Indiana Code 27-1-23-8.1. Violations; penalties
(b) Except as provided in subsection (c), an officer, a director, an employee, or an agent of an insurer or of an insurance holding company system who knowingly or intentionally violates the following commits a Level 6 felony (IC 35-50-2-7):
Attorney's Note
Under the Indiana Code, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| Level 4 felony | between 2 and 12 years | up to $10,000 |
| Level 6 felony | between 6 mos. and 2 1/2 years | up to $10,000 |
Terms Used In Indiana Code 27-1-23-8.1
- Commissioner: means the insurance commissioner of this state. See Indiana Code 27-1-23-1
- Contract: A legal written agreement that becomes binding when signed.
- Enterprise risk: means an activity, circumstance, event, or series of events that involves at least one (1) affiliate of an insurer that, if not remedied promptly, is likely to have a material adverse effect upon the financial condition or liquidity of the insurer or the insurer's insurance holding company system as a whole, including an activity, circumstance, event, or series of events that would cause the:
Indiana Code 27-1-23-1
- 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
- insurance holding company system: consists of two (2) or more affiliated persons, one (1) or more of which is an insurer. See Indiana Code 27-1-23-1
- 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
- person: is a n individual, a corporation, a limited liability company, a partnership, an association, a joint stock company, a trust, an unincorporated organization, any similar entity or any combination of the foregoing acting in concert. See Indiana Code 27-1-23-1
(2) Section 2(a) or 2(b) of this chapter.
(3) Section 2.5(n) or 2.5(o) of this chapter.
(4) Section 2.6(g), 2.6(i), 2.6(j), 2.6(k), 2.6(l), 2.6(m), 2.6(n), or 2.6(p) of this chapter.
(5) Section 3(a), 3(b), 3(e), or 3(f) of this chapter.
(6) Section 4(a), 4(b), 4(c), 4(e), 4(g), or 4(i) of this chapter.
(7) Section 5(c) or 5(e) of this chapter.
(8) Section 8(b) of this chapter.
(c) An officer, a director, or an employee of an insurance holding company system who knowingly or intentionally subscribes to or makes or causes to be made a false statement, false report, or false filing with the intent to deceive the commissioner in the performance of the commissioner’s duties under this chapter:
(1) commits a Level 4 felony (IC 35-50-2-5.5); and
(2) except as provided in subsection (d), is in the officer’s, director’s, or employee’s individual capacity subject to a civil penalty imposed by the commissioner of not more than one million dollars ($1,000,000).
(d) A director or an officer of an insurance holding company system who:
(1) knowingly or intentionally violates this chapter; or
(2) knowingly or intentionally participates in, assents to, or permits an insurer’s, officer’s, employee’s, or agent’s engagement in transactions or the purchase of investments that:
(A) have not been properly reported or submitted under section 3(a), 4(b), or 4(g) of this chapter; or
(B) violate this chapter;
is, in the director’s or officer’s individual capacity and after notice and hearing under IC 4-21.5, subject to a civil penalty of not more than ten thousand dollars ($10,000) per violation.
(e) The commissioner may impose a civil penalty of not more than one million dollars ($1,000,000) on an insurer that knowingly or intentionally violates this chapter.
(f) In determining the amount of the civil penalty under this section, the commissioner shall consider the appropriateness of the amount of the civil penalty with respect to the gravity of the violation, any history of previous violations, and other matters considered appropriate by the commissioner.
(g) If it appears to the commissioner that an insurer subject to this chapter, or a director, an officer, an employee, or an agent of an insurer, has engaged in a transaction or entered into a contract:
(1) that is subject to section 4 of this chapter;
(2) for which the commissioner’s approval was not requested; and
(3) that would not have been approved by the commissioner if the commissioner’s approval had been requested;
the commissioner may order the insurer to immediately cease and desist from activity under the transaction or contract. The commissioner may, after notice and hearing under IC 4-21.5, order the insurer to void any contract and restore the status quo if the commissioner determines that the action is in the best interest of the insurer’s policyholders or creditors or the public.
(h) If it appears to the commissioner that:
(1) a person has committed a violation of section 2 of this chapter; and
(2) the violation prevents the full understanding of the enterprise risk to the insurer by affiliates or the insurance holding company system;
the violation may serve as an independent basis for disapproving dividends or distributions and for placing the insurer under an order of supervision in accordance with IC 27-9.
As added by P.L.72-2016, SEC.15.