Introduced Version






SENATE BILL No. 418

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 27-1-13-3.5.

Synopsis: Intangible assets of an insurance subsidiary. Authorizes the insurance commissioner to allow an insurer to exceed the current statutory limit on the total value of goodwill, trade names, and other intangible assets that can be recognized as admitted assets if the insurer's assets include goodwill, trade names, and other intangible assets that are attributable to the insurer's acquisition of another insurer or a health maintenance organization. (The current statutory limit provides that the total value of goodwill, trade names, and other intangible assets of an insurer that can be recognized as admitted assets of the insurer cannot exceed 10% of the insurer's capital and surplus.)

Effective: January 1, 2000 (retroactive).





Lewis




    January 10, 2000, read first time and referred to Committee on Insurance and Financial Institutions.







Introduced

Second Regular Session 111th General Assembly (2000)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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SENATE BILL No. 418



    A BILL FOR AN ACT to amend the Indiana Code concerning insurance.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 27-1-13-3.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2000 (RETROACTIVE)]: Sec. 3.5. (a) Except as provided by subsection (b), goodwill, trade names, and other like intangible assets attributable to any investment in a subsidiary shall be admitted as assets except:
        (1) to the extent that the aggregate amount thereof exceeds ten percent (10%) of the capital and surplus of the insurer as reported in its latest annual report filed with the commissioner;
        (2) to the extent that any such asset is not being amortized ratably over a period of ten (10) years or less from the date of acquisition; and
        (3) in determining the financial condition or solvency of an insurer under IC 27-9.
     (b) The commissioner may increase the ten percent (10%) limitation under subsection (a)(1) if the assets of the insurer include goodwill, trade names, and other like intangible assets that are attributable to the acquisition of an insurance company or

health maintenance organization that is authorized to do business under the laws of any state of the United States.
    SECTION 2. [EFFECTIVE JANUARY 1, 2000 (RETROACTIVE)] IC 27-1-13-3.5 , as amended by this act, applies to financial statements filed by an insurer after December 31, 1999.
    SECTION 3. An emergency is declared for this act.