(a)After the department has ascertained the
net reserve value of all policies under IC 27-1-12.8-18 or the reserve
liabilities under IC 27-1-12.8 of any life insurance company organized
and doing business in this state, the department shall notify said
company of the amount or amounts thereof. Within sixty (60) days after
the date of such notification, the officers of such company shall deposit
with the department, solely for the security and benefit of all its
policyholders, assets in an amount, invested in accordance with section
2 of this chapter (except paragraph 20 of section 2(b) of this chapter)
which together with the assets already deposited with the department
and such additional assets as may be deposited by said company with
other states or governments, pursuant to the require
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(a) After the department has ascertained the
net reserve value of all policies under IC 27-1-12.8-18 or the reserve
liabilities under IC 27-1-12.8 of any life insurance company organized
and doing business in this state, the department shall notify said
company of the amount or amounts thereof. Within sixty (60) days after
the date of such notification, the officers of such company shall deposit
with the department, solely for the security and benefit of all its
policyholders, assets in an amount, invested in accordance with section
2 of this chapter (except paragraph 20 of section 2(b) of this chapter)
which together with the assets already deposited with the department
and such additional assets as may be deposited by said company with
other states or governments, pursuant to the requirements of the laws
of such other states or governments in which said company is doing
business, shall be not less than the lesser of the amount of such reserve
value or reserve liabilities or the amount provided under subsection (f).
No life insurance company organized under this article or any other law
of this state shall be required to make such deposit until the amount
prescribed by this subsection exceeds the amount deposited by said
company under IC 27-1-6-14 or IC 27-1-6-15. Investments in real
estate shall be deposited in the form of satisfactory evidences of
ownership. The deposit requirement in relation to policy loans and
bank deposits shall be considered fulfilled by the inclusion of such item
in the company's annual statement, but subject to the right of the
company at any time, and the obligation of the company on demand of
the department, to file with the department a certificate as to the
amount of such item.
(b) If the department in the course of the year ascertains that the net
reserve value of a company's policies under IC 27-1-12.8-18 or its
reserve liabilities under IC 27-1-12.8 exceeds such company's deposits
as required by subsection (a), it may require such company within sixty
(60) days to increase its deposit to the required amount.
(c) Nothing in this article shall prevent the deposit of bonds,
mortgages, or other securities which meet the investment requirements
of a foreign or alien state or country, to an amount not exceeding the
amount of the reserves on policies issued to residents of, and to
corporations doing business in, such state or country. If, pursuant to the
law of a foreign or alien state or country in which an Indiana life
insurance company is doing business, securities belonging to such a
company are required to be deposited within the boundaries of such
foreign or alien state or country, credit for the amount of such deposit,
not exceeding the amount of the reserves on policies issued to residents
of, and to corporations doing business in, such foreign or alien state or
country, may be taken by the company as an offset against its deposits
required under this article.
(d) If, pursuant to the law of a foreign or alien state or country, a life
insurance company domiciled in the foreign or alien state or country is
not permitted a reserve credit for reserves maintained by a reinsurer
foreign to such a state or country, except on the condition that the
amount of such reserve be deposited with the insurance supervisory
official of such state or country, a deposit credit for the amount of such
reserves so deposited shall be allowed a domestic life insurance
company accepting reinsurance from companies domiciled in such
state or country.
(e) Any deposit of assets with the department pursuant to any law
superseded by this chapter shall, prior to the first deposit date
contemplated in subsection (a), be continued with the department and
otherwise be subject to this section.
(f) The amount of the deposit, except as otherwise provided in
subsection (a), shall be one million dollars ($1,000,000) excluding
policy loans and bank deposits, or such greater amount as the
department deems necessary to protect the interests of the
policyholders of a particular company by an order to the company to
deposit additional amounts under this section.
Formerly: Acts 1935, c.162, s.153B; Acts 1943, c.189, s.6; Acts
1945, c.175, s.4. As amended by Acts 1981, P.L.238, SEC.1;
P.L.31-1988, SEC.12; P.L.186-1997, SEC.6; P.L.81-2012, SEC.2;
P.L.276-2013, SEC.7; P.L.129-2014, SEC.4; P.L.136-2018,
SEC.158.