Indiana Code 27-5.1-2-30. Premium plus assessment basis; policyholder liability
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Sec. 30. (a) A policyholder of a farm mutual insurance company operating on a premium plus assessment basis under this article is liable for the policyholder’s share of the amount necessary to:
(2) maintain an adequate reserve or safety fund as determined by the farm mutual insurance company’s directors;
(1) pay the losses and necessary expenses incurred by the farm mutual insurance company; and
Terms Used In Indiana Code 27-5.1-2-30
- Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
while the policyholder’s insurance policy is in effect.
(b) Notwithstanding subsection (a), a farm mutual insurance company shall limit a policyholder’s contingent liability during any one (1) year to an amount not to exceed the limitation set forth in the farm mutual insurance company’s bylaws. The limitation set forth in the farm mutual insurance company’s bylaws under this subsection must be an amount equal to not less than three percent (3%) of the insurance carried by the policyholder.
As added by P.L.129-2003, SEC.8.