2012 Indiana Code
TITLE 27. INSURANCE
ARTICLE 18. SURPLUS LINES INSURANCE COMPACT
CHAPTER 4. ORGANIZATION OF THE COMMISSION

IC 27-18-4
Chapter 4. Organization of the Commission

IC 27-18-4-1
Commission membership
Sec. 1. (a) Each compacting state is represented on the commission by only one (1) member. A member shall be:
(1) chosen through a process and according to the qualifications and method of selection determined by the compacting state; or
(2) in the absence of provisions described in subdivision (1), appointed by the governor of the compacting state.
(b) A member may be removed or suspended from office as provided by the law of the compacting state represented by the member.
(c) A vacancy on the commission must be filled in accordance with the law of the compacting state represented by the member whose position has become vacant.
As added by P.L.111-2011, SEC.1.

IC 27-18-4-2
Member participation; voting
Sec. 2. Each member:
(1) is entitled to one (1) vote; and
(2) has an opportunity to participate in the governance of the commission in accordance with the bylaws.
As added by P.L.111-2011, SEC.1.

IC 27-18-4-3
Bylaws
Sec. 3. (a) The commission shall, by a majority vote of the members, prescribe bylaws to govern the commission's conduct as necessary or appropriate to carry out the purposes and exercise the powers of this compact, including bylaws to do the following:
(1) Establish the fiscal year of the commission.
(2) Provide reasonable procedures for the calling and conduct of meetings of the following:
(A) The commission, including the following:
(i) Attendance of a majority of members, including members' participation in meetings by telephone or other means of communication.
(ii) Ensuring reasonable advance notice of the meeting.
(iii) Providing for the right of citizens to attend each meeting with enumerated exceptions designed to protect the public's interest, the privacy of individuals, and insurers' and surplus lines licensees' proprietary information, including trade secrets.
(iv) Allowing the commission to meet in camera only after a majority of the entire membership votes to close a meeting in toto or in part.
(v) Requiring that, as soon as practicable following a

meeting described in item (iv), the commission publishes a copy of the vote to close the meeting revealing the vote of each member with no proxy votes allowed, and votes taken during the meeting.
(B) The executive committee.
(C) The operations committee.
(3) Provide reasonable standards and procedures:
(A) for the establishment and meetings of committees not described in subdivision (2); and
(B) governing general or specific delegation of authority or a function of the commission.
(4) Establish:
(A) the titles, duties, and authority; and
(B) reasonable procedures for the election;
of the officers of the commission.
(5) Provide reasonable standards and procedures for the establishment of the personnel policies and programs of the commission.
(6) Adopt a code of ethics to address permissible and prohibited activities of members and commission employees.
(7) Provide a mechanism for winding up the operations of the commission and the equitable disposition of surplus funds existing after the:
(A) termination of this compact; and
(B) payment or reservation of the commission's debts and obligations.
(b) Notwithstanding any civil service or other similar laws of a compacting state, the bylaws exclusively govern the personnel policies and programs of the commission.
(c) The commission shall publish the bylaws in a convenient form and file a copy of the bylaws and any amendment to the bylaws with the appropriate agency or officer in each of the compacting states.
As added by P.L.111-2011, SEC.1.

IC 27-18-4-4
Executive committee
Sec. 4. (a) The commission shall establish an executive committee.
(b) All actions of the executive committee, including compliance and enforcement actions, are subject to the review and ratification of the commission as provided in the bylaws.
(c) The executive committee shall consist of not more than fifteen (15) representatives, or one (1) representative for each state if there are less than fifteen (15) compacting states, who are appointed and serve for a term in accordance with the bylaws.
(d) The executive committee has the authority and duties set forth in the bylaws, which must include the following:
(1) Managing the affairs of the commission in a manner consistent with the bylaws and purposes of the commission.
(2) Establishing and overseeing: (A) an organizational structure within; and
(B) appropriate procedures for the commission to provide for the creation of;
rules and operating procedures.
(3) Overseeing the offices of the commission.
(4) Planning, implementing, and coordinating communications and activities with other state, federal, and local government organizations to advance the goals of the commission.
(e) The commission shall annually elect officers from the membership of the executive committee. The officers have the authority and duties specified in the bylaws.
(f) The executive committee may:
(1) subject to the approval of the commission; and
(2) according to terms and conditions, and for compensation, that the commission determines to be appropriate;
appoint or retain an executive director.
(g) The executive director:
(1) shall serve as secretary to the commission;
(2) shall not serve as a member of the commission; and
(3) shall hire and supervise other persons as authorized by the commission.
As added by P.L.111-2011, SEC.1.

IC 27-18-4-5
Operations committee
Sec. 5. (a) The commission shall establish an operations committee.
(b) All actions of the operations committee are subject to the review and oversight of the commission and the executive committee, and must be approved by the commission.
(c) The executive committee shall accept the determinations and recommendations of the operations committee unless good cause is shown why those determinations and recommendations should not be approved. Disputes as to whether good cause exists to reject a determination or recommendation of the operations committee must be resolved by a majority vote of the commission.
(d) The operations committee consists of not more than fifteen (15) representatives (or one (1) representative for each state if there are less than fifteen (15) compacting states) who are appointed and serve for a term according to the bylaws.
(e) The operations committee shall have responsibility for the following:
(1) Evaluating technology requirements for the clearinghouse, assessing existing systems used by state regulatory agencies and state stamping offices:
(A) to maximize the efficiency and successful integration of the clearinghouse technology systems with state and state stamping office technology platforms; and
(B) to minimize costs to the states, the state stamping offices, and the clearinghouse. (2) Making recommendations to the executive committee based on the operations committee's analysis and determination of the clearinghouse technology requirements and compatibility with existing state and state stamping office systems.
(3) Evaluating the most suitable proposals for adoption as mandatory rules, assessing the proposals for ease of integration by states and likelihood of successful implementation, and reporting to the executive committee the operations committee's determinations and recommendations.
(4) Other duties and responsibilities delegated to the operations committee by the bylaws, the executive committee, or the commission.
(f) All representatives of the operations committee must be individuals who have extensive experience or employment in the surplus lines insurance business, including executives and attorneys employed by:
(1) surplus lines insurers;
(2) surplus lines licensees;
(3) law firms;
(4) state insurance departments; or
(5) state stamping offices.
(g) Operations committee representatives from compacting states that use the services of a state stamping office shall appoint the chief operating officer or a senior manager of the state stamping office to the operations committee.
As added by P.L.111-2011, SEC.1.

IC 27-18-4-6
Legislative committee
Sec. 6. (a) A legislative committee comprised of state legislators or state legislators' designees shall be established to monitor the operations of and make recommendations to the commission, including the executive committee.
(b) The bylaws must determine the manner of selecting the members of the legislative committee and the term of office of the legislative committee members.
(c) Before the commission adopts any:
(1) uniform standard;
(2) revision to the bylaws;
(3) annual budget; or
(4) other significant matter as provided in the bylaws;
the executive committee shall consult with and report to the legislative committee.
As added by P.L.111-2011, SEC.1.

IC 27-18-4-7
Advisory committees
Sec. 7. The commission may establish additional advisory committees, as the bylaws provide, for carrying out the commission's functions. As added by P.L.111-2011, SEC.1.