Indiana Code 27-1-12-46. Policy or certificate designated for purchase of funeral services or merchandise; representations by issuer; required disclosures; violations
(1) that is issued after June 30, 2015;
Terms Used In Indiana Code 27-1-12-46
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Contract: A legal written agreement that becomes binding when signed.
- Department: means "the department of insurance" of this state. 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
- person: includes individuals, corporations, associations, and partnerships; personal pronoun includes all genders; the singular includes the plural and the plural includes the singular. See Indiana Code 27-1-2-3
- policyholder: means one who is a holder of a contract of insurance in an insurance company. See Indiana Code 27-1-2-3
- Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
- Trustee: A person or institution holding and administering property in trust.
(3) the ownership of which is not irrevocably assigned to a trustee and used to fund a contract under IC 30-2-13.
(b) An issuer of a life insurance policy or certificate described in subsection (a) may not represent to a policyholder or certificate holder, a prospective policyholder or certificate holder, an insured, a beneficiary, or any other person that the life insurance policy or certificate is:
(1) a contract for prepaid services or merchandise under IC 30-2-13; or
(2) a funeral policy or a policy with any similar designation.
(c) A life insurance policy or certificate described in subsection (a) may not be delivered or issued for delivery in Indiana, or issued by a company organized under the laws of this state, unless the life insurance policy or certificate either contains or includes in an attached disclaimer the following provisions, or corresponding provisions that the department determines are at least as favorable to policyholders or certificate holders:
(1) A statement that the life insurance policy or certificate is not a contract for prepaid services or merchandise under IC 30-2-13.
(2) A statement that the life insurance policy or certificate does not entitle the policyholder, the certificate holder, or any other person to:
(A) prepaid funeral services or merchandise, or any services or merchandise described in IC 30-2-13-8; or
(B) the right to file a complaint with the state board of funeral and cemetery service established by IC 25-15-9-1 for restitution from the preneed consumer protection fund under IC 30-2-13-29;
unless ownership of the policy is irrevocably assigned to a trustee to fund a contract entered into with a seller (as defined under IC 30-2-13-10) under IC 30-2-13.
(3) A statement that:
(A) the life insurance policy or certificate:
(i) is not guaranteed to be exempt as a resource in determining eligibility for Medicaid under IC 12-15-2-17; and
(ii) does not guarantee Medicaid eligibility; and
(B) Medicaid eligibility determinations are made in accordance with applicable Medicaid laws and policies.
(d) A person that willfully violates this section commits an unfair and deceptive act or practice in the business of insurance under IC 27-4-1-4 and is subject to the penalties and procedures set forth in IC 27-4-1.
As added by P.L.227-2015, SEC.5.