Sec. 27. (a) The purpose of this section is to preclude insurers from charging higher rates for innocent prior-uninsured motorists who have not operated a motor vehicle in violation of any financial responsibility or compulsory insurance requirement within the prior twelve months.

     (b) As used in this section, “motor vehicle insurance” means any type of insurance described in IC 27-1-5-1, Class 2(f).

Terms Used In Indiana Code 27-1-22-27

  • 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: means a company, firm, partnership, association, order, society or system making any kind or kinds of insurance and shall include associations operating as Lloyds, reciprocal or inter-insurers, or individual underwriters. See Indiana Code 27-1-2-3
  • Month: means a calendar month, unless otherwise expressed. See Indiana Code 1-1-4-5
  • policyholder: means one who is a holder of a contract of insurance in an insurance company. See Indiana Code 27-1-2-3
     (c) A motor vehicle insurer may not discriminate in establishing a rate for a policyholder or applicant, based solely on the absence of insurance by the applicant or policyholder.

     (d) This section does not apply to applicants who first received their driver’s license within the past thirty-six (36) month period.

     (e) A violation of this section is an unfair and deceptive act or practice in the business of insurance under IC 27-4-1-4.

As added by P.L.169-1999, SEC.1.

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