Ind. Code » Title 34
Indiana Code

Ind. Code § 34-18-4-1 (2025)

Establishment of financial responsibility

✓ 2025 Indiana Code: the 2026 session is not included
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     Sec. 1. Financial responsibility of a health care provider and the provider's officers, agents, and employees while acting in the course and scope of their employment with the health care provider may be established under subdivision (1), (2), or (3):

(1) By the health care provider's insurance carrier filing with the commissioner proof that the health care provider is insured by a policy of malpractice liability insurance in at least the amount specified in IC 34-18-14-3(b) per occurrence and three (3) times that amount in the annual aggregate, except for the following:

(A) If the health care provider is a hospital, as defined in this article, the minimum annual aggregate insurance amount is as follows:

(i) For hospitals of not more than one hundred (100) beds, twenty (20) times the amount specified in IC 34-18-14-3(b).

(ii) For hospitals of more than one hundred (100) beds, thirty (30) times the amount specified in IC 34-18-14-3(b).

(B) If the health care provider is a health maintenance organization (as defined in IC 27-13-1-19) or a limited service health maintenance organization (as defined in IC 27-13-34-4), the minimum annual aggregate insurance amount is seven (7) times the amount specified in IC 34-18-14-3(b).

(C) If the health care provider is a health facility, the minimum annual aggregate insurance amount is as follows:

(i) For health facilities with not more than one hundred (100) beds, three (3) times the amount specified in IC 34-18-14-3(b).

(ii) For health facilities with more than one hundred (100) beds, five (5) times the amount specified in IC 34-18-14-3(b).

(2) By filing and maintaining with the commissioner cash or surety bond approved by the commissioner in the amounts set forth in subdivision (1).

(3) If the health care provider is a hospital or a psychiatric hospital, by submitting annually a verified financial statement that, in the discretion of the commissioner, adequately demonstrates that the current and future financial responsibility of the health care provider is sufficient to satisfy all potential malpractice claims incurred by the provider or the provider's officers, agents, and employees while acting in the course and scope of their employment up to a total of the amount specified in IC 34-18-14-3(b) per occurrence and annual aggregates as follows:

(A) For hospitals of not more than one hundred (100) beds, twenty (20) times the amount specified in IC 34-18-14-3(b).

(B) For hospitals of more than one hundred (100) beds, thirty (30) times the amount specified in IC 34-18-14-3(b).

The commissioner may require the deposit of security to assure continued financial responsibility.

[Pre-1998 Recodification Citation: 27-12-4-1.]

As added by P.L.1-1998, SEC.13. Amended by P.L.111-1998, SEC.6; P.L.182-2016, SEC.5.

 

Notes of Decisions
Cited in 3 cases, 1999–2013 · leading case: Med. Assurance of Indiana v. McCarty, 808 N.E.2d 737 (Ind. Ct. App. 2004).
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Med. Assurance of Indiana v. McCarty, 808 N.E.2d 737 (Ind. Ct. App. 2004). · cites it 2× “Section 34-18-4-1 now requires an individual health care provider to carry malpractice liability insurance in the amount of $250,000 per occurrence/$750,000 per year.”
Wisniewski v. Bennett, 716 N.E.2d 892 (Ind. 1999). · cites it 2× “The insurer to which this refers is plainly the carrier whose policy is filed as proof of financial responsibility to establish the provider as a “qualified provider” under Indiana Code § 34-18-4-1. Indiana Code § 27-1-5-1 requires insurance companies to be “authorized” to write…”
Med. Assurance Co. v. Weinberger, 973 F. Supp. 2d 925 (N.D. Ind. 2013). · cites it 2× “” Ind. Code § 34-18-4-1 (1). By filing a certificate of insurance demonstrating that the health care provider has secured insurance in those amounts, and by paying an annual surcharge to the Fund, the health care provider receives the protection of damages caps and essentially…”
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