IC 27-3-2
Chapter 2. Assessment Plans.Reorganization Into Stock
Companies
IC 27-3-2-1 Authority to issue stock
Sec. 1. Any insurance company organized and doing business
under the laws of this state on what is known as the assessment plan,
and having more than one thousand (1,000) members, and a reserve
fund of not less than one hundred thousand dollars ($100,000), is
hereby authorized subject to the limitations hereinafter contained, to
issue stock in shares of fifty dollars ($50.00) each, to an amount of
not less than one hundred thousand (100,000) nor more than five
hundred thousand dollars ($500,000), and to receive subscriptions
therefor. (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 this
chapter, such company shall, at least four (4) weeks before the
meeting provided for in this chapter, cause a printed notice of the
time, place, and purpose of such meeting to be mailed to each of its
members, and shall cause public notice to be given by publication
thereof, at least once a week, for four (4) weeks, in a newspaper of
general circulation in the county wherein is located the principal
office of said company, that the proposal to issue stock in pursuance
of this act, will be submitted to the members of such company at a
meeting 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) of
all the members (present at such meeting), either in person or by
proxy, shall vote in favor of a proposal to issue stock as aforesaid,
then the authority conferred by section 1 of this chapter, shall take
effect, 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 the
day of such meeting shall, for thirty (30) days after the opening of
subscription books as aforesaid, be entitled to subscribe to that
proportionate number of shares of the capital stock, agreed upon to
be issued, which the premium note or notes owing by such member
and held by such company on unexpired policies, in force on the day
of such meeting aforesaid, shall bear to the entire amount of such
notes then held by such company, and upon the payment of such
subscription, said note or notes shall be canceled and delivered to
such members. If at the end of thirty (30) days from the opening of
subscription books, the full amount of the capital stock designated
has not been subscribed under the provisions of this section, then
other subscriptions may be received, to be paid for as the directors of
said 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 such
company not inconsistent with the laws of the state of Indiana,
naming therein the number of directors, which shall not be less than
seven (7) nor more than thirteen (13), who shall manage the affairs
of said company, and shall at once elect the new directors for the
ensuing year, a majority of whom shall constitute a quorum for the
transaction 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 been
subscribed, a statement shall be filed with the secretary of state, and
that officer shall give to such company a certificate of incorporation
under his seal of office, declaring the corporate name of such
company, the amount of capital stock, and the amount of securities
deposited with the auditor of state, as hereinafter provided, the names
of the directors who are to conduct the business of the company for
the first year, and henceforth upon the payment to such officer of the
fee provided by law to be paid for the incorporation of joint stock
companies; and said company shall then become a body corporate,
with the power and authority to sue and be sued as such, in any
proper court, and such company may carry on the business of
insuring property against loss or damage by fire, in a manner not
inconsistent with the laws of this state, as a stock company:
Provided, however, That before such company shall issue any
policies of insurance, such company shall deposit in the office of the
auditor of state of Indiana, stocks, bonds or notes to be approved by
said auditor, to the amount of twenty-five per cent (25%) of the
capital stock of said company, the interest on which is to be paid to
said company: Provided, That the securities so held may be replaced
by other securities to be first approved by said auditor, when by
reason of their maturity or other good cause, it shall seem necessary
or 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 of
said 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 prescribed
in 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 assessment
plan
Sec. 7. It shall not be obligatory upon any company, after the
issuing of stock as aforesaid, to accept applications for insurance
upon 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, or
that shall be possessed at the time of the meeting at which it is
determined to issue stock, or which may be acquired in the interim,
shall be divided among the members of such company, or be
expended, except for the ordinary disbursements of such company
made in the usual course of its business, including losses incurred
upon its policies, but such assets shall remain and constitute as
heretofore a fund in the hands of such company for the security of
the 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 a
report, upon the first day of January of each year, of the condition of
stock, showing the amount of capital stock, the number and amount
of policies issued, the nature and kind of risks taken, the losses
sustained, and the assets of every nature on hand or belonging to the
company, which report shall be signed and sworn to by a majority of
the directors of such company and published in a newspaper of
general circulation in the county in which the company shall have its
principal office. (Formerly: Acts 1895, c.158, s.9.)
IC 27-3-2
Chapter 2. Assessment Plans.Reorganization Into Stock
Companies
IC 27-3-2-1 Authority to issue stock
Sec. 1. Any insurance company organized and doing business
under the laws of this state on what is known as the assessment plan,
and having more than one thousand (1,000) members, and a reserve
fund of not less than one hundred thousand dollars ($100,000), is
hereby authorized subject to the limitations hereinafter contained, to
issue stock in shares of fifty dollars ($50.00) each, to an amount of
not less than one hundred thousand (100,000) nor more than five
hundred thousand dollars ($500,000), and to receive subscriptions
therefor. (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 this
chapter, such company shall, at least four (4) weeks before the
meeting provided for in this chapter, cause a printed notice of the
time, place, and purpose of such meeting to be mailed to each of its
members, and shall cause public notice to be given by publication
thereof, at least once a week, for four (4) weeks, in a newspaper of
general circulation in the county wherein is located the principal
office of said company, that the proposal to issue stock in pursuance
of this act, will be submitted to the members of such company at a
meeting 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) of
all the members (present at such meeting), either in person or by
proxy, shall vote in favor of a proposal to issue stock as aforesaid,
then the authority conferred by section 1 of this chapter, shall take
effect, 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 the
day of such meeting shall, for thirty (30) days after the opening of
subscription books as aforesaid, be entitled to subscribe to that
proportionate number of shares of the capital stock, agreed upon to
be issued, which the premium note or notes owing by such member
and held by such company on unexpired policies, in force on the day
of such meeting aforesaid, shall bear to the entire amount of such
notes then held by such company, and upon the payment of such
subscription, said note or notes shall be canceled and delivered to
such members. If at the end of thirty (30) days from the opening of
subscription books, the full amount of the capital stock designated
has not been subscribed under the provisions of this section, then
other subscriptions may be received, to be paid for as the directors of
said 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 such
company not inconsistent with the laws of the state of Indiana,
naming therein the number of directors, which shall not be less than
seven (7) nor more than thirteen (13), who shall manage the affairs
of said company, and shall at once elect the new directors for the
ensuing year, a majority of whom shall constitute a quorum for the
transaction 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 been
subscribed, a statement shall be filed with the secretary of state, and
that officer shall give to such company a certificate of incorporation
under his seal of office, declaring the corporate name of such
company, the amount of capital stock, and the amount of securities
deposited with the auditor of state, as hereinafter provided, the names
of the directors who are to conduct the business of the company for
the first year, and henceforth upon the payment to such officer of the
fee provided by law to be paid for the incorporation of joint stock
companies; and said company shall then become a body corporate,
with the power and authority to sue and be sued as such, in any
proper court, and such company may carry on the business of
insuring property against loss or damage by fire, in a manner not
inconsistent with the laws of this state, as a stock company:
Provided, however, That before such company shall issue any
policies of insurance, such company shall deposit in the office of the
auditor of state of Indiana, stocks, bonds or notes to be approved by
said auditor, to the amount of twenty-five per cent (25%) of the
capital stock of said company, the interest on which is to be paid to
said company: Provided, That the securities so held may be replaced
by other securities to be first approved by said auditor, when by
reason of their maturity or other good cause, it shall seem necessary
or 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 of
said 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 prescribed
in 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 assessment
plan
Sec. 7. It shall not be obligatory upon any company, after the
issuing of stock as aforesaid, to accept applications for insurance
upon 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, or
that shall be possessed at the time of the meeting at which it is
determined to issue stock, or which may be acquired in the interim,
shall be divided among the members of such company, or be
expended, except for the ordinary disbursements of such company
made in the usual course of its business, including losses incurred
upon its policies, but such assets shall remain and constitute as
heretofore a fund in the hands of such company for the security of
the 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 a
report, upon the first day of January of each year, of the condition of
stock, showing the amount of capital stock, the number and amount
of policies issued, the nature and kind of risks taken, the losses
sustained, and the assets of every nature on hand or belonging to the
company, which report shall be signed and sworn to by a majority of
the directors of such company and published in a newspaper of
general circulation in the county in which the company shall have its
principal office. (Formerly: Acts 1895, c.158, s.9.)
IC 27-3-2
Chapter 2. Assessment Plans.Reorganization Into Stock
Companies
IC 27-3-2-1 Authority to issue stock
Sec. 1. Any insurance company organized and doing business
under the laws of this state on what is known as the assessment plan,
and having more than one thousand (1,000) members, and a reserve
fund of not less than one hundred thousand dollars ($100,000), is
hereby authorized subject to the limitations hereinafter contained, to
issue stock in shares of fifty dollars ($50.00) each, to an amount of
not less than one hundred thousand (100,000) nor more than five
hundred thousand dollars ($500,000), and to receive subscriptions
therefor. (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 this
chapter, such company shall, at least four (4) weeks before the
meeting provided for in this chapter, cause a printed notice of the
time, place, and purpose of such meeting to be mailed to each of its
members, and shall cause public notice to be given by publication
thereof, at least once a week, for four (4) weeks, in a newspaper of
general circulation in the county wherein is located the principal
office of said company, that the proposal to issue stock in pursuance
of this act, will be submitted to the members of such company at a
meeting 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) of
all the members (present at such meeting), either in person or by
proxy, shall vote in favor of a proposal to issue stock as aforesaid,
then the authority conferred by section 1 of this chapter, shall take
effect, 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 the
day of such meeting shall, for thirty (30) days after the opening of
subscription books as aforesaid, be entitled to subscribe to that
proportionate number of shares of the capital stock, agreed upon to
be issued, which the premium note or notes owing by such member
and held by such company on unexpired policies, in force on the day
of such meeting aforesaid, shall bear to the entire amount of such
notes then held by such company, and upon the payment of such
subscription, said note or notes shall be canceled and delivered to
such members. If at the end of thirty (30) days from the opening of
subscription books, the full amount of the capital stock designated
has not been subscribed under the provisions of this section, then
other subscriptions may be received, to be paid for as the directors of
said 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 such
company not inconsistent with the laws of the state of Indiana,
naming therein the number of directors, which shall not be less than
seven (7) nor more than thirteen (13), who shall manage the affairs
of said company, and shall at once elect the new directors for the
ensuing year, a majority of whom shall constitute a quorum for the
transaction 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 been
subscribed, a statement shall be filed with the secretary of state, and
that officer shall give to such company a certificate of incorporation
under his seal of office, declaring the corporate name of such
company, the amount of capital stock, and the amount of securities
deposited with the auditor of state, as hereinafter provided, the names
of the directors who are to conduct the business of the company for
the first year, and henceforth upon the payment to such officer of the
fee provided by law to be paid for the incorporation of joint stock
companies; and said company shall then become a body corporate,
with the power and authority to sue and be sued as such, in any
proper court, and such company may carry on the business of
insuring property against loss or damage by fire, in a manner not
inconsistent with the laws of this state, as a stock company:
Provided, however, That before such company shall issue any
policies of insurance, such company shall deposit in the office of the
auditor of state of Indiana, stocks, bonds or notes to be approved by
said auditor, to the amount of twenty-five per cent (25%) of the
capital stock of said company, the interest on which is to be paid to
said company: Provided, That the securities so held may be replaced
by other securities to be first approved by said auditor, when by
reason of their maturity or other good cause, it shall seem necessary
or 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 of
said 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 prescribed
in 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 assessment
plan
Sec. 7. It shall not be obligatory upon any company, after the
issuing of stock as aforesaid, to accept applications for insurance
upon 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, or
that shall be possessed at the time of the meeting at which it is
determined to issue stock, or which may be acquired in the interim,
shall be divided among the members of such company, or be
expended, except for the ordinary disbursements of such company
made in the usual course of its business, including losses incurred
upon its policies, but such assets shall remain and constitute as
heretofore a fund in the hands of such company for the security of
the 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 a
report, upon the first day of January of each year, of the condition of
stock, showing the amount of capital stock, the number and amount
of policies issued, the nature and kind of risks taken, the losses
sustained, and the assets of every nature on hand or belonging to the
company, which report shall be signed and sworn to by a majority of
the directors of such company and published in a newspaper of
general circulation in the county in which the company shall have its
principal office. (Formerly: Acts 1895, c.158, s.9.)
