IC 27-15-12
    Chapter 12. Effect of Pending Claims on the Distribution ofConsideration to Members

IC 27-15-12-1
Delay of distribution
    Sec. 1. All or part of the consideration to be distributed to someor all of the eligible members may be delayed by more than six (6)months following the effective date of the plan of conversion if:
        (1) the plan of conversion includes a provision for theestablishment of a trust for that purpose; and
        (2) one (1) or more of the following claims have been assertedagainst a converting mutual and remain unresolved at theeffective date of the plan of conversion:
            (A) A claim seeking the imposition of a constructive orcharitable trust on assets of the converting mutual for thebenefit of policyholders, members, or other identified orunidentified persons.
            (B) A claim seeking distribution or return of assets, or otherform of compensation, from the converting mutual topolicyholders, members, or other identified or unidentifiedpersons.
            (C) A claim that arises out of or relates to the ownershipinterest of members of the converting mutual, or to the valueof their ownership interests, including any claim thatchallenges a statutory transaction engaged in by theconverting mutual before the effective date of the plan ofconversion.
As added by P.L.94-1999, SEC.3.

IC 27-15-12-2
Formation of trust under trust agreement; beneficiaries;satisfaction of claims; reports
    Sec. 2. (a) At the effective date of the plan of conversion, assetsadequate to satisfy a claim described in section 1 of this chapter,consisting of the consideration that otherwise would be distributeddirectly to eligible members, must be placed in trust under a trustagreement in a form approved by the commissioner. The trustee ortrustees of the trust shall:
        (1) be appointed by the board of directors of the convertingmutual, subject to disapproval of any trustee by thecommissioner; and
        (2) consist of one (1) or more institutions authorized by Indianalaw to act as corporate trustees.
    (b) The beneficiaries of the trust:
        (1) are the eligible members who, in the absence of the claims,would have been entitled to the consideration placed in thetrust; and
        (2) may consist of all of the eligible members or specifiedclasses or groups of eligible members.    (c) Assets of the trust shall be made available to pay or otherwisesatisfy the claims for which the trust has been established, theexpenses of the trust in contesting or resolving those claims, and anyother reasonable expenses of the trust. Upon final resolution of theclaims, by judgment, settlement or otherwise, or at such other timesas may be provided for in the trust agreement, the remaining assetsof the trust shall be distributed to the beneficiaries in accordancewith their respective interests in the trust.
    (d) Until the trust has been terminated, the trustee or trustees shallprepare reports not less frequently than annually, upon terminationof the trust, and at such other times as may be requested by thecommissioner or the former mutual. The reports must containinformation regarding the financial condition of the trust and thestatus of any resolved and pending claims. The reports shall beprovided to the commissioner and the former mutual and the reportsor summary reports shall be mailed at least annually to thebeneficiaries of the trust at the expense of the trust.
    (e) An interest in a trust established under this section does notconstitute a security under Indiana law.
    (f) The establishment of a trust or pendency of any claimdescribed in this chapter shall not delay or affect the effectiveness ofa plan of conversion or an amendment to the articles ofincorporation.
As added by P.L.94-1999, SEC.3.