Indiana Code 27-1-36-56. Excess capital
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Sec. 56. (a) An excess of capital over the amount produced by the:
(2) formulas, schedules, and instructions referred to in this chapter;
(1) risk based capital requirements contained in this chapter; and
Terms Used In Indiana Code 27-1-36-56
- capital: means the aggregate amount paid in on the shares of capital stock of a corporation issued and outstanding. See Indiana Code 27-1-2-3
- Insurance: means a contract of insurance or an agreement by which one (1) party, for a consideration, promises to pay money or its equivalent or to do an act valuable to the insured upon the destruction, loss or injury of something in which the other party has a pecuniary interest, or in consideration of a price paid, adequate to the risk, becomes security to the other against loss by certain specified risks; to grant indemnity or security against loss for a consideration. See Indiana Code 27-1-2-3
- insurer: includes :
Indiana Code 27-1-36-9.6
- RBC: refers to risk based capital. See Indiana Code 27-1-36-16
is desirable in the business of insurance. Therefore, insurers should seek to maintain capital above the RBC levels required by this chapter.
(b) Additional capital is used and useful in the insurance business and helps to secure an insurer against various risks that are:
(1) inherent in or affecting the business of insurance; and
(2) not accounted for or only partially measured by the risk based capital requirements contained in this chapter.
As added by P.L.186-1996, SEC.1.