CHAPTER 5. CLASSIFICATION OF INSURANCE
IC 27-1-5
Chapter 5. Classification of Insurance
IC 27-1-5-1
Authority to write one or more kinds of insurance; restrictions onassessment plan companies; classes of insurance
Sec. 1. A company, including a foreign or alien companyauthorized to transact business in Indiana, may make all or any one(1) or more of the kinds of insurance and reinsurance comprised inany one (1) of the following classes, subject to the provisions ofIC 27-1. However, insurance on the assessment plan is limited to themaking of insurance on the lives of persons and against disabilityfrom disease, bodily injury or death by accident.
CLASS 1. INSURANCE APPERTAINING TO PERSONSONLY:
(a) To insure the lives of persons, including insurance againstpermanent mental or physical disability resulting from accident ordisease, or against accidental death combined with a policy for lifeinsurance, and to grant, purchase or dispose of annuities;
(b) To insure against bodily injury or death by accident andagainst disablement resulting from sickness and every insuranceappertaining thereto, including contracts between an insurer andpolicyholder providing for the indemnification of the policyholder(or the other party) obligated to pay benefits resulting from bodilyinjury, death by accident, or disablement from sickness in accordancewith the provisions of a benefit plan; however, for purposes of Class2(1) of this section, this provision does not apply;
(c) Within the meaning of "Insurance Appertaining to PersonsOnly," generally described in Class 1 of this section, are to beincluded, among other things:
(1) contracts providing for immediate or future life insuranceand/or annuity benefits, fundable and/or computable as to costor payment or both; and
(2) contracts providing for insurance against bodily injury orsickness, a portion of which may be funded;
out of or on the basis of assets in a segregated investment account;the assets being those received by the company from or in relation tocontributions, premiums or considerations received by it under suchcontracts. The establishment of such account shall in no way affectthe company's absolute ownership of the investment items to whichthe account from time to time pertains. A company issuing contractsof the nature described may as to them establish one (1) or moresegregated accounts, dependent upon the company's plan ofoperation.
A segregated investment account established as contemplated inthis paragraph (c) shall not be chargeable with liabilities arising outof any other business the company may conduct and which has nospecific relation to or dependence upon such account. Any surplus ordeficit which may arise in any such segregated investment accountby virtue of any guarantee by the company of the value of the assets
allocated to the account, their investment or income, or mortalityexperience shall be adjusted by withdrawals from or additions tosuch account so that the assets of such account shall always equal theassets required to satisfy all liabilities arising under contractsfundable by such account.
CLASS 2.
(a) To insure any persons against bodily injury, disablement ordeath resulting from accident and against disablement resulting fromdisease and every insurance appertaining thereto;
(b) To insure against loss or damage resulting from accident to, orinjury sustained by, an employee or other person for which accidentor injury the insured is liable;
(c) To insure against loss or damage by burglary, theft orhousebreaking;
(d) To insure glass, its fittings or lettering thereon, againstbreakage or damage;
(e) To insure against loss from injury to persons or property whichresults accidentally from steam-boilers, elevators, electrical devices,engines and all machinery and appliances used in connectiontherewith or operated thereby; and to make inspection of and issuecertificates of inspection upon such boilers, elevators, electricaldevices, engines, machinery and appliances;
(f) To insure against any loss, expense and/or liability resultingfrom the ownership, maintenance, use and/or operation of anyautomobile or other motor vehicle, including complete line coverageon automobiles or other motor vehicles;
(g) To insure against loss or damage by water to any goods orpremises arising from the breakage or leakage of sprinklers and/orwater-pipes;
(h) To insure against any loss or damage resulting from accidentto or injury suffered by any person, for which loss or damage theinsured is liable; excepting employer's liability insurance asauthorized under subsection (b) of Class 2 of this section;
(i) To insure persons, associations or corporations against loss ordamage by reason of the giving or extending of credit;
(j) To insure against loss or damage on account of encumbrancesupon or defects in the title to real estate and against loss by reason ofthe nonpayment of the principal or interest of bonds, mortgages orother evidences of indebtedness;
(k) To become surety or guarantor for any person, partnership orcorporation in any position or place of trust or as custodian of moneyor property, public or private; to become a surety or guarantor for theperformances by any person, copartnership or corporation of anylawful obligation, undertaking, agreement or contract of any kind,except contracts or policies of insurance, to become surety orguarantor for the performance of insurance contracts where suretybonds are required by states or municipalities. The business coveredby this subsection (k) shall be considered as fidelity and suretyobligations and construed as such regardless of any otherclassification contained in this chapter to the contrary; (l) To insure against any other casualty or insurance risk specifiedin the articles of incorporation which lawfully may be made thesubject of insurance and for which specific provision is not made inthis chapter.
(m) To insure against legal expenses, such as attorneys fees, courtcosts, witness fees and incidental expenses incurred in connectionwith the use of the professional services of attorneys at law, inconsideration of a specified payment for an interval of time,regardless of whether payment is made by the beneficiariesindividually or by a third person for them, so that the total costincurred by assuming the obligation is spread directly or indirectlyamong the group, except those expenses resulting from thefollowing:
(1) Retainer contracts made with a single client with the feebased on an estimate of the nature and the amount of servicesthat will be provided to that client, and similar contracts madewith a group of clients involved in the same or closely relatedlegal matters (such as class actions).
(2) Plans providing no benefits other than a limited amount ofconsultation and advice on simple matters either alone or incombination with referral services or the promise of feediscounts for other matters.
(3) Plans providing limited benefits on simple legal matters ona voluntary and informal basis, not involving a legally bindingpromise, in the context of an employment or educational orsimilar relationship.
(4) Legal services provided by unions or employee associationsto its members in matters solely relating to employment oroccupation, and provided, further, that nothing in this chaptershall prohibit group legal services of any other kind.
(5) Payment of fines, penalties, judgments or assessments.
CLASS 3.
(a) To make insurance on buildings and personal property ofevery description against loss or damage, including loss of use oroccupancy, caused by fire, smoke or smudge, lightning or otherelectrical disturbance, earthquake, windstorm, cyclone, tornado,tempest, hail, frost or snow, ice, sleet, weather or climatic conditions,including excess or deficiency of moisture, flood, rain or drought,rising of the waters of the ocean, or its tributaries, bombardment,invasion, insurrection, riot, civil war or commotion, military orusurped power, and by explosion, whether fire ensues or not, exceptexplosion of steam-boilers;
(b) To insure against loss or damage from any cause, to crops orfarm products and loss of rental value of land used in producing suchcrops or products;
(c) To insure against loss or damage by water or other fluid to anygoods or premises arising from the breakage or leakage of sprinklers,pumps, or other apparatus erected for extinguishing fires or of otherconduits or containers or by water entering through leaks or openingsin buildings and/or water-pipes, and against accidental injury to such
sprinklers, pumps, or other apparatus, conduits, containers orwater-pipes;
(d) To insure vessels, boats, cargoes, goods, merchandise, freight,specie, bullion, jewels, profits, commissions, bank notes, bills ofexchange, other evidences of debt, bottomry and respondentiainterests, and other property against loss or damage by any or all ofthe risks of lake, river, canal and inland navigation andtransportation, and other insurances appertaining to or connectedwith marine risks, including complete line coverage automobileinsurance, and also insurance on any other property or risk, or the usethereof, by reason of any contingency unless the granting of suchinsurance is contrary to public policy. However, such companies maynot grant or make insurance against:
(1) losses arising from explosion of steam boilers;
(2) losses arising from breakage of plate or other glass, exceptwhen caused by fire, wind, or hail storm, and except when theloss occurs to glass which is a part of any dwelling house;
(3) risks of the classes commonly known as fidelity insuranceand surety bonds;
(4) risks of the classes commonly known as burglary or theftinsurance, except as above specifically permitted, and exceptfor the risks to any dwelling house; and
(5) the risk of legal liability by reason of bodily injury to theperson except as such liability may result from the ownership,maintenance, use or operation of an automobile.
(Formerly: Acts 1935, c.162, s.59; Acts 1957, c.265, s.1; Acts 1959,c.87, s.1; Acts 1961, c.138, s.2.) As amended by Acts 1978, P.L.129,SEC.1; Acts 1982, P.L.160, SEC.1; P.L.260-1983, SEC.5.
IC 27-1-5-2
Management of segregated investment account
Sec. 2. Notwithstanding any other provisions of this article, anycompany which has established or establishes on or after March 8,1935, a segregated investment account of assets as authorized inClass 1(c) of section 1 of this chapter may provide that suchsegregated investment account of assets shall be managed by acommittee, board, or similarly designated body, the members ofwhich need not be otherwise affiliated with such company or itsboard of directors and the members of which may be elected solelyby the owners of the contracts issued and outstanding under suchaccount, and may further provide that each contract owner undersuch account shall have the right, with respect to the election ofmembers of such committee, board, or body and with respect to othermatters pertaining only to such account, to vote a number of votesproportionate to the value of the contract owner's interest in theaccount in the manner provided by such rules as may be adopted bysuch committee, board, or body.
(Formerly: Acts 1935, c.162, s.59a; Acts 1967, c.127, s.6.) Asamended by P.L.252-1985, SEC.13.
IC 27-1-5-3
"Property" and "property interests" defined
Sec. 3. "Property" and "property interests", as used in section 1 ofthis chapter, shall include real and personal property, chattels real,currency, coin, bank notes, bullion, postage or revenue stamps,express, postal, pension or bank money orders, bonds, debentures,checks, coupons, demand or time drafts, bills of exchange,acceptances, promissory notes, certificates of deposit, certificates ofstock, warehouse receipts, bills of lading, and all other choses inaction.
(Formerly: Acts 1935, c.162, s.60.) As amended by P.L.252-1985,SEC.14.
IC 27-1-5-4
Repealed
(Repealed by P.L.255-1995, SEC.15.)