Indiana Code
Chapter 23. Regulation of Insurance Holding Company Systems
27-1-23-5.3. Internationally Active Insurance Group; Group Wide Supervisor

Sec. 5.3. (a) The commissioner shall, in cooperation with other state, federal, and international regulatory agencies, do either of the following to identify a single group wide supervisor for an internationally active insurance group:
(1) Act as the group wide supervisor if the commissioner determines that the internationally active insurance group conducts substantial insurance operations in Indiana.
(2) Acknowledge another regulatory official as the group wide supervisor if the commissioner determines that the internationally active insurance group:
(A) does not have substantial insurance operations in the United States;
(B) has substantial insurance operations in the United States, but not in Indiana; or
(C) has substantial insurance operations in the United States and Indiana, but the commissioner has determined according to subsections (c), (d), and (j) that the other regulatory official is the appropriate group wide supervisor.
(b) The commissioner may, upon request of an insurance holding company system that does not qualify as an internationally active insurance group, make a determination and act as, or acknowledge another regulatory official as, a group wide supervisor for the insurance holding company system under subsection (a) as if the insurance holding company system was an internationally active insurance group.
(c) In making a determination under subsection (a), the commissioner shall consider all of the following:
(1) The place of domicile of the internationally active insurance group insurers that hold the largest share of the internationally active insurance group's written premiums, assets, or liabilities.
(2) The place of domicile of the top tiered insurers in the internationally active insurance group's insurance company holding system.
(3) The location of the internationally active insurance group's executive offices or largest operational offices.
(4) Whether another regulatory official is acting or seeks to act as the group wide supervisor under a regulatory system that the commissioner determines to be:
(A) substantially similar to the regulatory system under the law of this state; or
(B) sufficient to provide for group wide supervision, enterprise risk analysis, and cooperation with other regulatory officials.
(5) Whether a regulatory official described in subdivision (4) provides the commissioner with reasonably reciprocal recognition and cooperation.
(d) If a regulatory official who is identified as the group wide supervisor under this section considers another regulatory official to be more appropriate to serve as the group wide supervisor, the commissioner shall cooperatively do the following with the other regulatory officials involved with supervision of members of the internationally active insurance group, and in consultation with the internationally active insurance group:
(1) Consider the factors described in subsection (c) with respect to the other regulatory official considered more appropriate to serve as the group wide supervisor.
(2) If the commissioner considers the other regulatory official to be appropriate to serve as the group wide supervisor, acknowledge the other regulatory official, subject to the acknowledgment of the other regulatory officials.
(e) Notwithstanding any other law, if another regulatory official is acting as the group wide supervisor of an internationally active insurance group, the commissioner shall acknowledge the other regulatory official as the group wide supervisor. However, if there is a material change in the internationally active insurance group that results in:
(1) the internationally active insurance group's Indiana domiciled insurers holding the largest share of the internationally active insurance group's premiums, assets, or liabilities; or
(2) Indiana being the domicile of the internationally active insurance group's insurance holding company system's top tiered insurers;
the commissioner shall make a determination concerning the appropriate group wide supervisor for the internationally active insurance group as described in subsections (c) and (d).
(f) The commissioner may, under section 5 of this chapter, obtain from an insurer that is registered under section 3 of this chapter all information necessary to make a determination under this section.
(g) Before making a final determination that the commissioner will act as the group wide supervisor of an internationally active insurance group:
(1) the commissioner shall notify the:
(A) insurer that is registered under section 3 of this chapter; and
(B) ultimate controlling person;
in the internationally active insurance group; and
(2) the internationally active insurance group has at least thirty (30) days to provide the commissioner with additional information relevant to the commissioner's final determination.
(h) Upon making a final determination that the commissioner will act as the group wide supervisor of an internationally active insurance group, the commissioner shall publish that information, including the identity of the internationally active insurance group, in the Indiana Register and on the department's Internet web site.
(i) The commissioner may do any of the following with respect to an internationally active insurance group subject to group wide supervision by the commissioner:
(1) Assess enterprise risk in the internationally active insurance group to ensure that:
(A) the material financial condition and liquidity risks to members of the internationally active insurance group that are engaged in the business of insurance are identified by management; and
(B) reasonable and effective mitigation measures are in place to address the risks described in clause (A).
(2) Request from any member of the internationally active insurance group information necessary and appropriate to assess enterprise risk, including the following information concerning the members of the internationally active insurance group:
(A) Governance, risk assessment, and management.
(B) Capital adequacy.
(C) Material intercompany transactions.
(3) Coordinate and, through the regulatory authority of the jurisdictions where members of the internationally active insurance group are domiciled, compel development and implementation of reasonable measures to ensure that the internationally active insurance group is able to, in a timely manner, recognize and mitigate enterprise risks to members of the internationally active insurance group that are engaged in the business of insurance.
(4) Communicate with other state, federal, and international regulatory officials for members in the internationally active insurance group and share relevant information subject to the confidentiality provisions of section 6 of this chapter, through supervisory colleges under section 5.1 of this chapter or otherwise.
(5) Enter into agreements with or obtain documentation from any:
(A) insurer registered under section 3 of this chapter;
(B) member of the internationally active insurance group; and
(C) other state, federal, and international regulatory official for members of the internationally active insurance group;
to establish the basis for or otherwise clarify the commissioner's role as group wide supervisor, including provisions to resolve disputes with other regulatory officials. An agreement or documentation described in this subdivision may not serve as evidence in any proceeding that an insurer or a person in an insurance holding company system that is not domiciled or incorporated in Indiana is doing business in Indiana or is otherwise subject to the jurisdiction of this state.
(6) Other group wide supervision activities consistent with this section, as the commissioner determines necessary.
(j) If the commissioner acknowledges another regulatory official from a jurisdiction that is not accredited by the NAIC as the group wide supervisor of an internationally active insurance group, the commissioner may reasonably cooperate, through supervisory colleges or otherwise, with the regulatory official's group wide supervision if:
(1) the commissioner's cooperation is in compliance with the law of this state; and
(2) the regulatory official recognizes and cooperates with the commissioner's activities as a group wide supervisor for other internationally active insurance groups, as applicable.
If a regulatory official is not described in subdivision (2), the commissioner may refuse to recognize and cooperate with the regulatory official as the group wide supervisor.
(k) The commissioner may enter into agreements with or obtain documentation from:
(1) an insurer registered under section 3 of this chapter;
(2) an affiliate of an insurer described in subdivision (1); and
(3) other state, federal, and international regulatory agencies for members of an internationally active insurance group;
that provides a basis for or clarifies a regulatory official's role as group wide supervisor of the internationally active insurance group.
(l) An insurer that is registered under section 3 of this chapter and subject to this section is liable for and shall pay the reasonable expenses of the commissioner's participation in the implementation of this section, including costs of attorneys, actuaries, other professionals, and reasonable travel expense.
As added by P.L.72-2016, SEC.14. Amended by P.L.44-2017, SEC.3.