§ 27-7-9-9 — Reinsurance; terms; ceding commission

(a) An insurer making the type of insurance
described in Class 3(a) of IC 27-1-5-1 shall enter into a reinsurance
agreement with the commissioner. The reinsurance agreement must
include the following terms:
(1) The insurer agrees to cede to the commissioner one hundred
percent (100%) of any mine subsidence coverage issued under
this chapter, subject to a maximum limit of five hundred thousand
dollars ($500,000) per structure insured.
(2) The insurer shall collect the premiums for mine subsidence
insurance, may retain a ceding commission in an amount set by
the commissioner, and shall remit the remainder of the premiums
to the commissioner for deposit in the mine subsidence insurance
fund.
(3) The insurer, in consideration of the ceding commission, shall:
(A) undertake the adjustment of losses under the mine
subsidence coverage issued under this chapter by the insurer,
with technical assistance provided under section 9.5 of this
chapter; and
(B) pay the taxes and absorb all other expenses necessarily
incurred by the insurer in the sale of policies and the
administration of the mine subsidence insurance program under
this chapter.
(4) The commissioner shall reimburse the insurer from the mine
subsidence insurance fund for all amounts paid to policyholders
for mine subsidence insurance claims.
(5) The insurer is not required to pay a claim for any mine
subsidence loss insured under this chapter if the amount available
in the mine subsidence insurance fund is insufficient to reimburse
the insurer for the claim.
(b) The determination of the commissioner as to the amount of the
ceding commission that an insurer may retain under subsection (a)(2)
must be based on a consideration of the insurer's reasonable
administrative costs (including insurance producers' commissions).

Legislative History

As added by P.L.164-1986, SEC.1. Amended by P.L.150-1990, SEC.3; P.L.124-1992, SEC.7; P.L.189-1996, SEC.1; P.L.182-2001, SEC.4; P.L.178-2003, SEC.48; P.L.35-2015, SEC.1.