§ 27-1-13-18 — Transfer on death transfer; insurance coverage

Indiana § 27-1-13-18

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 13: Casualty, Fire, and Marine Insurance Company Powers

Text

(a) This section applies to a loss or damages
incurred after June 30, 2025, for a policy of insurance that is described
in:
(1) Class 3(a) of IC 27-1-5-1; or
(2) Class 2(h) of IC 27-1-5-1.
However, this section does not apply to a commercial lines property
insurance policy.
(b) This section applies regardless of whether the policy of
insurance was created before, on, or after July 1, 2025, unless the
application of this section to the policy of insurance would:
(1) for a policy issued before July 1, 2025, give a right to a
beneficiary that the beneficiary was not reasonably intended to
have, other than the beneficiary's right to insurance coverage until
the time limitation described in subsection (e); or
(2) for a policy issued at any time, relieve a beneficiary from a
duty or liability imposed on the insured by the terms of the policy.
(c) The following definitions apply throughout this section:
(1) "Beneficiary" has the meaning set forth in IC 32-17-14-3(1).
(2) "Insurable interest" means an insured's interest in real
property, concerning which the insured is entitled to the benefits
of insurance coverage under a property insurance policy.
(3) "Insured" means a person who is entitled to the benefits of
insurance coverage under a property insurance policy.
(4) "Named insured" means a person identified by name as an
insured under a property insurance policy.
(5) "Property insurance policy" means a policy of insurance that
is described in Class 2(h) or Class 3(a) of IC 27-1-5-1. The term
does not include a commercial lines property insurance policy.
(6) "Transfer" means an ownership change in a named insured's
insurable interest in real property to a beneficiary of a transfer on
death deed that occurs as a consequence of the named insured's
death.
(7) "Transferee" means a person who has acquired or received a
named insured's insurable interest in real property through a
transfer.
(8) "Transfer on death deed" has the meaning set forth in IC 32-17-14-3(16).
(d) Subject to subsection (e), each transferee of a named insured's
insurable interest in real property is also an insured to the extent of the
named insured's insurable interest in real property that the transferee
has acquired or received through a transfer.
(e) Except as provided in subsections (f) and (g) and IC 32-38-3-1,
for a period of sixty (60) days immediately following the death of the
insured, each transferee is an insured under a property insurance policy
insuring the real property the transferee acquired or received through
a transfer. At the time of the insured's death, the transferee succeeds to
the rights and obligations of the insured under the property insurance
policy, to the extent of the insured's insurable interest in real property
that the transferee has acquired or received through a transfer, for the
sixty (60) day period.
(f) If a property insurance policy has a policy expiration date that is
less than sixty (60) days after the death of the insured, insurance
coverage continues for either:
(1) thirty (30) days; or
(2) the policy expiration date;
whichever is later.
(g) If a transferee obtains a property insurance policy insuring the
real property the transferee acquired or received through a transfer, the
transferee is not an insured on the insurance policy described in
subsection (e) once the transferee's property insurance policy becomes
effective.

Legislative History

As added by P.L.2-2024, SEC.1. Amended by P.L.161-2024, SEC.1; P.L.6-2025, SEC.1.