Section 760 IAC 1-53-5 - Order of the commissionerAuthority: 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.
Department of Insurance; 760 IAC 1-53-5; filed Aug 24, 1993, 5:00 p.m.: 17 IR 9; readopted filed Sep 14, 2001, 12:22 p.m.: 25 IR 531; readopted filed Nov 27, 2007, 4:01 p.m.: 20071226-IR-760070717RFA; filed May 16, 2013, 11:18 a.m.: 20130612-IR-760120464FRA; readopted filed November 26, 2013, 3:43 p.m.: 20131225-IR-760130479RFAReadopted filed 11/19/2019, 9:18 a.m.: 20191218-IR-760190497RFA