2012 Indiana Code
TITLE 27. INSURANCE
ARTICLE 18. SURPLUS LINES INSURANCE COMPACT
CHAPTER 14. WITHDRAWAL, DEFAULT, AND TERMINATION

IC 27-18-14
Chapter 14. Withdrawal, Default, and Termination

IC 27-18-14-1
Compact in force and binding; withdrawal
Sec. 1. (a) Subject to subsection (b), after this compact becomes effective, the compact continues in force and remains binding upon every compacting state.
(b) A compacting state may withdraw from this compact by enacting a statute specifically repealing the statute that enacted this compact into law.
As added by P.L.111-2011, SEC.1.

IC 27-18-14-2
Effect of withdrawal
Sec. 2. (a) The effective date of a compacting state's withdrawal under section 1 of this chapter is the effective date of the statute repealing the statute that enacted this compact.
(b) Except by mutual agreement of the commission and the withdrawing state, a withdrawal under subsection (a) does not apply to a tax or compliance determination that has already been approved on the date the repealing statute becomes effective, unless:
(1) the compacting state and commission mutually agree that the withdrawal applies to the tax or compliance determination; or
(2) the approval of the tax or compliance determination is rescinded by the commission.
As added by P.L.111-2011, SEC.1.

IC 27-18-14-3
Notice of repealing legislation; obligations of withdrawing state
Sec. 3. (a) The member representing a compacting state shall immediately notify the executive committee of the commission in writing upon the introduction in the state's legislature of legislation to repeal this compact in the state.
(b) Not more than ten (10) days after receiving notice under subsection (a) of the legislation under which a state would withdraw from this compact, the commission shall notify the other compacting states of the introduction of the legislation.
(c) A withdrawing state is responsible for all obligations, duties, and liabilities incurred through the effective date of the state's withdrawal, including obligations the performance of which extends beyond the effective date of withdrawal.
(d) To the extent that obligations described in subsection (c) have been released or relinquished by mutual agreement of the commission and the withdrawing state, the commission's determinations before the effective date of the state's withdrawal continue to be effective and shall be given full force and effect in the withdrawing state, unless formally rescinded by the commission.
(e) A state that has withdrawn from this compact shall be

reinstated upon the effective date of the state's legislature's reenactment of this compact.
As added by P.L.111-2011, SEC.1.

IC 27-18-14-4
Default; suspension; notice; termination
Sec. 4. (a) If the commission determines that a compacting state has defaulted in the performance of any of the compacting state's obligations or responsibilities under this compact or under the bylaws or rules, the commission shall, after notice and hearing under the bylaws, suspend all rights, privileges, and benefits conferred by this compact on the defaulting state, effective on the effective date of default as fixed by the commission.
(b) The grounds for the suspension of a compacting state for default under subsection (a) include:
(1) the failure of the compacting state to perform its obligations or responsibilities; and
(2) other grounds designated in commission rules.
(c) Upon making a determination under subsection (a), the commission shall immediately notify the defaulting state in writing of:
(1) the defaulting state's suspension, pending resolution of the default;
(2) the conditions for resolution of the default; and
(3) the period within which the defaulting state must resolve the default.
(d) If a defaulting state notified under subsection (c) fails to resolve the default within the period specified by the commission under subsection (c)(3):
(1) the defaulting state shall be terminated from this compact; and
(2) all rights, privileges, and benefits conferred on the state by this compact are terminated on the effective date of the state's termination from this compact.
(e) Decisions of the commission that have already been issued on the effective date of a state's termination under subsection (d) remain in force in the defaulting state in the same manner as they would under sections 2(b) and 3 of this chapter if the defaulting state had withdrawn voluntarily under section 1 of this chapter.
(f) Reinstatement following termination of a compacting state requires legislative reenactment of the compact in the state.
As added by P.L.111-2011, SEC.1.

IC 27-18-14-5
Dissolution of compact
Sec. 5. (a) This compact dissolves effective on the date of the withdrawal or termination for default of the compacting state whose withdrawal or termination reduces membership in the compact to one (1) compacting state.
(b) Upon the dissolution of this compact: (1) this compact becomes void and has no further force or effect; and
(2) the business and affairs of the commission shall be wound up and any surplus funds shall be distributed in accordance with the bylaws and rules.
As added by P.L.111-2011, SEC.1.