(a)Whenever the commissioner has reasonable
cause to believe, and determines, after a hearing held under IC 4-21.5-3, that any domestic insurer has committed or engaged in, or is
about to commit or engage in, any act, practice, or transaction that
would subject it to a delinquency proceeding under IC 27-9-3-1 or IC 27-9-3-6, the commissioner may make and serve upon the insurer and
any other persons involved, any orders reasonably necessary to correct,
eliminate, or remedy that conduct, condition, or ground.
(b)If the commissioner has reasonable cause to believe that any
domestic insurer is in such condition as to render the continuance of its
business hazardous to the public or to holders of its policies or
certificates of insurance, or if that domestic insurer gives its consent,
the com
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(a) Whenever the commissioner has reasonable
cause to believe, and determines, after a hearing held under IC 4-21.5-3, that any domestic insurer has committed or engaged in, or is
about to commit or engage in, any act, practice, or transaction that
would subject it to a delinquency proceeding under IC 27-9-3-1 or IC 27-9-3-6, the commissioner may make and serve upon the insurer and
any other persons involved, any orders reasonably necessary to correct,
eliminate, or remedy that conduct, condition, or ground.
(b) If the commissioner has reasonable cause to believe that any
domestic insurer is in such condition as to render the continuance of its
business hazardous to the public or to holders of its policies or
certificates of insurance, or if that domestic insurer gives its consent,
the commissioner shall upon his determination issue an order:
(1) notifying the insurer of his determination; and
(2) providing the insurer with a written list of the commissioner's
requirements to correct its business practices.
(c) If the commissioner makes a determination to supervise an
insurer subject to an order under subsection (a) or (b), the
commissioner shall notify the insurer that it is under the supervision of
the commissioner. If the insurer is a reorganized insurer under IC 27-14
(before its repeal) or IC 27-14.5, the commissioner may also determine
to supervise the mutual insurance holding company that is affiliated
with the reorganized insurer, regardless of whether another basis exists
for supervising the mutual insurance holding company. If the
commissioner makes a determination to supervise a mutual insurance
holding company, the commissioner shall notify the mutual insurance
holding company that it is under the supervision of the commissioner.
(d) During the period of supervision, the commissioner may appoint
a supervisor to supervise the insurer. The order appointing a supervisor
must direct the supervisor to enforce orders issued under subsection (a)
or (b). The order may also provide that the insurer may not do any of
the following things, during the period of supervision, without the prior
approval of the commissioner or his supervisor:
(1) Dispose of, convey, or encumber any of its assets or its
business in force.
(2) Withdraw funds from any of its bank accounts.
(3) Lend any of its funds.
(4) Invest any of its funds.
(5) Transfer any of its property.
(6) Incur any debt, obligation, or liability.
(7) Merge or consolidate with another company.
(8) Enter into any new reinsurance contract or agreement.
(9) Restrict the writing of new business on the renewal of existing
business.
(e) Any insurer subject to an order under this section must comply
with the lawful requirements of the commissioner and, if placed under
supervision, has sixty (60) days from the date the supervision order is
served within which to comply with the requirements of the
commissioner. In the event of the insurer's failure to comply within
those time requirements, the commissioner may institute proceedings
under IC 27-9-3-1 or IC 27-9-3-6 to have a rehabilitator or liquidator
appointed, or extend the period of supervision.
(f) During the period of supervision, the insurer may request the
commissioner to review any action taken or proposed to be taken by the
supervisor, specifying the reason the action complained of is believed
not to be in the best interest of the insurer.
(g) If a person violates a supervision order issued under this section,
he is civilly liable up to ten thousand dollars ($10,000).
(h) The commissioner may apply for and the Marion County circuit
court may grant, under IC 4-21.5-6, orders as are necessary and proper
to enforce a supervision order.
(i) In the event that a person subject to this article knowingly
violates any valid order of the commissioner issued under this section
and, as a result of that violation, the net worth of the insurer is reduced
or the insurer suffers loss it would not otherwise have suffered, that
person is personally liable to the insurer for the amount of that
reduction or loss. The commissioner or supervisor is authorized to
bring an action on behalf of the insurer in the Marion County circuit
court to recover the amount of the reduction or loss together with any
costs.
As added by Acts 1979, P.L.255, SEC.1. Amended by
P.L.7-1987, SEC.155; P.L.5-2000, SEC.2; P.L.226-2023,
SEC.25.