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).
January 10, 2000, read first time and referred to Committee on Insurance and Financial
A BILL FOR AN ACT to amend the Indiana Code concerning
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.