§ 27-13-34-18 — Fidelity bonds; deposit in place of bond

(a) Except as provided in subsection (c), a
limited service health maintenance organization shall maintain in force
a fidelity bond in its own name on its officers and employees:
(1) in an amount not less than fifty thousand dollars ($50,000); or
(2) in any other amount prescribed by the commissioner.
(b) The fidelity bond required by this section must be issued by an
insurance company not affiliated in any way with the limited service
health maintenance organization, that is licensed to do business in
Indiana. However, if a fidelity bond is not available from an insurance
company that holds a certificate of authority in Indiana, a limited
service health maintenance organization may satisfy the requirement
of this section by maintaining a fidelity bond procured by a surplus
lines insurance producer not affiliated in any way with the limited
service health maintenance organization who holds a license issued
under IC 27-1-15.8.
(c) Instead of maintaining a fidelity bond under subsection (a), a
limited service health maintenance organization may deposit with the
commissioner:
(1) cash;
(2) certificates of deposit;
(3) United States government obligations acceptable to the
commissioner;
(4) any other securities acceptable to the commissioner of the
types referred to in IC 27-13-11-1; or
(5) a combination of the items described in subdivisions (1)
through (4).
A deposit made under this subsection is in addition to any other
required deposit, and must also be maintained in joint custody with the
commissioner in the amount and subject to the same conditions
required for a fidelity bond under this section.

Legislative History

As added by P.L.26-1994, SEC.25. Amended by P.L.132-2001, SEC.19; P.L.178-2003, SEC.87.