reglab/statecodes huggingface dataset:
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 10. Dividend Preservation › 27-15-10-2. Limitations on Provisions

Sec. 2. Any dividend preservation provision may be limited to participating individual life insurance policies and participating individual annuity contracts in force or considered to be in force by the plan of conversion on the effective date of the plan of conversion for which the mutual insurer has an experience based dividend scale due, paid, or accrued by action of the board of directors of the converting mutual in the year in which the plan of reorganization is adopted. However:
(1) policies that would be included but for the fact that their recent issuance results in no dividends for an initial period may be included;
(2) policies that are in force as extended term insurance may be included; and
(3) other categories of policies and benefits not described in this subsection may be included or excluded, subject to the approval of the commissioner.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 11. Use of a Closed Block › 27-15-11-1. Applicability of Chapter

Sec. 1. This chapter applies if a closed block is used for the preservation of the reasonable dividend expectations of eligible members and other policyholders.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 11. Use of a Closed Block › 27-15-11-2. Preparation of Written Plan of Operation

Sec. 2. The converting mutual shall prepare a written plan of operation for the closed block, consistent with the requirements of this article.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 11. Use of a Closed Block › 27-15-11-3. Operation of Closed Block; Nonreversion of Assets

Sec. 3. The closed block shall be operated for the exclusive benefit of policies and contracts included in it. No costs or expenses incurred in connection with the conversion shall be charged to the closed block. Subject to termination of the closed block under section 7 of this chapter, none of the assets allocated to the closed block or the revenue derived from those assets may revert to the benefit of the stockholders of the former mutual or any parent company.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 11. Use of a Closed Block › 27-15-11-4. Sufficiency of Assets

Sec. 4. The assets allocated to the closed block, together with the revenue from the closed block, must be reasonably sufficient to:
(1) support the business in the closed block until the time the last policy in the closed block has terminated, including payment of claims and those expenses and taxes as are specified in the plan of conversion; and
(2) provide for:
(A) continuation of dividend scales in effect on the date the board of directors adopted the resolution proposing the plan of conversion, if the experience underlying those scales continues; and
(B) appropriate adjustments in the scales if the experience changes.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 11. Use of a Closed Block › 27-15-11-5. Designation of Assets

Sec. 5. The assets assigned to a closed block shall be specified in the plan of operation and must consist of:
(1) a list of designated assets of the converting mutual's general account or specified segments of the converting mutual's general account, which list shall change periodically to reflect the acquisition and disposition of assets;
(2) a designated portion of each and every asset of the converting mutual's general account or specified segments of the converting mutual's general account, which portion shall change periodically to reflect the cash flows of the closed block; or
(3) assets designated by a combination of the methods described in this section.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 11. Use of a Closed Block › 27-15-11-6. Methods for Assignment or Designation of Assets

Sec. 6. The plan of operation must specify the following:
(1) The method of assignment of closed block assets referred to in section 5 of this chapter that is being used.
(2) The methods by which the designations of assets or portions of assets are changed during the course of closed block operations.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 11. Use of a Closed Block › 27-15-11-7. Conditions for Ceasing Maintenance of Closed Block

Sec. 7. The plan of operation must provide for the conditions under which the former mutual, with the approval of the commissioner, may cease to maintain the closed block.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 11. Use of a Closed Block › 27-15-11-8. Annual Reports and Reviews of Former Mutual

Sec. 8. The former mutual shall:
(1) submit to the commissioner annual reports, in a form acceptable to the commissioner, that account for and describe the operations of the closed block; and
(2) as specified in the plan of operation, provide at least every three (3) years for reviews of, and reports and opinions on, the closed block by an independent actuary, unless otherwise directed by the commissioner.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 12. Effect of Pending Claims on the Distribution of Consideration to Members › 27-15-12-1. Delay of Distribution

Sec. 1. All or part of the consideration to be distributed to some or all of the eligible members may be delayed by more than six (6) months following the effective date of the plan of conversion if:
(1) the plan of conversion includes a provision for the establishment of a trust for that purpose; and
(2) one (1) or more of the following claims have been asserted against a converting mutual and remain unresolved at the effective date of the plan of conversion:
(A) A claim seeking the imposition of a constructive or charitable trust on assets of the converting mutual for the benefit of policyholders, members, or other identified or unidentified persons.
(B) A claim seeking distribution or return of assets, or other form of compensation, from the converting mutual to policyholders, members, or other identified or unidentified persons.
(C) A claim that arises out of or relates to the ownership interest of members of the converting mutual, or to the value of their ownership interests, including any claim that challenges a statutory transaction engaged in by the converting mutual before the effective date of the plan of conversion.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 12. Effect of Pending Claims on the Distribution of Consideration to Members › 27-15-12-2. Formation of Trust Under Trust Agreement; Beneficiaries; Satisfaction of Claims; Reports

Sec. 2. (a) At the effective date of the plan of conversion, assets adequate to satisfy a claim described in section 1 of this chapter, consisting of the consideration that otherwise would be distributed directly to eligible members, must be placed in trust under a trust agreement in a form approved by the commissioner. The trustee or trustees of the trust shall:
(1) be appointed by the board of directors of the converting mutual, subject to disapproval of any trustee by the commissioner; and
(2) consist of one (1) or more institutions authorized by Indiana law to act as corporate trustees.
(b) The beneficiaries of the trust:
(1) are the eligible members who, in the absence of the claims, would have been entitled to the consideration placed in the trust; and
(2) may consist of all of the eligible members or specified classes or groups of eligible members.
(c) Assets of the trust shall be made available to pay or otherwise satisfy the claims for which the trust has been established, the expenses of the trust in contesting or resolving those claims, and any other reasonable expenses of the trust. Upon final resolution of the claims, by judgment, settlement or otherwise, or at such other times as may be provided for in the trust agreement, the remaining assets of the trust shall be distributed to the beneficiaries in accordance with their respective interests in the trust.
(d) Until the trust has been terminated, the trustee or trustees shall prepare reports not less frequently than annually, upon termination of the trust, and at such other times as may be requested by the commissioner or the former mutual. The reports must contain information regarding the financial condition of the trust and the status of any resolved and pending claims. The reports shall be provided to the commissioner and the former mutual and the reports or summary reports shall be mailed at least annually to the beneficiaries of the trust at the expense of the trust.
(e) An interest in a trust established under this section does not constitute a security under Indiana law.
(f) The establishment of a trust or pendency of any claim described in this chapter shall not delay or affect the effectiveness of a plan of conversion or an amendment to the articles of incorporation.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 13. Initial Limits on Ownership of Shares › 27-15-13-1. Acquisition of Beneficial Ownership; Limitations

Sec. 1. (a) Except as specifically provided in a plan of conversion, for five (5) years following the effective date of the conversion no person or persons acting in concert (other than the former mutual, any parent company, or any employee benefit plans or trusts sponsored by the former mutual or a parent company) shall directly or indirectly acquire, or agree or offer to acquire, in any manner the beneficial ownership of five percent (5%) or more of the outstanding shares of any class of a voting security of the former mutual or any parent company without the prior approval by the commissioner of a statement filed by that person with the commissioner.
(b) The statement described in subsection (a) must contain the information required by IC 27-1-23-2(b) and any other information required by the commissioner.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 13. Initial Limits on Ownership of Shares › 27-15-13-2. Acquisition of Beneficial Ownership; Factors for Approval Procedure

Sec. 2. (a) The commissioner may not approve an acquisition under section 1(a) of this chapter unless the commissioner finds that:
(1) the requirements of IC 27-1-23-2(e) will be satisfied;
(2) the acquisition will not frustrate the plan of conversion or the amendment to the articles of incorporation as approved by the members and the commissioner;
(3) the boards of directors of the former mutual and any parent company have approved the acquisition; and
(4) the acquisition would be in the best interest of the present and future policyholders of the former mutual without regard to any interest of policyholders as shareholders of the former mutual or any parent company.
(b) The commissioner shall adopt rules under IC 4-22-2 to establish a procedure under which an institutional investor that is not affiliated with the former mutual or a parent company may be considered to have been approved by the commissioner under this section to acquire beneficial ownership of at least five percent (5%) or less than ten percent (10%) of the outstanding shares of any class of a voting security of the former mutual or any parent company upon the filing with the commissioner of:
(1) a certificate executed by appropriate officers of the former mutual and any parent company certifying that:
(A) the acquisition has been approved by the boards of directors of the former mutual and any parent company; and
(B) the institutional investor is not an affiliate of the former mutual or any parent company; and
(2) a certificate executed by appropriate officers of the institutional investor:
(A) certifying that the institutional investor will acquire the shares in the ordinary course of its business and not with the purpose nor with the effect of changing or influencing the control, management, or policies of the former mutual or the parent company;
(B) certifying that the institutional investor is not an affiliate of the former mutual or any parent company; and
(C) undertaking to notify the commissioner and the former mutual and any parent company in writing not less than twenty (20) business days before any change in the matters certified.
The commissioner may require the filing of any other information the commissioner considers necessary and may provide in the rules for remedies or consequences upon receipt of a notice under subdivision (2)(C), including divestiture and denial of voting rights.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 13. Initial Limits on Ownership of Shares › 27-15-13-3. Voting of Securities Subject to Acquisition

Sec. 3. A security that is:
(1) the subject of any agreement or arrangement regarding acquisition; or
(2) held, acquired, or is to be acquired;
in contravention of this chapter or of an order of the commissioner, may not be voted at any shareholders' meeting. Any action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though the securities were not issued and outstanding. However, no action taken at a meeting shall be invalidated by the voting of those securities unless the action would materially affect control of the former mutual or a person that owns or controls a majority or all of the voting securities of the former mutual or unless the courts of this state have so ordered.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 13. Initial Limits on Ownership of Shares › 27-15-13-4. Supplemental Nature of Provisions

Sec. 4. The requirements of this chapter are in addition to any other filings or approvals required by IC 27-1-23 or otherwise by law.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 14. Modified Conversion Requirements for Companies in Hazardous Financial Condition › 27-15-14-1. Qualifications for Modified Conversion; Waivers or Modifications of Notice Requirements

Sec. 1. (a) If a domestic mutual insurance company:
(1) is insolvent, as defined in IC 27-9-1-2(o);
(2) does not meet the minimum surplus requirements of IC 27-1-6-15; or
(3) in the judgment of the commissioner, is in a hazardous financial condition;
its board of directors may adopt, and the commissioner may approve, any plan of conversion and amendment to the articles of incorporation that, on the effective date of the conversion, would provide for the former mutual to have paid-in capital stock and surplus in an amount not less than the minimum requirements of IC 27-1-6-14(c) and IC 27-1-6-14(e) and an RBC level greater than its company action RBC level.
(b) The commissioner may allow waivers or material modifications of the requirement to give any notices to members and policyholders, to obtain member approval of the proposed plan of conversion or amendment to the articles of incorporation of the converting mutual, or to distribute consideration to members if the value of a converting mutual described in subsection (a) does not in the judgment of the commissioner warrant any such notices, approvals, or distribution under the circumstances, including the expenses involved in a distribution of consideration.
As added by P.L.94-1999, SEC.3. Amended by P.L.72-2016, SEC.27.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 14. Modified Conversion Requirements for Companies in Hazardous Financial Condition › 27-15-14-2. Application for Approval; Required Descriptions

Sec. 2. The application for approval of a plan of conversion and an amendment to the articles of incorporation described in section 1 of this chapter must include a description of how the converting mutual will meet the statutory surplus and capital requirements on the date the plan of conversion is completed, which may involve the issuance and sale directly to one (1) or more purchasers of the capital stock of the former mutual or of a parent company.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 14. Modified Conversion Requirements for Companies in Hazardous Financial Condition › 27-15-14-3. Approval of Application; Public Hearing

Sec. 3. The commissioner shall approve the application and permit the conversion under a plan of conversion and an amendment to the articles of incorporation described in this chapter if the commissioner finds, following a public hearing, that the plan of conversion and the amendment to the articles of incorporation are in the best interests of the members and policyholders of the converting mutual, without regard to their membership interests.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 14. Modified Conversion Requirements for Companies in Hazardous Financial Condition › 27-15-14-4. Supplemental Requirements for Modified Conversion

Sec. 4. The requirements of this chapter are in addition to, and may be combined with, any other filings, approvals, or hearings required by IC 27-1-23 or otherwise by law.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 15. Judicial Review › 27-15-15-1. Petition for Review

Sec. 1. A person who is aggrieved by an agency action of the commissioner under this article may petition for judicial review of the action under IC 4-21.5-5.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 15. Judicial Review › 27-15-15-2. Time for Filing Petitions

Sec. 2. All petitions for judicial review of, and any action challenging the validity of or arising out of:
(1) the approval or disapproval of; or
(2) any action proposed to be taken under;
any order or determination of the commissioner in connection with a plan of conversion under this article must be filed not later than thirty (30) days after the order or determination is issued by the commissioner.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 15. Judicial Review › 27-15-15-3. Action to Compel Determination

Sec. 3. A person who is aggrieved by a failure of the commissioner to act or make a determination required by this article may bring an action for mandate in the circuit court of Marion County to compel the commissioner to act or make the determination.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 16. Miscellaneous Provisions › 27-15-16-1. Parent Company

Sec. 1. A parent company under this article:
(1) shall locate its executive offices in Indiana;
(2) shall employ at least five hundred (500) persons or a substantial percentage of its workforce in Indiana;
(3) shall be organized under the laws of Indiana; and
(4) may be:
(A) a corporation organized for the purpose of serving as a holding company for the former mutual or a corporation that, before the conversion, was a subsidiary of the converting mutual; or
(B) any other existing or newly created corporation.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 16. Miscellaneous Provisions › 27-15-16-3. Hiring Professionals Necessary to Assist Commissioner's Review

Sec. 3. (a) The commissioner may, at the expense of a converting mutual that has:
(1) filed an application under this article;
(2) notified the commissioner of its intention to file an application under this article; or
(3) adopted a resolution proposing a simple plan of conversion under this article;
hire accountants, actuaries, attorneys, financial advisors, investment bankers, and other experts that are necessary to assist the commissioner in reviewing all matters under this article.
(b) The commissioner may at any time require the converting mutual to deposit an amount of money with the department in anticipation of expenses to be incurred by the commissioner under this section.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 16. Miscellaneous Provisions › 27-15-16-4. Failure to Give Notice; Good Faith Exception

Sec. 4. If a converting mutual complies substantially and in good faith with this article with respect to any required notice to members and policyholders, its failure in any case to give the notice to any person entitled to notice does not:
(1) impair the validity of actions taken under this article; or
(2) entitle the person to any injunctive or other relief.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 15. Demutualization of Mutual Insurance Companies › Chapter 16. Miscellaneous Provisions › 27-15-16-5. Abandonment of Plan of Conversion

Sec. 5. At any time before the effective date of the plan of conversion, the plan may be abandoned under provisions included in the plan of conversion filed under this article.
As added by P.L.94-1999, SEC.3.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 2. Definitions › 27-16-2-2. "Administrative Fee"

Sec. 2. (a) "Administrative fee" means the fee charged to a client by a professional employer organization for professional employer services.
(b) The term does not include any amount charged to a client by a professional employer organization for wages and salaries, benefits, worker's compensation, payroll taxes, withholding, or other assessments paid by a professional employer organization to or on behalf of a covered employee.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 2. Definitions › 27-16-2-6. "Co-Employment Relationship"

Sec. 6. "Co-employment relationship" means a relationship:
(1) between a:
(A) client and a professional employer organization; or
(B) co-employer and a covered employee; and
(2) that results from the client and the professional employer organization entering into a professional employer agreement.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 2. Definitions › 27-16-2-8. "Covered Employee"

Sec. 8. (a) "Covered employee" means an individual who is co-employed.
(b) The term includes an individual who is an officer, a director, a shareholder, a partner, or a manager of a client to the extent the professional employer organization and the client expressly agree that the individual:
(1) is described in subsection (a); and
(2) acts as an operational manager or performs day to day operational services for the client;
as reflected in the professional employer agreement.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 2. Definitions › 27-16-2-10. "Peo Group"

Sec. 10. "PEO group" means two (2) or more professional employer organizations that are majority owned or commonly controlled by the same entity, parent, or controlling person.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 2. Definitions › 27-16-2-12. "Professional Employer Agreement"

Sec. 12. "Professional employer agreement" means a written contract between a person and a professional employer organization:
(1) under which all or a majority of the person's employees become covered employees;
(2) that provides for the allocation of employer rights and obligations between the person and the professional employer organization with respect to the covered employees; and
(3) that specifies the professional employer services that will be provided.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 2. Definitions › 27-16-2-13. "Professional Employer Organization" or "Peo"

Sec. 13. (a) "Professional employer organization" or "PEO" means a person engaged in the business of providing professional employer services.
(b) The term does not include the following:
(1) An arrangement through which a person:
(A) whose principal business activity is an activity other than entering into professional employer agreements; and
(B) that does not hold the person out as a professional employer organization;
shares employees with a commonly owned company within the meaning of Section 414(b) and 414(c) of the Internal Revenue Code of 1986 (26 U.S.C. 414(b) and 26 U.S.C. 414(c)).
(2) An independent contractor arrangement through which a person:
(A) assumes responsibility for a product produced or a service performed by the person or the person's agent; and
(B) retains and exercises primary direction and control over the work performed by an individual whose services are supplied under the independent contractor arrangement.
(3) The provision of temporary help services.
As added by P.L.245-2005, SEC.7. Amended by P.L.124-2018, SEC.105.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 2. Definitions › 27-16-2-15. "Temporary Help Service"

Sec. 15. "Temporary help service" means a service consisting of a person that:
(1) recruits and hires the person's own employees, not including an officer, a manager, or a controlling person of a client to which the person's own employee is assigned by the person;
(2) identifies organizations that need the services of employees described in subdivision (1);
(3) assigns employees described in subdivision (1) to:
(A) perform work or services for organizations described in subdivision (2);
(B) support or supplement the workforces of organizations described in subdivision (2); or
(C) provide assistance in special work situations, including employee absences, skill shortages, seasonal workloads, and special assignments or projects; and
(4) customarily attempts to reassign the employees described in subdivision (1) to other organizations when an assignment described in subdivision (3) is completed.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 2. Definitions › 27-16-2-16. "Working Capital"

Sec. 16. "Working capital" means the difference between a person's:
(1) current assets; and
(2) current liabilities;
determined in accordance with generally accepted accounting principles.
As added by P.L.11-2011, SEC.40.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 3. Effect on Rights, Duties, and Obligations › 27-16-3-1. Effect on Collective Bargaining Agreement or Federal Rights or Obligations

Sec. 1. This article and a professional employer agreement do not affect, modify, or amend:
(1) a collective bargaining agreement; or
(2) rights or obligations of a client, PEO, or covered employee under:
(A) the federal National Labor Relations Act (29 U.S.C. 151 et seq.);
(B) the federal Railway Labor Act (45 U.S.C. 151 et seq.); or
(C) IC 22-7.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 3. Effect on Rights, Duties, and Obligations › 27-16-3-2. Effect on Duties

Sec. 2. This article and a professional employer agreement do not do the following:
(1) Diminish, abolish, or remove the obligations of a client to a covered employee that exist before the effective date of the professional employer agreement.
(2) Affect, modify, or amend a contractual relationship or restrictive covenant:
(A) between a covered employee and a client that is in effect on the effective date of the professional employer agreement; or
(B) that is entered into between a client and a covered employee after the effective date of the professional employer agreement.
A PEO is not responsible or liable for a dispute in connection with or arising out of a contractual relationship or restrictive covenant described in this subdivision unless the PEO has otherwise specifically agreed in writing.
(3) Create a new or additional enforceable right of a covered employee against a PEO that is not specifically provided by the professional employer agreement or this article.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 3. Effect on Rights, Duties, and Obligations › 27-16-3-3. Effect on Federal, State, or Local Requirements

Sec. 3. (a) This article and a professional employer agreement do not affect, modify, or amend a federal, state, or local:
(1) license;
(2) registration; or
(3) certification;
requirement that applies to a client or covered employee.
(b) The following apply to a federal, state, or local requirement described in subsection (a):
(1) A covered employee who is required to be licensed, registered, or certified is considered solely an employee of the client for purposes of a license, registration, or certification requirement.
(2) A PEO is not considered to engage in an occupation, a trade, a profession, or another activity that is:
(A) subject to a license, registration, or certification requirement; or
(B) otherwise regulated by a governmental entity;
solely because the PEO has entered into and maintained a co-employment relationship with a covered employee who is subject to a requirement or regulation described in clause (A) or (B).
(3) A client has the sole right of direction and control of the professional or licensed activities of a covered employee and of the client's business.
(4) Only a:
(A) covered employee; or
(B) client;
that is subject to a requirement or regulation described in subdivision (2)(A) or (2)(B) is subject to the regulation by a regulatory or governmental entity responsible for licensing, registration, certification, or other regulation of the covered employee or client.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 3. Effect on Rights, Duties, and Obligations › 27-16-3-4. Effect on Tax Credits and Incentives

Sec. 4. (a) For purposes of the determination of tax credits and other economic incentives:
(1) provided by the state or another governmental entity; and
(2) based on employment;
a covered employee is considered an employee solely of the client.
(b) A client is entitled to the benefit of any tax credit, economic incentive, or other benefit arising as the result of the employment of a covered employee of the client.
(c) If the grant or amount of an incentive is based on the number of employees a client employs:
(1) each client must be treated as employing only the covered employees actually working in the client's business operations; and
(2) covered employees working for other clients of the PEO must not be counted.
(d) A PEO shall provide, upon request by a client or an agency or a department of the state or of another governmental entity, employment information:
(1) reasonably required by an agency or a department of the state or of another governmental entity that is responsible for administration of a tax credit or economic incentive described in this section; and
(2) necessary;
to support a request, a claim, an application, or another action by a client seeking a tax credit or an economic incentive.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 3. Effect on Rights, Duties, and Obligations › 27-16-3-5. Effect on Government Contracts

Sec. 5. With respect to a bid, a contract, a purchase order, or an agreement entered into with the state or a political subdivision of the state, a client's status or certification as a:
(1) small, minority owned, disadvantaged, or woman owned business enterprise; or
(2) historically underutilized business;
is not affected because the client has entered into the professional employment agreement.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 4. Registration › 27-16-4-1. Registration Requirements

Sec. 1. (a) A person shall not:
(1) provide professional employer services;
(2) advertise that the person:
(A) is a professional employer organization; or
(B) provides professional employer services; or
(3) otherwise hold the person out as a professional employer organization;
in Indiana unless the person is registered under this article.
(b) The registration requirement specified in subsection (a) applies to a person that performs any of the activities specified in subsection (a) regardless of the person's use of any of the following terms:
(1) Professional employer organization.
(2) PEO.
(3) Staff leasing company.
(4) Registered staff leasing company.
(5) Employee leasing company.
(6) Administrative employer.
(7) Any other name.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 4. Registration › 27-16-4-2. Application

Sec. 2. (a) This section does not apply to an applicant for limited registration under section 6 of this chapter.
(b) An applicant for registration under this article shall file with the department the following information:
(1) The name or names under which the applicant conducts business.
(2) The address of the principal place of business of the applicant and the address of each office the applicant maintains in Indiana.
(3) The applicant's taxpayer or employer identification number.
(4) A list by jurisdiction of each name under which the applicant has operated in the preceding five (5) years, including any alternative names, names of predecessors, and, if known, successor business entities.
(5) A statement of ownership that includes the name and evidence of the business experience of any person that, individually or acting in concert with one (1) or more other persons, owns or controls, directly or indirectly, twenty-five percent (25%) or more of the equity interests of the applicant.
(6) A statement of management that includes the name and evidence of the business experience of any individual who serves as president, chief executive officer, or otherwise has the authority to act as senior executive officer of the applicant.
(7) Except as provided in subsections (c) and (d), a financial statement:
(A) setting forth the financial condition of the applicant as of a date not earlier than one hundred eighty (180) days before the date the financial statement is submitted to the department;
(B) prepared in accordance with generally accepted accounting principles; and
(C) audited by an:
(i) independent certified public accountant licensed to practice in the jurisdiction in which the accountant is located; or
(ii) individual who is certified under IC 25-2.1-3 or IC 25-2.1-4;
with a resulting audit report that is issued without qualification as to the status of the applicant as a going concern.
(c) If a PEO has less than twelve (12) months of operating history on which to base an audited financial statement, the PEO shall file a financial statement that has been reviewed by an:
(1) independent certified public accountant licensed to practice in the jurisdiction in which the accountant is located; or
(2) individual who is certified under IC 25-2.1-3 or IC 25-2.1-4.
(d) An applicant may apply to the department for an extension of time in which to file the audited financial statement and audit report required by subsection (b). An application under this subsection must be accompanied by a letter from the auditor described in subsection (b) specifying the reason for the requested extension and the anticipated date by which the audit will be completed.
As added by P.L.245-2005, SEC.7. Amended by P.L.11-2011, SEC.41.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 4. Registration › 27-16-4-3. Registration Deadline

Sec. 3. (a) A PEO that is operating in Indiana on January 1, 2006, shall complete the PEO's initial registration not later than July 1, 2006.
(b) An initial registration under subsection (a) is valid until the end of the PEO's first fiscal year end that occurs after December 31, 2006.
(c) A PEO that is not operating in Indiana on December 31, 2005, shall complete the PEO's initial registration before commencement of operations in Indiana.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 4. Registration › 27-16-4-4. Renewal Deadline

Sec. 4. A PEO shall, not more than one hundred eighty (180) days after the end of the PEO's fiscal year, renew the PEO's registration by filing a statement notifying the department of any changes in the information provided in the PEO's most recent registration or renewal.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 4. Registration › 27-16-4-5. Satisfaction of Requirements

Sec. 5. A PEO group may satisfy the reporting and financial requirements of this chapter on a combined or consolidated basis if each member of the PEO group guarantees the obligations under this article of each other member of the PEO group.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 4. Registration › 27-16-4-6. Limited Registration for Foreign Peos

Sec. 6. (a) A PEO that is not domiciled in Indiana is eligible for a limited registration under this article if the PEO:
(1) submits a properly executed request for limited registration on a form prescribed by the department;
(2) is licensed or registered as a professional employer organization in another state that has licensure or registration requirements that are:
(A) substantially the same as; or
(B) more restrictive than;
the requirements of this article;
(3) does not:
(A) maintain an office; or
(B) directly solicit clients located or domiciled;
in Indiana; and
(4) does not have more than fifty (50) covered employees who are employed or domiciled in Indiana on any day.
(b) A limited registration is valid for one (1) year and may be renewed.
(c) A PEO that seeks limited registration under this section shall provide to the department information and documentation necessary to show that the PEO meets the requirements of this section.
(d) IC 27-16-6 does not apply to a PEO that applies for limited registration under this section.
As added by P.L.245-2005, SEC.7. Amended by P.L.11-2011, SEC.42.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 4. Registration › 27-16-4-7. Rules

Sec. 7. The department shall adopt rules under IC 4-22-2 to provide for registration of a PEO without compliance with this chapter and IC 27-16-6 by the commissioner's acceptance of an affidavit or a certification:
(1) provided by a bonded, independent, and qualified assurance organization that has been approved by the commissioner; and
(2) that certifies the qualifications of a professional employer organization.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 4. Registration › 27-16-4-8. List of Registered Peos

Sec. 8. The department shall:
(1) maintain; and
(2) publish on the department's Internet site;
a list of PEOs that are registered under this article.
As added by P.L.245-2005, SEC.7. Amended by P.L.11-2011, SEC.43.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 4. Registration › 27-16-4-10. Confidentiality of Records

Sec. 10. All records, reports, and other information obtained from a PEO under this chapter, except to the extent necessary for the proper administration of this chapter by the department, are confidential.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 5. Fees › 27-16-5-2. Renewal Fee

Sec. 2. Upon the filing of an annual renewal of a registration under IC 27-16-4-4, a PEO shall pay a renewal fee not to exceed two hundred fifty dollars ($250).
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 5. Fees › 27-16-5-3. Limited Registration or Renewal Fee

Sec. 3. Upon initial application for limited registration under IC 27-16-4-6 and upon each annual renewal of the limited registration, a PEO shall pay a fee not to exceed two hundred fifty dollars ($250).
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 5. Fees › 27-16-5-5. Fees for Registration Under Ic 27-16-4-7

Sec. 5. A PEO seeking registration under IC 27-16-4-7 shall pay an initial and annual fee not to exceed two hundred fifty dollars ($250).
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 5. Fees › 27-16-5-6. Rules for Other Fees

Sec. 6. (a) The department shall adopt rules under IC 4-22-2 to specify any other fee to be charged under this article.
(b) A fee:
(1) for which the amount is not specified in; and
(2) that is charged under;
this article must not exceed the amount reasonably necessary for the administration of this article.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 6. Financial Requirements › 27-16-6-1. Financial Requirements

Sec. 1. (a) A PEO or PEO group shall do one (1) of the following:
(1) Maintain positive working capital, as reflected in the financial statement submitted to the department by the PEO or PEO group under IC 27-16-4.
(2) If the PEO or PEO group does not meet the requirement of subdivision (1), maintain any of the following with a minimum aggregate value in an amount that is at least sufficient to eliminate the PEO's or PEO group's negative working capital plus one hundred thousand dollars ($100,000):
(A) A surety bond.
(B) An irrevocable letter of credit.
(C) Cash.
(D) A combination of items listed in clauses (A) through (C).
(b) An instrument or cash described in subsection (a)(2) must be held by an institution designated by the department, securing payment by the PEO or PEO group of all taxes, wages, benefits, or other entitlement due to or with respect to covered employees in the event that the PEO or PEO group does not make the payments when due.
As added by P.L.245-2005, SEC.7. Amended by P.L.11-2011, SEC.44.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 6. Financial Requirements › 27-16-6-2. Calculation of Positive Working Capital

Sec. 2. An instrument or cash described in section 1(a)(2) of this chapter must not be included in the calculation of the positive working capital described in section 1(a)(1) of this chapter.
As added by P.L.245-2005, SEC.7. Amended by P.L.11-2011, SEC.45.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 7. General Requirements and Provisions › 27-16-7-1. Requirements of Co-Employment Relationships

Sec. 1. Except as provided in a professional employer agreement, the following apply to a co-employment relationship:
(1) The client:
(A) may exercise and enforce all rights; and
(B) is obligated to perform all duties and responsibilities;
that otherwise apply to an employer in an employment relationship, that are allocated to the client by the professional employer agreement and this article, and that are not specifically allocated to the PEO by the professional employer agreement and this article.
(2) The PEO:
(A) may exercise and enforce only the rights; and
(B) is obligated to perform only the duties and responsibilities;
that are required of the PEO or specifically allocated to the PEO by this article and the professional employer agreement.
(3) Unless otherwise expressly agreed by the PEO and the client in the professional employer agreement, the client retains the exclusive right to direct and control the covered employees as necessary to:
(A) conduct the client's business;
(B) discharge the client's fiduciary responsibilities; or
(C) comply with licensure requirements that apply to the client or the covered employees.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 7. General Requirements and Provisions › 27-16-7-2. Professional Employer Agreement Contents

Sec. 2. (a) Except as provided in this article, the co-employment relationship between a client and a PEO, and between a co-employer and a covered employee, is governed by the professional employer agreement.
(b) A professional employer agreement must specify the following:
(1) The allocation of rights, duties, and responsibilities described in section 1 of this chapter.
(2) Except as provided in subsection (c), that the PEO is responsible for:
(A) payment of wages to covered employees;
(B) withholding, collection, reporting, and remittance of payroll related and unemployment taxes; and
(C) to the extent the PEO has assumed responsibility in the professional employer agreement, making payments for employee benefits for covered employees.
(3) The allocation, to either the client or the PEO, of the responsibility to obtain worker's compensation coverage for covered employees from a worker's compensation insurer that is authorized under this title to conduct the business of insurance in Indiana.
(4) If the professional employer agreement allocates the responsibility under subdivision (3) to the PEO, a requirement that the PEO maintain and provide to the client, at the client's request at the termination of the professional employer agreement, records regarding loss experience related to the worker's compensation insurance coverage.
(c) A PEO is not responsible for an obligation between a client and a covered employee for payments in addition to the covered employee's salary, draw, or regular rate of pay, including bonuses, commissions, severance pay, deferred compensation, profit sharing, or vacation, sick, or other paid time off, unless the PEO has expressly agreed to assume liability for the payments in the professional employer agreement.
As added by P.L.245-2005, SEC.7.
2023 Indiana Code › Title 27. Insurance › Article 16. Professional Employer Organizations › Chapter 7. General Requirements and Provisions › 27-16-7-3. Notice to Affected Employees

Sec. 3. A PEO shall provide written notice to each covered employee who is affected by a professional employer agreement entered into by the PEO concerning the general nature of the co-employment relationship between and among the PEO, the client, and the covered employee.
As added by P.L.245-2005, SEC.7.