Sec. 12. Notwithstanding any other provision of this title to the contrary, a person may exercise any of the following:

(1) A contractual right to cause the termination, liquidation, acceleration, or close-out of obligations in connection with a netting agreement or qualified financial contract with an insurer due to:

Terms Used In Indiana Code 27-9-3.1-12

  • Contract: A legal written agreement that becomes binding when signed.
  • contractual right: includes the following:

    Indiana Code 27-9-3.1-4

  • Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • netting agreement: means a new agreement that:

    Indiana Code 27-9-3.1-6

  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • qualified financial contract: means a commodity contract, forward contract, repurchase agreement, securities contract, swap agreement, or a similar agreement, as determined by the commissioner. See Indiana Code 27-9-3.1-7
  • United States: includes the District of Columbia and the commonwealths, possessions, states in free association with the United States, and the territories. See Indiana Code 1-1-4-5
(A) the insolvency, financial condition, or default of the insurer if the right is enforceable under applicable law other than this title; or

(B) the commencement of a formal delinquency proceeding under IC 27-9-3.

(2) A right under:

(A) a pledge, security, collateral, reimbursement, guarantee agreement, or similar security agreement; or

(B) an arrangement or credit enhancement relating to at least one (1) netting agreement or qualified financial contract.

(3) A right to set off or net out a termination value, payment amount, or other transfer obligation arising in connection with at least one (1) qualified financial contract in which the counterparty or the counterparty’s guarantor is organized under the laws of:

(A) the United States; or

(B) a state or foreign jurisdiction approved as eligible for netting by the Securities Valuation Office of the NAIC.

As added by P.L.11-2011, SEC.36. Amended by P.L.148-2017, SEC.19.

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