Indiana Code 27-1-47-1. Definitions; permitted activities
(1) “Drawing” means an activity in which:
Terms Used In Indiana Code 27-1-47-1
- Contract: A legal written agreement that becomes binding when signed.
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- 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
- 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
- Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(B) the person or persons who receive a prize are determined by chance, as by randomly drawing one (1) or more names or numbers from among many names or numbers.
(2) “Gift” means the voluntary transfer of anything of value without consideration.
(3) “Prize” means something of value received by a person as the result of a drawing.
(b) Notwithstanding any other provision of this title, an insurer, an employee of an insurer, or an insurance producer may do the following:
(1) Offer and give one (1) or more gifts to a person in connection with marketing for the sale or retention of a contract of insurance if the reasonable value of all gifts given by the insurer, employee, or producer to a person in one (1) year does not exceed two hundred fifty dollars ($250).
(2) Conduct a drawing if:
(A) persons participating in the drawing do not pay or incur a cost for their participation; and
(B) the value of the prize or prizes received by any single person participating in the drawing does not exceed five hundred dollars ($500).
(c) Neither:
(1) a gift given under subsection (b)(1); nor
(2) a prize received in a drawing conducted under subsection (b)(2);
may be in the form of cash.
As added by P.L.196-2021, SEC.33. Amended by P.L.9-2022, SEC.50.