Sec. 34.1. (a) No policy of wholesale, franchise, or employee life insurance, as defined in this section, shall be issued or delivered in this state unless it conforms to the requirements of this section.
(b) Wholesale, franchise, or employee life insurance is defined as a term life insurance plan under which a number of individual term insurance policies are issued at special rates to a selected group. A special rate is any rate lower than the rate shown in the issuing insurance company's manual for individually issued policies of the same type and to insureds of the same class.
(c) Wholesale, franchise, or employee life insurance may be issued to:
(1) three (3) or more employees of any corporation, copartnership, or individual employer, or any governmental corporation, agency, or department thereof; or
(2) ten (10) or more members, employees, or employees of members of any trade or professional association, or of a labor union, or of any association of members in the same or related occupations, profession, or industry having been in existence for at least two (2) years, where such association or union has a constitution or bylaws and is formed in good faith for purposes other than that of obtaining insurance. Evidence of individual insurability satisfactory to the insurer may be required by the insurer as a condition to coverage.
(d) The premiums on such policies may be paid to the insurer periodically by the employer, with or without payroll deductions, or by the insured or association or union for its members, or by some designated person acting on behalf of such employer, association, or union. The term "employees" as used in this chapter refers to officers, managers, employees, and retired employees of the employer and the individual proprietor or partners if the employer is an individual or partnership.
(e) Each policy issued under this section shall provide that, if the insured person ceases to qualify for the policy he may convert the policy, without evidence of insurability, to an individual policy of life insurance, provided application for such conversion is made within thirty-one (31) days of the date the insured person ceases to qualify for coverage under this section. The individual policy shall be issued on any one (1) of the forms, except term insurance, then customarily issued by the insurer at the age and in the amount applied for. The premium on this individual policy is to be at the insurer's then customary rate applicable to the form and amount of such individual policy, the class of risk to which the insured person then belongs, and his age attained on the effective date of such individual policy.
As added by Acts 1982, P.L.6, SEC.17.
Structure Indiana Code
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
27-1-12-2.2. Derivative Transactions
27-1-12-2.4. Participation in Certain Investment Pools; Requirements for Pooling Agreements
27-1-12-3.5. Intangible Assets Attributable to Investment in Subsidiary; Exceptions
27-1-12-4. Valuation of Bonds and Securities
27-1-12-6. 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
27-1-12-10.5. Rules for Minimum Standards for Establishment of Reserves
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
27-1-12-15. Competency of Certain Minors to Contract for Insurance and Receive Payments
27-1-12-16. Proceeds of Life Insurance; Definition; Payment to Trustees
27-1-12-17.1. 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
27-1-12-26. Fraudulent Representations; Offense
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
27-1-12-32. Financial Qualifications of Companies Issuing Certain Contracts
27-1-12-33. Variable Life Insurance Policies; Contents; Regulation
27-1-12-35. Life Insurance Proceeds; Payment; Time Limit; Liability for Interest
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