CHAPTER 18. ADDITIONAL PROVISIONS PERTAINING TO FOREIGN AND ALIEN COMPANIES
IC 27-1-18
Chapter 18. Additional Provisions Pertaining to Foreign and Alien
Companies
IC 27-1-18-1
Policy provisions; foreign insurers; domestic insurers doing
business in foreign state
Sec. 1. The policies of a foreign or alien life insurance company,
may, when issued in this state, contain any provision which the laws
of the state, territory, district, or country under which the company
is organized prescribes shall be in such policies and the method of
valuation of such policies required by the laws of the state, territory,
district, or country where such company is organized, shall be
accepted by the department, and the policies of a life insurance
company organized under the laws of this state may, when issued or
delivered in any other state, territory, district, or country contain any
provisions required by the laws of the state, territory, district, or
country in which the same are issued or delivered, anything in this
article other than in IC 27-1-12-5(5) to the contrary notwithstanding,
provided that the provisions of the laws of such state, territory,
district, or country are shown to the satisfaction of the department to
as carefully safeguard the policyholders as do the laws of this state.
(Formerly: Acts 1935, c.162, s.234.) As amended by P.L.252-1985,
SEC.76.
IC 27-1-18-2
Gross premium privilege tax
Sec. 2. (a) Every insurance company not organized under the laws
of this state, and each domestic company electing to be taxed under
this section, and doing business within this state shall, on or before
March 1 of each year, report to the department, under the oath of the
president and secretary, the gross amount of all premiums received
by it on policies of insurance covering risks within this state, or in
the case of marine or transportation risks, on policies made, written,
or renewed within this state during the twelve (12) month period
ending on December 31 of the preceding calendar year. From the
amount of gross premiums described in this subsection shall be
deducted:
(1) considerations received for reinsurance of risks within this
state from companies authorized to transact an insurance
business in this state;
(2) the amount of dividends paid or credited to resident
insureds, or used to reduce current premiums of resident
insureds;
(3) the amount of premiums actually returned to residents on
account of applications not accepted or on account of policies
not delivered; and
(4) the amount of unearned premiums returned on account of
the cancellation of policies covering risks within the state.
(b) A domestic company shall be taxed under this section only in
each calendar year with respect to which it files a notice of election.
The notice of election shall be filed with the insurance commissioner
and the commissioner of the department of state revenue on or before
November 30 in each year and shall state that the domestic company
elects to submit to the tax imposed by this section with respect to the
calendar year commencing January 1 next following the filing of the
notice. The exemption from license fees, privilege, or other taxes
accorded by this section to insurance companies not organized under
the laws of this state and doing business within this state which are
taxed under this chapter shall be applicable to each domestic
company in each calendar year with respect to which it is taxed
under this section. In each calendar year with respect to which a
domestic company has not elected to be taxed under this section it
shall be taxed without regard to this section.
(c) For the privilege of doing business in this state, every
insurance company required to file the report provided in this section
shall pay into the treasury of this state an amount equal to the excess,
if any, of the gross premiums over the allowable deductions
multiplied by the following rate for the year that the report covers:
(1) For 2000, two percent (2%).
(2) For 2001, one and nine-tenths percent (1.9%).
(3) For 2002, one and eight-tenths percent (1.8%).
(4) For 2003, one and seven-tenths percent (1.7%).
(5) For 2004, one and five-tenths percent (1.5%).
(6) For 2005 and thereafter, one and three-tenths percent
(1.3%).
(d) Payments of the tax imposed by this section shall be made on
a quarterly estimated basis. The amounts of the quarterly installments
shall be computed on the basis of the total estimated tax liability for
the current calendar year and the installments shall be due and
payable on or before April 15, June 15, September 15, and December
15, of the current calendar year.
(e) Any balance due shall be paid in the next succeeding calendar
year at the time designated for the filing of the annual report with the
department.
(f) Any overpayment of the estimated tax during the preceding
calendar year shall be allowed as a credit against the liability for the
first installment of the current calendar year.
(g) In the event a company subject to taxation under this section
fails to make any quarterly payment in an amount equal to at least:
(1) twenty-five percent (25%) of the total tax paid during the
preceding calendar year; or
(2) twenty per cent (20%) of the actual tax for the current
calendar year;
the company shall be liable, in addition to the amount due, for
interest in the amount of one percent (1%) of the amount due and
unpaid for each month or part of a month that the amount due,
together with interest, remains unpaid. This interest penalty shall be
exclusive of and in addition to any other fee, assessment, or charge
made by the department.
(h) The taxes under this article shall be in lieu of all license fees
or privilege or other tax levied or assessed by this state or by any
municipality, county, or other political subdivision of this state. No
municipality, county, or other political subdivision of this state shall
impose any license fee or privilege or other tax upon any insurance
company or any of its agents for the privilege of doing an insurance
business therein, except the tax authorized by IC 22-12-6-5.
However, the taxes authorized under IC 22-12-6-5 shall be credited
against the taxes provided under this chapter. This section shall not
be construed to prohibit the levy and collection of state, county, or
municipal taxes upon real and tangible personal property of such
company, or to prohibit the levy of any retaliatory tax, fine, penalty,
or fee provided by law. However, all insurance companies, foreign
or domestic, paying taxes in this state predicated in part on their
premium income from policies sold and premiums received in
Indiana, shall have the same rights and privileges from further
taxation and shall be given the same credits wherever applicable, as
those set out for those companies paying only a tax on premiums as
set out in this section.
(i) Any insurance company failing or refusing, for more than
thirty (30) days, to render an accurate account of its premium
receipts as provided in this section and pay the tax due thereon shall
be subject to a penalty of one hundred dollars ($100) for each
additional day such report and payment shall be delayed, not to
exceed a maximum penalty of ten thousand dollars ($10,000). The
penalty may be ordered by the commissioner after a hearing under
IC 4-21.5-3. The commissioner may revoke all authority of such
defaulting company to do business within this state, or suspend such
authority during the period of such default, in the discretion of the
commissioner.
(Formerly: Acts 1935, c.162, s.235; Acts 1963, c.301, s.1; Acts 1971,
P.L.386, SEC.1.) As amended by P.L.252-1985, SEC.77;
P.L.245-1987, SEC.15; P.L.268-1999, SEC.7; P.L.144-2000, SEC.2.
IC 27-1-18-3
Amendment of articles; filing copies; effect
Sec. 3. Each foreign or alien corporation admitted to do business
in this state shall keep on file in the office of the department a duly
authenticated copy of each instrument amending its articles of
incorporation or association, but the filing of any such instrument
shall not of itself enlarge or alter the character of business which the
foreign corporation is authorized to transact in this state as set forth
in the certificate of admission, unless such foreign corporation apply
for and receive an amended certificate of admission as provided for
in section 4 of this chapter.
(Formerly: Acts 1935, c.162, s.236.) As amended by P.L.252-1985,
SEC.78.
IC 27-1-18-4
Amended certificate of authority
Sec. 4. (a) Any foreign or alien corporation admitted to do
business in this state may alter or enlarge the character of the
business which it is authorized to transact in this state under its
articles of incorporation or association, and any amendments thereof
filed with the department as provided in section 3 of this chapter, by
procuring an amended certificate of authority from the department in
the manner provided in subsection (b).
(b) Whenever a foreign or alien corporation desires to procure
such amended certificate, it shall present to the department at its
office, accompanied by the fees prescribed by law, an application for
an amended certificate of authority, setting forth the change desired
in the kind or kinds of insurance business under its articles of
incorporation or association which it intends to thereafter carry on in
this state; the application shall be filed in duplicate in the form
prescribed by the department by the president or a vice president and
the secretary or an assistant secretary of the corporation, and verified
by the oaths of the officers signing the same.
(c) Upon the presentation of such application, accompanied by the
corporation's certificate of authority, the department, if it find that it
conforms to law and that the foreign or alien company has fulfilled
the requirements set forth in subsection (b) and in section 3 of this
chapter, may endorse its approval upon each of the duplicate copies
of the application, and, in case of the approval of such application
and when all fees required by law shall have been paid, shall file one
(1) copy of the application in its office, cancel the certificate of
authority presented with the application, and issue to the corporation
a new certificate of authority, which certificate shall set forth the
kind or kinds of business that the corporation is authorized thereafter
to transact in this state, which shall be accompanied by one (1) copy
of the application bearing the endorsement of the approval of the
department.
(d) Upon the issuance of the new certificate of authority by the
department, the corporation therein named shall have authority
thereafter to transact in this state the kind or kinds of insurance
business set forth in such certificate, subject to the terms and
conditions prescribed in this article.
(Formerly: Acts 1935, c.162, s.237.) As amended by P.L.252-1985,
SEC.79.
IC 27-1-18-5
Condensed statement of assets and liabilities; examination;
correction of statement; publication; expense
Sec. 5. At the time of filing its annual statement, an alien or
foreign company shall submit, on a form prescribed by the
department, a condensed statement of its assets and liabilities as of
December 31 of the preceding year. If the department, on
examination of such statement, determines from information
available to it that it is true and correct, it shall cause such statement
to be published in a newspaper in this state selected by the
department. In the event the department determines that the statement
submitted by a company is inaccurate or incorrect, it shall, after
giving the company notice of the proposed changes and an
opportunity to be heard, certify the corrected statement and proceed
with its publication as above provided. The company shall bear the
expenses of the publication, but in no event shall an amount
exceeding forty dollars ($40) be charged for such publication. Any
cost of publication that exceeds forty dollars ($40) must be borne by
the newspaper publishing the statement.
(Formerly: Acts 1935, c.162, s.238; Acts 1971, P.L.385, SEC.4.) As
amended by P.L.267-1987, SEC.2; P.L.160-2003, SEC.3.
IC 27-1-18-6
Procedure for withdrawal
Sec. 6. (a) Any foreign or alien corporation admitted to do
business in this state may withdraw from this state by surrendering
its certificate of authority and by filing with the department,
accompanied by the fees prescribed by law, a statement of
withdrawal setting forth:
(1) the name of the corporation and the state, country, province,
or government wherein it is incorporated or organized, or the
state in which it is domiciled in the United States;
(2) the date of the issuance of the original certificate of
authority;
(3) that it surrenders its authority to transact business in this
state and returns for cancellation its certificate of authority; and
(4) a post office address to which the commissioner may mail
a copy of any process against the withdrawing company that
may be served upon him.
(b) Such statement shall be signed, in the form prescribed by the
department, by the president or a vice president and the secretary or
an assistant secretary of the corporation, and shall be verified by the
oaths of the officers signing the same.
(c) The statement as provided for in this section shall be filed with
the department, accompanied by a report of taxable premiums as
provided for in section 2 of this chapter, the amount of tax shown to
be due and payable by such report, its certificate of authority, and
after the payment of the fees prescribed by law, the department shall
cancel the certificate of authority and endorse the same thereon, and
return such cancelled certificate to the company, and the authority of
the company to transact an insurance business in this state shall
cease, but the withdrawal and cessation of business shall not affect
any action by or against such corporation pending at the time thereof,
or any right of action existing at or before the filing of such
statement, in favor of or against such company.
(Formerly: Acts 1935, c.162, s.239.) As amended by P.L.252-1985,
SEC.80.