CHAPTER 2. WORKER'S COMPENSATION
IC 27-7-2
Chapter 2. Worker's Compensation
IC 27-7-2-1
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-1.1
Purposes of chapter
Sec. 1.1. The purposes of this chapter are as follows:
(1) To prohibit price fixing agreements and other
anticompetitive behavior by companies.
(2) To protect policyholders and the public against the adverse
effects of excessive, inadequate, or unfairly discriminatory
rates.
(3) To promote price competition among companies so as to
provide rates that are responsive to competitive market
conditions.
(4) To provide regulatory procedures for the maintenance of
appropriate data reporting systems.
(5) To improve availability, fairness, and reliability of
insurance.
(6) To authorize essential cooperative action among companies
in the ratemaking process and to regulate such activity to
prevent practices that tend to substantially lessen competition
or create a monopoly.
(7) To encourage the most efficient and economic marketing
practices.
As added by P.L.249-1989, SEC.1.
IC 27-7-2-1.2
Insurers and underwriters subject to chapter
Sec. 1.2. This chapter applies to all persons, firms, partnerships,
corporations, associations, and systems and to associations operating
as Lloyds, interinsurers, or individual underwriters authorized on or
after July 1, 1935, to transact the business of making worker's
compensation insurance in Indiana. All domestic, foreign, and alien
companies authorized to issue worker's compensation insurance
policies in Indiana are subject to this chapter.
As added by P.L.249-1989, SEC.2.
IC 27-7-2-2
Definitions
Sec. 2. As used in this chapter and unless a different meaning
appears from the context:
(a) "Department" means the department of insurance of this state.
(b) "Worker's compensation board" means the worker's
compensation board of Indiana.
(c) "Company" means an insurance company and includes all
persons, partnerships, corporations, or associations engaged in
making worker's compensation insurance under the laws of this state.
(d) "Domestic company" means a company organized under the
laws of this state.
(e) "Foreign company" means a company organized under the
laws of any state of the United States, other than this state or under
the laws of any territory or insular possession of the United States or
the District of Columbia.
(f) "Alien company" means a company organized under the laws
of any country other than the United States or a territory or insular
possession thereof or of the District of Columbia.
(g) "Person" includes individuals, corporations, firms, companies,
associations, and partnerships. The personal pronoun includes all
genders. The singular includes the plural, and the plural includes the
singular.
(h) "Commissioner" means the insurance commissioner of this
state.
(i) "Bureau" means the worker's compensation rating bureau of
Indiana.
(j) "Interested person" means any person who has filed with the
department a request to be notified under sections 4(b) and 20.2(c)
of this chapter of each filing of rates by the bureau or a company.
(k) "Assigned risk plan" means the plan by which members of the
worker's compensation rating bureau provide for the insurance of
rejected risks.
(l) "Classification system" or "classification" means the plan,
system, or arrangement for recognizing differences in exposure to
hazards among industries, occupations, or operations of insurance
policyholders.
(m) "Experience rating" means a rating procedure utilizing past
insurance experience of the individual policyholder to forecast future
losses by measuring the policyholder's loss experience against the
loss experience of policyholders in the same classification to produce
a prospective premium credit, debit, or unity modification.
(n) "Rate" means the cost of insurance per exposure base unit,
prior to any application of individual risk variations based on loss or
expense considerations, and does not include minimum premiums.
(o) "Schedule rating plan" means an independent rating plan that
measures hazard differences that have an immediate bearing on the
probability or severity of loss and applies debits and credits to
modify the premium for a risk.
(p) "Statistical plan" means the plan, system, or arrangement used
in collecting data.
(q) "Supplementary rate information" means any manual or plan
of rates, classification system, rating schedule, minimum premium,
rating rule, rating plan, and any other similar information needed to
determine the applicable premium for an insured.
(r) "Supporting information" means the experience and judgment
of the filer and the experience or data of other companies or
organizations relied on by the filer, the interpretation of any
statistical data relied on by the filer, descriptions of methods used in
making the rates, and any other similar information required to be
filed by the commissioner.
(Formerly: Acts 1935, c.323, s.2; Acts 1959, c.231, s.2.) As amended
by P.L.252-1985, SEC.228; P.L.28-1988, SEC.87; P.L.249-1989,
SEC.3.
IC 27-7-2-3
Worker's compensation rating bureau; membership
Sec. 3. After July 1, 1935, every insurance company authorized to
effect worker's compensation insurance in this state shall be a
member of the worker's compensation rating bureau of Indiana. The
bureau shall be composed of all insurance companies lawfully
engaged on July 1, 1935, wholly or in part in making worker's
compensation insurance in Indiana or who shall after July 1, 1935,
be issued a certificate of authority to make worker's compensation
insurance in this state.
(Formerly: Acts 1935, c.323, s.3.) As amended by P.L.252-1985,
SEC.229; P.L.28-1988, SEC.88.
IC 27-7-2-3.1
Duties of bureau
Sec. 3.1. The bureau, in addition to other activities not prohibited,
is authorized to do the following:
(1) Develop a statistical plan including class definitions.
(2) Collect statistical data from members, subscribers or any
other source.
(3) Prepare and distribute rate data, adjusted for loss
development and loss trending, in accordance with its statistical
plan. Such data and adjustments shall be in sufficient detail so
as to permit companies to modify such rates or minimum
premiums based on their own rating methods or interpretations
of underlying data.
(4) Prepare and distribute manuals of rating rules and rating
schedules.
(5) Distribute information that is filed with the commissioner
and open to public inspection.
(6) Conduct research and collect statistics in order to discover,
identify, and classify information relating to cause or prevention
of losses.
(7) Prepare and file policy forms and endorsements and consult
with members, subscribers, and others relative to their use and
application.
(8) Collect, compile, and distribute past and current prices of
individual companies if such information is made available to
the general public.
(9) Conduct research and collect information to determine the
impact of benefit level changes on rates.
(10) Prepare and distribute rules and rating values for the
experience rating plan. Calculate and disseminate individual
risk premium modification.
(11) Assist an individual company to develop minimum
premiums, rates, supplementary rate information, or supporting
information when so authorized by the individual company.
As added by P.L.249-1989, SEC.4.
IC 27-7-2-4
Rate filings; notice
Sec. 4. (a) The bureau shall file not less than once each calendar
year recommended minimum premiums and rates for worker's
compensation insurance subject to the approval of the commissioner.
(b) There shall accompany each filing adequate proof that notice
of the filing has been mailed, by first class United States mail, to
each interested person at the person's address as shown on the
records of the department.
(Formerly: Acts 1935, c.323, s.4; Acts 1959, c.231, s.3.) As amended
by P.L.28-1988, SEC.89; P.L.249-1989, SEC.5.
IC 27-7-2-5
Management of bureau
Sec. 5. The management of said bureau shall be in the hands of
duly elected officers or committees provided for in the bylaws of said
bureau; each member of the bureau or member group with affiliate
or subsidiary companies shall be entitled to only one (1) vote on any
subject coming before the bureau for determination.
(Formerly: Acts 1935, c.323, s.5.) As amended by P.L.116-1994,
SEC.55.
IC 27-7-2-6
By-laws of bureau
Sec. 6. The bureau shall make by-laws for its government and for
the government of its members. Such by-laws and amendments
thereto shall be filed with and approved by the insurance
commissioner before they shall be effective.
(Formerly: Acts 1935, c.323, s.6.)
IC 27-7-2-7
Representation of stock and nonstock companies; resolution of tie
votes
Sec. 7. Stock companies and nonstock companies shall be
represented in the bureau management and on all committees. In case
of a tie vote in any committee or governing body of said bureau, the
insurance commissioner shall decide the matter.
(Formerly: Acts 1935, c.323, s.7.)
IC 27-7-2-8
Membership in bureau
Sec. 8. The bureau shall admit to membership every company
lawfully engaged in whole or in part in writing worker's
compensation insurance in Indiana.
(Formerly: Acts 1935, c.323, s.8.) As amended by P.L.28-1988,
SEC.90.
IC 27-7-2-9
Charges and expenses of bureau; apportionment; review
Sec. 9. The charges and expenses incident to the establishment
and operation of the bureau shall be borne equitably and without
discrimination among the members of the bureau. If any member is
aggrieved by an apportionment of the cost or costs made by the
bureau or by failure of the bureau to make such equitable
apportionment, it may in writing petition the commissioner for a
review of such apportionment or failure to act. The commissioner
shall upon not less than five (5) days' notice to each member hold a
hearing upon such petition at which time all members shall be
entitled to be heard. And said commissioner shall determine the
matter or matters and mail a copy of his decision to each member of
the bureau. The decision of the commissioner shall be final.
(Formerly: Acts 1935, c.323, s.9.)
IC 27-7-2-10
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-11
Approval of classifications, premiums, or rates; consultations with
worker's compensation board; duty of board to furnish
information
Sec. 11. (a) In approving classifications, premiums, or rates, the
department may in all cases consult with the worker's compensation
board or member thereof. The department may also consult with the
worker's compensation board or members thereof on any other matter
arising under this chapter.
(b) The worker's compensation board shall furnish the department
all available information at its disposal and permit the department to
have access to all records of the worker's compensation board which
the department may wish to consult in the performance of its duties
under this chapter.
(Formerly: Acts 1935, c.323, s.11.) As amended by P.L.252-1985,
SEC.231; P.L.28-1988, SEC.92; P.L.249-1989, SEC.6.
IC 27-7-2-12
Representative of department; appointment; powers and duties
Sec. 12. The department may authorize any person to attend
meetings of the rating bureau, hold hearings, make investigations,
and make examinations with reference to any subject over which it
has jurisdiction under this chapter. The person so appointed shall
have all the powers of the department in relation to said hearings,
investigations, or examinations, and shall report in writing to the
department the results of such hearings, examinations, or
investigations, and any testimony taken by him.
(Formerly: Acts 1935, c.323, s.12.) As amended by P.L.252-1985,
SEC.232.
IC 27-7-2-13
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-14
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-15
Approval of system of schedule rating
Sec. 15. The department shall after consultation with members of
the bureau and after investigation approve a system of schedule
rating for use in this state. Only the system filed by the bureau and
approved by the department may be used in Indiana.
(Formerly: Acts 1935, c.323, s.15.) As amended by P.L.249-1989,
SEC.7.
IC 27-7-2-16
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-17
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-18
Exclusion of physical impairment of employees in rate making
Sec. 18. The physical impairment of employees shall not be taken
into account in establishing rates or system of schedule or merit
rating.
(Formerly: Acts 1935, c.323, s.18.)
IC 27-7-2-19
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-20
Adherence to approved rules, forms, plans, and systems; annual
reports
Sec. 20. (a) Every company shall adhere to manual rules, policy
forms, a statistical plan, a classification system, and experience
rating plan filed by the bureau and approved by the commissioner.
(b) The commissioner shall designate the bureau to assist in
gathering, compiling, and reporting relevant statistical information.
Every company shall record and report its worker's compensation
experience to the bureau according to the statistical plan approved by
the commissioner. The report shall include any deviation from the
filed recommended minimum premiums and rates, in total and by
classification. The bureau shall annually submit data concerning
these deviations to the department. Upon receipt, the department
shall evaluate the data and prepare a report concerning the effect of
competitive rating in Indiana. The department shall make the report
available not later than October 31 of each year.
(c) Every company shall adhere to the approved manual rules,
policy forms, statistical plan, classification system, and experience
rating plan in the recording and reporting of data to the bureau.
(d) Copies of all approved classifications, rules, and forms shall
be provided to the worker's compensation board.
(Formerly: Acts 1935, c.323, s.20.) As amended by P.L.28-1988,
SEC.95; P.L.249-1989, SEC.8; P.L.91-1998, SEC.8.
IC 27-7-2-20.1
Minimum premiums and rates
Sec. 20.1. Minimum premiums and rates may not be excessive,
inadequate, or unfairly discriminatory.
As added by P.L.249-1989, SEC.9.
IC 27-7-2-20.2
Minimum premiums, rates, and supplementary rate information;
filing; approval; proof of notice; public inspection
Sec. 20.2. (a) Every company and the bureau shall file with the
commissioner all minimum premiums, rates, and supplementary rate
information that are to be used in Indiana. Such minimum premiums,
rates, and supplementary rate information must be submitted to the
commissioner at least thirty (30) days before the effective date. The
commissioner shall disapprove a filing that does not meet the
requirements of section 20.1 of this chapter. A filing shall be deemed
approved unless disapproved by the commissioner within thirty (30)
days after the filing is made. A company may adopt by reference,
with or without deviation, the minimum premiums, rates, and
supplementary rate information filed by another company or by the
bureau.
(b) Minimum premiums, rates, and supplementary information
filed under this section shall be filed in the form and manner
prescribed by the commissioner.
(c) There shall accompany each filing adequate proof that notice
of the filing has been mailed, by first class United States mail, to
each interested person at the person's address as shown on the
records of the department.
(d) All information filed under this chapter shall, as soon as filed,
be open to the public for inspection and copying under IC 5-14-3.
As added by P.L.249-1989, SEC.10.
IC 27-7-2-20.3
Minimum premiums or rates; disapproval
Sec. 20.3. (a) Minimum premiums or rates may be disapproved at
the following times:
(1) At any time subsequent to the effective date.
(2) Before the effective date.
(b) Minimum premiums or rates may be disapproved for any of
the following reasons:
(1) If the company fails to comply with the filing requirements
under section 20.2 of this chapter.
(2) If the commissioner finds that the minimum premium or rate
is excessive, inadequate, or unfairly discriminatory.
(c) The following procedure shall be used for disapproval of
minimum premiums or rates:
(1) The commissioner may disapprove, without hearing,
minimum premiums or rates filed under section 20.2 or 28.1 of
this chapter that have not become effective. However, the
bureau or a company whose minimum premiums or rates have
been disapproved shall be given a hearing upon a written
request made within thirty (30) days after the date of the
disapproval order.
(2) Every company or the bureau shall provide within Indiana
reasonable means whereby any person aggrieved by the
application of its filings may be heard on written request to
review the manner in which such rating system has been applied
in connection with the insurance afforded or offered. If the
company or the bureau fails to grant or reject such request
within thirty (30) days, the aggrieved person may proceed in the
same manner as if the request had been rejected. Any aggrieved
person affected by the action of such company or the bureau on
such request may, within thirty (30) days after written notice of
such action, appeal to the commissioner who, after a hearing
held upon not less than ten (10) days written notice to the
aggrieved person and to such company or the bureau, may
affirm, modify, or reverse such action.
(d) If the commissioner disapproves a minimum premium or rate,
the commissioner shall issue an order specifying in what respects
minimum premium or the rate fails to meet the requirements of this
chapter and stating when within a reasonable period thereafter such
minimum premium or rate shall be discontinued for any policy issued
or renewed after a date specified in the order. The order shall be
issued within thirty (30) days after the close of the hearing or within
such reasonable time extension as the commissioner may fix. Such
order may include a provision for premium adjustment for the period
after the effective date of the order for policies in effect on such date.
(e) Whenever a company has no legally effective minimum
premiums or rates as a result of the commissioner's disapproval of
minimum premiums or rates or other act, the commissioner shall
specify interim minimum premiums or rates for the company that are
adequate to protect the interests of all parties and may order that a
specified portion of the premiums be placed in an escrow account
approved by the commissioner. When new minimum premiums or
rates become legally effective, the commissioner shall order the
escrowed funds or any overcharge in the interim minimum premiums
or rates to be distributed appropriately, except that refunds of less
than ten dollars ($10) per policyholder shall not be required.
As added by P.L.249-1989, SEC.11.
IC 27-7-2-20.4
Arrangements in restraint of trade; presumption; subsidiary
companies
Sec. 20.4. (a) A company or the bureau may not make any
arrangement with any other company or other person that has the
purpose or effect of restraining trade unreasonably or of substantially
lessening competition in the business of insurance.
(b) A company may not agree with any other company or the
bureau to adhere to or use any rate, rating plan (other than the
experience rating plan), or rating rule except as needed to comply
with the requirements of section 20 of this chapter.
(c) The fact that two (2) or more companies use consistently or
intermittently the same rules, rating plans, rating schedules, rating
rules, policy forms, rate classifications, underwriting rules, surveys,
or inspections or similar materials is not sufficient in itself to support
a finding that an agreement prohibited by subsection (b) exists.
(d) Two (2) or more companies having a common ownership or
operating in Indiana under common management or control may act
in concert between or among themselves with respect to any matters
pertaining to those authorized in this chapter as if they constituted a
single company.
As added by P.L.249-1989, SEC.12.
IC 27-7-2-21
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-22
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-23
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-24
Appointment of resident agent for service of process
Sec. 24. Every person lawfully engaged wholly or in part in
writing worker's compensation insurance in this state shall, upon July
1, 1935, by written notice to the insurance commissioner, appoint an
individual resident of Indiana, a corporate resident of Indiana, or an
authorized Indiana insurer as the person's resident agent in Indiana
upon whom service of process may be had for the enforcement of
this chapter.
(Formerly: Acts 1935, c.323, s.24.) As amended by P.L.252-1985,
SEC.235; P.L.28-1988, SEC.98; P.L.268-1999, SEC.17.
IC 27-7-2-25
Annual license of rating bureau
Sec. 25. The bureau shall procure annually from the department
a license to carry on its business for which license a fee of one
hundred dollars ($100) shall be paid to the state of Indiana through
the insurance department of this state. The license year shall
terminate on the thirtieth day of April of each year.
(Formerly: Acts 1935, c.323, s.25.)
IC 27-7-2-26
Effect of chapter on mutual insurance associations and reciprocal
associations
Sec. 26. Nothing in this chapter shall be construed to annul,
restrict, or in any manner interfere with the licensing and supervision
of mutual insurance associations and reciprocal associations formed
and operating on or before January 1, 1991, solely for the writing of
worker's compensation insurance as provided under IC 22-3-2
through IC 22-3-6.
(Formerly: Acts 1935, c.323, s.26.) As amended by P.L.252-1985,
SEC.236; P.L.28-1988, SEC.99; P.L.170-1991, SEC.28.
IC 27-7-2-27
Jurisdiction of courts of Marion County; review
Sec. 27. (a) The courts of Marion County, Indiana, shall have
jurisdiction in all matters arising under this chapter except such
rulings by the department as are made final by this chapter.
(b) Any order or decision of the commissioner made under this
chapter is subject to review in the circuit or superior court of Marion
County by any party in interest. An appeal must be taken within
thirty (30) days after the date of the order or decision of the
commissioner. The court shall determine whether the filing of the
petition for review shall operate as a stay of the order or decision of
the commissioner. The court may, in disposing of the issue before it,
affirm or set aside the order or decision of the commissioner. If the
order or decision of the commissioner is affirmed, the court shall
make its own order and judgment commanding obedience to the
order or decision of the commissioner. An appeal may be taken to the
supreme court as in civil actions from any order or judgment of the
circuit or superior court made under this section.
(Formerly: Acts 1935, c.323, s.27.) As amended by P.L.252-1985,
SEC.237; P.L.249-1989, SEC.13.
IC 27-7-2-28
Duty to insure and accept certain rejected risks
Sec. 28. From and after July 1, 1935, all insurance companies
authorized to effect worker's compensation insurance in this state,
and being members of the worker's compensation rating bureau of
Indiana, shall insure and accept any worker's compensation risk
tendered to and rejected in writing by any three (3) members of the
bureau in the manner provided in this chapter.
(Formerly: Acts 1935, c.323, s.28.) As amended by P.L.252-1985,
SEC.238; P.L.28-1988, SEC.100.
IC 27-7-2-28.1
Assigned risk plan; filing; approval
Sec. 28.1. (a) All companies authorized to write worker's
compensation insurance shall participate in the assigned risk plan
providing for the equitable apportionment among them of insurance
that may be afforded to applicants who are in good faith entitled to
but who are unable to procure such insurance through ordinary
methods. The bureau shall file, at least thirty (30) days before their
effective date, the plan of operation, rates, rating plans, rules, policy
forms, and any future modifications thereof, with the commissioner
for approval. Such rates shall reflect experience in the assigned risk
plan to the extent it is actuarially appropriate. The rates must reflect
the varied categories of rejected risks covered by the assigned risk
plan and must include at least two (2) rating plans, one (1) of which
may not exceed the recommended minimum premiums and rates filed
by the bureau under section 4 of this chapter.
(b) The commissioner shall disapprove any filing that does not
meet the requirements of section 20.1 of this chapter. A filing shall
be deemed to meet such requirements unless disapproved by the
commissioner within thirty (30) days after the filing is made. In
disapproving a filing made under this section, the commissioner shall
have the same authority and follow the same procedure as in
disapproving a filing under section 20.3 of this chapter.
As added by P.L.249-1989, SEC.14.
IC 27-7-2-28.2
Examination of records; costs
Sec. 28.2. (a) The commissioner may examine any company, the
bureau, or the assigned risk plan as the commissioner considers
necessary to ascertain compliance with this chapter.
(b) Every company, the bureau, and the assigned risk plan shall
maintain reasonable records of the type and kind reasonably adapted
to its method of operation containing its experiences or the
experience of its staff members including the data, statistics, or
information collected or used by it in its activities. These records
shall be available at all reasonable times to enable the commissioner
to determine whether the activities of the bureau, company, and the
assigned risk plan comply with this chapter. Such records shall be
maintained in an office within Indiana or shall be made available to
the commissioner for examination or inspection at any time upon
reasonable notice.
(c) The reasonable cost of an examination made under this section
shall be paid by the examined party upon presentation of a detailed
account of such costs.
(d) Instead of an examination the commissioner may accept the
report of an examination by the insurance supervisory official of
another state, made under the laws of that state.
As added by P.L.249-1989, SEC.15.
IC 27-7-2-29
Rejected risks; designation of insurer; reinsurance
Sec. 29. (a) When any such rejected risk is called to the attention
of the worker's compensation board and it appearing to the board that
said risk is in good faith entitled to coverage, said bureau upon the
order of the board shall fix the initial premium for the coverage.
(b) Upon payment, of the premium fixed under subsection (a), the
bureau shall designate a member of said bureau whose duty it shall
be to issue a policy containing the usual and customary provisions
found in such policies therefor. However, for this undertaking all
members of said bureau shall be reinsurers as among themselves in
the amount which the compensation insurance written in this state
during the preceding calendar year by such member bears to the total
compensation insurance written in this state during the preceding
year by all members of said bureau.
(Formerly: Acts 1935, c.323, s.29.) As amended by P.L.28-1988,
SEC.101.
IC 27-7-2-30
Rules; adoption
Sec. 30. The bureau shall, by July 31, 1935, make and adopt such
rules as may be necessary to carry out the provisions of this chapter,
subject to the approval of the insurance commissioner.
(Formerly: Acts 1935, c.323, s.30.) As amended by P.L.252-1985,
SEC.239.
IC 27-7-2-31
Loss of coverage for nonpayment of premiums; report of
conditions precluding insurance; coverage pending decision
Sec. 31. No employer who does not pay the advance premiums or
premium when due, shall be entitled to insurance, nor shall any
coverage be extended until all obligations to pay worker's
compensation insurance premiums contracted during the previous
twelve (12) months have been paid. If, in the opinion of the
designated carrying company or the bureau, physical or moral
conditions exist in any risk which shall preclude the risk from
obtaining insurance, that risk shall be reported to the worker's
compensation board and to the department. The bureau shall, in those
cases, furnish the board and the department with its
recommendations for improving safety conditions, which, if
complied with, would entitle the risk to insurance. Pending a
decision by the board or the department, insurance shall be effective
as otherwise provided in this chapter. However, the board, or the
department, or both shall make that decision within sixty (60) days
after such recommendations are furnished by the bureau.
(Formerly: Acts 1935, c.323, s.31.) As amended by P.L.252-1985,
SEC.240; P.L.28-1988, SEC.102.
IC 27-7-2-32
Considerations in designating insurer to assume rejected risk;
review of reasons
Sec. 32. In designating the bureau member to insure a rejected
risk, the bureau shall have due regard for the service facilities and
compensation premium volume in Indiana of the member so
designated as the carrying company. Any grievance on the part of
such bureau member with the respect of such designation shall be
brought to the attention of the bureau for review and such action as
the circumstances may justify.
(Formerly: Acts 1935, c.323, s.32.)
IC 27-7-2-33
Designated insurer carrying rejected risk; additional inspection;
renewal rates
Sec. 33. At any time while a policy, written pursuant to
designation by the bureau, is in force, the carrying company, upon its
own initiative, may make a further careful inspection of the risk for
the purpose of measuring its hazards, making recommendation for
the promotion of the safety of employees and determining the rate or
rates which should apply to insurance issued in renewal of such
policy. Rates for the renewal of any policy issued pursuant to this
chapter shall take into account the available experience of the risk for
the previous five (5) years, and such rates shall be made in
contemplation of the facts disclosed by the most recent inspection of
the risk by the rating bureau as provided in this chapter, subject to
the approval of the department.
(Formerly: Acts 1935, c.323, s.33.) As amended by P.L.252-1985,
SEC.241.
IC 27-7-2-34
Information concerning rejected risks; automatic insurance
Sec. 34. The management of the bureau shall furnish to all
members of the bureau complete information concerning each
rejected risk and any member of such bureau may write any rejected
risk as regular business in which event the risk so written shall no
longer be treated as provided for in section 29 of this chapter. If, at
expiration, the risk is still uninsured on voluntary basis, it shall
automatically be insured as provided in section 29 of this chapter.
(Formerly: Acts 1935, c.323, s.34.) As amended by P.L.252-1985,
SEC.242; P.L.202-2001, SEC.12.
IC 27-7-2-35
Record of rejected risks referred by bureau to members; effect of
writing rejected risk as regular business
Sec. 35. The bureau shall keep a record of all risks referred to
members as carrying company, coming within the provisions of
section 29 of this chapter, and this record shall be open to any bureau
member or its authorized representative. Any member may at any
time write as regular business any risk which is carried by any other
member as a carrying company, under the provisions of section 29
and such carrying company shall cancel such policy on a pro rata
premium basis or thereafter carry such risk in its entirety as regular
business.
(Formerly: Acts 1935, c.323, s.35.) As amended by P.L.252-1985,
SEC.243.
IC 27-7-2-36
Repealed
(Repealed by P.L.249-1989, SEC.19.)
IC 27-7-2-37
Cancellation of rejected risk coverage; grounds; effect
Sec. 37. (a) If, after the issuance of a policy, it develops that an
employer is not or ceases to be in good faith entitled to compensation
insurance, the carrying company which issued the policy shall have
the right, upon authorization of the bureau and the worker's
compensation board, to cancel the insurance in accordance with the
conditions of the policy.
(b) If a policy is cancelled under the circumstances described in
subsection (a), the risk shall not be assigned again by the bureau to
any of its members as a carrying company until it is fully satisfied
that the employer is entitled to insure as a proper rejected risk under
this chapter.
(c) In the event of a cancellation under this section, the facts
justifying such action shall be referred to the worker's compensation
board and the department.
(Formerly: Acts 1935, c.323, s.37.) As amended by P.L.252-1985,
SEC.245; P.L.28-1988, SEC.103.
IC 27-7-2-37.5
Refund of dividends, savings, or unabsorbed premium deposits
Sec. 37.5. (a) Nothing in this chapter prohibits or regulates the
payment of dividends, savings, or unabsorbed premium deposits
allowed or returned by companies to their policyholders, members,
or subscribers, but in the payment of such dividends there shall be no
unfair discrimination between policyholders.
(b) A plan for the payment of dividends, savings, or unabsorbed
premium deposits allowed or returned by companies to their
policyholders, members, or subscribers is not considered a rating
plan or system.
(c) It is an unfair trade practice to make the payment of a dividend
or any portion thereof conditioned upon renewal of the policy or
contract.
As added by P.L.249-1989, SEC.16.
IC 27-7-2-38
Violations; penalties; suspension or revocation of license
Sec. 38. (a) A person who fails to comply with this chapter or fails
to comply with any lawful order or ruling made by the department in
the administration of this chapter commits a Class C infraction. If a
person is fined for violating this section and fails to pay the fine
within thirty (30) days after final judgment, the insurance
commissioner shall suspend the license of the person to transact any
form of insurance business in Indiana until the fine and costs incident
to the final judgment are paid in full.
(b) The commissioner may, if the commissioner finds that any
person or organization has violated this chapter, impose a penalty of
not more than one thousand dollars ($1,000) for each such violation
but if the commissioner finds the violation is willful the
commissioner may impose a penalty of not more than ten thousand
dollars ($10,000) for each such violation. These penalties are in
addition to any other penalty provided by law.
(c) For purposes of this section, any company using a rate for
which the company has failed to file the rate, supplementary rate
information, or supporting information, as required by this chapter,
shall have committed a separate violation for each day such failure
continues.
(d) The commissioner may suspend or revoke the license of the
bureau or any company that fails to comply with an order of the
commissioner within the time limit specified by such order, or any
extension of time that the commissioner may grant.
(e) The commissioner may determine when a suspension of
license becomes effective and it shall remain in effect for the period
fixed by the commissioner, unless the commissioner modifies or
rescinds such suspension, or until the order upon which such
suspension is based is modified, rescinded, or reversed.
(f) No penalty shall be imposed and no license shall be suspended
or revoked except on a written order of the commissioner, stating the
commissioner's findings, made after a hearing.
(Formerly: Acts 1935, c.323, s.38.) As amended by Acts 1978, P.L.2,
SEC.2723; P.L.249-1989, SEC.17.
IC 27-7-2-39
Appointment and compensation of personnel; appropriation
Sec. 39. The governor shall appoint such deputies, examiners,
actuaries, assistants, and other employees in the department of
insurance as may be found necessary to carry out the provisions of
this chapter and fix the compensation thereof, subject to the approval
of the state budget agency. There is hereby appropriated out of funds
not otherwise appropriated in the general fund such sums as may be
necessary to carry out the provisions of this chapter.
(Formerly: Acts 1935, c.323, s.38a.) As amended by P.L.252-1985,
SEC.246.