Key Takeaways
- The Indiana Department of Insurance (IDOI) regulates all P&C insurance activities under Title 27 of the Indiana Code
- The Insurance Commissioner is appointed by the Governor to oversee licensing, rate review, and market conduct
- Indiana uses a file-and-use system for most P&C insurance rates, allowing insurers to use rates immediately upon filing
- The Indiana Insurance Guaranty Association (IIGA) protects policyholders if their insurer becomes insolvent
- Indiana requires fingerprinting and background checks for all insurance license applicants
Indiana Department of Insurance (IDOI)
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The Indiana Department of Insurance (IDOI) is the state agency responsible for regulating the Property & Casualty insurance industry in Indiana. The IDOI operates under the authority of Title 27 of the Indiana Code.
The Insurance Commissioner
The Insurance Commissioner is:
- Appointed by the Governor with confirmation by the Indiana Senate
- Responsible for enforcing Title 27 (Insurance Code) and Title 760 (Administrative Code)
- Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
- Required to maintain office in Indianapolis
Commissioner Powers for P&C Insurance
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rate Review | Review filed rates under file-and-use system |
| Market Conduct | Examine insurer business practices |
| Enforcement | Investigate and prosecute violations |
| Consumer Protection | Handle complaints and protect policyholders |
| Rulemaking | Adopt regulations under Title 760 |
Rate Regulation System
Indiana uses a file-and-use system for most P&C insurance rates:
File-and-Use Characteristics
- Immediate Use: Insurers may use rates immediately upon filing with IDOI
- Commissioner Review: IDOI reviews rates after implementation
- Disapproval Authority: Commissioner can disapprove rates found to be inadequate, excessive, or unfairly discriminatory
- No Prior Approval: Unlike some states, rates don't require approval before use (with some exceptions)
Rate Standards
Indiana law requires that P&C insurance rates must be:
- Adequate - Not so low as to threaten solvency
- Not Excessive - Not so high as to lead to unreasonable profits
- Not Unfairly Discriminatory - Similar risks should be charged similar rates
Exam Tip: Remember Indiana's file-and-use system allows immediate implementation of rates. This is different from prior approval states.
Indiana Insurance Guaranty Association (IIGA)
The Indiana Insurance Guaranty Association (IIGA) provides protection to policyholders when an insurer becomes insolvent.
IIGA Coverage
| Coverage Type | Limit |
|---|---|
| Property Damage | $300,000 per occurrence |
| Liability Claims | $300,000 per claimant |
| Homeowners | $300,000 per dwelling |
| Auto Physical Damage | $300,000 per vehicle |
IIGA Exclusions
- First-party losses over coverage limits
- Losses to self-insurers
- Some commercial policies
- Surplus lines insurance
IDOI Organization
IDOI operates through several key divisions:
- Producer Licensing Division - Handles agent/broker licensing via Pearson VUE
- Financial Regulation Division - Reviews insurer financial condition
- Market Conduct Division - Examines insurer practices
- Consumer Services Division - Handles complaints and inquiries
- Legal Division - Prosecutes violations and represents IDOI
What rate filing system does Indiana use for most P&C insurance?
What is the maximum coverage limit provided by the Indiana Insurance Guaranty Association (IIGA) for property damage per occurrence?
How is the Indiana Insurance Commissioner selected?