Sec. 39. (a) As used in this section, "direct response solicitation" means a solicitation through a sponsoring or endorsing entity through the mails, telephone, or other mass communications media.
(b) As used in this section, "sponsoring or endorsing entity" means an organization that has arranged for the offering of a program of insurance in a manner that communicates that:
(1) eligibility for participation in the program is dependent upon affiliation with the organization; or
(2) the organization encourages participation in the program.
(c) This section applies to any program of insurance that, if issued on a group basis, would not conform to one (1) of the descriptions in section 37 of this chapter.
(d) If compensation of any kind will or may be paid, under a program of insurance described in subsection (c), to:
(1) a policyholder or sponsoring or endorsing entity in the case of a group policy; or
(2) a sponsoring or endorsing entity in the case of individual, blanket, or franchise policies marketed by means of direct response solicitation;
the insurer shall cause to be distributed to prospective insureds under the program a written notice that compensation will or may be paid under the program as indicated in subdivision (1) or (2).
(e) The notice required under subsection (d) shall be given:
(1) whether the compensation that will or may be paid is direct or indirect; and
(2) whether the compensation is to be paid to or retained by:
(A) the policyholder or sponsoring or endorsing entity; or
(B) a third party, at the direction of the policyholder or sponsoring or endorsing entity, or any entity affiliated with the sponsoring or endorsing entity by way of ownership, contract, or employment.
(f) The notice required under subsection (d) shall be placed on or accompany any application or enrollment form provided prospective insureds.
As added by P.L.254-1985, SEC.3.
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