CHAPTER 26. SUMMARY OF ORDERS AND SUPERVISION
IC 27-13-26
Chapter 26. Summary of Orders and Supervision
IC 27-13-26-1
Hazardous financial condition; corrective action ordered by
commissioner
Sec. 1. (a) If the commissioner determines that:
(1) the financial condition of a health maintenance organization
is such that the continued operation of the organization might
be hazardous to:
(A) the subscribers, enrollees, or creditors of the
organization; or
(B) the general public; or
(2) the organization has violated any provision of this article;
the commissioner may, after notice and hearing, order the health
maintenance organization to take action reasonably necessary to
rectify the condition or violation.
(b) An order of the commissioner under subsection (a) may
require a health maintenance organization to do one (1) or more of
the following:
(1) Reduce the total amount of present and potential liability for
benefits by reinsurance or another method acceptable to the
commissioner.
(2) Reduce the volume of new business being accepted.
(3) Reduce expenses by specified methods.
(4) Suspend or limit the writing of new business for a period of
time.
(5) Increase the capital and surplus of the health maintenance
organization by contribution.
(6) Take other steps the commissioner considers appropriate
under the circumstances.
(c) The commissioner's order under this section may require items
in addition to those set forth in subsection (b).
As added by P.L.26-1994, SEC.25.
IC 27-13-26-2
Violation of article
Sec. 2. For purposes of section 1(a)(2) of this chapter, the
violation by a health maintenance organization of any Indiana law to
which the health maintenance organization is subject is considered
a violation of this article.
As added by P.L.26-1994, SEC.25.
IC 27-13-26-3
Adoption of rules; uniform standards set by commissioner
Sec. 3. (a) The commissioner may adopt rules under IC 4-22-2 to
do the following:
(1) Set uniform standards and criteria to produce an early
warning that the continued operation of a health maintenance
organization might be hazardous to the subscribers, enrollees,
or creditors of the organization or to the general public.
(2) Set standards for evaluating the financial condition of a
health maintenance organization.
(b) The standards set under subsection (a)(2) must be consistent
with the purposes expressed in section 1 of this chapter.
As added by P.L.26-1994, SEC.25.
IC 27-13-26-4
Remedies and measures
Sec. 4. The remedies and measures available to the commissioner
under this chapter are in addition to and not in place of the remedies
and measures available to the commissioner under IC 27-9.
As added by P.L.26-1994, SEC.25.