Reprinted

April 12, 2001





ENGROSSED

SENATE BILL No. 386

_____


DIGEST OF SB 386 (Updated April 11, 2001 4:51 PM - DI 97)


Citations Affected: IC 2-5; IC 5-10; IC 27-1; IC 27-2; IC 27-4; IC 27-7; IC 27-8; IC 27-13; IC 34-30; noncode.

Synopsis: Various insurance matters. Authorizes the insurance commissioner to adopt rules providing for the accrual and quarterly billing of insurance filing fees. Adds a chapter to the Indiana insurance law concerning licensing of insurance producers. Adds a chapter to the Indiana insurance law concerning privacy of nonpublic personal financial information. Specifies that the premium charged for the issuance of a title insurance policy in Indiana in a real estate transaction in which title insurance is issued in at least 1 other state where title insurance premiums are computed based on filed rates may not be less than the average of the title insurance rates charged for title insurance in the other states where rates are filed. Provides that a violation is an unfair method of competition and unfair and deceptive act and practice in the business of insurance. Provides for the Office of Medicaid Policy and Planning to apply for a demonstration waiver to provide coverage to individuals with severe, chronic disease. Requires the health finance advisory committee to review issues related to the Indiana comprehensive health insurance association (ICHIA) and report to the health finance commission. Repeals the law concerning ICHIA effective January 1, 2004. Makes conforming amendments.

Effective: Upon passage; July 1, 2001; January 1, 2002; January 1, 2004.





Paul
(HOUSE SPONSORS _ CROOKS, BODIKER, RIPLEY)




    January 18, 2001, read first time and referred to Committee on Insurance and Financial Institutions.
    February 8, 2001, reported favorably _ Do Pass.
    February 12, 2001, read second time, ordered engrossed.
    February 13, 2001, engrossed.
    February 15, 2001, read third time, passed. Yeas 48, nays 0.
HOUSE ACTION

    February 26, 2001, read first time and referred to Committee on Insurance, Corporations and Small Business.
    April 9, 2001, amended, reported _ Do Pass.
    April 11, 2001, read second time, amended, ordered engrossed.







Reprinted

April 12, 2001

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2000 General Assembly.


ENGROSSED

SENATE BILL No. 386



    A BILL FOR AN ACT to amend the Indiana Code concerning insurance.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 2-5-23-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]: Sec. 2.5. As used in this chapter, "health care facility" means an institution providing health care services that is licensed in Indiana, including institutions primarily engaged in providing services for health maintenance organizations or for the diagnosis or treatment of human disease, pain, injury, deformity, or physical condition. The term includes a general hospital, a special hospital, a mental hospital, a public health center, a diagnostic center, a treatment center, a rehabilitation center, an extended care facility, a skilled nursing home, a nursing home, an intermediate care facility, a tuberculosis hospital, a chronic disease hospital, a maternity hospital, an outpatient clinic, a home health care agency, a bioanalytical laboratory, or a central services facility servicing one (1) or more such institutions.
    SECTION 2. IC 2-5-23-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]: Sec. 8. Beginning May 1, 1997,

The health policy advisory committee is established. At the request of the chairman, the health policy advisory committee shall provide information and otherwise assist the commission to perform the duties of the commission under this chapter. The health policy advisory committee members are ex officio and may not vote. The health policy advisory committee members shall be appointed from the general public and must include one (1) individual who represents each of the following:
        (1) The interests of public hospitals.
        (2) The interests of community mental health centers.
        (3) The interests of community health centers.
        (4) The interests of the long term care industry.
        (5) The interests of health care professionals licensed under IC 25, but not licensed under IC 25-22.5.
        (6) The interests of rural hospitals. An individual appointed under this subdivision must be licensed under IC 25-22.5.
        (7) The interests of health maintenance organizations (as defined in IC 27-13-1-19).
        (8) The interests of for-profit health care facilities (as defined in IC 27-8-10-1(l)).
        (9) (8) A statewide consumer organization.
        (10) (9) A statewide senior citizen organization.
        (11) (10) A statewide organization representing people with disabilities.
        (12) (11) Organized labor.
        (13) (12) The interests of businesses that purchase health insurance policies.
        (14) (13) The interests of businesses that provide employee welfare benefit plans (as defined in 29 U.S.C. 1002) that are self-funded.
        (15) (14) A minority community.
        (16) (15) The uninsured. An individual appointed under this subdivision must be and must have been chronically uninsured.
        (17) (16) An individual who is not associated with any organization, business, or profession represented in this subsection other than as a consumer.
    SECTION 3. IC 5-10-8-8.1, AS AMENDED BY P.L.233-1999, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]: Sec. 8.1. (a) This section applies only to the state and former legislators, instead of section 8 of this chapter.
    (b) As used in this section, "legislator" means a member of the general assembly.


    (c) After June 30, 1988, the state shall provide to each retired legislator:
        (1) whose retirement date is after June 30, 1988;
        (2) who is not participating in a group health insurance coverage plan:
            (A) including Medicare coverage as prescribed by 42 U.S.C. 1395 et seq.; but
            (B) not including a group health insurance plan provided by the state; or a health insurance plan provided under IC 27-8-10;
        (3) who served as a legislator for at least ten (10) years; and
        (4) who participated in a group health insurance plan provided by the state on the legislator's retirement date;
a group health insurance program that is equal to that offered active employees.
    (d) A retired legislator who qualifies under subsection (c) may participate in the group health insurance program if the retired legislator:
        (1) pays an amount equal to the employer's and employee's premium for the group health insurance for an active employee; and
        (2) within ninety (90) days after the legislator's retirement date files a written request for insurance coverage with the employer.
    (e) A retired legislator's eligibility to continue insurance under this section ends when the member becomes eligible for Medicare coverage as prescribed by 42 U.S.C. 1395 et seq., or when the employer terminates the health insurance program.
    (f) A retired legislator who is eligible for insurance coverage under this section may elect to have the legislator's spouse covered under the health insurance program at the time the legislator retires. If a retired legislator's spouse pays the amount the retired legislator would have been required to pay for coverage selected by the spouse, the spouse's subsequent eligibility to continue insurance under this section is not affected by the death of the retired legislator and is not affected by the retired legislator's eligibility for Medicare. The spouse's eligibility ends on the earliest of the following:
        (1) When the spouse becomes eligible for Medicare coverage as prescribed by 42 U.S.C. 1395 et seq.
        (2) When the employer terminates the health insurance program.
        (3) The date of the spouse's remarriage.
    (g) The surviving spouse of a legislator who dies or has died in office may elect to participate in the group health insurance program

if all of the following apply:
        (1) The deceased legislator would have been eligible to participate in the group health insurance program under this section had the legislator retired on the day of the legislator's death.
        (2) The surviving spouse files a written request for insurance coverage with the employer.
        (3) The surviving spouse pays an amount equal to the employer's and employee's premium for the group health insurance for an active employee.
    (h) The eligibility of the surviving spouse of a legislator to purchase group health insurance under subsection (g) ends on the earliest of the following:
        (1) When the employer terminates the health insurance program.
        (2) The date of the spouse's remarriage.
        (3) When the spouse becomes eligible for Medicare coverage as prescribed by 42 U.S.C. 1395 et seq.
    SECTION 4. IC 27-1-3-15, AS AMENDED BY P.L.268-1999, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 15. (a) Except as provided in subsection (g), the commissioner shall collect the following filing fees:
                Document    Fee
    Articles of incorporation    $ 350
    Amendment of articles of
    incorporation    $ 10
    Filing of annual statement
    and consolidated statement    $ 100
    Annual renewal of company license
    fee    $ 50
    Withdrawal of certificate
    of authority    $ 25
    Certified statement of condition    $ 5
    Any other document required to be
    filed by this article    $ 25
    (b) The commissioner shall collect a fee of ten dollars ($10) each time process is served on the commissioner under this title.
    (c) The commissioner shall collect the following fees for copying and certifying the copy of any filed document relating to a domestic or foreign corporation:
    Per page for copying    As determined by         the commissioner but not to exceed actual cost
    For the certificate    $10


    (d) Each domestic and foreign insurer shall remit annually to the commissioner for deposit into the department of insurance fund established by IC 27-1-3-28 three hundred fifty dollars ($350) as an internal audit fee. All assessment insurers, farm mutuals, fraternal benefit societies, and health maintenance organizations shall remit to the commissioner for deposit into the department of insurance fund one hundred dollars ($100) annually as an internal audit fee.
    (e) Beginning July 1, 1994, each insurer shall remit to the commissioner for deposit into the department of insurance fund established by IC 27-1-3-28 a fee of thirty-five dollars ($35) for each policy, rider, and endorsement filed with the state. However, each policy, rider, and endorsement filed as part of a particular product filing and associated with that product filing shall be considered to be a single filing and subject only to one (1) thirty-five dollar ($35) fee.
    (f) The commissioner shall pay into the state general fund by the end of each calendar month the amounts collected during that month under subsections (a), (b), and (c).
    (g) The commissioner may not collect fees for quarterly statements filed under IC 27-1-20-33.
     (h) The commissioner may adopt rules under IC 4-22-2 to provide for the accrual and quarterly billing of fees under this section.
    SECTION 5. IC 27-1-15.6 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]:
     Chapter 15.6. Insurance Producers
    Sec. 1. This chapter governs the qualifications and procedures for the licensing of insurance producers. This chapter does not apply to surplus lines producers licensed under IC 27-1-15.8 except as specifically provided in this chapter or in IC 27-1-15.8.
    Sec. 2. The following definitions apply throughout this chapter, IC 27-1-15.7, and IC 27-1-15.8:
        (1) "Bureau" refers to the child support bureau of the division of family and children established under IC 12-17-2-5.
        (2) "Business entity" means a corporation, an association, a partnership, a limited liability company, a limited liability partnership, or another legal entity.
        (3) "Commissioner" means the insurance commissioner appointed under IC 27-1-1-2.
        (4) "Consultant" means a person who:
            (A) holds himself or herself out to the public as being engaged in the business of offering; or
            (B) for a fee, offers;
        any advice, counsel, opinion, or service with respect to the benefits, advantages, or disadvantages promised under any policy of insurance that could be issued in Indiana.
        (5) "Delinquent" means the condition of being at least:
            (A) two thousand dollars ($2,000); or
            (B) three (3) months;
        past due in the payment of court ordered child support.
        (6) "Home state" means the District of Columbia or any state or territory of the United States in which an insurance producer:
            (A) maintains the insurance producer's principal place of residence or principal place of business; and
            (B) is licensed to act as an insurance producer.
        (7) "Insurance producer" means a person required to be licensed under the laws of Indiana to sell, solicit, or negotiate insurance.
        (8) "License" means a document issued by the commissioner authorizing a person to act as an insurance producer for the lines of authority specified in the document. The license itself does not create any authority, actual, apparent, or inherent, in the holder to represent or commit an insurance carrier.
        (9) "Limited line credit insurance" includes the following:
            (A) Credit life insurance.
            (B)    Credit disability insurance.
            (C) Credit property insurance.
            (D) Credit unemployment insurance.
            (E) Involuntary unemployment insurance.
            (F) Mortgage life insurance.
            (G) Mortgage guaranty insurance.
            (H) Mortgage disability insurance.
            (I) Guaranteed automobile protection (gap) insurance.
            (J) Any other form of insurance:
                (i) that is offered in connection with an extension of credit and is limited to partially or wholly extinguishing that credit obligation; and
                (ii) that the insurance commissioner determines should be designated a form of limited line credit insurance.
        (10) "Limited line credit insurance producer" means a person who sells, solicits, or negotiates one (1) or more forms of limited line credit insurance coverage to individuals through a master, corporate, group, or individual policy.
        (11) "Limited lines insurance" means any of the following:
            (A) The lines of insurance defined in section 18 of this chapter.
            (B) Any line of insurance the recognition of which is considered necessary by the commissioner for the purpose of complying with section 8(e) of this chapter.
            (C) For purposes of section 8(e) of this chapter, any form of insurance with respect to which authority is granted by a home state that restricts the authority granted by a limited lines producer's license to less than total authority in the associated major lines described in section 7(a)(1) through 7(a)(6) of this chapter.
        (12) "Limited lines producer" means a person authorized by the commissioner to sell, solicit, or negotiate limited lines insurance.
        (13) "Negotiate" means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers.
        (14) "Person" means an individual or business entity.
        (15) "Sell" means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of a company.
        (16) "Solicit" means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company.
        (17) "Surplus lines producer" means a person who sells, solicits, negotiates, or procures from an insurance company not licensed to transact business in Indiana an insurance policy that cannot be procured from insurers licensed to do business in Indiana.
        (18) "Terminate" means:
            (A) the cancellation of the relationship between an insurance producer and the insurer; or
            (B) the termination of a producer's authority to transact insurance.
        (19) "Uniform business entity application" means the current version of the national association of insurance commissioners uniform business entity application for resident and nonresident business entities.
        (20) "Uniform application" means the current version of the national association of insurance commissioners uniform application for resident and nonresident producer licensing.
    Sec. 3. (a) A person shall not sell, solicit, or negotiate insurance in Indiana for any class or classes of insurance unless the person is licensed for that line of authority under this chapter.
    (b) An insurer shall require a person who sells, solicits, or negotiates insurance in Indiana by any means of communication on behalf of the insurer to be licensed under this chapter.
    (c) A violation of subsection (b) is deemed an unfair method of competition and an unfair and deceptive act and practice in the business of insurance under IC 27-4-1-4.
    Sec. 4. (a) As used in this section, "insurer" does not include an officer, director, employee, subsidiary, or affiliate of an insurer.
    (b) This chapter does not require an insurer to obtain an insurance producer license.
    (c) The following are not required to be licensed as an insurance producer:
        (1) An officer, director, or employee of an insurer or of an insurance producer, if the officer, director, or employee does not receive any commission on policies written or sold to insure risks that reside, are located, or are to be performed in Indiana, and if:
            (A) the officer, director, or employee's activities are executive, administrative, managerial, clerical, or a combination of these, and are only indirectly related to the sale, solicitation, or negotiation of insurance;
            (B) the officer, director, or employee's function relates to underwriting, loss control, inspection, or the processing, adjusting, investigating, or settling of a claim on a contract of insurance; or
            (C) the officer, director, or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers and the officer, director, or employee's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation, or negotiation of insurance.
        (2) A person who secures and furnishes information for the purpose of:
            (A) group life insurance, group property and casualty insurance, group annuities, group or blanket accident and

sickness insurance;
            (B) enrolling individuals under plans;
            (C) issuing certificates under plans or otherwise assisting in administering plans; or
            (D) performing administrative services related to mass marketed property and casualty insurance;
        where no commission is paid to the person for the service.
        (3) A person identified in clauses (A) through (C) who is not in any manner compensated, directly or indirectly, by a company issuing a contract, to the extent that the person is engaged in the administration or operation of a program of employee benefits for the employer's or association's employees, or for the employees of a subsidiary or affiliate of the employer or association, that involves the use of insurance issued by an insurer:
            (A) An employer or association.
            (B) An officer, director, or employee of an employer or association.
            (C) The trustees of an employee trust plan.
        (4) An:
            (A) employee of an insurer; or
            (B) organization employed by insurers;
        that is engaged in the inspection, rating, or classification of risks, or in the supervision of the training of insurance producers, and that is not individually engaged in the sale, solicitation, or negotiation of insurance.
        (5) A person whose activities in Indiana are limited to advertising, without the intent to solicit insurance in Indiana, through communications in printed publications or other forms of electronic mass media whose distribution is not limited to residents of Indiana, provided that the person does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in Indiana.
        (6) A person who is not a resident of Indiana and who sells, solicits, or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract, provided that:
            (A) the person is otherwise licensed as an insurance producer to sell, solicit, or negotiate the insurance in the state where the insured maintains its principal place of business; and


            (B) the contract of insurance insures risks located in that state.
        (7) A salaried full-time employee who counsels or advises the employee's employer about the insurance interests of the employer or of the subsidiaries or business affiliates of the employer, provided that the employee does not sell or solicit insurance or receive a commission.
        (8) A representative of a county farmers mutual insurance company.
        (9) An officer, employee, or representative of a rental company (as defined in IC 24-4-9-7) who negotiates or solicits insurance incidental to and in connection with the rental of a motor vehicle.
    Sec. 5. (a) A resident individual applying for:
        (1) an insurance producer license;
        (2) a consultant's license; or
        (3) a surplus lines producer license;
must pass a written examination unless the individual is exempt under section 9 of this chapter.
    (b) The examination required under subsection (a) must test the knowledge of the individual concerning the:
        (1) lines of authority for which application is made;
        (2) duties and responsibilities of a licensee; and
        (3) insurance laws and administrative rules of Indiana.
    (c) Examinations required under this section must be developed and conducted under rules as may be prescribed by the commissioner.
    (d) The commissioner may make arrangements, including contracting with an outside testing service, for administering examinations, collecting the nonrefundable examination fee as established by contract with an outside testing service, or collecting the nonrefundable licensure fee set forth in section 32 of this chapter.
    (e) An individual who fails to appear for the examination required under subsection (a) as scheduled or who fails to pass the examination must reapply for an examination and remit all required fees and forms before being rescheduled for another examination.
    Sec. 6. (a) A person applying for a resident insurance producer license shall make application to the commissioner on the uniform application and declare under penalty of refusal, suspension, or revocation of the license that the statements made in the

application are true, correct, and complete to the best of the individual's knowledge and belief.
    (b) Before approving an application submitted under subsection (a), the commissioner must find that the individual meets the following requirements:
        (1) Is at least eighteen (18) years of age.
        (2) Has not committed any act that is a ground for denial, suspension, or revocation under section 12 of this chapter.
        (3) Has completed, if required by the commissioner, a certified prelicensing course of study for the lines of authority for which the individual has applied.
        (4) Has paid the nonrefundable fee set forth in section 32 of this chapter.
        (5) Has successfully passed the examinations for the lines of authority for which the person has applied.
    (c) An applicant for a resident insurance producer license must file with the commissioner on a form prescribed by the commissioner a certification of completion certifying that the applicant has completed an insurance producer program of study certified by the commissioner under IC 27-1-15.7-5 not more than six (6) months before the application for the license is received by the commissioner. This subsection applies only to licensees seeking qualification in the lines of insurance described in sections 7(a)(1) through 7(a)(6) of this chapter.
    (d) A business entity, before acting as an insurance producer, is required to obtain an insurance producer license. The application submitted by a business entity under this subsection must be made using the uniform business entity application. Before approving the application, the commissioner must find that the business entity has:
        (1) paid the fees required under section 32 of this chapter; and
        (2) designated an individual licensed producer responsible for the business entity's compliance with the insurance laws and administrative rules of Indiana.
    (e) The commissioner may require any documents reasonably necessary to verify the information contained in an application submitted under this subsection.
    (f) An insurer that sells, solicits, or negotiates any form of limited line credit insurance shall provide a program of instruction approved by the commissioner to each individual whose duties will include selling, soliciting, or negotiating limited line credit insurance.


    Sec. 7. (a) Unless denied licensure under section 12 of this chapter, a person who has met the requirements of sections 5 and 6 of this chapter shall be issued an insurance producer license. An insurance producer may receive qualification for a license in one or more of the following lines of authority:
        (1) Life _ insurance coverage on human lives, including benefits of endowment and annuities, that may include benefits in the event of death or dismemberment by accident and benefits for disability income.
        (2) Accident and health or sickness _ insurance coverage for sickness, bodily injury, or accidental death that may include benefits for disability income.
        (3) Property _ insurance coverage for the direct or consequential loss of or damage to property of every kind.
        (4) Casualty _ insurance coverage against legal liability, including liability for death, injury, or disability, or for damage to real or personal property.
        (5) Variable life and variable annuity products _ insurance coverage provided under variable life insurance contracts and variable annuities.
        (6) Personal lines _ property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes.
        (7) Credit _ limited line credit insurance.
        (8) Any other line of insurance permitted under Indiana laws or administrative rules.
    (b) A person who requests and receives qualification under subsection (a)(5) for variable life and annuity products:
        (1) is considered to have requested; and
        (2) shall receive;
a life qualification under subsection (a)(1).
    (c) A resident insurance producer may not request separate qualifications for property insurance and casualty insurance under subsection (a).
    (d) An insurance producer license remains in effect unless revoked or suspended, as long as the renewal fee set forth in section 32 of this chapter is paid and the educational requirements for resident individual producers are met by the due date.
    (e) An individual insurance producer who:
        (1) allows the individual insurance producer's license to lapse; and
        (2) completed all required continuing education before the

license expired;
may, not more than twelve (12) months after the expiration date of the license, reinstate the same license without the necessity of passing a written examination. A penalty in the amount of three (3) times the unpaid renewal fee shall be required for any renewal fee received after the expiration date of the license. However, the department of insurance may waive the penalty if the renewal fee is received not more than thirty (30) days after the expiration date of the license.
    (f) A licensed insurance producer who is unable to comply with license renewal procedures due to military service or some other extenuating circumstance may request a waiver of the license renewal procedures. The producer may also request a waiver of any examination requirement or any other fine or sanction imposed for failure to comply with the license renewal procedures.
    (g) An insurance producer license shall contain the licensee's name, address, personal identification number, date of issuance, lines of authority, expiration date, and any other information the commissioner considers necessary.
    (h) A licensee shall inform the commissioner of a change of address not more than thirty (30) days after the change by any means acceptable to the commissioner. The failure of a licensee to timely inform the commissioner of a change in legal name or address shall result in a penalty under section 12 of this chapter.
    (i) To assist in the performance of the commissioner's duties, the commissioner may contract with non-governmental entities, including the National Association of Insurance Commissioners (NAIC), or any affiliates or subsidiaries that the NAIC oversees, to perform ministerial functions, including the collection of fees related to producer licensing, that the commissioner and the non-governmental entity consider appropriate.
    (j) The commissioner may participate, in whole or in part, with the NAIC or any affiliate or subsidiary of the NAIC in a centralized insurance producer license registry through which insurance producer licenses are centrally or simultaneously effected for states that require an insurance producer license and participate in the centralized insurance producer license registry. If the commissioner determines that participation in the centralized insurance producer license registry is in the public interest, the commissioner may adopt rules under IC 4-22-2 specifying uniform standards and procedures that are necessary for participation in the registry, including standards and

procedures for centralized license fee collection.
    Sec. 8. (a) Unless denied licensure under section 12 of this chapter, a nonresident person shall receive a nonresident producer license if:
        (1) the person is currently licensed as a resident and in good standing in the person's home state;
        (2) the person has submitted the proper request for licensure and has paid the fees required under section 32 of this chapter;
        (3) the person has submitted or transmitted to the commissioner:
            (A) the application for licensure that the person submitted to the person's home state; or
            (B) a completed uniform application; and
        (4) the person's home state awards non-resident producer licenses to residents of Indiana on the same basis as non-resident producer licenses are awarded to residents of other states under this chapter.
    (b) The commissioner may verify a producer's licensing status through the Producer Database maintained by the National Association of Insurance Commissioners and its affiliates or subsidiaries.
    (c) A:
            (1) person who holds an Indiana nonresident producer's license and moves from one state to another state; or
            (2) a resident producer who moves from Indiana to another state;
shall file a change of address with the Indiana department of insurance and provide certification from the new resident state not more than thirty (30) days after the change of legal residence. No fee or license application is required under this subsection.
    (d) Notwithstanding any other provision of this chapter, a person licensed as a surplus lines producer in the person's home state shall receive a nonresident surplus lines producer license under subsection (a). Except as provided in subsection (a), nothing in this section otherwise amends or supercedes IC 27-1-15.8, as added by this act.
    (e) Notwithstanding any other provision of this chapter, a person who is not a resident of Indiana and who is licensed as a limited lines credit insurance producer or another type of limited lines producer in the person's home state shall, upon application, receive a nonresident limited lines producer license under

subsection (a) granting the same scope of authority as is granted under the license issued by the person's home state.
    Sec. 9. (a) An individual who applies for an insurance producer license in Indiana and who was previously licensed for the same lines of authority in another state is not required to complete any prelicensing education or examination. However, the exemption provided by this subsection is available only if:
        (1) the individual is currently licensed in the other state; or
        (2) the application is received within ninety (90) days after the cancellation of the applicant's previous license and:
            (A) the other state issues a certification that, at the time of cancellation, the applicant was in good standing in that state; or
            (B) the state's Producer Database records that are maintained by the National Association of Insurance Commissioners, its affiliates, or its subsidiaries, indicate that the producer is or was licensed in good standing for the line of authority requested.
    (b) If a person is licensed as an insurance producer in another state and moves to Indiana, the person, to be authorized to act as an insurance producer in Indiana, must make application to become a resident licensee under section 6 of this chapter within ninety (90) days after establishing legal residence in Indiana. However, the person is not required to take prelicensing education or examination to obtain a license for any line of authority for which the person held a license in the other state unless the commissioner determines otherwise by rule.
    (c) An individual who:
        (1) has attained the designation of chartered life underwriter, certified financial planner, or chartered financial consultant; and
        (2) applies for an insurance producer license in Indiana requesting qualification under sections:
            (A) 7(a)(1);
            (B) 7(a)(2); or
            (C) 7(a)(5);
        of this chapter;
is not required to complete prelicensing education, and is required to take only the portion of the examination required under section 5(b) of this chapter that pertains to Indiana laws and rules.
    (d) An individual who has:
        (1) attained the designation of chartered property and

casualty underwriter, certified insurance counselor, or accredited advisor in insurance; and
        (2) applies for an insurance producer license in Indiana requesting qualification under sections:
            (A) 7(a)(3);
            (B) 7(a)(4); or
            (C) 7(a)(6);
        of this chapter;
is not required to complete prelicensing education, and is required to take only the portion of the examination required under section 5(b) of this chapter that pertains to Indiana laws and rules.
    Sec. 10. Before an insurance producer may do business in Indiana under any name other than the producer's legal name, the insurance producer shall notify the commissioner of the proposed use of the assumed name.
    Sec. 11. (a) If the commissioner considers the issuance of a temporary license necessary for the servicing of an insurance business, the commissioner, without requiring an examination, may issue a temporary insurance producer license for a period of not more than one hundred eighty (180) days to any of the following:
        (1) To the surviving spouse or court-appointed personal representative of a licensed individual insurance producer who dies or becomes mentally or physically disabled:
            (A) to allow adequate time for the sale of the insurance business owned by the producer;
            (B) to provide for the servicing of the insurance business until the recovery or return of the producer to the business; or
            (C) to provide for the training and licensing of new personnel to operate the producer's business.
        (2) To a member or employee of a business entity licensed as an insurance producer, upon the death or disability of an individual designated in the business entity application or the license.
        (3) To the designee of a licensed individual insurance producer entering active service in the armed forces of the United States of America.
        (4) To an individual in any other circumstance where the commissioner considers the public interest to be best served by the issuance to the individual of a temporary insurance producer license.
    (b) The commissioner may by order limit the authority of a

temporary licensee in any way considered necessary to protect insureds and the public. The commissioner may require the temporary licensee to have a suitable sponsor who is a licensed producer or insurer and who assumes responsibility for all acts of the temporary licensee and may impose other, similar requirements designed to protect insureds and the public.
    (c) The commissioner may by order revoke a temporary insurance producer license if the interest of insureds or the public are endangered. A temporary insurance producer license issued under subsection (a)(1)(A) expires at the time the owner or the personal representative disposes of the business.
    Sec. 12. (a) For purposes of this section, "permanently revoke" means that:
        (1) the producer's license shall never be reinstated; and
        (2) the former licensee, after the license revocation, is not eligible to submit an application for a license to the department.
    (b) The commissioner may levy a civil penalty, place an insurance producer on probation, suspend an insurance producer's license, revoke an insurance producer's license for a period of years, permanently revoke an insurance producer's license, or refuse to issue or renew an insurance producer license, or take any combination of these actions, for any of the following causes:
        (1) Providing incorrect, misleading, incomplete, or materially untrue information in a license application.
        (2) Violating:
            (A) an insurance law;
            (B) a regulation;
            (C) a subpoena of an insurance commissioner; or
            (D) an order of an insurance commissioner;
        of Indiana or of another state.
        (3) Obtaining or attempting to obtain a license through misrepresentation or fraud.
        (4) Improperly withholding, misappropriating, or converting any monies or properties received in the course of doing insurance business.
        (5) Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance.
        (6) Having been convicted of a felony.
        (7) Admitting to having committed or being found to have committed any unfair trade practice or fraud in the business of insurance.


        (8) Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in Indiana or elsewhere.
        (9) Having an insurance producer license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory.
        (10) Forging another's name to an application for insurance or to any document related to an insurance transaction.
        (11) Improperly using notes or any other reference material to complete an examination for an insurance license.
        (12) Knowingly accepting insurance business from an individual who is not licensed.
        (13) Failing to comply with an administrative or court order imposing a child support obligation.
        (14) Failing to pay state income tax or to comply with any administrative or court order directing payment of state income tax.
        (15) Failing to satisfy the continuing education requirements established by IC 27-1-15.7.
        (16) Violating section 31 of this chapter.
        (17) Failing to timely inform the commissioner of a change in legal name or address, in violation of section 7(h) of this chapter.
    (c) The commissioner shall refuse to:
        (1) issue a license; or
        (2) renew a license issued;
under this chapter to any person who is the subject of an order issued by a court under IC 31-14-12-7 or IC 31-16-12-10 (or IC 31-1-11.5-13(m) or IC 31-6-6.1-16(m) before their repeal).
    (d) If the commissioner refuses to renew a license or denies an application for a license, the commissioner shall notify the applicant or licensee and advise the applicant or licensee, in a writing sent through regular first class mail, of the reason for the denial of the applicant's application or the nonrenewal of the licensee's license. The applicant or licensee may, not more than sixty-three (63) days after notice of denial of the applicant's application or nonrenewal of the licensee's license is mailed, make written demand to the commissioner for a hearing before the commissioner to determine the reasonableness of the commissioner's action. The hearing shall be held not more than thirty (30) days after the applicant or licensee makes the written

demand, and shall be conducted under IC 4-21.5.
    (e) The license of a business entity may be suspended, revoked, or refused if the commissioner finds, after hearing, that a violation of an individual licensee acting on behalf of the partnership or corporation was known or should have been known by one or more of the partners, officers, or managers of the partnership or corporation and:
        (1) the violation was not reported to the commissioner; and
        (2) no corrective action was taken.
    (f) In addition to or in lieu of any applicable denial, suspension, or revocation of a license under subsection (b), a person may, after a hearing, be subject to the imposition by the commissioner under subsection (b) of a civil penalty of not less than fifty dollars ($50) and not more than ten thousand dollars ($10,000). A penalty imposed under this subsection may be enforced in the same manner as a civil judgement.
    (g) A licensed insurance producer or limited lines producer shall, not more than ten (10) days after the producer receives a request in a registered or certified letter from the commissioner, furnish the commissioner with a full and complete report listing each insurer with which the licensee has held an appointment during the year preceding the request.
    (h) If a licensee fails to provide the report requested under subsection (g) not more than ten (10) days after the licensee receives the request, the commissioner may, in the commissioner's sole discretion, without a hearing, and in addition to any other sanctions allowed by law, suspend any insurance license held by the licensee pending receipt of the appointment report.
    (i) The commissioner shall promptly notify all appointing insurers and the licensee regarding any suspension, revocation, or termination of a license by the commissioner under this section.
    (j) The commissioner may not grant, renew, continue, or permit to continue any license if the commissioner finds that the license is being used or will be used by the applicant or licensee for the purpose of writing controlled business. As used in this subsection, "controlled business" means:
        (1) insurance written on the interests of:
            (A) the applicant or licensee;
            (B) the applicant's or licensee's immediate family; or
            (C) the applicant's or licensee's employer; or
        (2) insurance covering:
            (A) the applicant or licensee;


            (B) members of the applicant's or licensee's immediate family; or
            (C) either:
                (i) a corporation, limited liability company, association, or partnership; or
                (ii) the officers, directors, substantial stockholders, partners, members, managers, employees of such a corporation, limited liability company, association, or partnership;
            of which the applicant or licensee or a member of the applicant's or licensee's immediate family is an officer, director, substantial stockholder, partner, member, manager, associate, or employee.
However, this section does not apply to insurance written or interests insured in connection with or arising out of credit transactions. A license is considered to have been used or intended to be used for the purpose of writing controlled business if the commissioner finds that during any twelve (12) month period the aggregate commissions earned from the controlled business exceeded twenty-five percent (25%) of the aggregate commission earned on all business written by the applicant or licensee during the same period.
    (k) The commissioner has the authority to:
        (1) enforce the provisions of; and
        (2) impose any penalty or remedy authorized by;
this chapter or any other provision of this title against any person who is under investigation for or charged with a violation of this chapter or any other provision of this title, even if the person's license or registration has been surrendered or has lapsed by operation of law.
    (l) For purposes of this section, the violation of any provision of IC 28 concerning the sale of a life insurance policy or an annuity contract shall be considered a violation described in subsection (b)(2).
    (m) The commissioner may order a licensee to make restitution if the commissioner finds that the licensee has committed a violation described in:
        (1) subsection (b)(4);
        (2) subsection (b)(7);
        (3) subsection (b)(8); or
        (4) subsection (b)(16).
    (n) The commissioner shall notify the securities commissioner

appointed under IC 23-2-1-15 when an administrative action or civil proceeding is filed under this section and when an order is issued under this section denying, suspending, or revoking a license.
    Sec. 13. (a) An insurance company or insurance producer shall not pay a commission, service fee, brokerage fee, or other valuable consideration to a person for selling, soliciting, or negotiating insurance in Indiana if the person is required to be licensed under this chapter and is not licensed.
    (b) A person shall not accept a commission, service fee, brokerage fee, or other valuable consideration for selling, soliciting, or negotiating insurance in Indiana if the person is required to be licensed under this chapter and is not licensed.
    (c) Renewal commissions or other deferred commissions may be paid to a person for selling, soliciting, or negotiating insurance in Indiana if the person was required to be licensed under this chapter and was licensed at the time of the sale, solicitation, or negotiation.
    (d) An insurer or insurance producer may pay or assign commissions, service fees, brokerage fees, or other valuable consideration to an insurance agency or to a person who does not sell, solicit, or negotiate insurance in Indiana, unless the payment would violate IC 27-1-20-30.
    Sec. 14. An insurance producer shall not act as an agent of an insurer unless the insurance producer becomes an appointed producer of the insurer. An insurance producer who is not acting as an agent of an insurer is not required to become appointed.
    Sec. 15. (a) An insurer or authorized representative of an insurer that terminates the appointment, employment, contract, or other insurance business relationship with a producer shall notify the commissioner not more than thirty (30) days after the effective date of the termination using a format prescribed by the commissioner, if:
        (1) the reason for termination is described in section 12 of this chapter; or
        (2) the insurer has knowledge that the producer was found by a court, a government body, or a self-regulatory organization authorized by law to have engaged in any of the activities described in section 12 of this chapter.
Upon the written request of the insurance commissioner, the insurer shall provide additional information, documents, records, and other data pertaining to the termination or activity of the

producer.
    (b) If an insurer discovers, upon further review or investigation, additional information that would have been reportable to the commissioner under subsection (a) had the insurer known of the existence of the additional information, the insurer or an authorized representative of the insurer shall promptly notify the commissioner of the additional information in a format acceptable to the commissioner.
    (c) A copy of the notification of termination of a producer that must be provided to the commissioner under this section shall also be provided to the producer as follows:
        (1) Not more than fifteen (15) days after making the notification required under subsection (a) or (b), the insurer shall mail a copy of the notification to the producer at the producer's last known address. If the producer is terminated for cause for any of the reasons described in section 12 of this chapter, the insurer shall provide a copy of the notification to the producer at the producer's last known address by certified mail, return receipt requested, postage prepaid, or by overnight delivery using a nationally recognized carrier.
        (2) Not more than thirty (30) days after the producer has received the original or additional notification, the producer may file written comments concerning the substance of the notification with the commissioner. The producer shall, by the same means used by the producer to file the written comments with the commissioner, simultaneously send a copy of the comments to the reporting insurer, and the comments shall become a part of the commissioner's file and accompany every copy of a report distributed or disclosed for any reason about the producer as permitted under subsection (e).
    (d) Immunities under this section are as follows:
        (1) In the absence of actual malice, an insurer, an authorized representative of an insurer, a producer, the commissioner, and an organization of which the commissioner is a member and that compiles information and makes it available to other insurance commissioners or regulatory or law enforcement agencies are immune from civil liability, and a civil cause of action of any nature shall not arise against these entities or their respective agents or employees, as a result of:
            (A) a statement or information required by or provided under this section or any information relating to a statement that may be requested in writing by the

commissioner from an insurer or producer; or
            (B) a statement by a terminating insurer to a producer or by a producer to a terminating insurer;
        limited solely and exclusively to whether a termination for cause referred to in subsection (a) was reported to the commissioner, provided that the propriety of any termination for cause referred to in subsection (a) is certified in writing by an officer or authorized representative of the insurer or producer terminating the relationship.
        (2) In any action brought against a person that may have immunity under subdivision (1) for:
            (A) making a statement required under this section; or
            (B) providing information relating to a statement that may be requested by the commissioner;
        the party bringing the action must plead specifically in any allegation that subdivision (1) does not apply because the person making the statement or providing the information did so with actual malice.
        (3) Existing statutory or common law privileges or immunities are not abrogated or modified by subdivision (1) or (2).
    (e) Confidentiality under this section is as follows:
        (1) Documents, materials, and other forms of information in the control or possession of the department that are:
            (A) furnished by:
                (i) an insurer or producer; or
                (ii) an employee or agent of an insurer acting on behalf of the insurer or producer; or
            (B) obtained by the commissioner in an investigation under this section;
        are confidential by law and privileged, are not subject to public inspection and copying under IC 5-14-3-3, are not subject to subpoena, and are not subject to discovery or admissible in evidence in any private civil action. However, the commissioner is authorized to use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as a part of the commissioner's duties.
        (2) Neither the commissioner nor any person who receives confidential documents, materials, or other information described in subdivision (1) while acting under the authority of the commissioner may be permitted or required to testify in any private civil action concerning the confidential

documents, materials, or information described in subdivision (1).
        (3) To assist in the performance of the commissioner's duties under this chapter, the commissioner may:
            (A) share documents, materials, and other information, including the confidential and privileged documents, materials, and information described in subdivision (1), with:
                (i) other state, federal, and international regulatory agencies;
                (ii) the National Association of Insurance Commissioners, its affiliates or subsidiaries; and
                (iii) state, federal, and international law enforcement authorities;
            provided that the recipient agrees to maintain the confidentiality and privileged status of the documents, materials, or other information;
            (B) receive documents, materials, and information, including otherwise confidential and privileged documents, materials, and information, from:
                (i) the National Association of Insurance Commissioners, its affiliates or subsidiaries; and
                (ii) regulatory and law enforcement officials of other foreign or domestic jurisdictions;
            and shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information; and
            (C) enter into agreements governing sharing and use of information consistent with this subsection.
        (4) Disclosure of documents, materials, and information:
            (A) to the commissioner; or
            (B) by the commissioner;
        under this section does not result in a waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information.
        (5) This chapter does not prohibit the commissioner from releasing final, adjudicated actions, including for cause terminations that are open to public inspection under IC 5-14, to a database or other clearinghouse service maintained by the National Association of Insurance Commissioners or by its

affiliates or subsidiaries.
    (f) If an insurer, an authorized representative of an insurer, or a producer fails to report as required under this section or is found to have reported falsely with actual malice by a court of competent jurisdiction, the commissioner may, after notice and hearing, suspend or revoke the license or certificate of authority of the insurer, authorized representative, or producer, and may fine the insurer, authorized representative, or producer under IC 27-4-1-6.
    Sec. 16. (a) The commissioner shall waive any requirements, except the requirements imposed by section 8 of this chapter, for a nonresident license applicant with a valid license from the applicant's home state if the applicant's home state awards nonresident licenses to residents of Indiana on the same basis.
    (b) A nonresident producer's satisfaction of the nonresident producer's home state's continuing education requirements for licensed insurance producers also satisfies Indiana's continuing education requirements if the non-resident producer's home state recognizes the satisfaction of the non-resident producer's home state's continuing education requirements imposed upon producers from Indiana on the same basis.
    Sec. 17. (a) A producer shall report to the commissioner any administrative action taken against the producer in another jurisdiction or by another governmental agency in Indiana not more than thirty (30) days after the final disposition of the matter. The report shall include a copy of the order, consent to order, or other relevant legal documents.
    (b) Not more than thirty (30) days after an initial pretrial hearing date, a producer shall report to the commissioner any criminal prosecution of the producer initiated in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.
    Sec. 18. The commissioner may issue a limited lines producer's license to the following without examination:
        (1) A person who is a ticket-selling producer of a common carrier and who will act only with reference to the issuance of insurance on personal effects carried as baggage, in connection with the transportation provided by such common carrier.
        (2) A person who will only negotiate or solicit limited travel accident insurance in transportation terminals.
        (3) A limited line credit insurance producer.


        (4) A person who will only negotiate or solicit insurance under Class 2(j) of IC 27-1-5-1.
        (5) Any person who will negotiate or solicit a kind of insurance that the commissioner finds does not require an examination to demonstrate professional competency.
    Sec. 19. (a) As used in this section, "prearranged funeral insurance" means insurance that is used to fund any of the following:
        (1) A funeral trust under IC 30-2-10 and IC 30-2-13.
        (2) Any other arrangement for advance payment of funeral and burial expenses.
    (b) A person shall not sell, solicit, or negotiate prearranged funeral insurance unless the person is licensed as either of the following:
        (1) An insurance producer with a life qualification under section 7 of this chapter.
        (2) A limited lines producer.
    (c) A person may be licensed as a limited lines producer to sell only prearranged funeral insurance if the person is:
        (1) licensed under IC 25-15-4-3; and
        (2) granted a change in status under subsection (d).
    (d) If, after a person is licensed under this chapter as an insurance producer with a life qualification, the person wants to limit the person's insurance business solely to the sale of prearranged funeral insurance, the person must:
        (1) request the commissioner to issue the person a limited lines producer's license under this chapter; and
        (2) show proof of having completed ten (10) hours of continuing education credit approved by the department.
    (e) If the commissioner receives a request and proof under subsection (d), the commissioner shall issue a limited lines producer's license, subject to the provisions of this chapter relating to limited lines producer licenses.
    (f) A person issued a limited lines producer's license under subsection (e) may sell only prearranged funeral insurance.
    Sec. 20. (a) As used in this section, "crop hail insurance" means insurance that is used only in the event of hail related disasters to growing farm crops.
    (b) As used in this section, "multi-peril crop insurance" means insurance that is:
        (1) used in the event of weather related disasters or insect infestations during the growing season; and
        (2) guaranteed by the Federal Crop Insurance Corporation.
    (c) To sell multi-peril crop insurance or crop hail insurance, a person must be licensed under this chapter.
    (d) If, after a person is licensed under this chapter as an insurance producer, the person wants to limit the person's insurance business solely to the sale of:
        (1) multi-peril crop insurance;
        (2) crop hail insurance; or
        (3) multi-peril crop insurance and crop hail insurance;
the person may request the commissioner to issue to the person a limited lines producer's license under this chapter.
    (e) If the commissioner:
        (1) receives a request from a person under subsection (d); and
        (2) the person shows proof of having completed ten (10) hours of continuing education credit approved by the department;
the commissioner shall issue a limited lines producer's license to the person, subject to the provisions of this chapter relating to limited lines producer's licenses.
    (f) A person issued a limited lines producer's license under subsection (e) may sell only:
        (1) multi-peril crop insurance;
        (2) crop hail insurance; or
        (3) multi-peril crop insurance and crop hail insurance.
    Sec. 21. (a) Service of process upon any nonresident producer licensee in any action or proceeding in any court of competent jurisdiction of Indiana arising out of the nonresident producer's insurance business in Indiana may be made by serving the commissioner with appropriate copies thereof and paying to the commissioner a fee of two dollars ($2). The commissioner shall forward a copy of such process by registered or certified mail to the licensee at the licensee's last known address of record or principal place of business, and shall keep a record of all processes so served upon the commissioner.
    (b) The service of process under subsection (a) is sufficient if notice of the service and a copy of the process are sent to the licensee at the licensee's last known address of record or principal place of business by registered or certified mail, return receipt requested not more than ten (10) days after the commissioner is served.
    Sec. 22. (a) An insurance producer may not receive compensation for the sale, solicitation, negotiation, or renewal of any insurance policy issued to any person or entity for whom the

insurance producer, for a fee, acts as a consultant for that policy unless:
        (1) the insurance producer provides to the insured a written agreement in accordance with section 23(c) of this chapter; and
        (2) the insurance producer discloses to the insured the following information prior to the sale, solicitation, negotiation, or renewal of any policy:
            (A) The fact that the insurance producer will receive compensation for the sale of the policy.
            (B) The method of compensation.
    (b) The requirements of this subsection are in addition to the requirements set forth in subsection (a). A risk manager described in IC 27-1-22-2.5(b)(2) shall, before providing risk management services to an exempt commercial policyholder (as defined in IC 27-1-22-2.5), disclose in writing to the exempt commercial policyholder whether the risk manager will receive or expects to receive any commission, fee, or other consideration from an insurer in connection with the purchase of a commercial insurance policy by the exempt commercial policyholder. However, if the risk manager charges the exempt commercial policyholder a fee for risk management services, the risk manager shall disclose in writing to the exempt commercial policyholder the specific amount of any commission, fee, or other consideration that the risk manager may receive from an insurer in connection with the purchase of the policy. The risk manager shall, before providing the risk management services, obtain from the exempt commercial policyholder a written acknowledgment of the disclosures made by the risk manager to the exempt commercial policyholder under this subsection.
    Sec. 23. (a) An individual or corporation shall not engage in the business of an insurance consultant until a consultant license has been issued to the individual or corporation by the commissioner. However, a consultant license is not required for the following:
        (1) An attorney licensed to practice law in Indiana acting in the attorney's professional capacity.
        (2) A duly licensed insurance producer or surplus lines producer.
        (3) A trust officer of a bank acting in the normal course of the trust officer's employment.
        (4) An actuary or a certified public accountant who provides information, recommendations, advice, or services in the

actuary's or certified public accountant's professional capacity.
    (b) An application for a license to act as an insurance consultant shall be made to the commissioner on forms prescribed by the commissioner. An applicant may limit the scope of the applicant's consulting services by stating the limitation in the application. The areas of allowable consulting services are:
        (1) Class 1, consulting regarding the kinds of insurance specified in IC 27-1-5-1, Class 1; and
        (2) Class 2 and Class 3, consulting regarding the kinds of insurance specified in IC 27-1-5-1, Class 2 and Class 3.
Within a reasonable time after receipt of a properly completed application form, the commissioner shall hold a written examination for the applicant that is limited to the type of consulting services designated by the applicant, and may conduct investigations and propound interrogatories concerning the applicant's qualifications, residence, business affiliations, and any other matter that the commissioner considers necessary or advisable in order to determine compliance with this chapter or for the protection of the public.
    (c) For purposes of this subsection, "consultant's fee" does not include a late fee charged under section 24 of this chapter or fees otherwise allowed by law. A consultant shall provide consultant services as outlined in a written agreement. The agreement must be signed by the person receiving services, and a copy of the agreement must be provided to the person receiving services before any services are performed. The agreement must outline the nature of the work to be performed by the consultant and the method of compensation of the consultant. The signed agreement must be retained by the consultant for not less than two (2) years after completion of the services. A copy of the agreement shall be made available to the commissioner. In the absence of an agreement on the consultant's fee, the consultant shall not be entitled to recover a fee in any action at law or in equity.
    (d) An individual or corporation shall not concurrently hold a consultant license and an insurance producer's license, surplus lines producer's license, or limited lines producer's license at any time.
    (e) A licensed consultant shall not:
        (1) employ;
        (2) be employed by;
        (3) be in partnership with; or


        (4) receive any remuneration whatsoever;
from a licensed insurance producer, surplus lines producer, or limited lines producer or insurer, except that a consultant may be compensated by an insurer for providing consulting services to the insurer.
    (f) A consultant license shall be valid for not longer than twenty-four (24) months and may be renewed and extended in the same manner as an insurance producer's license. The commissioner shall designate on the license the consulting services that the licensee is entitled to perform.
    (g) All requirements and standards relating to the denial, revocation, or suspension of an insurance producer's license, including penalties, apply to the denial, revocation, and suspension of a consultant license as nearly as practicable.
    (h) A consultant is obligated under the consultant's license to:
        (1) serve with objectivity and complete loyalty solely the insurance interests of the consultant's client; and
        (2) render the client such information, counsel, and service as within the knowledge, understanding, and opinion, in good faith of the licensee, best serves the client's insurance needs and interests.
    (i) Except as provided in subsection (j), the form of a written agreement required by subsection (c) must be filed with the commissioner not less than thirty (30) days before the form is used. If the commissioner does not expressly approve or disapprove the form within thirty (30) days after filing, the form is considered approved. At any time after notice and for cause shown, the commissioner may withdraw approval of a form effective thirty (30) days after the commissioner issues notice that the approval is withdrawn.
    (j) Subsection (i) does not apply to the form of a written agreement under subsection (c) that is executed by an insurance producer and an exempt commercial policyholder (as defined in IC 27-1-22-2.5).
    Sec. 24. (a) This section applies to commercial property and casualty insurance coverage described in Class 2 and Class 3 of IC 27-1-5-1.
    (b) A licensed insurance producer may charge a commercial insured a reasonable fee to reimburse the insurance producer for expenses incurred by the insurance producer at the specific request of the commercial insured, subject to the following requirements:
        (1) Before incurring any expense described in this subsection,

the insurance producer must provide written notice to the commercial insured stating that a fee will be charged and setting forth the:
            (A) amount of the fee; or
            (B) basis for calculating the fee.
        (2) The amount of a fee and the basis for calculating a fee may not vary among commercial insureds.
        (3) Any fee that is charged must be identified separately from premium and itemized in any bill provided to the commercial insured.
    (c) A licensed insurance producer may charge a commercial insured a reasonable fee for services that are provided at the request of the commercial insured in connection with a policy that provides coverage described in subsection (a) and for which the insurance producer does not receive a commission or other compensation, subject to the following requirements:
        (1) Before providing services, the insurance producer must provide to the commercial insured a written description of the services to be provided and the fee for the services.
        (2) Any fee that is charged must be identified separately from premium and itemized in any bill provided to the commercial insured.
    (d) A licensed insurance producer who acts as a consultant and provides services described in this section shall comply with the requirements of this section and section 23 of this chapter.
    (e) A licensed insurance producer may charge a late fee for agency billed accounts or policies that are more than thirty (30) days delinquent. A late fee may not exceed one and three quarters percent (1.75%) per month of the amount due on the due date.
    Sec. 25. An individual who performed the functions of a person representing a fraternal benefit society before July 1, 1977, is not required to take an examination, but is entitled to have an insurance producer's license issued to the individual, subject to IC 27-1-15.7 and the requirements of this chapter.
    Sec. 26. A person who performed the functions of a limited lines producer negotiating or soliciting the type of insurance described in IC 27-1-5-1, Class 2(j) before July 1, 1977, is not required to take an examination, but is entitled to have an insurance producer's license issued to the individual, subject to IC 27-1-15.7 and the requirements of this chapter.
    Sec. 27. A person who held a valid solicitor's license on July 1, 1977, is subject to the same rights and responsibilities under a

solicitor's license as the rights and responsibilities that were in effect before enactment of this chapter.
    Sec. 28. (a) Upon receiving an order of a court issued under IC 31-14-12-7 or IC 31-16-12-10 (or IC 31-1-11.5-13(m) or IC 31-6-6.1-16(m) before their repeal), the commissioner shall:
        (1) suspend a license issued under this chapter to the person who is the subject of the order; and
        (2) promptly mail a notice to the last known address of the person who is the subject of the order, stating the following:
            (A) That the person's license is suspended beginning five (5) business days after the date the notice is mailed, and that the suspension will terminate not earlier than ten (10) business days after the commissioner receives an order allowing reinstatement from the court that issued the suspension order.
            (B) That the person has the right to petition for reinstatement of a license issued under this chapter to the court that issued the order for suspension.
    (b) The commissioner shall not reinstate a license suspended under subsection (a) until the commissioner receives an order allowing reinstatement from the court that issued the order for suspension.
    Sec. 29. (a) Upon receiving an order from the bureau (Title IV-D agency) under IC 12-17-2-34(i), the commissioner shall send to the person who is the subject of the order a notice that does the following:
        (1) States that the person is delinquent and is subject to an order placing the person on probationary status.
        (2) Explains that unless the person contacts the bureau and:
            (A) pays the person's child support arrearage in full;
            (B) requests the activation of an income withholding order under IC 31-16-15-2, and establishes a payment plan with the bureau to pay the arrearage; or
            (C) requests a hearing under IC 12-17-2-35;
        within twenty (20) days after the date the notice is mailed, the commissioner shall place the person on probationary status with respect to a license issued to the person under this chapter.
        (3) Explains that the person may contest the bureau's determination that the person is delinquent and subject to an order placing the person on probationary status by making written application to the bureau within twenty (20) days

after the date the notice is mailed.
        (4) Explains that the only basis for contesting the bureau's determination that the person is delinquent and subject to an order placing the person on probationary status is a mistake of fact.
        (5) Explains the procedures to:
            (A) pay the person's child support arrearage in full;
            (B) establish a payment plan with the bureau to pay the arrearage;
            (C) request the activation of an income withholding order under IC 31-16-15-2; and
            (D) request a hearing under IC 12-17-2-35.
        (6) Explains that the probation will terminate ten (10) business days after the commissioner receives a notice from the bureau that the person has:
            (A) paid the person's child support arrearage in full; or
            (B) established a payment plan with the bureau to pay the arrearage and requested the activation of an income withholding order under IC 31-16-15-2.
    (b) Upon receiving an order from the bureau (Title IV-D agency) under IC 12-17-2-36(d), the commissioner shall send a notice to the person who is the subject of the order stating the following:
        (1) That a license issued to the person under this chapter has been placed on probationary status, beginning five (5) business days after the date the notice was mailed, and that the probation will terminate ten (10) business days after the commissioner receives a notice from the bureau that the person has:
            (A) paid the person's child support arrearage in full; or
            (B) established a payment plan with the bureau to pay the arrearage and requested the activation of an income withholding order under IC 31-16-15-2.
        (2) That if the commissioner is advised by the bureau that the person whose license has been placed on probationary status has failed to:
            (A) pay the person's child support arrearage in full; or
            (B) establish a payment plan with the bureau to pay the arrearage and request the activation of an income withholding order under IC 31-16-15-2;
        within twenty (20) days after the date the notice is mailed, the commissioner shall suspend the person's license.


    (c) If the commissioner receives a notice by the bureau (Title IV-D agency) under IC 12-17-2-34(i) that the person whose license has been placed on probationary status has failed to:
        (1) pay the person's child support arrearage in full; or
        (2) establish a payment plan with the bureau to pay the arrearage and request the activation of an income withholding order under IC 31-16-15-2;
within twenty (20) days after the notice required under subsection (b) is mailed, the commissioner shall suspend the person's license.
    (d) The commissioner may not reinstate any license placed on probation or suspended under this section until the commissioner receives a notice from the bureau that the person has:
        (1) paid the person's child support arrearage in full; or
        (2) established a payment plan with the bureau to pay the arrearage and requested the activation of an income withholding order under IC 31-16-15-2.
    Sec. 30. The commissioner and the director of the department of financial institutions shall consult with each other and assist each other in enforcing compliance with the provisions of IC 28 concerning the sale of life insurance policies and annuity contracts. The commissioner and the director of the department of financial institutions may jointly conduct investigations, prosecute suits, and take other official action they consider appropriate under this section if either of them is empowered to take the action. If the director of the department of financial institutions is informed by a financial institution or its affiliate of a violation or suspected violation of any provision of IC 28 concerning the sale of life insurance policies or annuity contracts or of the insurance laws and rules of Indiana, the director of the department of financial institutions shall timely advise the commissioner of the violation. If the commissioner is informed by a financial institution or its affiliate of a violation or suspected violation of any provision of IC 28 concerning the sale of life insurance policies or annuity contracts or of the insurance laws and rules of Indiana, the commissioner shall timely advise the director of the department of financial institutions of the violation.
    Sec. 31. An insurance producer shall not:
        (1) be named a beneficiary of;
        (2) become an owner of; or
        (3) receive a collateral assignment of;
an individual life insurance policy or individual annuity contract unless the insurance producer has an insurable interest in the life

of the insured or annuitant. A beneficiary designation, ownership designation, or collateral assignment made in violation of this section is void.
    Sec. 32. (a) The department shall adopt rules under IC 4-22-2 to set fees for licensure under this chapter, IC 27-1-15.7, and IC 27-1-15.8.
    (b) Insurance producer and limited lines producer license renewal fees are due every four (4) years. The fee charged by the department every four (4) years for a:
        (1) resident license is forty dollars ($40); and
        (2) nonresident license is ninety dollars ($90).
    (c) Consultant renewal fees are due every twenty-four (24) months.
    (d) Surplus lines producer renewal fees are due annually.
    (e) The commissioner may issue a duplicate license for any license issued under this chapter. The fee charged by the commissioner for the issuance of a duplicate:
        (1) insurance producer license;
        (2) surplus lines producer license;
        (3) limited lines producer license; or
        (4) consultant license;
may not exceed ten dollars ($10).
    Sec. 33. Except as otherwise provided in section 32 of this chapter, the commissioner may adopt rules under IC 4-22-2 to carry out the purposes of this chapter.
    Sec. 34. All hearings held under this chapter are governed by IC 4-21.5-3. The commissioner may appoint members of the commissioner's staff to act as hearing officers for purposes of hearings held under this chapter.

    SECTION 6. IC 27-2-20 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]:
     Chapter 20. Privacy of Consumer Information
    Sec. 1. (a) This chapter applies to nonpublic personal financial information regarding individuals who:
        (1) obtain; or
        (2) are claimants or beneficiaries of;
products or services primarily for personal, family, or household purposes from licensees of the department of insurance.
    (b) This chapter does not apply to information regarding companies or regarding individuals who obtain products or services for business, commercial, or agricultural purposes.


    Sec. 2. The following definitions apply throughout this chapter:
        (1) "Affiliate" means a company that controls, is controlled by, or is under common control with, another company.
        (2) "Clear and conspicuous" means that a notice is reasonably understandable and designed to call attention to the nature and significance of the information in the notice. The following are examples:
            (A) A licensee makes the licensee's notice reasonably understandable if the licensee does the following:
                (i) Presents the information in the notice in clear, concise sentences, paragraphs, and sections.
                (ii) Uses short explanatory sentences or bullet lists whenever possible.
                (iii) Uses definite, concrete, everyday words and active voice whenever possible.
                (iv) Avoids multiple negatives.
                (v) Avoids legal and highly technical business terminology whenever possible.
                (vi) Avoids explanations that are imprecise and readily subject to different interpretations.
            (B) A licensee designs the licensee's notice to call attention to the nature and significance of the information in the notice if the licensee does the following:
                (i) Uses a plain-language heading to call attention to the notice.
                (ii) Uses a typeface and type size that are easy to read.
                (iii) Provides wide margins and ample line spacing.
                (iv) Uses boldface or italics for key words.
                (v) In a form that combines the licensee's notice with other information, uses distinctive type size, style, and graphic devices, such as shading or sidebars.
            (C) If a licensee provides a notice on a Web page, the licensee designs the licensee's notice to call attention to the nature and significance of the information in the notice if the licensee uses text or visual cues to encourage scrolling down the page if necessary to view the entire notice and ensure that other elements on the Web site, such as text, graphics, hyperlinks, or sound, do not distract attention from the notice, and the licensee does either of the following:
                (i) Places the notice on a screen that consumers frequently access, such as a page on which transactions

are conducted.
                (ii) Places a link on a screen that consumers frequently access, such as a page on which transactions are conducted, that connects directly to the notice and is labeled appropriately to convey the importance, nature, and relevance of the notice.
        (3) "Collect" means to obtain information that a licensee organizes or can retrieve by the name of an individual or by identifying number, symbol, or other identifying particular assigned to the individual, regardless of the source of the underlying information.
        (4) "Commissioner" means the commissioner of the Indiana department of insurance.
        (5) "Company" means a corporation, limited liability company, business trust, general or limited partnership, association, sole proprietorship, or similar organization.
        (6) "Consumer" means an individual who seeks to obtain, obtains, or has obtained an insurance product or service from a licensee that is to be used primarily for personal, family, or household purposes, and about whom the licensee has nonpublic personal information, or the individual's legal representative, including the following:
            (A) An individual provides nonpublic personal information to a licensee in connection with obtaining or seeking to obtain financial, investment or economic advisory services relating to an insurance product or service is a consumer regardless of whether the licensee establishes an ongoing advisory relationship.
            (B) An applicant for insurance prior to the inception of insurance coverage is a licensee's consumer.
            (C) An individual who is a consumer of another financial institution is not a licensee's consumer solely because the licensee is acting as an agent for, or provides processing or other services to, that financial institution.
            (D) An individual is a licensee's consumer if the individual is:
                (i) a beneficiary of a life insurance policy underwritten by the licensee;
                (ii) a claimant under an insurance policy issued by the licensee;
                (iii) an insured or an annuitant under an insurance policy or an annuity, respectively, issued by the licensee;

or
                (iv) a mortgagor of a mortgage covered under a mortgage insurance policy;
            and the licensee discloses nonpublic personal financial information about the individual to a nonaffiliated third party other than as permitted under sections 12, 13, and 14 of this chapter.
            (E) If the licensee provides the initial, annual, and revised notices under sections 3, 4, and 7 of this chapter to the plan sponsor, group, or blanket insurance policyholder or group annuity contractholder, and if the licensee does not disclose to a nonaffiliated third party nonpublic personal financial information about the individual other than as permitted under sections 12, 13, and 14 of this chapter, an individual is not the consumer of the licensee solely because the individual is:
                (i) a participant or a beneficiary of an employee benefit plan that the licensee administers or sponsors or for which the licensee acts as a trustee, insurer, or fiduciary;
                (ii) covered under a group or blanket insurance policy or group annuity contract issued by the licensee; or
                (iii) a beneficiary in a workers' compensation plan.
            (F) The individuals described in clause (E)(i) through (E)(iii) are consumers of a licensee if the licensee does not meet all the conditions of this subdivision. In no event shall the individuals, solely by virtue of the status described in clause (E)(i) through (E)(iii), be considered to be customers.
            (G) An individual is not a licensee's consumer solely because the individual is a beneficiary of a trust for which the licensee is a trustee.
            (H) An individual is not a licensee's consumer solely because the individual has designated the licensee as trustee for a trust.
        (7) "Consumer reporting agency" has the meaning set forth in section 603(f) of the federal Fair Credit Reporting Act (15 U.S.C. 1681a(f)).
        (8) "Control" means any of the following:
            (A) Ownership, control, or power to vote twenty-five percent (25%) or more of the outstanding shares of any class of voting security of a company, directly or indirectly, or acting through one (1) or more other persons.


            (B) Control in any manner over the election of a majority of the directors, trustees, general partners, or individuals exercising similar functions, of a company.
            (C) The power to exercise, directly or indirectly, a controlling influence over the management or policies of a company, as determined by the commissioner.
        (9) "Customer" means a consumer who has a customer relationship with a licensee.
        (10) "Customer relationship" means a continuing relationship between a consumer and a licensee under which the licensee provides one (1) or more insurance products or services to the consumer that are to be used primarily for personal, family, or household purposes, including the following:
            (A) A consumer has a continuing relationship with a licensee if the consumer:
                (i) is a current policyholder of an insurance product issued by or through the licensee; or
                (ii) obtains financial, investment, or economic advisory services relating to an insurance product or service from the licensee for a fee.
            (B) A consumer does not have a continuing relationship with a licensee in any of the following circumstances:
                (i) The consumer applies for insurance but does not purchase the insurance.
                (ii) The licensee sells the consumer airline travel insurance in an isolated transaction.
                (iii) The individual is no longer a current policyholder of an insurance product or no longer obtains insurance services with or through the licensee.
                (iv) The consumer is a beneficiary or claimant under a policy and has submitted a claim under a policy choosing a settlement option involving an ongoing relationship with the licensee.
                (v) The consumer is a beneficiary or a claimant under a policy and has submitted a claim under that policy choosing a lump sum settlement option.
                (vi) The customer's policy is lapsed, expired, or otherwise inactive or dormant under the licensee's business practices, and the licensee has not communicated with the customer about the relationship for a period of twelve (12) consecutive months, other than annual privacy notices, material required by law or

rule, communication at the direction of a state or federal authority, or promotional materials.
                (vii) The individual is an insured or an annuitant under an insurance policy or annuity, respectively, but is not the policyholder or owner of the insurance policy or annuity.
                (viii) For the purposes of this chapter, the individual's last known address, according to the licensee's records, is considered invalid. An address of record is considered invalid if mail sent to that address by the licensee has been returned by the postal authorities as undeliverable and if subsequent attempts by the licensee to obtain a current valid address for the individual have been unsuccessful.
        (11) "Financial institution" means an institution the business of which is engaging in activities that are financial in nature or incidental to financial activities as described in section 4(k) of the Bank Holding Company Act of 1956, 12 U.S.C. 1843(k). The term does not include the following:
            (A) A person or entity with respect to any financial activity that is subject to the jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act, 7 U.S.C. 1 et seq.
            (B) The Federal Agricultural Mortgage Corporation or any entity charged and operating under the Farm Credit Act of 1971, 12 U.S.C. 2001 et seq.
            (C) Institutions chartered by Congress specifically to engage in securitizations, secondary market sales (including sales of servicing rights), or similar transactions related to a transaction of a consumer, as long as the institutions do not sell or transfer nonpublic personal information to a nonaffiliated third party.
        (12) "Financial product or service" means a product or service that a financial holding company could offer by engaging in an activity that is financial in nature or incidental to such a financial activity under section 4(k) of the Bank Holding Company Act of 1956, 12 U.S.C. 1843(k). "Financial service" includes a financial institution's evaluation or brokerage of information that the financial institution collects in connection with a request or an application from a consumer for a financial product or service.
        (13) "Health information" means any information or data,

except age or gender, whether oral or recorded in any form or medium, created by or derived from a health care provider or a consumer that relates to any of the following:
            (A) The past, present, or future physical, mental, or behavioral health or condition of an individual.
            (B) The provision of health care to an individual.
            (C) Payment for the provision of health care to an individual.
        (14) "Insurance product or service" means any product or service that is offered by a licensee under the insurance laws of Indiana. "Insurance service" includes a licensee's evaluation, brokerage, or distribution of information that the licensee collects in connection with a request or an application from a consumer for an insurance product or service.
        (15) "Licensee" means licensed insurers, health maintenance organizations, agents, producers, and other persons licensed or required to be licensed, or authorized or required to be authorized, or registered or required to be registered under IC 27. The following requirements apply:
            (A) A licensee is not subject to the notice and opt out requirements for nonpublic personal financial information set forth in section 1 of this chapter, this section, and sections 3 through 15 of this chapter if the licensee is an employee, agent, or other representative of another licensee and:
                (i) the other licensee otherwise complies with, and provides the notices required under this chapter; and
                (ii) the licensee does not disclose any nonpublic personal information to any person other than the principal or affiliates of the principal in a manner permitted under this chapter.
            (B) A licensee includes an unauthorized insurer that accepts business placed through a licensed surplus lines broker in Indiana, but only with regard to the surplus lines placements placed under IC 27-1-15.5-5. A surplus lines broker or surplus lines insurer is considered to be in compliance with the notice and opt out requirements for nonpublic personal financial information set forth in section 1 of this chapter, this section, and sections 3 through 15 of this chapter if the surplus lines agent or insurer:
                (i) does not disclose nonpublic personal information of a

consumer or a customer to a nonaffiliated third party for any purpose, including joint servicing or marketing under section 12 of this chapter, except as permitted under section 13 or 14 of this chapter; and
                (ii) delivers a notice to the consumer at the time a customer relationship is established on which the following is printed in 16 point type:

PRIVACY NOTICE

        NEITHER THE U.S. SURPLUS LINES AGENTS THAT HANDLED THIS INSURANCE NOR THE INSURERS THAT HAVE UNDERWRITTEN THIS INSURANCE WILL DISCLOSE NONPUBLIC PERSONAL INFORMATION CONCERNING THE BUYER TO NONAFFILIATES OF THE BROKERS OR INSURERS EXCEPT AS PERMITTED BY LAW.
        (16) "Nonaffiliated third party" means a person other than a licensee's affiliate or a person employed jointly by a licensee and any company that is not the licensee's affiliate. The term includes either of the following:
            (A) The other company that jointly employs the person.
            (B) A company that is an affiliate solely by virtue of the direct or indirect ownership or control of the company by the licensee or the licensee's affiliate in conducting merchant banking or investment banking activities or insurance company investment activities of the type described in the federal Bank Holding Company Act, 12 U.S.C. 1843(k)(4)(H) and 12 U.S.C. 1843(k)(4)(I).
        (17) "Nonpublic personal financial information" means personally identifiable financial information and a list, description, or other grouping of consumers (and publicly available information pertaining to them) that is derived using a personally identifiable financial information that is not publicly available, including a list of individuals' names and street addresses that is derived in whole or in part using personally identifiable financial information that is not publicly available, such as account numbers. The term does not include any of the following:
            (A) Health information.
            (B) Publicly available information, except as included on a list described in subdivision (23).
            (C) A list, description, or other grouping of consumers (and publicly available information pertaining to them)

that is derived without using any personally identifiable financial information that is not publicly available.
            (D) A list of the names and addresses of individuals that contains only publicly available information, is not derived in whole or in part using personally identifiable financial information that is not publicly available, and is not disclosed in a manner that indicates that any of the individuals on the list is a consumer of a financial institution.
        (18) "Nonpublic personal information" means nonpublic personal financial information.
        (19) "Personally identifiable financial information" means information provided by a consumer to a licensee to obtain an insurance product or service from the licensee, information about a consumer resulting from a transaction involving an insurance product or service between a licensee and a consumer, or information a licensee otherwise obtains about a consumer in connection with providing an insurance product or service to the consumer, including the following:
            (A) Information a consumer provides to a licensee on an application to obtain an insurance product or service.
            (B) Account balance information and payment history.
            (C) The fact that an individual is or has been a customer of the licensee or has obtained an insurance product or service from the licensee.
            (D) Information about the licensee's consumer if it is disclosed in a manner that indicates that the individual is or has been a consumer of the licensee.
            (E) Information that a consumer provides to a licensee or that the licensee or an agent of the licensee otherwise obtains in connection with collecting on a loan or servicing a loan.
            (F) Information the licensee collects through an Internet cookie (an information-collecting device from a Web server).
            (G) Information from a consumer report.
        The term does not include health information, a list of names and addresses of customers of an entity that is not a financial institution, or information that does not identify a consumer, including aggregate information or blind data that does not contain personal identifiers, such as account numbers, names or addresses.


        (20) "Publicly available information" means information that a licensee has a reasonable basis to believe is lawfully made available to the general public from federal, state, or local government records, widely distributed media, or disclosures to the general public that are required to be made by federal, state, or local law. The following requirements apply:
            (A) A licensee has a reasonable basis to believe that information is lawfully made available to the general public if the licensee has taken steps to determine that the information is of the type that is available to the general public and whether an individual can direct that the information not be made available to the general public, and, if so, that the licensee's consumer has not done so.
            (B) Publicly available information in government records includes information in government real estate records and security interest filings.
            (C) Publicly available information from widely distributed media includes information from a:
                (i) telephone book;
                (ii) television;
                (iii) radio program,
                (iv) newspaper; or
                (v) Web site;
            that is available to the general public on an unrestricted basis. A Web site is not restricted merely because an Internet service provider or a site operator requires a fee or a password, so long as access is available to the general public.
            (D) A licensee has a reasonable basis to believe that mortgage information is lawfully made available to the general public if the licensee has determined that the information is of the type included on the public record in the jurisdiction where the mortgage would be recorded.
            (E) A licensee has a reasonable basis to believe that an individual's telephone number is lawfully made available to the general public if the licensee has located the telephone number in the telephone book or the consumer has informed you that the telephone number is not unlisted.
    Sec. 3. (a) A licensee shall provide a clear and conspicuous notice that accurately reflects the privacy policies and practices of the licensee to the following:
        (1) An individual who becomes the licensee's customer, not later than when the licensee establishes a customer relationship, except as provided in subsection (e).
        (2) A consumer, before the licensee discloses any nonpublic personal financial information about the consumer to any nonaffiliated third party, if the licensee makes a disclosure other than as authorized under sections 13 and 14 of this chapter.
    (b) A licensee is not required to provide an initial notice to a consumer under subsection (a) in either of the following instances:
        (1) The licensee does not disclose any nonpublic personal financial information about the consumer to any nonaffiliated third party, other than as authorized under sections 13 and 14 of this chapter, and the licensee does not have a customer relationship with the consumer.
        (2) A notice has been provided by an affiliated licensee, as long as the notice clearly identifies all licensees to whom the notice applies and is accurate with respect to the licensee and the other institutions.
    (c) A licensee establishes a customer relationship at the time the licensee and the consumer enter into a continuing relationship. The following are examples of establishing customer relationship:
        (1) The consumer becomes a policyholder of a licensee that is an insurer when the insurer delivers an insurance policy or contract to the consumer, or in the case of a licensee that is an insurance producer or insurance agent, obtains insurance through that licensee.
        (2) The consumer agrees to obtain financial, economic, or investment advisory services relating to insurance products or services from the licensee for a fee.
    (d) When an existing customer obtains a new insurance product or service from a licensee that is to be used primarily for personal, family, or household purposes, the licensee satisfies the initial notice requirements of subsection (a) if:
        (1) the licensee provides a revised policy notice, under section 7 of this chapter, that covers the customer's new insurance product or service; or
        (2) the initial, revised, or annual notice that the licensee most recently provided to the customer was accurate with respect to the new insurance product or service.
    (e) The following are exceptions that allow subsequent delivery of the required notice:
        (1) A licensee may provide the initial notice required under subsection (a)(1) within a reasonable time after the licensee establishes a customer relationship if:
            (A) establishing the customer relationship is not at the customer's election; or
            (B) providing notice not later than when the licensee establishes a customer relationship would substantially delay the customer's transaction and the customer agrees to receive the notice at a later time.
        (2) The following are examples of exceptions:
            (A) Establishing a customer relationship is not at the customer's election if a licensee acquires or is assigned a customer's policy from another financial institution or residual market mechanism and the customer does not have a choice about the licensee's acquisition or assignment.
            (B) Providing notice not later than when a licensee establishes a customer relationship would substantially delay the customer's transaction when the licensee and the individual agree over the telephone to enter into a customer relationship involving prompt delivery of the insurance product or service.
            (C) Providing notice not later than when a licensee establishes a customer relationship would not substantially delay the customer's transaction when the relationship is initiated in person at the licensee's office or through other means by which the customer may view the notice, such as on a Web site.
    (f) When a licensee is required to deliver an initial privacy notice under this section, the licensee shall deliver the notice as specified in section 8 of this chapter. If the licensee uses a short form initial notice for non-customers as specified in section 5 of this chapter, the licensee may deliver the privacy notice as specified in section 5(f) of this chapter.
    Sec. 4. (a) A licensee shall provide a clear and conspicuous notice to customers that accurately reflects the licensee's privacy policies and practices not less than annually during the continuation of the customer relationship.
        (1) As used in this section, "annually" means at least one (1) time in any period of twelve (12) consecutive months during which the relationship exists. A licensee may define the twelve (12) consecutive month period, but the licensee shall apply the

period to the customer on a consistent basis.
        (2) A licensee provides a notice annually if the licensee defines the twelve (12) consecutive month period as a calendar year and provides the annual notice to the customer once in each calendar year following the calendar year in which the licensee provided the initial notice.
    (b) A licensee is not required to provide an annual notice to a former customer. As used in this section, "former customer" means an individual with whom a licensee no longer has a continuing relationship and includes the following:
        (1) The individual is not a current policyholder of an insurance product or no longer obtains insurance services with or through the licensee.
        (2) The individual's policy is lapsed, expired, or otherwise inactive or dormant under the licensee's business practices, and the licensee has not communicated with the customer about the relationship for a period of twelve (12) consecutive months, other than to provide annual privacy notices, material required by law or rule, or promotional materials.
        (3) An individual if the individual's last known address according to the licensee's records is considered invalid. An address of record is considered invalid if mail sent to that address by the licensee has been returned by the postal authorities as undeliverable and if subsequent attempts by the licensee to obtain a current valid address for the individual have been unsuccessful.
        (4) In the case of providing real estate settlement services, at the time the customer completes execution of all documents related to the real estate closing, payment for the services has been received, or the licensee has completed all of the licensee's responsibilities with respect to the settlement, including filing documents on the public record, whichever is later.
    (c) When a licensee is required under this section to deliver an annual privacy notice, the licensee shall deliver the notice as specified under section 8 of this chapter.
    Sec. 5. (a) The initial, annual, and revised privacy notices that a licensee provides under sections 3, 4, and 7 of this chapter must include each of the following items of information, in addition to any other information that the licensee provides, that applies to the licensee and to the consumers to whom the licensee sends the licensee's privacy notice:


        (1) The categories of nonpublic personal financial information that the licensee collects.
        (2) The categories of nonpublic personal financial information that the licensee discloses.
        (3) The categories of affiliates and nonaffiliated third parties to whom the licensee discloses nonpublic personal financial information, other than those parties to whom the licensee discloses information under sections 13 and 14 of this chapter.
        (4) The categories of nonpublic personal financial information about the licensee's former customers that the licensee discloses and the categories of affiliates and nonaffiliated third parties to whom the licensee discloses nonpublic personal financial information about the licensee's former customers, other than the parties to whom the licensee discloses information under sections 13 and 14 of this chapter.
        (5) If a licensee discloses nonpublic personal financial information to a nonaffiliated third party under section 12 of this chapter (and no other exception in sections 13 and 14 of this chapter applies to the disclosure), a separate description of the categories of information that the licensee discloses and the categories of third parties with whom the licensee has contracted.
        (6) An explanation of the consumer's right under section 9(a) of this chapter to opt out of the disclosure of nonpublic personal financial information to nonaffiliated third parties, including the methods by which the consumer may exercise the right at that time.
        (7) Any disclosures that the licensee makes under section 603(d)(2)(A)(iii) of the federal Fair Credit Reporting Act, 15 U.S.C. 1681a(d)(2)(A)(iii), regarding the ability to opt out of disclosures of information among affiliates.
        (8) The licensee's policies and practices with respect to protecting the confidentiality and security of nonpublic personal information.
        (9) Any disclosure that the licensee makes under subsection (b).
    (b) If a licensee discloses nonpublic personal financial information as authorized under sections 13 and 14 of this chapter, the licensee is not required to list the exceptions in the initial or annual privacy notices required by sections 3 and 4 of this chapter. When describing the categories of parties to whom disclosure is made, the licensee shall state only that the licensee makes

disclosures to other affiliated or nonaffiliated third parties, as applicable, as permitted by law.
    (c) The following are examples of compliance with this section:
        (1) A licensee satisfies the requirement to categorize the nonpublic personal financial information that the licensee collects if the licensee categorizes the information according to the source of the information, as applicable information:
            (A) from the consumer;
            (B) about the consumer's transactions with the licensee or its affiliates;
            (C) about the consumer's transactions with nonaffiliated third parties; and
            (D) from a consumer reporting agency.
        (2) A licensee satisfies the requirement to categorize nonpublic personal financial information the licensee discloses if the licensee categorizes the information according to source, as described in subdivision (1), as applicable, and provides examples to illustrate the types of information in each category. The examples include the following:
            (A) Information from the consumer, including application information, such as assets and income and identifying information, such as name, address, and Social Security number.
            (B) Transaction information, such as information about balances, payment history, and parties to the transaction.
            (C) Information from consumer reports, such as a consumer's creditworthiness and credit history.
        (3) A licensee does not adequately categorize the information that the licensee discloses if the licensee uses only general terms, such as transaction information about the consumer. If a licensee reserves the right to disclose all of the nonpublic personal financial information about consumers that the licensee collects, the licensee may simply state that fact without describing the categories or examples of nonpublic personal information that the licensee discloses.
        (4) A licensee satisfies the requirement to categorize the affiliates and nonaffiliated third parties to which the licensee discloses nonpublic personal financial information about consumers if the licensee identifies the types of businesses in which they engage.
            (A) Types of businesses may be described by general terms only if the licensee uses a few illustrative examples of

significant lines of business.
            (B) A licensee also may categorize the affiliates and nonaffiliated third parties to which the licensee discloses nonpublic personal financial information about consumers using more detailed categories.
        (5) If a licensee discloses nonpublic personal financial information under the exception in section 12 of this chapter to a nonaffiliated third party to market products or services that the licensee offers alone or jointly with another financial institution, the licensee satisfies the disclosure requirement of subsection (a)(5) if the licensee:
            (A) lists the categories of nonpublic personal financial information that the licensee discloses, using the same categories and examples the licensee used to meet the requirements of subsection (a)(2), as applicable; and
            (B) states whether the third party is a:
                (i) service provider that performs marketing services on the licensee's behalf or on behalf of the licensee and another financial institution; or
                (ii) financial institution with whom the licensee has a joint marketing agreement.
        (6) If a licensee does not disclose, and does not reserve the right to disclose, nonpublic personal financial information about customers or former customers to affiliates or nonaffiliated third parties, except as authorized under sections 13 and 14 of this chapter, the licensee may state that fact, in addition to the information that the licensee shall provide under subsections (a)(1), (a)(8), (a)(9), and (b).
        (7) A licensee describes the licensee's policies and practices with respect to protecting the confidentiality and security of nonpublic personal financial information if the licensee does both of the following:
            (A) Describes in general terms who is authorized to have access to the information.
            (B) States whether the licensee has security practices and procedures in place to ensure the confidentiality of the information in accordance with the licensee's policy. The licensee is not required to describe technical information about the safeguards that the licensee uses.
    (d) A licensee may satisfy the initial notice requirements of sections 3(a)(2) and 6(d) of this chapter for a consumer who is not a customer by providing a short form initial notice at the same

time that the licensee delivers an opt out notice as required under section 6 of this chapter. A short form notice must:
        (1) be clear and conspicuous;
        (2) state that the licensee's privacy notice is available upon request; and
        (3) explain a reasonable means by which the consumer may obtain the notice.
    (e) A licensee shall deliver the licensee's short form initial notice as specified under section 8 of this chapter. The licensee is not required to deliver the licensee's privacy notice with the licensee's short form initial notice. The licensee may provide the consumer a reasonable means to obtain the licensee's privacy notice. If a consumer who receives the licensee's short form notice requests the licensee's privacy notice, the licensee shall deliver the licensee's privacy notice as specified under section 8 of this chapter.
    (f) A licensee provides a reasonable means by which a consumer may obtain a copy of the licensee's privacy notice if the licensee does either of the following:
        (1) Provides a toll free telephone number that the consumer may call to request the notice.
        (2) For a consumer who conducts business in person at the licensee's office, maintains copies of the notice on hand that the licensee provides to the consumer immediately upon request.
    (g) A licensee's notice may include the following:
        (1) Categories of nonpublic personal financial information that the licensee reserves the right to disclose in the future, but does not currently disclose.
        (2) Categories of affiliates or nonaffiliated third parties to whom the licensee reserves the right in the future to disclose, but to whom the license does not currently disclose, nonpublic financial information.
    Sec. 6. (a) If a licensee is required to provide an opt out notice under section 9(a) of this chapter, the licensee shall provide a clear and conspicuous notice to each of the licensee's consumers that accurately explains the right to opt out under section 9(a) of this chapter. The notice shall state all of the following:
        (1) The licensee discloses or reserves the right to disclose nonpublic personal financial information about its consumer to a nonaffiliated third party.
        (2) The consumer has the right to opt out of that disclosure.
        (3) A reasonable means by which the consumer may exercise

the opt out right.
    (b) The following are examples of compliance with subsection (a):
        (1) A licensee provides adequate notice that a consumer can opt out of the disclosure of nonpublic personal financial information to a nonaffiliated third party if the licensee does all of the following:
            (A) Identifies all of the categories of nonpublic personal financial information that the licensee discloses or reserves the right to disclose, and all of the categories of nonaffiliated third parties to which the licensee discloses the information, as described in section 5(a)(2) and 5(a)(3) of this chapter.
            (B) States that the consumer can opt out of the disclosure of the information.
            (C) Identifies the insurance products or services that the consumer obtains from the licensee, either singly or jointly, to which the opt out direction would apply.
        (2) A licensee provides a reasonable means to exercise an opt out right if the licensee does any of the following:
            (A) Designates check-off boxes in a prominent position on the relevant forms with the opt out notice.
            (B) Includes a reply form together with the opt out notice.
            (C) Provides an electronic means to opt out, such as a form that can be sent via electronic mail or a process at the licensee's Web site, if the consumer agrees to the electronic delivery of information.
            (D) Provides a toll free telephone number that consumers may call to opt out.
        (3) A licensee does not provide a reasonable means of opting out if the only means of opting out:
            (A) is for the consumer to write the consumer's own letter to exercise that opt out right; or
            (B) as described in any notice subsequent to the initial notice, is to use a check-off box that the licensee provided with the initial notice, but did not include with the subsequent notice.
        (4) A licensee may require each consumer to opt out through a specific means as long as the means is reasonable for the consumer.
    (c) A licensee may provide an opt out notice together with or on the same written or electronic form as the initial notice that the

licensee provides in under section 3 of this chapter.
    (d) If a licensee provides an opt out notice later than required for the initial notice under section 3 of this chapter, the licensee shall include a copy of the initial notice with the opt out notice in writing or, if the consumer agrees, electronically.
    (e) The following apply to joint relationships:
        (1) If two (2) or more consumers jointly obtain an insurance product or service from a licensee, the licensee may provide a single opt out notice. The licensee's opt out notice shall explain how the licensee will treat an opt out direction by a joint consumer.
        (2) Any of the joint consumers may exercise the right to opt out. The licensee may either:
            (A) treat an opt out direction by a joint consumer as applying to all of the associated joint consumers; or
            (B) permit each joint consumer to opt out separately.
        (3) If a licensee permits each joint consumer to opt out separately, the licensee shall permit one (1) of the joint consumers to opt out on behalf of all of the joint consumers.
        (4) A licensee may not require all joint consumers to opt out before the licensee implements any opt out direction.
    (f) A licensee shall comply with a consumer's opt out direction as soon as reasonably practicable after the direction is received by the licensee.
    (g) A consumer may exercise the right to opt out at any time.
    (h) A consumer's direction to opt out under this section is effective until the consumer revokes the direction in writing or, if the consumer agrees, electronically. When a consumer relationship terminates, the customer's opt out direction continues to apply to the nonpublic personal financial information that the licensee collected during or related to that relationship. If the individual subsequently establishes a new customer relationship with the licensee, the opt out direction that applied to the former relationship does not apply to the new relationship.
    (i) When a licensee is required to deliver an opt out notice under this section, the licensee shall deliver the notice as specified under section 8 of this chapter.
    Sec. 7. (a) Except as otherwise authorized in this chapter, a licensee shall not, directly or through an affiliate, disclose any nonpublic personal financial information about a consumer to a nonaffiliated third party other than as described in the initial notice that the licensee provided to the consumer under section 3

of this chapter unless the:
        (1) licensee has provided to the consumer a clear and conspicuous revised notice that accurately describes the licensee's policies and practices;
        (2) licensee has provided to the consumer a new opt out notice;
        (3) licensee has given the consumer a reasonable opportunity, before the licensee discloses the information to the nonaffiliated third party, to opt out of the disclosure; and
        (4) consumer does not opt out.
    (b) Except as otherwise permitted under sections 12 through 14 of this chapter, a licensee shall provide a revised notice before the licensee does any of the following:
        (1) Discloses a new category of nonpublic personal financial information to any nonaffiliated third party.
        (2) Discloses nonpublic personal financial information to a new category of nonaffiliated third party.
        (3) Discloses nonpublic personal financial information regarding a former customer to a nonaffiliated third party, if the former customer has not had the opportunity to exercise an opt out right regarding the disclosure.
    (c) A revised notice is not required if the licensee discloses nonpublic personal financial information to a new nonaffiliated third party that the licensee adequately described in the licensee's prior notice.
    (d) When a licensee is required to deliver a revised privacy notice under this section, the licensee shall deliver the notice as specified under section 8 of this chapter.
    Sec. 8. (a) A licensee shall provide notices required under this chapter so that each consumer can reasonably be expected to receive actual notice in writing or, if the consumer agrees, electronically.
    (b) A licensee may reasonably expect that a consumer will receive actual notice if the licensee does any of the following:
        (1) Hand delivers a printed copy of the notice to the consumer.
        (2) Mails a printed copy of the notice to the last known address of the consumer separately, or in a policy, billing, or other written communication.
        (3) For a consumer who conducts transactions electronically, posts the notice on the electronic site and requires the consumer to acknowledge receipt of the notice as a necessary step to obtaining a particular insurance product or service.


        (4) For an isolated transaction with a consumer, such as the licensee providing an insurance quote or selling the consumer travel insurance, posts the notice and requires the consumer to acknowledge receipt of the notice as a necessary step to obtaining the particular insurance product or service.
    (c) A licensee may not reasonably expect that a consumer will receive actual notice of the licensee's privacy policies and practices if the licensee does either of the following:
        (1) Only posts a sign in the licensee's office or generally publishes advertisements of the licensee's privacy policies and practices.
        (2) Sends the notice via electronic mail to a consumer who does not obtain an insurance product or service from the licensee electronically.
    (d) A licensee may reasonably expect that a customer will receive actual notice of the licensee's annual privacy notice if the customer:
        (1) uses the licensee's Web site to access insurance products and services electronically and agrees to receive notices at the Web site and the licensee posts the licensee's current privacy notice continuously in a clear and conspicuous manner on the Web site; or
        (2) has requested that the licensee refrain from sending any information regarding the customer relationship, and the licensee's current privacy notice remains available to the customer upon request.
    (e) A licensee may not provide any notice required under this chapter solely by orally explaining the notice, either in person or over the telephone.
    (f) For customers only, a licensee shall provide the initial notice required under section 3(a)(1) of this chapter, the annual notice required under section 4(a) of this chapter, and the revised notice required under section 7 of this chapter so that the customer can retain them or obtain them later in writing or, if the customer agrees, electronically. A licensee provides a privacy notice to the customer so that the customer can retain the notice or obtain the notice later if the licensee does any of the following:
        (1) Hand delivers a printed copy of the notice to the customer.
        (2) Mails a printed copy of the notice to the last known address of the customer.
        (3) Makes the licensee's current privacy notice available on a Web site (or a link to another Web site) for the customer who

obtains an insurance product or service electronically and agrees to receive the notice at the Web site.
    (g) A licensee may provide a joint notice from the licensee and one (1) or more of the licensee's affiliates or other financial institutions, as identified in the notice, as long as the notice is accurate with respect to the licensee and the other institutions. A licensee also may provide a notice on behalf of another financial institution.
    (h) If two (2) or more consumers jointly obtain an insurance product or service from a licensee, the licensee may satisfy the initial, annual, and revised notice requirements of sections 3(a), 4(a), and 7(a) of this chapter, by providing one (1) notice to the consumers jointly.
    Sec. 9. (a) Except as otherwise authorized in this chapter, a licensee may not, directly or through an affiliate, disclose any nonpublic personal financial information about a consumer to a nonaffiliated third party unless the:
        (1) licensee has provided to the consumer an initial notice as required under section 3 of this chapter;
        (2) licensee has provided to the consumer an opt out notice as required under section 6 of this chapter;
        (3) licensee has given the consumer a reasonable opportunity, before the licensee discloses the information to the nonaffiliated third party, to opt out of the disclosure; and
        (4) consumer does not opt out.
    (b) Opt out means a direction by the consumer that the licensee not disclose nonpublic personal financial information about the consumer to a nonaffiliated third party, other than as permitted under sections 12 through 14 of this chapter.
    (c) A licensee provides a consumer with a reasonable opportunity to opt out if the licensee does any of the following:
        (1) Mails the notices required under subsection (a) to the consumer and allows the consumer to opt out by mailing a form, calling a toll free telephone number or any other reasonable means within thirty (30) days from the date the licensee mailed the notices.
        (2) If a customer opens an on-line account with the licensee and agrees to receive the notices required under subsection (a) electronically, allows the customer to opt out by any reasonable means within thirty (30) days after the date that the customer acknowledges receipt of the notices in conjunction with opening the account.


        (3) For an isolated transaction, such as providing the consumer with an insurance quote, provides the consumer with a reasonable opportunity to opt out if the licensee provides the notices required under subsection (a) at the time of the transaction and requests that the consumer decide, as a necessary part of the transaction, whether to opt out before completing the transaction.
    (d) A licensee shall comply with this section, regardless of whether the licensee and the consumer have established a customer relationship. Unless a licensee complies with this section, the licensee may not, directly or through any affiliate, disclose any nonpublic personal financial information about a consumer that the licensee has collected, regardless of whether the licensee collected the information before or after receiving the direction to opt out from the consumer.
    (e) A licensee may allow a consumer to select certain nonpublic personal financial information or certain nonaffiliated third parties with respect to which the consumer wishes to opt out.
    Sec. 10. (a) If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution under an exception under section 13 or 14 of this chapter, the licensee's disclosure and use of the information is limited as follows:
        (1) The licensee may disclose the information to the affiliates of the financial institution from which the licensee received the information.
        (2) The licensee may disclose the information to the licensee's affiliates, but the licensee's affiliates may, in turn, disclose and use the information only to the extent that the licensee may disclose and use the information.
        (3) The licensee may disclose and use the information under an exception in section 13 or 14 of this chapter, in the ordinary course of business to carry out the activity covered by the exception under which the licensee received the information.
    (b) If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution other than under an exception under section 13 or 14 of this chapter, the licensee may disclose the information only to:
        (1) the affiliates of the financial institution from which the licensee received the information;
        (2) the licensee's affiliates, but the licensee's affiliates may, in turn, disclose the information only to the extent that the

licensee may disclose the information; and
        (3) any other person, if the disclosure would be lawful if made directly to that person by the financial institution from which the licensee received the information.
    (c) If a licensee discloses nonpublic personal financial information to a nonaffiliated third party under an exception under section 13 or 14 of this chapter, the third party may disclose and use the information only as follows:
        (1) The third party may disclose the information to the licensee's affiliates.
        (2) The third party may disclose the information to the third party's affiliates, but the third party's affiliates may, in turn, disclose and use the information only to the extent that the third party may disclose and use the information.
        (3) The third party may disclose and use the information under an exception under section 13 or 14 of this chapter in the ordinary course of business to carry out the activity covered by the exception under which the third party received the information.
    (d) If a licensee discloses nonpublic personal financial information to a nonaffiliated third party other than under an exception under section 13 or 14 of this chapter, the third party may disclose the information only to:
        (1) the licensee's affiliates;
        (2) the third party's affiliates, but the third party's affiliates, in turn, may disclose the information only to the extent the third party can disclose the information; and
        (3) any other person, if the disclosure would be lawful if the licensee made the disclosure directly to the person.
    Sec. 11. (a) A licensee shall not, directly or through an affiliate, disclose, other than to a consumer reporting agency, a policy number or similar form of access number or access code for a consumer's policy or transaction account to any nonaffiliated third party for use in telemarketing, direct mail marketing, or other marketing through electronic mail to the consumer.
    (b) Subsection (a) does not apply if a licensee discloses a policy number or similar form of access number or access code to any of the following:
        (1) The licensee's service provider solely in order to perform marketing for the licensee's own products or services, as long as the service provider is not authorized to directly initiate charges to the account.


        (2) A licensee who is a producer solely in order to perform marketing for the licensee's own products or services.
        (3) A participant in an affinity or similar program where the participants in the program are identified to the customer when the customer enters into the program.
    (c) A policy number, or similar form of access number or access code, does not include a number or code in an encrypted form, as long as the licensee does not provide the recipient with a means to decode the number or code.
    (d) For purposes of this section, a policy or transaction account is an account other than a deposit account or a credit card account. A policy or transaction account does not include an account to which third parties cannot initiate charges.
    Sec. 12. (a) The opt out requirements under sections 6 and 9 of this chapter do not apply when a licensee provides nonpublic personal financial information to a nonaffiliated third party to perform services for the licensee or functions on the licensee's behalf, if the licensee:
        (1) provides the initial notice as provided under section 3 of this chapter; and
        (2) enters into a contractual agreement with the third party that prohibits the third party from disclosing or using the information other than to carry out the purposes for which the licensee disclosed the information, including use under an exception under section 13 or 14 of this chapter in the ordinary course of business to carry out those purposes.
    (b) The services a nonaffiliated third party performs for a licensee under subsection (a) may include marketing of the licensee's own products or services or marketing of financial products or services offered under joint agreements between the licensee and one (1) or more financial institutions.
    (c) For purposes of this section, "joint agreement" means a written contract under which a licensee and one (1) or more financial institutions jointly offer, endorse, or sponsor a financial product or service.
    Sec. 13. (a) The requirements for initial notice under section 3(a)(2) of this chapter, the opt out under sections 6 and 9 of this chapter, and service providers and joint marketing under section 12 of this chapter do not apply if a licensee discloses nonpublic personal financial information as necessary to effect, administer, or enforce a transaction that a consumer requests or authorizes, or in connection with any of the following:
        (1) Servicing or processing an insurance product or service that the consumer requests or authorizes.
        (2) Maintaining or servicing the consumer's account with a licensee, or with another entity as part of a private label credit card program or other extension of credit on behalf of such entity.
        (3) A proposed or actual securitization, secondary market sale, including sales of servicing rights, or similar transaction related to a transaction of the consumer.
        (4) Reinsurance or stop loss or excess loss insurance.
    (b) As used in this section, "necessary to effect, administer, or enforce a transaction" means that the disclosure is required, or is:
        (1) one (1) of the lawful or appropriate methods, to enforce the licensee's rights or the rights of other persons engaged in carrying out the financial transaction or providing the product or service; or
        (2) a usual, appropriate, or acceptable method to:
            (A) carry out the transaction or the product or service business of which the transaction is a part, and record, service, or maintain the consumer's account in the ordinary course of providing the insurance product or service;
            (B) administer or service benefits or claims relating to the transaction or the product or service business of which the transaction is a part;
            (C) provide a confirmation, statement, or other record of the transaction, or information on the status or value of the insurance product or service to the consumer or the consumer's agent or broker;
            (D) accrue or recognize incentives or bonuses associated with the transaction that are provided by a licensee or any other party; and
            (E) underwrite insurance at the consumer's request or for any of the following purposes as they relate to a consumer's insurance:
                (i) Account administration.
                (ii) Reporting.
                (iii) Investigating or preventing fraud or material misrepresentation.
                (iv) Processing premium payments.
                (v) Processing insurance claims.
                (vi) Administering insurance benefits, including

utilization review activities.
                (vii) Participating in research projects.
                (viii) As otherwise required or specifically permitted by federal or state law.
                (ix) In connection with the authorization, settlement, billing, processing, clearing, transferring, reconciling, or collection of amounts charged, debited, or otherwise paid using a debit, credit, or other payment card, check, or account number, or by other payment means.
                (x) In connection with the transfer of receivables, accounts, or interests in the receivables or accounts.
                (xi) In connection with the audit of debit, credit, or other payment information.
    Sec. 14. (a) The requirements for initial notice to consumers under section 3(a)(2) of this chapter, the opt out under sections 6 and 9 of this chapter, and service providers and joint marketing under section 12 of this chapter do not apply when a licensee discloses nonpublic personal financial information as follows:
        (1) With the consent or at the direction of the consumer, provided that the consumer has not revoked the consent or direction;
        (2) In any of the following situations:
            (A) To protect the confidentiality or security of a licensee's records pertaining to the consumer, service, product, or transaction.
            (B) To protect against or prevent actual or potential fraud or unauthorized transactions.
            (C) For required institutional risk control or for resolving consumer disputes or inquiries.
            (D) To persons holding a legal or beneficial interest relating to the consumer.
            (E) To persons acting in a fiduciary or representative capacity on behalf of the consumer.
        (3) To provide information to:
            (A) insurance rate advisory organizations;
            (B) guaranty funds or agencies;
            (C) agencies that are rating a licensee;
            (D) persons who are assessing the licensee's compliance with industry standards; and
            (E) the licensee's attorneys, accountants, and auditors.
        (4) To the extent specifically permitted or required under other provisions of law and in accordance with the federal

Right to Privacy Act of 1978 (12 U.S.C. 3401 et seq.), to law enforcement agencies, including the Federal Reserve Board, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Office of Thrift Supervision, National Credit Union Administration, the Securities and Exchange Commission, the Secretary of the Treasury, with respect to 31 U.S.C. Chapter 53, Subchapter II (Records and Reports on Monetary Instruments and Transactions) and 12 U.S.C. Chapter 21 (Financial Recordkeeping), a state insurance authority, and the Federal Trade Commission, self-regulatory organization or for an investigation on a matter related to public safety.
        (5) To a consumer reporting agency in accordance with the federal Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) or from a consumer report reported by a consumer reporting agency.
        (6) In connection with a proposed or actual sale, merger, transfer, or exchange of all or a portion of a business or operating unit if the disclosure of nonpublic personal financial information concerns solely consumers of the business or unit.
        (7) To comply with or respond to any of the following:
            (A) Federal, state, or local laws, rules, and other applicable legal requirements.
            (B) Properly authorized civil, criminal, or regulatory investigation, or subpoena, or summons by federal, state, or local authorities.
            (C) Judicial process or governmental regulatory authorities having jurisdiction over a licensee for examination, compliance, or other purposes as authorized by law.
        (8) For purposes related to the replacement of a group benefit plan, a group health plan, a group welfare plan, or a workers' compensation plan.
    (b) A consumer may revoke consent by subsequently exercising the right to opt out of future disclosures of nonpublic personal information as permitted under section 6(g) of this chapter.
    Sec. 15. This chapter shall not be construed to modify, limit, or supersede the operation of the federal Fair Credit Reporting Act, 15 U.S.C. 1681 et seq., and no inference shall be drawn on the basis of the provisions of this chapter regarding whether information is transaction or experience information under Section 603 of the Fair Credit Reporting Act.


    Sec. 16. A licensee shall not unfairly discriminate against any consumer or customer because that consumer or customer has opted out from the disclosure of the consumer's or customer's nonpublic personal financial information.
    Sec. 17. A violation of this chapter is an unfair method of competition and an unfair and deceptive act and practice in the business of insurance subject to IC 27-4-1.

    SECTION 7. IC 27-4-1-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 4. The following are hereby defined as unfair methods of competition and unfair and deceptive acts and practices in the business of insurance:
        (1) Making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, or statement:
            (A) misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon;
            (B) making any false or misleading statement as to the dividends or share of surplus previously paid on similar policies;
            (C) making any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates;
            (D) using any name or title of any policy or class of policies misrepresenting the true nature thereof; or
            (E) making any misrepresentation to any policyholder insured in any company for the purpose of inducing or tending to induce such policyholder to lapse, forfeit, or surrender his insurance.
        (2) Making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio or television station, or in any other way, an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to any person in the conduct of his insurance business, which is untrue, deceptive, or misleading.
        (3) Making, publishing, disseminating, or circulating, directly or indirectly, or aiding, abetting, or encouraging the making, publishing, disseminating, or circulating of any oral or written

statement or any pamphlet, circular, article, or literature which is false, or maliciously critical of or derogatory to the financial condition of an insurer, and which is calculated to injure any person engaged in the business of insurance.
        (4) Entering into any agreement to commit, or individually or by a concerted action committing any act of boycott, coercion, or intimidation resulting or tending to result in unreasonable restraint of, or a monopoly in, the business of insurance.
        (5) Filing with any supervisory or other public official, or making, publishing, disseminating, circulating, or delivering to any person, or placing before the public, or causing directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false statement of financial condition of an insurer with intent to deceive. Making any false entry in any book, report, or statement of any insurer with intent to deceive any agent or examiner lawfully appointed to examine into its condition or into any of its affairs, or any public official to which such insurer is required by law to report, or which has authority by law to examine into its condition or into any of its affairs, or, with like intent, willfully omitting to make a true entry of any material fact pertaining to the business of such insurer in any book, report, or statement of such insurer.
        (6) Issuing or delivering or permitting agents, officers, or employees to issue or deliver, agency company stock or other capital stock, or benefit certificates or shares in any common law corporation, or securities or any special or advisory board contracts or other contracts of any kind promising returns and profits as an inducement to insurance.
        (7) Making or permitting any of the following:
            (A) Unfair discrimination between individuals of the same class and equal expectation of life in the rates or assessments charged for any contract of life insurance or of life annuity or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of such contract; however, in determining the class, consideration may be given to the nature of the risk, plan of insurance, the actual or expected expense of conducting the business, or any other relevant factor.
            (B) Unfair discrimination between individuals of the same class involving essentially the same hazards in the amount of premium, policy fees, assessments, or rates charged or made for any policy or contract of accident or health insurance or in

the benefits payable thereunder, or in any of the terms or conditions of such contract, or in any other manner whatever; however, in determining the class, consideration may be given to the nature of the risk, the plan of insurance, the actual or expected expense of conducting the business, or any other relevant factor.
            (C) Excessive or inadequate charges for premiums, policy fees, assessments, or rates, or making or permitting any unfair discrimination between persons of the same class involving essentially the same hazards, in the amount of premiums, policy fees, assessments, or rates charged or made for:
                (i) policies or contracts of reinsurance or joint reinsurance, or abstract and title insurance;
                (ii) policies or contracts of insurance against loss or damage to aircraft, or against liability arising out of the ownership, maintenance, or use of any aircraft, or of vessels or craft, their cargoes, marine builders' risks, marine protection and indemnity, or other risks commonly insured under marine, as distinguished from inland marine, insurance; or
                (iii) policies or contracts of any other kind or kinds of insurance whatsoever.
        However, nothing contained in clause (C) shall be construed to apply to any of the kinds of insurance referred to in clauses (A) and (B) nor to reinsurance in relation to such kinds of insurance. Nothing in clause (A), (B), or (C) shall be construed as making or permitting any excessive, inadequate, or unfairly discriminatory charge or rate or any charge or rate determined by the department or commissioner to meet the requirements of any other insurance rate regulatory law of this state.
        (8) Except as otherwise expressly provided by law, knowingly permitting or offering to make or making any contract or policy of insurance of any kind or kinds whatsoever, including but not in limitation, life annuities, or agreement as to such contract or policy other than as plainly expressed in such contract or policy issued thereon, or paying or allowing, or giving or offering to pay, allow, or give, directly or indirectly, as inducement to such insurance, or annuity, any rebate of premiums payable on the contract, or any special favor or advantage in the dividends, savings, or other benefits thereon, or any valuable consideration or inducement whatever not specified in the contract or policy; or giving, or selling, or purchasing or offering to give, sell, or purchase as inducement to such insurance or annuity or in

connection therewith, any stocks, bonds, or other securities of any insurance company or other corporation, association, limited liability company, or partnership, or any dividends, savings, or profits accrued thereon, or anything of value whatsoever not specified in the contract. Nothing in this subdivision and subdivision (7) shall be construed as including within the definition of discrimination or rebates any of the following practices:
            (A) Paying bonuses to policyholders or otherwise abating their premiums in whole or in part out of surplus accumulated from nonparticipating insurance, so long as any such bonuses or abatement of premiums are fair and equitable to policyholders and for the best interests of the company and its policyholders.
            (B) In the case of life insurance policies issued on the industrial debit plan, making allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer in an amount which fairly represents the saving in collection expense.
            (C) Readjustment of the rate of premium for a group insurance policy based on the loss or expense experience thereunder, at the end of the first year or of any subsequent year of insurance thereunder, which may be made retroactive only for such policy year.
            (D) Paying by an insurer or agent thereof duly licensed as such under the laws of this state of money, commission, or brokerage, or giving or allowing by an insurer or such licensed agent thereof anything of value, for or on account of the solicitation or negotiation of policies or other contracts of any kind or kinds, to a broker, agent, or solicitor duly licensed under the laws of this state, but such broker, agent, or solicitor receiving such consideration shall not pay, give, or allow credit for such consideration as received in whole or in part, directly or indirectly, to the insured by way of rebate.
        (9) Requiring, as a condition precedent to loaning money upon the security of a mortgage upon real property, that the owner of the property to whom the money is to be loaned negotiate any policy of insurance covering such real property through a particular insurance agent or broker or brokers. However, this subdivision shall not prevent the exercise by any lender of its or his right to approve or disapprove of the insurance company selected by the borrower to underwrite the insurance.
        (10) Entering into any contract, combination in the form of a trust

or otherwise, or conspiracy in restraint of commerce in the business of insurance.
        (11) Monopolizing or attempting to monopolize or combining or conspiring with any other person or persons to monopolize any part of commerce in the business of insurance. However, participation as a member, director, or officer in the activities of any nonprofit organization of agents or other workers in the insurance business shall not be interpreted, in itself, to constitute a combination in restraint of trade or as combining to create a monopoly as provided in this subdivision and subdivision (10). The enumeration in this chapter of specific unfair methods of competition and unfair or deceptive acts and practices in the business of insurance is not exclusive or restrictive or intended to limit the powers of the commissioner or department or of any court of review under section 8 of this chapter.
        (12) Requiring as a condition precedent to the sale of real or personal property under any contract of sale, conditional sales contract, or other similar instrument or upon the security of a chattel mortgage, that the buyer of such property negotiate any policy of insurance covering such property through a particular insurance company, agent, or broker or brokers. However, this subdivision shall not prevent the exercise by any seller of such property or the one making a loan thereon, of his, her, or its right to approve or disapprove of the insurance company selected by the buyer to underwrite the insurance.
        (13) Issuing, offering, or participating in a plan to issue or offer, any policy or certificate of insurance of any kind or character as an inducement to the purchase of any property, real, personal, or mixed, or services of any kind, where a charge to the insured is not made for and on account of such policy or certificate of insurance. However, this subdivision shall not apply to any of the following:
            (A) Insurance issued to credit unions or members of credit unions in connection with the purchase of shares in such credit unions.
            (B) Insurance employed as a means of guaranteeing the performance of goods and designed to benefit the purchasers or users of such goods.
            (C) Title insurance.
            (D) Insurance written in connection with an indebtedness and intended as a means of repaying such indebtedness in the event of the death or disability of the insured.


            (E) Insurance provided by or through motorists service clubs or associations.
            (F) Insurance that is provided to the purchaser or holder of an air transportation ticket and that:
                (i) insures against death or nonfatal injury that occurs during the flight to which the ticket relates;
                (ii) insures against personal injury or property damage that occurs during travel to or from the airport in a common carrier immediately before or after the flight;
                (iii) insures against baggage loss during the flight to which the ticket relates; or
                (iv) insures against a flight cancellation to which the ticket relates.
        (14) Refusing, because of the for-profit status of a hospital or medical facility, to make payments otherwise required to be made under a contract or policy of insurance for charges incurred by an insured in such a for-profit hospital or other for-profit medical facility licensed by the state department of health.
        (15) Refusing to insure an individual, refusing to continue to issue insurance to an individual, limiting the amount, extent, or kind of coverage available to an individual, or charging an individual a different rate for the same coverage, solely because of that individual's blindness or partial blindness, except where the refusal, limitation, or rate differential is based on sound actuarial principles or is related to actual or reasonably anticipated experience.
        (16) Committing or performing, with such frequency as to indicate a general practice, unfair claim settlement practices (as defined in section 4.5 of this chapter).
        (17) Between policy renewal dates, unilaterally canceling an individual's coverage under an individual or group health insurance policy solely because of the individual's medical or physical condition.
        (18) Using a policy form or rider that would permit a cancellation of coverage as described in subdivision (17).
        (19) Violating IC 27-1-22-25 or IC 27-1-22-26 concerning motor vehicle insurance rates.
        (20) Violating IC 27-8-21-2 concerning advertisements referring to interest rate guarantees.
        (21) Violating IC 27-8-24.3 concerning insurance and health plan coverage for victims of abuse.
        (22) Violating IC 27-1-15.5-3(h).
        (23) Violating IC 27-8-26 concerning genetic screening or testing.
         (24) Violating IC 27-7-3-21 concerning title insurance premiums in multistate transactions.
    SECTION 8. IC 27-7-3-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 18. The provisions of this chapter, shall except section 21 of this chapter, do not apply to any insurance company organized or desiring to organize under and pursuant to IC 27-1 nor to any person, firm, partnership, corporation, limited liability company, association, or company whose business is the making of abstracts of title to real estate and attaching their certificate thereto and not engaging in the business of making title insurance, nor to any person, firm, partnership, corporation, limited liability company, or association acting as an authorized agent for a duly qualified title insurance company.
    SECTION 9. IC 27-7-3-21 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 21. (a) This section applies to the issuance of title insurance in Indiana in a real estate transaction in which title insurance is being issued in at least one (1) other state in which title insurance premiums are computed based on rates filed with a governmental entity.
    (b) The title insurance premium rate charged by the title insurance company providing title insurance in Indiana may not be less than the average of the title insurance rates charged for title insurance in the other participating states that have filed rates.

    SECTION 10. IC 27-8-8-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]: Sec. 2. (a) As used in this chapter:
    "Account" means one of the three (3) accounts created under section 3 of this chapter.
    "Association" means the Indiana life and health insurance guaranty association created under section 3 of this chapter.
    "Commissioner" refers to the commissioner of insurance.
    "Contractual obligation" means an obligation under covered policies.
    "Covered policy" means any policy or contract that is of a type described in section 1(a) of this chapter and is not excluded by section 1(b) of this chapter.
    "Impaired insurer" means a member insurer deemed by the commissioner to be potentially unable to fulfill its contractual obligations.
    "Insolvent insurer" means a member insurer who becomes insolvent

and is placed under a final order of liquidation, rehabilitation, or conservation by a court.
    "Member insurer" means any person that is licensed or holds a certificate of authority to transact in Indiana any kind of insurance for which coverage is provided under this chapter. The term includes any insurer whose license or certificate of authority to transact such insurance in Indiana may have been suspended, revoked, not renewed, or voluntarily withdrawn but does not include the following:
        (1) A medical and hospital service organization.
        (2) A health maintenance organization under IC 27-13.
        (3) A fraternal benefit society under IC 27-11.
        (4) The Indiana Comprehensive Health Insurance Association or any other A mandatory state pooling plan or arrangement.
        (5) An assessment company or any other person that operates an assessment plan (as defined in IC 27-1-2-3(y)).
        (6) An interinsurance exchange authorized by IC 27-6-6.
        (7) A prepaid limited health service organization or a limited service health maintenance organization under IC 27-13-34.
        (8) A special service health care delivery plan under IC 27-8-7.
        (9) (8) A farmer's mutual insurance company under IC 27-5.
        (10) (9) Any person similar to any person described in subdivisions (1) through (9). (8).
    "Premiums" means direct gross insurance premiums and annuity considerations received on covered policies, less return premiums and considerations, and dividends paid or credited to policyholders on direct business. It does not include premiums and considerations on contracts between insurers and reinsurers. For purposes of assessments made under section 6 of this chapter, "premiums" for covered policies shall not be reduced on account of any limitation on benefits for which the association is obligated under section 5(l) of this chapter. However, "premiums" for assessment purposes does not include that portion of any premium exceeding five million dollars ($5,000,000) for any one (1) unallocated annuity contract.
    "Person" means any natural person, corporation, limited liability company, partnership, association, voluntary organization, trust, governmental organization or entity, or other business organization or entity.
    "Resident" means any person who resides in Indiana at the time the association becomes obligated for an impaired or insolvent insurer. Persons other than natural persons are considered to reside in the state where their principal place of business is located.
    "Unallocated annuity contract" means an annuity contract or group

annuity certificate that is not issued to and held by a natural person (excluding a natural person acting as a trustee), except to the extent of any annuity benefits guaranteed to a natural person by an insurer under the contract or certificate. For the purposes of section 1.5 of this chapter, an unallocated annuity contract shall not be considered a group covered policy.
    (b) For purposes of this chapter, a policy, contract, or certificate is considered to be held by the person identified on the policy, contract, or certificate as the holder or owner of the policy, contract, or certificate.
    SECTION 11. IC 27-8-15-28 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]: Sec. 28. (a) As used in this section, "health insurance plan" means coverage provided under any of the following:
        (1) A hospital or medical expense incurred policy or certificate.
        (2) A hospital or medical service plan contract.
        (3) A health maintenance organization subscriber contract.
        (4) Medicare or Medicaid.
        (5) An employer based health insurance arrangement.
        (6) An individual health insurance policy.
        (7) A policy issued by the Indiana comprehensive health insurance association under IC 27-8-10.
        (8) (7) An employee welfare benefit plan (as defined in 29 U.S.C. 1002) that is self-funded.
        (9) (8) A conversion policy issued under section 31 or 31.1 of this chapter.
    (b) Except as provided in section 29 of this chapter, a small employer insurer shall waive the exclusion period described in section 27 of this chapter applicable to a preexisting condition or the limitation period with respect to a particular service in a health insurance plan for the time an eligible employee or a dependent of an eligible employee was previously covered by a health insurance plan if the following conditions are met:
        (1) The eligible employee or a dependent of the eligible employee was previously covered by a health insurance plan that provided benefits with respect to the particular service.
        (2) Coverage under the health insurance plan was continuous to a date not more than sixty-three (63) days before the effective date of enrollment by:
            (A) the eligible employee; or
            (B) a dependent of the eligible employee.
    (c) In determining whether an eligible employee or a dependent of

the eligible employee meets the requirements of subsection (b)(2), a waiting period imposed by a small employer insurer or small employer before new coverage may become effective must be excluded from the calculation.
    (d) This section does not preclude the application of any waiting period applicable to all new enrollees under a plan.
    SECTION 12. IC 34-30-12-1, AS AMENDED BY P.L.1-1999, SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2004]: Sec. 1. (a) This section does not apply to services rendered by a health care provider (as defined in IC 34-18-2-14 or IC 27-12-2-14 before its repeal) to a patient in a health care facility (as defined in IC 27-8-10-1 IC 2-5-23-2.5).
    (b) Except as provided in subsection (c), a person who comes upon the scene of an emergency or accident or is summoned to the scene of an emergency or accident and, in good faith, gratuitously renders emergency care at the scene of the emergency or accident is immune from civil liability for any personal injury that results from:
        (1) any act or omission by the person in rendering the emergency care; or
        (2) any act or failure to act to provide or arrange for further medical treatment or care for the injured person;
except for acts or omissions amounting to gross negligence or willful or wanton misconduct.
    (c) This subsection applies to a person to whom IC 16-31-6.5 applies. A person who gratuitously renders emergency care involving the use of an automatic external defibrillator is immune from liability for any act or omission not amounting to gross negligence or willful or wanton misconduct if the person fulfills the requirements set forth in IC 16-31-6.5.
    (d) This subsection applies to an individual, business, or organization to which IC 16-31-6.5 applies. An individual, business, or organization that allows a person who is an expected user to use an automatic external defibrillator of the individual, business, or organization to in good faith gratuitously render emergency care is immune from civil liability for any damages resulting from an act or omission not amounting to gross negligence or willful or wanton misconduct by the user or for acquiring or providing the automatic external defibrillator to the user for the purpose of rendering the emergency care if the individual, business, or organization and the user fulfill the requirements set forth in IC 16-31-6.5.
    SECTION 13. [EFFECTIVE JULY 1, 2001] (a) As used in this SECTION, "waiver" means a Section 1115 demonstration waiver

under the federal Social Security Act (42 U.S.C. 1315).
    (b) The office of Medicaid policy and planning may apply to the United States Department of Health and Human Services for approval of a waiver to provide coverage to individuals with severe chronic diseases.
    (c) If a provision under this SECTION differs from the requirements of a waiver, the office of Medicaid policy and planning shall submit a waiver request in a manner that complies with the requirements of the waiver. However, after the waiver is approved, the office shall apply not more than one hundred twenty (120) days after the waiver is approved for an amendment to the approved waiver that contains the provisions of this SECTION that were not included in the approved waiver.
    (d) The office of Medicaid policy and planning may not implement a waiver until the office files an affidavit with the governor attesting that a federal waiver applied for under this SECTION is in effect. The office shall file the affidavit under this subsection not more than five (5) days after the office is notified that a waiver is approved.
    (e) If the office or Medicaid policy and planning receives a waiver under this SECTION from the United States Department of Health and Human services and the governor receives the affidavit filed under subsection (d), the office shall implement the waiver not more than sixty (60) days after the governor receives the affidavit.
    (f) The office of Medicaid policy and planning may adopt rules under IC 4-22-2 that are necessary to implement this SECTION.
    (g) This SECTION expires July 1, 2004.

    SECTION 14. [EFFECTIVE JULY 1, 2001] (a) As used in this SECTION, "commission" refers to the health finance commission established under IC 2-5-23.
    (b) As used in this SECTION, "association" refers to the Indiana comprehensive health insurance association established under IC 27-8-10-2.1.
    (c) As used in this SECTION, "association policy" has the meaning set forth in IC 27-8-10-1.
    (d) The health finance advisory committee created under IC 2-5-23-6 shall review the following issues and make recommendations to the commission not later than May 1, 2002:
        (1) The current program used by the association to provide coverage for health care services provided to individuals who are covered under an association policy.


        (2) Potential sources of funding coverage of association policies and administrative expenses.
        (3) Current criteria for determining eligibility and methodology for establishing premiums.
        (4) A plan for administration of the association program by an existing state agency with review by the commission or another legislative body not less than every two (2) years.
        (5) Potential transfer of individuals who are covered under an association policy to private insurance coverage.
    (e) The commission shall make recommendations concerning the issues specified in subsection (d) to the legislative council not later than November 1, 2002.
    (f) This SECTION expires December 1, 2002.

        SECTION 15. [EFFECTIVE UPON PASSAGE]: (a) A licensee shall, not later than July 1, 2001, provide an initial notice, as required under IC 27-2-20-3, as added by this act, of this chapter, to consumers who are the licensee's customers on July 1, 2001.
    (b) Until July 1, 2002, a contract entered into before July 1, 2000, by a licensee with a nonaffiliated third party to perform services for the licensee or functions on behalf of the licensee is considered to be in compliance with the requirements of IC 27-2-20-12(a), as added by this act, regardless of whether the contract includes a requirement that the third party maintain the confidentiality of nonpublic personal information.
    (c) This SECTION expires July 1, 2005.

    SECTION 16. [EFFECTIVE JANUARY 1, 2002] (a) After December 31, 2001:
        (1) any reference in the Indiana Code to an insurance agent shall be treated as a reference to an insurance producer (as defined in IC 27-1-15.6-2 (7), as added by this act);
        (2) any reference in the Indiana Code to a surplus lines insurance agent shall be treated as a reference to a surplus lines producer (as defined in IC 27-1-15.6-2 (17), as added by this act); and
        (3) any reference in the Indiana Code to a limited insurance representative shall be treated as a reference to a limited lines producer (as defined in IC 27-1-15.6-2 (12), as added by this act).
    (b) This SECTION expires June 30, 2005.

    SECTION 17. THE FOLLOWING ARE REPEALED [EFFECTIVE JANUARY 1, 2004]: IC 27-8-10; IC 27-13-16-4; IC 34-30-2-116.