|
|
|
IC 27-1-39-2
"Consortium" defined
Sec. 2. As used in this chapter, "consortium" refers to a
self-insurance consortium established under section 7 of this chapter.
As added by P.L.38-2006, SEC.1.
IC 27-1-39-3
"Department" defined
Sec. 3. As used in this chapter, "department" refers to the
department of insurance created by IC 27-1-1-1.
As added by P.L.38-2006, SEC.1.
IC 27-1-39-4
"Independent postsecondary educational institution" defined
Sec. 4. As used in this chapter, "independent postsecondary
educational institution" refers to an independent, degree granting
college or university that is:
(1) accredited by the Higher Learning Commission of the North
Central Association of Colleges and Schools;
(2) chartered in Indiana; and
(3) operated as a nonprofit entity under Section 501(c)(3) of the
Internal Revenue Code.
As added by P.L.38-2006, SEC.1. Amended by P.L.2-2007, SEC.352.
IC 27-1-39-5
"Member" defined
Sec. 5. As used in this chapter, "member" means an independent
postsecondary educational institution that enters into an agreement
under section 7 of this chapter to form a consortium.
As added by P.L.38-2006, SEC.1. Amended by P.L.2-2007, SEC.353.
IC 27-1-39-6
"Self-insurance fund" defined
Sec. 6. As used in this chapter, "self-insurance fund" means a fund
established by a consortium to provide money sufficient to:
(1) cover self-insured risk retained by the consortium;
(2) pay premiums for stop-loss insurance coverage; and
(3) pay the administrative and other costs of the consortium.
As added by P.L.38-2006, SEC.1.
IC 27-1-39-8
Consortium governance
Sec. 8. A consortium shall be governed by a governing authority
comprised entirely of representatives of the consortium's members.
As added by P.L.38-2006, SEC.1.
IC 27-1-39-9
Regulation of trust
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.
(2) The trust shall:
(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.
IC 27-1-39-10
Rulemaking authority
Sec. 10. The department may adopt rules under IC 4-22-2 to
implement this chapter.
As added by P.L.38-2006, SEC.1.