Sec. 8. (a) An insurer may not deny, exclude, or limit payment of a claim made:
(1) by an innocent coinsured;
(2) for coverage of a property loss to the primary residence of the innocent coinsured; and
(3) under a policy of property or casualty insurance;
unless the denial, exclusion, or limitation of payment is otherwise allowed by law and applied to the innocent coinsured in the same manner and to the same extent as the denial, exclusion, or limitation of payment is applied by the insurer to all other insureds, regardless of whether an insured is an innocent coinsured.
(b) An insurer shall pay the following on a claim described in subsection (a):
(1) The actual cost of repair or replacement of the property that is the subject of the claim if the actual cost of repair or replacement is less than or equal to the maximum limit of coverage under the policy of property or casualty insurance.
(2) The maximum limit of coverage under the policy of property or casualty insurance if the actual cost of repair or replacement of the property that is the subject of the claim is greater than the maximum limit of coverage under the policy of property or casualty insurance.
(c) This section does not require an insurer to make payment on a claim described in subsection (a) in an amount that is greater than the amount applicable to the part of the damaged property to which the innocent coinsured is entitled under a decree of dissolution of marriage between the innocent coinsured and the individual described in section 5(2) of this chapter.
(d) This section does not require an insurer to do the following:
(1) Make payment to an innocent coinsured on a claim described in subsection (a) in an amount that exceeds:
(A) the innocent coinsured's ownership interest in the property; minus
(B) any payment by the insurer to a mortgagee or another lienholder with a secured interest in the property.
(2) Make payment to another coinsured for the part of a loss for which the insurer has already made payment to the innocent coinsured.
As added by P.L.148-2017, SEC.8.