§ 27-1-25-4 — Books and records; maintenance; inspection; transfer; ownership; notice of material change; maintenance of bond

(a) An administrator:
(1) shall maintain at its principal administrative office books and
records of all transactions between the administrator and insurers
for at least five (5) years after the creation of the books and
records; or
(2) may transfer the books and records of transactions between
the administrator and an insurer with which the administrator has
entered into a written agreement under section 2 of this chapter to
a new administrator if:
(A) the agreement between the administrator and the insurer is
canceled; and
(B) a written agreement for a transfer of the books and records
is made between the administrator and the insurer.
If the books and records are transferred to a new administrator under
subdivision (2), the new administrator shall acknowledge in writing
that the new administrator is responsible for retaining the books and
records of the prior administrator as required under subdivision (1).
The books and records must be maintained in accordance with
generally accepted standards of insurance record keeping.
(b) The commissioner is entitled to inspect all books and records of
the administrator for the purpose of examinations and audits. Trade
secrets contained within those books and records, including the identity
and addresses of policyholders and certificate holders, financial
information concerning the administrator, and the business plan of the
administrator, are to remain confidential. However, the commissioner
may use that confidential information in proceedings instituted against
the administrator.
(c) An insurer is the owner of records that:
(1) are generated by an administrator with which the insurer has
entered into a written agreement under section 2 of this chapter;
and
(2) pertain to the insurer.
However, the administrator retains the right to continuing access to
books and records necessary to fulfill the administrator's contractual
obligations to covered individuals, claimants, and the insurer.
(d) An administrator that is licensed under section 11.1 of this
chapter shall make available for inspection by the commissioner copies
of written agreements with insurers.
(e) An administrator that is licensed under section 11.1 of this
chapter shall:
(1) produce the administrator's accounts, records, and files for
examination; and
(2) make the administrator's officers available to provide
information concerning the affairs of the administrator;
whenever reasonably required by the commissioner.
(f) An administrator that is licensed under section 11.1 of this
chapter shall immediately notify the commissioner of a material change
in:
(1) the ownership or control of the administrator; or
(2) another fact or circumstance that affects the administrator's
qualification for a license.
The commissioner, upon receiving notice under this subsection, shall
report the change to the centralized insurance producer license registry
described in IC 27-1-15.6-7.
(g) An administrator that is licensed under section 11.1 of this
chapter and that administers a governmental plan or a church plan shall
maintain a bond:
(1) for the use and benefit of:
(A) the commissioner; and
(B) the insurance regulator of any state in which the
administrator is authorized to conduct business; and
(2) that covers an individual and a person that has remitted
premiums, insurance, charges, or other money to the administrator
in the course of the administrator's business;
in an amount equal to the greater of one hundred thousand dollars
($100,000) or ten percent (10%) of the total of funds administered in
connection with governmental plans or church plans in Indiana and all
other states in which the administrator is authorized to conduct
business.
As added by Acts 1980, P.L.168, SEC.2. Amended by Acts
1982, P.L.165, SEC.3; P.L.2-1995, SEC.102; P.L.160-2003, SEC.7;
P.L.124-2018, SEC.47.