Sec. 46. (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.
As added by P.L.227-2015, SEC.5.