§ 27-1-23.5-11 — Exemptions

Indiana § 27-1-23.5-11

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 23.5: Risk Management and Own Risk and Solvency

Text

(a) Except as otherwise provided in this
section, an insurer is exempt from the requirements of this chapter if:
(1) the insurer has annual direct written and unaffiliated assumed
premium, including international direct and assumed premium but
excluding premiums reinsured with the Federal Crop Insurance
Corporation and Federal Flood Program, of less than five hundred
million dollars ($500,000,000); and
(2) the insurance group of which the insurer is a member has
annual direct written and unaffiliated assumed premium,
including international direct and assumed premium but
excluding premiums reinsured with the Federal Crop Insurance
Corporation and Federal Flood Program, of less than one billion
dollars ($1,000,000,000).
(b) If:
(1) an insurer qualifies under subsection (a)(1) for exemption
from the requirements of this chapter; and
(2) the insurance group of which the insurer is a member does not
qualify for exemption under subsection (a)(2);
an ORSA summary report required by section 10 of this chapter must
include every insurer that is a member of the insurance group.
(c) If:
(1) an insurance group described in subsection (b) submits more
than one (1) ORSA summary report for a combination of insurers;
and
(2) the combination of ORSA summary reports submitted as
described in subdivision (1) includes every insurer that is a
member of the insurance group;
the insurance group is considered to be in compliance with subsection
(b).
(d) If:
(1) an insurer does not qualify under subsection (a)(1) for
exemption from the requirements of this chapter; and
(2) the insurance group of which the insurer is a member qualifies
for exemption under subsection (a)(2);
the only ORSA summary report that is required under section 10 of this
chapter is the report that applies to the insurer.
(e) An insurer that does not qualify under subsection (a) for
exemption from the requirements of this chapter may apply to the
commissioner for a waiver from the requirements of this chapter based
on unique circumstances. In deciding whether to grant an insurer's
request for a waiver, the commissioner:
(1) may consider the type and volume of business written,
ownership and organizational structure, and any other factor the
commissioner considers relevant to the insurer or insurance group
of which the insurer is a member; and
(2) shall, if the insurer is part of an insurance group with insurers
domiciled in more than one (1) state, coordinate with the:
(A) lead state commissioner of the insurance group (as
determined by the procedures in the Financial Analysis
Handbook); and
(B) other domiciliary commissioners;
in considering whether to grant the insurer's request for a waiver.
(f) The commissioner may, regardless of an insurer's qualification
under this section for exemption from the requirements of this chapter,
require that an insurer maintain a risk management framework, conduct
an ORSA, and file an ORSA summary report if one (1) of the following
applies:
(1) If unique circumstances exist, as determined by the
commissioner, including the following:
(A) The type and volume of business written by the insurer.
(B) The insurer's ownership and organizational structure.
(C) The request of a federal agency.
(D) The request of an international supervisor.
(2) If the insurer:
(A) has authorized control level RBC for a company action
level event under IC 27-1-36;
(B) meets at least one (1) of the standards of an insurer
considered to be in hazardous financial condition according to
rules adopted by the department under IC 27-1-3-7; or
(C) exhibits other qualities of a troubled insurer, as determined
by the commissioner.
(g) If an insurer ceases to qualify for an exemption under this
section due to changes in premium, as reflected in:
(1) the insurer's most recent annual statement; or
(2) the most recent annual statements of the insurers that are
members of the insurance group of which the insurer is a member;
the insurer must meet the requirements of this chapter not later than
one (1) year after the date on which the premium change occurs.

Legislative History

As added by P.L.129-2014, SEC.8. Amended by P.L.124-2018, SEC.45.