AN ACT to amend the Indiana Code concerning insurance.
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 in subsection (a)(1) to an amount not to exceed twenty percent (20%) of the capital and surplus of the insurer as reported in its latest annual statement filed with the commissioner if:
(1) the assets of the insurer include good will, trade names, and other like intangible assets that are attributable to the acquisition after December 31, 1998, of an insurance company or health maintenance organization authorized to do business under the laws of any state; and
(2) as of the date of the initial request for an increase in the ten percent (10%) limitation in subsection (a)(1) the total adjusted capital of the insurer is at least four hundred percent (400%) of the authorized control level risk based capital of the insurer as reported in the latest annual report filed with the commissioner.
(c) The commissioner may retain experts to assist with a request
made under subsection (b). The insurer shall pay all costs for the experts.
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.