IC 27-5.1-4
Chapter 4. Extended Farm Mutual Insurance Companies
IC 27-5.1-4-1 Extended company requirements
Sec. 1. An extended company is subject to the requirements of
IC 27-5.1-2 and this chapter. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-2 Companies existing on June 30, 2003; extended company election;
amended certificate of authority
Sec. 2. (a) A farm mutual insurance company that was authorized
to provide insurance in Indiana on June 30, 2003, may elect to obtain
a certificate of authority as an extended company.
(b) An election under subsection (a) is made by:
(1) an affirmative vote by the board of directors of the farm
mutual insurance company:
(A) on a resolution to convert to an extended company; and
(B) on an amendment of the articles of incorporation of the
farm mutual insurance company; and
(2) filing:
(A) the resolution;
(B) the amended articles of incorporation; and
(C) other information that the commissioner considers
necessary for review;
with the commissioner.
(c) The commissioner shall, upon:
(1) receiving a filing specified under subsection (b)(2); and
(2) determining that the farm mutual insurance company is in
compliance with the requirements of this article and other
applicable law;
issue an amended certificate of authority to the farm mutual
insurance company authorizing the farm mutual insurance company
as an extended company.
(d) A farm mutual insurance company, after receiving an amended
certificate of authority under subsection (c):
(1) is subject to the requirements of this chapter; and
(2) may commence the business of insurance as an extended
company. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-3 Kinds of insurance coverage
Sec. 3. An extended company may:
(1) insure the property of policyholders of the extended
company 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 specified in the policy form;
(2) insure the property of policyholders of the extended
company 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; and
(3) provide other kinds of insurance that are approved by the
commissioner. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-4 Financial and reinsurance requirements
Sec. 4. An extended company shall comply with the following
financial and reinsurance requirements if the extended company
provides the types of insurance described in section 3 of this chapter:
(1) The extended company shall maintain a policyholder surplus
as required under IC 27-1-6-15.
(2) The net retention per risk that an extended company may
maintain may not exceed two-tenths percent (0.2%) of the
extended company's insurance in force. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-5 Collections through assessments and premiums
Sec. 5. (a) An extended company:
(1) may collect a membership fee and an initial premium charge
that are prescribed by the board of directors of the extended
company; and
(2) shall collect, not less than annually, an amount that is
sufficient to enable the extended company to:
(A) pay losses and expenses; and
(B) create and maintain a policyholder surplus in accordance
with the articles of incorporation and bylaws of the extended
company.
(b) Collections under subsection (a) are subject to the following
requirements:
(1) Collections must be made through assessments or premiums
charged by the extended company on certain insurance policies
issued by the extended company as determined by the board of
directors of the extended company.
(2) A policyholder that holds an insurance policy that is issued
on a basis other than a premium basis:
(A) may be charged an advance assessment that is payable
not later than the time at which the insurance policy is
issued, as determined by the board of directors of the
extended company; and
(B) may be assessed if a further assessment is required under
the articles of incorporation of the extended company.
(c) The terms and conditions of assessments made under this
section must be clearly disclosed in the insurance policy. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-6 Policyholder surplus
Sec. 6. The following requirements apply to the policyholder
surplus of an extended company:
(1) The articles of incorporation of the extended company must
provide for the existence, maintenance, and use of the
policyholder surplus.
(2) The policyholder surplus may be used only for the payment
of losses and expenses considered necessary by the board of
directors of the extended company.
(3) The existence or maintenance of the policyholder surplus
does not relieve a policyholder of any assessment or other
obligation that the:
(A) policyholder owes to the extended company; or
(B) extended company has levied against the policyholder.
(4) If the extended company is dissolved, the policyholder
surplus must be treated in the same manner as any other asset
of the extended company. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-7 Investments
Sec. 7. An extended company shall make investments in
accordance with IC 27-1-13-3. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-8 Annual statement
Sec. 8. (a) An extended 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 directors of the extended company; and
(3) that reflects the condition of the extended company as 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 extended company.
(c) An annual statement filed under subsection (a) must be
accompanied by the filing fee set forth in IC 27-1-3-15. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4
Chapter 4. Extended Farm Mutual Insurance Companies
IC 27-5.1-4-1 Extended company requirements
Sec. 1. An extended company is subject to the requirements of
IC 27-5.1-2 and this chapter. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-2 Companies existing on June 30, 2003; extended company election;
amended certificate of authority
Sec. 2. (a) A farm mutual insurance company that was authorized
to provide insurance in Indiana on June 30, 2003, may elect to obtain
a certificate of authority as an extended company.
(b) An election under subsection (a) is made by:
(1) an affirmative vote by the board of directors of the farm
mutual insurance company:
(A) on a resolution to convert to an extended company; and
(B) on an amendment of the articles of incorporation of the
farm mutual insurance company; and
(2) filing:
(A) the resolution;
(B) the amended articles of incorporation; and
(C) other information that the commissioner considers
necessary for review;
with the commissioner.
(c) The commissioner shall, upon:
(1) receiving a filing specified under subsection (b)(2); and
(2) determining that the farm mutual insurance company is in
compliance with the requirements of this article and other
applicable law;
issue an amended certificate of authority to the farm mutual
insurance company authorizing the farm mutual insurance company
as an extended company.
(d) A farm mutual insurance company, after receiving an amended
certificate of authority under subsection (c):
(1) is subject to the requirements of this chapter; and
(2) may commence the business of insurance as an extended
company. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-3 Kinds of insurance coverage
Sec. 3. An extended company may:
(1) insure the property of policyholders of the extended
company 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 specified in the policy form;
(2) insure the property of policyholders of the extended
company 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; and
(3) provide other kinds of insurance that are approved by the
commissioner. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-4 Financial and reinsurance requirements
Sec. 4. An extended company shall comply with the following
financial and reinsurance requirements if the extended company
provides the types of insurance described in section 3 of this chapter:
(1) The extended company shall maintain a policyholder surplus
as required under IC 27-1-6-15.
(2) The net retention per risk that an extended company may
maintain may not exceed two-tenths percent (0.2%) of the
extended company's insurance in force. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-5 Collections through assessments and premiums
Sec. 5. (a) An extended company:
(1) may collect a membership fee and an initial premium charge
that are prescribed by the board of directors of the extended
company; and
(2) shall collect, not less than annually, an amount that is
sufficient to enable the extended company to:
(A) pay losses and expenses; and
(B) create and maintain a policyholder surplus in accordance
with the articles of incorporation and bylaws of the extended
company.
(b) Collections under subsection (a) are subject to the following
requirements:
(1) Collections must be made through assessments or premiums
charged by the extended company on certain insurance policies
issued by the extended company as determined by the board of
directors of the extended company.
(2) A policyholder that holds an insurance policy that is issued
on a basis other than a premium basis:
(A) may be charged an advance assessment that is payable
not later than the time at which the insurance policy is
issued, as determined by the board of directors of the
extended company; and
(B) may be assessed if a further assessment is required under
the articles of incorporation of the extended company.
(c) The terms and conditions of assessments made under this
section must be clearly disclosed in the insurance policy. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-6 Policyholder surplus
Sec. 6. The following requirements apply to the policyholder
surplus of an extended company:
(1) The articles of incorporation of the extended company must
provide for the existence, maintenance, and use of the
policyholder surplus.
(2) The policyholder surplus may be used only for the payment
of losses and expenses considered necessary by the board of
directors of the extended company.
(3) The existence or maintenance of the policyholder surplus
does not relieve a policyholder of any assessment or other
obligation that the:
(A) policyholder owes to the extended company; or
(B) extended company has levied against the policyholder.
(4) If the extended company is dissolved, the policyholder
surplus must be treated in the same manner as any other asset
of the extended company. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-7 Investments
Sec. 7. An extended company shall make investments in
accordance with IC 27-1-13-3. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-8 Annual statement
Sec. 8. (a) An extended 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 directors of the extended company; and
(3) that reflects the condition of the extended company as 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 extended company.
(c) An annual statement filed under subsection (a) must be
accompanied by the filing fee set forth in IC 27-1-3-15. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4
Chapter 4. Extended Farm Mutual Insurance Companies
IC 27-5.1-4-1 Extended company requirements
Sec. 1. An extended company is subject to the requirements of
IC 27-5.1-2 and this chapter. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-2 Companies existing on June 30, 2003; extended company election;
amended certificate of authority
Sec. 2. (a) A farm mutual insurance company that was authorized
to provide insurance in Indiana on June 30, 2003, may elect to obtain
a certificate of authority as an extended company.
(b) An election under subsection (a) is made by:
(1) an affirmative vote by the board of directors of the farm
mutual insurance company:
(A) on a resolution to convert to an extended company; and
(B) on an amendment of the articles of incorporation of the
farm mutual insurance company; and
(2) filing:
(A) the resolution;
(B) the amended articles of incorporation; and
(C) other information that the commissioner considers
necessary for review;
with the commissioner.
(c) The commissioner shall, upon:
(1) receiving a filing specified under subsection (b)(2); and
(2) determining that the farm mutual insurance company is in
compliance with the requirements of this article and other
applicable law;
issue an amended certificate of authority to the farm mutual
insurance company authorizing the farm mutual insurance company
as an extended company.
(d) A farm mutual insurance company, after receiving an amended
certificate of authority under subsection (c):
(1) is subject to the requirements of this chapter; and
(2) may commence the business of insurance as an extended
company. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-3 Kinds of insurance coverage
Sec. 3. An extended company may:
(1) insure the property of policyholders of the extended
company 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 specified in the policy form;
(2) insure the property of policyholders of the extended
company 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; and
(3) provide other kinds of insurance that are approved by the
commissioner. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-4 Financial and reinsurance requirements
Sec. 4. An extended company shall comply with the following
financial and reinsurance requirements if the extended company
provides the types of insurance described in section 3 of this chapter:
(1) The extended company shall maintain a policyholder surplus
as required under IC 27-1-6-15.
(2) The net retention per risk that an extended company may
maintain may not exceed two-tenths percent (0.2%) of the
extended company's insurance in force. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-5 Collections through assessments and premiums
Sec. 5. (a) An extended company:
(1) may collect a membership fee and an initial premium charge
that are prescribed by the board of directors of the extended
company; and
(2) shall collect, not less than annually, an amount that is
sufficient to enable the extended company to:
(A) pay losses and expenses; and
(B) create and maintain a policyholder surplus in accordance
with the articles of incorporation and bylaws of the extended
company.
(b) Collections under subsection (a) are subject to the following
requirements:
(1) Collections must be made through assessments or premiums
charged by the extended company on certain insurance policies
issued by the extended company as determined by the board of
directors of the extended company.
(2) A policyholder that holds an insurance policy that is issued
on a basis other than a premium basis:
(A) may be charged an advance assessment that is payable
not later than the time at which the insurance policy is
issued, as determined by the board of directors of the
extended company; and
(B) may be assessed if a further assessment is required under
the articles of incorporation of the extended company.
(c) The terms and conditions of assessments made under this
section must be clearly disclosed in the insurance policy. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-6 Policyholder surplus
Sec. 6. The following requirements apply to the policyholder
surplus of an extended company:
(1) The articles of incorporation of the extended company must
provide for the existence, maintenance, and use of the
policyholder surplus.
(2) The policyholder surplus may be used only for the payment
of losses and expenses considered necessary by the board of
directors of the extended company.
(3) The existence or maintenance of the policyholder surplus
does not relieve a policyholder of any assessment or other
obligation that the:
(A) policyholder owes to the extended company; or
(B) extended company has levied against the policyholder.
(4) If the extended company is dissolved, the policyholder
surplus must be treated in the same manner as any other asset
of the extended company. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-7 Investments
Sec. 7. An extended company shall make investments in
accordance with IC 27-1-13-3. As added by P.L.129-2003, SEC.8.
IC 27-5.1-4-8 Annual statement
Sec. 8. (a) An extended 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 directors of the extended company; and
(3) that reflects the condition of the extended company as 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 extended company.
(c) An annual statement filed under subsection (a) must be
accompanied by the filing fee set forth in IC 27-1-3-15. As added by P.L.129-2003, SEC.8.
