;
1836+(iii) principles of title insurance, including underwriting and
1837+escrow issues; and
1838+(iv) principles of the federal Real Estate Settlement
1839+Procedures Act (12 U.S.C. 2608).
1840+(G) For annuity product producers, not less than four (4) hours
1841+of instruction in a structured setting or comparable self-study
1842+on:
1843+(i) types and classifications of annuities;
1844+(ii) identification of the parties to an annuity;
1845+(iii) the manner in which fixed, variable, and indexed
1846+annuity contract provisions affect consumers;
1847+(iv) income taxation of qualified and non-qualified
1848+annuities;
1849+(v) primary uses of annuities; and
1850+(vi) appropriate sales practices, replacement, and disclosure
1851+requirements.
1852+(3) Instruction provided in a structured setting must be provided
1853+only by individuals who meet the qualifications established by the
1854+commissioner under subsection (b).
1855+(b) The commissioner, after consulting with the insurance producer
1856+education and continuing education advisory council, commission,
1857+shall adopt rules under IC 4-22-2 prescribing the criteria that a person
1858+must meet to render instruction in a certified prelicensing course of
1859+study.
1860+(c) The commissioner shall adopt rules under IC 4-22-2 prescribing
1861+the subject matter that an insurance producer program of study must
1862+cover to qualify for certification as a certified prelicensing course of
1863+study under this section.
1864+(d) The commissioner may make recommendations that the
1865+commissioner considers necessary for improvements in course
1866+materials.
1867+(e) The commissioner shall designate a program of study that meets
1868+the requirements of this section as a certified prelicensing course of
1869+study for purposes of IC 27-1-15.6-6.
1870+(f) For each person that provides one (1) or more certified
1871+prelicensing courses of study, the commissioner shall annually
1872+determine, of all individuals who received classroom instruction in the
1873+certified prelicensing courses of study provided by the person, the
1874+percentage who passed the examination required by IC 27-1-15.6-5.
1875+EH 1332—LS 6979/DI 55 44
1876+The commissioner shall determine only one (1) passing percentage
1877+under this subsection for all lines of insurance described in
1878+IC 27-1-15.6-7(a) for which the person provides classroom instruction
1879+in certified prelicensing courses of study.
1880+(g) The commissioner may, after notice and opportunity for a
1881+hearing, do the following:
1882+(1) Withdraw the certification of a course of study that does not
1883+maintain reasonable standards, as determined by the
1884+commissioner for the protection of the public.
1885+(2) Disqualify a person that is currently qualified under
1886+subsection (b) to render instruction in a certified prelicensing
1887+course of study from rendering the instruction if the passing
1888+percentage calculated under subsection (f) is less than forty-five
1889+percent (45%).
1890+(h) Current course materials for a prelicensing course of study that
1891+is certified under this section must be submitted to the commissioner
1892+upon request, but not less frequently than once every three (3) years.
1893+SECTION 3. IC 27-1-15.7-6 IS REPEALED [EFFECTIVE JULY
1894+1, 2024]. Sec. 6. (a) As used in this section, "council" refers to the
1895+insurance producer education and continuing education advisory
1896+council created under subsection (b).
1897+(b) The insurance producer education and continuing education
1898+advisory council is created within the department. The council consists
1899+of the commissioner and fifteen (15) members appointed by the
1900+governor as follows:
1901+(1) Two (2) members recommended by the Professional Insurance
1902+Agents of Indiana.
1903+(2) Two (2) members recommended by the Independent Insurance
1904+Agents of Indiana.
1905+(3) Two (2) members recommended by the Indiana Association
1906+of Insurance and Financial Advisors.
1907+(4) Two (2) members recommended by the Indiana State
1908+Association of Health Underwriters.
1909+(5) Two (2) representatives of direct writing or exclusive
1910+producer's insurance companies.
1911+(6) One (1) representative of the Association of Life Insurance
1912+Companies.
1913+(7) One (1) member recommended by the Insurance Institute of
1914+Indiana.
1915+(8) One (1) member recommended by the Indiana Land Title
1916+Association.
1917+(9) Two (2) other individuals.
1918+EH 1332—LS 6979/DI 55 45
1919+(c) Members of the council serve for a term of three (3) years.
1920+Members may not serve more than two (2) consecutive terms.
1921+(d) Before making appointments to the council, the governor must:
1922+(1) solicit; and
1923+(2) select appointees to the council from;
1924+nominations made by organizations and associations that represent
1925+individuals and corporations selling insurance in Indiana.
1926+(e) The council shall meet at least semiannually.
1927+(f) A member of the council is entitled to the minimum salary per
1928+diem provided under IC 4-10-11-2.1(b). A member is also entitled to
1929+reimbursement for traveling expenses and other expenses actually
1930+incurred in connection with the member's duties, as provided in the
1931+state travel policies and procedures established by the state department
1932+of administration and approved by the state budget agency.
1933+(g) The council shall review and make recommendations to the
1934+commissioner with respect to course materials, curriculum, and
1935+credentials of instructors of each prelicensing course of study for which
1936+certification by the commissioner is sought under section 5 of this
1937+chapter and shall make recommendations to the commissioner with
1938+respect to educational requirements for insurance producers.
1939+(h) A member of the council or designee of the commissioner shall
1940+be permitted access to any classroom while instruction is in progress
1941+to monitor the classroom instruction.
1942+(i) The council shall make recommendations to the commissioner
1943+concerning the following:
1944+(1) Continuing education courses for which the approval of the
1945+commissioner is sought under section 4 of this chapter.
1946+(2) Rules proposed for adoption by the commissioner that would
1947+affect continuing education.
1948+SECTION 4. IC 27-1-15.7-6.5 IS ADDED TO THE INDIANA
1949+CODE AS A NEW SECTION TO READ AS FOLLOWS
1950+[EFFECTIVE JULY 1, 2024]: Sec. 6.5. (a) As used in this section,
1951+"commission" refers to the insurance producer education and
1952+continuing education commission established by subsection (b).
1953+(b) The insurance producer education and continuing education
1954+commission is established within the department. The
1955+commissioner shall appoint the following seven (7) individuals:
1956+(1) One (1) individual nominated by the Professional
1957+Insurance Agents of Indiana or its successor organization.
1958+(2) One (1) individual nominated by the Independent
1959+Insurance Agents of Indiana or its successor organization.
1960+(3) One (1) individual nominated by the Indiana Association
1961+EH 1332—LS 6979/DI 55 46
1962+of Insurance and Financial Advisors or its successor
1963+organization.
1964+(4) One (1) individual nominated by the Indiana State
1965+Association of Health Underwriters or its successor
1966+organization.
1967+(5) One (1) individual nominated by the Association of Life
1968+Insurance Companies or its successor organization.
1969+(6) One (1) individual nominated by the Insurance Institute of
1970+Indiana or its successor organization.
1971+(7) One (1) individual nominated by the Indiana Land Title
1972+Association or its successor organization.
1973+The commissioner shall solicit nominations from the entities set
1974+forth in this subsection. The commissioner may deny to make the
1975+appointment of an individual nominated under this subsection only
1976+if the commissioner determines that the individual is not in good
1977+standing with the department or is not qualified. If the
1978+commissioner denies the appointment of an individual nominated
1979+under this subsection, the commissioner shall provide the
1980+nominating entity with the reason for the denial and allow the
1981+nominating entity to submit an alternative nomination.
1982+(c) A member of the commission serves for a term of three (3)
1983+years that expires June 30, 2027, and every third year thereafter.
1984+A member may not serve more than two (2) consecutive terms.
1985+(d) The commissioner shall appoint a member of the commission
1986+to serve as chairperson, who serves at the will of the commissioner.
1987+The commission shall meet:
1988+(1) at the call of the chairperson; and
1989+(2) at least semiannually.
1990+The department shall staff the commission. Four (4) members
1991+constitute a quorum of the commission.
1992+(e) The commissioner shall fill a vacancy on the commission
1993+with a nomination from the entity that nominated the predecessor
1994+or the entity's succession. The individual appointed to fill the
1995+vacancy shall serve for the remainder of the predecessor's term.
1996+(f) A member of the commission is entitled to the minimum
1997+salary per diem provided under IC 4-10-11-2.1(b). A member is
1998+also entitled to reimbursement for traveling expenses and other
1999+expenses actually incurred in connection with the member's duties,
2000+in accordance with state travel policies and procedures established
2001+by the Indiana department of administration and approved by the
2002+budget agency. Money paid under this subsection shall be paid
2003+from amounts appropriated to the department.
2004+EH 1332—LS 6979/DI 55 47
2005+(g) The commission shall review and make recommendations to
2006+the commissioner concerning the following:
2007+(1) Course materials and curriculum and instructor
2008+credentials for prelicensing courses of study for which
2009+certification by the commissioner is sought under section 5 of
2010+this chapter.
2011+(2) Continuing education requirements for insurance
2012+producers.
2013+(3) Continuing education courses for which the approval of
2014+the commissioner is sought under section 4 of this chapter.
2015+(4) Rules proposed for adoption by the commissioner
2016+concerning continuing education under this chapter.
2017+(h) A member of the commission or a designee of the
2018+commissioner is permitted access to any classroom while
2019+instruction is in progress to monitor the classroom instruction.".
2020+Page 4, line 17, after "(j)" insert "This subsection is effective
2021+beginning January 1, 2026.".
2022+Page 5, line 18, after "(p)" insert "This subsection is effective
2023+beginning January 1, 2026.".
2024+Page 5, line 28, after "(q)" insert "This subsection is effective
2025+beginning January 1, 2026.".
2026+Page 8, line 37, delete "The" and insert "Beginning January 1,
2027+2026, the".
2028+Page 10, line 4, delete "Group Capital Calculation." and insert "This
2029+subsection is effective beginning January 1, 2026.".
2030+Page 11, line 33, delete "Liquidity Stress Test." and insert "This
2031+subsection is effective beginning January 1, 2026.".
2032+Page 18, delete lines 7 through 11.
2033+Page 18, line 15, after "provide" insert "only".
2034+Page 18, delete lines 27 through 32.
2035+Page 34, after line 17, begin a new paragraph and insert:
2036+"SECTION 19. [EFFECTIVE JULY 1, 2024] (a) The definitions in
2037+IC 27-2-29 apply to this SECTION.
2038+(b) A Marketplace plan may request a temporary waiver in
2039+writing from the department of insurance concerning compliance
2040+with IC 27-1-49 and IC 27-1-50. The Marketplace plan must state
2041+in the request the following:
2042+(1) The reason why the Marketplace plan is unable to comply
2043+with either or both of the following:
2044+(A) IC 27-1-49.
2045+(B) IC 27-1-50.
2046+(2) Verification that the Marketplace plan will comply with
2047+EH 1332—LS 6979/DI 55 48
2048+the statute or statutes for which the waiver is requested
2049+beginning January 1, 2025.
2050+(c) The department of insurance may approve a waiver
2051+requested by a Marketplace plan under subsection (b) for a time
2052+not to exceed December 31, 2024.
2053+(d) This SECTION expires January 1, 2025.".
2054+Renumber all SECTIONS consecutively.
2055+and when so amended that said bill do pass.
2056+(Reference is to HB 1332 as printed January 25, 2024.)
2057+CHARBONNEAU, Chairperson
2058+Committee Vote: Yeas 11, Nays 0.
2059+_____
2060+SENATE MOTION
2061+Madam President: I move that Engrossed House Bill 1332 be
2062+amended to read as follows:
2063+Page 1, delete lines 1 through 17.
2064+Delete pages 2 through 7.
2065+Page 8, delete lines 1 through 26.
2066+Renumber all SECTIONS consecutively.
2067+(Reference is to EHB 1332 as printed March 1, 2024.)
2068+BALDWIN
2069+_____
2070+SENATE MOTION
2071+Madam President: I move that Engrossed House Bill 1332 be
2072+amended to read as follows:
2073+Page 24, between lines 4 and 5, begin a new paragraph and insert:
2074+"SECTION 11. IC 27-1-31-3, AS AMENDED BY P.L.196-2021,
2075+SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2076+JULY 1, 2024]: Sec. 3. (a) Except as provided in subsection (b), if an
2077+insurer refuses to renew a policy of insurance written by the insurer, the
2078+insurer shall mail written notice of nonrenewal to the insured:
2079+(1) at least forty-five (45) days before the expiration date of the
2080+EH 1332—LS 6979/DI 55 49
2081+policy, if the coverage provided is for one (1) year, or less; or
2082+(2) at least forty-five (45) days before the anniversary date of the
2083+policy, if the coverage provided is for more than one (1) year.
2084+(b) This subsection does not apply to worker's compensation
2085+insurance. If an insurer refuses to renew a policy of insurance
2086+written by the insurer, the insurer shall mail written notice of
2087+nonrenewal to the insured at least sixty (60) days before the
2088+anniversary date of the policy if the coverage is provided to a
2089+municipality (as defined in IC 36-1-2-11) or county entity.
2090+(b) (c) A notice of nonrenewal is not required if:
2091+(1) the insured is transferred from an insurer to an affiliate of the
2092+insurer for future coverage; and
2093+(2) the transfer results in the same or broader coverage.".
2094+Renumber all SECTIONS consecutively.
2095+(Reference is to EHB 1332 as printed March 1, 2024.)
2096+BALDWIN
2097+_____
2098+SENATE MOTION
2099+Madam President: I move that Engrossed House Bill 1332 be
2100+amended to read as follows:
2101+Page 40, delete lines 14 through 30.
2102+(Reference is to EHB 1332 as printed March 1, 2024.)
2103+CHARBONNEAU
2104+EH 1332—LS 6979/DI 55