Indiana § 27-15-12-2 Formation of trust under trust agreement; beneficiaries; satisfaction of
claims; reports

Indiana Statutes

§ 27-15-12-2 — Formation of trust under trust agreement; beneficiaries; satisfaction of claims; reports

Indiana·Title 27 INSURANCE·Art. 15 DEMUTUALIZATION OF MUTUAL INSURANCE·Ch. 12 Effect of Pending Claims on the Distribution of

(a)At the effective date of the plan of conversion, assets adequate to satisfy a claim described in section 1 of this chapter, consisting of the consideration that otherwise would be distributed directly to eligible members, must be placed in trust under a trust agreement in a form approved by the commissioner. The trustee or trustees of the trust shall:

(1)be appointed by the board of directors of the converting mutual, subject to disapproval of any trustee by the commissioner; and

(2)consist of one (1) or more institutions authorized by Indiana law to act as corporate trustees.

(b)The beneficiaries of the trust:

(1)are the eligible members who, in the absence of the claims, would have been entitled to the consideration placed in the trust; and

(2)may consist of all of the eligible

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(a) At the effective date of the plan of
conversion, assets adequate to satisfy a claim described in section 1 of
this chapter, consisting of the consideration that otherwise would be
distributed directly to eligible members, must be placed in trust under
a trust agreement in a form approved by the commissioner. The trustee
or trustees of the trust shall:
(1) be appointed by the board of directors of the converting
mutual, subject to disapproval of any trustee by the commissioner;
and
(2) consist of one (1) or more institutions authorized by Indiana
law to act as corporate trustees.
(b) The beneficiaries of the trust:
(1) are the eligible members who, in the absence of the claims,
would have been entitled to the consideration placed in the trust;
and
(2) may consist of all of the eligible members or specified classes
or groups of eligible members.
(c) Assets of the trust shall be made available to pay or otherwise
satisfy the claims for which the trust has been established, the expenses
of the trust in contesting or resolving those claims, and any other
reasonable expenses of the trust. Upon final resolution of the claims,
by judgment, settlement or otherwise, or at such other times as may be
provided for in the trust agreement, the remaining assets of the trust
shall be distributed to the beneficiaries in accordance with their
respective interests in the trust.
(d) Until the trust has been terminated, the trustee or trustees shall
prepare reports not less frequently than annually, upon termination of
the trust, and at such other times as may be requested by the
commissioner or the former mutual. The reports must contain
information regarding the financial condition of the trust and the status
of any resolved and pending claims. The reports shall be provided to
the commissioner and the former mutual and the reports or summary
reports shall be mailed at least annually to the beneficiaries of the trust
at the expense of the trust.
(e) An interest in a trust established under this section does not
constitute a security under Indiana law.
(f) The establishment of a trust or pendency of any claim described
in this chapter shall not delay or affect the effectiveness of a plan of
conversion or an amendment to the articles of incorporation.

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