Indiana Administrative Code › Title 760 - DEPARTMENT OF INSURANCE › Article 1 - GENERAL PROVISIONS › Rule 73 - Professional Employer Organizations › Section 73-2 - Registration requirements

Current through July 10, 2024
Authority: IC
				  27-16-4-7; IC
				  27-16-5-4;
				  IC
				  27-16-5-6;
				  IC
				  27-16-8-4
Affected: IC 27-16
Sec. 2.
(a) A PEO
				doing business in Indiana must be registered with the department. The PEO shall
				submit an application on a form prescribed by the department. The application
				shall include the following information:
(1)
				The name or names under which the applicant conducts business.
(2) A copy of the applicant's articles of
				incorporation or other business organization documents.
(3) The address of:
(A) the principal place of business of the
				applicant; and
(B) each office the
				applicant maintains in Indiana.
(4) The applicant's taxpayer or employer
				identification number.
(5) A list
				by jurisdiction of each name under which the applicant has operated in the
				preceding five (5) years, including any:
(A)
				alternative names;
(B) names of
				predecessors; and
(C) if known,
				successor business entities.
(6) A detailed explanation of any adverse
				regulatory actions taken by any state or federal regulatory law enforcement or
				regulatory agency against the applicant. An adverse regulatory action means
				any:
(A) criminal conviction;
(B) regulatory fine;
(C) cease and desist order;
(D) prohibition order; or
(E) suspension, probation, or revocation of a
				license or registration.
(7) A list of each 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.
(8) The
				name and business experience of any individual who:
(A) serves as president or chief executive
				officer; or
(B) otherwise has the
				authority to act as senior executive officer of the applicant.
If the PEO maintains a health benefit plan that is not fully
				  insured, the application shall include NAIC biographical affidavits of any
				  managerial person for the health benefit plan.
(9) A financial statement reviewed by an
				independent person for the applicant's most recent fiscal year prepared:
(A) in accordance with generally accepted
				accounting principles; and
(B) by
				an independent certified public accountant licensed to practice in the
				jurisdiction in which the accountant is located.
A PEO that maintains a health benefit plan that is not fully
				  insured shall submit a financial statement that is audited rather than
				  reviewed.
(10) A
				statement of whether the applicant intends to provide health benefits to its
				employees and whether the health benefits will be fully insured or not fully
				insured.
(A) If the health benefits will be
				fully insured, the PEO shall provide the following information:
(i) The name of the insurance
				company.
(ii) The insurance
				producer through which the coverage was purchased.
(iii) The effective dates of the
				coverage.
(B) If the
				health benefits will not be fully insured, the applicant must provide proof of
				compliance with section 7 of this rule.
(11) Verification that the applicant complies
				with the workers compensation laws of Indiana and a list of its Indiana
				clients.
(12) Verification that the
				PEO has a minimum net worth of fifty thousand dollars ($50,000) or a bond
				approved by the department with a market value of at least fifty thousand
				dollars ($50,000). The bond must be held by a depository designated by the
				department securing payment by the PEO of all taxes, wages, benefits, or other
				entitlements due to or with respect to employees in the event the PEO does not
				make the payment when due. A PEO that maintains a health benefit plan that is
				not fully insured must have a fidelity bond even if it has a minimum net worth
				of fifty thousand dollars ($50,000). The fidelity bond shall cover all persons
				with responsibility for the health benefit plan covering acts of dishonesty in
				the greater of the following amounts based upon the expected amounts for the
				upcoming fiscal year:
(A) Ten percent (10%) of
				the premiums and contributions received by the health benefit plan.
(B) Ten percent (10%) of the claims
				paid.