Title 27, INSURANCE

Sec. 16. As used in this chapter, "RBC" refers to risk based capital. As added by P.L.186-1996, SEC.1.

Sec. 18. As used in this chapter, "RBC level" means an insurer's: (1) company action level RBC; (2) regulatory action level RBC; (3) authorized control level RBC; or (4) mandatory control level RBC. As added by P.L.186-1996, SEC.1.

Sec. 19. As used in this chapter, "RBC plan" means a comprehensive financial plan containing the elements specified in section 30 of this chapter. As added by P.L.186-1996, SEC.1.

Sec. 2. As used in this chapter, "adjusted RBC report" means an RBC report that has been adjusted by the commissioner under section 28 of this chapter. As added by P.L.186-1996, SEC.1.

Sec. 20. As used in this chapter, "RBC report" means the report required by section 25 of this chapter. As added by P.L.186-1996, SEC.1.

Sec. 21. As used in this chapter, "regulatory action level event" has the meaning set forth in section 35 of this chapter. As added by P.L.186-1996, SEC.1.

Sec. 22. As used in this chapter, "regulatory action level RBC" means, with respect to an insurer, the product of one and five-tenths (1.5) multiplied by the insurer's authorized control level RBC. As added by P.L.186-1996, SEC.1.

Sec. 23. As used in this chapter, "revised RBC plan" means the revised RBC plan that an insurer must prepare, with or without the commissioner's recommendation, if the commissioner rejects the insurer's previous RBC plan. As added by P.L.186-1996, SEC.1.

Sec. 24. As used in this chapter, "total adjusted capital" means the sum of: (1) an insurer's statutory capital and surplus determined in accordance with the statutory accounting principles and practices that are applicable to the annual financial statements required to be filed …

Sec. 25. (a) A domestic insurer shall prepare a report of the RBC levels of the insurer as of the last day of the calendar year most recently ended. The report must: (1) be in the form; and (2) contain the information; required by the RBC Instructions. (b) On or before March 1 of…

Sec. 26. (a) This section applies to the following: (1) A life insurer. (2) A fraternal benefit society. (b) An insurer's RBC must be determined in accordance with the formula set forth in the RBC instructions. The formula must take into account (and may adjust for the covariance…

Sec. 26.1. A health insurer's RBC must be determined in accordance with the formula set forth in the RBC instructions for a health insurer. The formula must take into account (and may adjust for the covariance between): (1) affiliation investment risk; (2) asset risk; (3) credit …

Sec. 27. A property and casualty insurer's RBC must be determined in accordance with the formula set forth in the RBC instructions. The formula must take into account (and may adjust for the covariance between): (1) asset risk; (2) credit risk; (3) underwriting risk; and (4) all …

Sec. 28. (a) If the commissioner determines an RBC report filed by a domestic insurer is inaccurate, the commissioner shall: (1) adjust the RBC report to correct the inaccuracy; and (2) notify the insurer of the adjustment. (b) A notice provided by the commissioner under subsecti…

Sec. 29. As used in this chapter, "company action level event" means any of the following events: (1) The filing of an RBC report by an insurer that indicates that: (A) the insurer's total adjusted capital is: (i) greater than or equal to its regulatory action level RBC; but (ii)…

Sec. 3. As used in this chapter, "authorized control level event" has the meaning set forth in section 39 of this chapter. As added by P.L.186-1996, SEC.1.

Sec. 30. If a company action level event occurs, the insurer shall prepare and submit to the commissioner an RBC plan that does all the following: (1) Addresses the following: (A) The conditions that contribute to the insurer's RBC level. (B) The key assumptions affecting the ins…

Sec. 31. An insurer must submit to the commissioner an RBC plan required under section 30 of this chapter: (1) not more than forty-five (45) days after the company action level event; or (2) not more than forty-five (45) days after notification to the insurer that the commissione…

Sec. 32. (a) Not more than sixty (60) days after an insurer submits an RBC plan under section 31 of this chapter, the commissioner shall notify the insurer of whether the RBC plan: (1) must be implemented; or (2) is unsatisfactory. (b) If the commissioner determines that an RBC p…

Sec. 33. If the commissioner notifies an insurer that the insurer's RBC plan or revised RBC plan is unsatisfactory, the commissioner may, subject to the insurer's right to a hearing under section 44 of this chapter, specify in the notification that the notification constitutes a …

Sec. 34. (a) A domestic insurer that files an RBC plan or a revised RBC plan with the commissioner shall file a copy of the RBC plan or revised RBC plan with the insurance commissioner in each state other than Indiana in which the insurer is authorized to do business, if: (1) the…

Sec. 35. As used in this chapter, "regulatory action level event" means any of the following events: (1) The filing of an RBC report by the insurer that indicates that the insurer's total adjusted capital is: (A) greater than or equal to its authorized control level RBC; but (B) …

Sec. 36. If a regulatory action level event occurs, the commissioner shall: (1) require the insurer to prepare an RBC plan or, if applicable, a revised RBC plan; (2) perform such examination or analysis as the commissioner considers necessary of the assets, liabilities, and opera…

Sec. 37. The RBC plan or revised RBC plan must be submitted: (1) not more than forty-five (45) days after the regulatory action level event; (2) not later than forty-five (45) days after the notification to the insurer that the commissioner has, after a hearing under section 44 o…

Sec. 38. (a) The commissioner may retain actuaries, investment experts, and other consultants that the commissioner determines to be necessary to: (1) review the insurer's RBC plan or revised RBC plan; (2) examine or analyze the assets, liabilities, and operations of the insurer;…

Sec. 39. As used in this chapter, "authorized control level event" means any of the following events: (1) The filing of an RBC report by an insurer that indicates that the insurer's total adjusted capital is: (A) greater than or equal to its mandatory control level RBC; but (B) l…

Sec. 4. As used in this chapter, the "authorized control level RBC" means, with respect to an insurer, the number determined under the risk-based capital formula in accordance with the RBC Instructions. As added by P.L.186-1996, SEC.1. Amended by P.L.124-2018, SEC.56.

Sec. 40. (a) If an authorized control level event occurs with respect to an insurer, the commissioner shall: (1) take the actions required under section 36 of this chapter regarding an insurer; or (2) if the commissioner considers it to be in the best interests of: (A) the policy…

Sec. 41. As used in this chapter, "mandatory control level event" means any of the following events: (1) The filing of an RBC report that indicates that the insurer's total adjusted capital is less than its mandatory control level RBC. (2) Notification by the commissioner to the …

Sec. 42. (a) If a mandatory control level event occurs with respect to a life insurer, a health insurer, or a fraternal benefit society, the commissioner shall take the actions necessary to place the insurer under regulatory control under IC 27-9. (b) A mandatory control level ev…

Sec. 42.1. (a) If a mandatory control level event occurs with respect to a health maintenance organization or a limited service health maintenance organization, the commissioner shall take the action necessary to place the health maintenance organization or limited service health…

Sec. 43. (a) If a mandatory control level event occurs with respect to a property and casualty insurer, the commissioner: (1) shall take the actions necessary to place the insurer under regulatory control under IC 27-9; or (2) in the case of an insurer that is not writing busines…

Sec. 44. (a) The insurer has the right to a confidential departmental hearing, on the record, upon the occurrence of any of the following: (1) Notification to an insurer by the commissioner of an adjusted RBC report. (2) Notification to an insurer by the commissioner under sectio…

Sec. 45. (a) Because they contain information that might be damaging to an insurer if made available to the insurer's competitors, the following are declared confidential for purposes of IC 5-14-3-4 and are not subject to inspection and copying by the public under IC 5-14-3-3: (1…

Sec. 46. (a) The comparison of an insurer's total adjusted capital to any of its RBC levels is a regulatory tool that may indicate the need for possible corrective action with respect to the insurer and it is not intended as a means to rank insurers generally. Except as provided …

Sec. 47. (a) The: (1) RBC instructions; (2) RBC reports; (3) adjusted RBC reports; (4) RBC plans; and (5) revised RBC plans; referred to in this chapter are intended solely for use by the commissioner in monitoring the solvency of insurers and the need for possible corrective act…

Sec. 48. This chapter is supplemental to other provisions of Indiana law and does not preclude or limit any other powers or duties of the commissioner under other provisions of Indiana law, including IC 27-9. As added by P.L.186-1996, SEC.1.

Sec. 49. (a) Upon the written request of the commissioner, a foreign insurer shall submit to the commissioner an RBC report as of the last day of the calendar year most recently ended. The foreign insurer shall submit the report on or before: (1) the date on which a domestic insu…

Sec. 5. As used in this chapter, "company action level event" has the meaning set forth in section 29 of this chapter. As added by P.L.186-1996, SEC.1.

Sec. 50. (a) If: (1) an event that is: (A) a company action level event; (B) a regulatory action level event; or (C) an authorized control level event; occurs with respect to a foreign insurer as determined under the RBC statute applicable in the state of domicile of the insurer …

Sec. 51. If: (1) a mandatory control level event occurs with respect to a foreign insurer; and (2) no domiciliary receiver has been appointed with respect to the foreign insurer under the rehabilitation and liquidation statute applicable in the state of domicile of the foreign in…

Sec. 52. (a) A notice by the commissioner to an insurer that may result in regulatory action under this chapter, if transmitted by registered or certified mail, is effective when the notice is put in the mail. (b) A transmission by the commissioner to an insurer under this chapte…

Sec. 53. There is no liability on the part of, and no cause of action shall arise against: (1) the commissioner; (2) the department; or (3) any employee or agent of the department; for any action taken in the exercise of their powers and the performance of duties under this chapt…

Sec. 54. The provisions of this chapter are severable in the manner provided in IC 1-1-1-8. If: (1) any provision of this chapter; or (2) the application of this chapter to any person or circumstance; is held invalid, that determination shall not affect the provisions or applicat…

Sec. 55. The commissioner, under IC 4-22-2, may adopt reasonable rules necessary for the implementation of this chapter. As added by P.L.186-1996, SEC.1.

Sec. 56. (a) An excess of capital over the amount produced by the: (1) risk based capital requirements contained in this chapter; and (2) formulas, schedules, and instructions referred to in this chapter; is desirable in the business of insurance. Therefore, insurers should seek …