Section 27-6-8-11.5 - High net worth insureds; financial information(a) The association is not obligated to pay a first party claim by a high net worth insured described in section 4(a)(5)(A) of this chapter.(b) The association has the right to recover from a high net worth insured described in section 4(a)(5)(B) of this chapter all amounts paid by the association to or on behalf of the high net worth insured, regardless of whether the amounts were paid for indemnity, defense, or otherwise.(c) The association is not obligated to pay a claim that:(1) would otherwise be a covered claim;(2) is an obligation to or on behalf of a person who has a net worth greater than the net worth allowed by the insurance guaranty association law of the state of residence of the claimant at the time specified by the applicable law of the state of residence of the claimant; and(3) has been denied by the association of the state of residence of the claimant on the basis described in subdivision (2).(d) The association shall establish reasonable procedures, subject to the approval of the commissioner, for requesting financial information from insureds: (1) on a confidential basis; and(2) in the application of this section.(e) The procedures established under subsection (d) must provide for sharing of the financial information obtained from insureds with: (1) any other association that is similar to the association; and(2) the liquidator for an insolvent insurer; on the same confidential basis.
(f) If an insured refuses to provide financial information that is:(1) requested under the procedures established under subsection (d); and(2) available; the association may, until the time that the financial information is provided to the association, consider the insured to be a high net worth insured for purposes of subsections (a) and (b).
(g) In an action contesting the applicability of this section to an insured that refuses to provide financial information under the procedures established under subsection (d), the insured bears the burden of proof concerning the insured's net worth at the relevant time. If the insured fails to prove that the insured's net worth at the relevant time was less than the applicable amount set forth in section 4(a)(5)(A) or 4(a)(5)(B) of this chapter, the court shall award to the association the association's full costs, expenses, and reasonable attorney's fees incurred in contesting the claim.Amended by P.L. 158-2024,SEC. 22, eff. 7/1/2024.Added by P.L. 52-2013, SEC. 8, eff. 7/1/2013.