§ 27-6-8-4 — Definitions

Indiana § 27-6-8-4

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

Text

(a) As used in this chapter, unless otherwise
provided:
(1) The term "account" means any one (1) of the three (3)
accounts created by section 5 of this chapter.
(2) The term "association" means the Indiana Insurance Guaranty
Association created by section 5 of this chapter.
(3) The term "commissioner" means the commissioner of
insurance of this state.
(4) The term "covered claim" means an unpaid claim which arises
out of and is within the coverage and not in excess of the
applicable limits of an insurance policy to which this chapter
applies issued by an insurer, if the insurer becomes an insolvent
insurer after the effective date (January 1, 1972) of this chapter
and (a) the claimant or insured is a resident of this state at the
time of the insured event or (b) the property from which the claim
arises is permanently located in this state. "Covered claim" shall
be limited as provided in section 7 of this chapter, and shall not
include the following:
(A) Any amount due any reinsurer, insurer, insurance pool, or
underwriting association, as subrogation recoveries or
otherwise. However, a claim for any such amount, asserted
against a person insured under a policy issued by an insurer
which has become an insolvent insurer, which if it were not a
claim by or for the benefit of a reinsurer, insurer, insurance pool
or underwriting association, would be a "covered claim" may be
filed directly with the receiver or liquidator of the insolvent
insurer, but in no event may any such claim be asserted in any
legal action against the insured of such insolvent insurer.
(B) Any supplementary obligation including but not limited to
adjustment fees and expenses, attorney fees and expenses, court
costs, interest and bond premiums, whether arising as a policy
benefit or otherwise, prior to the appointment of a liquidator.
(C) Any unpaid claim that is filed with the association after the
final date set by the court for the filing of claims against the
liquidator or receiver of an insolvent insurer. For the purpose of
filing a claim under this clause, notice of a claim to the
liquidator of the insolvent insurer is considered to be notice to
the association or the agent of the association and a list of
claims must be periodically submitted to the association (or
another state's association that is similar to the association) by
the liquidator.
(D) A claim that is excluded under section 11.5 of this chapter
due to the high net worth of an insured.
(E) Any claim by a person who directly or indirectly controls,
is controlled, or is under common control with an insolvent
insurer on December 31 of the year before the order of
liquidation.
All covered claims filed in the liquidation proceedings shall be
referred immediately to the association by the liquidator for
processing as provided in this chapter.
(5) The term "high net worth insured" means the following:
(A) For purposes of section 11.5(a) of this chapter, an insured
that has a net worth (including the aggregate net worth of the
insured and all subsidiaries and affiliates of the insured,
calculated on a consolidated basis) that exceeds twenty-five
million dollars ($25,000,000) on December 31 of the year
immediately preceding the year in which the insurer becomes
an insolvent insurer.
(B) For purposes of section 11.5(b) of this chapter, an insured
that has a net worth (including the aggregate net worth of the
insured and all subsidiaries and affiliates of the insured,
calculated on a consolidated basis) that exceeds fifty million
dollars ($50,000,000) on December 31 of the year immediately
preceding the year in which the insurer becomes an insolvent
insurer.
(6) The term "insolvent insurer" means (a) a member insurer
holding a valid certificate of authority to transact insurance in this
state either at the time the policy was issued or when the insured
event occurred and (b) against whom a final order of liquidation,
with a finding of insolvency, to which there is no further right of
appeal, has been entered by a court of competent jurisdiction in
the company's state of domicile. "Insolvent insurer" shall not be
construed to mean an insurer with respect to which an order,
decree, judgment or finding of insolvency whether preliminary or
temporary in nature or order to rehabilitation or conservation has
been issued by any court of competent jurisdiction prior to
January 1, 1972 or which is adjudicated to have been insolvent
prior to that date.
(7) The term "member insurer" means any person who is licensed
or holds a certificate of authority under IC 27-1-6-18 or IC 27-1-17-1 to transact in Indiana any kind of insurance for which
coverage is provided under section 3 of this chapter, including the
exchange of reciprocal or inter-insurance contracts. The term
includes any insurer whose license or certificate of authority to
transact such insurance in Indiana may have been suspended,
revoked, not renewed, or voluntarily surrendered. A "member
insurer" does not include farm mutual insurance companies
organized and operating pursuant to IC 27-5.1 other than a
company to which IC 27-5.1-2-6 applies.
(8) The term "net direct written premiums" means direct gross
premiums written in this state on insurance policies to which this
chapter applies, less return premiums thereon and dividends paid
or credited to policyholders on such direct business. "Net direct
premiums written" does not include premiums on contracts
between insurers or reinsurers.
(9) The term "person" means an individual, an aggregation of
individuals, a corporation, a partnership, or another entity.
(b) Notwithstanding any other provision in this chapter, an
insurance policy that is issued by a member insurer and later allocated,
transferred, assumed by, or otherwise made the sole responsibility of
another insurer, pursuant to a state statute providing for the division of
an insurance company or the statutory assumption or transfer of
designated policies and under which there is no remaining obligation
to the transferring entity, shall be considered to have been issued by a
member insurer which is an insolvent insurer for the purposes of this
chapter in the event that the insurer to which the policy has been
allocated, transferred, assumed by, or otherwise made the sole
responsibility of is placed in liquidation.
(c) An insurance policy that was issued by a nonmember insurer and
later allocated, transferred, assumed by, or otherwise made the sole
responsibility of a member insurer under a state statute shall not be
considered to have been issued by a member insurer for the purposes
of this chapter.
Formerly: Acts 1971, P.L.390, SEC.1; Acts 1973, P.L.279,
SEC.1. As amended by Acts 1977, P.L.281, SEC.5; P.L.163-1988,
SEC.2; P.L.8-1993, SEC.422; P.L.255-1995, SEC.7; P.L.129-2003,
SEC.12; P.L.52-2013, SEC.2; P.L.158-2024, SEC.20.