Indiana Code
Chapter 13. Casualty, Fire, and Marine Insurance Company Powers and Policy Requirements
27-1-13-8. Estimating Condition; Classification of Items as Assets or Liabilities; Reserves

Sec. 8. In estimating the condition of any company which makes insurance comprised within class 2 or class 3 of IC 27-1-5-1, the department shall allow only such investments as assets as are authorized by the laws of this state at the date of the investigation, but unpaid premiums on policies or renewals written within three (3) months shall be admitted as available resources. It shall charge as liabilities in addition to all other outstanding indebtedness of the company the capital stock, if any, and the following:
(a) The premium reserve on policies in force equal to fifty percent (50%) of the gross premiums charged for covering risks, less the reserve computed by the same method, on reinsurance in force. However, the department may, in its discretion, charge a premium reserve equal to the unearned portions of the gross premium charged by computing on each respective risk from the date of the issuance of the policy, less the reserve, computed by the same method, on reinsurance in force.
(b) In the case of policies of marine or inland navigation or transportation insurance it shall charge as a liability fifty percent (50%) of the amount of the premiums written in such policies upon yearly risks and upon risks covering not more than one (1) passage not terminated and the full amount of premiums written in policies upon all other such risks not terminated.
(c) The reserve for outstanding losses at least equal to the aggregate estimated amounts due or to become due on account of all losses or claims of which the company has received notice. However, the loss reserve shall also include the estimated liability on any notices received by the company of the occurrence of any event which may result in a loss and the estimated liability for all losses which have occurred but on which no notice has been received. For the purpose of such reserves, the company shall keep a complete and itemized record showing all losses and claims on which it has received notice, including all notices received by it of the occurrence of any event which may result in a loss.
(d) Any other reserves as are required by or provided for in the applicable Annual Statement Blanks furnished to companies under IC 27-1-3-13.
(e) Whenever, in the judgment of the department, the loss reserves calculated in accordance with subsections (a), (b), (c), and (d) are inadequate, it may in its discretion require a company to maintain additional reserves.
Formerly: Acts 1935, c.162, s.179. As amended by P.L.260-1983, SEC.7; P.L.124-2018, SEC.32.

Structure Indiana Code

Indiana Code

Title 27. Insurance

Article 1. Department of Insurance

Chapter 13. Casualty, Fire, and Marine Insurance Company Powers and Policy Requirements

27-1-13-0.1. Application of Certain Amendments to Chapter

27-1-13-1. Particular Rights, Privileges, and Powers of Casualty, Fire, or Marine Insurers; Exceptions

27-1-13-2. Repealed

27-1-13-3. Investment of Capital and Funds Above Capital; Real Estate Interests

27-1-13-3.5. Intangible Assets Attributable to Investment in Subsidiary; Amount as Percentage of Capital and Surplus

27-1-13-4. Valuation of Bonds and Securities

27-1-13-5. Insured Loans and Investments

27-1-13-6. Limitation on Risks; Effect of Reinsurance

27-1-13-7. Policy Requirements

27-1-13-7.5. Newly Acquired Motor Vehicle; Required Coverage

27-1-13-8. Estimating Condition; Classification of Items as Assets or Liabilities; Reserves

27-1-13-8.5. Rules to Prescribe Minimum Standards for Establishment of Reserves

27-1-13-9. Trading or Dealing in Commodities, Goods, Wares, and Merchandise

27-1-13-10. Insurance Rating Bureaus; Organizational Regulations

27-1-13-11. Insurance Rating Bureaus; Meetings; Appearance by Aggrieved Persons

27-1-13-12. Insurance Rating Bureau; Division of Representation

27-1-13-13. Repealed

27-1-13-14. Casualty and Liability Insurance; Qualified Public Transportation Agency; Group Coverage for Functions

27-1-13-15. Property and Casualty Insurance Blanket Policies for Planned Unit Development Owners Association or Corporation

27-1-13-16. Notice of Residential Policy Changes

27-1-13-17. Residential Policy Restrictions