Receipt of proof of financial responsibility and surcharge;
timeliness of compliance; penalties
Sec. 5. (a) Except as provided in subsection (b), the receipt of
proof of financial responsibility and the surcharge constitutes
compliance with section 2 of this chapter:
(1) as of the date on which they are received; or
(2) as of the effective date of the policy;
if this proof is filed with and the surcharge paid to the department of
insurance not later than ninety (90) days after the effective date of
the insurance policy.
(b) If an insurer files proof of financial responsibility and makes
payment of the surcharge to the department of insurance at least
ninety-one (91) days but not more than one hundred eighty (180)
days after the policy effective date, the health care provider is in
compliance with section 2 of this chapter if the insurer demonstrates
to the satisfaction of the commissioner that the insurer:
(1) received the premium and surcharge in a timely manner; and
(2) erred in transmitting the surcharge in a timely manner.
(c) If the commissioner accepts a filing as timely under subsection
(b), the filing must, in addition to any penalties under IC 34-18-5-3,
be accompanied by a penalty amount as follows:
(1) Ten percent (10%) of the surcharge, if the proof of financial
responsibility and surcharge are received by the commissioner
at least ninety-one (91) days and not more than one hundred
twenty (120) days after the original effective date of the policy.
(2) Twenty percent (20%) of the surcharge, if the proof of
financial responsibility and surcharge are received by the
commissioner at least one hundred twenty-one (121) days and
not more than one hundred fifty (150) days after the original
effective date of the policy.
(3) Fifty percent (50%) of the surcharge, if the proof of
financial responsibility and surcharge are received by the
commissioner at least one hundred fifty-one (151) days and not
more than one hundred eighty (180) days after the original
effective date of the policy.
As added by P.L.1-1998, SEC.13. Amended by P.L.91-1998, SEC.21;
P.L.111-1998, SEC.5; P.L.1-1999, SEC.69.
Last modified: May 24, 2006