CHAPTER 7. MISCELLANEOUS PROVISIONS
IC 27-14-7
Chapter 7. Miscellaneous Provisions
IC 27-14-7-1
Supplemental nature of article; applicability of other insurance
statutes
Sec. 1. (a) This article, while independent of any other law, is
supplemental to IC 27-1-2 through IC 27-1-20.
(b) Except as provided in this article, all provisions of IC 27-1-2
through IC 27-1-20 are fully and completely applicable to this article
in the same manner as if the provisions of this article had been an
original part of IC 27-1-2 through IC 27-1-20. If any conflict exists
between this article and IC 27-1-2 through IC 27-1-20, this article is
controlling.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-2
Limitation of actions
Sec. 2. A civil action:
(1) challenging the validity of; or
(2) arising out of;
action that is taken or proposed to be taken under this article must
commence not later than sixty (60) days after the approval by the
commissioner of the plan under which or in respect of which the
action is taken or proposed to be taken.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-3
Severability of provisions
Sec. 3. The provisions of this article are severable in the manner
provided in IC 1-1-1-8(b).
As added by P.L.5-2000, SEC.4.
IC 27-14-7-4
Judicial review of action of commissioner; mandamus
Sec. 4. (a) A person who is aggrieved by an action of the
commissioner under this article may petition for judicial review of
the action under IC 4-21.5-5.
(b) A person who is aggrieved by a failure of the commissioner to
act or make a determination required by this article may bring an
action for mandate in the circuit court of Marion County to compel
the commissioner to act or make the determination.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-5
Treatment of confidential information
Sec. 5. (a) Except as provided in this section, IC 5-14 applies to
all filings made under this article.
(b) Filings made under this article may include information that
might be damaging to an applicant or its affiliate if made available
to competitors. Subject to subsection (c), all information, documents,
and copies of the filings containing trade secrets of an applicant or
its affiliate are declared:
(1) confidential for the purposes of IC 5-14-3-4; and
(2) not subject to inspection and copying by the public under
person, except to insurance departments of other states which
agree to such confidential treatment;
without the written consent of the person to which they pertain.
(c) If the commissioner, after giving notice to the person seeking
such confidential treatment and any other person requesting
disclosure, after giving them an opportunity to respond at a
departmental hearing in camera, and after giving due consideration
to any legitimate interest in preserving trade secrets, determines that
the members or policyholders have a compelling interest that would
be served by disclosure, then the commissioner, after five (5)
business days have elapsed from notification to the applicant, may
disclose all or any part thereof in a manner and subject to the
limitations as the commissioner determines appropriate.
(d) If within the five (5) business days period referred to in
subsection (c), the applicant notifies the commissioner that the
applicant or other interested party has filed an action seeking a
protective order from a circuit or superior court to prevent or to limit
disclosure, the commissioner shall not disclose the information,
documents, or copies thereof during the pendency of the action and
any appeal or after any final court decision prohibiting disclosure.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-6
Prohibited acts
Sec. 6. An MIHC and its subsidiaries and affiliates may not do
any of the following:
(1) Lend funds to a person to finance the purchase of stock in
a stock offering by an MIHC or any of its subsidiaries other
than policyholder loans granted under the terms of an insurance
policy of a subsidiary.
(2) Pay commissions, special fees, or other special or
extraordinary compensation to officers, directors, interested
persons, or affiliates for arranging, promoting, aiding, assisting,
or participating in the structure or placement of a stock offering
by the MIHC or any of its subsidiaries, except to the extent
permitted under IC 27-14-4.
(3) Enter into an understanding or agreement transferring legal
or beneficial ownership of stock to another person in avoidance
of this article.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-7
Reorganized insurer or MIHC having all rights and obligations of
MIC
Sec. 7. (a) Except as provided in subsection (b), a reorganized
insurer to which insurance policies, contracts, and other assets and
obligations are transferred in connection with a plan of
reorganization under this article has, with respect to the insurance
policies, contracts, and other assets and obligations, all rights,
liabilities, and authority of the MIC that is the subject of the plan of
reorganization.
(b) An MIHC resulting from a plan of reorganization of a MIC
under this article, has all obligations and liabilities of the MIC for
any claim, asserted or otherwise, that existed at the effective date of
the reorganization and that:
(1) seeks the imposition of a constructive or charitable trust on
assets of the MIC for the benefit of policyholders, members, or
other persons;
(2) seeks distribution or return of assets, or other form of
compensation, from the MIC to policy holders or members; or
(3) otherwise arises out of, or relates to, the ownership interest
of policyholders or members of the MIC, or to the value of their
ownership interests, including any claim that challenges a
statutory transaction engaged in by the MIC before the effective
date of the reorganization.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-8
Effect of reorganization on pending actions
Sec. 8. If a proceeding is pending against an MIC that is the
subject of a plan of reorganization under this article:
(1) the proceeding may be continued after the effective date as
if the reorganization had not occurred; or
(2) the reorganized insurer that is the successor to the MIC's
business may be substituted in the proceeding for the MIC;
except that the MIHC resulting from the plan of reorganization shall
be substituted for the MIC and any subsidiaries of the MIC in all
proceedings involving any claim described in section 7(b) of this
chapter.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-9
Conversion of MIHC to stock company
Sec. 9. An MIHC may convert to a stock company under
IC 27-1-8-13 (repealed) as though the MIHC were an MIC.
As added by P.L.5-2000, SEC.4. Amended by P.L.1-2010, SEC.113.
IC 27-14-7-10
Experts hired by commissioner
Sec. 10. The commissioner shall, at the applicant's expense, hire
attorneys, actuaries, accountants, investment bankers, and other
experts as may be necessary to assist the commissioner in reviewing
all matters under this article that are associated with a plan of
reorganization or a plan to issue stock. The commissioner may at any
time require an applicant to deposit an amount of money with the
department of insurance in anticipation of expenses to be incurred by
the commissioner under this article.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-11
Adoption of rules
Sec. 11. The commissioner may adopt rules under IC 4-22-2 to
carry out the purposes of this article.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-12
Reorganization of domestic MIC with foreign mutual holding
company
Sec. 12. (a) A domestic MIC may reorganize with a foreign
mutual holding company by complying with IC 27-14-2. The
commissioner may waive any provision of IC 27-14-2 if the
commissioner determines the provision to be unnecessary for the
protection of policyholders and members.
(b) A plan of reorganization under subsection (a) is effective
when the reorganized domestic stock insurance company subsidiary
has filed its articles of amendment and amended certificate of
authority in the office of the county recorder of the county in which
the principal office of the company is located or at a later date
specified in the plan of reorganization.
(c) A domestic MIC seeking to reorganize under subsection (a)
may at the same time redomesticate to another state by complying
with IC 27-1-6.5 and the applicable requirements of the state to
which it seeks to transfer domicile.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-13
Acquisition of foreign MIC by existing MIHC; granting
membership interests
Sec. 13. (a) An existing MIHC may, with the prior approval of the
commissioner:
(1) acquire direct or indirect ownership of a converting foreign
MIC that becomes a stock insurer in compliance with the laws
of its state of domicile; and
(2) grant membership interests and equity rights to the members
or policyholders of a foreign mutual insurer that merges with a
direct or indirect domestic or foreign subsidiary of the MIHC or
is otherwise acquired by the MIHC.
(b) The commissioner shall consider the fairness of the terms and
conditions of the transaction, whether the interests of the members
of each MIHC that is a party to the transaction are protected, and
whether the proposed transaction is in the public interest when
determining whether to approve a transaction under subsection (a).
As added by P.L.5-2000, SEC.4.
IC 27-14-7-14
Concurrent reorganization of multiple MICs into single MIHC
Sec. 14. The concurrent reorganization of two (2) or more MICs
into a single MIHC structure under IC 27-14-2 may be accomplished
by a joint application and a joint plan of reorganization and may be
approved by the commissioner following a combined hearing. The
commissioner may allow such other procedures as may be necessary
or desirable to avoid unnecessary or duplicative costs and efforts in
satisfying the requirements of this article and in effectuating the
reorganization.
As added by P.L.5-2000, SEC.4.
IC 27-14-7-15
Reorganization of MIHC with foreign mutual insurance holding
company
Sec. 15. An MIHC may reorganize with a foreign mutual
insurance holding company, subject to the approval of the
commissioner, under IC 27-1-23. If the MIHC is not the surviving
entity in any reorganization transaction, then the commissioner must
consider the effect of the transaction on the protections afforded
policyholders under the members' surplus protection principle in
determining whether the transaction is in the best interests of the
policyholders. If the commissioner waives any or all of the
provisions of the members' surplus protection principle in approving
a transaction, then the commissioner must explain the basis for
waiving the provisions in writing in the order approving the
transaction.
As added by P.L.5-2000, SEC.4.