(a)An insurer or authorized representative
of an insurer that terminates the appointment, employment, contract, or
other insurance business relationship with a producer shall notify the
commissioner not more than thirty (30) days after the effective date of
the termination using a format prescribed by the commissioner, if:
(1)the reason for termination is described in section 12 of this
chapter; or
(2)the insurer has knowledge that the producer was found by a
court, a government body, or a self-regulatory organization
authorized by law to have engaged in any of the activities
described in section 12 of this chapter.
Upon the written request of the insurance commissioner, the insurer
shall provide additional information, documents, records, and other
data pertaining to the termination or
Free access — add to your briefcase to read the full text and ask questions with AI
(a) An insurer or authorized representative
of an insurer that terminates the appointment, employment, contract, or
other insurance business relationship with a producer shall notify the
commissioner not more than thirty (30) days after the effective date of
the termination using a format prescribed by the commissioner, if:
(1) the reason for termination is described in section 12 of this
chapter; or
(2) the insurer has knowledge that the producer was found by a
court, a government body, or a self-regulatory organization
authorized by law to have engaged in any of the activities
described in section 12 of this chapter.
Upon the written request of the insurance commissioner, the insurer
shall provide additional information, documents, records, and other
data pertaining to the termination or activity of the producer.
(b) If an insurer discovers, upon further review or investigation,
additional information that would have been reportable to the
commissioner under subsection (a) had the insurer known of the
existence of the additional information, the insurer or an authorized
representative of the insurer shall promptly notify the commissioner of
the additional information in a format acceptable to the commissioner.
(c) A copy of the notification of termination of a producer that must
be provided to the commissioner under this section shall also be
provided to the producer as follows:
(1) Not more than fifteen (15) days after making the notification
required under subsection (a) or (b), the insurer shall mail a copy
of the notification to the producer at the producer's last known
address. If the producer is terminated for cause for any of the
reasons described in section 12 of this chapter, the insurer shall
provide a copy of the notification to the producer at the producer's
last known address by certified mail, return receipt requested,
postage prepaid, or by overnight delivery using a nationally
recognized carrier.
(2) Not more than thirty (30) days after the producer has received
the original or additional notification, the producer may file
written comments concerning the substance of the notification
with the commissioner. The producer shall, by the same means
used by the producer to file the written comments with the
commissioner, simultaneously send a copy of the comments to the
reporting insurer, and the comments shall become a part of the
commissioner's file and accompany every copy of a report
distributed or disclosed for any reason about the producer as
permitted under subsection (e).
(d) Immunities under this section are as follows:
(1) In the absence of actual malice, an insurer, an authorized
representative of an insurer, a producer, the commissioner, and an
organization of which the commissioner is a member and that
compiles information and makes it available to other insurance
commissioners or regulatory or law enforcement agencies are
immune from civil liability, and a civil cause of action of any
nature shall not arise against these entities or their respective
agents or employees, as a result of:
(A) a statement or information required by or provided under
this section or any information relating to a statement that may
be requested in writing by the commissioner from an insurer or
producer; or
(B) a statement by a terminating insurer to a producer or by a
producer to a terminating insurer;
limited solely and exclusively to whether a termination for cause
referred to in subsection (a) was reported to the commissioner,
provided that the propriety of any termination for cause referred
to in subsection (a) is certified in writing by an officer or
authorized representative of the insurer or producer terminating
the relationship.
(2) In any action brought against a person that may have
immunity under subdivision (1) for:
(A) making a statement required under this section; or
(B) providing information relating to a statement that may be
requested by the commissioner;
the party bringing the action must plead specifically in any
allegation that subdivision (1) does not apply because the person
making the statement or providing the information did so with
actual malice.
(3) Existing statutory or common law privileges or immunities are
not abrogated or modified by subdivision (1) or (2).
(e) Confidentiality under this section is as follows:
(1) Documents, materials, and other forms of information in the
control or possession of the department that are:
(A) furnished by:
(i) an insurer or producer; or
(ii) an employee or agent of an insurer acting on behalf of the
insurer or producer; or
(B) obtained by the commissioner in an investigation under this
section;
are confidential by law and privileged, are not subject to public
inspection and copying under IC 5-14-3-3, are not subject to
subpoena, and are not subject to discovery or admissible in
evidence in any private civil action. However, the commissioner
is authorized to use the documents, materials, or other information
in the furtherance of any regulatory or legal action brought as a
part of the commissioner's duties.
(2) Neither the commissioner nor any person who receives
confidential documents, materials, or other information described
in subdivision (1) while acting under the authority of the
commissioner may be permitted or required to testify in any
private civil action concerning the confidential documents,
materials, or information described in subdivision (1).
(3) To assist in the performance of the commissioner's duties
under this chapter, the commissioner may:
(A) share documents, materials, and other information,
including the confidential and privileged documents, materials,
and information described in subdivision (1), with:
(i) other state, federal, and international regulatory agencies;
(ii) the National Association of Insurance Commissioners, its
affiliates or subsidiaries; and
(iii) state, federal, and international law enforcement
authorities;
provided that the recipient agrees to maintain the
confidentiality and privileged status of the documents,
materials, or other information;
(B) receive documents, materials, and information, including
otherwise confidential and privileged documents, materials, and
information, from:
(i) the National Association of Insurance Commissioners, its
affiliates or subsidiaries; and
(ii) regulatory and law enforcement officials of other foreign
or domestic jurisdictions;
and shall maintain as confidential or privileged any document,
material, or information received with notice or the
understanding that it is confidential or privileged under the laws
of the jurisdiction that is the source of the document, material,
or information; and
(C) enter into agreements governing sharing and use of
information consistent with this subsection.
(4) Disclosure of documents, materials, and information:
(A) to the commissioner; or
(B) by the commissioner;
under this section does not result in a waiver of any applicable
privilege or claim of confidentiality in the documents, materials,
or information.
(5) This chapter does not prohibit the commissioner from
releasing final, adjudicated actions, including for cause
terminations that are open to public inspection under IC 5-14, to
a database or other clearinghouse service maintained by the
National Association of Insurance Commissioners or by its
affiliates or subsidiaries.
(f) If an insurer, an authorized representative of an insurer, or a
producer fails to report as required under this section or is found to
have reported falsely with actual malice by a court of competent
jurisdiction, the commissioner may, after notice and hearing, suspend
or revoke the license or certificate of authority of the insurer,
authorized representative, or producer, and may fine the insurer,
authorized representative, or producer under IC 27-4-1-6.