§ 27-1-23-3 — Registration; amendments; termination; disclaimer of affiliation; filing requirements; civil penalty

(a) Every insurer which is authorized to do
business in this state and which is a member of an insurance holding
company system shall register with the commissioner, except a foreign
insurer subject to disclosure requirements and standards adopted by
statute or regulation in the jurisdiction of its domicile which are
substantially similar to those contained in:
(1) this section;
(2) section 4(a) and 4(c) of this chapter; and
(3) section 4(b) of this chapter or a provision such as the
following:
Each registered insurer shall keep current the information
required to be disclosed in its registration statement by
reporting all material changes or additions within fifteen (15)
days after the end of the month in which it learns of each
such change or addition.
Any insurer which is subject to registration under this section shall
register within fifteen (15) days after it becomes subject to registration,
and annually thereafter by July 1 of each year for the previous calendar
year, unless the commissioner for good cause shown extends the time
for registration, and then within such extended time. The commissioner
may require any authorized insurer which is a member of an insurance
holding company system but not subject to registration under this
section to furnish a copy of the registration statement or other
information filed by such insurer with the insurance regulatory
authority of its domiciliary jurisdiction.
(b) Every insurer subject to registration shall file a registration
statement on a form prescribed by the commissioner, which shall
contain current information about all of the following:
(1) The capital structure, general financial condition, ownership
and management of the insurer and any person controlling the
insurer.
(2) The identity of every member of the insurance holding
company system.
(3) The following agreements in force, relationships subsisting,
and transactions that are currently outstanding or that have
occurred during the last calendar year between such insurer and
its affiliates:
(A) loans, other investments, or purchases, sales or exchanges
of securities of the affiliates by the insurer or of the insurer by
its affiliates;
(B) purchases, sales, or exchanges of assets;
(C) transactions not in the ordinary course of business;
(D) guarantees or undertakings for the benefit of an affiliate
which result in an actual contingent exposure of the insurer's
assets to liability, other than insurance contracts entered into in
the ordinary course of the insurer's business;
(E) all management and service contracts and all cost-sharing
arrangements;
(F) reinsurance agreements;
(G) dividends and other distributions to shareholders; and
(H) consolidated tax allocation agreements.
(4) Any pledge of the insurer's stock, including stock of any
subsidiary or controlling affiliate, for a loan made to any member
of the insurance holding company system.
(5) If requested by the commissioner, financial statements of the
insurance holding company system, the parent corporation of the
insurer, or all affiliates, including annual audited financial
statements filed with the federal Securities and Exchange
Commission under the Securities Act of 1933 (15 U.S.C. 77a et
seq.) or the federal Securities Exchange Act of 1934 (15 U.S.C.
78a et seq.).
(6) Statements reflecting that the insurer's:
(A) board of directors oversees corporate governance and
internal controls; and
(B) officers or senior management have approved and
implemented and maintain and monitor corporate governance
and internal control procedures.
(7) Other matters concerning transactions between registered
insurers and any affiliates as may be included from time to time
in any registration forms prescribed by the commissioner.
(8) Other information that the commissioner requires under rules
adopted under IC 4-22-2.
(c) Every registration statement must contain a summary outlining
all items in the current registration statement representing changes
from the prior registration statement.
(d) No information need be disclosed on the registration statement
filed pursuant to subsection (b) if such information is not material for
the purposes of this section. Unless the commissioner by rule or order
provides otherwise, sales, purchases, exchanges, loans or extensions of
credit, or investments, involving one-half of one percent (0.5%) or less
of an insurer's admitted assets as of the thirty-first day of December
next preceding shall not be deemed material for purposes of this
section. Beginning January 1, 2026, the definition of materiality set
forth in this subsection does not apply for purposes of the Group
Capital Calculation or the Liquidity Stress Test Framework.
(e) Each registered insurer shall keep current the information
required to be disclosed in its registration statement by reporting all
material changes or additions on amendment forms prescribed by the
commissioner within fifteen (15) days after the end of the month in
which it learns of each such change or addition.
(f) A person within an insurance holding company system subject
to registration under this chapter shall provide complete and accurate
information to an insurer when that information is reasonably necessary
to enable the insurer to comply with this chapter.
(g) The commissioner shall terminate the registration of any insurer
which demonstrates that it no longer is subject to the provisions of this
section.
(h) The commissioner may require or allow two (2) or more
affiliated insurers subject to registration under this section to file a
consolidated registration statement or consolidated reports amending
their consolidated registration statement or their individual registration
statements.
(i) The commissioner may allow an insurer which is authorized to
do business in this state and which is a member of an insurance holding
company system to register on behalf of any affiliated insurer which is
required to register under subsection (a) and to file all information and
material required to be filed under this section.
(j) The provisions of this section shall not apply to any insurer,
information, or transaction if and to the extent that the commissioner
by rule or order shall exempt the same from the provisions of this
section.
(k) Any person may file with the commissioner a disclaimer of
affiliation with any authorized insurer or such a disclaimer may be filed
by such insurer or any member of an insurance holding company
system. The disclaimer shall fully disclose all material relationships
and bases for affiliation between such person and such insurer as well
as the basis for disclaiming such affiliation. After a disclaimer has been
filed, the insurer shall be relieved of any duty to register or report under
this section which may arise out of the insurer's relationship with such
person unless and until the commissioner disallows such disclaimer. A
disclaimer of affiliation is considered to have been granted unless the
commissioner, less than thirty (30) days after receiving a disclaimer,
notifies the person filing the disclaimer that the disclaimer is
disallowed. The commissioner shall disallow such disclaimer only after
furnishing all parties in interest with notice and opportunity to be
heard.
(l) The person that ultimately controls an insurer that is subject to
registration shall file with the lead state commissioner of the insurance
holding company system (as determined by the procedures in the
Financial Analysis Handbook) an annual enterprise risk report that
identifies, to the best of the person's knowledge, the material risks
within the insurance holding company system that could pose
enterprise risk to the insurer.
(m) This subsection is effective beginning January 1, 2026. Except
as otherwise provided in subdivisions (1) through (7), the ultimate
controlling person of every insurer subject to registration shall file,
concurrently with the registration, an annual group capital calculation
as directed by the lead state commissioner. The report shall be
completed in accordance with the NAIC Group Capital Calculation
Instructions, which may permit the lead state commissioner to allow a
controlling person that is not the ultimate controlling person to file the
group capital calculation. The report shall be filed with the lead state
commissioner of the insurance holding company system as determined
by the commissioner in accordance with the procedures within the
Financial Analysis Handbook adopted by the NAIC. Insurance holding
company systems described in the following are exempt from filing the
group capital calculation:
(1) An insurance holding company system that has only one (1)
insurer within its holding company structure, writes business only
in its domestic state, is licensed only in its domestic state, and
assumes no business from any other insurer.
(2) An insurance holding company system that is required to
perform a group capital calculation specified by the United States
Federal Reserve Board. The lead state commissioner shall request
the calculation from the Federal Reserve Board under the terms
of information sharing agreements in effect. If the Federal
Reserve Board cannot share the calculation with the lead state
commissioner, the insurance holding company system is not
exempt from the group capital calculation filing.
(3) An insurance holding company system whose non-United
States group wide supervisor is located within a Reciprocal
Jurisdiction as described in IC 27-6-10.1 that recognizes the
United States state regulatory approach to group supervision and
group capital.
(4) An insurance holding company system:
(A) that provides information to the lead state that meets the
requirements for accreditation under the NAIC financial
standards and accreditation program, either directly or
indirectly through the group wide supervisor, who has
determined such information is satisfactory to allow the lead
state to comply with the NAIC group supervision approach, as
detailed in the Financial Analysis Handbook adopted by the
NAIC; and
(B) whose non-United States group wide supervisor that is not
in a Reciprocal Jurisdiction recognizes and accepts, as specified
by the commissioner in regulation, the group capital calculation
as the world wide group capital assessment for United States
insurance groups that operate in that jurisdiction.
(5) Notwithstanding the provisions of subdivisions (3) and (4), a
lead state commissioner shall require the group capital calculation
for United States operations of any non-United States based
insurance holding company system where, after any necessary
consultation with other supervisors or officials, it is deemed
appropriate by the lead state commissioner for prudential
oversight and solvency monitoring purposes or for ensuring the
competitiveness of the insurance marketplace.
(6) Notwithstanding the exemptions from filing the group capital
calculation stated in subdivisions (1) through (4), the lead state
commissioner has the discretion to exempt the ultimate
controlling person from filing the annual group capital calculation
or to accept a limited group capital filing or report in accordance
with criteria as specified by the commissioner in regulation.
(7) If the lead state commissioner determines that an insurance
holding company system no longer meets one (1) or more of the
requirements for an exemption from filing the group capital
calculation under this section, the insurance holding company
system shall file the group capital calculation at the next annual
filing date unless given an extension by the lead state
commissioner based on reasonable grounds shown.
(n) This subsection is effective beginning January 1, 2026. The
ultimate controlling person of every insurer that is subject to
registration and is also scoped into the NAIC Liquidity Stress Test
Framework shall file the results of a specific year's Liquidity Stress
Test. The filing shall be made to the lead state commissioner of the
insurance holding company system as determined by the procedures
within the Financial Analysis Handbook adopted by the NAIC, subject
to the following:
(1) The NAIC Liquidity Stress Test Framework includes Scope
Criteria applicable to a specific data year. These Scope Criteria
are reviewed at least annually by the NAIC Financial Stability
Task Force or its successor. Any change to the NAIC Liquidity
Stress Test Framework or to the data year for which the Scope
Criteria are to be measured shall be effective on January 1 of the
year following the calendar year when such changes are adopted.
Insurers meeting at least one (1) threshold of the Scope Criteria
are considered scoped into the NAIC Liquidity Stress Test
Framework for the specified data year unless the lead state
commissioner, in consultation with the NAIC Financial Stability
Task Force or its successor, determines that the insurer should not
be scoped into the NAIC Liquidity Stress Test Framework for that
data year. Similarly, insurers that do not trigger at least one (1)
threshold of the Scope Criteria are considered scoped out of the
NAIC Liquidity Stress Test Framework for the specified data year
unless the lead state commissioner, in consultation with the NAIC
Financial Stability Task Force or its successor, determines that the
insurer should be scoped into the NAIC Liquidity Stress Test
Framework for that data year.
(2) The performance of, and the filing of the results from, a
specific year's Liquidity Stress Test shall comply with the NAIC
Liquidity Stress Test Framework's instructions and reporting
templates for that year and any lead state commissioner
determinations, in consultation with the NAIC Financial Stability
Task Force or its successor, that are provided within the NAIC
Liquidity Stress Test Framework.
(o) The commissioner may impose on a person a civil penalty of one
hundred dollars ($100) per day that the person fails to file, within the
period specified, a:
(1) registration statement; or
(2) summary of a registration statement or enterprise risk filing;
required by this section. The commissioner shall deposit a civil penalty
collected under this subsection in the department of insurance fund
established by IC 27-1-3-28.
Formerly: Acts 1971, P.L.387, SEC.1. As amended by Acts
1981, P.L.244, SEC.3; P.L.26-1991, SEC.11; P.L.81-2012, SEC.14;
P.L.129-2014, SEC.7; P.L.72-2016, SEC.11; P.L.124-2018, SEC.41;
P.L.158-2024, SEC.7.