Indiana Code
Chapter 7. General Corporate Powers and Responsibilities of Insurance Companies
27-1-7-21. Mutual Companies; Statement of Maximum Premium in Policy; Limitation of Liability for Single Risk; Reinsurance Requirements

Sec. 21. (a) The maximum premium shall be expressed in the policy of a mutual company and shall be solely a cash premium without contingent premium but no such company other than a life insurance company shall issue any policy providing limits of liability for any one (1) risk under any one (1) line of insurance in an amount exceeding five percent (5%) of its surplus, including contingent reserves, if any, until and unless it either possesses a surplus, including contingent reserves, if any, of at least four hundred thousand dollars ($400,000), or has reinsured in a reinsurer (or reinsurers) admitted to do business in this state and authorized to make such kind or kinds of reinsurance in this state all of such liability in excess of such amount or such greater amount as the commissioner may authorize and such reinsurance contract or contracts shall have been submitted to and approved by the commissioner. Such reinsurance contract or contracts shall be in such form as to enable the insured under such policy or the holder of a judgment against the insured for which such company is liable under such policy to maintain an action on such reinsurance contract or contracts against such reinsured company jointly with the reinsurer and, upon recovering judgment, to have recovery against such reinsurer or reinsurers for payment to the extent to which it or they may be liable under such reinsurance contract (or contracts) and in discharge thereof. In no event shall the unreinsured liability assumed under this section on any one (1) risk exceed the amount otherwise authorized by this article to be written upon any one (1) risk.
(b) Any determination of permissible limits of liability and amount of surplus pursuant to the provisions of subsection (a) shall be made as of December 31 immediately preceding except that in the case of a newly formed company such determination shall be made as of the date it receives the certificate of the department authorizing it to commence business.
(c) Any reinsurance contract submitted to and approved by the commissioner in accordance with the requirements of this section shall continue in full force and effect until notice of its termination or amendment has been filed with the commissioner, and in the case of an amendment has been approved by the commissioner.
(d) Subsection (a) shall apply only to companies organized under this article after July 26, 1967, except that any company in existence on July 26, 1967, under any of the insurance statutes of this state and to which subsection (a) would otherwise apply may, by appropriate action of its policyholders and board of directors, elect to comply with subsection (a).
(e) This section shall not affect nor invalidate any policy of any mutual insurance company in existence on July 26, 1967, issued pursuant to Acts 1935, c.162, s.98. Any such policy issued on or after July 26, 1967, by a mutual insurance company in existence on July 26, 1967, and the rights and obligations under the policy shall continue to be subject to the provisions of Acts 1935, c.162, s.98 until such company has exercised the right of election provided in this section and has complied with the provisions of this section.
Formerly: Acts 1935, c.162, s.98; Acts 1967, c.233, s.1. As amended by P.L.252-1985, SEC.31; P.L.136-2018, SEC.150.

Structure Indiana Code

Indiana Code

Title 27. Insurance

Article 1. Department of Insurance

Chapter 7. General Corporate Powers and Responsibilities of Insurance Companies

27-1-7-1. "Corporation" Defined

27-1-7-2. Capacity and Authority to Act; General Rights, Privileges, and Powers; Excluded Powers

27-1-7-3. Principal Office; Change of Location

27-1-7-4. Shares of Stock; Classes; Sale for Less Than Par; Shareholders' Liability; Preemptive Rights

27-1-7-5. Stock Certificate; Contents; Transferability

27-1-7-6. Bylaws

27-1-7-7. Meetings of Shareholders, Members, or Policyholders; Location; Annual Meeting; Special Meetings; Notice; Quorum; Actions Taken Without Meeting

27-1-7-8. Voting Rights of Shareholders; Shares That Cannot Be Voted; Voting by Particular Shareholders; Proxy Votes

27-1-7-9. Voting Rights of Policyholders and Members; Proxy Votes

27-1-7-9.5. Shareholders' Derivative Proceedings; Procedure

27-1-7-10. Board of Directors; General Provisions; Management of Business; Executive Committee; Removal of Directors

27-1-7-11. Citizenship and Residence Qualifications of Directors

27-1-7-12. Directors; Attendance Record and Report; Record of Communications; Annual Examination and Report of Condition

27-1-7-12.5. Directors; Good Faith Discharge of Duties; Liability; Conflict of Interest; Authorization of Unlawful Payments to Shareholders

27-1-7-13. Officers; Secretary; Duties; Resignation; Removal; Contract Rights

27-1-7-14. Bonding Officers Having Access to Money or Securities; Blanket Bond

27-1-7-15. Loans to or Borrowing by Directors or Officers; Offense; Exceptions

27-1-7-16. Books and Records to Be Kept at Principal Office

27-1-7-17. Restrictions on Dividend Payments

27-1-7-18. Repealed

27-1-7-19. Mutual or Stock Companies; Borrowing for Surplus Funds

27-1-7-20. Authority of Corporations, Boards, and Associations to Insure With Mutual Insurance Company

27-1-7-21. Mutual Companies; Statement of Maximum Premium in Policy; Limitation of Liability for Single Risk; Reinsurance Requirements

27-1-7-22. Vouchers for Disbursements

27-1-7-23. Annual or Other Required Statements; Material False Statement