CHAPTER 10. DIVIDEND PRESERVATION

IC 27-15-10
    Chapter 10. Dividend Preservation

IC 27-15-10-1
Purpose of provisions; prohibitions
    Sec. 1. (a) The sole purpose of any dividend preservationprovision shall be to provide for reasonable policyholder dividendexpectations on policies that provide for the distribution of policydividends.
    (b) No dividend preservation provision in a plan under this articleshall be permitted:
        (1) to be a substitute for the distribution of consideration toeligible members upon extinguishing their membership interestsas required by this article; or
        (2) to diminish any contractual rights to a dividend that amember or policyholder may have.
As added by P.L.94-1999, SEC.3.

IC 27-15-10-2
Limitations on provisions
    Sec. 2. Any dividend preservation provision may be limited toparticipating individual life insurance policies and participatingindividual annuity contracts in force or considered to be in force bythe plan of conversion on the effective date of the plan of conversionfor which the mutual insurer has an experience based dividend scaledue, paid, or accrued by action of the board of directors of theconverting mutual in the year in which the plan of reorganization isadopted. However:
        (1) policies that would be included but for the fact that theirrecent issuance results in no dividends for an initial period maybe included;
        (2) policies that are in force as extended term insurance may beincluded; and
        (3) other categories of policies and benefits not described in thissubsection may be included or excluded, subject to the approvalof the commissioner.
As added by P.L.94-1999, SEC.3.