§ 27-5.1-2-30 — Premium plus assessment basis; policyholder liability

Indiana § 27-5.1-2-30

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 5.1: FARM MUTUAL INSURANCE COMPANIES

Text

(a) A policyholder of a farm mutual
insurance company operating on a premium plus assessment basis
under this article is liable for the policyholder's share of the amount
necessary to:
(1) pay the losses and necessary expenses incurred by the farm
mutual insurance company; and
(2) maintain an adequate reserve or safety fund as determined by
the farm mutual insurance company's directors;
while the policyholder's insurance policy is in effect.
(b) Notwithstanding subsection (a), a farm mutual insurance
company shall limit a policyholder's contingent liability during any one
(1) year to an amount not to exceed the limitation set forth in the farm
mutual insurance company's bylaws. The limitation set forth in the farm
mutual insurance company's bylaws under this subsection must be an
amount equal to not less than three percent (3%) of the insurance
carried by the policyholder.

Legislative History

As added by P.L.129-2003, SEC.8.