HB 1545-1_ Filed 04/26/2003, 21:48
CONFERENCE COMMITTEE REPORT
DIGEST FOR EHB 1545
Citations Affected:
IC 6-8-11-12
; IC 27-1;
IC 27-7-6-6
;
IC 27-8-16-1
;
IC 27-8-16-1.5
;
IC 35-43-5-1
;
IC 27-1-25-11
;
IC 27-1-25-12.
Synopsis: Insurance matters. Conference committee report for EHB 1545. Amends the law
concerning insurance administrators and provides for reciprocity in the licensure of insurance
administrators. Provides bonding requirements for resident surplus lines producer's licenses.
Provides that notice of nonrenewal of a commercial property and casualty insurance policy or
an automobile insurance policy is not required if the insured is transferred to an affiliate of the
insurer in certain circumstances. Specifies that any costs above the current limit on charges for
publication of certain insurer statements must be borne by the newspaper publishing the
statement. Makes conforming amendments and a technical change. (This conference committee
report: Removes a repealer of a provision requiring a foreign or an alien insurance
company to file an annual condensed statement of the insurer's assets and liabilities and
providing for publication. Specifies that any costs above the current limit on charges for
publication must be borne by the newspaper publishing the statement. Specifies that an
insurance administrator means a person who directly or indirectly and on behalf of an
insurer performs certain functions. Removes language requiring an insurance
administrator to maintain a surety bond specifically. Specifies that an insurance
administrator's financial information and business plan are confidential. Specifies that
certain penalties for failing to pay a judgement against an insurance administrator may not
apply until all appeals have been exhausted. Corrects a conflict by making conforming
amendments.)
Effective: July 1, 2003.
CONFERENCE COMMITTEE REPORT
MR. PRESIDENT:
Your Conference Committee appointed to confer with a like committee from the House
upon Engrossed Senate Amendments to Engrossed House Bill No. 1545 respectfully reports
that said two committees have conferred and agreed as follows to wit:
that the House recede from its dissent from all Senate amendments and that
the House now concur in all Senate amendments to the bill and that the bill
be further amended as follows:
Delete everything after the enacting clause and insert the following:
SOURCE: IC 6-8-11-12; (03)CC154504.1.1. -->
SECTION 1.
IC 6-8-11-12
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 12. The following may be an
account administrator under this chapter:
(1) A federal or state chartered:
(A) bank;
(B) savings association;
(C) savings bank; or
(D) credit union.
(2) A trust company authorized to act as a fiduciary.
(3) An insurance company or
a health maintenance organization
authorized to do business in Indiana under IC 27.
(4) A broker-dealer,
an agent, or
an investment advisor registered
under
IC 23-2-1.
(5) A person
(A) that
holds a certificate of registration is licensed
as an
insurance administrator
or
(B) for whom the insurance commissioner has waived the
requirement of a certificate of registration as an insurance
administrator;
under
IC 27-1-25-11.
IC 27-1-25.
(6) An employee welfare benefit plan that is governed by the
federal Employee Retirement Income Security Act, 29 U.S.C. 1001
et seq.
(7) An employer that participates in the medical care savings
account program.
SOURCE: IC 27-1-15.8-4; (03)CC154504.1.2. -->
SECTION 2.
IC 27-1-15.8-4
, AS ADDED BY P.L.132-2001,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 4. (a) During the period that a
resident surplus
lines producer's license is in effect, the licensee shall keep in force a
bond in the penal sum of not less than twenty thousand dollars
($20,000) with an authorized corporate surety approved by the
commissioner. The aggregate liability of the surety for any and all
claims on a bond does not exceed the penal sum of the bond. A bond
may not be terminated unless written notice of termination is provided
by the surety to the licensee and the commissioner not less than thirty
(30) days before termination. Upon termination of a
resident license
for which a bond was in effect, the commissioner shall notify the surety
of the termination within ten (10) business days. All surety protection
under this section inures to the benefit of the state of Indiana to assure
the payment of all premium taxes.
(b) A
resident surplus lines producer shall, at the time of an initial
filing under subsection (c), file with the commissioner proof of the
bond in the amount required under subsection (a). In each subsequent
calendar year, the
resident surplus lines producer shall file proof that
the bond remains in effect. A subsequent filing under this subsection
shall be made in conjunction with the annual filing required under
subsection (e).
(c) In addition to all other charges, fees, and taxes that may be
imposed by law, a surplus lines producer licensed under this chapter
shall, on or before February 1 and August 1 of each year, collect from
the insured and remit to the department for the use and benefit of the
state of Indiana an amount equal to two and one-half percent (2 1/2%)
of all gross premiums upon all policies and contracts procured by the
surplus lines producer under the provisions of this section during the
preceding six (6) month period ending December 31 and June 30,
respectively. The declarations page of a policy referred to in this
subsection must itemize the amounts of all charges for taxes, fees, and
premiums.
(d) A licensed surplus lines producer shall execute and file with the
department of insurance on or before the twentieth day of each month
an affidavit that specifies all transactions, policies, and contracts
procured during the preceding calendar month, including:
(1) the description and location of the insured property or risk and
the name of the insured;
(2) the gross premiums charged in the policy or contract;
(3) the name and home office address of the insurer whose policy
or contract is issued, and the kind of insurance effected; and
(4) a statement that:
(A) the licensee, after diligent effort, was unable to procure from
any insurer authorized to transact the particular class of
insurance business in Indiana the full amount of insurance
required to protect the insured; and
(B) the insurance placed under this chapter is not placed for the
purpose of procuring it at a premium rate lower than would be
accepted by an insurer authorized and licensed to transact
insurance business in Indiana.
(e) A licensed surplus lines producer shall file with the department,
not later than March 31 of each year, the financial statement, dated as
of December 31 of the preceding year, of each unauthorized insurer
from whom the surplus lines producer has procured a policy or
contract. The insurance commissioner may, in the commissioner's
discretion, after reviewing the financial statement of the unauthorized
insurer, order the surplus lines producer to cancel an unauthorized
insurer's policies and contracts if the commissioner is of the opinion
that the financial statement or condition of the unauthorized insurer
does not warrant continuance of the risk.
(f) A licensed surplus lines producer shall keep a separate account of
all business transacted under this section. The account may be
inspected at any time by the commissioner or the commissioner's
deputy or examiner.
(g) An insurer that issues a policy or contract to insure a risk under
this section is considered to have appointed the commissioner as the
insurer's attorney upon whom process may be served in Indiana in any
suit, action, or proceeding based upon or arising out of the policy or
contract.
(h) The commissioner may revoke or refuse to renew a surplus lines
producer's license for failure to comply with this section.
(i) A surplus lines producer licensed under this chapter may accept
and place policies or contracts authorized under this section for an
insurance producer duly licensed in Indiana, and may compensate the
insurance producer even though the insurance producer is not licensed
under this chapter.
(j) If a surplus lines producer does not remit an amount due to the
department within the time prescribed in subsection (c), the
commissioner shall assess the surplus lines producer a penalty of ten
percent (10%) of the amount due. The commissioner shall assess a
further penalty of an additional one percent (1%) of the amount due for
each month or portion of a month that any amount due remains unpaid
after the first month. Penalties assessed under this subsection are
payable by the surplus lines producer and are not collectible from an
insured.
SOURCE: IC 27-1-18-5; (03)CC154504.1.3. -->
SECTION 3.
IC 27-1-18-5
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 5. At the time of filing its annual
statement, an alien or foreign company shall submit, on a form
prescribed by the department, a condensed statement of its assets and
liabilities as of December 31 of the preceding year. If the department,
on examination of such statement, determines from information
available to it that it is true and correct, it shall cause such statement to
be published in a newspaper in this state selected by the department. In
the event the department determines that the statement submitted by a
company is inaccurate or incorrect, it shall, after giving the company
notice of the proposed changes and an opportunity to be heard, certify
the corrected statement and proceed with its publication as above
provided. The company shall bear the expenses of the publication, but
in no event shall an amount exceeding forty dollars ($40) be charged
for such publication. Any cost of publication that exceeds forty
dollars ($40) must be borne by the newspaper publishing the
statement.
SOURCE: IC 27-1-25-1; (03)CC154504.1.4. -->
SECTION 4.
IC 27-1-25-1
, AS AMENDED BY P.L.132-2001,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 1.
As used in this chapter:
(a) "Administrator", except as provided in section 7.5 of this chapter,
means a person who
directly or indirectly and on behalf of an
insurer underwrites, collects charges or premiums from, or
who
adjusts or settles claims on residents of Indiana in connection with life,
annuity, or health coverage
or annuities, whether offered or provided
for by an insurer.
or a self-funded plan. The term "administrator" does
not include the following persons:
(1) An employer
for its or a wholly owned direct or indirect
subsidiary of an employer acting on behalf of the employees
or
for the employees of:
a
(A) the employer;
(B) the subsidiary; or
(C) an affiliated corporation of the employer.
(2) A union
acting for its members.
(3) An insurer.
including:
(A) an insurer operating a health maintenance organization or a
limited service health maintenance organization; and
(B) the sales representative of an insurer operating a health
maintenance organization or a limited service health
maintenance organization when that sales representative is
licensed in Indiana and when it is engaged in the performance of
its duties as the sales representative.
(4)
A life or health An insurance
agent producer:
(A) that is licensed under
IC 27-1-15.6
;
(B) that has:
(i) a life; or
(ii) an accident and health or sickness;
qualification under
IC 27-1-15.6-7
; and
(C) whose activities are limited exclusively to the sale of
insurance.
(5) A creditor
acting for its debtors regarding insurance covering
a debt between them.
(6) A trust established under 29 U.S.C. 186 and the trustees,
agents, and employees acting pursuant to that trust.
(7) A trust that is exempt from taxation under Section 501(a) of the
Internal Revenue Code and:
(A) the trustees and employees acting pursuant to that trust; or
(B) a custodian and the agents and employees of the custodian
acting pursuant to a custodian account that meets the
requirements of Section 401(f) of the Internal Revenue Code.
(8) A financial institution that is subject to supervision or
examination by federal or state banking authorities
to the extent
that the financial institution collects and remits premiums to
an insurance producer or an authorized insurer in connection
with a loan payment.
(9) A credit card issuing company that:
(A) advances for; and
(B) collects from, when a credit card holder authorizes the
collection;
credit card holders of the credit card issuing company,
insurance premiums or charges. from its credit cardholders as long
as that company does not adjust or settle claims.
(10) An individual who A person that adjusts or settles claims in
the normal course of his the person's practice or employment as
an attorney at law and who that does not collect charges or
premiums in connection with life, annuity, or health insurance
coverage. or annuities.
(11) A health maintenance organization that has a certificate of
authority issued under IC 27-13.
(12) A limited service health maintenance organization that has a
certificate of authority issued under IC 27-13.
(13) A mortgage lender to the extent that the mortgage lender
collects and remits premiums to an insurance producer or an
authorized insurer in connection with a loan payment.
(14) A person that:
(A) is licensed as a managing general agent as required
under
IC 27-1-33
; and
(B) acts exclusively within the scope of activities provided for
under the license referred to in clause (A).
(15) A person that:
(A) directly or indirectly underwrites, collects charges or
premiums from, or adjusts or settles claims on residents of
Indiana in connection with life, annuity, or health coverage
provided by an insurer;
(B) is affiliated with the insurer; and
(C) performs the duties specified in clause (A) only according
to a contract between the person and the insurer for the
direct and assumed life, annuity, or health coverage provided
by the insurer.
(b) "Certificate of registration" refers to the certificate required by
section 11 of this chapter.
(b) "Affiliate" means an entity or a person that:
(1) directly or indirectly through an intermediary controls or
is controlled by; or
(2) is under common control with;
a specified entity or person.
(c) "Church plan" has the meaning set forth in
IC 27-8-10-1.
(d) "Commissioner" refers to the insurance commissioner of
insurance appointed under
IC 27-1-1-2.
(d) (e) "Control" means the direct or indirect possession of the
power to direct or cause the direction of the management and
policies of a person, whether:
(1) through ownership of voting securities;
(2) by contract other than a commercial contract for goods or
nonmanagement services; or
(3) otherwise;
unless the power is the result of an official position with the person
or a corporate office held by the person. Control is presumed to
exist if a person directly or indirectly owns, controls, holds with the
power to vote, or holds proxies representing not less than ten
percent (10%) of the voting securities of another person.
(f) "Covered individual" means an individual who is covered
under a benefit program provided by an insurer.
(g) "Financial institution" means a bank, savings association, credit
union, or any other institution regulated under IC 28 or federal law.
(e) (h) "GAAP" refers to consistently applied United States
generally accepted accounting principles.
(i) "Governmental plan" has the meaning set forth in
IC 27-8-10-1.
(j) "Home state" means the District of Columbia or any state or
territory of the United States in which an administrator is
incorporated or maintains the administrator's principal place of
business. If the place in which the administrator is incorporated or
maintains the administrator's principal place of business is not
governed by a law that is substantially similar to this chapter, the
administrator's home state is another state:
(1) in which the administrator conducts the business of the
administrator; and
(2) that the administrator declares is the administrator's home
state.
(k) "Insurance producer" has the meaning set forth in
IC 27-1-15.6-2.
(l) "Insurer" means:
(1) a person who obtains a certificate of authority under:
(A)
IC 27-1-3-20
;
(B)
IC 27-13-3
; or
(C)
IC 27-13-34
; or
(2) an employer that provides life, health, or annuity coverage
in Indiana under a governmental plan or a church plan.
(m) "NAIC" refers to the National Association of Insurance
Commissioners.
(n) "Negotiate" has the meaning set forth in
IC 27-1-15.6-2.
(o) "Nonresident administrator" means a person that applies for
or holds a license under section 12.2 of this chapter.
(f) (p) "Person" means an individual, a corporation, a partnership, a
limited liability company, or an unincorporated association.
(g) "Self-funded plan" means a plan for providing benefits for life,
health, or annuity coverage by a person who is not an insurer. has the
meaning set forth in
IC 27-1-15.6-2.
(q) "Sell" has the meaning set forth in
IC 27-1-15.6-2.
(r) "Solicit" has the meaning set forth in
IC 27-1-15.6-2.
(s) "Underwrite" refers to the:
(1) acceptance of a group application or an individual
application for coverage of an individual in accordance with
the written rules of the insurer; or
(2) planning and coordination of a benefit program provided
by an insurer.
(t) "Uniform application" means the current version of the NAIC
uniform application for third party administrators.
SOURCE: IC 27-1-25-2; (03)CC154504.1.5. -->
SECTION 5.
IC 27-1-25-2
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 2. (a) An administrator may act
only if there is a written agreement between the administrator and an
insurer. employer, employee group, or any other group using the
services of an administrator. This agreement must conform to the
requirements of sections 4 through 9 of this chapter, which apply to the
functions performed by the administrator.
(b) An agreement between an administrator and an insurer employer,
employee group, or any other group must be retained by both parties as
part of their official records for a period of not less than five (5) years
after the termination of the agreement.
(c) When a policy is issued to a trustee, a copy of the trust agreement
and all amendments to it must be:
(1) furnished by the administrator to the insurer employer,
employee group, or any other group with which it holds a contract
the administrator has a written agreement; and
(2) retained as part of the official records of the administrator for
a period of not less than five (5) years after the termination of the
trust.
(d) The written agreement required under subsection (a) must:
(1) include a statement of functions that the administrator will
perform on behalf of the insurer;
(2) specify the lines, classes, or types of coverage that the
administrator is authorized to administer on behalf of the
insurer; and
(3) contain provisions concerning the standard of underwriting
required by the insurer. employer, employee group, or any other
group that is a party to the agreement.
(e) The commissioner may require any written agreement executed
by an administrator and an insurer employer, employee group, or any
other group to be filed with the department of insurance at the time the
administrator applies for a certificate of registration, as required by
section 11 of license under this chapter. The commissioner may
require any written agreement executed subsequent to the original issue
of the certificate of registration license to the administrator to be filed
with the department at the time the administrator is applying for
renewal of the certificate of registration. license.
(f) An administrator or insurer may, with written notice,
terminate a written agreement for cause as provided in the written
agreement. The insurer may suspend the underwriting authority
of the administrator during the pendency of a dispute regarding
the cause for termination of the written agreement. The insurer
shall fulfill lawful obligations with respect to coverage affected by
the written agreement, regardless of a dispute described in this
subsection.
SOURCE: IC 27-1-25-3; (03)CC154504.1.6. -->
SECTION 6.
IC 27-1-25-3
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 3. (a) If an insurer utilizes the
services of an administrator:
(1) the payment to the administrator of premiums or charges for
insurance coverage paid by or on behalf of the insured covered
individual are presumed considered to have been received by the
insurer when paid to the administrator; and
(2) the payment of claims or return premiums paid by the insurer
to the administrator are not presumed considered to have been
paid to the insured covered individual or claimant until the
payment is received by the insured covered individual or
claimant.
(b) This section does not limit the rights of an insurer against an
administrator resulting from the failure of the administrator to make
payments to the insurer, insured parties, covered individuals, or
claimants.
SOURCE: IC 27-1-25-4; (03)CC154504.1.7. -->
SECTION 7.
IC 27-1-25-4
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 4. (a)
For the duration of the
agreement and for five (5) years after the termination of an agreement,
An administrator:
or successor administrator:
(1) shall maintain at its principal administrative office books and
records of all transactions between
it the administrator and
insurers
employers, employee group, or any other group using the
services of an administrator for at least five (5) years after the
creation of the books and records; or
(2) may transfer the books and records of transactions between
the administrator and an insurer with which the administrator
has entered into a written agreement under section 2 of this
chapter to a new administrator if:
(A) the agreement between the administrator and the insurer
is canceled; and
(B) a written agreement for a transfer of the books and
records is made between the administrator and the insurer.
If the books and records are transferred to a new administrator
under subdivision (2), the new administrator shall acknowledge in
writing that the new administrator is responsible for retaining the
books and records of the prior administrator as required under
subdivision (1). The books and records must be maintained in
accordance with generally accepted standards of insurance
bookkeeping. record keeping.
(b) The commissioner is entitled to inspect all books and records of
the administrator for the purpose of examinations and audits. Trade
secrets contained within those books and records, including the identity
and addresses of policyholders and certificate holders,
financial
information concerning the administrator, and the business plan
of the administrator, are to remain confidential. However, the
commissioner may use that confidential information in proceedings
instituted against the administrator.
(c) Any insurer, employer, employee group, or any other group using
the services of the administrator is entitled to inspect the books and
records of the administrator to the extent necessary for it to fulfill all of
its contractual obligations to insured or covered persons. The right of
the insurer, employer, employee group, or other group using the
services of an administrator under this subsection is subject to any
restrictions contained in the written agreement between such party and
administrator.
(c) An insurer is the owner of records that:
(1) are generated by an administrator with which the insurer
has entered into a written agreement under section 2 of this
chapter; and
(2) pertain to the insurer.
However, the administrator retains the right to continuing access
to books and records necessary to fulfill the administrator's
contractual obligations to covered individuals, claimants, and the
insurer.
(d) An administrator that is licensed under section 11.1 of this
chapter shall make available for inspection by the commissioner
copies of written agreements with insurers.
(e) An administrator that is licensed under section 11.1 of this
chapter shall:
(1) produce the administrator's accounts, records, and files for
examination; and
(2) make the administrator's officers available to provide
information concerning the affairs of the administrator;
whenever reasonably required by the commissioner.
(f) An administrator that is licensed under section 11.1 of this
chapter shall immediately notify the commissioner of a material
change in:
(1) the ownership or control of the administrator; or
(2) another fact or circumstance that affects the
administrator's qualification for a license.
The commissioner, upon receiving notice under this subsection,
shall report the change to an electronic data base maintained by
the NAIC or an affiliate or a subsidiary of the NAIC.
(g) An administrator that is licensed under section 11.1 of this
chapter and that administers a governmental plan or a church plan
shall maintain a bond:
(1) for the use and benefit of:
(A) the commissioner; and
(B) the insurance regulator of any state in which the
administrator is authorized to conduct business; and
(2) that covers an individual and a person that has remitted
premiums, insurance, charges, or other money to the
administrator in the course of the administrator's business;
in an amount equal to the greater of one hundred thousand dollars
($100,000) or ten percent (10%) of the total of funds administered
in connection with governmental plans or church plans in Indiana
and all other states in which the administrator is authorized to
conduct business.
SOURCE: IC 27-1-25-5; (03)CC154504.1.8. -->
SECTION 8.
IC 27-1-25-5
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 5. An administrator may use
advertising relating to the business underwritten by an insurer only to
the extent that the advertising has been approved in writing by that
insurer before the advertising is used.
SOURCE: IC 27-1-25-5.5; (03)CC154504.1.9. -->
SECTION 9.
IC 27-1-25-5.5
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]: Sec. 5.5. (a) If an insurer uses the services of an
administrator, the insurer is responsible for:
(1) determining the:
(A) benefits;
(B) premium rates;
(C) underwriting criteria; and
(D) claims payment procedures;
that apply to the coverage; and
(2) securing reinsurance.
(b) An insurer shall provide to an administrator, with the written
agreement required under section 2 of this chapter:
(1) the rules that the administrator must follow in
administering the coverage, as determined under subsection
(a); and
(2) the responsibilities of the administrator as to administering
the coverage.
(c) An insurer that uses the services of an administrator has sole
responsibility for the competent administration of benefit
programs provided by the insurer.
(d) If an administrator administers benefits for more than one
hundred (100) covered individuals on behalf of an insurer, the
insurer shall, not less than semiannually, review the operations of
the administrator. At least one (1) of the semiannual reviews must
be an onsite audit of the operations of the administrator.
SOURCE: IC 27-1-25-6; (03)CC154504.1.10. -->
SECTION 10.
IC 27-1-25-6
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 6. (a) An administrator
is a fiduciary in collecting or returning premiums or charges for the
party insurer with whom it has a written agreement for administrative
services.
(b) Funds collected by the administrator shall be immediately
remitted to the person entitled to the funds or deposited in a fiduciary
bank account, which shall be established and maintained by the
administrator in a federally insured or state insured financial
institution.
(c) The administrator shall maintain records clearly showing the
deposits and withdrawals from the fiduciary bank account for each
party insurer with whom it has a written agreement for administrative
services. The administrator shall furnish to the party: insurer:
(1) upon his the insurer's request, copies of the required records;
and
(2) at intervals specified in the written agreement, a periodic
accounting of transactions performed by the administrator
pertaining to the business underwritten by the insurer.
(d) Subject to the written agreement required by section 2 of this
chapter, withdrawals from the fiduciary bank account shall only be
made for the following:
(1) Remittance to an insurer entitled to the funds.
(2) Deposit in an account maintained in the name of the party
insurer with whom the administrator has a written agreement.
(3) Transfer to and deposit in a claims paying account, with claims
to be paid as required under section 7 of this chapter.
(4) Payment to a group policyholder for remittance to the insurer
entitled to the funds.
(5) Payment to the administrator for its commission, fees, or
charges.
(6) Remittance of return premiums to the person entitled to the
funds.
(e) An administrator may not pay any claim with money withdrawn
from a fiduciary account established under subsection (b) in which
premiums or charges are deposited.
SOURCE: IC 27-1-25-7; (03)CC154504.1.11. -->
SECTION 11.
IC 27-1-25-7
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. All claims paid by
an administrator from funds collected on behalf of an insurer shall only
be paid on drafts or checks authorized by the insurer. All claims paid
by the administrator from funds collected on behalf of an employer, an
employee group, or any other group shall only be paid on drafts
authorized by that party.
SOURCE: IC 27-1-25-8; (03)CC154504.1.12. -->
SECTION 12.
IC 27-1-25-8
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. When an
administrator adjusts or settles claims under a policy the administrator's
compensation for that policy may not be contingent on claim
experience. However, the compensation for an administrator may be
based on premiums or charges collected or on the number of claims
paid or processed. (a) An administrator may not enter into an
agreement or understanding with an insurer if the effect of the
agreement or understanding is to make the amount of a:
(1) commission;
(2) fee; or
(3) charge;
that is payable to the administrator contingent on savings effected
in the adjustment, settlement, and payment of losses covered by the
insurer's obligations.
(b) This section does not prevent an administrator from receiving
performance based compensation for providing hospital auditing
services or other auditing services.
SOURCE: IC 27-1-25-9; (03)CC154504.1.13. -->
SECTION 13.
IC 27-1-25-9
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. Policies, certificates,
booklets, termination notices, or other written communications
delivered by an insurer to an administrator for delivery to its
policyholders covered individuals shall be delivered by the
administrator promptly after receipt of instructions from the insurer to
do so.
SOURCE: IC 27-1-25-10; (03)CC154504.1.14. -->
SECTION 14.
IC 27-1-25-10
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 10. (a) An
administrator having a written agreement with an insurer shall provide
written notice, which must first be approved by the insurer, to the
insured covered persons advising them of the relationship among the
administrator, the policyholder covered person, and the insurer.
(b) An administrator having a written agreement with an employer,
an employee group, or any other group shall provide written notice,
which must first be approved by that party, to the insured persons
advising them of the relationship among the administrator, the
policyholder, and the employer, the employee group, or any other
group.
(c) (b) When the administrator collects premiums or charges, the
administrator shall state separately the amount of any premium or
charge for insurance coverage specified by the insurer to the person
paying the premium or charge. Additional charges may not be made
for a service to the extent that the charge for the service has been
paid by the insurer.
(c) The administrator shall disclose to the insurer:
(1) charges;
(2) fees; and
(3) commissions;
received by the administrator in connection with the provision of
administrative services for the insurer, including fees or
commissions paid by insurers that provide reinsurance.
SOURCE: IC 27-1-25-11.1; (03)CC154504.1.15. -->
SECTION 15.
IC 27-1-25-11.1
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 11.1. (a) If the home state of a
person is Indiana, the person shall:
(1) apply to act as an administrator in Indiana upon the
uniform application; and
(2) receive a license from the commissioner;
before performing the function of an administrator in Indiana.
(b) The uniform application must include or be accompanied by
the following:
(1) Basic organizational documents of the applicant, including:
(A) articles of incorporation;
(B) articles of association;
(C) partnership agreement;
(D) trade name certificate;
(E) trust agreement;
(F) shareholder agreement;
(G) other applicable documents; and
(H) amendments to the documents specified in clauses (A)
through (G).
(2) Bylaws, rules, regulations, or other documents that regulate
the internal affairs of the applicant.
(3) The NAIC biographical affidavits for individuals who are
responsible for the conduct of affairs of the applicant,
including:
(A) members of the applicant's:
(i) board of directors;
(ii) board of trustees;
(iii) executive committee; or
(iv) other governing board or committee;
(B) principal officers, if the applicant is a corporation;
(C) partners or members, if the applicant is:
(i) a partnership;
(ii) an association; or
(iii) a limited liability company;
(D) shareholders or members that hold, directly or
indirectly, at least ten percent (10%) of the:
(i) voting stock;
(ii) voting securities; or
(iii) voting interest;
of the applicant; and
(E) any other person who exercises control or influence over
the affairs of the applicant.
(4) Financial information reflecting a positive net worth,
including:
(A) audited annual financial statements prepared by an
independent certified public accountant for the two (2) most
recent fiscal years; or
(B) if the applicant has been in business for less than two (2)
fiscal years, financial statements or reports that are:
(i) prepared in accordance with GAAP; and
(ii) certified by an officer of the applicant;
for any completed fiscal years and for any month during the
current fiscal year for which financial statements or reports
have been completed.
If an audited financial statement or report required under
clause (A) or (B) is prepared on a consolidated basis, the
statement or report must include a columnar consolidating or
combining worksheet that includes the amounts shown on the
consolidated audited financial statement or report, separately
reported on the worksheet for each entity included on the
statement or report, and an explanation of consolidating and
eliminating entries.
(5) Information determined by the commissioner to be
necessary for a review of the current financial condition of the
applicant.
(6) A description of the business plan of the applicant,
including:
(A) information on staffing levels and activities proposed in
Indiana and nationwide; and
(B) details concerning the applicant's ability to provide a
sufficient number of experienced and qualified personnel for:
(i) claims processing;
(ii) record keeping; and
(iii) underwriting.
(7) Any other information required by the commissioner.
(c) An administrator that applies for licensure under this section
shall make copies of written agreements with insurers available for
inspection by the commissioner.
(d) An administrator that applies for licensure under this section
shall:
(1) produce the administrator's accounts, records, and files for
examination; and
(2) make the administrator's officers available to provide
information concerning the affairs of the administrator;
whenever reasonably required by the commissioner.
(e) The commissioner may refuse to issue a license under this
section if the commissioner determines that:
(1) the administrator or an individual who is responsible for
the conduct of the affairs of the administrator:
(A) is not:
(i) competent;
(ii) trustworthy;
(iii) financially responsible; or
(iv) of good personal and business reputation; or
(B) has had an:
(i) insurance certificate of authority or insurance license;
or
(ii) administrator certificate of authority or administrator
license;
denied or revoked for cause by any jurisdiction;
(2) the financial information provided under subsection (b)(4)
does not reflect that the applicant has a positive net worth; or
(3) any of the grounds set forth in section 12.4 of this chapter
exists with respect to the administrator.
(f) An administrator that applies for a license under this section
shall immediately notify the commissioner of a material change in:
(1) the ownership or control of the administrator; or
(2) another fact or circumstance that affects the
administrator's qualification for a license.
The commissioner, upon receiving notice under this subsection,
shall report the change to an electronic data base maintained by
the NAIC or an affiliate or a subsidiary of the NAIC.
(g) An administrator that applies for a license under this section
and will administer a governmental plan or a church plan shall
obtain a bond as required under section 4(g) of this chapter.
(h) A license that is issued under this section is valid until:
(1) the license is:
(A) surrendered; or
(B) suspended or revoked by the commissioner; or
(2) the administrator:
(A) ceases to do business in Indiana; or
(B) is not in compliance with this chapter.
SOURCE: IC 27-1-25-12.2; (03)CC154504.1.16. -->
SECTION 16.
IC 27-1-25-12.2
IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]:
Sec. 12.2. (a) An administrator that:
(1) performs the duties of an administrator in Indiana; and
(2) does not hold a license issued under section 11.1 of this
chapter;
shall obtain a nonresident administrator license under this section
by filing a uniform application with the commissioner.
(b) Unless the commissioner verifies the nonresident
administrator's home state license status through an electronic
data base maintained by the NAIC or by an affiliate or a subsidiary
of the NAIC, a uniform application filed under subsection (a) must
be accompanied by a letter of certification from the nonresident
administrator's home state, verifying that the nonresident
administrator holds a resident administrator license in the home
state.
(c) A nonresident administrator is not eligible for a nonresident
administrator license under this section unless the nonresident
administrator is licensed as a resident administrator in a home
state that has a law or regulation that is substantially similar to
this chapter.
(d) Except as provided in subsections (b) and (h), the
commissioner shall issue a nonresident administrator license to a
nonresident administrator that makes a filing under subsections (a)
and (b) upon receipt of the filing.
(e) Unless a nonresident administrator is notified by the
commissioner that the commissioner is able to verify the
nonresident administrator's home state licensure through an
electronic data base described in subsection (b), the nonresident
administrator shall:
(1) on September 15 of each year, file a statement with the
commissioner affirming that the nonresident administrator
maintains a current license in the nonresident administrator's
home state; and
(2) pay a filing fee as required by the commissioner.
(f) A nonresident administrator that applies for licensure under
this section shall:
(1) produce the accounts of the nonresident administrator;
(2) produce the records and files of the nonresident
administrator for examination; and
(3) make the officers of the nonresident administrator available
to provide information with respect to the affairs of the
nonresident administrator;
when reasonably required by the commissioner.
(g) A nonresident administrator is not required to hold a
nonresident administrator license in Indiana if the nonresident
administrator's function in Indiana is limited to the administration
of life, health, or annuity coverage for a total of not more than one
hundred (100) Indiana residents.
(h) The commissioner may refuse to issue or may delay the
issuance of a nonresident administrator license if the commissioner
determines that:
(1) due to events occurring; or
(2) based on information obtained;
after the nonresident administrator's home state's licensure of the
nonresident administrator, the nonresident administrator is unable
to comply with this chapter or grounds exist for the home state's
revocation or suspension of the nonresident administrator's home
state license.
(i) If the commissioner makes a determination described in
subsection (h), the commissioner:
(1) shall provide written notice of the determination to the
insurance regulator of the nonresident administrator's home
state; and
(2) may delay the issuance of a nonresident administrator
license to the nonresident administrator until the commissioner
determines that the nonresident administrator is able to
comply with this chapter and that grounds do not exist for the
home state's revocation or suspension of the nonresident
administrator's home state license.
SOURCE: IC 27-1-25-12.3; (03)CC154504.1.17. -->
SECTION 17.
IC 27-1-25-12.3
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 12.3. (a) An administrator that is
licensed under section 11.1 of this chapter shall, not later than July
1 of each year unless the commissioner grants an extension of time
for good cause, file a report for the previous calendar year that
complies with the following:
(1) The report must contain financial information reflecting a
positive net worth prepared in accordance with section
11.1(b)(4) of this chapter.
(2) The report must be in the form and contain matters
prescribed by the commissioner.
(3) The report must be verified by at least two (2) officers of
the administrator.
(4) The report must include the complete names and addresses
of insurers with which the administrator had a written
agreement during the preceding fiscal year.
(5) The report must be accompanied by a filing fee determined
by the commissioner.
(b) The commissioner shall review a report filed under
subsection (a) not later than September 1 of the year in which the
report is filed. Upon completion of the review, the commissioner
shall:
(1) issue a certification to the administrator:
(A) indicating that:
(i) the financial statement reflects a positive net worth; and
(ii) the administrator is currently licensed and in good
standing; or
(B) noting deficiencies found in the report; or
(2) update an electronic data base that is maintained by the
NAIC or by an affiliate or a subsidiary of the NAIC:
(A) indicating that the administrator is solvent and in
compliance with this chapter; or
(B) noting deficiencies found in the report.
SOURCE: IC 27-1-25-12.4; (03)CC154504.1.18. -->
SECTION 18.
IC 27-1-25-12.4
IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]:
Sec. 12.4. (a) The commissioner shall
deny, suspend, or revoke a license issued under this chapter if the
commissioner determines that the administrator:
(1) is in unsound financial condition;
(2) engages in methods or practices in the conduct of the
administrator's business so as to render the administrator's
continued transaction of business in Indiana hazardous or
injurious to covered persons or the public; or
(3) fails to pay a judgment rendered against the administrator
in Indiana not more than sixty (60) days after the judgment is
final and all appeals have been exhausted.
(b) The commissioner may deny, suspend, or revoke a license
issued under this chapter if the commissioner determines that:
(1) the administrator has violated a lawful rule or order of the
commissioner or a provision of the insurance laws of Indiana;
(2) the administrator refuses to be examined or to produce the
administrator's accounts, records, and files for examination;
(3) an individual who is responsible for the conduct of the
affairs of the administrator, including:
(A) a member of the administrator's:
(i) board of directors;
(ii) board of trustees;
(iii) executive committee; or
(iv) other governing board or committee;
(B) a principal officer, if the administrator is a corporation;
(C) a partner or member, if the administrator is:
(i) a partnership;
(ii) an association; or
(iii) a limited liability company;
(D) a shareholder or member that holds, directly or
indirectly, ten percent (10%) or more of the:
(i) voting stock;
(ii) voting securities; or
(iii) voting interest;
of the administrator; or
(E) any other person who exercises control or influence over
the affairs of the administrator;
refuses to provide information with respect to the
administrator's business or to perform another legal obligation
with respect to an examination when required by the
commissioner;
(4) the administrator, without just cause:
(A) refuses to pay proper claims or to perform services
arising under a written agreement;
(B) causes a covered individual to accept less than the
amount due to the covered individual; or
(C) causes a covered individual to employ an attorney or
bring suit against the administrator to secure full payment
or settlement of a proper claim;
(5) the administrator fails to meet a qualification for which
issuance of the administrator's license could have been refused
if the failure had existed and been known by the commissioner
at the time of license issuance;
(6) an individual who is responsible for the conduct of the
affairs of the administrator, including:
(A) a member of the administrator's:
(i) board of directors;
(ii) board of trustees;
(iii) executive committee; or
(iv) other governing board or committee;
(B) a principal officer, if the administrator is a corporation;
(C) a partner or member, if the administrator is:
(i) a partnership;
(ii) an association; or
(iii) a limited liability company;
(D) a shareholder or member that holds, directly or
indirectly, ten percent (10%) or more of the:
(i) voting stock;
(ii) voting securities; or
(iii) voting interest;
of the administrator; or
(E) any other person who exercises control or influence over
the affairs of the administrator;
is convicted of or enters a plea of guilty or nolo contendere to
a felony, without regard to whether adjudication is withheld;
(7) the administrator's license has been suspended or revoked
in another state; or
(8) the administrator fails to timely file the:
(A) report required under section 12.3 of this chapter; or
(B) statement and pay the filing fee required under section
12.2(e) of this chapter.
(c) The commissioner may, in the commissioner's discretion and
without advance notice or hearing, immediately suspend the license
of an administrator if the commissioner finds one (1) or more of
the following:
(1) The administrator is insolvent or financially impaired.
(2) A proceeding for receivership, conservatorship,
rehabilitation, or other delinquency proceeding regarding the
administrator has been commenced in any state.
(3) The financial condition or business practices of the
administrator pose an imminent threat to the public health,
safety, or welfare of residents of Indiana.
(d) If the commissioner determines that cause exists for the
suspension or revocation of a license issued under this chapter, the
commissioner may, instead of suspension or revocation, impose a
civil penalty not to exceed twenty-five thousand dollars ($25,000)
per act or violation upon the administrator. A civil penalty
imposed under this subsection may be enforced in the same
manner as a civil judgment. Civil penalties collected under this
subsection shall be deposited in the state general fund.
SOURCE: IC 27-1-25-13; (03)CC154504.1.19. -->
SECTION 19.
IC 27-1-25-13
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 13. (a) Except as
provided by section 4(b) of this chapter, and except that all provisions
of the written agreement between the administrator and an insurer
employer, employee group, or any other group using the services of an
administrator shall be treated by the commissioner as confidential and
shall not be open to any member of the public for inspection or
copying, all documents submitted to the commissioner under this
chapter are public documents:
(1) when filed by the commissioner; or
(2) thirty (30) days after their receipt by the department.
(b) Any financial information concerning an administrator submitted
by an administrator to the commissioner must remain confidential and
is not open to any member of the public for inspection or copying.
However, the commissioner may use the financial information in a
proceeding under section 11(b) 12.4 of this chapter.
SOURCE: IC 27-1-25-15; (03)CC154504.1.20. -->
SECTION 20.
IC 27-1-25-15
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 15. (a) An
administrator acting without the certificate of registration required
under section 11 of a license issued under this chapter commits a
Class C infraction.
(b) The commissioner shall notify the prosecuting attorney or the
attorney general of Indiana of violations under subsection (a).
SOURCE: IC 27-1-25-16; (03)CC154504.1.21. -->
SECTION 21.
IC 27-1-25-16
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]: Sec. 16. (a) A presumption of control arising under section
1(e) of this chapter may be rebutted by a showing made in the
manner provided under
IC 27-1-23-3
(k) that control does not exist
in fact.
(b) In the absence of a presumption that control exists in fact, the
commissioner may determine that control exists in fact after:
(1) providing notice and an opportunity to be heard under
IC 4-21.5 to all interested parties; and
(2) making specific findings of fact to support the
determination.
SOURCE: IC 27-1-25.1; (03)CC154504.1.22. -->
SECTION 22.
IC 27-1-25.1
IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]:
Chapter 25.1. Certain Insurer Responsibilities
Sec. 1. As used in this chapter, "affiliate" has the meaning set
forth in
IC 27-1-25-1
(b).
Sec. 2. As used in this chapter, "insurer" has the meaning set
forth in
IC 27-1-25-1
(l).
Sec. 3. As used in this chapter, "person" refers to a person
described in
IC 27-1-25-1
(a)(15).
Sec. 4. The insurer with which a person is affiliated is responsible
for:
(1) the acts of the person; and
(2) providing the person's books and records to the
commissioner.
SOURCE: IC 27-1-31-3; (03)CC154504.1.23. -->
SECTION 23.
IC 27-1-31-3
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3.
(a) If an insurer
refuses to renew a policy of insurance written by the insurer, the insurer
shall provide written notice of nonrenewal to the insured:
(1) at least forty-five (45) days before the expiration date of the
policy, if the coverage provided is for one (1) year, or less; or
(2) at least forty-five (45) days before the anniversary date of the
policy, if the coverage provided is for more than one (1) year.
(b) A notice of nonrenewal is not required if:
(1) the insured is transferred from an insurer to an affiliate of
the insurer for future coverage as a result of a merger, an
acquisition, or a company restructuring;
(2) the transfer results in the same or broader coverage; and
(3) the insured approves the transfer.
SOURCE: IC 27-7-6-6; (03)CC154504.1.24. -->
SECTION 24.
IC 27-7-6-6
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 6. No insurer shall fail to renew a
policy unless it shall mail or deliver to the named insured, at the
address shown in the policy, at least twenty (20) days' advance notice
of its intention not to renew. In the event such policy was procured by
an agent duly licensed by the state of Indiana notice of intent not to
renew shall be mailed or delivered to such agent at least ten (10) days
prior to such mailing or delivery to the named insured unless such
notice of intent is or has been waived in writing by such agent.
This section shall not apply: (a) if the insurer has manifested its
willingness to renew; nor (b) in case of nonpayment of premium:
Provided, That, notwithstanding the failure of an insurer to comply
with this section, the policy shall terminate on the effective date of any
other insurance policy with respect to any automobile designated in
both policies. A notice of intention not to renew is not required if:
(1) the insured is transferred from an insurer to an affiliate of
the insurer for future coverage as a result of a merger, an
acquisition, or a company restructuring;
(2) the transfer results in the same or broader coverage; and
(3) the insured approves the transfer.
Renewal of a policy shall not constitute a waiver or estoppel with
respect to grounds for cancellation which existed before the effective
date of such renewal.
SOURCE: IC 27-8-16-1; (03)CC154504.1.25. -->
SECTION 25.
IC 27-8-16-1
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. (a) As used in this
chapter, "claim review agent" means any entity performing medical
claims review on behalf of an insurance company, a health
maintenance organization, or another benefit program providing
payment, reimbursement, or indemnification for health care costs to an
enrollee.
(b) The term does not include the following:
(1) An insurance company authorized under
IC 27-1-3
or
IC 27-1-17
to do business in Indiana or the company's affiliated
companies.
(2) An entity acting on behalf of the federal or state government.
However, an agent described in this subdivision who performs
medical claims review for a person other than the federal or state
government is a claim review agent who is subject to the
requirements of this chapter.
(3) A health maintenance organization or limited service health
maintenance organization that holds a certificate of authority to
operate under IC 27-13.
(4) An insurance administrator that holds a certificate of
registration issued is licensed under
IC 27-1-25.
(5) An individual qualified and acting as an expert witness under
the Indiana Rules of Trial Procedure.
SOURCE: IC 27-8-16-1.5; (03)CC154504.1.26. -->
SECTION 26.
IC 27-8-16-1.5
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1.5. (a) As used in this
chapter, "claim review consultant" means a person who:
(1) makes a recommendation or provides consultation to:
(A) an entity engaged in performing medical claims review; or
(B) an insurance company, a health maintenance organization,
or another benefit program providing payment, reimbursement,
or indemnification for health care costs to an enrollee;
concerning the appropriateness of a health care service or the
amount charged for a health care service delivered to an enrollee
in Indiana; and
(2) is not an employee of an entity referred to in subdivision (1)(A)
or (1)(B).
(b) Making a recommendation or providing consultation concerning
a health care service does not render a person a claim review consultant
under this section if the recommendation or consultation concerns:
(1) coverage provided; or
(2) medical services rendered;
under IC 22.
(c) The term "claim review consultant" does not include the
following:
(1) An insurance company authorized under IC 27 to do business
in Indiana.
(2) An entity acting on behalf of the federal or state government.
However, an agent described in this subdivision who performs
medical claims review for a person other than the federal or state
government is a claim review agent who is subject to the
requirements of this chapter.
(3) A health maintenance organization or limited service health
maintenance organization that holds a certificate of authority to
operate under IC 27-13.
(4) An insurance administrator who holds a certificate of
registration issued that is licensed under
IC 27-1-25.
(5) An individual qualified and acting as an expert witness under
the Indiana Rules of Trial Procedure.
(6) A person who engages in the prospective, concurrent, or
retrospective utilization review of health care services.
(7) A person who engages in the identification of alternative,
optional medical care that:
(A) requires the approval of the enrollee or covered individual;
and
(B) does not affect coverage or benefits if rejected by the
enrollee or covered individual.
(8) An individual who is a licensed health care provider who
makes a recommendation or provides consultation concerning the
appropriateness of health care service. However, this exception
does not apply if the individual:
(A) makes any recommendations or provides consultation
concerning the amount charged for a health care service
delivered in Indiana;
(B) makes any recommendations or provides consultation
concerning the appropriateness of hospital services provided by
a hospital licensed under IC 12-25 or IC 16-21;
(C) is employed by or under contract with an entity that is
required to be registered under this chapter; or
(D) has received more than five thousand dollars ($5,000) in
compensation during the present calendar year for providing
consultation services concerning the appropriateness of health
care services delivered to enrollees in Indiana.
(9) A claim review agent under section 1 of this chapter.
SOURCE: IC 35-43-5-1; (03)CC154504.1.27. -->
SECTION 27.
IC 35-43-5-1
, AS AMENDED BY SEA 320-2003,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 1. (a) The definitions set forth in this section apply
throughout this chapter.
(b) "Claim statement" means an insurance policy, a document, or a
statement made in support of or in opposition to a claim for payment
or other benefit under an insurance policy, or other evidence of
expense, injury, or loss. The term includes statements made orally, in
writing, or as a computer generated document, including the following:
(1) An account.
(2) A bill for services.
(3) A bill of lading.
(4) A claim.
(5) A diagnosis.
(6) An estimate of property damages.
(7) A hospital record.
(8) An invoice.
(9) A notice.
(10) A proof of loss.
(11) A receipt for payment.
(12) A physician's records.
(13) A prescription.
(14) A statement.
(15) A test result.
(16) X-rays.
(c) "Coin machine" means a coin box, vending machine, or other
mechanical or electronic device or receptacle designed:
(1) to receive a coin, bill, or token made for that purpose; and
(2) in return for the insertion or deposit of a coin, bill, or token
automatically:
(A) to offer, provide, or assist in providing; or
(B) to permit the acquisition of;
some property.
(d) "Credit card" means an instrument or device (whether known as
a credit card or charge plate, or by any other name) issued by an issuer
for use by or on behalf of the credit card holder in obtaining property.
(e) "Credit card holder" means the person to whom or for whose
benefit the credit card is issued by an issuer.
(f) "Customer" means a person who receives or has contracted for a
utility service.
(g) "Entrusted" means held in a fiduciary capacity or placed in charge
of a person engaged in the business of transporting, storing, lending on,
or otherwise holding property of others.
(h) "Identifying information" means information that identifies an
individual, including an individual's:
(1) name, address, date of birth, place of employment, employer
identification number, mother's maiden name, Social Security
number, or any identification number issued by a governmental
entity;
(2) unique biometric data, including the individual's fingerprint,
voice print, or retina or iris image;
(3) unique electronic identification number, address, or routing
code;
(4) telecommunication identifying information; or
(5) telecommunication access device, including a card, a plate, a
code, a telephone number, an account number, a personal
identification number, an electronic serial number, a mobile
identification number, or another telecommunications service or
device or means of account access that may be used to:
(A) obtain money, goods, services, or any other thing of value;
or
(B) initiate a transfer of funds.
(i) "Insurance policy" includes the following:
(1) An insurance policy.
(2) A contract with a health maintenance organization (as defined
in
IC 27-13-1-19
).
(3) An administrator contract A written agreement entered into
under
IC 27-1-25.
(j) "Insurer" has the meaning set forth in
IC 27-1-2-3
(x).
(k) "Manufacturer" means a person who manufactures a recording.
The term does not include a person who manufactures a medium upon
which sounds or visual images can be recorded or stored.
(l) "Make" means to draw, prepare, complete, counterfeit, copy or
otherwise reproduce, or alter any written instrument in whole or in part.
(m) "Metering device" means a mechanism or system used by a
utility to measure or record the quantity of services received by a
customer.
(n) "Public relief or assistance" means any payment made, service
rendered, hospitalization provided, or other benefit extended to a
person by a governmental entity from public funds and includes poor
relief, food stamps, direct relief, unemployment compensation, and any
other form of support or aid.
(o) "Recording" means a tangible medium upon which sounds or
visual images are recorded or stored. The term includes the following:
(1) An original:
(A) phonograph record;
(B) compact disc;
(C) wire;
(D) tape;
(E) audio cassette;
(F) video cassette; or
(G) film.
(2) Any other medium on which sounds or visual images are or can
be recorded or otherwise stored.
(3) A copy or reproduction of an item in subdivision (1) or (2) that
duplicates an original recording in whole or in part.
(p) "Slug" means an article or object that is capable of being
deposited in a coin machine as an improper substitute for a genuine
coin, bill, or token.
(q) "Utility" means a person who owns or operates, for public use,
any plant, equipment, property, franchise, or license for the production,
storage, transmission, sale, or delivery of electricity, water, steam,
telecommunications, information, or gas.
(r) "Written instrument" means a paper, a document, or other
instrument containing written matter and includes money, coins,
tokens, stamps, seals, credit cards, badges, trademarks, medals, retail
sales receipts, labels or markings (including a universal product code
(UPC) or another product identification code), or other objects or
symbols of value, right, privilege, or identification.
SOURCE: IC 27-1-25-11; IC 27-1-25-12.
; (03)CC154504.1.28. -->
SECTION 28. THE FOLLOWING ARE REPEALED [EFFECTIVE
JULY 1, 2003]:
IC 27-1-25-11
;
IC 27-1-25-12.
SOURCE: ; (03)CC154504.1.29. -->
SECTION 29. [EFFECTIVE JULY 1, 2003]
(a) An administrator
that has a certificate of registration issued under
IC 27-1-25
, before
amendment by this act, on June 30, 2003, is considered to be
licensed under
IC 27-1-25
, as amended by this act, until the
expiration of the certificate of registration.
(b) This SECTION expires June 30, 2006.
(Reference is to EHB 1545 as printed April 1, 2003.)
Conference Committee Report
on
Engrossed House
Bill 1545
Text Box
S
igned by:
____________________________ ____________________________
Representative Fry Senator Paul
Chairperson
____________________________ ____________________________
Representative Buck Senator Lanane
House Conferees Senate Conferees