CHAPTER 10. DIVIDEND PRESERVATION
IC 27-15-10
Chapter 10. Dividend Preservation
IC 27-15-10-1
Purpose of provisions; prohibitions
Sec. 1. (a) The sole purpose of any dividend preservation
provision shall be to provide for reasonable policyholder dividend
expectations on policies that provide for the distribution of policy
dividends.
(b) No dividend preservation provision in a plan under this article
shall be permitted:
(1) to be a substitute for the distribution of consideration to
eligible members upon extinguishing their membership interests
as required by this article; or
(2) to diminish any contractual rights to a dividend that a
member or policyholder may have.
As added by P.L.94-1999, SEC.3.
IC 27-15-10-2
Limitations on provisions
Sec. 2. Any dividend preservation provision may be limited to
participating individual life insurance policies and participating
individual annuity contracts in force or considered to be in force by
the plan of conversion on the effective date of the plan of conversion
for which the mutual insurer has an experience based dividend scale
due, paid, or accrued by action of the board of directors of the
converting mutual in the year in which the plan of reorganization is
adopted. However:
(1) policies that would be included but for the fact that their
recent issuance results in no dividends for an initial period may
be included;
(2) policies that are in force as extended term insurance may be
included; and
(3) other categories of policies and benefits not described in this
subsection may be included or excluded, subject to the approval
of the commissioner.
As added by P.L.94-1999, SEC.3.