§ 27-1-23-1 — Definitions

Indiana § 27-1-23-1

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 23: Regulation of Insurance Holding Company Systems

Text

As used in this chapter, the following terms
shall have the respective meanings set forth in this section, unless the
context shall otherwise require:
(a) An "acquiring party" is the specific person by whom an
acquisition of control of a domestic insurer or of any corporation
controlling a domestic insurer is to be effected, and each person who
directly, or indirectly through one (1) or more intermediaries, controls
the person specified.
(b) An "affiliate" of, or person "affiliated" with, a specific person,
is a person that directly, or indirectly through one (1) or more
intermediaries, controls, or is controlled by, or is under common
control with, the person specified.
(c) A "beneficial owner" of a voting security includes any person
who, directly or indirectly, through any contract, arrangement,
understanding, relationship, revocable or irrevocable proxy, or
otherwise has or shares:
(1) voting power including the power to vote, or to direct the
voting of, the security; or
(2) investment power which includes the power to dispose, or to
direct the disposition, of the security.
(d) "Commissioner" means the insurance commissioner of this state.
(e) "Control" (including the terms "controlling", "controlled by", and
"under common control with") means the possession, direct or indirect,
of the power to direct or cause the direction of the management and
policies of a person, whether through the beneficial ownership of
voting securities, by contract other than a commercial contract for
goods or nonmanagement services, or otherwise, unless the power is
the result of an official position or corporate office. Control shall be
presumed to exist if any person beneficially owns ten percent (10%) or
more of the voting securities of any other person. The commissioner
may determine this presumption has been rebutted only by a showing
made in the manner provided by section 3(k) of this chapter that
control does not exist in fact, after giving all interested persons notice
and an opportunity to be heard. Control shall be presumed again to
exist upon the acquisition of beneficial ownership of each additional
five percent (5%) or more of the voting securities of the other person.
The commissioner may determine, after furnishing all persons in
interest notice and opportunity to be heard, that control exists in fact,
notwithstanding the absence of a presumption to that effect.
(f) "Department" means the department of insurance created by IC 27-1-1-1.
(g) A "domestic insurer" is an insurer organized under the laws of
this state.
(h) "Earned surplus" means an amount equal to the unassigned
funds of an insurer as set forth in the most recent annual statement of
an insurer that is submitted to the commissioner, excluding surplus
arising from unrealized capital gains or revaluation of assets.
(i) "Enterprise risk" means an activity, circumstance, event, or series
of events that involves at least one (1) affiliate of an insurer that, if not
remedied promptly, is likely to have a material adverse effect upon the
financial condition or liquidity of the insurer or the insurer's insurance
holding company system as a whole, including an activity,
circumstance, event, or series of events that would cause the:
(1) insurer's risk based capital to fall into company action level
under IC 27-1-36; or
(2) insurer to be in hazardous financial condition subject to IC 27-1-3-7 and rules adopted under IC 27-1-3-7.
(j) This subsection is effective beginning January 1, 2026. "Group
Capital Calculation Instructions" refers to the group capital calculation
instructions as adopted by the NAIC and as amended by the NAIC from
time to time in accordance with the procedures adopted by the NAIC.
(k) "Group wide supervisor" means the regulatory official who is:
(1) authorized by the commissioner to conduct and coordinate
group wide supervision of an internationally active insurance
group; and
(2) determined by the commissioner to have sufficient significant
contact with the internationally active insurance group to enable
group wide supervision.
(l) An "insurance holding company system" consists of two (2) or
more affiliated persons, one (1) or more of which is an insurer.
(m) "Insurer" has the same meaning as set forth in IC 27-1-2-3,
except that it does not include:
(1) agencies, authorities, or instrumentalities of the United States,
its possessions and territories, the Commonwealth of Puerto Rico,
the District of Columbia, or a state or political subdivision of a
state; or
(2) nonprofit medical and hospital service associations.
The term includes a health maintenance organization (as defined in IC 27-13-1-19) and a limited service health maintenance organization (as
defined in IC 27-13-1-27).
(n) "Internationally active insurance group" means an insurance
holding company system that:
(1) includes an insurer that is registered under section 3 of this
chapter; and
(2) meets the following requirements:
(A) The insurance holding company system has premiums
written in at least three (3) countries.
(B) The percentage of the insurance holding company system's
gross premiums written outside the United States is at least ten
percent (10%) of the insurance holding company system's total
gross written premiums.
(C) Based on a three (3) year rolling average, the:
(i) total assets of the insurance holding company system are
at least fifty billion dollars ($50,000,000,000); or
(ii) total gross written premiums of the insurance holding
company system are at least ten billion dollars
($10,000,000,000).
(o) "NAIC" refers to the National Association of Insurance
Commissioners.
(p) This subsection is effective beginning January 1, 2026. "NAIC
Liquidity Stress Test Framework" refers to a separate NAIC publication
that includes:
(1) a history of the NAIC's development of regulatory liquidity
stress testing;
(2) the Scope Criteria applicable for a specific data year; and
(3) the Liquidity Stress Test instructions and reporting templates
for a specific data year, such Scope Criteria, instructions, and a
reporting template as adopted by the NAIC and as amended by
the NAIC from time to time in accordance with the procedures
adopted by the NAIC.
(q) This subsection is effective beginning January 1, 2026. "Scope
Criteria", as detailed in the NAIC Liquidity Stress Test Framework,
refers to the designated exposure bases, along with the minimum
magnitudes of the designated exposure bases, for the specified data
year, which are used to establish a preliminary list of insurers
considered scoped into the NAIC Liquidity Stress Test Framework for
that data year.
(r) "Supervisory college" means a temporary or permanent forum:
(1) comprised of regulators, including other state, federal, and
international regulators, responsible for the supervision of:
(A) a domestic insurer that is part of an insurance holding
company system that has international operations;
(B) an insurance holding company system described in clause
(A); or
(C) an affiliate of:
(i) a domestic insurer described in clause (A); or
(ii) an insurance holding company system described in clause
(B); and
(2) established to facilitate communication and cooperation
between the regulators described in subdivision (1).
(s) A "person" is an individual, a corporation, a limited liability
company, a partnership, an association, a joint stock company, a trust,
an unincorporated organization, any similar entity or any combination
of the foregoing acting in concert. The term does not include the
following:
(1) A securities broker performing no more than the usual and
customary broker's function.
(2) A joint venture partnership that is exclusively engaged in
owning, managing, leasing, or developing real or tangible
personal property.
(t) A "policyholder" of a domestic insurer includes any person who
owns an insurance policy or annuity contract issued by the domestic
insurer, any person reinsured by the domestic insurer under a
reinsurance contract or treaty between the person and the domestic
insurer, and any health maintenance organization with which the
domestic insurer has contracted to provide services or protection
against the cost of care.
(u) "Securityholder" means a person that owns a security of a
specified person, including common stock, preferred stock, debt
obligations, and any other security that:
(1) is convertible to; or
(2) evidences the right to acquire;
a common stock, preferred stock, or debt obligation.
(v) A "subsidiary" of a specified person is an affiliate controlled by
that person directly or indirectly through one (1) or more
intermediaries.
(w) "Surplus" means the total of gross paid in and contributed
surplus, special surplus funds, and unassigned surplus, less treasury
stock at cost.
(x) "Voting security" includes any security convertible into or
evidencing a right to acquire a voting security.
Formerly: Acts 1971, P.L.387, SEC.1. As amended by Acts
1981, P.L.244, SEC.1; P.L.26-1991, SEC.8; P.L.8-1993, SEC.416;
P.L.130-1994, SEC.28; P.L.116-1994, SEC.38; P.L.26-1994, SEC.9;
P.L.2-1995, SEC.100; P.L.203-2001, SEC.5; P.L.81-2012, SEC.12;
P.L.72-2016, SEC.10; P.L.158-2024, SEC.6.