CHAPTER 22. REGULATION OF INSURANCE RATES
IC 27-1-22
Chapter 22. Regulation of Insurance Rates
IC 27-1-22-1
Purpose
Sec. 1. The purpose of this chapter is to promote the public
welfare by empowering the commissioner of insurance to regulate
insurance rates to the end that they shall not be excessive,
inadequate, or unfairly discriminatory, and to encourage reasonable
competition among insurance companies (referred to in this chapter
as insurers) and to permit and regulate, but not require, cooperative
action among insurers as to rates, rating systems, rating plans and
practices, and other matters within the scope of this chapter. This
chapter shall be liberally interpreted to carry into effect the
provisions of this section.
(Formerly: Acts 1967, c.133, s.1.) As amended by P.L.252-1985,
SEC.104.
IC 27-1-22-2
Application of act; exceptions; "inland marine insurance" defined
Sec. 2. (a) This chapter applies to all forms of casualty insurance
including fidelity, surety, and guaranty bonds, to all forms of motor
vehicle insurance, to all forms of fire, marine, and inland marine
insurance, and to any and all combinations of the foregoing or parts
thereof, on risks or operations in this state, except:
(1) reinsurance, other than joint reinsurance to the extent stated
in section 14 of this chapter;
(2) accident and health insurance;
(3) insurance of vessels or craft, their cargoes, marine builders'
risks, marine protection and indemnity, or other risks commonly
insured under marine, as distinguished from inland marine,
insurance policies;
(4) insurance against loss or damage to aircraft or against
liability arising out of the ownership, maintenance, or use of
aircraft;
(5) worker's compensation insurance; and
(6) abstract and title insurance.
(b) Inland marine insurance includes insurance defined by statute,
or by interpretation of statute, or if not so defined or interpreted, by
ruling of the commissioner of insurance (referred to as the
commissioner), or as established by general custom of the business,
as inland marine insurance.
(Formerly: Acts 1967, c.133, s.2.) As amended by P.L.252-1985,
SEC.105; P.L.28-1988, SEC.79; P.L.129-2003, SEC.5.
IC 27-1-22-2.5
"Commercial policyholder" defined
Sec. 2.5. As used in this chapter, "commercial policyholder"
means a business, nonprofit, or governmental entity that purchases
a policy of commercial insurance through an insurance producer
licensed under IC 27-1-15.6 or IC 27-1-15.8.
As added by P.L.268-1999, SEC.11. Amended by P.L.132-2001,
SEC.6; P.L.178-2003, SEC.21; P.L.193-2006, SEC.7.
IC 27-1-22-3
Guidelines for establishing rates; uniformity; fleet or fleet policy
Sec. 3. (a) Rates shall be made in accordance with the following
provisions:
(1) Due consideration shall be given to the past and prospective
loss experience within and outside this state, to conflagration
and catastrophe hazards, if any, to a reasonable margin for
underwriting profit and contingencies, to dividends or savings
allowed or returned by insurers to their policyholders or
members, to past and prospective expenses both countrywide
and those specifically applicable to this state, to all other
relevant factors, including trend factors, within and outside this
state, and in the case of fire insurance rates, to the underwriting
experience of the fire insurance business during a period of not
less than the most recent five (5) year period for which such
experience is available and relevant.
(2) Risks may be grouped by classifications, by rating
schedules, or by any other reasonable methods, for the
establishment of rates and minimum premiums. Classification
rates may be modified to produce rates for individual risks in
accordance with rating plans which establish standards for
measuring variations in hazards or expense provisions, or both.
Such standards may measure any difference among risks that
can be demonstrated to have a probable effect upon losses or
expenses.
(3) The systems of expense provisions included in the rates for
use by any insurer or group of insurers may differ from those of
other insurers or groups of insurers to reflect the requirements
of the operating methods of any such insurer or group with
respect to any kind of insurance, or with respect to any
subdivision or combination thereof for which subdivision or
combination separate expense provisions are applicable.
(4) Rates shall not be excessive, inadequate, or unfairly
discriminatory.
No rate shall be held to be excessive unless such rate is unreasonably
high for the insurance coverage provided and a reasonable degree of
competition does not exist in the area with respect to the
classification to which such rate is applicable. No rate shall be held
to be inadequate unless such rate is unreasonably low for the
insurance coverage provided and is insufficient to sustain projected
losses and expenses, or unless such rate is unreasonably low for the
insurance coverage provided and the use of such rate has, or if
continued, will have, the effect of destroying competition or creating
a monopoly.
(b) Except to the extent necessary to meet the provisions of
subsection (a)(4), uniformity among insurers in any matters within
the scope of this section is neither required nor prohibited.
(c) For the purpose of making rates upon automobiles and other
motor vehicles under the provisions of this chapter, the terms "fleet"
or "fleet policy" shall mean an insurance risk of five (5) or more
automobiles and other vehicles of any kind, all owned by one (1)
insured and all under one (1) direct operating management; provided,
that automobiles and other motor vehicles owned by employees may
not be included or insured under a fleet policy of an employer under
any circumstances.
(Formerly: Acts 1967, c.133, s.3.) As amended by P.L.252-1985,
SEC.106.
IC 27-1-22-3.1
Senior citizens participating in motor vehicle accident prevention
courses; reduced premiums
Sec. 3.1. (a) As used in this section, "motor vehicle insurance"
means any type of insurance described in IC 27-1-5-1, Class 2(f).
(b) A motor vehicle insurance rate filed under section 4 of this
chapter may provide for an appropriate reduction in premium charges
for a policy if the principal operator of the motor vehicle covered
under the policy:
(1) is at least fifty-five (55) years of age; and
(2) has, within three (3) years before the issuance or renewal of
the policy, successfully completed a motor vehicle accident
prevention course approved by the bureau of motor vehicles.
(c) A reduction in premium charges need not be provided under
this section if the principal operator of the motor vehicle covered
under the policy participated in the motor vehicle accident
prevention course under the order of a court.
(d) This section does not prevent an insurer from withholding or
rescinding the reduction in premium charges for a motor vehicle
insurance policy if the principal operator of the motor vehicle
covered under the policy is involved in a motor vehicle accident for
which the principal operator is at fault.
As added by P.L.121-1989, SEC.11.
IC 27-1-22-4
Rate filings; exemptions; procedure and requirements; rules;
inspection; notice of changes
Sec. 4. (a) Every insurer shall file with the commissioner every
manual of classifications, rules, and rates, every rating schedule,
every rating plan, and every modification of any of the foregoing
which it proposes to use.
(b) The following types of insurance are exempt from the
requirements of subsections (a) and (j):
(1) Inland marine risks, which by general custom of the
business are not written according to manual rates or rating
plans.
(2) Insurance that is:
(A) written by an insurer that:
(i) complies with subsection (m) and maintains at least a
B rating by A.M. Best or an equivalent rating by another
independent insurance rating organization; or
(ii) is approved for an exemption by the commissioner;
and
(B) issued to commercial policyholders.
(c) Every such filing shall indicate the character and extent of the
coverage contemplated and shall be accompanied by the information
upon which the filer supports such filing.
(d) The information furnished in support of a filing may include:
(1) the experience and judgment of the insurer or rating
organization making the filing;
(2) its interpretation of any statistical data it relies upon;
(3) the experience of other insurers or rating organizations; or
(4) any other relevant factors.
The commissioner shall have the right to request any additional
relevant information. A filing and any supporting information shall
be open to public inspection as soon as stamped "filed" within a
reasonable time after receipt by the commissioner, and copies may
be obtained by any person on request and upon payment of a
reasonable charge therefor.
(e) Filings shall become effective upon the date of filing by
delivery or upon date of mailing by registered mail to the
commissioner, or on a later date specified in the filing.
(f) Specific inland marine rates on risks specially rated, made by
a rating organization, shall be filed with the commissioner.
(g) Any insurer may satisfy its obligation to make any such filings
by becoming a member of, or a subscriber to, a licensed rating
organization which makes such filings and by authorizing the
commissioner to accept such filings on its behalf, provided that
nothing contained in this chapter shall be construed as requiring any
insurer to become a member of or a subscriber to any rating
organization or as requiring any member or subscriber to authorize
the commissioner to accept such filings on its behalf.
(h) Every insurer which is a member of or a subscriber to a rating
organization shall be deemed to have authorized the commissioner
to accept on its behalf all filings made by the rating organization
which are within the scope of its membership or subscribership,
provided:
(1) that any subscriber may withdraw or terminate such
authorization, either generally or for individual filings, by
written notice to the commissioner and to the rating
organization and may then make its own independent filings for
any kinds of insurance, or subdivisions, or classes of risks, or
parts or combinations of any of the foregoing, with respect to
which it has withdrawn or terminated such authorization, or
may request the rating organization, within its discretion, to
make any such filing on an agency basis solely on behalf of the
requesting subscriber; and
(2) that any member may proceed in the same manner as a
subscriber unless the rating organization shall have adopted a
rule, with the approval of the commissioner:
(A) requiring a member, before making an independent
filing, first to request the rating organization to make such
filing on its behalf and requiring the rating organization,
within thirty (30) days after receipt of such request, either:
(i) to make such filing as a rating organization filing;
(ii) to make such filing on an agency basis solely on behalf
of the requesting member; or
(iii) to decline the request of such member; and
(B) excluding from membership any insurer which elects to
make any filing wholly independently of the rating
organization.
(i) Under such rules as the commissioner shall adopt, the
commissioner may, by written order, suspend or modify the
requirement of filing as to any kinds of insurance, or subdivision, or
classes of risk, or parts or combinations of any of the foregoing, the
rates for which can not practicably be filed before they are used.
Such orders and rules shall be made known to insurers and rating
organizations affected thereby. The commissioner may make such
examination as the commissioner may deem advisable to ascertain
whether any rates affected by such order are excessive, inadequate,
or unfairly discriminatory.
(j) Upon the written application of the insured, stating the
insured's reasons therefor, filed with the commissioner, a rate in
excess of that provided by a filing otherwise applicable may be used
on any specific risk.
(k) An insurer shall not make or issue a policy or contract except
in accordance with filings which are in effect for that insurer or in
accordance with the provisions of this chapter. Subject to the
provisions of section 6 of this chapter, any rates, rating plans, rules,
classifications, or systems in effect on May 31, 1967, shall be
continued in effect until withdrawn by the insurer or rating
organization which filed them.
(l) The commissioner shall have the right to make an investigation
and to examine the pertinent files and records of any insurer,
insurance producer, or insured in order to ascertain compliance with
any filing for rate or coverage which is in effect. The commissioner
shall have the right to set up procedures necessary to eliminate
noncompliance, whether on an individual policy, or because of a
system of applying charges or discounts which results in failure to
comply with such filing.
(m) This subsection applies to an insurer that issues a commercial
property or commercial casualty insurance policy to a commercial
policyholder. Not more than thirty (30) days after the insurer begins
using a commercial property or commercial casualty insurance:
(1) rate;
(2) rating plan;
(3) manual of classifications;
(4) form; or
(5) modification of an item specified in subdivision (1), (2), (3),
or (4);
the insurer shall file with the department, for informational purposes
only, the item specified in subdivision (1), (2), (3), (4), or (5). Use of
an item specified in subdivision (1), (2), (3), (4), or (5) is not
conditioned on review or approval by the department. This
subsection does not require filing of an individual policy rate if the
original manuals, rates, and rules for the insurance plan or program
to which the individual policy conforms has been filed with the
department.
(n) An insurer that issues a commercial property or commercial
casualty insurance policy form, endorsement, or rider that is prepared
to provide or exclude coverage for an unusual or extraordinary risk
of a particular commercial policyholder must maintain the policy
form, endorsement, or rider in the insurer's Indiana office and
provide the policy form, endorsement, or rider to the commissioner
at the commissioner's request.
(o) If coverage under a commercial property or commercial
casualty insurance policy is changed, upon renewal of the policy, the
insurer shall provide to the policyholder and insurance producer
through which the policyholder obtains the coverage a written notice
that the policy has been changed.
(Formerly: Acts 1967, c.133, s.4.) As amended by P.L.252-1985,
SEC.107; P.L.268-1999, SEC.12; P.L.178-2003, SEC.22;
P.L.193-2006, SEC.8; P.L.173-2007, SEC.16.
IC 27-1-22-5
Hearing on question of compliance with filing requirements;
finding and order
Sec. 5. (a) Upon the commissioner's motion, or upon written
request by any insured affected thereby or by any licensed insurance
producer or broker, if such request is made in good faith and states
reasonable grounds, the commissioner, if the commissioner shall
have reason to believe that any filing is not in compliance with the
applicable provisions of section 3 of this chapter, or in the case of an
alleged violation of section 6 of the chapter if the commissioner finds
on the basis of the information on file with the department that there
has been a prima facie showing of a violation of that section, shall
hold a hearing upon not less than ten (10) days written notice to the
rating organization or insurer which made the filing in issue,
specifying the items and matters to be considered and stating in what
manner and to what extent noncompliance is alleged to exist. No
other matter or subject shall be considered at such hearing. Only the
rating organization or insurer which made such filing and the
commissioner may be parties to any hearing or to any judicial appeal
resulting therefrom. Within a reasonable time, the commissioner
shall notify every person making request as to the decision as to the
validity of the request and subsequently shall notify every such
person of any action which may thereafter be taken with reference to
such request.
(b) If, after such hearing, the commissioner finds, based upon a
preponderance of the evidence adduced at such hearing and made a
part of the record thereof, that such filing is not in compliance with
the provisions of section 3 of this chapter, the commissioner shall
immediately issue a written order to the parties specifying in detail
in what respects and upon what evidence such noncompliance exists
and stating when, within a reasonable period thereafter, such filing
shall be deemed no longer effective. Said order shall not affect any
contract policy made or issued prior to the expiration of the period
set forth in said order.
(c) If after such hearing the commissioner finds that such filing
does not violate the provisions of section 3 of this chapter, the
commissioner shall immediately issue a written order to the parties
dismissing the proceedings.
(d) The finding and order of the commissioner shall be made
within ninety (90) days after the close of such hearing or within such
reasonable time extensions as may be fixed by the commissioner.
(e) No manual of classifications, rule, rate, rating schedule, rating
plan, or any modification of any of the foregoing which establishes
standards for measuring variations in hazards or expense provisions,
or both, which has been filed pursuant to section 4 of this chapter
shall be disapproved if the rates produced thereby meet the
requirements of section 3 of this chapter.
(f) All actions of the commissioner under this chapter and all
appeals from the commissioner's action shall be governed by
IC 4-21.5, except where a different specific provision is made in this
chapter.
(Formerly: Acts 1967, c.133, s.5; Acts 1971, P.L.1, SEC.9.) As
amended by P.L.252-1985, SEC.108; P.L.7-1987, SEC.140;
P.L.178-2003, SEC.23.
IC 27-1-22-6
Bad faith filing; burden of proof; order to rewrite policies at
approved rate
Sec. 6. (a) A "bad-faith filing", as used in this chapter, means a
rate filing made by any filer who, in bad faith, files a rate which it
knows, or should know, is grossly inadequate for the insurance
coverage provided, and which is filed and used for the purpose of
unfairly obtaining a particular risk or limited group of risks, and
which is available only to such risk or limited group of risks.
(b) At any hearing conducted under this section, the burden shall
be on the filer to prove that such filing is not in violation of this
section. If, after such hearing, the commissioner finds that the filer
has failed to prove that such filing is not in violation of this section,
based on the evidence adduced at the hearing and made a part of the
record, he may order all policies written under such bad-faith filing
to be rewritten at an approved rate from the date of the inception of
such policies of insurance, or all such policies shall be cancelled pro
rata in accordance with the policy provisions.
(c) Nothing in this section shall be deemed to supersede the
provisions set forth in section 24 of this chapter.
(Formerly: Acts 1967, c.133, s.6.) As amended by P.L.252-1985,
SEC.109.
IC 27-1-22-7
Rate adjustment filing or deviation; effectiveness unless
disapproved; hearing; approval or disapproval
Sec. 7. (a) When a filing or deviation involving a rate adjustment
depends upon a change in the relationship between the proposed
rates and the anticipated production expense portion thereof from the
relationship anticipated under any rates previously filed and currently
in effect for the company or rating organization involved, such filing
or deviation shall be subject to the provisions of subsection (b).
(b) Each filing or deviation subject to this section shall be on file
for a waiting period of twenty (20) days before it becomes effective.
If within such waiting period or after hearing as provided in this
section, the commissioner finds that the filing or deviation does not
meet the requirements of this chapter, the commissioner shall send
to the insurer or rating organization which made the filing or to the
insurer which filed the deviation written notice of disapproval
specifying therein in what respects the filing or deviation fails to
meet the requirements of this chapter and stating that the same shall
not become effective. Such filing or deviation shall be deemed to
meet the requirements of this act unless disapproved:
(1) within such waiting period; or
(2) if a hearing has been called and written notice thereof given
by the commissioner during such waiting period, then within
ten (10) days after the date of commencement of such hearing.
Upon the commissioner's own motion, or upon timely written request
by any insurance producer or broker of the company or companies to
which such filing or deviation is applicable, if such request is in good
faith and states reasonable grounds, the commissioner may at any
time within the waiting period call a hearing upon not less than ten
(10) nor more than fifteen (15) days written notice to the company or
rating organization making the filing or to the company filing the
deviation. Within ten (10) days after the commencement of such
hearing, the commissioner shall in writing either approve such filing
or deviation or shall disapprove the same as provided in this section.
(Formerly: Acts 1967, c.133, s.7.) As amended by P.L.252-1985,
SEC.110; P.L.178-2003, SEC.24.
IC 27-1-22-8
Rating organizations; definitions; license; services to subscribers;
rules; cooperation
Sec. 8. (a) A rating organization is an individual, partnership,
corporation, limited liability company, or unincorporated association
other than an insurer located within or without this state, who or
which has as its primary object and purpose the making and filing of
rates, rating plans, rating systems, or rules relating thereto, and who
or which may also examine policies, daily reports, binders, renewal
certificates, endorsements, and other evidences of insurance or the
cancellation thereof for any member or subscriber requesting such
auditing service.
(b) Such a rating organization shall make application to the
commissioner for license as a rating organization for such kinds of
insurance, or subdivisions, or classes of risk, or parts or combination
of any of the foregoing as are specified in its application and shall
file therewith:
(1) a copy of its constitution, its articles of agreement or
association or its certificate of incorporation, and of its bylaws,
rules, and regulations governing the conduct of its business;
(2) a list of its members and subscribers;
(3) the name and address of a resident of this state upon whom
notices or orders of the commissioner or process affecting such
rating organization may be served; and
(4) a statement of its qualifications as a rating organization.
(c) If the commissioner finds that the applicant is competent,
trustworthy, and otherwise qualified to act as a rating organization,
and that its constitution, its articles of agreement or association, or
its certificate of incorporation, and its bylaws, rules, and regulations
governing the conduct of its business conform to the requirements of
law, he shall issue a license specifying the kinds of insurance, or
subdivisions, or classes of risk, or parts or combinations of any of the
foregoing for which the applicant is authorized to act as a rating
organization. Every such application shall be granted or denied in
whole or in part by the commissioner within sixty (60) days of the
date of its filing with him. Licenses issued pursuant to this section
shall remain in effect for three (3) years unless sooner suspended or
revoked by the commissioner. The fee for the license is seventy-five
dollars ($75). Licenses issued pursuant to this section may be
suspended or revoked by the commissioner, after hearing upon
notice, in the event the rating organization ceases to meet the
requirements of this subsection. Every rating organization shall
notify the commissioner promptly of every change in:
(1) its constitution, its articles of agreement or association, or
its certificate of incorporation, and its bylaws, rules, and
regulations governing the conduct of its business;
(2) its list of members and subscribers; and
(3) the name and address of the resident of this state designated
by it upon whom notices or orders of the commissioner or
process affecting such rating organization may be served.
(d) Subject to rules and regulations which have been approved by
the commissioner as reasonable, each rating organization shall permit
any insurer, not a member, to be a subscriber to its services for any
one (1) or more of the kinds of insurance, subdivisions, or classes of
risk or parts or combinations of any of the foregoing for which it is
authorized to act as an organization. Notice of proposed changes in
such rules and regulations shall be given to subscribers. Each rating
organization shall furnish its services without discrimination to its
members and subscribers. The reasonableness of any rule or
regulation in its application to subscribers, or the refusal of any
rating organization to admit an insurer as a subscriber, shall, at the
request of any subscriber or any such insurer, be reviewed by the
commissioner at a hearing held upon at least ten (10) days written
notice to such rating organization and to such subscriber or insurer.
If the commissioner finds that such rule or regulation is unreasonable
in its application to subscribers, he shall order that such rule or
regulation shall not be applicable to subscribers. If the rating
organization fails to grant or reject an insurer's application for
subscribership within thirty (30) days after it was made, the insurer
may request a review by the commissioner as if the application had
been rejected. If the commissioner finds that the insurer has been
refused admittance to the rating organization as a subscriber without
justification, he shall order the rating organization to admit the
insurer as a subscriber. If he finds that the action of the rating
organization was justified, he shall make an order affirming its
action.
(e) No rating organization shall adopt any rule the effect of which
would be to prohibit or regulate the payment of dividends or savings
allowed or returned by insurers to their policyholders or members.
(f) Cooperation among rating organizations or among rating
organizations and insurers in ratemaking or in other matters within
the scope of this chapter is hereby authorized, provided the filings
resulting from such cooperation are subject to all the provisions of
this chapter which are applicable to filing generally. The
commissioner may review such cooperative activities and practices
and if, after a hearing, he finds that any such activity or practice is
unfair or unreasonable, or otherwise inconsistent with the provisions
of this chapter, he may issue a written order specifying in what
respects such activity or practice is unfair or unreasonable or
otherwise inconsistent with the provisions of this chapter and
requiring the discontinuance of such activity or practice.
(g) Any rating organization may subscribe for or purchase
actuarial, technical, or other services, and such services shall be
available to all members and subscribers without discrimination.
(h) A member of a rating organization means an insurer entitled
to participate in its management and electing to exercise its right to
so participate.
(Formerly: Acts 1967, c.133, s.8.) As amended by P.L.252-1985,
SEC.111; P.L.31-1988, SEC.14; P.L.8-1993, SEC.415.
IC 27-1-22-9
Deviation from rates; filing; effective date; termination; public
inspection
Sec. 9. (a) In addition to any rights conferred pursuant to section
4 of this chapter any member or subscriber to a rating organization
may file with commissioner a deviation from the rates, rating
schedules, rating plans, rating systems, or rules respecting any kind
of insurance, division, subdivision, classification, or any part or
combination of any of the foregoing.
(b) Such a filing shall specify the nature and extent of the
deviation and shall be accompanied by the relevant information upon
which the filer supports the deviation. The commissioner shall have
the right to request any additional relevant information.
(c) Such deviation shall become effective upon the date of filing
by delivery or upon date of mailing by registered mail to the
commissioner or on a later date specified in the filing. It shall be in
effect until terminated by the filer giving notice to the commissioner
of the termination of the deviation. A change in the rates, rating
schedules, rating plans, rating systems, or rules to which the
deviation applies shall not terminate the deviation without the
consent of the insurer to which the deviation applies. Any such
deviation may be terminated by the commissioner pursuant to the
provisions of section 5 of this chapter and after notice and hearings
as provided in section 5 of this chapter.
(d) A deviation filing and supporting information shall be open to
public inspection as soon as stamped "filed" within a reasonable time
after receipt by the commissioner and copies may be had by any
person on request and upon the payment of a reasonable charge
therefor.
(Formerly: Acts 1967, c.133, s.9.) As amended by P.L.252-1985,
SEC.112.
IC 27-1-22-10
Insurers acting in concert
Sec. 10. Subject to and in compliance with all other provisions of
this chapter, two (2) or more insurers may act in concert with each
other and with others with respect to any matters within the purview
of this chapter and are authorized to act in concert between or among
themselves to the same extent as if they constituted a single insurer.
(Formerly: Acts 1967, c.133, s.10.) As amended by P.L.252-1985,
SEC.113.
IC 27-1-22-11
Appeal to commissioner from act or decision of rating
organization; decision and order
Sec. 11. (a) Any subscriber which has authorized a rating
organization to making filings on its behalf and any member thereof
which does not wish to act under sections 4(g) and 4(h) of this
chapter may appeal to the commissioner from the action or decision
of such rating organization in approving or rejecting any proposed
change in or addition to the filings of such rating organization and
the commissioner shall, after a hearing held upon not less than ten
(10) days written notice to the appellant and to such rating
organization, issue an order approving the action or decision of such
rating organization or directing it to give further consideration to
such proposal, or, if such appeal is from the action or decision of the
rating organization in rejecting a proposed addition to its filings, he
may, in the event he finds that such action or decision was
unreasonable, issue an order directing the rating organization to
make an addition to its filings in a manner consistent with his
findings within a reasonable time after the issuance of such order.
(b) If such appeal is based upon the failure of the rating
organization to make a filing on behalf of such member or subscriber
which is based on a system of expense provisions which differs, in
accordance with the right granted in section 3(a)(3) of this chapter
from the system of expense provisions included in a filing made by
the rating organization, the commissioner shall, if he grants the
appeal, order the rating organization to make the requested filing for
use by the appellant. In deciding such appeal the commissioner shall
apply the standards set forth in section 3 of this chapter.
(Formerly: Acts 1967, c.133, s.11.) As amended by P.L.252-1985,
SEC.114; P.L.268-1999, SEC.13.
IC 27-1-22-12
Procedure on complaint by insured
Sec. 12. Any insured may, in writing, request his insurer or its
rating organization to review the manner in which its filing or the
filing made by a rating organization on its behalf has been applied
with respect to insurance afforded him. Any such insured aggrieved
by the failure or refusal of an insurer or rating organization to make
such review and to grant appropriate relief within thirty (30) days
after such request is received may file a written complaint and
request for a hearing with the commissioner, specifying the grounds
relied upon. If the complaint charges a violation of this chapter and
the commissioner finds that the complaint was made in good faith
and that the complainant would be aggrieved if the violation is
proven, he shall hold a hearing upon not less than ten (10) days
written notice to the complainant, the insurer, and the related rating
organization, if any, stating the grounds of complaint. If after such
hearing he finds the complaint justified, he shall order the matter
complained of to be corrected within a reasonable time, but not less
than twenty (20) days after a copy of his written order has been
mailed to or served upon the insurer complained against.
(Formerly: Acts 1967, c.133, s.12.) As amended by P.L.252-1985,
SEC.115.
IC 27-1-22-13
Advisory organization; filing and regulation; orders of
commissioner
Sec. 13. (a) Every group, association, or other organization of
insurers, whether located within or outside this state, which assists
insurers which make their own filings or rating organizations in
ratemaking, by the collection and furnishing of loss or expense
statistics, or by the submission of recommendations, but which does
not make filings under this chapter, shall be known as an advisory
organization.
(b) Every advisory organization shall file with the commissioner:
(1) a copy of its constitution, its articles of agreement or
association, or its certificate of incorporation and of its bylaws,
rules, and regulations governing its activities;
(2) a list of its members;
(3) the name and address of a resident of this state upon whom
notices or orders of the commissioner or process issued at his
direction may be served; and
(4) an agreement that the commissioner may examine such
advisory organization in accordance with the provisions of
section 15 of this chapter.
(c) If, after a hearing, the commissioner finds that the furnishing
of such information or assistance involves any act or practice which
is unfair or unreasonable or otherwise inconsistent with the
provisions of this chapter, he may issue a written order specifying in
what respect such act or practice is unfair or unreasonable or
otherwise inconsistent with the provisions of this chapter, and
requiring the discontinuance of such act or practice.
(d) No insurer which makes its own filings nor any rating
organization shall support its findings by statistics or adopt
ratemaking recommendations furnished to it by an advisory
organization which has not complied with this section or with an
order of the commissioner involving such statistics or
recommendations issued under subsection (c). If the commissioner
finds such insurer or rating organization to be in violation of this
subsection, he may issue an order requiring the discontinuance of the
violation.
(Formerly: Acts 1967, c.133, s.13.) As amended by P.L.252-1985,
SEC.116.
IC 27-1-22-14
Regulation of organization of insurers engaging in joint
underwriting or joint reinsurance; unfair or unreasonable
practices
Sec. 14. (a) Every group, association, or other organization of
insurers which engages in joint underwriting or joint reinsurance
shall be subject to regulation with respect thereto as provided in this
chapter, subject, however, with respect to joint underwriting, to all
other provisions of this chapter and with respect to joint reinsurance,
to section 15 of this chapter.
(b) If, after a hearing, the commissioner finds that any activity or
practice of any such group, association, or other organization is
unfair or unreasonable or otherwise inconsistent with the provisions
of this chapter, he may issue a written order specifying in what
respects such activity or practice is unfair or unreasonable or
otherwise inconsistent with the provisions of this chapter and
requiring the discontinuance of such activity or practice.
(Formerly: Acts 1967, c.133, s.14.) As amended by P.L.252-1985,
SEC.117.
IC 27-1-22-15
Examination of licensed rating organization; report of examination
in another state; cost of examination
Sec. 15. (a) The commissioner shall, at least once every three (3)
years, make or cause to be made an examination of each licensed
rating organization, and may, as often as he may deem it expedient,
make or cause to be made an examination of each advisory
organization and of each group, association, or other organization of
insurers which engages in joint underwriting or joint reinsurance
pursuant to section 13 of this chapter to ascertain whether such rating
or advisory organization or group, association or other organization
complies with the applicable provisions of this chapter. In lieu of any
such examination the commissioner may accept the report of an
examination made by the insurance supervisory official of another
state.
(b) The officers, managers, agents, and employees of any such
organization, group or association may be examined at any time
under oath and shall exhibit all books, records, accounts, documents,
or agreements governing its method of operation, together with all
data, statistics and information of every kind and character collected
or considered by such organization, group or association in the
conduct of the operations to which such examination relates.
(c) The reasonable cost of any examination authorized by this
chapter shall be paid by the organization, group, or association
examined, upon presentation to it of a detailed account of such cost.
(d) No report of examination shall be made public until the
organization examined has an opportunity to review the proposed
report and to have a hearing with reference thereto, after which
hearing the report shall be filed for public inspection and become
admissible in evidence as a public record.
(Formerly: Acts 1967, c.133, s.15.) As amended by P.L.252-1985,
SEC.118.
IC 27-1-22-16
Approval of rules and statistical plans; exchange of information
and experience data
Sec. 16. a. The commissioner shall approve reasonable rules and
statistical plans, reasonably adapted to each of the rating systems on
file with him, which may be modified from time to time and which
shall be used thereafter by each insurer in the recording and reporting
of its loss and countrywide expense experience, in order that the
experience of all insurers may be made available at least annually.
Such rules and plans may also provide for the recording and
reporting of expense experience items which are specially applicable
to this state and are not susceptible of determination by a prorating
of countrywide expense experience. In approving such rules and
plans, the commissioner shall give due consideration to the rating
systems on file with him and, in order that such rules and plans may
be as uniform as is practicable among the several states, to the rules
and to the form of the plans used for such rating systems in other
states. No insurer shall be required to record or report its loss
experience on a classification basis that is inconsistent with the
rating system filed by it. The commissioner may designate rating
organizations or other agencies, or both, to assist him in gathering
such experience and making compilations thereof, and such
compilations shall be made available, subject to reasonable rules
approved by the commissioner to insurers and advisory and rating
organizations.
b. In order to further uniform administration of the regulatory
laws, the commissioner and every insurer, rating organization,
advisory organization or statistical agency may exchange information
and experience data with insurance supervisory officials, insurers,
rating organizations, advisory organizations or statistical agencies in
this and other states and may consult with them with respect to rate
making and the application of rating systems.
c. The commissioner may make reasonable rules and regulations
necessary to effect the purposes of this section.
(Formerly: Acts 1967, c.133, s.16.)
IC 27-1-22-17
Withholding information; giving false or misleading information
Sec. 17. No person may knowingly withhold information from, or
knowingly give false or misleading information to, the commissioner
or the department, to any statistical agency designated by the
department, to any rating organization, or to any insurer, which will
affect the rates or premiums chargeable under this article.
(Formerly: Acts 1967, c.133, s.17.) As amended by Acts 1978, P.L.2,
SEC.2714.
IC 27-1-22-18
Deviation from authorized premium charge; discounts and rebates
as inducement to insure; commissions for insurance producers
Sec. 18. No insurer, broker, or insurance producer shall
knowingly charge, demand, or receive a premium for any policy of
insurance except in accordance with the provisions of this chapter.
No insurer or employee thereof, and no broker or insurance producer
shall pay, allow, or give, directly or indirectly, as an inducement to
insurance, or after insurance has been effected, any rebate, discount,
abatement, credit, or reduction of the premium named in a policy of
insurance, or any special favor or advantage in the dividends or other
benefits to accrue thereon, or any valuable consideration or
inducement whatever, not specified in the policy of insurance, except
to the extent provided for in applicable filings. No insured named in
any policy of insurance shall knowingly receive or accept, directly
or indirectly, any such rebate, discount, abatement, credit or
reduction of premium, or any such special favor or advantage or
valuable consideration or inducement. Nothing in this section shall
be construed as prohibiting the payment of, nor permitting the
regulation of the payment of, commissions or other compensation to
duly licensed insurance producers and brokers, nor as prohibiting, or
permitting the regulation of, any insurer from allowing or returning
to its participating policyholders or members, dividends or savings.
(Formerly: Acts 1967, c.133, s.18.) As amended by P.L.252-1985,
SEC.119; P.L.178-2003, SEC.25.
IC 27-1-22-19
Freedom of contract with reference to commissions
Sec. 19. Nothing in this chapter abridges or restricts the freedom
of contract of insurers, insurance producers, or brokers with
reference to the amount of commission to be paid to insurance
producers or brokers by insurers, and such payments are expressly
authorized.
(Formerly: Acts 1967, c.133, s.19.) As amended by P.L.252-1985,
SEC.120; P.L.178-2003, SEC.26.
IC 27-1-22-20
High risk auto insurance; apportionment agreements; rate
modifications
Sec. 20. Agreements may be made among insurers with respect to
the equitable apportionment among them of automobile, bodily
injury liability, and property damage insurance which may be
afforded applicants who are in good faith entitled to but who are
unable to procure such insurance through ordinary methods, and such
insurers may agree among themselves on the use of reasonable rate
modifications for such insurance, such agreements and rate
modifications to be subject to the terms of this chapter.
(Formerly: Acts 1967, c.133, s.20.) As amended by P.L.252-1985,
SEC.121.
IC 27-1-22-21
Repealed
(Repealed by P.L.4-1988, SEC.17.)
IC 27-1-22-22
Appointment and removal of additional personnel; powers of
deputy conducting hearings; exemption from personal liability
Sec. 22. (a) For the purpose of maintaining the affirmative, active,
and definite administration of the provisions of this chapter, the
commissioner, with the approval of the governor, may appoint such
additional actuaries, deputies, examiners, assistants, and other
employees in the department as may be found necessary to carry out
the provisions of this chapter. Except as otherwise provided in this
chapter, such additional deputies, examiners, assistants, and
employees so appointed shall be chosen for their fitness, either
professional or practical, as the nature of the position may require,
irrespective of their political beliefs or affiliations. The technical or
professional qualifications of any applicant shall be determined by
examination, professional rating or otherwise, as the commissioner
with the approval of the governor may determine. Subject to the
approval of the governor and the state budget director, the salaries of
such additional actuaries, deputies, examiners, assistants, and other
employees shall be fixed by the commissioner. Any actuary, deputy,
examiner, assistant, or employee so employed may be removed at
any time by the commissioner.
(b) In the absence of the commissioner, he may, by written order,
designate a deputy to conduct any hearing, and, in such case, such
deputy commissioner shall possess and may exercise any and all
powers of the commissioner with respect to the matter in hearing.
(c) Neither the commissioner nor any actuary, deputy, examiner,
assistant, or employee in the department shall be liable in their
individual capacity, except to the state of Indiana, for any act done
or omitted in connection with the performance of their respective
duties under the provisions of this chapter.
(Formerly: Acts 1967, c.133, s.22.) As amended by P.L.252-1985,
SEC.123.
IC 27-1-22-23
Exemption of rates and classifications from law governing rules
and regulations
Sec. 23. No provision of IC 4-22-2 shall be construed to apply to
rates or classifications made pursuant to the provisions of this
chapter and approved by the commissioner or department.
(Formerly: Acts 1967, c.133, s.23.) As amended by P.L.252-1985,
SEC.124.
IC 27-1-22-24
Suspension or revocation of licenses
Sec. 24. (a) The commissioner may suspend the license of any
rating organization or insurer which fails to comply with an order of
the commissioner or department within the time limited by such
order, or any extension thereof which the commissioner may grant.
The commissioner shall not suspend the license of any rating
organization or insurer for failure to comply with an order until the
time prescribed for an appeal therefrom has expired or if an appeal
has been taken, until such order has been affirmed. The
commissioner may determine when a suspension of license shall
become effective and it shall remain in effect for the period fixed by
him, unless he modifies or rescinds such suspension, or until the
order upon which such suspension is based is modified, rescinded or
reversed. No license shall be suspended or revoked except upon a
written order of the commissioner, stating his findings, made after a
hearing is held upon not less than fifteen (15) days' written notice to
the person specifying the alleged violation.
(b) A person who violates this chapter commits a Class A
misdemeanor.
(Formerly: Acts 1967, c.133, s.24.) As amended by Acts 1978, P.L.2,
SEC.2715.
IC 27-1-22-25
Motor vehicle insurance; rating plan establishing higher rates for
bankruptcy petitioners; violations
Sec. 25. (a) This section only applies to a policyholder or an
applicant who is an individual.
(b) As used in this section, "motor vehicle insurance" means any
type of insurance described in IC 27-1-5-1, Class 2(f).
(c) A motor vehicle insurance rating plan filed under section 4 of
this chapter may not establish a higher rate for a policyholder based
on the fact that the policyholder has filed a voluntary petition under
the federal bankruptcy law (11 U.S.C. 101 et seq.).
(d) The premium rate for an individual policy of motor vehicle
insurance may not be set higher than the applicable rate set forth in
the rating plan in effect under this chapter based on the fact that the
policyholder or applicant has filed a voluntary petition under the
federal bankruptcy law.
(e) The violation of this section is an unfair and deceptive act or
practice in the business of insurance under IC 27-4-1-4.
As added by P.L.122-1992, SEC.1.
IC 27-1-22-26
Motor vehicle insurance; rating plan establishing higher rates for
persons in armed forces; violations
Sec. 26. (a) As used in this section, "armed forces" means the
following:
(1) The Army.
(2) The Navy.
(3) The Air Force.
(4) The Marine Corps.
(5) The Coast Guard.
(b) This section applies only to an individual:
(1) who is applying for motor vehicle insurance; and
(2) who:
(A) is serving in one (1) of the armed forces; or
(B) has served in one (1) of the armed forces within six (6)
months before applying for motor vehicle insurance.
(c) As used in this section, "motor vehicle insurance" means any
type of insurance described in IC 27-1-5-1, Class 2(f).
(d) As used in this chapter, "rating plan" means the rating
schedule or rating plan of an insurer concerning premium rates for
motor vehicle insurance that has been filed with the commissioner
and is in effect under section 4 of this chapter.
(e) An insurer may not set the premium rate for a policy of motor
vehicle insurance for an individual described in subsection (b) at an
amount higher than the applicable rate set forth in the rating plan due
to the fact that the individual has not been covered by motor vehicle
insurance for a period of time.
(f) The violation of this section is an unfair and deceptive act or
practice in the business of insurance under IC 27-4-1-4.
As added by P.L.223-1993, SEC.5.
IC 27-1-22-26.1
Motor vehicle insurance; rating plan for active and reserve
members of armed forces; violation
Sec. 26.1. (a) As used in this section, "armed forces" means the
active and reserve components of the following:
(1) The United States Army.
(2) The United States Navy.
(3) The United States Air Force.
(4) The United States Marine Corps.
(5) The United States Coast Guard.
(6) The Indiana National Guard.
(b) As used in this section, "motor vehicle insurance" means any
type of insurance described in IC 27-1-5-1, Class 2(f).
(c) As used in this chapter, "rating plan" means the rating
schedule or rating plan of an insurer:
(1) concerning premium rates for motor vehicle insurance;
(2) that has been filed with the commissioner; and
(3) that is in effect under section 4 of this chapter.
(d) An insurer that issues or renews a policy of motor vehicle
insurance may not set the premium rate for a policy of motor vehicle
insurance that covers an individual who is serving in one (1) of the
armed forces at an amount higher than the applicable rate set forth in
the rating plan for a policy of motor vehicle insurance that covers an
individual who is not serving in one (1) of the armed forces.
(e) A violation of this section is an unfair and deceptive act or
practice in the business of insurance under IC 27-4-1-4.
As added by P.L.39-2005, SEC.1.
IC 27-1-22-27
Motor vehicle insurance; rates for innocent prior-uninsured
motorists
Sec. 27. (a) The purpose of this section is to preclude insurers
from charging higher rates for innocent prior-uninsured motorists
who have not operated a motor vehicle in violation of any financial
responsibility or compulsory insurance requirement within the prior
twelve months.
(b) As used in this section, "motor vehicle insurance" means any
type of insurance described in IC 27-1-5-1, Class 2(f).
(c) A motor vehicle insurer may not discriminate in establishing
a rate for a policyholder or applicant, based solely on the absence of
insurance by the applicant or policyholder.
(d) This section does not apply to applicants who first received
their driver's license within the past thirty-six (36) month period.
(e) A violation of this section is an unfair and deceptive act or
practice in the business of insurance under IC 27-4-1-4.
As added by P.L.169-1999, SEC.1.