§ 27-5.1-2-32 — Policyholder failure to pay assessment

Indiana § 27-5.1-2-32

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

Text

(a) If a policyholder is assessed and fails to
pay the assessment, the farm mutual insurance company may, upon
providing written notice of failure to pay:
(1) suspend the farm mutual insurance company's liability for loss
under the policyholder's insurance policy for the time during
which the assessment is not paid; or
(2) cancel the policyholder's insurance policy if the assessment is
not paid less than thirty (30) days after notice of the assessment
is sent to the policyholder.
The farm mutual insurance company may deduct the assessment from
the policyholder's deposit before returning the remainder of a deposit,
if any, to the policyholder.
(b) If an assessment is paid by a policyholder after a farm mutual
insurance company takes an action under subsection (a), the farm
mutual insurance company may reinstate the policyholder's insurance
policy effective beginning on the date on which the payment is
received, but a deduction or credit may not be made to an assessment
because of the suspension of the insurance policy.
(c) A farm mutual insurance company may file an action to compel
a policyholder to pay an assessment.

Legislative History

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