Indiana Administrative Code › Title 760 - DEPARTMENT OF INSURANCE › Article 1 - GENERAL PROVISIONS › Rule 75 - School Trusts › Section 75-3 - Certificate of registration

Current through July 10, 2024
Authority: IC
				  20-42.5-2-1
Affected: IC 4-21.5-5; IC 27-1-3.1; IC
				  27-1-13-3
Sec. 3.
(a) A risk
				pool may not engage in business in Indiana without first obtaining a
				certificate of registration from the department.
(b) To obtain a certificate of registration,
				a risk pool shall submit an application for a certificate of registration. The
				application shall be on a form prescribed by the department. The application
				shall be completed and submitted along with the following information:
(1) Copies of all current articles, bylaws,
				participation agreements, trusts, and other documents describing the rights and
				obligations of risk pool participants.
(2) The most recent audited financial
				statement or, in the case of a start-up operation, a pro forma financial
				statement of the risk pool for the next twelve (12) months.
(3) Proof of a fidelity bond protecting the
				money, securities, and other property of the risk pool. Coverage shall be at
				least equal to the insuring agreements of employee theft or employee
				dishonesty. The definition of "employee" shall be broadened to include the
				following:
(A) Leased employees.
(B) Agents.
(C) Noncompensated officers.
(D) Students.
(E) Volunteer workers.
(F) Designated agents.
The bond shall be written for at least the suggested minimum
				  amount specified in the formula presented in the NAIC examiner's
				  handbook.
(4) A
				business plan for the risk pool.
(5) A feasibility study in compliance with
				section 2 of this rule.
(6) A
				signed statement from all of the founding participants that they have read the
				feasibility study and have individually concluded they wish to proceed with the
				creation of, and participation in, the risk pool.
(7) Copies of the following:
(A) Specimen coverage forms, rules, rates to
				be charged, and underwriting guides.
(B) All insurance in force.
(C) Organizational chart illustrating all
				entities affiliated with the risk pool.
(D) Agreements with service
				providers.
(E) Stop loss, excess,
				and reinsurance agreements, which shall include the stop loss attachment point
				and aggregate retention.
(F) If a
				risk pool offers worker's compensation through an insurer, a certificate of
				insurance from an insurance company as required by section 5(c) of this
				rule.
(8) A statement of
				the costs for coverage, which must include an itemization of amounts for
				administration, reserves, and other expenses associated with operation of the
				risk pool, as required by section 6 of this rule.
(9) A statement of the risk pool's
				contingency provisions for financing in the event of any of the following:
(A) Unexpectedly costly or ineffective risk
				financing.
(B) Ongoing expenses
				above budgeted amounts.
(C) Outlays
				for unexpected or excessive losses.
(D) Income loss or expenses
				incurred.
(E) Adverse loss
				experience incurred from withdrawal of risk pool participants.
(10) Any assessment formula used
				in subdivision (9) for determining the allocation of amounts needed between and
				among risk pool participants.
(11)
				The risk pool's:
(A) formulas for reallocation
				and reassessment when adding or deleting members;
(B) formulas for assessment of risk pool
				participants' contributions;
(C)
				dividend payment policy and dividend allocation formula; and
(D) formula for reassessment or reallocation
				upon termination or liquidation of the risk pool.
(12) Names and addresses of the following:
(A) The educational service center or centers
				associated with the risk pool.
(B)
				The members of the board of trustees of the risk pool.
(13) Biographical affidavits submitted on the
				form prescribed by the NAIC for insurers for the following:
(A) The members of the board of
				trustees.
(B) The trust
				administrator and those performing:
(i)
				actuarial;
(ii) financial;
(iii) legal;
(iv) loss control;
(v) underwriting; and
(vi) claims;
functions to be used by the risk pool.
(C) All other persons with
				decision making authority for the risk pool.
(14) The application fee required by section
				15 of this rule.
(15) A copy of all
				proposed marketing materials.