§ 27-7-2-20.3 — Minimum premiums or rates; disapproval

Indiana § 27-7-2-20.3

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 7: SPECIAL TYPES OF INSURANCE
• Ch. 2: Worker's Compensation

Text

3. (a) Minimum premiums or rates may be
disapproved at the following times:
(1) At any time subsequent to the effective date.
(2) Before the effective date.
(b) Minimum premiums or rates may be disapproved for any of the
following reasons:
(1) If the company fails to comply with the filing requirements
under section 20.2 of this chapter.
(2) If the commissioner finds that the minimum premium or rate
is excessive, inadequate, or unfairly discriminatory.
(c) The following procedure shall be used for disapproval of
minimum premiums or rates:
(1) The commissioner may disapprove, without hearing, minimum
premiums or rates filed under section 20.2 or 28.1 of this chapter
that have not become effective. However, the bureau or a
company whose minimum premiums or rates have been
disapproved shall be given a hearing upon a written request made
within thirty (30) days after the date of the disapproval order.
(2) Every company or the bureau shall provide within Indiana
reasonable means whereby any person aggrieved by the
application of its filings may be heard on written request to
review the manner in which such rating system has been applied
in connection with the insurance afforded or offered. If the
company or the bureau fails to grant or reject such request within
thirty (30) days, the aggrieved person may proceed in the same
manner as if the request had been rejected. Any aggrieved person
affected by the action of such company or the bureau on such
request may, within thirty (30) days after written notice of such
action, appeal to the commissioner who, after a hearing held upon
not less than ten (10) days written notice to the aggrieved person
and to such company or the bureau, may affirm, modify, or
reverse such action.
(d) If the commissioner disapproves a minimum premium or rate,
the commissioner shall issue an order specifying in what respects
minimum premium or the rate fails to meet the requirements of this
chapter and stating when within a reasonable period thereafter such
minimum premium or rate shall be discontinued for any policy issued
or renewed after a date specified in the order. The order shall be issued
within thirty (30) days after the close of the hearing or within such
reasonable time extension as the commissioner may fix. Such order
may include a provision for premium adjustment for the period after
the effective date of the order for policies in effect on such date.
(e) Whenever a company has no legally effective minimum
premiums or rates as a result of the commissioner's disapproval of
minimum premiums or rates or other act, the commissioner shall
specify interim minimum premiums or rates for the company that are
adequate to protect the interests of all parties and may order that a
specified portion of the premiums be placed in an escrow account
approved by the commissioner. When new minimum premiums or rates
become legally effective, the commissioner shall order the escrowed
funds or any overcharge in the interim minimum premiums or rates to
be distributed appropriately, except that refunds of less than ten dollars
($10) per policyholder shall not be required.

Legislative History

As added by P.L.249-1989, SEC.11.