Ind. Code ch. 27-1-4.1

in effect

Ind. Code § 27-1-4.1-1 Application and scope of chapter

Sec. 1. (a) This chapter applies beginning January 1, 2016. (b) This chapter does not do the following: (1) Impose corporate governance standards or internal procedures that are not otherwise required under IC 27. (2) Limit the commissioner's authority, or the rights and obligations of third parties, under IC 27-1-3.1. As added by P.L.146-2015, SEC.19.

Ind. Code § 27-1-4.1-2 "Corporate governance annual disclosure"; "CGAD"

Sec. 2. As used in this chapter, "corporate governance annual disclosure" or "CGAD" means a confidential report filed by an insurer or insurance group under this chapter. As added by P.L.146-2015, SEC.19.

Ind. Code § 27-1-4.1-3 "Insurance group"

Sec. 3. As used in this chapter, "insurance group" means insurers and affiliates of an insurance holding company system (as defined in IC 27-1-23-1). As added by P.L.146-2015, SEC.19.

Ind. Code § 27-1-4.1-4 "Insurer"

Sec. 4. As used in this chapter, "insurer" has the same meaning as set forth in IC 27-1-2-3, except that the term: (1) refers only to domestic insurers (as defined in IC 27-1-36-8); and (2) does not include agencies, authorities, or instrumentalities of the United States, possessions and territories of the United States, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state. As added by P.L.146-2015, SEC.19.

Ind. Code § 27-1-4.1-5 "NAIC"

Sec. 5. As used in this chapter, "NAIC" refers to the National Association of Insurance Commissioners. As added by P.L.146-2015, SEC.19.

Ind. Code § 27-1-4.1-6 Annual submission of CGAD

Sec. 6. (a) An insurer or insurance group of which the insurer is a member shall, not later than June 1 of each calendar year, submit: (1) to the commissioner; or (2) if the insurer is a member of an insurance group, to the lead state commissioner of the insurance group (as determined by the procedures in the Financial Analysis Handbook) according to the law of the lead state; a CGAD. (b) An insurer that is a member of an insurance group and not required to submit a CGAD to the commissioner under subsection (a) shall submit a CGAD to the commissioner upon the commissioner's request. (c) A CGAD submitted under this section must include the signature of the insurer's or insurance group's chief executive officer or corporate secretary attesting that to the best of the chief executive officer's or corporate secretary's knowledge the insurer has: (1) implemented corporate governance procedures; and (2) provided a copy of the CGAD to the insurer's board of directors or the appropriate committee of the board of directors. As added by P.L.146-2015, SEC.19. Amended by P.L.124-2018, SEC.10.

Ind. Code § 27-1-4.1-7 Level of disclosure

Sec. 7. (a) Subject to subsection (b), an insurer or insurance group may complete a CGAD using corporate governance information at the level of disclosure at which the insurer's or insurance group's system of corporate governance is structured, as follows: (1) The ultimate controlling parent level. (2) An intermediate holding company level. (3) The individual legal entity level. (b) An insurer or insurance group may, but is not required to, choose the level of disclosure at which to complete a CGAD under subsection (a) according to one (1) of the following criteria: (1) The level at which the insurer's or insurance group's risk tolerance is determined. (2) The level at which the insurer's or insurance group's earnings, capital, liquidity, operations, and reputation are: (A) collectively overseen; and (B) supervised. (3) The level at which legal liability for failure of general corporate governance would be placed. (c) If the insurer or insurance group chooses the level of disclosure at which to complete a CGAD under subsection (a) according to a criterion described in subsection (b), the insurer or insurance group shall: (1) indicate which of the three (3) criteria was used to determine the level of disclosure; and (2) explain any change in the level of disclosure that is subsequently used. As added by P.L.146-2015, SEC.19.

Ind. Code § 27-1-4.1-8 CGAD submitted by insurance group member

Sec. 8. If a CGAD is submitted by an insurer as a member of an insurance group, the lead state commissioner of the insurance group (as determined by the procedures in the Financial Analysis Handbook) shall: (1) review a CGAD submitted under section 6 of this chapter; and (2) make any requests for additional information. As added by P.L.146-2015, SEC.19. Amended by P.L.124-2018, SEC.11.

Ind. Code § 27-1-4.1-9 Nonduplication of other filings

Sec. 9. If an insurer or insurance group: (1) submits, in other: (A) documents submitted to the commissioner, including proxy statements filed with registration statements required by IC 27-1-23-3; or (B) state or federal filings provided to the department; information that is substantially similar to the information required by this chapter; and (2) cross references in the CGAD the document or filing that contains the substantially similar information; the insurer or insurance group is not required to duplicate the information in the CGAD. As added by P.L.146-2015, SEC.19.

Ind. Code § 27-1-4.1-10 Additional information; CGAD preparation requirements

Sec. 10. (a) If a CGAD contains the material information necessary to allow the reviewing commissioner to understand the insurer's or insurance group's corporate governance structure, policies, and procedures, the insurer or insurance group may determine whether to respond to a request from the reviewing commissioner for additional information. (b) If the reviewing commissioner considers additional information to be material and necessary to provide a clear understanding of an insurer's or insurance group's: (1) corporate governance structure, policies, and procedures; (2) reporting or information system; or (3) controls implementing subdivisions (1) and (2); the commissioner may request the additional information. (c) A CGAD must be: (1) prepared in a manner consistent with the NAIC's Corporate Governance Annual Disclosure Model Regulation; and (2) made available to the commissioner upon: (A) examination under IC 27-1-3.1; or (B) request of the commissioner. As added by P.L.146-2015, SEC.19.

Ind. Code § 27-1-4.1-11 Confidentiality; privilege; use of information; sharing and disclosure

Sec. 11. (a) Documents, materials, and other information related to a CGAD, including the CGAD, that are in the possession or control of the department and obtained by, created by, or disclosed to the commissioner or another person under this chapter, are: (1) considered to be proprietary and contain trade secrets; (2) confidential and privileged; (3) not subject to subpoena; and (4) not subject to discovery or admissible in evidence in a private civil action. (b) The commissioner may: (1) use the documents, materials, and other information described in subsection (a) in relation to a regulatory or legal action brought as part of the commissioner's duties; and (2) otherwise make the documents, materials, and other information public only with the prior written consent of the insurer. (c) The commissioner, and any other person: (1) who receives documents, materials, or other information related to a CGAD while acting under the authority of the commissioner; or (2) with whom the documents, materials, or other information are shared; under this chapter is not permitted or required to testify in a private civil action concerning any documents, materials, or other information described in subsection (a). (d) The commissioner may, in the performance of the commissioner's duties, do the following: (1) Upon request, share all documents, materials, and other information described in subsection (a) with the following if the recipient agrees in writing, and provides written verification that the recipient has the legal authority, to maintain the confidential and privileged status of the documents, materials, and other information: (A) Other state, federal, and international financial regulatory agencies. (B) The NAIC. (C) Members of a supervisory college (as defined in IC 27-1-23-1). (D) A third party consultant under section 12 of this chapter. (2) Receive all documents, materials, and other information described in subsection (a) from: (A) other state, federal, and international financial regulatory agencies; (B) members of a supervisory college (as defined in IC 27-1-23-1); and (C) the NAIC; if the commissioner maintains the confidential or privileged status of the documents, materials, and other information that are received with notice or the understanding that the documents, materials, and other information are confidential or privileged under the laws of the jurisdiction that is the source of the documents, materials, and other information. (e) The sharing of information by the commissioner under this chapter is not a delegation of regulatory authority. The commissioner is solely responsible for the administration, implementation, and enforcement of this chapter. (f) Disclosure to or sharing by the commissioner of documents, materials, or other information under this chapter is not a waiver of any applicable privilege or claim of confidentiality in the documents, materials, or other information. As added by P.L.146-2015, SEC.19.

Ind. Code § 27-1-4.1-12 Third party consultants; confidentiality; sharing of information

Sec. 12. (a) The commissioner may, at the insurer's expense, retain third party consultants, including attorneys, actuaries, accountants, and others who are not part of the commissioner's staff, that: (1) the commissioner considers necessary to review a CGAD, related information, or the insurer's or insurance group's compliance with this chapter; and (2) have verified, with notice to the insurer, that the third party consultant: (A) has no conflict of interest affecting the commissioner's retention of the third party consultant; and (B) has internal procedures to: (i) monitor whether a conflict of interest arises after the third party consultant has been retained; and (ii) comply with the confidentiality requirements of this chapter. (b) A third party consultant who is retained under subsection (a) is under the direction and control of the commissioner and acts only in an advisory capacity. (c) The NAIC and a third party consultant who is retained under subsection (a) are subject to the same confidentiality requirements as the confidentiality requirements that apply to the commissioner under this chapter. The NAIC may share information received under this chapter only with state regulators from states in which insurers that are members of an insurance group are domiciled. (d) The commissioner shall enter into a written agreement with the NAIC or a third party consultant governing sharing and use of information provided under this chapter, including the following: (1) Procedures and protocols concerning the confidentiality and security of information shared: (A) with the NAIC or third party consultant under this chapter; and (B) by the NAIC with regulators of other states in which insurers that are members of an insurance group are domiciled. (2) A statement that the recipient: (A) agrees in writing; and (B) provides written verification that the recipient has the legal authority; to maintain the confidential and privileged status of the documents, materials, and other information. (3) A statement that, with respect to information shared with the NAIC or third party consultant under this chapter: (A) the commissioner maintains ownership of the information; and (B) the use of the information is subject to the direction of the commissioner. (4) A statement that the NAIC or third party consultant may not store information shared under this chapter in a permanent data base after the underlying analysis is completed. (5) A requirement that, if CGAD related information of an insurer that is in the possession of the NAIC or third party consultant under this chapter is subject to a request or subpoena to the NAIC or third party consultant for production or disclosure, the NAIC or third party consultant will provide prompt notice to the commissioner and to the insurer or insurance group. (6) A requirement that the NAIC or third party consultant will allow intervention by an insurer in a judicial or administrative action under which the NAIC or third party consultant may be required to disclose confidential information concerning the insurer that has been shared with the NAIC or third party consultant under this chapter. (7) An express requirement that the written consent of the insurer or insurance group is required before the NAIC or third party consultant makes public any information shared under this chapter. As added by P.L.146-2015, SEC.19.

Ind. Code § 27-1-4.1-13 Failure to timely file; penalty; reduction

Sec. 13. (a) An insurer that fails, without just cause (as determined by the commissioner), to timely file a CGAD as required by this chapter shall, after notice and hearing under IC 4-21.5, pay a civil penalty of one hundred dollars ($100) for each day of noncompliance, not to exceed ten thousand dollars ($10,000). (b) The commissioner may reduce a penalty imposed under subsection (a) if the insurer demonstrates to the commissioner that the imposition of the penalty would constitute a financial hardship to the insurer. (c) A civil penalty collected under this section shall be deposited in the department of insurance fund established by IC 27-1-3-28. As added by P.L.146-2015, SEC.19.

Ind. Code § 27-1-4.1-14 Nonseverability

Sec. 14. Notwithstanding IC 1-1-1-8, section 11 of this chapter is not severable. As added by P.L.146-2015, SEC.19.

Ind. Code § 27-1-4.1-15 Rulemaking

Sec. 15. The commissioner may adopt rules under IC 4-22-2 to implement this chapter. As added by P.L.146-2015, SEC.19.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/27Fetched: 10/17/2026