§ 30-2-13-13 — Designation of successor sellers

(a) Notwithstanding section 10 of this
chapter, as used in this section, "seller" means an individual, a person
doing business as a sole proprietor, a firm, a corporation, an
association, a limited liability company, or a partnership:
(1) contracting to provide prepaid or at-need services or
merchandise, or both, to a named individual; and
(2) holding a certificate of authority under this chapter.
(b) A purchaser has the option to designate one (1) or more
successor sellers to provide:
(1) prepaid services or merchandise; or
(2) at-need services or merchandise.
A purchaser who exercises the purchaser's option to designate a
successor seller shall give written notice of the designation to the
currently designated seller, successor seller, and trustee or escrow
agent. Only a purchaser may exercise the option to designate a new
seller. However, the designation is ineffective unless the newly
designated seller consents to the designation.
(c) If a purchaser designates a successor seller, and the successor
seller consents to the designation, not less than thirty (30) days after
receiving notice under subsection (b), the seller who was previously
designated shall:
(1) relinquish and transfer all rights under the contract;
(2) transfer to the successor the contract; and
(3) release from trust or escrow for subsequent deposit to the
successor seller's trust or escrow all property being held as
consideration for the contract, together with an itemized statement
disclosing all services or merchandise delivered as of the date of
transfer.
However, a seller who was previously designated to provide the
services or merchandise shall comply with section 30 of this chapter.
The seller and the successor sellers shall cooperate to ensure that there
is no forfeiture or loss of a right or benefit under the contract and that
all contract terms are fulfilled. If similar prepaid or at-need services or
merchandise are purchased from one (1) or more sellers, the contract
that is first in time prevails and is valid.
(d) The trustee shall confirm the transfer to the seller, successor
seller, and purchaser by written notice confirming the identity and
value of the property transferred.
(e) It is a violation of this chapter for a seller to knowingly induce
a purchaser to breach an existing contract that provides for prepaid or
at-need services or merchandise.
(f) This section does not abrogate the requirements of IC 25-15-4
concerning contracting for or delivering at-need services and
merchandise.
(g) It is a violation of this chapter for a seller to knowingly:
(1) induce a purchaser who has the right to designate a successor
seller under subsection (b) to:
(A) make a designation of a successor seller;
(B) breach an existing contract for prepaid or at-need services
or merchandise; or
(C) enter into an at-need or prepaid contract calling for the
delivery of similar services or merchandise; or
(2) offer a monetary inducement or the exchange or substitution
of free or discounted services or merchandise in an effort to
induce a purchaser to effect a change in the designation of a seller
of prepaid or at-need services or merchandise.
(h) It is a violation of this chapter for a seller to provide free or
discounted burial rights:
(1) as an inducement or as consideration for the transfer of a
contract; or
(2) in an effort to induce a purchaser to effect a change in the
designation of a seller of prepaid or at-need services or
merchandise.

Legislative History

As added by P.L.200-1991, SEC.1. Amended by P.L.207-1993, SEC.30; P.L.120-1994, SEC.4; P.L.241-1995, SEC.8; P.L.114-1999, SEC.10; P.L.76-2000, SEC.2; P.L.61-2008, SEC.8.