Indiana Administrative Code Title 825 - INDIANA GRAIN INDEMNITY CORPORATION
Indiana Administrative Code – Title 825
Indiana Grain Indemnity Corporation (IGIC)
Overview
Title 825 establishes the Indiana Grain Indemnity Corporation (IGIC), which is a state-authorized entity that provides financial protection and indemnity to grain sellers and buyers in Indiana.
The purpose of the IGIC is to ensure that transactions involving grain are secure and financially backed, protecting both producers and purchasers from loss due to insolvency, default, or other financial risks in grain trade.
Key Components of Title 825
1. Establishment of the Corporation
The Indiana Grain Indemnity Corporation is formally created.
Membership typically includes:
Grain producers,
Grain dealers or merchants,
Representatives from agricultural organizations.
The Corporation is managed by a Board of Directors responsible for policy, financial oversight, and administration.
2. Purpose and Powers
The IGIC’s purpose includes:
Protecting grain sellers and buyers against financial loss.
Maintaining a fund or reserve to cover claims for unpaid or lost grain transactions.
Establishing rules and procedures for participation in the indemnity program.
Powers of the Corporation include:
Collecting assessments or fees from member grain dealers.
Approving claims for indemnity payments.
Conducting audits and investigations to ensure proper grain transactions.
3. Membership
Grain dealers, warehouses, and other entities involved in grain sales may be members of the IGIC.
Membership is required for eligibility to participate in the indemnity program.
Members are usually required to:
Submit financial statements,
Pay assessments or premiums to fund the indemnity pool,
Comply with recordkeeping and reporting requirements.
4. Indemnity Coverage
The Corporation provides financial protection for losses caused by:
Insolvent grain dealers,
Failure to deliver purchased grain,
Fraudulent grain transactions.
The Code defines the maximum coverage and eligibility conditions for claims.
Procedures are outlined for submitting claims and receiving payments.
5. Administration & Reporting
The Board manages the day-to-day operations of the Corporation.
Responsibilities include:
Reviewing and approving claims,
Maintaining financial records,
Preparing annual reports on the fund’s solvency and activities.
Regular audits are conducted to ensure the integrity of the indemnity fund.
6. Assessments & Fees
The Corporation may impose fees or assessments on members to fund the indemnity program.
Fees are calculated based on:
Volume of grain handled,
Risk exposure of the member.
Funds collected are used exclusively to pay claims and operate the Corporation.
7. Enforcement & Compliance
Members must comply with all recordkeeping, reporting, and financial obligations.
The Corporation can investigate violations or mismanagement.
Non-compliance may result in:
Suspension or termination of membership,
Loss of indemnity coverage.
Purpose of Title 825
The main objectives are:
Protect grain sellers and buyers from financial loss in grain transactions.
Establish a state-backed indemnity fund to ensure trust and stability in the grain market.
Provide clear rules for membership, coverage, and claims.
Ensure proper administration, reporting, and enforcement of the indemnity program.
✅ In summary:
Indiana Administrative Code Title 825 – Indiana Grain Indemnity Corporation sets up a state-authorized indemnity program for the grain industry. It governs membership, funding, indemnity coverage, administration, compliance, and enforcement, ensuring that grain transactions in Indiana are secure and financially protected.
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