§ 27-1-25-12.4 — Denial, suspension, or revocation of administrator license

Indiana § 27-1-25-12.4

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 25: Insurance Administrators

Text

4. (a) The commissioner shall deny,
suspend, or revoke a license issued under this chapter if the
commissioner determines that the administrator:
(1) is in unsound financial condition;
(2) engages in methods or practices in the conduct of the
administrator's business so as to render the administrator's
continued transaction of business in Indiana hazardous or
injurious to covered persons or the public; or
(3) fails to pay a judgment rendered against the administrator in
Indiana not more than sixty (60) days after the judgment is final
and all appeals have been exhausted.
(b) The commissioner may deny, suspend, or revoke a license issued
under this chapter if the commissioner determines that:
(1) the administrator has violated a lawful rule or order of the
commissioner or a provision of the insurance laws of Indiana;
(2) the administrator refuses to be examined or to produce the
administrator's accounts, records, and files for examination;
(3) an individual who is responsible for the conduct of the affairs
of the administrator, including:
(A) a member of the administrator's:
(i) board of directors;
(ii) board of trustees;
(iii) executive committee; or
(iv) other governing board or committee;
(B) a principal officer, if the administrator is a corporation;
(C) a partner or member, if the administrator is:
(i) a partnership;
(ii) an association; or
(iii) a limited liability company;
(D) a shareholder or member that holds, directly or indirectly,
ten percent (10%) or more of the:
(i) voting stock;
(ii) voting securities; or
(iii) voting interest;
of the administrator; or
(E) any other person who exercises control or influence over the
affairs of the administrator;
refuses to provide information with respect to the administrator's
business or to perform another legal obligation with respect to an
examination when required by the commissioner;
(4) the administrator, without just cause:
(A) refuses to pay proper claims or to perform services arising
under a written agreement;
(B) causes a covered individual to accept less than the amount
due to the covered individual; or
(C) causes a covered individual to employ an attorney or bring
suit against the administrator to secure full payment or
settlement of a proper claim;
(5) the administrator fails to meet a qualification for which
issuance of the administrator's license could have been refused if
the failure had existed and been known by the commissioner at
the time of license issuance;
(6) an individual who is responsible for the conduct of the affairs
of the administrator, including:
(A) a member of the administrator's:
(i) board of directors;
(ii) board of trustees;
(iii) executive committee; or
(iv) other governing board or committee;
(B) a principal officer, if the administrator is a corporation;
(C) a partner or member, if the administrator is:
(i) a partnership;
(ii) an association; or
(iii) a limited liability company;
(D) a shareholder or member that holds, directly or indirectly,
ten percent (10%) or more of the:
(i) voting stock;
(ii) voting securities; or
(iii) voting interest;
of the administrator; or
(E) any other person who exercises control or influence over the
affairs of the administrator;
is convicted of or enters a plea of guilty or nolo contendere to a
felony, without regard to whether adjudication is withheld;
(7) the administrator's license has been suspended or revoked in
another state; or
(8) the administrator fails to timely file the:
(A) report required under section 12.3 of this chapter; or
(B) statement and pay the filing fee required under section
12.2(e) of this chapter.
(c) The commissioner may, in the commissioner's discretion and
without advance notice or hearing, immediately suspend the license of
an administrator if the commissioner finds one (1) or more of the
following:
(1) The administrator is insolvent or financially impaired.
(2) A proceeding for receivership, conservatorship, rehabilitation,
or other delinquency proceeding regarding the administrator has
been commenced in any state.
(3) The financial condition or business practices of the
administrator pose an imminent threat to the public health, safety,
or welfare of residents of Indiana.
(d) If the commissioner determines that cause exists for the
suspension or revocation of a license issued under this chapter, the
commissioner may, instead of suspension or revocation, impose a civil
penalty not to exceed twenty-five thousand dollars ($25,000) per act or
violation upon the administrator. A civil penalty imposed under this
subsection may be enforced in the same manner as a civil judgment.
Civil penalties collected under this subsection shall be deposited in the
state general fund.

Legislative History

As added by P.L.160-2003, SEC.18.