§ 27-5.1-4-5 — Collections through assessments and premiums

Indiana § 27-5.1-4-5

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 5.1: FARM MUTUAL INSURANCE COMPANIES
• Ch. 4: Extended Farm Mutual Insurance Companies

Text

(a) An extended company:
(1) may collect a membership fee and an initial premium charge
that are prescribed by the board of directors of the extended
company; and
(2) shall collect, not less than annually, an amount that is
sufficient to enable the extended company to:
(A) pay losses and expenses; and
(B) create and maintain a policyholder surplus in accordance
with the articles of incorporation and bylaws of the extended
company.
(b) Collections under subsection (a) are subject to the following
requirements:
(1) Collections must be made through assessments or premiums
charged by the extended company on certain insurance policies
issued by the extended company as determined by the board of
directors of the extended company.
(2) A policyholder that holds an insurance policy that is issued on
a basis other than a premium basis:
(A) may be charged an advance assessment that is payable not
later than the time at which the insurance policy is issued, as
determined by the board of directors of the extended company;
and
(B) may be assessed if a further assessment is required under
the articles of incorporation of the extended company.
(c) The terms and conditions of assessments made under this section
must be clearly disclosed in the insurance policy.

Legislative History

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