CHAPTER 15.6. INSURANCE PRODUCERS
IC 27-1-15.6
Chapter 15.6. Insurance Producers
IC 27-1-15.6-1
Applicability of chapter
Sec. 1. This chapter governs the qualifications and procedures for
the licensing of insurance producers. This chapter does not apply to
surplus lines producers licensed under IC 27-1-15.8 except as
specifically provided in this chapter or in IC 27-1-15.8.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-2
Definitions
Sec. 2. The following definitions apply throughout this chapter,
IC 27-1-15.7, and IC 27-1-15.8:
(1) "Bureau" refers to the child support bureau established by
IC 31-25-3-1.
(2) "Business entity" means a corporation, an association, a
partnership, a limited liability company, a limited liability
partnership, or another legal entity.
(3) "Commissioner" means the insurance commissioner
appointed under IC 27-1-1-2.
(4) "Consultant" means a person who:
(A) holds himself or herself out to the public as being
engaged in the business of offering; or
(B) for a fee, offers;
any advice, counsel, opinion, or service with respect to the
benefits, advantages, or disadvantages promised under any
policy of insurance that could be issued in Indiana.
(5) "Delinquent" means the condition of being at least:
(A) two thousand dollars ($2,000); or
(B) three (3) months;
past due in the payment of court ordered child support.
(6) "Home state" means the District of Columbia or any state or
territory of the United States in which an insurance producer:
(A) maintains the insurance producer's principal place of
residence or principal place of business; and
(B) is licensed to act as an insurance producer.
(7) "Insurance producer" means a person required to be licensed
under the laws of Indiana to sell, solicit, or negotiate insurance.
(8) "License" means a document issued by the commissioner
authorizing a person to act as an insurance producer for the
lines of authority specified in the document. The license itself
does not create any authority, actual, apparent, or inherent, in
the holder to represent or commit an insurance carrier.
(9) "Limited line credit insurance" includes the following:
(A) Credit life insurance.
(B) Credit disability insurance.
(C) Credit property insurance.
(D) Credit unemployment insurance.
(E) Involuntary unemployment insurance.
(F) Mortgage life insurance.
(G) Mortgage guaranty insurance.
(H) Mortgage disability insurance.
(I) Guaranteed automobile protection (gap) insurance.
(J) Any other form of insurance:
(i) that is offered in connection with an extension of credit
and is limited to partially or wholly extinguishing that
credit obligation; and
(ii) that the insurance commissioner determines should be
designated a form of limited line credit insurance.
(10) "Limited line credit insurance producer" means a person
who sells, solicits, or negotiates one (1) or more forms of
limited line credit insurance coverage to individuals through a
master, corporate, group, or individual policy.
(11) "Limited lines insurance" means any of the following:
(A) The lines of insurance defined in section 18 of this
chapter.
(B) Any line of insurance the recognition of which is
considered necessary by the commissioner for the purpose
of complying with section 8(e) of this chapter.
(C) For purposes of section 8(e) of this chapter, any form of
insurance with respect to which authority is granted by a
home state that restricts the authority granted by a limited
lines producer's license to less than total authority in the
associated major lines described in section 7(a)(1) through
7(a)(6) of this chapter.
(12) "Limited lines producer" means a person authorized by the
commissioner to sell, solicit, or negotiate limited lines
insurance.
(13) "Negotiate" means the act of conferring directly with or
offering advice directly to a purchaser or prospective purchaser
of a particular contract of insurance concerning any of the
substantive benefits, terms, or conditions of the contract,
provided that the person engaged in that act either sells
insurance or obtains insurance from insurers for purchasers.
(14) "Person" means an individual or a business entity.
(15) "Sell" means to exchange a contract of insurance by any
means, for money or its equivalent, on behalf of a company.
(16) "Solicit" means attempting to sell insurance or asking or
urging a person to apply for a particular kind of insurance from
a particular company.
(17) "Surplus lines producer" means a person who sells, solicits,
negotiates, or procures from an insurance company not licensed
to transact business in Indiana an insurance policy that cannot
be procured from insurers licensed to do business in Indiana.
(18) "Terminate" means:
(A) the cancellation of the relationship between an insurance
producer and the insurer; or
(B) the termination of a producer's authority to transact
insurance.
(19) "Uniform business entity application" means the current
version of the national association of insurance commissioners
uniform business entity application for resident and nonresident
business entities.
(20) "Uniform application" means the current version of the
national association of insurance commissioners uniform
application for resident and nonresident producer licensing.
As added by P.L.132-2001, SEC.3. Amended by P.L.182-2001,
SEC.1; P.L.145-2006, SEC.163.
IC 27-1-15.6-3
Required licensing
Sec. 3. (a) A person shall not sell, solicit, or negotiate insurance
in Indiana for any class or classes of insurance unless the person is
licensed for that line of authority under this chapter.
(b) An insurer shall require a person who sells, solicits, or
negotiates insurance in Indiana by any means of communication on
behalf of the insurer to be licensed under this chapter.
(c) A violation of subsection (b) is deemed an unfair method of
competition and an unfair and deceptive act and practice in the
business of insurance under IC 27-4-1-4.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-4
Insurance producer license; when not required
Sec. 4. (a) As used in this section, "insurer" does not include an
officer, director, employee, subsidiary, or affiliate of an insurer.
(b) This chapter does not require an insurer to obtain an insurance
producer license.
(c) The following are not required to be licensed as an insurance
producer:
(1) An officer, director, or employee of an insurer or of an
insurance producer, if the officer, director, or employee does
not receive any commission on policies written or sold to insure
risks that reside, are located, or are to be performed in Indiana,
and if:
(A) the officer, director, or employee's activities are
executive, administrative, managerial, clerical, or a
combination of these, and are only indirectly related to the
sale, solicitation, or negotiation of insurance;
(B) the officer, director, or employee's function relates to
underwriting, loss control, inspection, or the processing,
adjusting, investigating, or settling of a claim on a contract
of insurance; or
(C) the officer, director, or employee is acting in the
capacity of a special agent or agency supervisor assisting
insurance producers and the officer, director, or employee's
activities are limited to providing technical advice and
assistance to licensed insurance producers and do not
include the sale, solicitation, or negotiation of insurance.
(2) A person who secures and furnishes information for the
purpose of:
(A) group life insurance, group property and casualty
insurance, group annuities, group or blanket accident and
sickness insurance;
(B) enrolling individuals under plans;
(C) issuing certificates under plans or otherwise assisting in
administering plans; or
(D) performing administrative services related to mass
marketed property and casualty insurance;
where no commission is paid to the person for the service.
(3) A person identified in clauses (A) through (C) who is not in
any manner compensated, directly or indirectly, by a company
issuing a contract, to the extent that the person is engaged in the
administration or operation of a program of employee benefits
for the employer's or association's employees, or for the
employees of a subsidiary or affiliate of the employer or
association, that involves the use of insurance issued by an
insurer:
(A) An employer or association.
(B) An officer, director, or employee of an employer or
association.
(C) The trustees of an employee trust plan.
(4) An:
(A) employee of an insurer; or
(B) organization employed by insurers;
that is engaged in the inspection, rating, or classification of
risks, or in the supervision of the training of insurance
producers, and that is not individually engaged in the sale,
solicitation, or negotiation of insurance.
(5) A person whose activities in Indiana are limited to
advertising, without the intent to solicit insurance in Indiana,
through communications in printed publications or other forms
of electronic mass media whose distribution is not limited to
residents of Indiana, provided that the person does not sell,
solicit, or negotiate insurance that would insure risks residing,
located, or to be performed in Indiana.
(6) A person who is not a resident of Indiana and who sells,
solicits, or negotiates a contract of insurance for commercial
property and casualty risks to an insured with risks located in
more than one state insured under that contract, provided that:
(A) the person is otherwise licensed as an insurance
producer to sell, solicit, or negotiate the insurance in the
state where the insured maintains its principal place of
business; and
(B) the contract of insurance insures risks located in that
state.
(7) A salaried full-time employee who counsels or advises the
employee's employer about the insurance interests of the
employer or of the subsidiaries or business affiliates of the
employer, provided that the employee does not sell or solicit
insurance or receive a commission.
(8) An officer, employee, or representative of a rental company
(as defined in IC 24-4-9-7) who negotiates or solicits insurance
incidental to and in connection with the rental of a motor
vehicle.
(9) An individual who:
(A) furnishes only title insurance rate information at the
request of a consumer; and
(B) does not discuss the terms or conditions of a title
insurance policy.
As added by P.L.132-2001, SEC.3. Amended by P.L.129-2003,
SEC.3; P.L.64-2004, SEC.22.
IC 27-1-15.6-5
Licensing examination
Sec. 5. (a) A resident individual applying for:
(1) an insurance producer license;
(2) a consultant's license; or
(3) a surplus lines producer license;
must pass a written examination unless the individual is exempt
under section 9 of this chapter.
(b) The examination required under subsection (a) must test the
knowledge of the individual concerning the:
(1) lines of authority for which application is made;
(2) duties and responsibilities of a licensee; and
(3) insurance laws and administrative rules of Indiana.
(c) Examinations required under this section must be developed
and conducted under rules adopted by the commissioner.
(d) The commissioner may make arrangements, including
contracting with an outside testing service, for administering
examinations, collecting the nonrefundable examination fee as
established by contract with an outside testing service, or collecting
the nonrefundable licensure fee set forth in section 32 of this chapter.
(e) An individual who fails to appear for the examination required
under subsection (a) as scheduled or who fails to pass the
examination must reapply for an examination and remit all required
fees and forms before being rescheduled for another examination.
As added by P.L.132-2001, SEC.3. Amended by P.L.1-2002,
SEC.105.
IC 27-1-15.6-6
Application for resident insurance producer
Sec. 6. (a) A person applying for a resident insurance producer
license shall make application to the commissioner on the uniform
application and declare under penalty of refusal, suspension, or
revocation of the license that the statements made in the application
are true, correct, and complete to the best of the individual's
knowledge and belief.
(b) Before approving an application submitted under subsection
(a), the commissioner must find that the individual meets the
following requirements:
(1) Is at least eighteen (18) years of age.
(2) Has not committed any act that is a ground for denial,
suspension, or revocation under section 12 of this chapter.
(3) Has completed, if required by the commissioner, a certified
prelicensing course of study for the lines of authority for which
the individual has applied.
(4) Has paid the nonrefundable fee set forth in section 32 of this
chapter.
(5) Has successfully passed the examinations for the lines of
authority for which the individual has applied.
(c) An applicant for a resident insurance producer license must
file with the commissioner on a form prescribed by the commissioner
a certification of completion certifying that the applicant has
completed an insurance producer program of study certified by the
commissioner under IC 27-1-15.7-5 not more than six (6) months
before the application for the license is received by the
commissioner. This subsection applies only to licensees seeking
qualification in the lines of insurance described in sections 7(a)(1)
through 7(a)(6) and 7(a)(8) of this chapter.
(d) A business entity, before acting as an insurance producer, is
required to obtain an insurance producer license. The application
submitted by a business entity under this subsection must be made
using the uniform business entity application. Before approving the
application, the commissioner must find that the business entity has:
(1) paid the fees required under section 32 of this chapter; and
(2) designated an individual licensed producer responsible for
the business entity's compliance with the insurance laws and
administrative rules of Indiana.
(e) The commissioner may require any documents reasonably
necessary to verify the information contained in an application
submitted under this subsection.
(f) An insurer that sells, solicits, or negotiates any form of limited
line credit insurance shall provide a program of instruction approved
by the commissioner to each individual whose duties will include
selling, soliciting, or negotiating limited line credit insurance.
As added by P.L.132-2001, SEC.3. Amended by P.L.1-2002,
SEC.106; P.L.64-2004, SEC.23.
IC 27-1-15.6-7
Insurance producer licenses; qualifications; expiration; renewal;
registry
Sec. 7. (a) Unless denied licensure under section 12 of this
chapter, a person who has met the requirements of sections 5 and 6
of this chapter shall be issued an insurance producer license. An
insurance producer may receive qualification for a license in one or
more of the following lines of authority:
(1) Life _ insurance coverage on human lives, including
benefits of endowment and annuities, that may include benefits
in the event of death or dismemberment by accident and
benefits for disability income.
(2) Accident and health or sickness _ insurance coverage for
sickness, bodily injury, or accidental death that may include
benefits for disability income.
(3) Property _ insurance coverage for the direct or
consequential loss of or damage to property of every kind.
(4) Casualty _ insurance coverage against legal liability,
including liability for death, injury, or disability, or for damage
to real or personal property.
(5) Variable life and variable annuity products _ insurance
coverage provided under variable life insurance contracts and
variable annuities.
(6) Personal lines _ property and casualty insurance coverage
sold to individuals and families for primarily noncommercial
purposes.
(7) Credit _ limited line credit insurance.
(8) Title _ insurance coverage against loss or damage on
account of encumbrances on or defects in the title to real estate.
(9) Any other line of insurance permitted under Indiana laws or
administrative rules.
(b) A person who requests and receives qualification under
subsection (a)(5) for variable life and annuity products:
(1) is considered to have requested; and
(2) shall receive;
a life qualification under subsection (a)(1).
(c) A resident insurance producer may not request separate
qualifications for property insurance and casualty insurance under
subsection (a).
(d) An insurance producer license remains in effect unless
revoked or suspended, as long as the renewal fee set forth in section
32 of this chapter is paid and the educational requirements for
resident individual producers are met by the due date.
(e) An individual insurance producer who:
(1) allows the individual insurance producer's license to lapse;
and
(2) completed all required continuing education before the
license expired;
may, not more than twelve (12) months after the expiration date of
the license, reinstate the same license without the necessity of
passing a written examination. A penalty in the amount of three (3)
times the unpaid renewal fee shall be required for any renewal fee
received after the expiration date of the license. However, the
department of insurance may waive the penalty if the renewal fee is
received not more than thirty (30) days after the expiration date of
the license.
(f) A licensed insurance producer who is unable to comply with
license renewal procedures due to military service or some other
extenuating circumstance may request a waiver of the license
renewal procedures. The producer may also request a waiver of any
examination requirement or any other fine or sanction imposed for
failure to comply with the license renewal procedures.
(g) An insurance producer license shall contain the licensee's
name, address, personal identification number, date of issuance, lines
of authority, expiration date, and any other information the
commissioner considers necessary.
(h) A licensee shall inform the commissioner of a change of
address not more than thirty (30) days after the change by any means
acceptable to the commissioner. The failure of a licensee to timely
inform the commissioner of a change in legal name or address shall
result in a penalty under section 12 of this chapter.
(i) To assist in the performance of the commissioner's duties, the
commissioner may contract with nongovernmental entities, including
the National Association of Insurance Commissioners (NAIC), or
any affiliates or subsidiaries that the NAIC oversees, to perform
ministerial functions, including the collection of fees related to
producer licensing, that the commissioner and the nongovernmental
entity consider appropriate.
(j) The commissioner may participate, in whole or in part, with
the NAIC or any affiliate or subsidiary of the NAIC in a centralized
insurance producer license registry through which insurance
producer licenses are centrally or simultaneously effected for states
that require an insurance producer license and participate in the
centralized insurance producer license registry. If the commissioner
determines that participation in the centralized insurance producer
license registry is in the public interest, the commissioner may adopt
rules under IC 4-22-2 specifying uniform standards and procedures
that are necessary for participation in the registry, including
standards and procedures for centralized license fee collection.
As added by P.L.132-2001, SEC.3. Amended by P.L.64-2004,
SEC.24.
IC 27-1-15.6-7.3
Insurance producer frameable certificates
Sec. 7.3. (a) The commissioner may design or have designed an
insurance producer certificate suitable for framing and display.
(b) Upon request of an insurance producer, the commissioner may
issue a certificate described in subsection (a).
(c) The commissioner may impose and collect a reasonable fee for
a certificate issued under subsection (b). The commissioner shall
deposit fees collected under this subsection into the insurance
education scholarship fund established by IC 21-12-9-5.
(d) The commissioner shall establish guidelines to implement this
section.
As added by P.L.173-2007, SEC.11. Amended by P.L.3-2008,
SEC.209.
IC 27-1-15.6-8
Nonresident producer license
Sec. 8. (a) Unless denied licensure under section 12 of this
chapter, a nonresident person shall receive a nonresident producer
license if:
(1) the person is currently licensed as a resident and in good
standing in the person's home state;
(2) the person has submitted the proper request for licensure
and has paid the fees required under section 32 of this chapter;
(3) the person has submitted or transmitted to the
commissioner:
(A) the application for licensure that the person submitted to
the person's home state; or
(B) a completed uniform application; and
(4) the person's home state awards non-resident producer
licenses to residents of Indiana on the same basis as
non-resident producer licenses are awarded to residents of other
states under this chapter.
(b) The commissioner may verify a producer's licensing status
through the Producer Database maintained by the National
Association of Insurance Commissioners and its affiliates or
subsidiaries.
(c) A:
(1) person who holds an Indiana nonresident producer's
license and moves from one state to another state; or
(2) a resident producer who moves from Indiana to another
state;
shall file a change of address with the Indiana department of
insurance and provide certification from the new resident state not
more than thirty (30) days after the change of legal residence. No fee
or license application is required under this subsection.
(d) Notwithstanding any other provision of this chapter, a person
licensed as a surplus lines producer in the person's home state shall
receive a nonresident surplus lines producer license under subsection
(a). Except as provided in subsection (a), nothing in this section
otherwise amends or supercedes IC 27-1-15.8, as added by this act.
(e) Notwithstanding any other provision of this chapter, a person
who is not a resident of Indiana and who is licensed as a limited lines
credit insurance producer or another type of limited lines producer
in the person's home state shall, upon application, receive a
nonresident limited lines producer license under subsection (a)
granting the same scope of authority as is granted under the license
issued by the person's home state.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-9
Prelicensing education; exemptions
Sec. 9. (a) An individual who applies for an insurance producer
license in Indiana and who was previously licensed for the same lines
of authority in another state is not required to complete any
prelicensing education or examination. However, the exemption
provided by this subsection is available only if:
(1) the individual is currently licensed in the other state; or
(2) the application is received within ninety (90) days after the
cancellation of the applicant's previous license and:
(A) the other state issues a certification that, at the time of
cancellation, the applicant was in good standing in that state;
or
(B) the state's Producer Database records that are maintained
by the National Association of Insurance Commissioners, its
affiliates, or its subsidiaries, indicate that the producer is or
was licensed in good standing for the line of authority
requested.
(b) If a person is licensed as an insurance producer in another
state and moves to Indiana, the person, to be authorized to act as an
insurance producer in Indiana, must make application to become a
resident licensee under section 6 of this chapter within ninety (90)
days after establishing legal residence in Indiana. However, the
person is not required to take prelicensing education or examination
to obtain a license for any line of authority for which the person held
a license in the other state unless the commissioner determines
otherwise by rule.
(c) An individual who:
(1) has attained the designation of chartered life underwriter,
certified financial planner, or chartered financial consultant;
and
(2) applies for an insurance producer license in Indiana
requesting qualification under sections:
(A) 7(a)(1);
(B) 7(a)(2); or
(C) 7(a)(5);
of this chapter;
is not required to complete prelicensing education, and is required to
take only the portion of the examination required under section 5(b)
of this chapter that pertains to Indiana laws and rules.
(d) An individual who has:
(1) attained the designation of chartered property and casualty
underwriter, certified insurance counselor, or accredited advisor
in insurance; and
(2) applies for an insurance producer license in Indiana
requesting qualification under sections:
(A) 7(a)(3);
(B) 7(a)(4); or
(C) 7(a)(6);
of this chapter;
is not required to complete prelicensing education, and is required to
take only the portion of the examination required under section 5(b)
of this chapter that pertains to Indiana laws and rules.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-10
Use of assumed name
Sec. 10. Before an insurance producer may do business in Indiana
under any name other than the producer's legal name, the insurance
producer shall notify the commissioner of the proposed use of the
assumed name.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-11
Temporary insurance producer license
Sec. 11. (a) If the commissioner considers the issuance of a
temporary license necessary for the servicing of an insurance
business, the commissioner, without requiring an examination, may
issue a temporary insurance producer license for a period of not more
than one hundred eighty (180) days to any of the following:
(1) To the surviving spouse or court-appointed personal
representative of a licensed individual insurance producer who
dies or becomes mentally or physically disabled:
(A) to allow adequate time for the sale of the insurance
business owned by the producer;
(B) to provide for the servicing of the insurance business
until the recovery or return of the producer to the business;
or
(C) to provide for the training and licensing of new
personnel to operate the producer's business.
(2) To a member or employee of a business entity licensed as an
insurance producer, upon the death or disability of an individual
designated in the business entity application or the license.
(3) To the designee of a licensed individual insurance producer
entering active service in the armed forces of the United States
of America.
(4) To an individual in any other circumstance where the
commissioner considers the public interest to be best served by
the issuance to the individual of a temporary insurance producer
license.
(b) The commissioner may by order limit the authority of a
temporary licensee in any way considered necessary to protect
insureds and the public. The commissioner may require the
temporary licensee to have a suitable sponsor who is a licensed
producer or insurer and who assumes responsibility for all acts of the
temporary licensee and may impose other, similar requirements
designed to protect insureds and the public.
(c) The commissioner may by order revoke a temporary insurance
producer license if the interest of insureds or the public are
endangered. A temporary insurance producer license issued under
subsection (a)(1)(A) expires at the time the owner or the personal
representative disposes of the business.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-12
Penalties
Sec. 12. (a) For purposes of this section, "permanently revoke"
means that:
(1) the producer's license shall never be reinstated; and
(2) the former licensee, after the license revocation, is not
eligible to submit an application for a license to the department.
(b) The commissioner may levy a civil penalty, place an insurance
producer on probation, suspend an insurance producer's license,
revoke an insurance producer's license for a period of years,
permanently revoke an insurance producer's license, or refuse to
issue or renew an insurance producer license, or take any
combination of these actions, for any of the following causes:
(1) Providing incorrect, misleading, incomplete, or materially
untrue information in a license application.
(2) Violating:
(A) an insurance law;
(B) a regulation;
(C) a subpoena of an insurance commissioner; or
(D) an order of an insurance commissioner;
of Indiana or of another state.
(3) Obtaining or attempting to obtain a license through
misrepresentation or fraud.
(4) Improperly withholding, misappropriating, or converting
any monies or properties received in the course of doing
insurance business.
(5) Intentionally misrepresenting the terms of an actual or
proposed insurance contract or application for insurance.
(6) Having been convicted of a felony.
(7) Admitting to having committed or being found to have
committed any unfair trade practice or fraud in the business of
insurance.
(8) Using fraudulent, coercive, or dishonest practices, or
demonstrating incompetence, untrustworthiness, or financial
irresponsibility in the conduct of business in Indiana or
elsewhere.
(9) Having an insurance producer license, or its equivalent,
denied, suspended, or revoked in any other state, province,
district, or territory.
(10) Forging another's name to an application for insurance or
to any document related to an insurance transaction.
(11) Improperly using notes or any other reference material to
complete an examination for an insurance license.
(12) Knowingly accepting insurance business from an
individual who is not licensed.
(13) Failing to comply with an administrative or court order
imposing a child support obligation.
(14) Failing to pay state income tax or to comply with any
administrative or court order directing payment of state income
tax.
(15) Failing to satisfy the continuing education requirements
established by IC 27-1-15.7.
(16) Violating section 31 of this chapter.
(17) Failing to timely inform the commissioner of a change in
legal name or address, in violation of section 7(h) of this
chapter.
(c) The commissioner shall refuse to:
(1) issue a license; or
(2) renew a license issued;
under this chapter to any person who is the subject of an order issued
by a court under IC 31-14-12-7 or IC 31-16-12-10 (or
IC 31-1-11.5-13(m) or IC 31-6-6.1-16(m) before their repeal).
(d) If the commissioner refuses to renew a license or denies an
application for a license, the commissioner shall notify the applicant
or licensee and advise the applicant or licensee, in a writing sent
through regular first class mail, of the reason for the denial of the
applicant's application or the nonrenewal of the licensee's license.
The applicant or licensee may, not more than sixty-three (63) days
after notice of denial of the applicant's application or nonrenewal of
the licensee's license is mailed, make written demand to the
commissioner for a hearing before the commissioner to determine the
reasonableness of the commissioner's action. The hearing shall be
held not more than thirty (30) days after the applicant or licensee
makes the written demand, and shall be conducted under IC 4-21.5.
(e) The license of a business entity may be suspended, revoked,
or refused if the commissioner finds, after hearing, that a violation of
an individual licensee acting on behalf of the partnership or
corporation was known or should have been known by one (1) or
more of the partners, officers, or managers of the partnership or
corporation and:
(1) the violation was not reported to the commissioner; and
(2) no corrective action was taken.
(f) In addition to or in lieu of any applicable denial, suspension,
or revocation of a license under subsection (b), a person may, after
a hearing, be subject to the imposition by the commissioner under
subsection (b) of a civil penalty of not less than fifty dollars ($50)
and not more than ten thousand dollars ($10,000). A penalty imposed
under this subsection may be enforced in the same manner as a civil
judgement.
(g) A licensed insurance producer or limited lines producer shall,
not more than ten (10) days after the producer receives a request in
a registered or certified letter from the commissioner, furnish the
commissioner with a full and complete report listing each insurer
with which the licensee has held an appointment during the year
preceding the request.
(h) If a licensee fails to provide the report requested under
subsection (g) not more than ten (10) days after the licensee receives
the request, the commissioner may, in the commissioner's sole
discretion, without a hearing, and in addition to any other sanctions
allowed by law, suspend any insurance license held by the licensee
pending receipt of the appointment report.
(i) The commissioner shall promptly notify all appointing insurers
and the licensee regarding any suspension, revocation, or termination
of a license by the commissioner under this section.
(j) The commissioner may not grant, renew, continue, or permit
to continue any license if the commissioner finds that the license is
being used or will be used by the applicant or licensee for the
purpose of writing controlled business. As used in this subsection,
"controlled business" means:
(1) insurance written on the interests of:
(A) the applicant or licensee;
(B) the applicant's or licensee's immediate family; or
(C) the applicant's or licensee's employer; or
(2) insurance covering:
(A) the applicant or licensee;
(B) members of the applicant's or licensee's immediate
family; or
(C) either:
(i) a corporation, limited liability company, association, or
partnership; or
(ii) the officers, directors, substantial stockholders,
partners, members, managers, employees of such a
corporation, limited liability company, association, or
partnership;
of which the applicant or licensee or a member of the
applicant's or licensee's immediate family is an officer,
director, substantial stockholder, partner, member, manager,
associate, or employee.
However, this section does not apply to insurance written or interests
insured in connection with or arising out of credit transactions. A
license is considered to have been used or intended to be used for the
purpose of writing controlled business if the commissioner finds that
during any twelve (12) month period the aggregate commissions
earned from the controlled business exceeded twenty-five percent
(25%) of the aggregate commission earned on all business written by
the applicant or licensee during the same period.
(k) The commissioner has the authority to:
(1) enforce the provisions of; and
(2) impose any penalty or remedy authorized by;
this chapter or any other provision of this title against any person
who is under investigation for or charged with a violation of this
chapter or any other provision of this title, even if the person's
license or registration has been surrendered or has lapsed by
operation of law.
(l) For purposes of this section, the violation of any provision of
IC 28 concerning the sale of a life insurance policy or an annuity
contract shall be considered a violation described in subsection
(b)(2).
(m) The commissioner may order a licensee to make restitution if
the commissioner finds that the licensee has committed a violation
described in:
(1) subsection (b)(4);
(2) subsection (b)(7);
(3) subsection (b)(8); or
(4) subsection (b)(16).
(n) The commissioner shall notify the securities commissioner
appointed under IC 23-19-6-1(a) when an administrative action or
civil proceeding is filed under this section and when an order is
issued under this section denying, suspending, or revoking a license.
As added by P.L.132-2001, SEC.3. Amended by P.L.182-2001,
SEC.2; P.L.27-2007, SEC.26.
IC 27-1-15.6-13
No consideration given to unlicensed sellers
Sec. 13. (a) An insurance company or insurance producer shall not
pay a commission, service fee, brokerage fee, or other valuable
consideration to a person for selling, soliciting, or negotiating
insurance in Indiana if the person is required to be licensed under
this chapter and is not licensed.
(b) A person shall not accept a commission, service fee, brokerage
fee, or other valuable consideration for selling, soliciting, or
negotiating insurance in Indiana if the person is required to be
licensed under this chapter and is not licensed.
(c) Renewal commissions or other deferred commissions may be
paid to a person for selling, soliciting, or negotiating insurance in
Indiana if the person was required to be licensed under this chapter
and was licensed at the time of the sale, solicitation, or negotiation.
(d) An insurer or insurance producer may pay or assign
commissions, service fees, brokerage fees, or other valuable
consideration to an insurance agency or to a person who does not
sell, solicit, or negotiate insurance in Indiana, unless the payment
would violate IC 27-1-20-30.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-14
Insurance producer acting as agent of insurer
Sec. 14. An insurance producer shall not act as an agent of an
insurer unless the insurance producer becomes an appointed producer
of the insurer. An insurance producer who is not acting as an agent
of an insurer is not required to become appointed.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-15
Notification of termination
Sec. 15. (a) An insurer or authorized representative of an insurer
that terminates the appointment, employment, contract, or other
insurance business relationship with a producer shall notify the
commissioner not more than thirty (30) days after the effective date
of the termination using a format prescribed by the commissioner, if:
(1) the reason for termination is described in section 12 of this
chapter; or
(2) the insurer has knowledge that the producer was found by a
court, a government body, or a self-regulatory organization
authorized by law to have engaged in any of the activities
described in section 12 of this chapter.
Upon the written request of the insurance commissioner, the insurer
shall provide additional information, documents, records, and other
data pertaining to the termination or activity of the producer.
(b) If an insurer discovers, upon further review or investigation,
additional information that would have been reportable to the
commissioner under subsection (a) had the insurer known of the
existence of the additional information, the insurer or an authorized
representative of the insurer shall promptly notify the commissioner
of the additional information in a format acceptable to the
commissioner.
(c) A copy of the notification of termination of a producer that
must be provided to the commissioner under this section shall also
be provided to the producer as follows:
(1) Not more than fifteen (15) days after making the notification
required under subsection (a) or (b), the insurer shall mail a
copy of the notification to the producer at the producer's last
known address. If the producer is terminated for cause for any
of the reasons described in section 12 of this chapter, the
insurer shall provide a copy of the notification to the producer
at the producer's last known address by certified mail, return
receipt requested, postage prepaid, or by overnight delivery
using a nationally recognized carrier.
(2) Not more than thirty (30) days after the producer has
received the original or additional notification, the producer
may file written comments concerning the substance of the
notification with the commissioner. The producer shall, by the
same means used by the producer to file the written comments
with the commissioner, simultaneously send a copy of the
comments to the reporting insurer, and the comments shall
become a part of the commissioner's file and accompany every
copy of a report distributed or disclosed for any reason about
the producer as permitted under subsection (e).
(d) Immunities under this section are as follows:
(1) In the absence of actual malice, an insurer, an authorized
representative of an insurer, a producer, the commissioner, and
an organization of which the commissioner is a member and
that compiles information and makes it available to other
insurance commissioners or regulatory or law enforcement
agencies are immune from civil liability, and a civil cause of
action of any nature shall not arise against these entities or their
respective agents or employees, as a result of:
(A) a statement or information required by or provided under
this section or any information relating to a statement that
may be requested in writing by the commissioner from an
insurer or producer; or
(B) a statement by a terminating insurer to a producer or by
a producer to a terminating insurer;
limited solely and exclusively to whether a termination for
cause referred to in subsection (a) was reported to the
commissioner, provided that the propriety of any termination
for cause referred to in subsection (a) is certified in writing by
an officer or authorized representative of the insurer or
producer terminating the relationship.
(2) In any action brought against a person that may have
immunity under subdivision (1) for:
(A) making a statement required under this section; or
(B) providing information relating to a statement that may be
requested by the commissioner;
the party bringing the action must plead specifically in any
allegation that subdivision (1) does not apply because the
person making the statement or providing the information did
so with actual malice.
(3) Existing statutory or common law privileges or immunities
are not abrogated or modified by subdivision (1) or (2).
(e) Confidentiality under this section is as follows:
(1) Documents, materials, and other forms of information in the
control or possession of the department that are:
(A) furnished by:
(i) an insurer or producer; or
(ii) an employee or agent of an insurer acting on behalf of
the insurer or producer; or
(B) obtained by the commissioner in an investigation under
this section;
are confidential by law and privileged, are not subject to public
inspection and copying under IC 5-14-3-3, are not subject to
subpoena, and are not subject to discovery or admissible in
evidence in any private civil action. However, the commissioner
is authorized to use the documents, materials, or other
information in the furtherance of any regulatory or legal action
brought as a part of the commissioner's duties.
(2) Neither the commissioner nor any person who receives
confidential documents, materials, or other information
described in subdivision (1) while acting under the authority of
the commissioner may be permitted or required to testify in any
private civil action concerning the confidential documents,
materials, or information described in subdivision (1).
(3) To assist in the performance of the commissioner's duties
under this chapter, the commissioner may:
(A) share documents, materials, and other information,
including the confidential and privileged documents,
materials, and information described in subdivision (1),
with:
(i) other state, federal, and international regulatory
agencies;
(ii) the National Association of Insurance Commissioners,
its affiliates or subsidiaries; and
(iii) state, federal, and international law enforcement
authorities;
provided that the recipient agrees to maintain the
confidentiality and privileged status of the documents,
materials, or other information;
(B) receive documents, materials, and information, including
otherwise confidential and privileged documents, materials,
and information, from:
(i) the National Association of Insurance Commissioners,
its affiliates or subsidiaries; and
(ii) regulatory and law enforcement officials of other
foreign or domestic jurisdictions;
and shall maintain as confidential or privileged any
document, material, or information received with notice or
the understanding that it is confidential or privileged under
the laws of the jurisdiction that is the source of the
document, material, or information; and
(C) enter into agreements governing sharing and use of
information consistent with this subsection.
(4) Disclosure of documents, materials, and information:
(A) to the commissioner; or
(B) by the commissioner;
under this section does not result in a waiver of any applicable
privilege or claim of confidentiality in the documents, materials,
or information.
(5) This chapter does not prohibit the commissioner from
releasing final, adjudicated actions, including for cause
terminations that are open to public inspection under IC 5-14,
to a database or other clearinghouse service maintained by the
National Association of Insurance Commissioners or by its
affiliates or subsidiaries.
(f) If an insurer, an authorized representative of an insurer, or a
producer fails to report as required under this section or is found to
have reported falsely with actual malice by a court of competent
jurisdiction, the commissioner may, after notice and hearing, suspend
or revoke the license or certificate of authority of the insurer,
authorized representative, or producer, and may fine the insurer,
authorized representative, or producer under IC 27-4-1-6.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-16
Nonresident license applicant with license from other state
Sec. 16. (a) The commissioner shall waive any requirements,
except the requirements imposed by section 8 of this chapter, for a
nonresident license applicant with a valid license from the applicant's
home state if the applicant's home state awards nonresident licenses
to residents of Indiana on the same basis.
(b) A nonresident producer's satisfaction of the nonresident
producer's home state's continuing education requirements for
licensed insurance producers also satisfies Indiana's continuing
education requirements if the non-resident producer's home state
recognizes the satisfaction of the non-resident producer's home state's
continuing education requirements imposed upon producers from
Indiana on the same basis.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-17
Reports of administrative actions or criminal prosecutions against
producers
Sec. 17. (a) A producer shall report to the commissioner any
administrative action taken against the producer in another
jurisdiction or by another governmental agency in Indiana not more
than thirty (30) days after the final disposition of the matter. The
report shall include a copy of the order, consent to order, or other
relevant legal documents.
(b) Not more than thirty (30) days after an initial pretrial hearing
date, a producer shall report to the commissioner any criminal
prosecution of the producer initiated in any jurisdiction. The report
shall include a copy of the initial complaint filed, the order resulting
from the hearing, and any other relevant legal documents.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-18
Issuance of limited lines producer's license without examination
Sec. 18. The commissioner may issue a limited lines producer's
license to the following without examination:
(1) A person who is a ticket-selling producer of a common
carrier and who will act only with reference to the issuance of
insurance on personal effects carried as baggage, in connection
with the transportation provided by such common carrier.
(2) A person who will only negotiate or solicit limited travel
accident insurance in transportation terminals.
(3) A limited line credit insurance producer.
(4) A person who will only negotiate or solicit insurance under
Class 2(j) of IC 27-1-5-1.
(5) Any person who will negotiate or solicit a kind of insurance
that the commissioner finds does not require an examination to
demonstrate professional competency.
As added by P.L.132-2001, SEC.3.
IC 27-1-15.6-19
Prearranged funeral insurance
Sec. 19. (a) As used in this section, "prearranged funeral
insurance" means insurance that is used to fund any of the following:
(1) A funeral trust under IC 30-2-10 and IC 30-2-13.
(2) Any other arrangement for advance payment of funeral and
burial expenses.
(b) A person shall not sell, solicit, or negotiate prearranged
funeral insurance unless the person is licensed as either of the
following:
(1) An insurance producer with a life qualification under
section 7 of this chapter.
(2) A limited lines prod