Sec. 35. (a) A farm mutual insurance company that operates on a premium plus assessment basis must pay losses and judgments of the farm mutual insurance company from premiums received or amounts collected on promissory notes. The amount:
(1) deducted from a policyholder's premium paid; or
(2) demanded from a policyholder's promissory note;
must bear the same relationship to the total loss as the policyholder's total premium bears to the total premiums collected in the calendar year that the loss is incurred.
(b) If funds collected under subsection (a) are insufficient to cover a loss or judgment, the directors of the farm mutual insurance company may, subject to the limitation set forth in the farm mutual insurance company's bylaws under section 30 of this chapter, assess each policyholder in the same manner. However, a farm mutual insurance company may not assess policyholders more than one (1) time in a calendar year for losses incurred by the farm mutual insurance company.
As added by P.L.129-2003, SEC.8.
Structure Indiana Code
Article 5.1. Farm Mutual Insurance Companies
Chapter 2. Farm Mutual Insurance Companies
27-5.1-2-0.1. Application of Certain Amendments to Chapter
27-5.1-2-2. Farm Mutual Insurance Companies Existing on June 30, 2003
27-5.1-2-3. Proposed Farm Mutual Insurance Companies; Application for Certificate of Authority
27-5.1-2-4. Proposed Farm Mutual Insurance Company Requirements for Certificate of Authority
27-5.1-2-6. Exclusion of Companies
27-5.1-2-7. Exemption From Indiana Insurance Laws
27-5.1-2-8. Application of Indiana Insurance Laws
27-5.1-2-9. Location of Insurance Business
27-5.1-2-10. Annual Policyholder Meeting
27-5.1-2-11. Board of Directors
27-5.1-2-12. Election of Director; Term of Office; Election of Officers; Annual Board Meeting
27-5.1-2-13. Articles of Incorporation; Amendment
27-5.1-2-14. Bylaws; Amendment
27-5.1-2-15. Commissioner Filing Fee
27-5.1-2-16. Form and Rate Filing File and Use; Commissioner Disapproval; Judicial Review
27-5.1-2-17. Commissioner Examination
27-5.1-2-19. Application for Coverage; Policyholder Status
27-5.1-2-20. Insurance Producers
27-5.1-2-21. Merger; Plan; Policyholder Notice
27-5.1-2-23. Merger Plan Performance; Surviving Company
27-5.1-2-24. Certificate of Merger
27-5.1-2-26. Violations of Law; Commissioner Orders
27-5.1-2-28. Willful Violation; Penalties
27-5.1-2-29. Notice of Intent to Waive Term of Policy, Right, or Defense
27-5.1-2-30. Premium Plus Assessment Basis; Policyholder Liability
27-5.1-2-31. Assessment Collection; Verification of Loss
27-5.1-2-32. Policyholder Failure to Pay Assessment
27-5.1-2-33. Policyholder Liability After Policy Termination
27-5.1-2-34. Notice of Premium Plus Assessment Policy; Civil Actions; Limitation
27-5.1-2-35. Payment of Losses and Judgments; Insufficient Funds; Assessments
27-5.1-2-36. Borrowing Funds; Assessment
27-5.1-2-37. Policy Cancellation; Notice
27-5.1-2-38. Discontinuation of Company
27-5.1-2-39. Misconduct; Penalty
27-5.1-2-40. Investment Gain; Policyholder Surplus
27-5.1-2-41. Election to Be Subject to Indiana Insurance Law
27-5.1-2-42. Exemption From Regulation