Ind. Code ch. 27-1-15.8

Ind. Code § 27-1-15.8-1 Definitions; application

Sec. 1. (a) Except as provided in this section, the definitions in IC 27-1-15.6-2 apply throughout this chapter. (b) As used in this chapter, "affiliate" means, with respect to an insured, an entity that controls, is controlled by, or is under common control with the insured. (c) As used in this chapter, "affiliated group" means a group of affiliates. (d) As used in this chapter, "control" means: (1) ownership or power to vote at least twenty-five percent (25%) of any class of voting securities; or (2) power to determine the election of a majority of the directors or trustees; of an entity. (e) As used in this chapter, "home state" means the following: (1) With respect to an insured: (A) the state in which the insured maintains: (i) the insured's principal place of business; or (ii) if the insured is an individual, the insured's principal residence; or (B) if one hundred percent (100%) of the insured risk is located outside the state described in clause (A), the state to which the greatest percentage of the insured's taxable premium for the insurance contract is allocated. (2) With respect to an affiliated group, if more than one (1) insured from the affiliated group is a named insured on a single nonadmitted insurance policy or contract, the home state determined under subdivision (1) of the member of the affiliated group that has the largest percentage of premium attributed to the member under the nonadmitted insurance policy or contract. (f) As used in this chapter, "nonadmitted insurance policy or contract" means an insurance policy or contract that is issued by an insurer that is not authorized to transact the business of insurance under the law of the home state. (g) As used in this chapter, "principal place of business" means, with respect to determining the home state of an insured, the state where the: (1) insured maintains the insured's headquarters; and (2) insured's officers direct, control, and coordinate the business activities of the insured. As added by P.L.132-2001, SEC.5. Amended by P.L.208-2018, SEC.6.

Ind. Code § 27-1-15.8-2 Other provisions applicable to licensure of surplus lines producers

Sec. 2. The following provisions of IC 27-1-15.6 apply to licensure of surplus lines producers under this chapter: (1) IC 27-1-15.6-5. (2) IC 27-1-15.6-6. (3) IC 27-1-15.6-8 through IC 27-1-15.6-13. (4) IC 27-1-15.6-15 through IC 27-1-15.6-17. (5) IC 27-1-15.6-21. (6) IC 27-1-15.6-32 through IC 27-1-15.6-34. As added by P.L.132-2001, SEC.5.

Ind. Code § 27-1-15.8-3 Qualifications for license

Sec. 3. (a) A surplus lines producer may receive qualification for a license in one (1) or more of the kinds of insurance defined in Class 2 and Class 3 of IC 27-1-5-1 from insurers that are authorized to do business in one (1) or more states of the United States of America but are not authorized to do business in Indiana whenever, after diligent effort, as determined to the satisfaction of the department, the licensee is unable to procure the amount of insurance desired from insurers authorized and licensed to do business in Indiana. (b) An applicant for a surplus lines producer's license must be licensed in Indiana as an insurance producer qualified as to the line or lines of insurance to be written. As added by P.L.132-2001, SEC.5.

Ind. Code § 27-1-15.8-4 Percent of gross premiums remitted to department; affidavit and financial statement filed with department

Sec. 4. (a) In addition to all other charges, fees, and taxes that may be imposed by law, a surplus lines producer licensed under this chapter shall, on or before February 1 of each year, collect from the insured and remit to the department for the use and benefit of the state of Indiana an amount equal to two and one-half percent (2 1/2%) of all gross premiums upon all policies and contracts procured: (1) by the surplus lines producer; (2) under the provisions of this section; (3) for insureds whose home state is Indiana; and (4) during the preceding twelve (12) month period ending December 31. The declarations page of a policy referred to in this subsection must itemize the amounts of all charges for taxes, fees, and premiums. (b) A licensed surplus lines producer shall execute and file with the department of insurance on or before the twentieth day of each month an affidavit that specifies all transactions, policies, and contracts procured during the preceding calendar month, including: (1) the description and location of the insured property or risk and the name of the insured; (2) the gross premiums charged in the policy or contract; (3) the name and home office address of the insurer whose policy or contract is issued, and the kind of insurance effected; and (4) a statement that: (A) the licensee, after diligent effort, was unable to procure from any insurer authorized to transact the particular class of insurance business in Indiana the full amount of insurance required to protect the insured; and (B) the insurance placed under this chapter is not placed for the purpose of procuring it at a premium rate lower than would be accepted by an insurer authorized and licensed to transact insurance business in Indiana. (c) A licensed surplus lines producer shall file with the department, not later than March 31 of each year, the financial statement, dated as of December 31 of the preceding year, of each unauthorized insurer from whom the surplus lines producer has procured a policy or contract. The insurance commissioner may, in the commissioner's discretion, after reviewing the financial statement of the unauthorized insurer, order the surplus lines producer to cancel an unauthorized insurer's policies and contracts if the commissioner is of the opinion that the financial statement or condition of the unauthorized insurer does not warrant continuance of the risk. (d) A licensed surplus lines producer shall keep a separate account of all business transacted under this section. The account may be inspected at any time by the commissioner or the commissioner's deputy or examiner. (e) An insurer that issues a policy or contract to insure a risk under this section is considered to have appointed the commissioner as the insurer's attorney upon whom process may be served in Indiana in any suit, action, or proceeding based upon or arising out of the policy or contract. (f) The commissioner may revoke or refuse to renew a surplus lines producer's license for failure to comply with this section. (g) A surplus lines producer licensed under this chapter may accept and place policies or contracts authorized under this section for an insurance producer duly licensed in Indiana, and may compensate the insurance producer even though the insurance producer is not licensed under this chapter. (h) If a surplus lines producer does not remit an amount due to the department within the time prescribed in subsection (a), the commissioner shall assess the surplus lines producer a penalty of ten percent (10%) of the amount due. The commissioner shall assess a further penalty of an additional one percent (1%) of the amount due for each month or portion of a month that any amount due remains unpaid after the first month. Penalties assessed under this subsection are payable by the surplus lines producer and are not collectible from an insured. As added by P.L.132-2001, SEC.5. Amended by P.L.160-2003, SEC.2; P.L.173-2007, SEC.15; P.L.208-2018, SEC.7.