in-20250409-IR-760250163RAA: 760 IAC 6-1-1

TITLE 760 DEPARTMENT OF INSURANCE Regulatory Analysis LSA Document #25-163 I. Description of Rule II. Fiscal Impact Analysis III. Impacted Parties IV. Changes in Proposed Rule 760 IAC 6-1-1 Adds that the rule applies to fees imposed by the department that are not otherwise set as a specific amount in Indiana Code or rule. This will eliminate confusion between rule and statue when there may have previously been conflicting amounts. 760 IAC 6-1-2 Adds the commissioner’s ability to charge an administrative fee between $25,000 and $100,000 after considering factors set in statute, the size and complexity of the domestic insurer, and whether the domestic insurer is an insurance holding company system under Indiana Code. Adding this to regulation will allow domestic insurers to know the possible fee they may be charged. 760 IAC 6-1-3 Adds the insurance producer prelicensing fee to rule. These fees are reasonable to help offset the administrative costs of reviewing applications. 760 IAC 6-1-4 Adds the bail agent prelicensing and course provider fee. These fees are to help support the enforcement and administration of Indiana bail law. 760 IAC 6-1-5 Adds the temporary emergency independent adjuster licensing fee. This fee amount is used to offset the administrative costs of collecting and reviewing applications. 760 IAC 6-1-6 Adds the insurance administrator fees. The fees charged are reasonable to help offset the administrative costs related to the collection and review of applications and annual reports filed by insurance administrators. 760 IAC 6-1-7 Adds the navigator and application organization fees. The various fees charged to navigator and applications organizations are used to help offset the administrative costs related to reviewing applications, renewals and transfers of the various registrations under Indiana law relating to navigator and application organizations. 760 IAC 6-1-8 Adds the foreign risk retention group fees. The fee is used to offset some of the administrative expenses in processing the applications. 760 IAC 6-1-9 Adds the surcharge for physicians and hospitals. The penalties and surcharges collected are deposited in the Patient’s Compensation Fund. Civil penalties assessed on the hospitals are intended to reflect increased risk and encourage hospitals to implement risk management systems. 760 IAC 6-2-1 Adds that the rule applies to fines and civil penalties imposed by the department that are not otherwise set as a specific amount in Indiana Code or rule. This will eliminate confusion between rule and statue when there may have previously been conflicting amounts. 760 IAC 6-2-2 Adds a requirement that the commissioner must consider mitigating and aggravating factors set forth in the rule and adjust the base violation penalty by those factors. This will ensure the fair assessment of the penalties based on the mitigating and aggravating factors. 760 IAC 6-2-3 Adds the mitigating factors to be considered when assessing a fine or civil penalty. These factors will ensure a fair assessment of any fine or penalty by allowing an individual to show they cooperated in addressing the violation. 760 IAC 6-2-4 Adds the aggravating factors to be considered when assessing a fine or civil penalty. These factors will allow the commissioner to increase the base amount of a fine or penalty to deter future acts that may be similar in nature. 760 IAC 6-2-5 Adds the civil penalty schedule base amounts. Adding these amounts into a rule will allow clarity on the base fines and penalties that an individual may be charged for various violations. Adding this table also will ensure compliance with HEA 1623 (2023). 760 IAC 6-2-6 Adds a clause stating that nothing in the rule shall require the commissioner to assess a civil penalty for a violation. This gives the commissioner the ability to not charge a fine or penalty for a harmless error by an individual. V. Benefit Analysis VI. Cost Analysis VII. Sources of Information VIII. Regulatory Analysis IX. Contact Information of Staff to Answer Substantive Questions Notice of First Public Comment Period: 20250409-IR-760250163FNA Notice of Determination Received: March 17, 2025