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27-5.1-4-5. Collections through assessments and premiums

IN Code § 27-5.1-4-5 (2019) (N/A)
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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.

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27-5.1-4-4. Financial and reinsurance requirements
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27-5.1-4-6. Policyholder surplus