§ 22-3-7-34 — Insurance; self-insurance; exemptions

(a) As used in this section, "person" does not
include:
(1) an owner who contracts for performance of work on the
owner's owner occupied residential property; or
(2) a nonprofit corporation that is recognized as tax exempt under
Section 501(c)(3) of the Internal Revenue Code (as defined in IC 6-3-1-11(a)) to the extent the corporation enters into an
independent contractor agreement with a person for the
performance of youth coaching services on a part-time basis.
(b) Every employer bound by the compensation provisions of this
chapter, except the state, counties, townships, cities, towns, school
cities, school towns, other municipal corporations, state institutions,
state boards, and state commissions, shall insure the payment of
compensation to the employer's employees and their dependents in the
manner provided in this chapter, or procure from the worker's
compensation board a certificate authorizing the employer to carry such
risk without insurance. While that insurance or certificate remains in
force, the employer, or those conducting the employer's business, and
the employer's occupational disease insurance carrier shall be liable to
any employee and the employee's dependents for disablement or death
from occupational disease arising out of and in the course of
employment only to the extent and in the manner specified in this
chapter.
(c) Every employer who, by election, is bound by the compensation
provisions of this chapter, except those exempted from the provisions
by subsection (b), shall:
(1) insure and keep insured the employer's liability under this
chapter in some corporation, association, or organization
authorized to transact the business of worker's compensation
insurance in this state; or
(2) furnish to the worker's compensation board satisfactory proof
of the employer's financial ability to pay the compensation in the
amount and manner and when due as provided for in this chapter.
In the latter case the board may require the deposit of an acceptable
security, indemnity, or bond to secure the payment of compensation
liabilities as they are incurred.
(d) Every employer required to carry insurance under this section
shall file with the worker's compensation board in the form prescribed
by it, within ten (10) days after the termination of the employer's
insurance by expiration or cancellation, evidence of the employer's
compliance with subsection (c) and other provisions relating to the
insurance under this chapter. The venue of all criminal actions under
this section lies in the county in which the employee was last exposed
to the occupational disease causing disablement. The prosecuting
attorney of the county shall prosecute all violations upon written
request of the board. The violations shall be prosecuted in the name of
the state.
(e) Whenever an employer has complied with subsection (c) relating
to self-insurance, the worker's compensation board shall issue to the
employer a certificate which shall remain in force for a period fixed by
the board, but the board may, upon at least thirty (30) days notice, and
a hearing to the employer, revoke the certificate, upon presentation of
satisfactory evidence for the revocation. After the revocation, the board
may grant a new certificate to the employer upon the employer's
petition, and satisfactory proof of the employer's financial ability.
(f)(1) Subject to the approval of the worker's compensation board,
any employer may enter into or continue any agreement with the
employer's employees to provide a system of compensation, benefit, or
insurance in lieu of the compensation and insurance provided by this
chapter. A substitute system may not be approved unless it confers
benefits upon employees and their dependents at least equivalent to the
benefits provided by this chapter. It may not be approved if it requires
contributions from the employees unless it confers benefits in addition
to those provided under this chapter, which are at least commensurate
with such contributions.
(f)(2) The substitute system may be terminated by the worker's
compensation board on reasonable notice and hearing to the interested
parties, if it appears that the same is not fairly administered or if its
operation shall disclose latent defects threatening its solvency, or if for
any substantial reason it fails to accomplish the purpose of this chapter.
On termination, the board shall determine the proper distribution of all
remaining assets, if any, subject to the right of any party in interest to
take an appeal to the court of appeals.
(g)(1) No insurer shall enter into or issue any policy of insurance
under this chapter until its policy form has been submitted to and
approved by the worker's compensation board. The board shall not
approve the policy form of any insurance company until the company
shall file with it the certificate of the insurance commissioner showing
that the company is authorized to transact the business of worker's
compensation insurance in Indiana. The filing of a policy form by any
insurance company or reciprocal insurance association with the board
for approval constitutes on the part of the company or association a
conclusive and unqualified acceptance of each of the compensation
provisions of this chapter, and an agreement by it to be bound by the
compensation provisions of this chapter.
(g)(2) All policies of insurance companies and of reciprocal
insurance associations, insuring the payment of compensation under
this chapter, shall be conclusively presumed to cover all the employees
and the entire compensation liability of the insured under this chapter
in all cases in which the last day of the exposure rendering the
employer liable is within the effective period of such policy.
(g)(3) Any provision in any such policy attempting to limit or
modify the liability of the company or association insuring the same
shall be wholly void.
(g)(4) Every policy of any company or association shall be deemed
to include the following provisions:
"(A) The insurer assumes in full all the obligations to pay
physician's fees, nurse's charges, hospital supplies, burial
expenses, compensation or death benefits imposed upon or
accepted by the insured under this chapter.
(B) This policy is subject to the provisions of this chapter relative
to the liability of the insured to pay physician's fees, nurse's
charges, hospital services, hospital supplies, burial expenses,
compensation or death benefits to and for such employees, the
acceptance of such liability by the insured, the adjustment, trial
and adjudication of claims for such physician's fees, nurse's
charges, hospital services, hospital supplies, burial expenses,
compensation, or death benefits.
(C) Between this insurer and the employee, notice to or
knowledge of the occurrence of the disablement on the part of the
insured (the employer) shall be notice or knowledge thereof, on
the part of the insurer. The jurisdiction of the insured (the
employer) for the purpose of this chapter is the jurisdiction of this
insurer, and this insurer shall in all things be bound by and shall
be subject to the awards, judgments and decrees rendered against
the insured (the employer) under this chapter.
(D) This insurer will promptly pay to the person entitled to the
same all benefits conferred by this chapter, including all
physician's fees, nurse's charges, hospital services, hospital
supplies, burial expenses, and all installments of compensation or
death benefits that may be awarded or agreed upon under this
chapter. The obligation of this insurer shall not be affected by any
default of the insured (the employer) after disablement or by any
default in giving of any notice required by this policy, or
otherwise. This policy is a direct promise by this insurer to the
person entitled to physician's fees, nurse's charges, fees for
hospital services, charges for hospital services, charges for
hospital supplies, charges for burial, compensation, or death
benefits, and shall be enforceable in the name of the person.
(E) Any termination of this policy by cancellation shall not be
effective as to employees of the insured covered hereby unless at
least thirty (30) days prior to the taking effect of such
cancellation, a written notice giving the date upon which such
termination is to become effective has been received by the
worker's compensation board of Indiana at its office in
Indianapolis, Indiana.
(F) This policy shall automatically expire one (1) year from the
effective date of the policy, unless the policy covers a period of
three (3) years, in which event, it shall automatically expire three
(3) years from the effective date of the policy. The termination
either of a one (1) year or a three (3) year policy, is effective as to
the employees of the insured covered by the policy.".
(g)(5) All claims for compensation, nurse's charges, hospital
services, hospital supplies, physician's fees, or burial expenses may be
made directly against either the employer or the insurer or both, and the
award of the worker's compensation board may be made against either
the employer or the insurer or both.
(g)(6) If any insurer shall fail to pay any final award or judgment
(except during the pendency of an appeal) rendered against it, or its
insured, or, if it shall fail to comply with this chapter, the worker's
compensation board shall revoke the approval of its policy forms, and
shall not accept any further proofs of insurance from it until it shall
have paid the award or judgment or complied with this chapter, and
shall have resubmitted its policy form and received the approval of the
policy by the worker's compensation board.
(h) No policy of insurance covering the liability of an employer for
worker's compensation shall be construed to cover the liability of the
employer under this chapter for any occupational disease unless the
liability is expressly accepted by the insurance carrier issuing the
policy and is endorsed in that policy. The insurance or security in force
to cover compensation liability under this chapter shall be separate
from the insurance or security under IC 22-3-2 through IC 22-3-6. Any
insurance contract covering liability under either part of this article
need not cover any liability under the other.
(i) For the purpose of complying with subsection (c), groups of
employers are authorized to form mutual insurance associations or
reciprocal or interinsurance exchanges subject to any reasonable
conditions and restrictions fixed by the department of insurance.
(j) Membership in a mutual insurance association or a reciprocal or
interinsurance exchange so proved, together with evidence of the
payment of premiums due, is evidence of compliance with subsection
(c).
(k) Any person bound under the compensation provisions of this
chapter, contracting for the performance of any work exceeding one
thousand dollars ($1,000) in value, in which the hazard of an
occupational disease exists, by a contractor subject to the compensation
provisions of this chapter without exacting from the contractor a
certificate from the worker's compensation board showing that the
contractor has complied with subsections (b), (c), and (d), shall be
liable to the same extent as the contractor for compensation, physician's
fees, hospital fees, nurse's charges, and burial expenses on account of
the injury or death of any employee of such contractor, due to
occupational disease arising out of and in the course of the
performance of the work covered by such contract.
(l) Any contractor who sublets any contract for the performance of
any work to a subcontractor subject to the compensation provisions of
this chapter, without obtaining a certificate from the worker's
compensation board showing that the subcontractor has complied with
subsections (b), (c), and (d), is liable to the same extent as the
subcontractor for the payment of compensation, physician's fees,
hospital fees, nurse's charges, and burial expense on account of the
injury or death of any employee of the subcontractor due to
occupational disease arising out of and in the course of the
performance of the work covered by the subcontract.
(m) A person paying compensation, physician's fees, hospital fees,
nurse's charges, or burial expenses, under subsection (k) or (l), may
recover the amount paid or to be paid from any person who would
otherwise have been liable for the payment thereof and may, in
addition, recover the litigation expenses and attorney's fees incurred in
the action before the worker's compensation board as well as the
litigation expenses and attorney's fees incurred in an action to collect
the compensation, medical expenses, and burial expenses.
(n) Every claim filed with the worker's compensation board under
this section shall be instituted against all parties liable for payment.
The worker's compensation board, in an award under subsection (k),
shall fix the order in which such parties shall be exhausted, beginning
with the immediate employer and, in an award under subsection (l),
shall determine whether the subcontractor has the financial ability to
pay the compensation and medical expenses when due and, if not, shall
order the contractor to pay the compensation and medical expenses.
Formerly: Acts 1937, c.69, s.27; Acts 1943, c.248, s.1; Acts
1959, c.359, s.1; Acts 1961, c.312, s.1; Acts 1963, c.388, s.16. As
amended by Acts 1978, P.L.2, SEC.2213; Acts 1982, P.L.135, SEC.2;
P.L.28-1988, SEC.61; P.L.170-1991, SEC.23; P.L.258-1997(ss),
SEC.17; P.L.202-2001, SEC.10; P.L.201-2005, SEC.9; P.L.1-2006,
SEC.343; P.L.233-2015, SEC.320; P.L.117-2021, SEC.2.