CHAPTER 1. LIFE INSURANCE.ASSESSMENT PLAN

IC 27-8
    ARTICLE 8. LIFE, ACCIDENT, AND HEALTH

IC 27-8-1
    Chapter 1. Life Insurance.Assessment Plan

IC 27-8-1-1
Authority to incorporate
    Sec. 1. Any number of persons not less than five (5) nor more thanthirteen (13), citizens of the United States, one (1) or more of whomshall be bona fide citizens and voters of this state, may associatethemselves together as a body corporate for the purpose oforganizing a corporation, association or society to transact thebusiness of life insurance on the assessment plan, subject to theconditions and restrictions hereinafter provided.
(Formerly: Acts 1883, c.136, s.1.)

IC 27-8-1-2
Corporate status and powers
    Sec. 2. A corporation, association, or society organized under theprovisions of this chapter shall be a body corporate and politic by thename stated in certificate of organization, and by that name, they andtheir successors:
        (1) may have succession, and shall be persons in law capable ofsuing and being sued;
        (2) may have power to make and enforce contracts in relationto the legitimate business of their corporation, association orsociety;
        (3) may have and use a common seal, and may change or alterthe same at pleasure, and they or their successors in theircorporate name shall in law be capable of taking, purchasing,holding, and disposing of real and personal estate for purposesof their association or society; and
        (4) may make bylaws not inconsistent with the constitution andlaw of this state or the United States, in which bylaws shall bedefined the manner and form of electing directors and officersof the corporation, association, or society, and the qualificationsand duties of the same, and also the qualifications andprivileges of members thereof.
(Formerly: Acts 1883, c.136, s.2.) As amended by P.L.252-1985,SEC.269.

IC 27-8-1-3
Name; approval; misleading similarity
    Sec. 3. The corporators shall submit the title or name of theproposed corporation to the auditor of state, who shall approve thesame, provided it indicates the object or purpose for which thecorporation is formed, and does not too closely resemble a title inuse. Before approving a title, it shall be the duty of the auditor ofstate to examine the titles of corporations appearing in all the

published insurance reports at his command, and not to approve anytitle that would tend to mislead the public on account of its tooclosely resembling some other title.
(Formerly: Acts 1883, c.136, s.3.)

IC 27-8-1-4
Statement of initial applications and deposit of first assessment
    Sec. 4. Before the charter is granted to any such corporation, itshall file its statement, sworn to by at least two (2) of its executiveofficers, with the proper state officers, showing that application hasbeen made for not less than two hundred thousand dollars ($200,000)insurance by not less than one hundred (100) persons, and that theamount of the first assessment on each policy or certificate has beendeposited in the bank to the credit of the mortuary fund; and it shallbe lawful for any corporation, association or society, or its agents, tosolicit and secure business to that amount, for the purpose hereinprovided, before its charter shall have been granted.
(Formerly: Acts 1883, c.136, s.4.)

IC 27-8-1-5
Assessment; statement of object
    Sec. 5. Assessment notices sent to members by any such anassociation shall state the object for which the money to be collectedfrom the insured is intended, and no part of the proceeds of anyassessment shall be applied to any other purpose than the statedpurpose for which it was collected.
(Formerly: Acts 1883, c.136, s.5.)

IC 27-8-1-6
Exemption of certificates from valuation; insurable interest
    Sec. 6. A policy or certificate issued by any such an associationshall be exempt from the valuation based upon the AmericanExperience Table, or any other table of mortality, in consequence ofsuch association conducting its business on the plan of assessingmembers, and such policy or certificate, when the payments thereonare made by any person other than the insured, and without thewritten consent of the insured, to be valid must be supported by aninsurable interest.
(Formerly: Acts 1883, c.136, s.6.)

IC 27-8-1-7
Restriction on kinds of certificates; expenses; segregation ofexpense and mortuary funds
    Sec. 7. No corporation, association, or society organized under theprovisions of this chapter shall issue endowment certificates orpolicies undertaking or promising to pay members during life, exceptfor accident or temporary illness, any stipulated sum of money. Theexpenses of such corporation, association, or society shall beprovided for by admission fees, and either fixed annual payments orassessments made and designated to be for such expenses, and no

part of the expense fund shall in any case be used to pay deathclaims, and no part of the mortuary fund shall in any case be used topay expenses.
(Formerly: Acts 1883, c.136, s.7.) As amended by P.L.252-1985,SEC.270.

IC 27-8-1-8
Annual statement; examination
    Sec. 8. Any corporation, association, or society carrying on thebusiness of life or accident insurance on the assessment plan shallsubmit annually, on or before February 28, under oath, to theinsurance commissioner a detailed statement of assets, liabilities,insurance in force, and number of persons upon whom risks are inforce on the preceding December 31, and answer such interrogatoriesas the commissioner, who shall furnish a blank for the purpose, may,under the provisions of this chapter make in order to ascertain itsfinancial character and condition, and shall pay to the commissioner,upon filing such statement, a fee of ten dollars ($10), and thecommissioner shall publish such statement in his annual report. Forthe purpose of verifying such statement, the commissioner shall, onpetition of a majority of the officers or of ten (10) members of suchassociation supported by the affidavit of one (1) or more of thepetitioners showing the necessity therefor, institute an examinationof its affairs to ascertain its true character and condition.
(Formerly: Acts 1883, c.136, s.8; Acts 1891, c.189, s.1.) As amendedby P.L.252-1985, SEC.271.

IC 27-8-1-9
Repealed
    (Repealed by Acts 1978, P.L.2, SEC.2728.)

IC 27-8-1-10
Quo warranto to remove officers or close business
    Sec. 10. Whenever any such corporation or association shall failto make its annual statement to the insurance commissioner beforeAugust 31, or if, in the opinion of the commissioner it is conductingits business fraudulently or not in compliance with this chapter or isnot carrying out its contract with the members in good faith, then itshall be the duty of the commissioner to communicate the fact to theattorney general, who may thereupon commence proceeding, by writof quo warranto against such corporation, association, or society,requiring it to show cause why its officers should not be removed orits business closed, and the court shall thereupon hear the allegationsand proofs of the respective parties; and if it shall appear to thesatisfaction of such court that the officers of such corporation,association, or society, or any one (1) or more of them, have beenguilty of any material irregularity or violation of law to the injury ofsuch corporation, association, or society, the said court shall decreea removal from office of the guilty party or parties and substitutesuitable persons to serve until the regular annual election, or until a

successor is regularly chosen; or if it shall appear to the court that theinterest of the public so requires, the court shall decree a dissolutionof such corporation, association, or society and a distribution of itseffects.
(Formerly: Acts 1883, c.136, s.10.) As amended by P.L.252-1985,SEC.272.

IC 27-8-1-11
Bonds of officers and agents
    Sec. 11. No agent or officer of such corporation, association orsociety, shall be permitted to collect or receive any dues orassessments for or on account of the same until he executes, jointlywith two (2) responsible sureties, a bond to the corporation, approvedby the board of directors thereof, in such sum as they shall prescribe,conditioned upon the payment of all dues, assessments or funds overto the proper officer of such corporation, and all receipts of any suchcorporation shall be paid into the hands of the treasurer thereof, whoshall, before assuming the duties of his office, give a bond in the sumof not less than ten thousand dollars ($10,000), with not less thantwo (2) sureties, to be approved by the board of directors, andconditioned for the faithful performance of his duties, and theaccounting for, and the proper payment and disbursement by him of,all moneys thereof which come into his hands.
(Formerly: Acts 1883, c.136, s.11.)

IC 27-8-1-12
Examination of sufficiency of treasurer's bond
    Sec. 12. Said bond of treasurer shall be examined as to itsefficiency annually by the auditor of state, and it shall then berenewed if he shall deem the present bond insufficient. Said bondshall be recorded in the recorder's office in the county in this state inwhich one (1) of the incorporators resides, and a certified copy ofsaid record shall, by said recorder, be forwarded to the auditor ofstate, who shall file and preserve the same in his office.
(Formerly: Acts 1883, c.136, s.12.)

IC 27-8-1-13
Qualification of foreign corporation
    Sec. 13. Any corporation, association or society, organized underthe laws of any other state or government to insure lives on theassessment plan, or any corporation carrying on the business of lifeor accident insurance on the assessment plan, shall be licensed by theauditor of state, upon the payment to the auditor of state of a fee oftwenty-five dollars ($25.00), to do business in this state. However,the corporation or association shall first deposit with the auditor ofstate a certified copy of its charter or articles of incorporation, a copyof its statement of business for the preceding year, with the namesand residence of its officers, sworn to by the president and secretary,or like officers, showing a detailed account of expenses and income,the amount of insurance in force, its assets and liabilities in detail,

and setting forth that it has the ability to pay its policies orcertificates to the full limit named therein; a certificate from theinsurance commissioner or from a judge or clerk of a court of recordof its home state, certifying that corporations or associations insuringlife in the assessment plan, and paying policies in full, or providingaccident indemnities, and chartered under the laws of this state arelegally entitled to do business in its home state; a copy of its policyor certificate of membership, application and by-laws, which mustshow that death losses are, in the main, provided for by assessmentupon the surviving members; and it shall legally designate anindividual resident of Indiana, a corporate resident of Indiana, or anauthorized Indiana insurer as its agent or attorney in fact, residing inthis state, upon whom service of process for said company orassociation may be made, and the agent or attorney in fact shallimmediately notify any corporation or association thus served.
(Formerly: Acts 1883, c.136, s.13.) As amended by P.L.268-1999,SEC.18.

IC 27-8-1-14
Retaliatory provision
    Sec. 14. When any other state or government shall impose anyobligation upon such corporation, association or society of this state,or their agents transacting business in such other state or government,the like obligations are hereby imposed on similar corporations,associations or societies of such other state or government, and theiragents or representatives, transacting business in this state.
(Formerly: Acts 1883, c.136, s.14; Acts 1889, c.169, s.2.)

IC 27-8-1-15
Foreign corporations; annual statement and fee; license revocationfor failure to file statement; solvency statement from foreign state
    Sec. 15. Such corporation, association or society, shall pay to theauditor of state, upon filing each annual statement, a fee of tendollars ($10.00). And in the event of its failure to make suchstatement on or before the thirty-first day of August of each year, theauditor of state shall revoke its license, and thereafter, or until suchstatement is made, it shall be deemed to be doing business unlawfullyin this state. When the auditor of state of this state shall have reasonto doubt the solvency of any such foreign corporation, association orsociety, he shall accept a statement from the insurance commissioner,or like officer of the state under whose authority it was organized, asprima facie evidence of its solvency.
(Formerly: Acts 1883, c.136, s.15.)

IC 27-8-1-16
Foreign corporations; fraudulent practices; quo warranto torevoke license
    Sec. 16. When, in the auditor's opinion, such corporation orassociation is in this state conducting its business fraudulently, or isnot carrying out its contracts with members residing in this state, in

good faith, he shall report the same to the attorney-general, who shallthereupon commence proceedings by writ of quo warranto againstsuch corporation or association, requiring it to show cause why itslicense to do business in this state should not be revoked.
(Formerly: Acts 1883, c.136, s.16.)

IC 27-8-1-17
Noncompliance; violations
    Sec. 17. An officer, agent, or employee of a corporation orassociation who knowingly permits the corporation or association todo business in Indiana, unless it has complied with the laws of thisstate applicable to the same, commits a Class B misdemeanor.
(Formerly: Acts 1883, c.136, s.17.) As amended by Acts 1978, P.L.2,SEC.2725.

IC 27-8-1-18
Exemption of fraternal societies
    Sec. 18. The provisions of this chapter shall in no way apply toany secret or fraternal society or lodge or association which, underthe supervision of a grand or supreme lodge, secures membershipthrough the lodge system exclusively, and provides insurance to itsmembers, nor to insurance organizations of a purely benevolentcharacter which pay no commission nor employ any paid insuranceproducer, organized under the laws of this or any other state.
(Formerly: Acts 1883, c.136, s.18.) As amended by P.L.252-1985,SEC.273; P.L.178-2003, SEC.58.