Sec. 13. (a) Notwithstanding section 10 of this chapter, as used in this section, “seller” means an individual, a person doing business as a sole proprietor, a firm, a corporation, an association, a limited liability company, or a partnership:
        (1) contracting to provide prepaid or at-need services or merchandise, or both, to a named individual; and
        (2) holding a certificate of authority under this chapter.
    (b) A purchaser has the option to designate one (1) or more successor sellers to provide:
        (1) prepaid services or merchandise; or
        (2) at-need services or merchandise.
A purchaser who exercises the purchaser’s option to designate a successor seller shall give written notice of the designation to the currently designated seller, successor seller, and trustee or escrow agent. Only a purchaser may exercise the option to designate a new seller. However, the designation is ineffective unless the newly designated seller consents to the designation.
    (c) If a purchaser designates a successor seller, and the successor seller consents to the designation, not less than thirty (30) days after receiving notice under subsection (b), the seller who was previously designated shall:
        (1) relinquish and transfer all rights under the contract;
        (2) transfer to the successor the contract; and
        (3) release from trust or escrow for subsequent deposit to the successor seller’s trust or escrow all property being held as consideration for the contract, together with an itemized statement disclosing all services or merchandise delivered as of the date of transfer.
However, a seller who was previously designated to provide the services or merchandise shall comply with section 30 of this chapter. The seller and the successor sellers shall cooperate to ensure that there is no forfeiture or loss of a right or benefit under the contract and that all contract terms are fulfilled. If similar prepaid or at-need services or merchandise are purchased from one (1) or more sellers, the contract that is first in time prevails and is valid.
    (d) The trustee shall confirm the transfer to the seller, successor

seller, and purchaser by written notice confirming the identity and value of the property transferred.
    (e) It is a violation of this chapter for a seller to knowingly induce a purchaser to breach an existing contract that provides for prepaid or at-need services or merchandise.
    (f) This section does not abrogate the requirements of IC 25-15-4 concerning contracting for or delivering at-need services and merchandise.
    (g) It is a violation of this chapter for a seller to knowingly:
        (1) induce a purchaser who has the right to designate a successor seller under subsection (b) to:
            (A) make a designation of a successor seller;
            (B) breach an existing contract for prepaid or at-need services or merchandise; or
            (C) enter into an at-need or prepaid contract calling for the delivery of similar services or merchandise; or
        (2) offer a monetary inducement or the exchange or substitution of free or discounted services or merchandise in an effort to induce a purchaser to effect a change in the designation of a seller of prepaid or at-need services or merchandise.
    (h) It is a violation of this chapter for a seller to provide free or discounted burial rights:
        (1) as an inducement or as consideration for the transfer of a contract; or
        (2) in an effort to induce a purchaser to effect a change in the designation of a seller of prepaid or at-need services or merchandise.
As added by P.L.200-1991, SEC.1. Amended by P.L.207-1993, SEC.30; P.L.120-1994, SEC.4; P.L.241-1995, SEC.8; P.L.114-1999, SEC.10; P.L.76-2000, SEC.2; P.L.61-2008, SEC.8.