CHAPTER 11. USE OF A CLOSED BLOCK

IC 27-15-11
    Chapter 11. Use of a Closed Block

IC 27-15-11-1
Applicability of chapter
    Sec. 1. This chapter applies if a closed block is used for thepreservation of the reasonable dividend expectations of eligiblemembers and other policyholders.
As added by P.L.94-1999, SEC.3.

IC 27-15-11-2
Preparation of written plan of operation
    Sec. 2. The converting mutual shall prepare a written plan ofoperation for the closed block, consistent with the requirements ofthis article.
As added by P.L.94-1999, SEC.3.

IC 27-15-11-3
Operation of closed block; nonreversion of assets
    Sec. 3. The closed block shall be operated for the exclusivebenefit of policies and contracts included in it. No costs or expensesincurred in connection with the conversion shall be charged to theclosed block. Subject to termination of the closed block undersection 7 of this chapter, none of the assets allocated to the closedblock or the revenue derived from those assets may revert to thebenefit of the stockholders of the former mutual or any parentcompany.
As added by P.L.94-1999, SEC.3.

IC 27-15-11-4
Sufficiency of assets
    Sec. 4. The assets allocated to the closed block, together with therevenue from the closed block, must be reasonably sufficient to:
        (1) support the business in the closed block until the time thelast policy in the closed block has terminated, includingpayment of claims and those expenses and taxes as are specifiedin the plan of conversion; and
        (2) provide for:
            (A) continuation of dividend scales in effect on the date theboard of directors adopted the resolution proposing the planof conversion, if the experience underlying those scalescontinues; and
            (B) appropriate adjustments in the scales if the experiencechanges.
As added by P.L.94-1999, SEC.3.

IC 27-15-11-5
Designation of assets
    Sec. 5. The assets assigned to a closed block shall be specified inthe plan of operation and must consist of:        (1) a list of designated assets of the converting mutual's generalaccount or specified segments of the converting mutual'sgeneral account, which list shall change periodically to reflectthe acquisition and disposition of assets;
        (2) a designated portion of each and every asset of theconverting mutual's general account or specified segments ofthe converting mutual's general account, which portion shallchange periodically to reflect the cash flows of the closedblock; or
        (3) assets designated by a combination of the methods describedin this section.
As added by P.L.94-1999, SEC.3.

IC 27-15-11-6
Methods for assignment or designation of assets
    Sec. 6. The plan of operation must specify the following:
        (1) The method of assignment of closed block assets referred toin section 5 of this chapter that is being used.
        (2) The methods by which the designations of assets or portionsof assets are changed during the course of closed blockoperations.
As added by P.L.94-1999, SEC.3.

IC 27-15-11-7
Conditions for ceasing maintenance of closed block
    Sec. 7. The plan of operation must provide for the conditionsunder which the former mutual, with the approval of thecommissioner, may cease to maintain the closed block.
As added by P.L.94-1999, SEC.3.

IC 27-15-11-8
Annual reports and reviews of former mutual
    Sec. 8. The former mutual shall:
        (1) submit to the commissioner annual reports, in a formacceptable to the commissioner, that account for and describethe operations of the closed block; and
        (2) as specified in the plan of operation, provide at least everythree (3) years for reviews of, and reports and opinions on, theclosed block by an independent actuary, unless otherwisedirected by the commissioner.
As added by P.L.94-1999, SEC.3.