Authority: IC
27-1-3-7
Affected: IC
4-21.5-4-3;
IC
4-21.5-4-4; IC
27-1-1-1; IC
27-9-2-1
Sec. 5.
(a) If the
commissioner determines that the continued operation of the insurer licensed to
transact business in this state may be hazardous to the policyholders or the
general public, then the
commissioner may, in addition to any other action the
commissioner may take under IC
27-9-2-1(b)
or any other statute or rule, issue an order
requiring the insurer to do the following:
(1) Reduce the total amount of present and
potential liability for policy benefits by reinsurance.
(2) Reduce, suspend, or limit the volume of
business being accepted or renewed.
(3) Reduce general insurance and commission
expenses by specified methods.
(4)
Increase the insurer's capital and surplus.
(5) Suspend or limit the declaration and
payment of dividends by an insurer to its stockholders or to its
policyholders.
(6) File reports in
a form acceptable to the commissioner concerning the market value of an
insurer's assets.
(7) Limit or
withdraw from certain investments or discontinue certain investment practices
to the extent the commissioner deems necessary.
(8) Document the adequacy of premium rates in
relation to the risks insured.
(9)
File, in addition to regular annual statements, interim financial reports on
the form adopted by the NAIC or in such format as promulgated by the
commissioner.
(10) Correct
corporate governance practice deficiencies and adopt and utilize governance
practices acceptable to the commissioner.
(11) Provide a business plan to the
commissioner in order to continue to transact business in the state.
(12) Notwithstanding any other provision of
law limiting the frequency or amount of premium rate adjustments, adjust rates
for any non-life insurance product written by the insurer that the
commissioner
considers necessary to improve the financial condition of the insurer.
If the insurer is a foreign insurer, the order of the
commissioner may be limited to the extent provided by statute.
(b) Any insurer subject
to an order under subsection (a) may request a hearing to review that order as
permitted under IC
4-21.5-4-4. The notice
of hearing shall be served upon the insurer under IC
4-21.5-4-3.
The notice of hearing shall include the following information:
(1) The time and place of hearing.
(2) The conduct, condition, or ground upon
which the
commissioner based the order.
Unless mutually agreed between the commissioner and the
insurer, the hearing shall occur not less than ten (10) days nor more than
thirty (30) days after notice is served. The hearing shall be held in Marion
County, Indiana. The commissioner shall hold all hearings under this subsection
privately, unless the insurer requests a public hearing, in which case the
hearing shall be public.
