Indiana Code
Chapter 23. Regulation of Insurance Holding Company Systems
27-1-23-1. Definitions

Sec. 1. As used in this chapter, the following terms shall have the respective meanings set forth in this section, unless the context shall otherwise require:
(a) An "acquiring party" is the specific person by whom an acquisition of control of a domestic insurer or of any corporation controlling a domestic insurer is to be effected, and each person who directly, or indirectly through one (1) or more intermediaries, controls the person specified.
(b) An "affiliate" of, or person "affiliated" with, a specific person, is a person that directly, or indirectly through one (1) or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.
(c) A "beneficial owner" of a voting security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, revocable or irrevocable proxy, or otherwise has or shares:
(1) voting power including the power to vote, or to direct the voting of, the security; or
(2) investment power which includes the power to dispose, or to direct the disposition, of the security.
(d) "Commissioner" means the insurance commissioner of this state.
(e) "Control" (including the terms "controlling", "controlled by", and "under common control with") means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the beneficial ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position or corporate office. Control shall be presumed to exist if any person beneficially owns ten percent (10%) or more of the voting securities of any other person. The commissioner may determine this presumption has been rebutted only by a showing made in the manner provided by section 3(k) of this chapter that control does not exist in fact, after giving all interested persons notice and an opportunity to be heard. Control shall be presumed again to exist upon the acquisition of beneficial ownership of each additional five percent (5%) or more of the voting securities of the other person. The commissioner may determine, after furnishing all persons in interest notice and opportunity to be heard, that control exists in fact, notwithstanding the absence of a presumption to that effect.
(f) "Department" means the department of insurance created by IC 27-1-1-1.
(g) A "domestic insurer" is an insurer organized under the laws of this state.
(h) "Earned surplus" means an amount equal to the unassigned funds of an insurer as set forth in the most recent annual statement of an insurer that is submitted to the commissioner, excluding surplus arising from unrealized capital gains or revaluation of assets.
(i) "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:
(1) insurer's risk based capital to fall into company action level under IC 27-1-36; or
(2) insurer to be in hazardous financial condition subject to IC 27-1-3-7 and rules adopted under IC 27-1-3-7.
(j) "Group wide supervisor" means the regulatory official who is:
(1) authorized by the commissioner to conduct and coordinate group wide supervision of an internationally active insurance group; and
(2) determined by the commissioner to have sufficient significant contact with the internationally active insurance group to enable group wide supervision.
(k) An "insurance holding company system" consists of two (2) or more affiliated persons, one (1) or more of which is an insurer.
(l) "Insurer" has the same meaning as set forth in IC 27-1-2-3, except that it does not include:
(1) agencies, authorities, or instrumentalities of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or a state or political subdivision of a state; or
(2) nonprofit medical and hospital service associations.
The term includes a health maintenance organization (as defined in IC 27-13-1-19) and a limited service health maintenance organization (as defined in IC 27-13-1-27).
(m) "Internationally active insurance group" means an insurance holding company system that:
(1) includes an insurer that is registered under section 3 of this chapter; and
(2) meets the following requirements:
(A) The insurance holding company system has premiums written in at least three (3) countries.
(B) The percentage of the insurance holding company system's gross premiums written outside the United States is at least ten percent (10%) of the insurance holding company system's total gross written premiums.
(C) Based on a three (3) year rolling average, the:
(i) total assets of the insurance holding company system are at least fifty billion dollars ($50,000,000,000); or
(ii) total gross written premiums of the insurance holding company system are at least ten billion dollars ($10,000,000,000).
(n) "NAIC" refers to the National Association of Insurance Commissioners.
(o) "Supervisory college" means a temporary or permanent forum:
(1) comprised of regulators, including other state, federal, and international regulators, responsible for the supervision of:
(A) a domestic insurer that is part of an insurance holding company system that has international operations;
(B) an insurance holding company system described in clause (A); or
(C) an affiliate of:
(i) a domestic insurer described in clause (A); or
(ii) an insurance holding company system described in clause (B); and
(2) established to facilitate communication and cooperation between the regulators described in subdivision (1).
(p) A "person" is an 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. The term does not include the following:
(1) A securities broker performing no more than the usual and customary broker's function.
(2) A joint venture partnership that is exclusively engaged in owning, managing, leasing, or developing real or tangible personal property.
(q) A "policyholder" of a domestic insurer includes any person who owns an insurance policy or annuity contract issued by the domestic insurer, any person reinsured by the domestic insurer under a reinsurance contract or treaty between the person and the domestic insurer, and any health maintenance organization with which the domestic insurer has contracted to provide services or protection against the cost of care.
(r) "Securityholder" means a person that owns a security of a specified person, including common stock, preferred stock, debt obligations, and any other security that:
(1) is convertible to; or
(2) evidences the right to acquire;
a common stock, preferred stock, or debt obligation.
(s) A "subsidiary" of a specified person is an affiliate controlled by that person directly or indirectly through one or more intermediaries.
(t) "Surplus" means the total of gross paid in and contributed surplus, special surplus funds, and unassigned surplus, less treasury stock at cost.
(u) "Voting security" includes any security convertible into or evidencing a right to acquire a voting security.
Formerly: Acts 1971, P.L.387, SEC.1. As amended by Acts 1981, P.L.244, SEC.1; P.L.26-1991, SEC.8; P.L.8-1993, SEC.416; P.L.130-1994, SEC.28; P.L.116-1994, SEC.38; P.L.26-1994, SEC.9; P.L.2-1995, SEC.100; P.L.203-2001, SEC.5; P.L.81-2012, SEC.12; P.L.72-2016, SEC.10.