Indiana Code
Chapter 12. Life Insurance Company Powers and Policy Requirements
27-1-12-17.1. Acquisition of Insurable Interest in and Policy on Life of Employee

Sec. 17.1. (a) As used in this section, "employee" includes a director, an officer, a partner, a manager, a nonmanagement employee, and a retired employee of the employer or the employer's affiliates.
(b) As used in this section, "employer" means an individual, a corporation, a partnership, a limited liability company, and any other legal entity that has at least one (1) employee and is legally doing business in Indiana. The term includes an association of employers and the employer's affiliates.
(c) An employer that provides life insurance, health insurance, disability insurance, retirement benefits, or similar benefits to an employee of the employer has an insurable interest in the life of the employee. The trustee of a trust established by an employer for the benefit of the employer has the same insurable interest as the employer in the life of an employee. The trustee of a trust established by an employer that provides life insurance, health insurance, disability insurance, retirement benefits, or similar benefits to an employee of the employer and acts in a fiduciary capacity with respect to that employee or the employee's dependents or beneficiaries has an insurable interest in the life of the employee for whom benefits are to be provided.
(d) An employer or the trustee of a trust established by the employer may acquire insurance upon an employee in whom the employer or the trustee of the trust has an insurable interest as determined under subsection (c) if the employee consents to be insured. An employee consents to be insured if the employee is provided written notice of the insurance coverage and does not object to the insurance coverage within thirty (30) days of receipt of the notice.
(e) An insurable interest must exist at the time the contract of life or disability insurance becomes effective, but need not exist at the time the loss occurs.
(f) Proceeds of a policy issued under this section are exempt from the claims of the employee's creditors or dependents.
As added by P.L.254-1995, SEC.1.

Structure Indiana Code

Indiana Code

Title 27. Insurance

Article 1. Department of Insurance

Chapter 12. Life Insurance Company Powers and Policy Requirements

27-1-12-0.1. Application of Certain Amendments to Chapter

27-1-12-1. Particular Rights, Privileges, and Powers

27-1-12-2. Investments; Categories, Conditions, Limitations, and Standards

27-1-12-2.1. Repealed

27-1-12-2.2. Derivative Transactions

27-1-12-2.4. Participation in Certain Investment Pools; Requirements for Pooling Agreements

27-1-12-2.5. Investments; Assets of Certain Segregated Investment Accounts; Limitations and Exceptions

27-1-12-3. Real Estate

27-1-12-3.5. Intangible Assets Attributable to Investment in Subsidiary; Exceptions

27-1-12-4. Valuation of Bonds and Securities

27-1-12-5. Required Provisions of Policies Between July 1, 1935, and Transition Date or January 1, 1948

27-1-12-6. Required Provisions of Policies After Transition Date or January 1, 1948

27-1-12-7. Required Provisions Relating to Defaulting or Surrendering Policyholder

27-1-12-8. Prohibited Provisions

27-1-12-9. Repealed

27-1-12-10. Repealed

27-1-12-10.1. Repealed

27-1-12-10.5. Rules for Minimum Standards for Establishment of Reserves

27-1-12-11. Deposit of Assets to Cover Reserve Valuation and Liabilities; Additional Deposits; Foreign Deposits; Continuation of Deposits Under Superseded Laws

27-1-12-12. Transition Period; Selection of Date; Effect

27-1-12-13. Filing Form of Policy With Department; Objections; Effect on Right to Issue

27-1-12-14. Designation of Beneficiary; Change of Beneficiary; Eligible Beneficiaries; Exemption of Policy Proceeds From Claims of Creditors

27-1-12-15. Competency of Certain Minors to Contract for Insurance and Receive Payments

27-1-12-16. Proceeds of Life Insurance; Definition; Payment to Trustees

27-1-12-17. Authority of Corporation to Insure Life of Director, Officers, Agent, or Employee; Consent to Change of Beneficiary

27-1-12-17.1. Acquisition of Insurable Interest in and Policy on Life of Employee

27-1-12-18. Contract to Extend Time for Premium Payments

27-1-12-19. Ascertainment of Indebtedness Due Upon Policy or Premium Loans; Interest

27-1-12-20. Premium Deposits; Maximum; Inclusion in Cash Surrender Value; Disposition; Withdrawal

27-1-12-21. Power to Hold Proceeds Under Trust or Other Agreement With Policyholder

27-1-12-22. Impairment of Assets or Capital; Notice of Time for Restoration; Suspension of Right to Issue New Policies

27-1-12-23. Procedure for Converting Domestic Stock Life Insurance Company Into Mutual Life Insurance Company

27-1-12-24. Offering Stock or Certificates as Inducement for Purchase of Insurance or Annuity; Revocation of Authority

27-1-12-25. Misrepresentation of Policy Terms or Benefits; Inducing Policyholder to Lapse, Forfeit, or Surrender Insurance

27-1-12-26. Fraudulent Representations; Offense

27-1-12-27. Repealed

27-1-12-28. Repealed

27-1-12-29. Group Life Insurance; Exemption of Proceeds From Legal Process

27-1-12-30. Group Life Insurance; Assignment of Incidents of Ownership

27-1-12-31. Authority to Issue Life or Endowment Insurance Upon Group Plan; Special Premium Rates; Valuation of Policies; Segregation

27-1-12-32. Financial Qualifications of Companies Issuing Certain Contracts

27-1-12-33. Variable Life Insurance Policies; Contents; Regulation

27-1-12-34. Repealed

27-1-12-34.1. Wholesale, Franchise, and Employee Term Life Insurance; Issuance or Delivery; Requirements

27-1-12-35. Life Insurance Proceeds; Payment; Time Limit; Liability for Interest

27-1-12-36. Repealed

27-1-12-37. Group Life Insurance; Eligible Policyholders; Regulations

27-1-12-38. Group Life Insurance; Requirements for Issuance of Policy to Certain Groups

27-1-12-39. Direct Response Solicitations; Notice of Payment of Compensation

27-1-12-40. Group Life Insurance; Premiums; Spouse or Dependent Child Coverage

27-1-12-41. Group Life Insurance; Required Provisions

27-1-12-42. Group Life Insurance; Conversion Rights; Notice; Time to Exercise Rights

27-1-12-43. Life Insurance Provision Allowing for Right to Return Policy

27-1-12-44. Stranger Originated Life Insurance Allegation; Lack of Insurable Interest

27-1-12-45. Execution of Post Form Does Not Affect Life Insurance; Prohibition on Consideration of Post Form in Determining Life Insurance Premiums

27-1-12-46. Policy or Certificate Designated for Purchase of Funeral Services or Merchandise; Representations by Issuer; Required Disclosures; Violations