§ 27-6-6-6 — Assets and reserves

Indiana § 27-6-6-6

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 6: REINSURANCE; INTERINSURANCE
• Ch. 6: Interinsurance

Text

There shall at all times be maintained as assets
a sum in cash or securities of the kind designated by the laws of the
state where the principal office is located for the investment of funds
of insurance companies, doing the same kinds of business, amounting
to fifty per cent (50%) of the net annual deposits, collected, and
credited to the accounts of subscribers on policies having one (1) year
or less to run and pro rata on those for longer periods; in addition to
which there shall be maintained in cash or such securities assets
sufficient to discharge all liabilities on all outstanding losses arising
under policies issued, same to be calculated on the basis of net
premiums or deposits as in this section defined and in accordance with
the laws of the state relating to similar reserves for companies insuring
similar risks. For the purpose of computing said reserves and assets, net
deposits shall be construed to mean the payments of subscribers
collected or in the course of collection after deducting therefrom the
amounts provided in the subscribers' agreement for expenses except
payments or credits to the attorney-in-fact. If at any time the assets so
held in cash or such securities shall be less than required above, or be
less than three hundred thousand dollars ($300,000), the subscribers or
their attorney for them shall make up the deficiency within thirty (30)
days after notice from the department of insurance so to do: Provided,
however, That as to reciprocal or interinsurance exchanges now
licensed and authorized to do business in Indiana, the alternative
minimum of cash or securities required to be held shall be one hundred
thousand dollars ($100,000).
Formerly: Acts 1919, c.102, s.6; Acts 1963, c.315, s.2; Acts
1967, c.232, s.5.