IC 27-7-1-1 Participating underwriters; certificate of authority; application
Sec. 1. No persons, partnerships or corporations shall engage in
the business of such insurance as is herein specified as "Lloyds"
unless twenty-five (25) or more persons, partnerships or
corporations, a majority of whom shall be bona fide residents of the
state of Indiana shall have a certificate of authority from the auditor
of state (commissioner of insurance) so to do. The application for
such certificate of authority shall be signed by the attorney or
attorneys in fact of those persons desiring such certificate, and must
be accompanied by a declaration which must set forth the following
provisions:
1. The name under which the business is to be conducted, which
name shall contain the word "Lloyds," and shall not be similar to that
of any existing Lloyds association or corporation in this state, as, in
the opinion of the auditor of state, is calculated to deceive or
mislead.
2. The exact location of the principal office in which the business
is to be conducted, which office must be in the state of Indiana.
3. The kind of insurance intended to be written, which shall be
only as hereinafter stated.
4. An exact copy of the articles of association or copartnership
agreement, made by and between such underwriters.
5. Name, address and amount subscribed by each of the
underwriters so proposing to engage in said business.
6. The designation or appointment of one (1) or more attorneys in
fact, who shall have residence in Indiana, with full name and address,
upon any one of whom summons or consent legal process can be
served.
7. That amounts subscribed by said underwriters have been paid
as follows: Not less than twenty-five per cent (25%) of said
subscriptions in cash, not more than fifty percent (50%) of said
subscription secured by collateral note (payable on thirty (30) days'
demand) duly approved by a committee selected by the subscribers
to pass thereon, and not over twenty-five per cent (25%) of said
subscription evidenced by subscriber's individual note.
8. That the total of said subscription shall not be less than two
hundred and fifty thousand dollars ($250,000), and that at least
twenty-five per cent (25%) thereof has been paid in cash. (Formerly: Acts 1919, c.177, s.1.)
IC 27-7-1-2 Policies; filing; contents; special provisions
Sec. 2. There shall be filed with the auditor of state a copy of each
form of policy by it issued. Said policies shall show the name and
address, as well as the amount of the subscription of each subscriber,
and shall be signed by the attorneys in fact, and they shall contain the
following special provisions:
First: Whenever, under the terms of this policy, notice or consent
is required to be given to or by the company, notice or consent given
to or by the attorney or attorneys in fact shall be sufficient
compliance therewith, and each underwriter hereon shall be bound
thereby, the same as though notice or consent had been given to or
by each of such underwriters individually.
Second: In no event, shall the liability of any underwriter exceed
the sum underwritten by him or them hereon, and, in no event, shall
any underwriter be liable for any part of the sum underwritten hereon
by any other underwriter.
Third: The insured agrees by the acceptance of this policy that no
underwriter hereon shall, in any event, be liable for claims
exceeding, in the aggregate, on all policies, certificates or contracts
issued on his or their behalf, in the name of this Lloyds for an
amount in excess of the unpaid portion, if any, of his or their original
subscription or contribution to said Lloyds, as indorsed hereon.
Fourth: In case of action brought to enforce the provisions of this
policy, same shall be brought against the attorney or attorneys in fact
for the underwriters, as representing all of the said underwriters, and
each of the underwriters hereto hereby agrees to abide by the final
results of any suit so brought as fixing the proportionate amount of
his or their individual liability.
Fifth: This policy is made and accepted subject to all the
stipulations and conditions contained therein, together with such
other provisions, agreements or conditions as may be indorsed
hereon, or added hereto, and as to such provisions and conditions, no
officer, agent or representative shall have such power or be deemed
or held to have waived such provisions or conditions unless such
waiver, if any, shall be indorsed upon or attached hereto, nor shall
any privilege or permission affecting the insurance under this policy
exist or be claimed by the assured unless so indorsed or attached. (Formerly: Acts 1919, c.177, s.2.)
IC 27-7-1-3 Additional underwriters
Sec. 3. After any Lloyds is authorized to do business in this state
pursuant to this law, it may be joined by other and additional
underwriters, but, in that event, such underwriters who may
thereafter join such authorized Lloyds shall be held to be bound by
the documents on file with the auditor of state concerning such
Lloyds. (Formerly: Acts 1919, c.177, s.3.)
IC 27-7-1-4 Examination; issuance of certificate of authority
Sec. 4. After such documents specified shall have been filed, the
auditor of state shall cause an examination of such Lloyds to be
made, and after he has specified that all of the facts alleged in the
declaration are true, and that the articles of association or
copartnership agreement is of such character that the rights of the
policyholders will be protected thereunder, he shall issue, or cause
to be issued, a certificate of authority to such Lloyds to do such
business as is specified in the declaration, which certificate shall be
issued to such Lloyds under the name designated and approved,
authorizing the underwriters thereof to do the business permitted
through its attorney or attorneys in fact. (Formerly: Acts 1919, c.177, s.4.)
IC 27-7-1-5 Investments
Sec. 5. Any such Lloyds as may be thus authorized to do business
in this state shall not invest its funds except in accordance with the
laws of this state relative to the investment of the funds of domestic
stock insurance companies doing a similar business, except in such
securities as may be held by said Lloyds as a guaranty for the
payment of any subscription. (Formerly: Acts 1919, c.177, s.5.)
IC 27-7-1-6 Unearned premium reserve
Sec. 6. Such Lloyds shall maintain the same unearned premium
reserve as is required of all domestic stock companies writing a like
business. (Formerly: Acts 1919, c.177, s.6.)
IC 27-7-1-7 Insurance authorized under Lloyds plan; deposits; additional
deposits; withdrawal of deposits
Sec. 7. The following insurance shall be authorized and permitted
to be written by Lloyds under this chapter:
(1) For the purpose of making insurance on dwelling-houses,
stores and all kinds of buildings and household furniture, and
other property against loss or damage, including loss of use or
occupancy, by fire, lightning, windstorm, tornado, cyclone,
earthquake, hail, frost or snow, bombardment, invasion,
insurrection, riots or civil war or commotion, military or
usurped power, and by explosion, whether fire ensues or not,
except explosions on risks specified in this section, and also
against loss or damage by water to any goods or premises
arising from the breakage or leakage of sprinklers, pumps, or
other apparatuses erected for extinguishing fires, and of water
pipes, and against accidental injury to such sprinklers, pumps,
or other apparatuses, and upon vessels, boats, cargoes, goods,
merchandise, freight, and other property against loss or damage
by all or any of the risks of lake, river, canal, and inland
navigation and transportation, as well as by any or all of the
risks of credit and upon automobiles, whether stationary or
being operated under their power, which shall include all or any
of the hazards of fire, explosions, transportation, collision, loss
by legal liability for damage to property and to persons resulting
from the maintenance and use of automobiles and loss by
burglary or theft or both.
(2) For the purpose of making insurance upon vessels, freights,
goods, wares, merchandise, specie, bullion, jewels, profits,
commissions, bank notes, bills of exchange and other evidence
of debt, bottomry and respondentia interests, and every
insurance appertaining to or connected with marine risks and
risks of transportation and navigation, including the risks of
lake, river, canal, and inland transportation and navigation, and
to effect reinsurance on any risk of the subscribers hereto, or
any of said risks wholly or in part, or the transfer thereof, and
to accept any authorized risk whether direct or by reinsurance.
(3) For the purpose of making insurance against loss or damage
resulting from accident to or injury sustained by an employee
or other person for which accident or injury the insured is
liable.
Provided, that no such insurance shall be written by any Lloyds
under this chapter until such Lloyds shall have deposited with the
department of insurance of the state of Indiana the sum of
twenty-five thousand dollars ($25,000) in the direct or indirect
obligations of the United States or of any state of the United States.
In the event the total of all unsatisfied and unappealed from final
awards made by the worker's compensation board under IC 22-3-2
through IC 22-3-6 against any Lloyds having made the above deposit
shall exceed the amount of the above said deposit, then the
department of insurance may require such Lloyds to make an
additional deposit or deposits in cash in direct or indirect obligations
of the United States or of any state of the United States in a sum
equal to the difference between the amount of the unsatisfied final
awards and the amount of the deposit with the department of
insurance. The department of insurance is hereby authorized and
directed to receive such deposit or deposits and to hold them
exclusively for the protection of the holders of such insurance
policies. Any deposit so made shall not be withdrawn except upon
filing with the department of insurance evidence satisfactory to it that
such Lloyds has no unsecured liability outstanding in this state upon
any such insurance policy, and upon the approval of the department
of insurance such Lloyds may withdraw such deposit, except that the
above mentioned additional deposit may be withdrawn with the
approval of the department of insurance upon filing satisfactory
evidence that the total of all unsatisfied and unappealed from final
awards made by the worker's compensation board do not exceed the
amount of twenty-five thousand dollars ($25,000). (Formerly: Acts 1919, c.177, s.7; Acts 1937, c.143, s.1.) As amended
by P.L.252-1985, SEC.224; P.L.28-1988, SEC.85. IC 27-7-1-8 Supervision and control
Sec. 8. The auditor of state shall have the same supervision and
control over Lloyds as he has over stock insurance companies
incorporated under the laws of Indiana. (Formerly: Acts 1919, c.177, s.8.)
IC 27-7-1-9 Foreign Lloyds association; certificate of authority; application;
unearned premium reserve
Sec. 9. The insurance commissioner may, in his discretion, issue
a certificate of authority to a Lloyds domiciled in another state to do
business in this state, for permission to do which application is made
as may be authorized by the articles of association or copartnership
agreement under which said Lloyds is operated, provided, however,
that in no event shall authority be given to any such Lloyds to do any
kind of insurance business other than those specified in section 7 of
this chapter. The application for such certificate shall specify the
kind of business such Lloyds desires the authority to transact in this
state. It must be signed by the attorney or attorneys in fact for such
Lloyds, and must file with the auditor of state a certificate from the
insurance department of its home state that it has and maintains at all
times an unearned premium reserve as is required of stock companies
of said state, and that the total subscription of its subscribers shall
not be less than two hundred and fifty thousand dollars ($250,000),
and that at least twenty-five percent (25%) thereof is paid in cash. (Formerly: Acts 1919, c.177, s.9.) As amended by P.L.252-1985,
SEC.225.
IC 27-7-1-10 Foreign Lloyds association; documents required; appointment of
attorney for service of process
Sec. 10. A true copy of the articles of association or copartnership
agreement, power of attorney, and a copy of each form of policy by
it issued, verified by the attorney or attorneys in fact, shall be filed
with the auditor of state, as well as a copy of the last report filed with
the insurance department of its home state, and also a declaration and
agreement, duly executed and acknowledged by the attorneys in fact
of said Lloyds, appointing the auditor of state as a true and lawful
attorney for such Lloyds and the underwriters thereof in and for this
state, upon whom all legal process in any action or proceedings
against said Lloyds or the underwriters thereof may be served, and
that any service upon him shall be equivalent to the personal service
within the state of such persons of each and every such underwriter. (Formerly: Acts 1919, c.177, s.10.)
IC 27-7-1-11 Revocation of certificate of authority; grounds
Sec. 11. The certificate of authority of any such Lloyds, whether
domestic or foreign, shall be revoked by the insurance commissioner
if at any time it appears that any underwriters are issuing policies of
insurance within the state under apparent authority of such certificate
without filing such declaration and agreement as aforesaid, or if such
Lloyds does not maintain at all times the funds specified in this
chapter, or has violated its agreement or the law, or is found to be in
such a condition that the further transaction of business by it will be
hazardous to the policyholders, its creditors, or the public. (Formerly: Acts 1919, c.177, s.11.) As amended by P.L.252-1985,
SEC.226.
IC 27-7-1-12 Taxation
Sec. 12. In lieu of all other taxes, licenses and fees, state or local,
such Lloyds shall pay annually, on account of the transaction of such
business in this state, the same taxes, licenses and fees as are
required to be paid by mutual companies with principal offices
similarly located and transacting the same kind of business. In the
application of the retaliatory law, the taxes and fees exacted by
another state from a Lloyds insurance with principal offices in
Indiana shall apply. (Formerly: Acts 1919, c.177, s.12.)
IC 27-7-1-1 Participating underwriters; certificate of authority; application
Sec. 1. No persons, partnerships or corporations shall engage in
the business of such insurance as is herein specified as "Lloyds"
unless twenty-five (25) or more persons, partnerships or
corporations, a majority of whom shall be bona fide residents of the
state of Indiana shall have a certificate of authority from the auditor
of state (commissioner of insurance) so to do. The application for
such certificate of authority shall be signed by the attorney or
attorneys in fact of those persons desiring such certificate, and must
be accompanied by a declaration which must set forth the following
provisions:
1. The name under which the business is to be conducted, which
name shall contain the word "Lloyds," and shall not be similar to that
of any existing Lloyds association or corporation in this state, as, in
the opinion of the auditor of state, is calculated to deceive or
mislead.
2. The exact location of the principal office in which the business
is to be conducted, which office must be in the state of Indiana.
3. The kind of insurance intended to be written, which shall be
only as hereinafter stated.
4. An exact copy of the articles of association or copartnership
agreement, made by and between such underwriters.
5. Name, address and amount subscribed by each of the
underwriters so proposing to engage in said business.
6. The designation or appointment of one (1) or more attorneys in
fact, who shall have residence in Indiana, with full name and address,
upon any one of whom summons or consent legal process can be
served.
7. That amounts subscribed by said underwriters have been paid
as follows: Not less than twenty-five per cent (25%) of said
subscriptions in cash, not more than fifty percent (50%) of said
subscription secured by collateral note (payable on thirty (30) days'
demand) duly approved by a committee selected by the subscribers
to pass thereon, and not over twenty-five per cent (25%) of said
subscription evidenced by subscriber's individual note.
8. That the total of said subscription shall not be less than two
hundred and fifty thousand dollars ($250,000), and that at least
twenty-five per cent (25%) thereof has been paid in cash. (Formerly: Acts 1919, c.177, s.1.)
IC 27-7-1-2 Policies; filing; contents; special provisions
Sec. 2. There shall be filed with the auditor of state a copy of each
form of policy by it issued. Said policies shall show the name and
address, as well as the amount of the subscription of each subscriber,
and shall be signed by the attorneys in fact, and they shall contain the
following special provisions:
First: Whenever, under the terms of this policy, notice or consent
is required to be given to or by the company, notice or consent given
to or by the attorney or attorneys in fact shall be sufficient
compliance therewith, and each underwriter hereon shall be bound
thereby, the same as though notice or consent had been given to or
by each of such underwriters individually.
Second: In no event, shall the liability of any underwriter exceed
the sum underwritten by him or them hereon, and, in no event, shall
any underwriter be liable for any part of the sum underwritten hereon
by any other underwriter.
Third: The insured agrees by the acceptance of this policy that no
underwriter hereon shall, in any event, be liable for claims
exceeding, in the aggregate, on all policies, certificates or contracts
issued on his or their behalf, in the name of this Lloyds for an
amount in excess of the unpaid portion, if any, of his or their original
subscription or contribution to said Lloyds, as indorsed hereon.
Fourth: In case of action brought to enforce the provisions of this
policy, same shall be brought against the attorney or attorneys in fact
for the underwriters, as representing all of the said underwriters, and
each of the underwriters hereto hereby agrees to abide by the final
results of any suit so brought as fixing the proportionate amount of
his or their individual liability.
Fifth: This policy is made and accepted subject to all the
stipulations and conditions contained therein, together with such
other provisions, agreements or conditions as may be indorsed
hereon, or added hereto, and as to such provisions and conditions, no
officer, agent or representative shall have such power or be deemed
or held to have waived such provisions or conditions unless such
waiver, if any, shall be indorsed upon or attached hereto, nor shall
any privilege or permission affecting the insurance under this policy
exist or be claimed by the assured unless so indorsed or attached. (Formerly: Acts 1919, c.177, s.2.)
IC 27-7-1-3 Additional underwriters
Sec. 3. After any Lloyds is authorized to do business in this state
pursuant to this law, it may be joined by other and additional
underwriters, but, in that event, such underwriters who may
thereafter join such authorized Lloyds shall be held to be bound by
the documents on file with the auditor of state concerning such
Lloyds. (Formerly: Acts 1919, c.177, s.3.)
IC 27-7-1-4 Examination; issuance of certificate of authority
Sec. 4. After such documents specified shall have been filed, the
auditor of state shall cause an examination of such Lloyds to be
made, and after he has specified that all of the facts alleged in the
declaration are true, and that the articles of association or
copartnership agreement is of such character that the rights of the
policyholders will be protected thereunder, he shall issue, or cause
to be issued, a certificate of authority to such Lloyds to do such
business as is specified in the declaration, which certificate shall be
issued to such Lloyds under the name designated and approved,
authorizing the underwriters thereof to do the business permitted
through its attorney or attorneys in fact. (Formerly: Acts 1919, c.177, s.4.)
IC 27-7-1-5 Investments
Sec. 5. Any such Lloyds as may be thus authorized to do business
in this state shall not invest its funds except in accordance with the
laws of this state relative to the investment of the funds of domestic
stock insurance companies doing a similar business, except in such
securities as may be held by said Lloyds as a guaranty for the
payment of any subscription. (Formerly: Acts 1919, c.177, s.5.)
IC 27-7-1-6 Unearned premium reserve
Sec. 6. Such Lloyds shall maintain the same unearned premium
reserve as is required of all domestic stock companies writing a like
business. (Formerly: Acts 1919, c.177, s.6.)
IC 27-7-1-7 Insurance authorized under Lloyds plan; deposits; additional
deposits; withdrawal of deposits
Sec. 7. The following insurance shall be authorized and permitted
to be written by Lloyds under this chapter:
(1) For the purpose of making insurance on dwelling-houses,
stores and all kinds of buildings and household furniture, and
other property against loss or damage, including loss of use or
occupancy, by fire, lightning, windstorm, tornado, cyclone,
earthquake, hail, frost or snow, bombardment, invasion,
insurrection, riots or civil war or commotion, military or
usurped power, and by explosion, whether fire ensues or not,
except explosions on risks specified in this section, and also
against loss or damage by water to any goods or premises
arising from the breakage or leakage of sprinklers, pumps, or
other apparatuses erected for extinguishing fires, and of water
pipes, and against accidental injury to such sprinklers, pumps,
or other apparatuses, and upon vessels, boats, cargoes, goods,
merchandise, freight, and other property against loss or damage
by all or any of the risks of lake, river, canal, and inland
navigation and transportation, as well as by any or all of the
risks of credit and upon automobiles, whether stationary or
being operated under their power, which shall include all or any
of the hazards of fire, explosions, transportation, collision, loss
by legal liability for damage to property and to persons resulting
from the maintenance and use of automobiles and loss by
burglary or theft or both.
(2) For the purpose of making insurance upon vessels, freights,
goods, wares, merchandise, specie, bullion, jewels, profits,
commissions, bank notes, bills of exchange and other evidence
of debt, bottomry and respondentia interests, and every
insurance appertaining to or connected with marine risks and
risks of transportation and navigation, including the risks of
lake, river, canal, and inland transportation and navigation, and
to effect reinsurance on any risk of the subscribers hereto, or
any of said risks wholly or in part, or the transfer thereof, and
to accept any authorized risk whether direct or by reinsurance.
(3) For the purpose of making insurance against loss or damage
resulting from accident to or injury sustained by an employee
or other person for which accident or injury the insured is
liable.
Provided, that no such insurance shall be written by any Lloyds
under this chapter until such Lloyds shall have deposited with the
department of insurance of the state of Indiana the sum of
twenty-five thousand dollars ($25,000) in the direct or indirect
obligations of the United States or of any state of the United States.
In the event the total of all unsatisfied and unappealed from final
awards made by the worker's compensation board under IC 22-3-2
through IC 22-3-6 against any Lloyds having made the above deposit
shall exceed the amount of the above said deposit, then the
department of insurance may require such Lloyds to make an
additional deposit or deposits in cash in direct or indirect obligations
of the United States or of any state of the United States in a sum
equal to the difference between the amount of the unsatisfied final
awards and the amount of the deposit with the department of
insurance. The department of insurance is hereby authorized and
directed to receive such deposit or deposits and to hold them
exclusively for the protection of the holders of such insurance
policies. Any deposit so made shall not be withdrawn except upon
filing with the department of insurance evidence satisfactory to it that
such Lloyds has no unsecured liability outstanding in this state upon
any such insurance policy, and upon the approval of the department
of insurance such Lloyds may withdraw such deposit, except that the
above mentioned additional deposit may be withdrawn with the
approval of the department of insurance upon filing satisfactory
evidence that the total of all unsatisfied and unappealed from final
awards made by the worker's compensation board do not exceed the
amount of twenty-five thousand dollars ($25,000). (Formerly: Acts 1919, c.177, s.7; Acts 1937, c.143, s.1.) As amended
by P.L.252-1985, SEC.224; P.L.28-1988, SEC.85. IC 27-7-1-8 Supervision and control
Sec. 8. The auditor of state shall have the same supervision and
control over Lloyds as he has over stock insurance companies
incorporated under the laws of Indiana. (Formerly: Acts 1919, c.177, s.8.)
IC 27-7-1-9 Foreign Lloyds association; certificate of authority; application;
unearned premium reserve
Sec. 9. The insurance commissioner may, in his discretion, issue
a certificate of authority to a Lloyds domiciled in another state to do
business in this state, for permission to do which application is made
as may be authorized by the articles of association or copartnership
agreement under which said Lloyds is operated, provided, however,
that in no event shall authority be given to any such Lloyds to do any
kind of insurance business other than those specified in section 7 of
this chapter. The application for such certificate shall specify the
kind of business such Lloyds desires the authority to transact in this
state. It must be signed by the attorney or attorneys in fact for such
Lloyds, and must file with the auditor of state a certificate from the
insurance department of its home state that it has and maintains at all
times an unearned premium reserve as is required of stock companies
of said state, and that the total subscription of its subscribers shall
not be less than two hundred and fifty thousand dollars ($250,000),
and that at least twenty-five percent (25%) thereof is paid in cash. (Formerly: Acts 1919, c.177, s.9.) As amended by P.L.252-1985,
SEC.225.
IC 27-7-1-10 Foreign Lloyds association; documents required; appointment of
attorney for service of process
Sec. 10. A true copy of the articles of association or copartnership
agreement, power of attorney, and a copy of each form of policy by
it issued, verified by the attorney or attorneys in fact, shall be filed
with the auditor of state, as well as a copy of the last report filed with
the insurance department of its home state, and also a declaration and
agreement, duly executed and acknowledged by the attorneys in fact
of said Lloyds, appointing the auditor of state as a true and lawful
attorney for such Lloyds and the underwriters thereof in and for this
state, upon whom all legal process in any action or proceedings
against said Lloyds or the underwriters thereof may be served, and
that any service upon him shall be equivalent to the personal service
within the state of such persons of each and every such underwriter. (Formerly: Acts 1919, c.177, s.10.)
IC 27-7-1-11 Revocation of certificate of authority; grounds
Sec. 11. The certificate of authority of any such Lloyds, whether
domestic or foreign, shall be revoked by the insurance commissioner
if at any time it appears that any underwriters are issuing policies of
insurance within the state under apparent authority of such certificate
without filing such declaration and agreement as aforesaid, or if such
Lloyds does not maintain at all times the funds specified in this
chapter, or has violated its agreement or the law, or is found to be in
such a condition that the further transaction of business by it will be
hazardous to the policyholders, its creditors, or the public. (Formerly: Acts 1919, c.177, s.11.) As amended by P.L.252-1985,
SEC.226.
IC 27-7-1-12 Taxation
Sec. 12. In lieu of all other taxes, licenses and fees, state or local,
such Lloyds shall pay annually, on account of the transaction of such
business in this state, the same taxes, licenses and fees as are
required to be paid by mutual companies with principal offices
similarly located and transacting the same kind of business. In the
application of the retaliatory law, the taxes and fees exacted by
another state from a Lloyds insurance with principal offices in
Indiana shall apply. (Formerly: Acts 1919, c.177, s.12.)
IC 27-7-1-1 Participating underwriters; certificate of authority; application
Sec. 1. No persons, partnerships or corporations shall engage in
the business of such insurance as is herein specified as "Lloyds"
unless twenty-five (25) or more persons, partnerships or
corporations, a majority of whom shall be bona fide residents of the
state of Indiana shall have a certificate of authority from the auditor
of state (commissioner of insurance) so to do. The application for
such certificate of authority shall be signed by the attorney or
attorneys in fact of those persons desiring such certificate, and must
be accompanied by a declaration which must set forth the following
provisions:
1. The name under which the business is to be conducted, which
name shall contain the word "Lloyds," and shall not be similar to that
of any existing Lloyds association or corporation in this state, as, in
the opinion of the auditor of state, is calculated to deceive or
mislead.
2. The exact location of the principal office in which the business
is to be conducted, which office must be in the state of Indiana.
3. The kind of insurance intended to be written, which shall be
only as hereinafter stated.
4. An exact copy of the articles of association or copartnership
agreement, made by and between such underwriters.
5. Name, address and amount subscribed by each of the
underwriters so proposing to engage in said business.
6. The designation or appointment of one (1) or more attorneys in
fact, who shall have residence in Indiana, with full name and address,
upon any one of whom summons or consent legal process can be
served.
7. That amounts subscribed by said underwriters have been paid
as follows: Not less than twenty-five per cent (25%) of said
subscriptions in cash, not more than fifty percent (50%) of said
subscription secured by collateral note (payable on thirty (30) days'
demand) duly approved by a committee selected by the subscribers
to pass thereon, and not over twenty-five per cent (25%) of said
subscription evidenced by subscriber's individual note.
8. That the total of said subscription shall not be less than two
hundred and fifty thousand dollars ($250,000), and that at least
twenty-five per cent (25%) thereof has been paid in cash. (Formerly: Acts 1919, c.177, s.1.)
IC 27-7-1-2 Policies; filing; contents; special provisions
Sec. 2. There shall be filed with the auditor of state a copy of each
form of policy by it issued. Said policies shall show the name and
address, as well as the amount of the subscription of each subscriber,
and shall be signed by the attorneys in fact, and they shall contain the
following special provisions:
First: Whenever, under the terms of this policy, notice or consent
is required to be given to or by the company, notice or consent given
to or by the attorney or attorneys in fact shall be sufficient
compliance therewith, and each underwriter hereon shall be bound
thereby, the same as though notice or consent had been given to or
by each of such underwriters individually.
Second: In no event, shall the liability of any underwriter exceed
the sum underwritten by him or them hereon, and, in no event, shall
any underwriter be liable for any part of the sum underwritten hereon
by any other underwriter.
Third: The insured agrees by the acceptance of this policy that no
underwriter hereon shall, in any event, be liable for claims
exceeding, in the aggregate, on all policies, certificates or contracts
issued on his or their behalf, in the name of this Lloyds for an
amount in excess of the unpaid portion, if any, of his or their original
subscription or contribution to said Lloyds, as indorsed hereon.
Fourth: In case of action brought to enforce the provisions of this
policy, same shall be brought against the attorney or attorneys in fact
for the underwriters, as representing all of the said underwriters, and
each of the underwriters hereto hereby agrees to abide by the final
results of any suit so brought as fixing the proportionate amount of
his or their individual liability.
Fifth: This policy is made and accepted subject to all the
stipulations and conditions contained therein, together with such
other provisions, agreements or conditions as may be indorsed
hereon, or added hereto, and as to such provisions and conditions, no
officer, agent or representative shall have such power or be deemed
or held to have waived such provisions or conditions unless such
waiver, if any, shall be indorsed upon or attached hereto, nor shall
any privilege or permission affecting the insurance under this policy
exist or be claimed by the assured unless so indorsed or attached. (Formerly: Acts 1919, c.177, s.2.)
IC 27-7-1-3 Additional underwriters
Sec. 3. After any Lloyds is authorized to do business in this state
pursuant to this law, it may be joined by other and additional
underwriters, but, in that event, such underwriters who may
thereafter join such authorized Lloyds shall be held to be bound by
the documents on file with the auditor of state concerning such
Lloyds. (Formerly: Acts 1919, c.177, s.3.)
IC 27-7-1-4 Examination; issuance of certificate of authority
Sec. 4. After such documents specified shall have been filed, the
auditor of state shall cause an examination of such Lloyds to be
made, and after he has specified that all of the facts alleged in the
declaration are true, and that the articles of association or
copartnership agreement is of such character that the rights of the
policyholders will be protected thereunder, he shall issue, or cause
to be issued, a certificate of authority to such Lloyds to do such
business as is specified in the declaration, which certificate shall be
issued to such Lloyds under the name designated and approved,
authorizing the underwriters thereof to do the business permitted
through its attorney or attorneys in fact. (Formerly: Acts 1919, c.177, s.4.)
IC 27-7-1-5 Investments
Sec. 5. Any such Lloyds as may be thus authorized to do business
in this state shall not invest its funds except in accordance with the
laws of this state relative to the investment of the funds of domestic
stock insurance companies doing a similar business, except in such
securities as may be held by said Lloyds as a guaranty for the
payment of any subscription. (Formerly: Acts 1919, c.177, s.5.)
IC 27-7-1-6 Unearned premium reserve
Sec. 6. Such Lloyds shall maintain the same unearned premium
reserve as is required of all domestic stock companies writing a like
business. (Formerly: Acts 1919, c.177, s.6.)
IC 27-7-1-7 Insurance authorized under Lloyds plan; deposits; additional
deposits; withdrawal of deposits
Sec. 7. The following insurance shall be authorized and permitted
to be written by Lloyds under this chapter:
(1) For the purpose of making insurance on dwelling-houses,
stores and all kinds of buildings and household furniture, and
other property against loss or damage, including loss of use or
occupancy, by fire, lightning, windstorm, tornado, cyclone,
earthquake, hail, frost or snow, bombardment, invasion,
insurrection, riots or civil war or commotion, military or
usurped power, and by explosion, whether fire ensues or not,
except explosions on risks specified in this section, and also
against loss or damage by water to any goods or premises
arising from the breakage or leakage of sprinklers, pumps, or
other apparatuses erected for extinguishing fires, and of water
pipes, and against accidental injury to such sprinklers, pumps,
or other apparatuses, and upon vessels, boats, cargoes, goods,
merchandise, freight, and other property against loss or damage
by all or any of the risks of lake, river, canal, and inland
navigation and transportation, as well as by any or all of the
risks of credit and upon automobiles, whether stationary or
being operated under their power, which shall include all or any
of the hazards of fire, explosions, transportation, collision, loss
by legal liability for damage to property and to persons resulting
from the maintenance and use of automobiles and loss by
burglary or theft or both.
(2) For the purpose of making insurance upon vessels, freights,
goods, wares, merchandise, specie, bullion, jewels, profits,
commissions, bank notes, bills of exchange and other evidence
of debt, bottomry and respondentia interests, and every
insurance appertaining to or connected with marine risks and
risks of transportation and navigation, including the risks of
lake, river, canal, and inland transportation and navigation, and
to effect reinsurance on any risk of the subscribers hereto, or
any of said risks wholly or in part, or the transfer thereof, and
to accept any authorized risk whether direct or by reinsurance.
(3) For the purpose of making insurance against loss or damage
resulting from accident to or injury sustained by an employee
or other person for which accident or injury the insured is
liable.
Provided, that no such insurance shall be written by any Lloyds
under this chapter until such Lloyds shall have deposited with the
department of insurance of the state of Indiana the sum of
twenty-five thousand dollars ($25,000) in the direct or indirect
obligations of the United States or of any state of the United States.
In the event the total of all unsatisfied and unappealed from final
awards made by the worker's compensation board under IC 22-3-2
through IC 22-3-6 against any Lloyds having made the above deposit
shall exceed the amount of the above said deposit, then the
department of insurance may require such Lloyds to make an
additional deposit or deposits in cash in direct or indirect obligations
of the United States or of any state of the United States in a sum
equal to the difference between the amount of the unsatisfied final
awards and the amount of the deposit with the department of
insurance. The department of insurance is hereby authorized and
directed to receive such deposit or deposits and to hold them
exclusively for the protection of the holders of such insurance
policies. Any deposit so made shall not be withdrawn except upon
filing with the department of insurance evidence satisfactory to it that
such Lloyds has no unsecured liability outstanding in this state upon
any such insurance policy, and upon the approval of the department
of insurance such Lloyds may withdraw such deposit, except that the
above mentioned additional deposit may be withdrawn with the
approval of the department of insurance upon filing satisfactory
evidence that the total of all unsatisfied and unappealed from final
awards made by the worker's compensation board do not exceed the
amount of twenty-five thousand dollars ($25,000). (Formerly: Acts 1919, c.177, s.7; Acts 1937, c.143, s.1.) As amended
by P.L.252-1985, SEC.224; P.L.28-1988, SEC.85. IC 27-7-1-8 Supervision and control
Sec. 8. The auditor of state shall have the same supervision and
control over Lloyds as he has over stock insurance companies
incorporated under the laws of Indiana. (Formerly: Acts 1919, c.177, s.8.)
IC 27-7-1-9 Foreign Lloyds association; certificate of authority; application;
unearned premium reserve
Sec. 9. The insurance commissioner may, in his discretion, issue
a certificate of authority to a Lloyds domiciled in another state to do
business in this state, for permission to do which application is made
as may be authorized by the articles of association or copartnership
agreement under which said Lloyds is operated, provided, however,
that in no event shall authority be given to any such Lloyds to do any
kind of insurance business other than those specified in section 7 of
this chapter. The application for such certificate shall specify the
kind of business such Lloyds desires the authority to transact in this
state. It must be signed by the attorney or attorneys in fact for such
Lloyds, and must file with the auditor of state a certificate from the
insurance department of its home state that it has and maintains at all
times an unearned premium reserve as is required of stock companies
of said state, and that the total subscription of its subscribers shall
not be less than two hundred and fifty thousand dollars ($250,000),
and that at least twenty-five percent (25%) thereof is paid in cash. (Formerly: Acts 1919, c.177, s.9.) As amended by P.L.252-1985,
SEC.225.
IC 27-7-1-10 Foreign Lloyds association; documents required; appointment of
attorney for service of process
Sec. 10. A true copy of the articles of association or copartnership
agreement, power of attorney, and a copy of each form of policy by
it issued, verified by the attorney or attorneys in fact, shall be filed
with the auditor of state, as well as a copy of the last report filed with
the insurance department of its home state, and also a declaration and
agreement, duly executed and acknowledged by the attorneys in fact
of said Lloyds, appointing the auditor of state as a true and lawful
attorney for such Lloyds and the underwriters thereof in and for this
state, upon whom all legal process in any action or proceedings
against said Lloyds or the underwriters thereof may be served, and
that any service upon him shall be equivalent to the personal service
within the state of such persons of each and every such underwriter. (Formerly: Acts 1919, c.177, s.10.)
IC 27-7-1-11 Revocation of certificate of authority; grounds
Sec. 11. The certificate of authority of any such Lloyds, whether
domestic or foreign, shall be revoked by the insurance commissioner
if at any time it appears that any underwriters are issuing policies of
insurance within the state under apparent authority of such certificate
without filing such declaration and agreement as aforesaid, or if such
Lloyds does not maintain at all times the funds specified in this
chapter, or has violated its agreement or the law, or is found to be in
such a condition that the further transaction of business by it will be
hazardous to the policyholders, its creditors, or the public. (Formerly: Acts 1919, c.177, s.11.) As amended by P.L.252-1985,
SEC.226.
IC 27-7-1-12 Taxation
Sec. 12. In lieu of all other taxes, licenses and fees, state or local,
such Lloyds shall pay annually, on account of the transaction of such
business in this state, the same taxes, licenses and fees as are
required to be paid by mutual companies with principal offices
similarly located and transacting the same kind of business. In the
application of the retaliatory law, the taxes and fees exacted by
another state from a Lloyds insurance with principal offices in
Indiana shall apply. (Formerly: Acts 1919, c.177, s.12.)
