Sec. 3. (a) A standard company may not insure property located outside the standard company’s territory, as described in the standard company’s articles of incorporation, unless the standard company meets the following requirements for expansion:

(1) A standard company with annual direct written premiums that total not less than one hundred thousand dollars ($100,000) may expand the territory in which the standard company insures property to not more than ten (10) counties if the expansion is approved by the affirmative vote of a majority of the standard company’s:

(A) board of directors; or

(B) policyholders present and voting at a meeting of the policyholders.

(2) A standard company with annual direct written premiums that total not less than two hundred fifty thousand dollars ($250,000) may expand the territory in which the standard company insures property to more than ten (10) counties if the expansion is approved by the affirmative vote of a majority of the standard company’s:

(A) board of directors; or

(B) policyholders present and voting at a meeting of the policyholders.

     (b) The net retention per risk of a standard company may not exceed two-tenths percent (0.2%) of the standard company’s insurance in force.

     (c) A standard company shall make investments in accordance with IC 27-1-13-3.

As added by P.L.129-2003, SEC.8.