Sec. 7. (a) Subject to subsection (b), an insurer or insurance group may complete a CGAD using corporate governance information at the level of disclosure at which the insurer’s or insurance group’s system of corporate governance is structured, as follows:

(1) The ultimate controlling parent level.

Terms Used In Indiana Code 27-1-4.1-7

  • capital: means the aggregate amount paid in on the shares of capital stock of a corporation issued and outstanding. See Indiana Code 27-1-2-3
  • CGAD: means a confidential report filed by an insurer or insurance group under this chapter. See Indiana Code 27-1-4.1-2
  • 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 group: means insurers and affiliates of an insurance holding company system (as defined in IC 27-1-23-1). See Indiana Code 27-1-4.1-3
  • 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
(2) An intermediate holding company level.

(3) The individual legal entity level.

     (b) An insurer or insurance group may, but is not required to, choose the level of disclosure at which to complete a CGAD under subsection (a) according to one (1) of the following criteria:

(1) The level at which the insurer’s or insurance group’s risk tolerance is determined.

(2) The level at which the insurer’s or insurance group’s earnings, capital, liquidity, operations, and reputation are:

(A) collectively overseen; and

(B) supervised.

(3) The level at which legal liability for failure of general corporate governance would be placed.

     (c) If the insurer or insurance group chooses the level of disclosure at which to complete a CGAD under subsection (a) according to a criterion described in subsection (b), the insurer or insurance group shall:

(1) indicate which of the three (3) criteria was used to determine the level of disclosure; and

(2) explain any change in the level of disclosure that is subsequently used.

As added by P.L.146-2015, SEC.19.

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