IC 27-15-10-1: Purpose of provisions; prohibitions

Sec. 1. (a) The sole purpose of any dividend preservation provision shall be to provide for reasonable policyholder dividend expectations on policies that provide for the distribution of policy dividends.

(b) No dividend preservation provision in a plan under this article shall be permitted:

(1) to be a substitute for the distribution of consideration to eligible members upon extinguishing their membership interests as required by this article; or

(2) to diminish any contractual rights to a dividend that a member or policyholder may have.