Indiana 2024 Regular Session

Indiana House Bill HB1359 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	EH1359.1
	2	+	February 23, 2024
	3	+	ENGROSSED
	4	+	HOUSE BILL No. 1359
	5	+	_____
	6	+	DIGEST OF HB 1359 (Updated February 21, 2024 1:02 pm - DI 154)
	7	+	Citations Affected: IC 27-1.
	8	+	Synopsis: Health provider contracts. Provides that if a party to a health
	9	+	provider contract intends to terminate the contractual relationship with
	10	+	another party to the health provider contract, the terminating party must
	11	+	provide written notice to the other party of the decision to terminate the
	12	+	contractual relationship not less than 90 days before the health provider
	13	+	contract terminates.
	14	+	Effective: July 1, 2024.
	15	+	Carbaugh, Lehman, Smaltz,
	16	+	Fleming
	17	+	(SENATE SPONSORS — JOHNSON T, BUSCH, WALKER K)
	18	+	January 10, 2024, read first time and referred to Committee on Insurance.
	19	+	January 25, 2024, amended, reported — Do Pass.
	20	+	January 29, 2024, read second time, ordered engrossed. Engrossed.
	21	+	January 30, 2024, read third time, passed. Yeas 92, nays 0.
	22	+	SENATE ACTION
	23	+	February 12, 2024, read first time and referred to Committee on Insurance and Financial
	24	+	Institutions.
	25	+	February 22, 2024, amended, reported favorably — Do Pass.
	26	+	EH 1359—LS 6982/DI 92 February 23, 2024
1	27		Second Regular Session of the 123rd General Assembly (2024)
2	28		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	29		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	30		additions will appear in this style type, and deletions will appear in this style type.
5	31		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	32		provision adopted), the text of the new provision will appear in this style type. Also, the
7	33		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	34		a new provision to the Indiana Code or the Indiana Constitution.
9	35		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	36		between statutes enacted by the 2023 Regular Session of the General Assembly.
11		-	HOUSE ENROLLED ACT No. 1359
12		-	AN ACT to amend the Indiana Code concerning probate.
	37	+	ENGROSSED
	38	+	HOUSE BILL No. 1359
	39	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	40	+	insurance.
13	41		Be it enacted by the General Assembly of the State of Indiana:
14		-	SECTION 1. IC 27-1-13-18, AS ADDED BY HEA 1034-2024,
15		-	SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16		-	JULY 1, 2024]: Sec. 18. (a) This section applies to a loss or damages
17		-	incurred after December 31, 2024, June 30, 2025, for a policy of
18		-	insurance that is described in:
19		-	(1) Class 3 of IC 27-1-5-1; or
20		-	(2) Class 2 of IC 27-1-5-1, except for a policy of insurance that is
21		-	described in Class 2(j) of IC 27-1-5-1.
22		-	(b) This section applies regardless of whether the policy of
23		-	insurance was created before, on, or after January 1, 2025, July 1,
24		-	2025, unless the application of this section to the policy of insurance
25		-	would:
26		-	(1) for a policy issued before January 1, 2025, July 1, 2025, give
27		-	a right to a beneficiary that the beneficiary was not reasonably
28		-	intended to have, other than the beneficiary's right to insurance
29		-	coverage until the time limitation described in subsection (e); or
30		-	(2) for a policy issued at any time, relieve a beneficiary from a
31		-	duty or liability imposed on the insured by the terms of the policy.
32		-	(c) The following definitions apply throughout this section:
33		-	(1) "Beneficiary" has the meaning set forth in IC 32-17-14-3(1).
34		-	(2) "Insurable interest" means an insured's interest in real or
35		-	personal property, concerning which the insured is entitled to the
36		-	HEA 1359 — CC 1 2
37		-	benefits of insurance coverage under a property and casualty
38		-	insurance policy or liability insurance policy.
39		-	(3) "Insured" means a person who is entitled to the benefits of
40		-	insurance coverage under a property and casualty insurance
41		-	policy or liability insurance policy.
42		-	(4) "Named insured" means a person identified by name as an
43		-	insured under a property and casualty insurance policy or liability
44		-	insurance policy.
45		-	(5) "Property and casualty insurance policy or liability insurance
46		-	policy" means a policy of insurance that is described in Class 2 or
47		-	Class 3 of IC 27-1-5-1.
48		-	(6) "Transfer" means an ownership change in a named insured's
49		-	insurable interest in real or personal property to a beneficiary of
50		-	a transfer on death transfer that occurs as a consequence of the
51		-	named insured's death.
52		-	(7) "Transferee" means a person who has acquired or received a
53		-	named insured's insurable interest in real or personal property
54		-	through a transfer.
55		-	(8) "Transfer on death transfer" has the meaning set forth in
56		-	IC 32-17-14-3(17).
57		-	(d) Subject to subsection (e), each transferee of a named insured's
58		-	insurable interest in real or personal property is also an insured to the
59		-	extent of the named insured's insurable interest in real or personal
60		-	property that the transferee has acquired or received through a transfer.
61		-	(e) Except as provided in subsections (f) and (g) and IC 32-38-3-1,
62		-	for a period of sixty (60) days immediately following the death of the
63		-	insured, each transferee is an insured under a property and casualty
64		-	insurance policy or liability insurance policy insuring the real or
65		-	personal property the transferee acquired or received through a
66		-	transfer. At the time of the insured's death, the transferee succeeds to
67		-	the rights and obligations of the insured under the property and
68		-	casualty insurance policy or liability insurance policy, to the extent of
69		-	the insured's insurable interest in real or personal property that the
70		-	transferee has acquired or received through a transfer, for the sixty (60)
71		-	day period.
72		-	(f) If a property and casualty insurance policy or liability insurance
73		-	policy has a policy expiration date that is less than sixty (60) days after
74		-	the death of the insured, insurance coverage continues for either:
75		-	(1) thirty (30) days; or
76		-	(2) the policy expiration date;
77		-	whichever is later.
78		-	(g) If a transferee obtains a property and casualty insurance policy
79		-	HEA 1359 — CC 1 3
80		-	or liability insurance policy insuring the real or personal property the
81		-	transferee acquired or received through a transfer, the transferee is not
82		-	an insured on the insurance policy described in subsection (e) once the
83		-	transferee's property and casualty insurance policy or liability insurance
84		-	policy becomes effective.
85		-	HEA 1359 — CC 1 Speaker of the House of Representatives
86		-	President of the Senate
87		-	President Pro Tempore
88		-	Governor of the State of Indiana
89		-	Date: Time:
90		-	HEA 1359 — CC 1
	42	+	1 SECTION 1. IC 27-1-37-9 IS ADDED TO THE INDIANA CODE
	43	+	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	44	+	3 1, 2024]: Sec. 9. (a) This section applies to health provider contracts
	45	+	4 entered into or renewed after June 30, 2024.
	46	+	5 (b) If a party to a health provider contract intends to terminate
	47	+	6 the contractual relationship with another party to the health
	48	+	7 provider contract, the terminating party must provide written
	49	+	8 notice to the other party of the decision to terminate the
	50	+	9 contractual relationship not less than ninety (90) days before the
	51	+	10 health provider contract terminates.
	52	+	11 SECTION 2. IC 27-1-37.1-0.5 IS ADDED TO THE INDIANA
	53	+	12 CODE AS A NEW SECTION TO READ AS FOLLOWS
	54	+	13 [EFFECTIVE JULY 1, 2024]: Sec. 0.5. This chapter does not apply
	55	+	14 to the termination of a health provider contract under
	56	+	15 IC 27-1-37-9.
	57	+	EH 1359—LS 6982/DI 92 2
	58	+	COMMITTEE REPORT
	59	+	Mr. Speaker: Your Committee on Insurance, to which was referred
	60	+	House Bill 1359, has had the same under consideration and begs leave
	61	+	to report the same back to the House with the recommendation that said
	62	+	bill be amended as follows:
	63	+	Page 1, line 5, delete "If" and insert "Except as provided in
	64	+	subsection (d), if".
	65	+	Page 1, between lines 15 and 16, begin a new paragraph and insert:
	66	+	"(d) A party to a health provider contract may terminate a
	67	+	contract after the September 1 deadline set forth in subsection (b)
	68	+	for any of the following reasons:
	69	+	(1) Breach of agreement.
	70	+	(2) Investigations or disciplinary actions related to fraud,
	71	+	waste, or abuse.
	72	+	(3) Changes to billing and reimbursement that have not been
	73	+	negotiated by both parties.
	74	+	(4) Violations of state or federal laws or regulations.".
	75	+	and when so amended that said bill do pass.
	76	+	(Reference is to HB 1359 as introduced.)
	77	+	CARBAUGH
	78	+	Committee Vote: yeas 11, nays 0.
	79	+	_____
	80	+	COMMITTEE REPORT
	81	+	Madam President: The Senate Committee on Insurance and
	82	+	Financial Institutions, to which was referred House Bill No. 1359, has
	83	+	had the same under consideration and begs leave to report the same
	84	+	back to the Senate with the recommendation that said bill be
	85	+	AMENDED as follows:
	86	+	Page 1, delete lines 1 through 17, begin a new paragraph and insert:
	87	+	"SECTION 1. IC 27-1-37-9 IS ADDED TO THE INDIANA CODE
	88	+	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	89	+	1, 2024]: Sec. 9. (a) This section applies to health provider contracts
	90	+	entered into or renewed after June 30, 2024.
	91	+	(b) If a party to a health provider contract intends to terminate
	92	+	the contractual relationship with another party to the health
	93	+	provider contract, the terminating party must provide written
	94	+	EH 1359—LS 6982/DI 92 3
	95	+	notice to the other party of the decision to terminate the
	96	+	contractual relationship not less than ninety (90) days before the
	97	+	health provider contract terminates.".
	98	+	Page 2, delete lines 1 through 7.
	99	+	Renumber all SECTIONS consecutively.
	100	+	and when so amended that said bill do pass.
	101	+	(Reference is to HB 1359 as printed January 25, 2024.)
	102	+	BALDWIN, Chairperson
	103	+	Committee Vote: Yeas 7, Nays 1.
	104	+	EH 1359—LS 6982/DI 92