§ 27-8-3-11 — Reserve emergency fund

Indiana § 27-8-3-11

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 8: LIFE, ACCIDENT, AND HEALTH
• Ch. 3: Mutual Life and Accident─Formation

Text

Every such accident insurance corporation,
association, or society shall accumulate and maintain a reserve
emergency fund of at least two thousand dollars ($2,000). Such fund,
if not already accumulated, shall be accumulated by every such
corporation, association, or society existing on March 9, 1897, by
September 9, 1897, and by every corporation, association, or society
organized under this chapter within six (6) months of the completion
of its organization and the receipt of its certificate of authority to
transact business in this state, and every corporation, association, or
society subject to the provisions of this chapter shall add to such
emergency fund thereafter two and one-half percent (2 1/2%) of the
amount realized from every premium, assessment, or periodical call
until such fund shall be equal to the amount of two dollars ($2) for
every five thousand dollars ($5,000) of insurance in force. Such
emergency fund, or any part thereof, may be used for the payment of
death and indemnity claims; provided, that if the amount of such fund
be thereby reduced below the amount contemplated in this chapter, the
amount by which such fund is reduced be made up and restored within
six (6) months thereafter. Such fund may be held in cash or invested in
the same class of securities required by law for the investment of funds
by insurance corporations, and nothing contained in this chapter shall
prevent the creation and accumulation of other funds in excess of the
amount required in this chapter to provide for the purposes of such
corporation, association, or society.
Formerly: Acts 1897, c.195, s.11. As amended by P.L.252-1985,
SEC.283.