§ 27-1-12-46 — Policy or certificate designated for purchase of funeral services or merchandise; representations by issuer; required disclosures; violations

(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.

Legislative History

As added by P.L.227-2015, SEC.5.