CHAPTER 1. UNFAIR COMPETITION; UNFAIR OR DECEPTIVE ACTS AND PRACTICES
IC 27-4
ARTICLE 4. UNFAIR COMPETITION;
UNAUTHORIZED INSURERS; FOREIGN INSURERS
IC 27-4-1
Chapter 1. Unfair Competition; Unfair or Deceptive Acts and
Practices
IC 27-4-1-1
Purpose
Sec. 1. The purpose of this chapter is to regulate the trade
practices in the business of insurance, in accordance with the intent
of Congress as expressed in 15 U.S.C. 1011 et seq., by defining, or
providing for the determination of, all such practices which
constitute in this state unfair methods of competition and unfair or
deceptive acts or practices and by prohibiting the trade practices so
defined or determined.
(Formerly: Acts 1947, c.112, s.1.) As amended by P.L.252-1985,
SEC.144.
IC 27-4-1-2
Definitions
Sec. 2. When and as used in this chapter:
(a) The term "person" shall mean any individual, corporation,
company including any farm mutual insurance company, association,
partnership, firm, reciprocal exchange, inter-insurer, Lloyds insurers,
society, fraternal benefit society, lodge, order, council, corps, and
any other association or legal entity, engaged in the business of
insurance, including but not in limitation of the foregoing, insurance
producers, brokers, solicitors, advisors, auditors, and adjusters.
(b) "Department" shall mean the department of insurance of this
state created and defined as a department in the state government of
the state of Indiana by IC 27-1.
(c) "Commissioner" shall mean the insurance commissioner of
this state appointed pursuant to, and on and in whom the powers,
duties, management, and control of the department are conferred and
vested by, the provisions of IC 27-1.
(Formerly: Acts 1947, c.112, s.2.) As amended by P.L.252-1985,
SEC.145; P.L.129-2003, SEC.7; P.L.178-2003, SEC.34.
IC 27-4-1-3
Prohibited use of unfair methods of competition and deceptive acts
or practices
Sec. 3. No person shall engage in this state in any trade practice
which is defined in this chapter or determined pursuant to this
chapter as an unfair method of competition or as an unfair or
deceptive act or practice in the business of insurance as defined in
IC 27-1-2-3.
(Formerly: Acts 1947, c.112, s.3.) As amended by P.L.252-1985,
SEC.146.
IC 27-4-1-4
Enumeration of unfair methods of competition and deceptive acts
and practices
Sec. 4. (a) The following are hereby defined as unfair methods of
competition and unfair and deceptive acts and practices in the
business of insurance:
(1) Making, issuing, circulating, or causing to be made, issued,
or circulated, any estimate, illustration, circular, or statement:
(A) misrepresenting the terms of any policy issued or to be
issued or the benefits or advantages promised thereby or the
dividends or share of the surplus to be received thereon;
(B) making any false or misleading statement as to the
dividends or share of surplus previously paid on similar
policies;
(C) making any misleading representation or any
misrepresentation as to the financial condition of any
insurer, or as to the legal reserve system upon which any life
insurer operates;
(D) using any name or title of any policy or class of policies
misrepresenting the true nature thereof; or
(E) making any misrepresentation to any policyholder
insured in any company for the purpose of inducing or
tending to induce such policyholder to lapse, forfeit, or
surrender the policyholder's insurance.
(2) Making, publishing, disseminating, circulating, or placing
before the public, or causing, directly or indirectly, to be made,
published, disseminated, circulated, or placed before the public,
in a newspaper, magazine, or other publication, or in the form
of a notice, circular, pamphlet, letter, or poster, or over any
radio or television station, or in any other way, an
advertisement, announcement, or statement containing any
assertion, representation, or statement with respect to any
person in the conduct of the person's insurance business, which
is untrue, deceptive, or misleading.
(3) Making, publishing, disseminating, or circulating, directly
or indirectly, or aiding, abetting, or encouraging the making,
publishing, disseminating, or circulating of any oral or written
statement or any pamphlet, circular, article, or literature which
is false, or maliciously critical of or derogatory to the financial
condition of an insurer, and which is calculated to injure any
person engaged in the business of insurance.
(4) Entering into any agreement to commit, or individually or
by a concerted action committing any act of boycott, coercion,
or intimidation resulting or tending to result in unreasonable
restraint of, or a monopoly in, the business of insurance.
(5) Filing with any supervisory or other public official, or
making, publishing, disseminating, circulating, or delivering to
any person, or placing before the public, or causing directly or
indirectly, to be made, published, disseminated, circulated,
delivered to any person, or placed before the public, any false
statement of financial condition of an insurer with intent to
deceive. Making any false entry in any book, report, or
statement of any insurer with intent to deceive any agent or
examiner lawfully appointed to examine into its condition or
into any of its affairs, or any public official to which such
insurer is required by law to report, or which has authority by
law to examine into its condition or into any of its affairs, or,
with like intent, willfully omitting to make a true entry of any
material fact pertaining to the business of such insurer in any
book, report, or statement of such insurer.
(6) Issuing or delivering or permitting agents, officers, or
employees to issue or deliver, agency company stock or other
capital stock, or benefit certificates or shares in any common
law corporation, or securities or any special or advisory board
contracts or other contracts of any kind promising returns and
profits as an inducement to insurance.
(7) Making or permitting any of the following:
(A) Unfair discrimination between individuals of the same
class and equal expectation of life in the rates or assessments
charged for any contract of life insurance or of life annuity
or in the dividends or other benefits payable thereon, or in
any other of the terms and conditions of such contract.
However, in determining the class, consideration may be
given to the nature of the risk, plan of insurance, the actual
or expected expense of conducting the business, or any other
relevant factor.
(B) Unfair discrimination between individuals of the same
class involving essentially the same hazards in the amount of
premium, policy fees, assessments, or rates charged or made
for any policy or contract of accident or health insurance or
in the benefits payable thereunder, or in any of the terms or
conditions of such contract, or in any other manner
whatever. However, in determining the class, consideration
may be given to the nature of the risk, the plan of insurance,
the actual or expected expense of conducting the business,
or any other relevant factor.
(C) Excessive or inadequate charges for premiums, policy
fees, assessments, or rates, or making or permitting any
unfair discrimination between persons of the same class
involving essentially the same hazards, in the amount of
premiums, policy fees, assessments, or rates charged or
made for:
(i) policies or contracts of reinsurance or joint reinsurance,
or abstract and title insurance;
(ii) policies or contracts of insurance against loss or
damage to aircraft, or against liability arising out of the
ownership, maintenance, or use of any aircraft, or 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; or
(iii) policies or contracts of any other kind or kinds of
insurance whatsoever.
However, nothing contained in clause (C) shall be construed to
apply to any of the kinds of insurance referred to in clauses (A)
and (B) nor to reinsurance in relation to such kinds of
insurance. Nothing in clause (A), (B), or (C) shall be construed
as making or permitting any excessive, inadequate, or unfairly
discriminatory charge or rate or any charge or rate determined
by the department or commissioner to meet the requirements of
any other insurance rate regulatory law of this state.
(8) Except as otherwise expressly provided by law, knowingly
permitting or offering to make or making any contract or policy
of insurance of any kind or kinds whatsoever, including but not
in limitation, life annuities, or agreement as to such contract or
policy other than as plainly expressed in such contract or policy
issued thereon, or paying or allowing, or giving or offering to
pay, allow, or give, directly or indirectly, as inducement to such
insurance, or annuity, any rebate of premiums payable on the
contract, or any special favor or advantage in the dividends,
savings, or other benefits thereon, or any valuable consideration
or inducement whatever not specified in the contract or policy;
or giving, or selling, or purchasing or offering to give, sell, or
purchase as inducement to such insurance or annuity or in
connection therewith, any stocks, bonds, or other securities of
any insurance company or other corporation, association,
limited liability company, or partnership, or any dividends,
savings, or profits accrued thereon, or anything of value
whatsoever not specified in the contract. Nothing in this
subdivision and subdivision (7) shall be construed as including
within the definition of discrimination or rebates any of the
following practices:
(A) Paying bonuses to policyholders or otherwise abating
their premiums in whole or in part out of surplus
accumulated from nonparticipating insurance, so long as any
such bonuses or abatement of premiums are fair and
equitable to policyholders and for the best interests of the
company and its policyholders.
(B) In the case of life insurance policies issued on the
industrial debit plan, making allowance to policyholders who
have continuously for a specified period made premium
payments directly to an office of the insurer in an amount
which fairly represents the saving in collection expense.
(C) Readjustment of the rate of premium for a group
insurance policy based on the loss or expense experience
thereunder, at the end of the first year or of any subsequent
year of insurance thereunder, which may be made retroactive
only for such policy year.
(D) Paying by an insurer or insurance producer thereof duly
licensed as such under the laws of this state of money,
commission, or brokerage, or giving or allowing by an
insurer or such licensed insurance producer thereof anything
of value, for or on account of the solicitation or negotiation
of policies or other contracts of any kind or kinds, to a
broker, an insurance producer, or a solicitor duly licensed
under the laws of this state, but such broker, insurance
producer, or solicitor receiving such consideration shall not
pay, give, or allow credit for such consideration as received
in whole or in part, directly or indirectly, to the insured by
way of rebate.
(9) Requiring, as a condition precedent to loaning money upon
the security of a mortgage upon real property, that the owner of
the property to whom the money is to be loaned negotiate any
policy of insurance covering such real property through a
particular insurance producer or broker or brokers. However,
this subdivision shall not prevent the exercise by any lender of
the lender's right to approve or disapprove of the insurance
company selected by the borrower to underwrite the insurance.
(10) Entering into any contract, combination in the form of a
trust or otherwise, or conspiracy in restraint of commerce in the
business of insurance.
(11) Monopolizing or attempting to monopolize or combining
or conspiring with any other person or persons to monopolize
any part of commerce in the business of insurance. However,
participation as a member, director, or officer in the activities
of any nonprofit organization of insurance producers or other
workers in the insurance business shall not be interpreted, in
itself, to constitute a combination in restraint of trade or as
combining to create a monopoly as provided in this subdivision
and subdivision (10). The enumeration in this chapter of
specific unfair methods of competition and unfair or deceptive
acts and practices in the business of insurance is not exclusive
or restrictive or intended to limit the powers of the
commissioner or department or of any court of review under
section 8 of this chapter.
(12) Requiring as a condition precedent to the sale of real or
personal property under any contract of sale, conditional sales
contract, or other similar instrument or upon the security of a
chattel mortgage, that the buyer of such property negotiate any
policy of insurance covering such property through a particular
insurance company, insurance producer, or broker or brokers.
However, this subdivision shall not prevent the exercise by any
seller of such property or the one making a loan thereon of the
right to approve or disapprove of the insurance company
selected by the buyer to underwrite the insurance.
(13) Issuing, offering, or participating in a plan to issue or offer,
any policy or certificate of insurance of any kind or character as
an inducement to the purchase of any property, real, personal,
or mixed, or services of any kind, where a charge to the insured
is not made for and on account of such policy or certificate of
insurance. However, this subdivision shall not apply to any of
the following:
(A) Insurance issued to credit unions or members of credit
unions in connection with the purchase of shares in such
credit unions.
(B) Insurance employed as a means of guaranteeing the
performance of goods and designed to benefit the purchasers
or users of such goods.
(C) Title insurance.
(D) Insurance written in connection with an indebtedness
and intended as a means of repaying such indebtedness in
the event of the death or disability of the insured.
(E) Insurance provided by or through motorists service clubs
or associations.
(F) Insurance that is provided to the purchaser or holder of
an air transportation ticket and that:
(i) insures against death or nonfatal injury that occurs
during the flight to which the ticket relates;
(ii) insures against personal injury or property damage that
occurs during travel to or from the airport in a common
carrier immediately before or after the flight;
(iii) insures against baggage loss during the flight to which
the ticket relates; or
(iv) insures against a flight cancellation to which the ticket
relates.
(14) Refusing, because of the for-profit status of a hospital or
medical facility, to make payments otherwise required to be
made under a contract or policy of insurance for charges
incurred by an insured in such a for-profit hospital or other
for-profit medical facility licensed by the state department of
health.
(15) Refusing to insure an individual, refusing to continue to
issue insurance to an individual, limiting the amount, extent, or
kind of coverage available to an individual, or charging an
individual a different rate for the same coverage, solely because
of that individual's blindness or partial blindness, except where
the refusal, limitation, or rate differential is based on sound
actuarial principles or is related to actual or reasonably
anticipated experience.
(16) Committing or performing, with such frequency as to
indicate a general practice, unfair claim settlement practices (as
defined in section 4.5 of this chapter).
(17) Between policy renewal dates, unilaterally canceling an
individual's coverage under an individual or group health
insurance policy solely because of the individual's medical or
physical condition.
(18) Using a policy form or rider that would permit a
cancellation of coverage as described in subdivision (17).
(19) Violating IC 27-1-22-25, IC 27-1-22-26, or
IC 27-1-22-26.1 concerning motor vehicle insurance rates.
(20) Violating IC 27-8-21-2 concerning advertisements
referring to interest rate guarantees.
(21) Violating IC 27-8-24.3 concerning insurance and health
plan coverage for victims of abuse.
(22) Violating IC 27-8-26 concerning genetic screening or
testing.
(23) Violating IC 27-1-15.6-3(b) concerning licensure of
insurance producers.
(24) Violating IC 27-1-38 concerning depository institutions.
(25) Violating IC 27-8-28-17(c) or IC 27-13-10-8(c) concerning
the resolution of an appealed grievance decision.
(26) Violating IC 27-8-5-2.5(e) through IC 27-8-5-2.5(j)
(expired July 1, 2007, and removed) or IC 27-8-5-19.2 (expired
July 1, 2007, and repealed).
(27) Violating IC 27-2-21 concerning use of credit information.
(28) Violating IC 27-4-9-3 concerning recommendations to
consumers.
(29) Engaging in dishonest or predatory insurance practices in
marketing or sales of insurance to members of the United States
Armed Forces as:
(A) described in the federal Military Personnel Financial
Services Protection Act, P.L.109-290; or
(B) defined in rules adopted under subsection (b).
(30) Violating IC 27-8-19.8-20.1 concerning stranger originated
life insurance.
(b) Except with respect to federal insurance programs under
Subchapter III of Chapter 19 of Title 38 of the United States Code,
the commissioner may, consistent with the federal Military Personnel
Financial Services Protection Act (P.L.109-290), adopt rules under
IC 4-22-2 to:
(1) define; and
(2) while the members are on a United States military
installation or elsewhere in Indiana, protect members of the
United States Armed Forces from;
dishonest or predatory insurance practices.
(Formerly: Acts 1947, c.112, s.4; Acts 1955, c.10, s.1; Acts 1971,
P.L.389, SEC.1; Acts 1974, P.L.124, SEC.1.) As amended by Acts
1981, P.L.247, SEC.1; P.L.259-1983, SEC.1; P.L.271-1987, SEC.5;
P.L.5-1988, SEC.144; P.L.160-1988, SEC.1; P.L.2-1992, SEC.783;
P.L.122-1992, SEC.2; P.L.8-1993, SEC.417; P.L.8-1993, SEC.418;
P.L.225-1993, SEC.1; P.L.223-1993, SEC.6; P.L.1-1994, SEC.134;
P.L.133-1994, SEC.1; P.L.116-1994, SEC.49; P.L.2-1995, SEC.104;
P.L.188-1996, SEC.1; P.L.185-1996, SEC.10; P.L.150-1997, SEC.2;
P.L.132-2001, SEC.8; P.L.130-2002, SEC.3; P.L.178-2003, SEC.35;
P.L.201-2003, SEC.2; P.L.211-2003, SEC.1; P.L.97-2004, SEC.97;
P.L.39-2005, SEC.2; P.L.138-2005, SEC.1; P.L.1-2006, SEC.487;
P.L.131-2007, SEC.1; P.L.3-2008, SEC.211; P.L.112-2008, SEC.2;
P.L.1-2009, SEC.146.
IC 27-4-1-4.5
Enumeration of unfair claim settlement practices
Sec. 4.5. The following are unfair claim settlement practices:
(1) Misrepresenting pertinent facts or insurance policy
provisions relating to coverages at issue.
(2) Failing to acknowledge and act reasonably promptly upon
communications with respect to claims arising under insurance
policies.
(3) Failing to adopt and implement reasonable standards for the
prompt investigation of claims arising under insurance policies.
(4) Refusing to pay claims without conducting a reasonable
investigation based upon all available information.
(5) Failing to affirm or deny coverage of claims within a
reasonable time after proof of loss statements have been
completed.
(6) Not attempting in good faith to effectuate prompt, fair, and
equitable settlements of claims in which liability has become
reasonably clear.
(7) Compelling insureds to institute litigation to recover
amounts due under an insurance policy by offering substantially
less than the amounts ultimately recovered in actions brought
by such insureds.
(8) Attempting to settle a claim for less than the amount to
which a reasonable individual would have believed the
individual was entitled by reference to written or printed
advertising material accompanying or made part of an
application.
(9) Attempting to settle claims on the basis of an application
that was altered without notice to or knowledge or consent of
the insured.
(10) Making claims payments to insureds or beneficiaries not
accompanied by a statement setting forth the coverage under
which the payments are being made.
(11) Making known to insureds or claimants a policy of
appealing from arbitration awards in favor of insureds or
claimants for the purpose of compelling them to accept
settlements or compromises less than the amount awarded in
arbitration.
(12) Delaying the investigation or payment of claims by
requiring an insured, a claimant, or the physician of either to
submit a preliminary claim report and then requiring the
subsequent submission of formal proof of loss forms, both of
which submissions contain substantially the same information.
(13) Failing to promptly settle claims, where liability has
become reasonably clear, under one (1) portion of the insurance
policy coverage in order to influence settlements under other
portions of the insurance policy coverage.
(14) Failing to promptly provide a reasonable explanation of the
basis in the insurance policy in relation to the facts or
applicable law for denial of a claim or for the offer of a
compromise settlement.
(15) In negotiations concerning liability insurance claims,
ascribing a percentage of fault to a person seeking to recover
from an insured party, in spite of an obvious absence of fault on
the part of that person.
(16) The unfair claims settlement practices defined in
IC 27-4-1.5.
As added by P.L.259-1983, SEC.2. Amended by P.L.271-1987,
SEC.6; P.L.194-1991, SEC.1; P.L.203-2001, SEC.7.
IC 27-4-1-5
Statement of charges; notice and hearing; intervention
Sec. 5. (a) Whenever the commissioner shall have reason to
believe that any such person has been engaged or is engaging in this
state in any unfair method of competition or any unfair or deceptive
act or practice defined in section 4 of this chapter and that a
proceeding by him in respect thereto would be to the interest of the
public, he shall issue and cause to be served upon such person a
statement of the charges in that respect and a notice in writing of a
hearing thereon to be held under IC 4-21.5-3.
(b) Whenever the hearing involves the claim, averment, or
complaint of, or made by, a person who is not an investigator,
deputy, examiner, or other employee of the department, a copy of the
substance of such claim, averment, or complaint shall be included in
or exhibited with such notice. The commissioner and department
shall afford all interested persons or parties the right and opportunity
for the settlement or adjustment of all claims, controversies, and
issues when such persons or parties shall join in a request in writing
for such opportunity.
(Formerly: Acts 1947, c.112, s.5.) As amended by P.L.252-1985,
SEC.147; P.L.7-1987, SEC.145.
IC 27-4-1-5.5
Repealed
(Repealed by P.L.1-1991, SEC.165.)
IC 27-4-1-5.6
Unfair claim settlement practice complaint; response;
investigation; report; notice of remedies
Sec. 5.6. (a) A person who believes the person has been adversely
affected by an unfair claim settlement practice under section 4.5 of
this chapter may file a complaint with the commissioner. If the
commissioner believes an unfair claim settlement practice has
occurred, the commissioner shall, within ten (10) business days from
the date of receipt of a written complaint, deliver a copy of the
complaint to the insurer and shall respond in writing to the
complaining party, at the address provided in the complaint, advising
the party of the following:
(1) The specific action taken by the department on the
complaint.
(2) Any further investigations or other actions that are intended
by the department.
(b) An insurer who receives a written notice of complaint under
subsection (a) shall promptly conduct an investigation of the matters
alleged in the complaint. Within twenty (20) business days from the
date of receipt of the complaint, the insurer shall provide to the
commissioner and the complaining party a written report containing
the following information:
(1) The specific reasons for actions taken by the insurer with
respect to the claim.
(2) The specific reasons for any inaction by the insurer with
respect to the claim.
(3) If the claim has not been settled, a good faith estimate of the
time required for settlement.
(c) An insurer who commits an unfair claims settlement practice
or who fails to comply with this section is subject to action by the
commissioner under section 6 of this chapter.
(d) Each insurer shall provide to each current policyholder a one
(1) time written notice of the remedies provided under this section.
Future policyholders shall be notified by the insurer at the time the
insurance policy is issued.
As added by P.L.1-1991, SEC.166.
IC 27-4-1-6
Cease and desist order; penalties
Sec. 6. (a) If after a hearing under IC 4-21.5-3, the commissioner
determines that the method of competition or the act or practice in
question is defined in section 4 of this chapter and that the person
complained of has engaged in such method of competition, act, or
practice in violation of this chapter, he shall reduce his findings to
writing and shall issue and cause to be served on the person charged
with the violation an order requiring such person to cease and desist
from such method of competition, act, or practice, and the
commissioner may at his discretion order one (1) or more of the
following:
(1) Payment of a civil penalty of not more than twenty-five
thousand dollars ($25,000) for each act or violation. If the
person knew or reasonably should have known that he was in
violation of this chapter, the penalty may be not more than fifty
thousand dollars ($50,000) for each act or violation.
(2) Suspension or revocation of the person's license, or
certificate of authority, if he knew or reasonably should have
known he was in violation of this chapter.
(b) In determining the amount of a civil penalty under subsection
(a)(1), the commissioner shall consider the remediation efforts
undertaken by the person.
(c) All civil penalties imposed and collected under this section
shall be deposited in the state general fund.
(Formerly: Acts 1947, c.112, s.6.) As amended by P.L.259-1983,
SEC.3; P.L.7-1987, SEC.146; P.L.121-1990, SEC.4; P.L.149-1990,
SEC.2; P.L.203-2001, SEC.8.
IC 27-4-1-7
Judicial review; civil enforcement orders
Sec. 7. (a) Any person required by an order of the commissioner
under section 6 of this chapter to cease and desist from engaging in
any unfair method of competition or any unfair or deceptive act or
practice defined in section 4 of this chapter may obtain judicial
review of such order under IC 4-21.5-5.
(b) The commissioner may file a petition for civil enforcement of
an order under IC 4-21.5-6.
(Formerly: Acts 1947, c.112, s.7.) As amended by P.L.252-1985,
SEC.148; P.L.7-1987, SEC.147.
IC 27-4-1-8
Determination of additional methods of unfair competition or
deceptive acts or practices; notice and hearing
Sec. 8. Whenever the commissioner shall have reason to believe
that any person engaged in the business of insurance is engaging in
this state in any method of competition or in any act or practice in the
conduct of such business which is not defined in section 4 of this
chapter, that such method of competition is unfair, or that such act or
practice is unfair or deceptive, and that a proceeding by him in
respect thereto would be to the interest of the public, he may issue
and cause to be served upon such person a statement of the charges
in that respect and a notice of a hearing thereon. Each such hearing
shall be conducted under IC 4-21.5-3 in the same manner as the
hearings provided for in section 5 of this chapter.
(Formerly: Acts 1947, c.112, s.8.) As amended by P.L.252-1985,
SEC.149; P.L.7-1987, SEC.148.
IC 27-4-1-9
Judicial review
Sec. 9. Any party to a proceeding under this chapter, including
any intervenor, may obtain judicial review under IC 4-21.5-5.
(Formerly: Acts 1947, c.112, s.9.) As amended by P.L.252-1985,
SEC.150; P.L.7-1987, SEC.149.
IC 27-4-1-10
Application of other laws
Sec. 10. No order of the commissioner under this chapter or
judgment of a court to enforce the same shall in any way relieve or
absolve any person affected by such order from any liability under
any other statute of this state.
(Formerly: Acts 1947, c.112, s.10.) As amended by P.L.252-1985,
SEC.151.
IC 27-4-1-11
Foreign or alien insurer's unfair competition or unfair or deceptive
practice by periodical or radio; notice to supervisory official of
domiciliary state
Sec. 11. If any foreign or alien insurer engages in this state in an
unfair method of competition or in an unfair or deceptive practice as
defined in section 4(1) or 4(2) of this chapter by means of any
advertisement, announcement, or statement, in any magazine or other
periodical publication having a general circulation in more than five
(5) states, or by means of any radio broadcast to more than five (5)
states, including the state of domicile of such insurer, and if the laws
of the state where such insurer is domiciled make provision for
enjoining of such method of competition or practice, it shall be the
duty of the commissioner to advise the insurance supervisory official
of such domiciliary state of the violation in order that he may take
appropriate action, but the commissioner shall have no authority to
proceed, with respect to such violation, under either section 5 or 8 of
this chapter. For the purpose of this section the domiciliary state of
an alien insurer shall be deemed to be its state of entry, or the state
of the principal office in the United States.
(Formerly: Acts 1947, c.112, s.11.) As amended by P.L.252-1985,
SEC.152.
IC 27-4-1-12
Violations; penalties
Sec. 12. Any person who violates a cease and desist order of the
commissioner under section 6 of this chapter, or an order of the court
under IC 4-21.5, after it has become final, and while such order is in
effect, may, after notice and hearing under IC 4-21.5 and upon order
of the commissioner, be subject at the discretion of the commissioner
to one (1) or more of the following:
(1) A civil penalty of not more than twenty-five thousand
dollars ($25,000) for each act or violation.
(2) Suspension or revocation of the person's license or
certificate of authority.
(Formerly: Acts 1947, c.112, s.12.) As amended by P.L.259-1983,
SEC.4; P.L.7-1987, SEC.150; P.L.121-1990, SEC.5; P.L.149-1990,
SEC.3.
IC 27-4-1-13
Cumulative powers and remedies
Sec. 13. The powers vested in the commissioner and the
department by this chapter shall be additional to any other powers to
enforce any penalties or forfeitures authorized by law with respect to
the methods, acts, and practices declared hereby to be unfair or
deceptive.
(Formerly: Acts 1947, c.112, s.13.) As amended by P.L.252-1985,
SEC.153.
IC 27-4-1-14
Repealed
(Repealed by P.L.7-1987, SEC.151.)
IC 27-4-1-15
Enforcement; additional personnel
Sec. 15. (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, agents, deputies, examiners, assistants,
stenographers, reporters, 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, reporters, 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, agents, deputies, examiners, assistants,
stenographers, reporters, and other employees shall be fixed by the
commissioner. Any actuary agent, deputy, examiner, assistant,
stenographer, 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 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 1947, c.112, s.15.) As amended by P.L.252-1985,
SEC.155.
IC 27-4-1-16
Inapplicable laws
Sec. 16. No provision of IC 4-22-2 shall be construed to apply to
any hearings held or proceedings had pursuant to the provisions of
this chapter.
(Formerly: Acts 1947, c.112, s.16.) As amended by P.L.252-1985,
SEC.156.
IC 27-4-1-17
Construction and application
Sec. 17. (a) This chapter shall be, and shall be construed as being,
in addition to IC 27-1, and in addition to IC 27-7-2, and in addition
to any and all statutes supplemental to either, and in addition to any
and all other laws of the state of Indiana concerning insurance or the
business of insurance, whether enacted at any time in the 1947
regular session or at any preceding session of the general assembly
of the state of Indiana.
(b) Whereas certain unlawful practices are set forth in other
insurance statutes of the state of Indiana which unlawful practices
are similar or identical to those enumerated in section 4 of this
chapter and are characterized in other insurance statutes as criminal
in nature, it is deemed desirable to retain the criminal penalties
imposed by other insurance statutes; for that purpose, nothing
contained in this chapter shall be construed to repeal, amend, or
otherwise to affect in any way IC 27-1, IC 27-7-2, or any other law
of the state of Indiana concerning insurance or the business of
insurance whether enacted at any time in the 1947 regular session or
at any preceding session of the general assembly of the state of
Indiana, it being the intent of this chapter to provide additional
administrative remedies for the purpose of controlling unfair
methods of competition and unfair and deceptive acts and practices
in and affecting the business of insurance.
(c) Nothing in this chapter shall be construed as exempting or
excepting from the provisions of this chapter any person engaged in
the business of insurance in this state, except as in this chapter
otherwise expressly provided.
(Formerly: Acts 1947, c.112, s.18.) As amended by P.L.252-1985,
SEC.157.
IC 27-4-1-18
Causes of action created
Sec. 18. This article does not create a cause of action other than
an action by:
(1) the commissioner to enforce his order; or
(2) a person, as defined in section 1 of this chapter, to appeal an
order of the commissioner.
As added by P.L.259-1983, SEC.6.
IC 27-4-1-19
Annual report of consumer complaints
Sec. 19. (a) The commissioner shall, on an annual basis and in a
manner determined by the commissioner, publish figures and
produce a report containing the following information:
(1) The ratio of valid consumer complaints lodged against each
company weighted by the direct premiums earned in Indiana by
each company.
(2) A separate listing of any company determined by the
commissioner to have committed a practice that is designated
an unfair claim settlement practice under section 4.5 of this
chapter if the practice is committed flagrantly and in conscious
disregard of section 4.5 of this chapter or if the practice is
committed with a frequency that indicates a general business
practice.
(3) Any enforcement action taken by the commissioner as a
result of a practice described in subdivision (2).
(b) The commissioner shall provide a copy of the report required
under subsection (a) to the house of representatives and senate
committees of the general assembly that are assigned responsibility
for insurance issues.
As added by P.L.121-1990, SEC.6 and P.L.149-1990, SEC.4.
Amended by P.L.203-2001, SEC.9.