Sec. 9. (a) This section does not apply to the payment of dividends, savings, or unabsorbed premium deposits allowed or returned as set forth in IC 27-7-2-37.5 or other similar programs permitted or filed in other states.

     (b) The reorganized insurer must obtain approval by the commissioner of the dividend practices with respect to participating policies and contracts in force as of the effective date of the reorganization to be followed by the reorganized insurer as set forth in IC 27-14.5-2-6(4) if the dividend practices of the reorganized insurer will be different from the dividend practices of the mutual insurance company.

     (c) The commissioner may require the establishment of a closed block or other mechanism that the commissioner finds to be fair for the protection of mutual insurance company policyholder dividends.

     (d) The dividend practices of the reorganized insurer, the requirement to establish a closed block or other mechanism, if any, or the terms of the closed block, may be modified after approval under subsection (b) or subsequent to a reorganization under IC 27-14.5-2 only with the prior approval of the commissioner on application of the reorganized insurer.

     (e) Neither an intermediate stock holding company nor a reorganized insurer may pay dividends or make other distributions with respect to its stock or its shareholders if the reorganized insurer has failed to pay policyholder dividends in compliance with the dividend practices approved by the commissioner in accordance with this section.

As added by P.L.226-2023, SEC.30.