§ 27-1-22-6 — Bad faith filing; burden of proof; order to rewrite policies at approved rate

Indiana § 27-1-22-6

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 22: Regulation of Insurance Rates

Text

(a) A "bad-faith filing", as used in this chapter,
means a rate filing made by any filer who, in bad faith, files a rate
which it knows, or should know, is grossly inadequate for the insurance
coverage provided, and which is filed and used for the purpose of
unfairly obtaining a particular risk or limited group of risks, and which
is available only to such risk or limited group of risks.
(b) At any hearing conducted under this section, the burden shall be
on the filer to prove that such filing is not in violation of this section.
If, after such hearing, the commissioner finds that the filer has failed to
prove that such filing is not in violation of this section, based on the
evidence adduced at the hearing and made a part of the record, he may
order all policies written under such bad-faith filing to be rewritten at
an approved rate from the date of the inception of such policies of
insurance, or all such policies shall be cancelled pro rata in accordance
with the policy provisions.
(c) Nothing in this section shall be deemed to supersede the
provisions set forth in section 24 of this chapter.
Formerly: Acts 1967, c.133, s.6. As amended by P.L.252-1985,
SEC.109.