§ 27-1-25-6 — Fiduciary status of administrator; fiduciary accounts

Indiana § 27-1-25-6

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

Text

(a) An administrator is a fiduciary in collecting
or returning premiums or charges for the insurer with whom it has a
written agreement for administrative services.
(b) Funds collected by the administrator shall be immediately
remitted to the person entitled to the funds or deposited in a fiduciary
account, which shall be established and maintained by the
administrator in a federally insured or state insured financial
institution.
(c) The administrator shall maintain records clearly showing the
deposits and withdrawals from the fiduciary account for each insurer
with whom it has a written agreement for administrative services. The
administrator shall furnish to the insurer:
(1) upon the insurer's request, copies of the required records; and
(2) at intervals specified in the written agreement, a periodic
accounting of transactions performed by the administrator
pertaining to the business underwritten by the insurer.
(d) Subject to the written agreement required by section 2 of this
chapter, withdrawals from the fiduciary account shall only be made for
the following:
(1) Remittance to an insurer entitled to the funds.
(2) Deposit in an account maintained in the name of the insurer
with whom the administrator has a written agreement.
(3) Transfer to and deposit in a claims paying account, with
claims to be paid as required under section 7 of this chapter.
(4) Payment to a group policyholder for remittance to the insurer
entitled to the funds.
(5) Payment to the administrator for its commission, fees, or
charges.
(6) Remittance of return premiums to the person entitled to the
funds.
(e) An administrator may not pay any claim with money withdrawn
from a fiduciary account established under subsection (b) in which
premiums or charges are deposited.
As added by Acts 1980, P.L.168, SEC.2. Amended by Acts
1982, P.L.165, SEC.4; P.L.26-1991, SEC.20; P.L.160-2003,
SEC.10.