§ 27-2-22-8 — Required disclosures by insurer to the beneficiary

Indiana § 27-2-22-8

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 2: POWERS AND DUTIES OF INSURERS
• Ch. 22: Retained Asset Accounts

Text

(a) An insurer that pays a policy death benefit
in any manner other than a lump sum payment of the full amount of the
policy proceeds shall provide, in written or electronic form, a
disclosure containing a complete list and clear explanation of all
payment options available to the beneficiary.
(b) An insurer described in subsection (a) shall not use a retained
asset account as the default manner of payment of the policy death
benefit unless the insurer conspicuously discloses to the beneficiary
that, in the event that the beneficiary does not choose another payment
option, a retained asset account will be used as the default manner of
payment.
(c) The disclosure required by section 7 of this chapter must include
the following information:
(1) A recommendation for the beneficiary to consult a tax,
investment, or other financial adviser regarding tax liability and
investment options.
(2) The:
(A) method by which interest rates are determined;
(B) timing and method of interest rate changes; and
(C) dividends or other gains that may be paid to the beneficiary;
applicable to the funds in the retained asset account.
(3) The identity of the custodian of the funds in the retained asset
account.
(4) Whether the retained asset account is insured by the Federal
Deposit Insurance Corporation and, if so, the amount of the
coverage.
(5) Any limitations on the number and amount of withdrawals of
funds from the retained asset account, including minimum or
maximum benefit payment amounts.
(6) Services related to the retained asset account that are provided
for a fee, including a list of the fees or method of calculation of
the fees.
(7) The nature and frequency of statements of account for the
retained asset account.
(8) That the payment of some or all of the proceeds may be by the
delivery of checks, drafts, or other instruments to access the
available funds.
(9) That the entire proceeds are available to the beneficiary by the
use of one (1) check, draft, or other instrument.
(10) That the insurer or a related party may derive income, in
addition to fees charged on the retained asset account, from the
total gains received on the investment of the balance of funds in
the retained asset account.
(11) The telephone number, address, and other contact
information, including Internet web site address, from which the
beneficiary may obtain additional information regarding the
retained asset account.
(12) The following statement:
"FOR FURTHER INFORMATION, PLEASE CONTACT
YOUR STATE DEPARTMENT OF INSURANCE.".
(d) The disclosures described in this section must be written in:
(1) layman's terms; and
(2) bold or at least 12 point type.

Legislative History

As added by P.L.67-2011, SEC.1. Amended by P.L.6-2012, SEC.187.