Indiana Code
Chapter 23. Regulation of Insurance Holding Company Systems
27-1-23-8.1. Violations; Penalties

Sec. 8.1. (a) If it appears to the commissioner that an insurer or a director, an officer, an employee, or an agent of an insurer has knowingly or intentionally violated this chapter, the commissioner may report the violation to the prosecutor of the county in which the conduct giving rise to the report occurred.
(b) Except as provided in subsection (c), an officer, a director, an employee, or an agent of an insurer or of an insurance holding company system who knowingly or intentionally violates the following commits a Level 6 felony (IC 35-50-2-7):
(1) Section 1.5(a) or 1.5(b) of this chapter.
(2) Section 2(a) or 2(b) of this chapter.
(3) Section 2.5(n) or 2.5(o) of this chapter.
(4) Section 2.6(g), 2.6(i), 2.6(j), 2.6(k), 2.6(l), 2.6(m), 2.6(n), or 2.6(p) of this chapter.
(5) Section 3(a), 3(b), 3(e), or 3(f) of this chapter.
(6) Section 4(a), 4(b), 4(c), 4(e), 4(g), or 4(i) of this chapter.
(7) Section 5(c) or 5(e) of this chapter.
(8) Section 8(b) of this chapter.
(c) An officer, a director, or an employee of an insurance holding company system who knowingly or intentionally subscribes to or makes or causes to be made a false statement, false report, or false filing with the intent to deceive the commissioner in the performance of the commissioner's duties under this chapter:
(1) commits a Level 4 felony (IC 35-50-2-5.5); and
(2) except as provided in subsection (d), is in the officer's, director's, or employee's individual capacity subject to a civil penalty imposed by the commissioner of not more than one million dollars ($1,000,000).
(d) A director or an officer of an insurance holding company system who:
(1) knowingly or intentionally violates this chapter; or
(2) knowingly or intentionally participates in, assents to, or permits an insurer's, officer's, employee's, or agent's engagement in transactions or the purchase of investments that:
(A) have not been properly reported or submitted under section 3(a), 4(b), or 4(g) of this chapter; or
(B) violate this chapter;
is, in the director's or officer's individual capacity and after notice and hearing under IC 4-21.5, subject to a civil penalty of not more than ten thousand dollars ($10,000) per violation.
(e) The commissioner may impose a civil penalty of not more than one million dollars ($1,000,000) on an insurer that knowingly or intentionally violates this chapter.
(f) In determining the amount of the civil penalty under this section, the commissioner shall consider the appropriateness of the amount of the civil penalty with respect to the gravity of the violation, any history of previous violations, and other matters considered appropriate by the commissioner.
(g) If it appears to the commissioner that an insurer subject to this chapter, or a director, an officer, an employee, or an agent of an insurer, has engaged in a transaction or entered into a contract:
(1) that is subject to section 4 of this chapter;
(2) for which the commissioner's approval was not requested; and
(3) that would not have been approved by the commissioner if the commissioner's approval had been requested;
the commissioner may order the insurer to immediately cease and desist from activity under the transaction or contract. The commissioner may, after notice and hearing under IC 4-21.5, order the insurer to void any contract and restore the status quo if the commissioner determines that the action is in the best interest of the insurer's policyholders or creditors or the public.
(h) If it appears to the commissioner that:
(1) a person has committed a violation of section 2 of this chapter; and
(2) the violation prevents the full understanding of the enterprise risk to the insurer by affiliates or the insurance holding company system;
the violation may serve as an independent basis for disapproving dividends or distributions and for placing the insurer under an order of supervision in accordance with IC 27-9.
As added by P.L.72-2016, SEC.15.