§ 27-1-12-34.1 — Wholesale, franchise, and employee term life insurance; issuance or delivery; requirements

Indiana § 27-1-12-34.1

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 12: Life Insurance Company Powers and Policy

Text

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.