IC 27-3-2
    Chapter 2. Assessment Plans.Reorganization Into StockCompanies

IC 27-3-2-1
Authority to issue stock
    Sec. 1. Any insurance company organized and doing businessunder the laws of this state on what is known as the assessment plan,and having more than one thousand (1,000) members, and a reservefund of not less than one hundred thousand dollars ($100,000), ishereby authorized subject to the limitations hereinafter contained, toissue stock in shares of fifty dollars ($50.00) each, to an amount ofnot less than one hundred thousand (100,000) nor more than fivehundred thousand dollars ($500,000), and to receive subscriptionstherefor.
(Formerly: Acts 1895, c.158, s.1.)

IC 27-3-2-2
Notice of meeting; vote of members
    Sec. 2. Before issuing any stock as provided in section 1 of thischapter, such company shall, at least four (4) weeks before themeeting provided for in this chapter, cause a printed notice of thetime, place, and purpose of such meeting to be mailed to each of itsmembers, and shall cause public notice to be given by publicationthereof, at least once a week, for four (4) weeks, in a newspaper ofgeneral circulation in the county wherein is located the principaloffice of said company, that the proposal to issue stock in pursuanceof this act, will be submitted to the members of such company at ameeting to be held at a time and place to be named in such notice. If,after due mailing and publication of such notice, two-thirds (2/3) ofall the members (present at such meeting), either in person or byproxy, shall vote in favor of a proposal to issue stock as aforesaid,then the authority conferred by section 1 of this chapter, shall takeeffect, and subscription books may be opened.
(Formerly: Acts 1895, c.158, s.2.) As amended by P.L.252-1985,SEC.143.

IC 27-3-2-3
Subscription rights
    Sec. 3. Every person who is a member of such company on theday of such meeting shall, for thirty (30) days after the opening ofsubscription books as aforesaid, be entitled to subscribe to thatproportionate number of shares of the capital stock, agreed upon tobe issued, which the premium note or notes owing by such memberand held by such company on unexpired policies, in force on the dayof such meeting aforesaid, shall bear to the entire amount of suchnotes then held by such company, and upon the payment of suchsubscription, said note or notes shall be canceled and delivered tosuch members. If at the end of thirty (30) days from the opening ofsubscription books, the full amount of the capital stock designated

has not been subscribed under the provisions of this section, thenother subscriptions may be received, to be paid for as the directors ofsaid company may require within eighteen (18) months.
(Formerly: Acts 1895, c.158, s.3.)

IC 27-3-2-4
By-laws; directors
    Sec. 4. When all the stock shall have been subscribed as aforesaid,the stockholders shall adopt by-laws for the government of suchcompany not inconsistent with the laws of the state of Indiana,naming therein the number of directors, which shall not be less thanseven (7) nor more than thirteen (13), who shall manage the affairsof said company, and shall at once elect the new directors for theensuing year, a majority of whom shall constitute a quorum for thetransaction of business.
(Formerly: Acts 1895, c.158, s.4.)

IC 27-3-2-5
Certificate of incorporation; body corporate; deposit of securities;change of deposited securities
    Sec. 5. And thereupon, when all of said stock shall have beensubscribed, a statement shall be filed with the secretary of state, andthat officer shall give to such company a certificate of incorporationunder his seal of office, declaring the corporate name of suchcompany, the amount of capital stock, and the amount of securitiesdeposited with the auditor of state, as hereinafter provided, the namesof the directors who are to conduct the business of the company forthe first year, and henceforth upon the payment to such officer of thefee provided by law to be paid for the incorporation of joint stockcompanies; and said company shall then become a body corporate,with the power and authority to sue and be sued as such, in anyproper court, and such company may carry on the business ofinsuring property against loss or damage by fire, in a manner notinconsistent with the laws of this state, as a stock company:Provided, however, That before such company shall issue anypolicies of insurance, such company shall deposit in the office of theauditor of state of Indiana, stocks, bonds or notes to be approved bysaid auditor, to the amount of twenty-five per cent (25%) of thecapital stock of said company, the interest on which is to be paid tosaid company: Provided, That the securities so held may be replacedby other securities to be first approved by said auditor, when byreason of their maturity or other good cause, it shall seem necessaryor proper for the best interest of such company to replace them.
(Formerly: Acts 1895, c.158, s.5.)

IC 27-3-2-6
Officers; election; bond
    Sec. 6. Said directors shall, upon the receipt by the company ofsaid certificate of incorporation, immediately elect a president,vice-president, secretary and treasurer from their number, who shall

be sworn to perform faithfully the duties of their respective offices,and who shall give bond for a sum and in a manner to be prescribedin the by-laws of such company.
(Formerly: Acts 1895, c.158, s.6.)

IC 27-3-2-7
Option to discontinue writing insurance on mutual or assessmentplan
    Sec. 7. It shall not be obligatory upon any company, after theissuing of stock as aforesaid, to accept applications for insuranceupon the mutual or assessment plan.
(Formerly: Acts 1895, c.158, s.7.)

IC 27-3-2-8
Treatment of assets
    Sec. 8. No part of the assets now possessed by such company, orthat shall be possessed at the time of the meeting at which it isdetermined to issue stock, or which may be acquired in the interim,shall be divided among the members of such company, or beexpended, except for the ordinary disbursements of such companymade in the usual course of its business, including losses incurredupon its policies, but such assets shall remain and constitute asheretofore a fund in the hands of such company for the security ofthe holders of its policies.
(Formerly: Acts 1895, c.158, s.8.)

IC 27-3-2-9
Annual report
    Sec. 9. Such company shall, by its board of directors make areport, upon the first day of January of each year, of the condition ofstock, showing the amount of capital stock, the number and amountof policies issued, the nature and kind of risks taken, the lossessustained, and the assets of every nature on hand or belonging to thecompany, which report shall be signed and sworn to by a majority ofthe directors of such company and published in a newspaper ofgeneral circulation in the county in which the company shall have itsprincipal office.
(Formerly: Acts 1895, c.158, s.9.)