Indiana § 27-1-43.2-11 Service contract requirements

Indiana Statutes

§ 27-1-43.2-11 — Service contract requirements

Indiana § 27-1-43.2-11

Title 27INSURANCE

Art. 1DEPARTMENT OF INSURANCE

Ch. 43.2Service Contracts

This text of Indiana § 27-1-43.2-11 (Service contract requirements) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 27-1-43.2-11 (2026).

Text

(a)Except as provided in section 14 of this chapter, a service contract may not be offered, sold, or issued in Indiana unless the provider complies with one (1) of the following subdivisions:

(1)All of the following conditions are met:

(A)The provider is insured under a service contract reimbursement policy issued by an insurer authorized to do business in Indiana.

(B)True and correct copies of the service contract reimbursement policy have been filed with the commissioner.

(C)The service contract conspicuously:

(i)states that the obligations of the provider to the holder are covered under the service contract reimbursement policy; and

(ii)sets forth the name and address of the insurer that issued the service contract reimbursement policy.

(2)The provider maintains a funded reserve

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(a) Except as provided in section 14 of this
chapter, a service contract may not be offered, sold, or issued in
Indiana unless the provider complies with one (1) of the following
subdivisions:
(1) All of the following conditions are met:
(A) The provider is insured under a service contract
reimbursement policy issued by an insurer authorized to do
business in Indiana.
(B) True and correct copies of the service contract
reimbursement policy have been filed with the commissioner.
(C) The service contract conspicuously:
(i) states that the obligations of the provider to the holder are
covered under the service contract reimbursement policy; and
(ii) sets forth the name and address of the insurer that issued
the service contract reimbursement policy.
(2) The provider maintains a funded reserve account for its
obligations under each service contract issued by the provider in
Indiana and outstanding, subject to the following:
(A) The reserves are calculated at not less than forty percent
(40%) of the gross consideration received, then minus the
amount of claims paid under the service contracts.
(B) The service contract conspicuously states that the
obligations of the provider under the service contract are
backed by the full faith and credit of the provider.
A reserve account maintained under subdivision (2) is subject to
examination and review by the commissioner under section 15 of this
chapter.
(b) A filing described in subsection (a)(1)(B) is for informational
purposes only and is not subject to approval by the commissioner.