§ 27-8-8-9 — Detection and prevention of insurer insolvencies or impairments; actions of board of directors

Indiana § 27-8-8-9

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 8: LIFE, ACCIDENT, AND HEALTH
• Ch. 8: Indiana Life and Health Insurance Guaranty Association

Text

(a) To aid in the detection and prevention of
member insurer insolvencies or impairments, the commissioner shall
do the following:
(1) Notify the insurance regulatory authorities of all the other
states not more than thirty (30) days after the date an action taken
by the commissioner occurs when the commissioner takes any of
the following actions against a member insurer:
(A) Revokes the member insurer's certificate of authority.
(B) Suspends the member insurer's certificate of authority.
(C) Issues a formal order that the member insurer restrict its
premium writing, obtain additional contributions to surplus,
withdraw from Indiana, reinsure all or any part of its business,
or increase capital, surplus, or any other account for the security
of policy owners or creditors.
(2) Report to the association when the commissioner takes any of
the actions set forth in subdivision (1) or when the commissioner
has received a report from any other insurance regulatory
authority indicating that an action has been taken in another state.
The report to the association must contain all significant details
of the action taken or of the report received from another
insurance regulatory authority.
(3) Report to the association when the commissioner has
reasonable cause to believe from an examination, whether
completed or in process, of a member insurer that the member
insurer may be impaired or insolvent.
(4) Furnish to the association the NAIC Insurance Regulatory
Information System (IRIS) ratios and listings of companies not
included in the ratios developed by the National Association of
Insurance Commissioners. The association may use the
information contained in the ratios and listings in carrying out its
duties and responsibilities under this chapter. The report and the
information contained in the report must be kept confidential by
the association until made public by the commissioner or other
lawful authority.
(b) The commissioner may seek the advice and recommendations
of the association concerning a matter affecting the commissioner's
duties and responsibilities in regard to the financial condition of
member insurers and insurers seeking admission to transact insurance
business in Indiana.
(c) The association may, upon majority vote by the board, make
reports and recommendations to the commissioner on any matter
germane to the solvency, liquidation, rehabilitation, or conservation of
a member insurer or germane to the solvency of any insurer seeking to
do an insurance business in Indiana. The reports and recommendations
are not public documents.
(d) The association may, upon majority vote by the board, notify the
commissioner of any information indicating that a member insurer may
be impaired or insolvent.
(e) The association may, upon majority vote by the board, make
recommendations to the commissioner for the detection and prevention
of member insurer insolvencies.
As added by Acts 1978, P.L.129, SEC.3. Amended by
P.L.193-2006, SEC.23; P.L.208-2018, SEC.21.