Ind. Code § 27-5.1-2-30
Premium plus assessment basis; policyholder liability
Indiana · Indiana Code Title 27 — Insurance · Status: effective
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- Ind. Code § 27-5.1-2-30, Premium plus assessment basis; policyholder liability, Indiana, version 1 as recorded 2026-09-28, yourstate.us, https://yourstate.us/provision/1663285
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Full text
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:
(1) pay the losses and necessary expenses incurred by the farm mutual insurance company; and
(2) maintain an adequate reserve or safety fund as determined by the farm mutual insurance company's directors;
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.