Indiana Insurance Code: Core Laws for Licensed Producers

Indiana's insurance legal framework is built on Indiana Code, Title 27 — administered by the Indiana Department of Insurance (IDOI). What makes Indiana's framework most distinctive is the combination of the modified comparative fault with a 51% bar (IC 34-51-2 — the same general structure as MN/CO but at Indiana's specific 51% threshold), UM/UIM automatically included in all auto policies (can be rejected in writing — unlike Maryland where UM cannot be waived), no PIP mandate (at-fault state; MedPay optional), HIP 2.0 (Healthy Indiana Plan) with POWER accounts as Indiana's distinctive Medicaid expansion, and the Indiana Compensation Rating Bureau (ICRB) as Indiana's independent workers' comp rating bureau. Add Healthcare.gov (federal marketplace — not state-based), the July 2024 Annuity Best Interest rule, and Indiana's 3.05% flat income tax (one of the lowest nationally) — and Indiana's insurance and economic landscape is more distinctive than its Midwest profile suggests. Here's what licensed Indiana producers need to know.

Indiana Insurance Legal Framework

IDOI Commissioner Authority

IDOI contacts:

311 West Washington Street, Suite 103, Indianapolis, IN 46204-2787

317-232-2389; [email protected]; in.gov/idoi

Commissioner authority:

License, suspend, revoke producers and insurers

Market conduct examinations

Issue cease and desist orders; impose civil penalties

Company Services Division: regulates workers' comp insurers and ICRB

Producer Licensing (IC 27-1-15.6)

Core provisions:

PLE: 20 hours per line; 6-month validity; bring Certificate to exam; designation exemptions (email IDOI; exam still required)

Pearson VUE exam: $69; 70%; 48-hr retake; 1 OnVUE; Ivy Tech/PVue/military sites; 6-month window

Gemalto fingerprinting: ~$47.35

Application: Sircon or NIPR; $40; 5-7 days; 6-month apply window

Temporary license: 180 days

Renewal: 2 years; last day birth month; $40; late $160

CE: 24 hours (3 Ethics); professional org up to 2 hours (IC 27-1-15.7-2.4)

Annuity Best Interest: 4-hour one-time (760 IAC 1-72-4.5; July 1, 2024)

License grounds for action:

Misrepresentation; violation of Indiana law; misappropriation; incompetence; prior action; fraud

Indiana Auto Insurance (IC 34-51-2 + Title 9 Motor Vehicle Law)

Indiana is an at-fault state.

25/50/25 liability minimums (confirmed by Indiana BMV):

$25,000 bodily injury per person

$50,000 bodily injury per accident

$25,000 property damage

Modified comparative fault — Indiana's distinctive tort standard: Indiana Comparative Fault Act (IC 34-51-2):

51% bar: Plaintiff at more than 50% fault → zero recovery from defendant

Plaintiff at 50% or less fault → recovery reduced proportionally by fault percentage

This is the 51% bar standard — similar to Minnesota's 50% bar but with Indiana's specific threshold

UM/UIM:

Required to be offered in all Indiana auto policies

Automatically included unless rejected in writing — unique structure

UM: $25,000 per person / $50,000 per accident (bodily injury); $25,000 PD

UIM: $50,000 per person bodily injury

Rejection must be in writing; experts strongly advise against rejection given ~16% IN uninsured driver rate

PIP: NOT required in Indiana. MedPay available as add-on.

Diminished value: Indiana is 1 of 15 states allowing diminished value claims against at-fault driver's insurer (6-year statute of limitations).

Auto accident SOL: 2 years from date of injury (IC 34-11-2-4).

INAIP (Indiana Auto Insurance Plan): Assigned risk pool for high-risk drivers who cannot obtain standard market coverage; any Indiana licensed producer can place clients.

Indiana Workers' Compensation (IC 22-3)

Coverage threshold: 1+ employee (full-time and part-time)

Indiana Compensation Rating Bureau (ICRB):

NOT NCCI — Indiana is an independent bureau state

Private, non-profit, unincorporated association of all Indiana workers' comp carriers

Administers classification system, statistical plan, experience rating (IC 27-7-2-20)

All Indiana workers' comp carriers must adhere to ICRB-filed rates and classifications (IC 27-7-2-20(a))

Indiana rates among the 4th lowest nationally

Administered by: Workers' Compensation Board of Indiana — separate from IDOI

Private competitive market: No state monopoly fund. Travelers is the residual market (state fund) carrier for employers who cannot obtain voluntary market coverage.

Non-compliance (IC 22-3-4-13):

Class A infraction

$100/day civil penalty

Misdemeanor: up to 1 year prison + $5,000 fine

Failure to report injury: Class C infraction; potential $20,000 bad faith fine

Exclusive remedy (IC 22-3-2-6): Workers' comp is the exclusive remedy for covered work-related injuries — employees cannot sue employers in tort for covered injuries.

Medical fee schedule: Capped at 200% of Medicare reimbursement rate for medical facilities.

TTD benefits: 2/3 average weekly wage; max $804/week (for injuries on/after July 1, 2023).

Indiana Health Insurance

Healthcare.gov: Indiana's ACA marketplace. NOT state-based. Standard federal open enrollment calendar.

HIP 2.0 (Healthy Indiana Plan 2.0): Medicaid expansion for adults up to 138% FPL:

POWER accounts (Personal Wellness and Responsibility Accounts)

HIP Plus: For POWER account contributors — enhanced benefits

HIP Basic: For non-contributors — more limited benefits; subject to lockout penalties

Distinctively Indiana — no other comparison state has equivalent POWER account structure

No Indiana individual mandate — no state tax penalty for being uninsured.

5 Frequently Asked Questions

• What is Indiana's 51% bar and how does it apply in practice? IC 34-51-2 creates a modified comparative fault standard where a plaintiff is completely barred if found more than 50% at fault in an accident. If exactly 50% at fault, the plaintiff can recover 50% of damages. If 49% at fault, the plaintiff recovers 51% of damages. Only when fault exceeds 50% (reaches 51% or more) is recovery completely barred. This "51% bar" is a common structure in Midwest states and is tested as a core Indiana P&C state law fact.
• How does Indiana's UM/UIM auto-inclusion work? Indiana law requires insurers to include UM and UIM coverage automatically in every auto policy — but allows policyholders to reject this coverage in writing at the time of purchase. Unlike Maryland (where UM cannot be waived at all), Indiana allows rejection. Unlike states where UM is purely optional (no automatic inclusion), Indiana starts from an included position. The practical advisory implication: every Indiana auto client has UM/UIM unless they specifically rejected it in writing — advisors should confirm whether clients knowingly rejected or simply didn't understand the option.
• What makes Indiana's ICRB distinctive from NCCI states? In NCCI states, the National Council on Compensation Insurance sets the national classification system, statistical plan, and experience rating used by all carriers. Indiana's ICRB is a separate, Indiana-specific rating organization — meaning Indiana's class codes, rates, and experience modifiers may differ from the NCCI system used in Maryland, New Jersey, and most other comparison states. Producers who specialize in Indiana workers' comp need ICRB-specific knowledge, not just NCCI general knowledge.
• What is Indiana's diminished value allowance and how does it affect advisory? Indiana is one of approximately 15 states where an at-fault driver can be held liable for the diminished value of the other party's vehicle — the reduction in resale value that occurs when a vehicle has been in an accident even after complete repair. Indiana's 6-year statute of limitations for diminished value claims is among the longer windows nationally. Advisory implication: Indiana auto clients who have been hit by at-fault drivers should understand they may have a diminished value claim in addition to property damage repair claims.
• Does Indiana have any unique provisions for agricultural workers in the workers' comp system? Indiana Code 22-3-2-2 has specific agricultural exemptions — verify current exemption thresholds at the Workers' Compensation Board of Indiana at in.gov/wcb. Agricultural workers' comp coverage is a common area of confusion for farm employers in Indiana. Producers serving Indiana agricultural clients should understand the current exemption thresholds and when farm worker coverage is required vs. optional.

Build Your Career on Strong Indiana Compliance Knowledge

IC 27-1-15.6, modified comparative fault, HIP 2.0, ICRB, and the Annuity Best Interest rule form the foundation of Indiana insurance practice. JustInsurance's IDOI-approved Indiana courses cover the Insurance Code in depth.

Enroll today and build your Indiana insurance career on solid compliance ground.