Ind. Code § 20-40-12-1 "Fund"
Sec. 1. As used in this chapter, "fund" refers to a self-insurance fund established under section 4 of this chapter.
[2006 Recodification Citation: New.]
As added by P.L.2-2006, SEC.163.
Ind. Code ch. 20-40-12
Ind. Code ch. 20-40-12
in effectInd. Code § 20-40-12-2 "Health care services"
Sec. 2. As used in this chapter, "health care services" has the meaning set forth in IC 27-8-11-1.
[Pre-2006 Recodification Citation: 21-2-19-1.]
As added by P.L.2-2006, SEC.163.
Ind. Code § 20-40-12-3 "Self-insurance program"
Sec. 3. As used in this chapter, "self-insurance program" means a program of self-insurance established or maintained by a governing body to provide coverage for health care services to a school corporation's employees and the employees' dependents.
[Pre-2006 Recodification Citation: 21-2-19-2.]
As added by P.L.2-2006, SEC.163.
Ind. Code § 20-40-12-4 Establishment of fund
Sec. 4. The governing body of each school corporation:
(1) may establish a self-insurance fund in accordance with this chapter for the purposes described in:
(A) section 5(1) through 5(3) of this chapter; and
(B) section 5(4) of this chapter as section 5(4) of this chapter applies to governing body or school employee coverage other than coverage for health care services; and
(2) shall, if the governing body elects to provide a self-insurance program to cover health care services, establish a self-insurance fund for the purposes described in section 5(4) of this chapter as section 5(4) of this chapter applies to health care services.
[Pre-2006 Recodification Citation: 21-2-5.6-1 part.]
As added by P.L.2-2006, SEC.163.
Ind. Code § 20-40-12-5 Uses
Sec. 5. The fund may be used to provide money for the following purposes:
(1) The payment of a judgment rendered against the school corporation, or rendered against an officer or employee of the school corporation for which the school corporation is liable under IC 34-13-2, IC 34-13-3, or IC 34-13-4 (or IC 34-4-16.5, IC 34-4-16.6, or IC 34-4-16.7 before their repeal).
(2) The payment of a claim or settlement for which the school corporation is liable under IC 34-13-2, IC 34-13-3, or IC 34-13-4 (or IC 34-4-16.5, IC 34-4-16.6, or IC 34-4-16.7 before their repeal).
(3) The payment of a premium, management fee, claim, or settlement for which the school corporation is liable under a federal or state statute, including IC 22-3 and IC 22-4.
(4) The payment of a settlement or claim for which insurance coverage is permitted under IC 20-26-5-4(a)(15).
[Pre-2006 Recodification Citation: 21-2-5.6-2.]
As added by P.L.2-2006, SEC.163. Amended by P.L.233-2015, SEC.290; P.L.118-2016, SEC.15.
Ind. Code § 20-40-12-6 Transfers to fund
Sec. 6. Subject to the approval of the commissioner of insurance, the governing body of the school corporation may:
(1) transfer to the fund an amount of money in the education fund or operations fund budget in accordance with the categories of expenditures established under IC 20-42.5-3;
(2) transfer money from the education fund or operations fund in accordance with the categories of expenditures established under IC 20-42.5-3 to the fund;
(3) appropriate money from the education fund or operations fund in accordance with the categories of expenditures established under IC 20-42.5-3 for the fund; or
(4) transfer money from the operations fund to the fund, to the extent that money in the operations fund may be used for property or casualty insurance.
[Pre-2006 Recodification Citation: 21-2-5.6-3.]
As added by P.L.2-2006, SEC.163. Amended by P.L.146-2008, SEC.479; P.L.238-2019, SEC.12.
Ind. Code § 20-40-12-7 Balance; nonreverting
Sec. 7. Any balance remaining in the fund at the end of the year does not revert to the general fund.
[Pre-2006 Recodification Citation: 21-2-5.6-4.]
As added by P.L.2-2006, SEC.163.
Ind. Code § 20-40-12-8 Compliance with chapter; self-insurance programs
Sec. 8. Subject to IC 20-26-5-4(a)(15) and this chapter and notwithstanding any other law, a self-insurance program must comply with this chapter.
[Pre-2006 Recodification Citation: 21-2-19-3.]
As added by P.L.2-2006, SEC.163. Amended by P.L.233-2015, SEC.291; P.L.118-2016, SEC.16.
Ind. Code § 20-40-12-9 Appeals
Sec. 9. (a) A self-insurance program must provide for appeals to a review panel to:
(1) hear complaints; and
(2) resolve concerns;
regarding issues related to coverage, coverage discrimination, and access under the self-insurance program.
(b) The composition of the review panel under subsection (a):
(1) must reflect the populations covered under the self-insurance program;
(2) may include a member representative of each covered population; and
(3) must maintain a balance of administration and nonadministration members.
(c) Self-insurance program documents provided to individuals covered under the self-insurance program must specify the appeal process, including the name, address, and telephone number of the individual with whom an appeal may be filed.
[Pre-2006 Recodification Citation: 21-2-19-4.]
As added by P.L.2-2006, SEC.163.
Ind. Code § 20-40-12-10 Incurred claim basis
Sec. 10. (a) A self-insurance program must be written on an incurred claims basis.
(b) The governing body must fund a self-insurance program as described in section 4(2) of this chapter to include coverage for all eligible incurred claims.
(c) Subject to this chapter and notwithstanding any other law:
(1) contributions made on behalf of individuals covered under the self-insurance program, including employee and employer contributions; and
(2) transfers or allocations of funds by a governing body;
for coverage for health care services under a self-insurance program must be directly deposited into the fund and may not be transferred to other accounts or expended for any other purpose.
[Pre-2006 Recodification Citation: 21-2-19-5.]
As added by P.L.2-2006, SEC.163.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/20Fetched: 10/17/2026