§ 27-9-3-1 — Petition to rehabilitate insurer

The commissioner may apply by petition to the
Marion County circuit court for an order authorizing him to rehabilitate
a domestic insurer or an alien insurer domiciled in Indiana on any one
(1) of the following grounds:
(1) The insurer is in a condition that the further transaction of
business would be hazardous, financially, to its policyholders,
creditors, or the public.
(2) There is reasonable cause to believe that there has been
embezzlement from the insurer, wrongful sequestration or
diversion of the insurer's assets, forgery or fraud affecting the
insurer, or other illegal conduct in, by, or with respect to the
insurer that if established would endanger assets in an amount
threatening the solvency of the insurer.
(3) The insurer has failed to remove any person who in fact has
executive authority in the insurer, whether an officer, manager,
general agent, employee, or other person, if the person has been
found after notice and hearing by the commissioner under IC 4-21.5-3 to be dishonest or untrustworthy in a way affecting the
insurer's business.
(4) Control of the insurer, whether by stock ownership or
otherwise, and whether direct or indirect, is in a person found
after notice and hearing under IC 4-21.5-3 to be untrustworthy.
(5) Any person who in fact has executive authority in the insurer,
whether an officer, manager, general agent, director or trustee,
employee, or other person, has refused to be examined under oath
by the commissioner concerning its affairs, whether in Indiana or
elsewhere, and after reasonable notice of the fact the insurer has
failed promptly and effectively to terminate the employment and
status of the person and all his influence on management.
(6) After demand by the commissioner under this article or IC 27-1-3, the insurer has failed to promptly make available for
examination any of its own property, books, accounts, documents,
or other records, or those of any subsidiary or related company
within the control of the insurer, or those of any person having
executive authority in the insurer so far as they concern the
insurer.
(7) Without first obtaining the written consent of the
commissioner, the insurer has transferred, or attempted to
transfer, in a manner contrary to IC 27-1-23 or IC 27-6,
substantially all of its entire property or business, or has entered
into any transaction the effect of which is to merge, consolidate,
or reinsure substantially its entire property or business in or with
the property or business of any other person.
(8) The insurer or its property has been or is the subject of an
application for the appointment of a receiver, trustee, custodian,
conservator, or sequestrator or similar fiduciary of the insurer or
its property otherwise than as authorized under this title, and the
appointment has been made or is imminent, and the appointment
might:
(A) remove the insurer from the jurisdiction of the Indiana
courts; or
(B) prejudice orderly delinquency proceedings under this
article.
(9) Within the previous four (4) years the insurer has willfully
violated its charter or articles of incorporation, its bylaws, this
title, or any valid order of the commissioner under IC 27-9-2-1.
(10) The insurer has failed to pay within sixty (60) days after the
due date any obligation to any state or any political subdivision of
any state or any judgment entered in any state, if the court in
which the judgment was entered had jurisdiction over the subject
matter. However, nonpayment shall not be a ground until sixty
(60) days after any good faith effort by the insurer to contest the
obligation has been terminated, whether it is before the
commissioner or in the courts, or the insurer has systematically
attempted to compromise or renegotiate previously agreed
settlements with its creditors on the ground that it is financially
unable to pay its obligations in full.
(11) The insurer has failed to file its annual report or other
financial report required by law and, after written demand by the
commissioner, has failed to immediately give an adequate
explanation.
(12) The board of directors or the holders of a majority of the
shares entitled to vote, or a majority of those individuals entitled
to the control of those entities, request or consent to rehabilitation
under this article.
(13) The insurer is a mutual insurance holding company under IC 27-14 (before its repeal) or IC 27-14.5 and a reorganized
insurance company that is affiliated with the mutual insurance
holding company and is or has been the subject of a petition for
an order authorizing the commissioner to rehabilitate the
reorganized insurance company under this section or to liquidate
the reorganized insurance company under section 6 of this
chapter, regardless of whether another basis exists for petitioning
for rehabilitation of the mutual insurance holding company.
As added by Acts 1979, P.L.255, SEC.1. Amended by
P.L.7-1987, SEC.156; P.L.5-2000, SEC.3; P.L.226-2023,
SEC.26.