IC 27-1-17
    Chapter 17. Admission of Foreign and Alien Companies toTransact Business in Indiana

IC 27-1-17-1
Necessity of certificate of authority
    Sec. 1. Any foreign or alien insurance company organized for thepurpose of transacting any insurance business, not qualified as ofMarch 8, 1935, to transact business in this state, before transactingbusiness in this state shall procure a certificate of authority from thedepartment in the manner provided in this chapter and shallotherwise comply with the provisions and be subject to theregulations set forth in this chapter.
(Formerly: Acts 1935, c.162, s.226.) As amended by P.L.252-1985,SEC.71.

IC 27-1-17-2
Equality of treatment between domestic companies and foreign oralien companies; exception
    Sec. 2. No foreign or alien company shall be admitted for thepurpose of transacting any kind or kinds of insurance business in thisstate, the transaction of which by a domestic company is notpermitted by the laws of this state; provided, however, that where aforeign or alien company whose charter provides for the transactionof the kind or kinds of insurance described in more than one (1) classof IC 27-1-5-1 has been transacting business in this state under acertificate of authority issued by the insurance department orinsurance commissioner prior to March 8, 1935, such company maybe issued a certificate of authority under the provisions of this articleto make the kind or kinds of insurance provided by its charter. Aforeign or alien insurance company admitted to do an insurancebusiness in this state shall have the same but no greater rights andprivileges than a domestic company.
(Formerly: Acts 1935, c.162, s.227.) As amended by P.L.252-1985,SEC.72.

IC 27-1-17-3
Name
    Sec. 3. No foreign or alien insurance company shall be admittedto do business in this state having a name which, at the date of suchadmission, could not be taken by a domestic corporation under theprovisions of IC 27-1-6-3, except that the name of a foreign or alieninsurance company need not include the word "company","corporation", "incorporated", or "mutual", or one (1) of theabbreviations thereof, nor the word "insurance" or the word"assurance" provided the name of such company is authorized by thelaws of the state or territory of its organization or domicile andprovided such name does not negate the characteristic of suchcompany as an insurance company. No such foreign or alieninsurance company after it has been admitted shall, by amendment

to its charter, assume any name which, at the date of the filing ofsuch amendment as provided in this chapter, could not be taken bya domestic corporation under the provisions of IC 27-1-6-3.
(Formerly: Acts 1935, c.162, s.228; Acts 1969, c.164, s.7.) Asamended by P.L.252-1985, SEC.73.

IC 27-1-17-4
Documents required for admittance
    Sec. 4. Whenever a foreign or an alien insurance company desiresto be admitted to do an insurance business in this state, it shallexecute in the English language and present the following to thedepartment, at its office, accompanied by the fees prescribed by law:
        (1) A copy of its articles of incorporation or association, withall amendments thereto, duly authenticated by the proper officerof the state, country, province, or government wherein it isincorporated or organized, or the state in which it is domiciledin the United States.
        (2) An application for admission, executed in the mannerprovided in this chapter, setting forth:
            (A) the name of such company;
            (B) the location of its principal office or place of businesswithout this state;
            (C) the names of the states in which it has been admitted orqualified to do business;
            (D) the character of insurance business under its articles ofincorporation or association which it intends to transact inthis state, which must conform to the class or classes setforth in the provisions of IC 27-1-5-1;
            (E) the total authorized capital stock of the company and theamount thereof issued and outstanding, and the surplusrequired of such company by the laws of the state, country,province, or government under which it is organized, or thestate in which it is domiciled in the United States, if a stockcompany, which shall equal at least the requirements setforth in section 5(a) of this chapter;
            (F) the total amount of assets and the surplus of assets overall its liabilities, if other than a stock company, which shallequal at least the requirements set forth in section 5(b) ofthis chapter;
            (G) if an alien company, the surplus of assets investedaccording to the laws of the state in the United States whereit has its deposit, which shall equal at least the requirementsset forth in section 5(c) of this chapter; and
            (H) such further and additional information as thedepartment may from time to time require.
        The application shall be signed in duplicate, in the formprescribed by the department, by the president or a vicepresident and the secretary or an assistant secretary of thecorporation, and verified under oath by the officers signing thesame.        (3) A statement of its financial condition and business, in theform prescribed by law for annual statements, signed and swornto by the president or secretary or other principal officers of thecompany; provided, however, that an alien company shall alsofurnish a separate statement comprising only its condition andbusiness in the United States, which shall be signed and swornto by its United States manager.
        (4) A copy of the last report of examination certified to by theinsurance commissioner or other proper supervisory official ofthe state in which such company is domiciled; provided,however, that the commissioner may cause an examination tobe made of the condition and affairs of such company beforeauthority to transact business in this state is given.
        (5) A certificate from the proper official of the state, country,province, or government wherein it is incorporated ororganized, or the state in which it is domiciled in the UnitedStates, that it is duly organized or incorporated under those lawsand authorized to make the kind or kinds of insurance which itproposes to make in this state.
        (6) A copy of its bylaws or regulations, if any, certified to bythe secretary or similar officer of the insurance company.
        (7) A duly executed power of attorney in a form prescribed bythe department which constitutes and appoints an individual ora corporate resident of Indiana, or an authorized Indiana insurer,as the insurance company's agent, its true and lawful attorneyupon whom, except as provided in section 4.2 of this chapter,all lawful processes in any action in law or in equity against itshall be served. Such power of attorney shall contain anagreement by the insurance company that any lawful processagainst it which may be served upon the agent as its attorneyshall be of the same force and validity as if served upon theinsurance company and that such power of attorney shallcontinue in force and be irrevocable so long as any liability ofthe insurance company remains outstanding in this state. Suchpower of attorney shall be executed by the president andsecretary of the insurance company or other duly authorizedofficers under its seal and shall be accompanied by a certifiedcopy of the resolution of the board of directors of the companymaking said appointment and authorizing the execution of saidpower of attorney. Service of any lawful process shall be bydelivering to and leaving with the agent two (2) copies of suchprocess, with copy of the pertinent complaint attached. Theagent shall forthwith transmit to the defendant company at itslast known principal place of business by registered or certifiedmail, return receipt requested, one (1) of the copies of suchprocess, with complaint attached, the other copy to be retainedin a record which shall show all process served upon andtransmitted by him. Such service shall be sufficient provided thereturned receipt or, if the defendant company shall refuse toaccept such mailing, the registered mail together with an

affidavit of plaintiff or his attorney stating that service wasmade upon the agent and forwarded as above set forth but thatsuch mail was returned by the post office department is filedwith the court. The agent shall make information and receiptsavailable to plaintiff, defendant or their attorneys. No plaintiffor complainant shall be entitled to a judgment by default basedon service authorized by this section until the expiration of atleast thirty (30) days from the date on which either the postoffice receipt or the unclaimed mail together with affidavit isfiled with the court. Nothing in this section shall limit orabridge the right to serve any process, notice or demand uponany company in any other manner permitted by law.
        (8) Proof which satisfies the department that it has compliedwith the financial requirements imposed in this chapter uponforeign and alien insurance companies which transact businessin this state and that it is entitled to public confidence and thatits admission to transact business in this state will not beprejudicial to public interest.
(Formerly: Acts 1935, c.162, s.229; Acts 1967, c.127, s.5.) Asamended by P.L.252-1985, SEC.74; P.L.130-1994, SEC.25;P.L.116-1994, SEC.35; P.L.268-1999, SEC.6; P.L.126-2001, SEC.2;P.L.193-2006, SEC.5.

IC 27-1-17-4.2
Service of process in action on surety bonds
    Sec. 4.2. (a) A foreign or alien insurance company that providesa surety bond that is required or permitted under the law of theUnited States shall execute a power of attorney in a form prescribedby the department irrevocably appointing the commissioner as theinsurance company's agent for service of process in an action on thesurety bond if the:
        (1) surety bond was provided in Indiana; and
        (2) service of process under this section is in addition to anothermethod of service of process authorized by law or court rule.
    (b) Service of process under this section has the same effect aspersonal service on the insurance company.
    (c) Upon receipt of process described in this section, thecommissioner shall forward the process to the resident agentdesignated by the insurance company under section 4(7) of thischapter.
    (d) The commissioner may adopt rules under IC 4-22-2 toestablish reasonable fees for the acceptance of process described inthis section. Fees collected under rules adopted under this subsectionmust be deposited in the department of insurance fund established byIC 27-1-3-28.
As added by P.L.193-2006, SEC.6.

IC 27-1-17-5
Capital and surplus or surplus of assets over liabilities; investmentof surplus    Sec. 5. (a) Every foreign insurance company authorized to dobusiness in this state shall have, in the case of a stock company, atleast the capital and surplus required of a domestic insurancecompany which makes the same kind or kinds of insurance.
    (b) Every foreign insurance company authorized to do business inthis state shall have, in the case of other than a stock company, atleast the assets with a surplus of assets over all liabilities required ofa domestic insurance company which makes the same kind or kindsof insurance, and an additional contingent liability of itspolicyholders equal to not less than the cash premium expressed inthe policies in force, if such contingent liability is required of a likedomestic insurance company.
    (c) Every alien insurance company authorized to do business inthis state shall have the surplus of assets invested according to thelaws of the state in the United States, wherein it has its deposit, heldin the United States in trust for the benefit and security of all itspolicyholders and creditors in the United States, over all its liabilitiesin the United States, of an amount equal to the surplus of assetsrequired of a like domestic insurance company.
(Formerly: Acts 1935, c.162, s.230.)

IC 27-1-17-6
Deposit
    Sec. 6. Every alien company shall deposit with the departmentsecurities of the amount and value of one hundred thousand dollars($100,000) invested in the classes of securities in which insurancecompanies are permitted by the laws of this state to makeinvestments, or, satisfy the department that it has on deposit with theproper official of a state of the United States, authorized by the lawsof such state to accept such deposit, securities of the amount andvalue of one hundred thousand dollars ($100,000), of the classes inwhich like insurance companies of such state are permitted to maketheir investments, for the benefit and security of all its policyholdersand creditors in the United States, and the company shall file withthe department the certificate of such official of any such depositheld by him.
(Formerly: Acts 1935, c.162, s.231.)

IC 27-1-17-7
Trustees of assets of alien insurer
    Sec. 7. The directors of an alien company may appoint citizens orcorporations of the United States, approved by the commissioner, asits trustees to hold funds and assets in trust for the benefit of thepolicyholders and creditors of the company in the United States. Acertified copy of the record of such appointment and of the deed oftrust shall be filed with the commissioner, who may examine suchtrustees and any officers and agents, books and papers of thecompany in the same manner as he may examine officer, agents,books, papers and affairs of insurance companies. The funds andassets so held by such trustees shall, with the deposits otherwise

made by the company and the funds and assets held by the companyin the United States for the benefit of its policyholders and creditorsin the United States, constitute the assets of the company for thepurpose of making its financial statements required by this law.
(Formerly: Acts 1935, c.162, s.232.)

IC 27-1-17-8
Issuance of certificate of authority
    Sec. 8. When any foreign or alien insurance company hascomplied with the provisions of sections 1 through 7 of this chapter,then the commissioner may issue a certificate of authority, pursuantto IC 27-1-3-20, which shall license such foreign or alien insurancecompany to transact only the kind or kinds of insurance specified inits application for admission, and which shall expire on midnight ofApril 30 next, following the date of issuance.
(Formerly: Acts 1935, c.162, s.233.) As amended by P.L.252-1985,SEC.75.

IC 27-1-17-9
Hazardous financial condition
    Sec. 9. (a) If, upon satisfactory evidence, it appears to thecommissioner that any foreign or alien insurance company doingbusiness in this state is in a hazardous financial condition asevidenced by the existence of any conditions indicated by, but notlimited to, the following, he shall take such action as set forth insubsection (b) or (c), compliance herewith not precluding actionunder other provisions of law:
        (1) It cannot meet the current applicable requirements for theconduct of the business of insurance in this state.
        (2) It has commenced, or has attempted to commence, anyvoluntary liquidation or dissolution proceeding, or anyproceeding to procure the appointment of a receiver, liquidator,rehabilitator, sequestrator, conservator, or similar officer foritself.
        (3) It is the subject of liquidation or dissolution proceedingsundertaken by another state, or any other proceeding undertakenby another state to procure the appointment of a receiver,liquidator, rehabilitator, sequestrator, conservator, or similarofficer.
        (4) Its further transaction of business would be hazardous to itspolicyholders, contract holders, or the public as shown by thefollowing conduct or other conduct:
            (A) Investment practices not providing availability within areasonable time of sufficient moneys to promptly meet anydemand which might in the ordinary course of business beproperly made against it.
            (B) Embezzlement, sequestration, or wrongful diversion ofany of its assets by any of its officers or directors.
            (C) Willful violation of its charter or any law of this state.
    (b) Upon finding that a company is in a hazardous financial

condition as described in subsection (a), the commissioner shallorder the company to take such action as reasonably may be requiredto correct the situation, such as the following:
        (1) Requiring the company to reduce the volume of newbusiness being accepted to an amount and period of timespecified by the commissioner in the manner prescribed by hisorder.
        (2) Requiring the submission of such reinsurance contracts forapproval and make such requirements relative to the company'sreinsurance program as the commissioner deems necessary toprotect the interests of Indiana policyholders.
        (3) Requiring the company to reinsure all or any part of itsIndiana business with a company duly authorized to transactsuch business in this state.
        (4) Requiring a contribution to surplus which will increase thecompany's surplus for such a period of time, and by such anamount, and in such a manner, as the commissioner may deemnecessary and essential.
        (5) Requiring the company to maintain a special deposit withthe commissioner of insurance of this state in cash or securitiesof the kinds in which a domestic insurer is permitted to investits funds, in an amount not less than the lesser of:
            (A) the amounts required to be maintained as reserves, forlosses and loss adjustment expenses on Indiana business andreserves for unearned premiums on Indiana business. (Indetermining the amount of deposit required by thissubdivision, the reserves for losses, loss adjustmentexpenses, and unearned premiums shall be reduced only forreinsurance cessions to approved reinsurers which maintainwith an independent custodian cash or marketable securitiesin an amount not less than the sum of the reinsurer's reservesfor losses, loss adjustment expenses, and unearned premiumsin regard to reinsurance assumed); and
            (B) six hundred thousand dollars ($600,000).
Any deposit required by this subsection shall be for the protectionand benefit of Indiana policyholders or claimants only and shall notbe withdrawn without the consent of the commissioner. Thecommissioner shall require such reports as may be necessary toimplement supervision of any order issued under this subsection.
    (c) If the company fails to comply with the commissioner's orderunder subsection (b) within sixty (60) days or if the commissionerfinds that the company's financial condition is so serious as to makeany efforts under subsection (b) meaningless to the company'spolicyholders, claimants, or the public, the commissioner shallsuspend the authority granted to such company to do business in thisstate. If no demand for a hearing is made by the suspended companywithin thirty (30) days after suspension, such suspension shallbecome a revocation of the authority to transact the business ofinsurance in this state. Any such hearing shall be held in compliancewith IC 4-21.5-3. If during such a hearing satisfactory evidence is

forced to indicate that the company is in a hazardous financialcondition as described in subsection (a), the commissioner shallrevoke the authority of the company to transact the business ofinsurance in this state.
As added by Acts 1977, P.L.281, SEC.4. Amended by P.L.7-1987,SEC.138.