Indiana Code
Chapter 12. Life Insurance Company Powers and Policy Requirements
27-1-12-46. Policy or Certificate Designated for Purchase of Funeral Services or Merchandise; Representations by Issuer; Required Disclosures; Violations

Sec. 46. (a) This section applies to a life insurance policy or certificate:
(1) that is issued after June 30, 2015;
(2) the proceeds of which may be designated for use in the purchase of funeral services or merchandise upon the death of the insured; and
(3) the ownership of which is not irrevocably assigned to a trustee and used to fund a contract under IC 30-2-13.
(b) An issuer of a life insurance policy or certificate described in subsection (a) may not represent to a policyholder or certificate holder, a prospective policyholder or certificate holder, an insured, a beneficiary, or any other person that the life insurance policy or certificate is:
(1) a contract for prepaid services or merchandise under IC 30-2-13; or
(2) a funeral policy or a policy with any similar designation.
(c) A life insurance policy or certificate described in subsection (a) may not be delivered or issued for delivery in Indiana, or issued by a company organized under the laws of this state, unless the life insurance policy or certificate either contains or includes in an attached disclaimer the following provisions, or corresponding provisions that the department determines are at least as favorable to policyholders or certificate holders:
(1) A statement that the life insurance policy or certificate is not a contract for prepaid services or merchandise under IC 30-2-13.
(2) A statement that the life insurance policy or certificate does not entitle the policyholder, the certificate holder, or any other person to:
(A) prepaid funeral services or merchandise, or any services or merchandise described in IC 30-2-13-8; or
(B) the right to file a complaint with the state board of funeral and cemetery service established by IC 25-15-9-1 for restitution from the preneed consumer protection fund under IC 30-2-13-29;
unless ownership of the policy is irrevocably assigned to a trustee to fund a contract entered into with a seller (as defined under IC 30-2-13-10) under IC 30-2-13.
(3) A statement that:
(A) the life insurance policy or certificate:
(i) is not guaranteed to be exempt as a resource in determining eligibility for Medicaid under IC 12-15-2-17; and
(ii) does not guarantee Medicaid eligibility; and
(B) Medicaid eligibility determinations are made in accordance with applicable Medicaid laws and policies.
(d) A person that willfully violates this section commits an unfair and deceptive act or practice in the business of insurance under IC 27-4-1-4 and is subject to the penalties and procedures set forth in IC 27-4-1.
As added by P.L.227-2015, SEC.5.

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