§ 27-13-26-1 — Hazardous financial condition; corrective action ordered by commissioner

Indiana § 27-13-26-1

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 13: HEALTH MAINTENANCE ORGANIZATIONS
• Ch. 26: Summary of Orders and Supervision

Text

(a) If the commissioner determines that:
(1) the financial condition of a health maintenance organization
is such that the continued operation of the organization might be
hazardous to:
(A) the subscribers, enrollees, or creditors of the organization;
or
(B) the general public; or
(2) the organization has violated any provision of this article;
the commissioner may, after notice and hearing, order the health
maintenance organization to take action reasonably necessary to rectify
the condition or violation.
(b) An order of the commissioner under subsection (a) may require
a health maintenance organization to do one (1) or more of the
following:
(1) Reduce the total amount of present and potential liability for
benefits by reinsurance or another method acceptable to the
commissioner.
(2) Reduce the volume of new business being accepted.
(3) Reduce expenses by specified methods.
(4) Suspend or limit the writing of new business for a period of
time.
(5) Increase the capital and surplus of the health maintenance
organization by contribution.
(6) Take other steps the commissioner considers appropriate
under the circumstances.
(c) The commissioner's order under this section may require items
in addition to those set forth in subsection (b).

Legislative History

As added by P.L.26-1994, SEC.25.