§ 27-5.1-4-6 — Policyholder surplus

Indiana § 27-5.1-4-6

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

Text

The following requirements apply to the
policyholder surplus of an extended company:
(1) The articles of incorporation of the extended company must
provide for the existence, maintenance, and use of the
policyholder surplus.
(2) The policyholder surplus may be used only for the payment of
losses and expenses considered necessary by the board of
directors of the extended company.
(3) The existence or maintenance of the policyholder surplus does
not relieve a policyholder of any assessment or other obligation
that the:
(A) policyholder owes to the extended company; or
(B) extended company has levied against the policyholder.
(4) If the extended company is dissolved, the policyholder surplus
must be treated in the same manner as any other asset of the
extended company.

Legislative History

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