Indiana 2025 Regular Session

Indiana Senate Bill SB0512 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 512
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 36-1-34.
7	7	Synopsis: Insurance pooling for political subdivisions. Permits
8	8	political subdivisions, acting jointly, to pool resources to purchase
9	9	insurance coverage.
10	10	Effective: July 1, 2025.
11	11	Becker
12	12	January 16, 2025, read first time and referred to Committee on Local Government.
13	13	2025 IN 512—LS 6661/DI 154 Introduced
14	14	First Regular Session of the 124th General Assembly (2025)
15	15	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
16	16	Constitution) is being amended, the text of the existing provision will appear in this style type,
17	17	additions will appear in this style type, and deletions will appear in this style type.
18	18	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
19	19	provision adopted), the text of the new provision will appear in this style type. Also, the
20	20	word NEW will appear in that style type in the introductory clause of each SECTION that adds
21	21	a new provision to the Indiana Code or the Indiana Constitution.
22	22	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
23	23	between statutes enacted by the 2024 Regular Session of the General Assembly.
24	24	SENATE BILL No. 512
25	25	A BILL FOR AN ACT to amend the Indiana Code concerning local
26	26	government.
27	27	Be it enacted by the General Assembly of the State of Indiana:
28	28	1 SECTION 1. IC 36-1-34 IS ADDED TO THE INDIANA CODE AS
29	29	2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
30	30	3 1, 2025]:
31	31	4 Chapter 34. Pooling Resources for Insurance Coverage
32	32	5 Sec. 1. As used in this chapter, "political subdivision" means a:
33	33	6 (1) county;
34	34	7 (2) township;
35	35	8 (3) city;
36	36	9 (4) town;
37	37	10 (5) separate municipal corporation;
38	38	11 (6) special taxing district;
39	39	12 (7) city or county hospital;
40	40	13 (8) board or commission of one (1) of the entities listed in
41	41	14 subdivisions (1) through (7);
42	42	15 (9) drug enforcement task force operated jointly by a political
43	43	16 subdivision;
44	44	17 (10) community correctional service program organized
45	45	2025 IN 512—LS 6661/DI 154 2
46	46	1 under IC 12-12-1; or
47	47	2 (11) solid waste management district established under
48	48	3 IC 13-21 or IC 13-9.5-2 (before its repeal).
49	49	4 Sec. 2. (a) A political subdivision, in collaboration with other
50	50	5 political subdivisions, may jointly undertake action to reduce
51	51	6 expenditures by pooling resources for liability insurance, property
52	52	7 and casualty insurance, worker's compensation insurance, or any
53	53	8 other insurance. Political subdivisions that elect to pool resources
54	54	9 for coverage must create a trust under state law for the assets. A
55	55	10 trust created under this subsection is subject to regulation by the
56	56	11 department of insurance as follows:
57	57	12 (1) The trust must be registered with the department of
58	58	13 insurance.
59	59	14 (2) The trust must obtain stop loss insurance issued by an
60	60	15 insurer authorized to do business in Indiana with an
61	61	16 aggregate retention of not more than one hundred twenty-five
62	62	17 percent (125%) of the amount of expected claims for the
63	63	18 following year.
64	64	19 (3) Contributions by political subdivisions, acting jointly,
65	65	20 must be set at one hundred percent (100%) of the aggregate
66	66	21 retention plus all other costs of the trust.
67	67	22 (4) The trust must maintain a fidelity bond in an amount
68	68	23 approved by the department of insurance. The fidelity bond
69	69	24 must cover each person responsible for the trust for acts of
70	70	25 fraud or dishonesty in servicing the trust.
71	71	26 (5) The trust is subject to IC 27-4-1-4.5 regarding claims
72	72	27 settlement practices.
73	73	28 (6) The trust must file an annual financial statement in the
74	74	29 form required by IC 27-1-3-13 not later than March 1 of each
75	75	30 year.
76	76	31 (7) The trust is not covered by the Indiana Insurance
77	77	32 Guaranty Association created under IC 27-6-8-5. The liability
78	78	33 of each political subdivision is joint and several.
79	79	34 (8) The trust is subject to examination by the department of
80	80	35 insurance. All costs associated with an examination must be
81	81	36 borne by the trust.
82	82	37 (9) The department of insurance may deny, suspend, or
83	83	38 revoke the registration of a trust if the insurance
84	84	39 commissioner finds any of the following:
85	85	40 (A) The trust is in a hazardous financial condition.
86	86	41 (B) The trust refuses to be examined or produce records
87	87	42 for examination.
88	88	2025 IN 512—LS 6661/DI 154 3
89	89	1 (C) The trust failed to pay a final judgment rendered
90	90	2 against the trust by a court within thirty (30) days of the
91	91	3 court's final declared judgment.
92	92	4 (b) An insurance producer licensed by the department of
93	93	5 insurance may not solicit, offer, or provide coverage through a
94	94	6 pooling arrangement that does not have a certificate of registration
95	95	7 from the department of insurance.
96	96	8 Sec. 3. The insurance commissioner may adopt rules under
97	97	9 IC 4-22-2 to implement this chapter.
98	98	2025 IN 512—LS 6661/DI 154