Sec. 9. A trust created under section 7 of this chapter is subject to regulation by the
department as follows:
(1) The trust must be registered with the department.
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Terms Used In Indiana Code 27-1-39-9
- commissioner: means the insurance commissioner appointed under IC 27-1-1-2. See Indiana Code 27-1-39-1
- department: refers to the department of insurance created by IC 27-1-1-1. See Indiana Code 27-1-39-3
- Fraud: Intentional deception resulting in injury to another.
- Insurance: means a contract of insurance or an agreement by which one (1) party, for a consideration, promises to pay money or its equivalent or to do an act valuable to the insured upon the destruction, loss or injury of something in which the other party has a pecuniary interest, or in consideration of a price paid, adequate to the risk, becomes security to the other against loss by certain specified risks; to grant indemnity or security against loss for a consideration. See Indiana Code 27-1-2-3
- insurer: means a company, firm, partnership, association, order, society or system making any kind or kinds of insurance and shall include associations operating as Lloyds, reciprocal or inter-insurers, or individual underwriters. See Indiana Code 27-1-2-3
- Judgment: means all final orders, decrees, and determinations in an action and all orders upon which executions may issue. See Indiana Code 1-1-4-5
- member: means an independent postsecondary educational institution that enters into an agreement under section 7 of this chapter to form a consortium. See Indiana Code 27-1-39-5
- person: includes individuals, corporations, associations, and partnerships; personal pronoun includes all genders; the singular includes the plural and the plural includes the singular. See Indiana Code 27-1-2-3
- self-insurance fund: means a fund established by a consortium to provide money sufficient to:
Indiana Code 27-1-39-6
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(A) retain a total risk for the self-insurance fund of not more than one hundred twenty-five percent (125%) of the amount of expected claims for the following year; and
(B) obtain stop-loss insurance issued by an insurer authorized to do business in Indiana to cover losses in excess of the amount retained under clause (A).
(3) Contributions by the members must be set to fund one hundred percent (100%) of the total risk retained under subdivision (2)(A) plus all other costs of the trust.
(4) The trust shall maintain a fidelity bond in an amount approved by the department, covering each person responsible for the trust, to protect against acts of fraud or dishonesty in servicing the trust.
(5) The trust is subject to IC 27-4-1-4.5 regarding claims settlement practices.
(6) The trust shall, before March 1 of each year, file an annual financial statement in the form required by IC 27-1-3-13.
(7) The trust is not a member of the Indiana insurance guaranty association under IC 27-6-8. The liability of each member is joint and several.
(8) The trust is subject to examination by the department. The trust shall pay all costs associated with an examination.
(9) The department may deny, suspend, or revoke the registration of the trust if the commissioner finds that the trust:
(A) is in a hazardous financial condition;
(B) refuses to be examined or produce records for examination; or
(C) has failed to pay a final judgment rendered against the trust by a court within thirty (30) days.
As added by P.L.38-2006, SEC.1. Amended by P.L.1-2007, SEC.184.
