§ 27-6-8-12 — Prevention of insolvencies

Indiana § 27-6-8-12

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 6: REINSURANCE; INTERINSURANCE
• Ch. 8: Property and Casualty Insurance and Guaranty

Text

To aid in the detection and prevention of
insurer insolvencies:
(1) Every member insurer shall file with the NAIC for use in their
Early Warning System on or before March 1 of each year a
financial statement of the same type and content as required by IC 27-1-20-21.
(2) It shall be the duty of the commissioner:
(A) To notify the commissioners of all of the other states,
territories of the United States, and the District of Columbia in
which a member insurer is licensed to do business when he
takes any of the following actions against a member insurer:
(i) revocation of license;
(ii) suspension of license;
(iii) makes any formal order that such company restrict its
premium writing, obtain additional contributions to surplus,
withdraw from the state, reinsure all or any part of its
business, or an increase in capital, surplus, or any other
account for the security of policyholders or creditors. Such
notice shall be mailed to all commissioners within thirty (30)
days following the action taken or the date on which such
action occurs.
(B) To report to the board of directors when he has taken any of
the actions set forth in (A) of this paragraph or has received a
report from any other commissioner indicating that any such
action has been taken in another state. Such report to the board
of directors shall contain all significant details of the action
taken or the report received from another commissioner.
(C) To report to the board of directors when he has reasonable
cause to believe from any examination, whether completed or
in process, of any member company, that such company may be
insolvent or in a financial condition hazardous to the
policyholders or the public.
(3) The commissioner may seek the advice and recommendations
of the board of directors concerning any matter affecting his
duties and responsibilities regarding the financial condition of
member companies and companies seeking admission to transact
insurance business in this state.
(4) The board of directors may, upon majority vote, make reports
and recommendations to the commissioner upon any matter
germane to the solvency, liquidation, rehabilitation, or
conservation of any member insurer or germane to the solvency
of any company seeking to do an insurance business in this state.
Such reports and recommendations shall not be considered public
documents.
(5) The board of directors may, upon majority vote, request that
the commissioner order an examination of any member insurer
which the board in good faith believes may be in a financial
condition hazardous to the policyholders or the public. Within
thirty (30) days of the receipt of such request, the commissioner
shall begin such examination. The examination may be conducted
as a NAIC examination or may be conducted by such persons as
the commissioner designates provided such persons are qualified
insurance accountants or actuaries. The cost of such examination
shall be paid by the association and the examination report shall
be treated as are other examination reports. In no event shall such
examination report be released to the board of directors prior to
its release to the public, but this shall not preclude the
commissioner from complying with subsection (1). The
commissioner shall notify the board of directors when the
examination is completed. The request for an examination shall
be kept on file by the commissioner but it shall not be open to
public inspection prior to the release of the examination report to
the public.
(6) The board of directors may, upon majority vote, make
recommendations to the commissioner for the detection and
prevention of insurer insolvencies.
Formerly: Acts 1971, P.L.390, SEC.1. As amended by Acts
1977, P.L.281, SEC.8; P.L.163-1988, SEC.5; P.L.124-2018,
SEC.66.