Section 760 IAC 1-73-2 - Registration requirementsAuthority: IC 27-16-4-7; IC 27-16-5-4; IC 27-16-5-6; IC 27-16-8-4
Affected: IC 27-16
Sec. 2.
(a) A PEO doing business in Indiana must be registered with the department. The PEO shall submit an application on a form prescribed by the department. The application shall include the following information:(1) The name or names under which the applicant conducts business.(2) A copy of the applicant's articles of incorporation or other business organization documents.(3) The address of: (A) the principal place of business of the applicant; and(B) each office the applicant maintains in Indiana.(4) The applicant's taxpayer or employer identification number.(5) A list by jurisdiction of each name under which the applicant has operated in the preceding five (5) years, including any:(B) names of predecessors; and(C) if known, successor business entities.(6) A detailed explanation of any adverse regulatory actions taken by any state or federal regulatory law enforcement or regulatory agency against the applicant. An adverse regulatory action means any:(C) cease and desist order;(D) prohibition order; or(E) suspension, probation, or revocation of a license or registration.(7) A list of each person that, individually or acting in concert with one (1) or more other persons, owns or controls, directly or indirectly, twenty-five percent (25%) or more of the equity interests of the applicant.(8) The name and business experience of any individual who: (A) serves as president or chief executive officer; or(B) otherwise has the authority to act as senior executive officer of the applicant. If the PEO maintains a health benefit plan that is not fully insured, the application shall include NAIC biographical affidavits of any managerial person for the health benefit plan.
(9) A financial statement reviewed by an independent person for the applicant's most recent fiscal year prepared: (A) in accordance with generally accepted accounting principles; and(B) by an independent certified public accountant licensed to practice in the jurisdiction in which the accountant is located. A PEO that maintains a health benefit plan that is not fully insured shall submit a financial statement that is audited rather than reviewed.
(10) A statement of whether the applicant intends to provide health benefits to its employees and whether the health benefits will be fully insured or not fully insured.(A) If the health benefits will be fully insured, the PEO shall provide the following information: (i) The name of the insurance company.(ii) The insurance producer through which the coverage was purchased.(iii) The effective dates of the coverage.(B) If the health benefits will not be fully insured, the applicant must provide proof of compliance with section 7 of this rule.(11) Verification that the applicant complies with the workers compensation laws of Indiana and a list of its Indiana clients.(12) Verification that the PEO has a minimum net worth of fifty thousand dollars ($50,000) or a bond approved by the department with a market value of at least fifty thousand dollars ($50,000). The bond must be held by a depository designated by the department securing payment by the PEO of all taxes, wages, benefits, or other entitlements due to or with respect to employees in the event the PEO does not make the payment when due. A PEO that maintains a health benefit plan that is not fully insured must have a fidelity bond even if it has a minimum net worth of fifty thousand dollars ($50,000). The fidelity bond shall cover all persons with responsibility for the health benefit plan covering acts of dishonesty in the greater of the following amounts based upon the expected amounts for the upcoming fiscal year:(A) Ten percent (10%) of the premiums and contributions received by the health benefit plan.(B) Ten percent (10%) of the claims paid.(b) The application shall be accompanied by a fee of five hundred dollars ($500).(c) If there is a material change to any of the information required by the application, the PEO shall provide updated information to the department within thirty (30) days of the change. A PEO that fails to inform the department of a material change: (1) is subject to administrative action; and(2) may be subject to a penalty, probation, suspension, or revocation of the PEO's registration.Department of Insurance; 760 IAC 1-73-2; filed May 24, 2007, 4:15 p.m.: 20070620-IR-760060069FRA; readopted filed November 26, 2013, 3:43 p.m.: 20131225-IR-760130479RFAReadopted filed 11/19/2019, 9:18 a.m.: 20191218-IR-760190497RFA