§ 27-9-1-2 — Definitions

Indiana § 27-9-1-2

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 9: SUPERVISION; REHABILITATION
• Ch. 1: General Provisions

Text

As used in IC 27-9:
(a) "Ancillary state" means any state other than a domiciliary state.
(b) "Collateral", for purposes of IC 27-9-3-34.5, means cash, a letter
of credit, a surety bond, or another form of security posted by an
insured, a captive insurer, or reinsurer, to secure the insured's
obligation to:
(1) pay deductible claims or to reimburse the insurer for
deductible claim payments under a large deductible policy; or
(2) reimburse or pay the insurer as required for other secured
obligations.
(c) "Commercially reasonable" means:
(1) acting in good faith according to prevailing industry practices;
and
(2) making all reasonable efforts considering the facts and
circumstances of a matter.
(d) "Commissioner" refers to the insurance commissioner.
(e) "Creditor" means a person having a claim, whether matured or
unmatured, liquidated or unliquidated, secured or unsecured, absolute,
fixed or contingent.
(f) "Deductible claim" means a claim under a large deductible
policy that does not exceed the deductible. The term includes a claim
for loss, defense, and (unless excluded) cost containment expense.
(g) "Delinquency proceeding" means:
(1) any proceeding instituted against an insurer for the purpose of
liquidating, rehabilitating, reorganizing, or conserving that
insurer; and
(2) any summary proceeding under IC 27-9-2-1 or IC 27-9-2-2.
(h) "Doing business" includes the following acts, whether effected
by mail or otherwise:
(1) The issuance or delivery of contracts of insurance to persons
resident in Indiana.
(2) The solicitation of applications for contracts or other
negotiations preliminary to the execution of contracts.
(3) The collection of premiums, membership fees, assessments,
or other consideration for contracts.
(4) The transaction of matters subsequent to execution of
contracts and arising out of them.
(5) Operating under a license or certificate of authority, as an
insurer, issued by the insurance department.
(i) "Domiciliary state" means the state in which an insurer is
incorporated or organized, or, in the case of an alien insurer, its state
of entry.
(j) "Fair consideration" is given for property or obligation:
(1) when in exchange for that property or obligation, as a fair
equivalent for it, and in good faith, property is conveyed or
services are provided or an obligation is incurred or an antecedent
debt is satisfied; or
(2) when that property or obligation is received in good faith to
secure a present advance or antecedent debt in amount not
disproportionately small as compared to the value of the property
or obligation obtained.
(k) "Foreign guaranty association" refers to a guaranty association
similar to those listed in subsection (n) established in any state.
(l) "Formal delinquency hearing" means any liquidation or
rehabilitation proceeding.
(m) "General assets" means all property not specifically mortgaged,
pledged, deposited, or otherwise encumbered for the security or benefit
of specified persons or classes of persons. As to specifically
encumbered property, "general assets" includes all such property or its
proceeds in excess of the amount necessary to discharge the sum or
sums secured by that property. Assets held in trust and on deposit for
the security or benefit of all policyholders or all policyholders and
creditors, in more than a single state, shall be treated as general assets.
(n) "Guaranty association" includes an association established
under:
(1) IC 27-6-8, the insurance guaranty association law; or
(2) IC 27-8-8, the life and health guaranty association law.
(o) "Insolvency" or "insolvent" means:
(1) for an insurer issuing only assessable fire insurance policies:
(A) the inability of the insurer to pay any obligation within
thirty (30) days after it becomes payable; or
(B) if an assessment be made within thirty (30) days after the
date an obligation becomes payable, the inability of the insurer
to pay that obligation thirty (30) days following the date
specified in the first assessment notice issued after the date of
loss; and
(2) for all other insurers when:
(A) the insurer is unable to pay its obligations when they are
due; or
(B) the insurer's admitted assets do not exceed its liabilities,
plus the greater of:
(i) any capital and surplus required by law for its
organization; or
(ii) the total par or stated value of its authorized and issued
capital stock.
For purposes of this subsection, "liabilities" include reserves required
by law or by regulation.
(p) "Insurer" means any person who:
(1) has done, purports to do, is doing, or is licensed to do
insurance business; and
(2) is subject to the authority of any insurance commissioner as to
liquidation, rehabilitation, reorganization, supervision, or
conservation.
For purposes of IC 27-9, other persons included under section 1 of this
chapter shall be considered to be insurers.
(q) "Large deductible policy" means a combination of worker's
compensation policies or endorsements, or both, issued to an insured
and contracts or security agreements entered into between the insured
and insurer in which the insured has agreed to pay directly, or
reimburse the insurer for the insurer's payment of, the:
(1) initial part of a claim under the policy; or
(2) expenses related to a claim;
up to a specified dollar amount. The term includes a policy that
contains, in addition to a per claim limit, an aggregate limit on the
insured's liability for all deductible claims. The term also includes a
policy with a deductible of at least fifty thousand dollars ($50,000).
The term does not include a policy, an endorsement, or an agreement
under which the initial part of a claim is self-insured and the insurer is
not obligated to pay any part of the self-insured retention. The term also
does not include a policy that provides for retrospectively rated
premium payments or a reinsurance agreement, except to the extent
that a reinsurance agreement assumes, secures, or pays the insured's
large deductible obligations.
(r) "Other secured obligations", for purposes of IC 27-9-3-34.5,
means obligations of an insured to an insurer other than obligations
under a large deductible policy. The term includes obligations under a
reinsurance agreement or another agreement that involves retrospective
premium obligations the performance of which is secured by collateral
that also secures an insured's obligations under a large deductible
policy.
(s) "Preferred claim" means any claim with respect to which the
terms of IC 27-9 accord priority of payment from the general assets of
the insurer.
(t) "Receiver" includes liquidator, rehabilitator, or conservator.
(u) "Reciprocal state" means any state other than Indiana in which:
(1) in substance and effect IC 27-9-3-7(a), IC 27-9-4-3, IC 27-9-4-4, and IC 27-9-4-6 through IC 27-9-4-8 are in force;
(2) provisions are in force requiring that the commissioner (or
equivalent official) be the receiver of a delinquent insurer; and
(3) some provision exists for the avoidance of fraudulent
conveyances and preferential transfers.
(v) "Secured claim" means any claim secured by mortgage, trust
deed, pledge, deposit as security, escrow, or otherwise, but not
including special deposit claims or claims against general assets. The
term also includes claims which have become liens upon specific assets
by reason of judicial process.
(w) "Special deposit claim" means any claim secured by a deposit
made under law for the security or benefit of a limited class or classes
of persons, but not including any claim secured by general assets.
(x) "State" includes the District of Columbia and all other territories
of the United States.
(y) "Transfer" includes all methods of disposing with any interest in
property or with the possession of that property, or of fixing a lien upon
property, or upon an interest in property, absolutely or conditionally,
voluntarily, by or without judicial proceedings. The retention of a
security title to property delivered to a debtor shall be considered a
transfer made by the debtor.
As added by Acts 1979, P.L.255, SEC.1. Amended by
P.L.72-2016, SEC.22.