IC 27-5.1-3
    Chapter 3. Standard Farm Mutual Insurance Companies

IC 27-5.1-3-1
Standard company; supplementation of chapter; limitation ontypes of insurance provided
    Sec. 1. (a) This chapter supplements the requirements set forth fora standard company in IC 27-5.1-2.
    (b) A standard company may not insure a policyholder of the farmmutual insurance company:
        (1) against loss to a motor vehicle owned by the policyholderfrom peril;
        (2) against liability resulting from the use of a motor vehicleowned by the policyholder;
        (3) for property loss in connection with a specific loan or othercredit transaction; or
        (4) for personal, commercial, and farm liability.
As added by P.L.129-2003, SEC.8.

IC 27-5.1-3-2
Powers; kinds of insurance coverage
    Sec. 2. A standard company that is issued a certificate of authorityunder this article may:
        (1) perform the business of insurance on:
            (A) an assessable;
            (B) a mutual; and
            (C) a nonprofit;
        basis;
        (2) insure the property of policyholders of the standardcompany against loss or damage that is caused by:
            (A) fire;
            (B) windstorm;
            (C) causes specified under an extended coverage provision;and
            (D) other perils that are not specifically excluded in thepolicy form; and
        (3) insure the property of policyholders of the standardcompany against:
            (A) loss of use;
            (B) loss of occupancy;
            (C) loss of rents; and
            (D) additional expenses;
        that result from direct loss or damage to covered property.
As added by P.L.129-2003, SEC.8.

IC 27-5.1-3-3
Company territory expansion; net retention per risk; investments
    Sec. 3. (a) A standard company may not insure property locatedoutside the standard company's territory, as described in the standardcompany's articles of incorporation, unless the standard company

meets the following requirements for expansion:
        (1) A standard company with annual direct written premiumsthat total not less than one hundred thousand dollars ($100,000)may expand the territory in which the standard company insuresproperty to not more than ten (10) counties if the expansion isapproved by the affirmative vote of a majority of the standardcompany's:
            (A) board of directors; or
            (B) policyholders present and voting at a meeting of thepolicyholders.
        (2) A standard company with annual direct written premiumsthat total not less than two hundred fifty thousand dollars($250,000) may expand the territory in which the standardcompany insures property to more than ten (10) counties if theexpansion is approved by the affirmative vote of a majority ofthe standard company's:
            (A) board of directors; or
            (B) policyholders present and voting at a meeting of thepolicyholders.
    (b) The net retention per risk of a standard company may notexceed two-tenths percent (0.2%) of the standard company'sinsurance in force.
    (c) A standard company shall make investments in accordancewith IC 27-1-13-3.
As added by P.L.129-2003, SEC.8.

IC 27-5.1-3-4
Policyholder surplus; reinsurance
    Sec. 4. A standard company may issue an insurance policyinsuring against loss or damage to property of a policyholder of thestandard company from the perils specified in section 2 of thischapter in a county located in Indiana if the standard companymaintains a policyholder surplus or reinsurance that thecommissioner determines is sufficient to protect the financialstability of the standard company.
As added by P.L.129-2003, SEC.8.

IC 27-5.1-3-5
Annual statements
    Sec. 5. (a) A standard company shall, not later than March 1,prepare and file with the commissioner an annual statement:
        (1) that is on a form prescribed by the commissioner;
        (2) that is verified by an affidavit of the:
            (A) president; and
            (B) secretary;
        of the board of the standard company and individuals who areauthorized to do business on behalf of the standard company;and
        (3) that reflects the financial condition of the standard companyas of the end of the calendar year immediately preceding the

date of the annual statement.
    (b) An annual statement prepared and filed under subsection (a)must be presented at the annual meeting of the standard company.
    (c) An annual statement filed under subsection (a) must beaccompanied by the filing fee set forth under IC 27-1-3-15.
As added by P.L.129-2003, SEC.8.