§ 27-1-6-14 — Stock companies; capital stock and surplus requirements

Indiana § 27-1-6-14

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 6: Formation of Domestic Companies

Text

(a) A domestic capital stock company that
organized before March 7, 1967, must maintain a paid-in capital stock
of not less than:
(1) two hundred thousand dollars ($200,000), if it markets one (1)
or more kinds of insurance under Class I;
(2) two hundred thousand dollars ($200,000), if it markets one (1)
kind of insurance under Class II, other than Class II(k) insurance;
(3) three hundred thousand dollars ($300,000), if it markets two
(2) kinds of insurance under Class II, other than Class II(k)
insurance;
(4) four hundred thousand dollars ($400,000), if it markets three
(3) or more kinds of insurance under Class II, other than Class
II(k) insurance;
(5) four hundred thousand dollars ($400,000), if it markets one
(1) or more kinds of insurance under Class III;
(6) seven hundred fifty thousand dollars ($750,000), if it markets
one (1) or more kinds of insurance under both Class II and Class
III; or
(7) seven hundred fifty thousand dollars ($750,000), if it markets
one (1) or more kinds of insurance under Class II, including Class
II(k) insurance.
(b) A domestic capital stock company that organized after March 6,
1967, and before July 1, 1977, must maintain a paid-in capital stock of
not less than:
(1) four hundred thousand dollars ($400,000), if it markets one
(1) or more kinds of insurance under Class I;
(2) four hundred thousand dollars ($400,000), if it markets one
(1) or more kinds of insurance under Class II, other than Class
II(k) insurance;
(3) four hundred thousand dollars ($400,000), if it markets one
(1) or more kinds of insurance under Class III;
(4) seven hundred fifty thousand dollars ($750,000), if it markets
one (1) or more kinds of insurance under both Class II and Class
III; or
(5) seven hundred fifty thousand dollars ($750,000), if it markets
one (1) or more kinds of insurance under Class II, including Class
II(k) insurance.
(c) A domestic capital stock company that organized after June 30,
1977, must maintain a paid-in capital stock of not less than one million
dollars ($1,000,000).
(d) A domestic capital stock company must deposit with the
department the following percentage of its paid-in capital stock
requirement under this section in cash or in obligations of the United
States:
(1) Twenty-five percent (25%), if it organized before July 1, 1977.
(2) Ten percent (10%), if it organized after June 30, 1977.
(e) A domestic capital stock company must maintain a surplus of not
less than two hundred fifty thousand dollars ($250,000). However,
when it organizes, it must have a surplus of not less than one million
dollars ($1,000,000).
(f) If the commissioner determines that the continued operation of
a domestic capital stock company may be hazardous to the
policyholders or the general public, the commissioner may, upon the
commissioner's determination, issue an order requiring the insurer to
increase the insurer's capital and surplus based on the type, volume,
and nature of the business transacted.
Formerly: Acts 1935, c.162, s.74; Acts 1955, c.316, s.1; Acts
1959, c.13, s.1; Acts 1967, c.127, s.2. As amended by Acts 1977,
P.L.282, SEC.1; Acts 1980, P.L.169, SEC.1; P.L.130-1994, SEC.14;
P.L.116-1994, SEC.19.