§ 27-1-13-3.5 — Intangible assets attributable to investment in subsidiary; amount as percentage of capital and surplus

Indiana § 27-1-13-3.5

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 13: Casualty, Fire, and Marine Insurance Company Powers

Text

5. (a) Except as provided by subsection (b),
goodwill, trade names, and other like intangible assets attributable to
any investment in a subsidiary shall be admitted as assets except:
(1) to the extent that the aggregate amount thereof exceeds ten
percent (10%) of the capital and surplus of the insurer as reported
in its latest annual report filed with the commissioner;
(2) to the extent that any such asset is not being amortized ratably
over a period of ten (10) years or less from the date of acquisition;
and
(3) in determining the financial condition or solvency of an
insurer under IC 27-9.
(b) The commissioner may increase the ten percent (10%) limitation
in subsection (a)(1) to an amount not to exceed twenty percent (20%)
of the capital and surplus of the insurer as reported in its latest annual
statement filed with the commissioner if:
(1) the assets of the insurer include good will, trade names, and
other like intangible assets that are attributable to the acquisition
after December 31, 1998, of an insurance company or health
maintenance organization authorized to do business under the
laws of any state; and
(2) as of the date of the initial request for an increase in the ten
percent (10%) limitation in subsection (a)(1) the total adjusted
capital of the insurer is at least four hundred percent (400%) of
the authorized control level risk based capital of the insurer as
reported in the latest annual report filed with the commissioner.
(c) The commissioner may retain experts to assist with a request
made under subsection (b). The insurer shall pay all costs for the
experts.

Legislative History

As added by P.L.160-1986, SEC.2. Amended by P.L.88-2000, SEC.1.