Indiana 2024 Regular Session

Indiana Senate Bill SB0041 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 41
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 27-4-1-4; IC 27-8-36.
7	7	Synopsis: Coverage for living organ donors. Prohibits an insurer that
8	8	issues a policy of life insurance, disability insurance, or long term care
9	9	insurance from taking certain actions with respect to the coverage of
10	10	individuals who are living organ donors. Specifies that certain actions
11	11	constitute an unfair and deceptive act and practice in the business of
12	12	insurance when taken against a living organ donor by an insurer.
13	13	Effective: July 1, 2024.
14	14	Breaux
15	15	January 8, 2024, read first time and referred to Committee on Insurance and Financial
16	16	Institutions.
17	17	2024 IN 41—LS 6172/DI 104 Introduced
18	18	Second Regular Session of the 123rd General Assembly (2024)
19	19	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
20	20	Constitution) is being amended, the text of the existing provision will appear in this style type,
21	21	additions will appear in this style type, and deletions will appear in this style type.
22	22	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
23	23	provision adopted), the text of the new provision will appear in this style type. Also, the
24	24	word NEW will appear in that style type in the introductory clause of each SECTION that adds
25	25	a new provision to the Indiana Code or the Indiana Constitution.
26	26	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
27	27	between statutes enacted by the 2023 Regular Session of the General Assembly.
28	28	SENATE BILL No. 41
29	29	A BILL FOR AN ACT to amend the Indiana Code concerning
30	30	insurance.
31	31	Be it enacted by the General Assembly of the State of Indiana:
32	32	1 SECTION 1. IC 27-4-1-4, AS AMENDED BY P.L.56-2023,
33	33	2 SECTION 244, IS AMENDED TO READ AS FOLLOWS
34	34	3 [EFFECTIVE JULY 1, 2024]: Sec. 4. (a) The following are hereby
35	35	4 defined as unfair methods of competition and unfair and deceptive acts
36	36	5 and practices in the business of insurance:
37	37	6 (1) Making, issuing, circulating, or causing to be made, issued, or
38	38	7 circulated, any estimate, illustration, circular, or statement:
39	39	8 (A) misrepresenting the terms of any policy issued or to be
40	40	9 issued or the benefits or advantages promised thereby or the
41	41	10 dividends or share of the surplus to be received thereon;
42	42	11 (B) making any false or misleading statement as to the
43	43	12 dividends or share of surplus previously paid on similar
44	44	13 policies;
45	45	14 (C) making any misleading representation or any
46	46	15 misrepresentation as to the financial condition of any insurer,
47	47	16 or as to the legal reserve system upon which any life insurer
48	48	17 operates;
49	49	2024 IN 41—LS 6172/DI 104 2
50	50	1 (D) using any name or title of any policy or class of policies
51	51	2 misrepresenting the true nature thereof; or
52	52	3 (E) making any misrepresentation to any policyholder insured
53	53	4 in any company for the purpose of inducing or tending to
54	54	5 induce such policyholder to lapse, forfeit, or surrender the
55	55	6 policyholder's insurance.
56	56	7 (2) Making, publishing, disseminating, circulating, or placing
57	57	8 before the public, or causing, directly or indirectly, to be made,
58	58	9 published, disseminated, circulated, or placed before the public,
59	59	10 in a newspaper, magazine, or other publication, or in the form of
60	60	11 a notice, circular, pamphlet, letter, or poster, or over any radio or
61	61	12 television station, or in any other way, an advertisement,
62	62	13 announcement, or statement containing any assertion,
63	63	14 representation, or statement with respect to any person in the
64	64	15 conduct of the person's insurance business, which is untrue,
65	65	16 deceptive, or misleading.
66	66	17 (3) Making, publishing, disseminating, or circulating, directly or
67	67	18 indirectly, or aiding, abetting, or encouraging the making,
68	68	19 publishing, disseminating, or circulating of any oral or written
69	69	20 statement or any pamphlet, circular, article, or literature which is
70	70	21 false, or maliciously critical of or derogatory to the financial
71	71	22 condition of an insurer, and which is calculated to injure any
72	72	23 person engaged in the business of insurance.
73	73	24 (4) Entering into any agreement to commit, or individually or by
74	74	25 a concerted action committing any act of boycott, coercion, or
75	75	26 intimidation resulting or tending to result in unreasonable
76	76	27 restraint of, or a monopoly in, the business of insurance.
77	77	28 (5) Filing with any supervisory or other public official, or making,
78	78	29 publishing, disseminating, circulating, or delivering to any person,
79	79	30 or placing before the public, or causing directly or indirectly, to
80	80	31 be made, published, disseminated, circulated, delivered to any
81	81	32 person, or placed before the public, any false statement of
82	82	33 financial condition of an insurer with intent to deceive. Making
83	83	34 any false entry in any book, report, or statement of any insurer
84	84	35 with intent to deceive any agent or examiner lawfully appointed
85	85	36 to examine into its condition or into any of its affairs, or any
86	86	37 public official to which such insurer is required by law to report,
87	87	38 or which has authority by law to examine into its condition or into
88	88	39 any of its affairs, or, with like intent, willfully omitting to make a
89	89	40 true entry of any material fact pertaining to the business of such
90	90	41 insurer in any book, report, or statement of such insurer.
91	91	42 (6) Issuing or delivering or permitting agents, officers, or
92	92	2024 IN 41—LS 6172/DI 104 3
93	93	1 employees to issue or deliver, agency company stock or other
94	94	2 capital stock, or benefit certificates or shares in any common law
95	95	3 corporation, or securities or any special or advisory board
96	96	4 contracts or other contracts of any kind promising returns and
97	97	5 profits as an inducement to insurance.
98	98	6 (7) Making or permitting any of the following:
99	99	7 (A) Unfair discrimination between individuals of the same
100	100	8 class and equal expectation of life in the rates or assessments
101	101	9 charged for any contract of life insurance or of life annuity or
102	102	10 in the dividends or other benefits payable thereon, or in any
103	103	11 other of the terms and conditions of such contract. However,
104	104	12 in determining the class, consideration may be given to the
105	105	13 nature of the risk, plan of insurance, the actual or expected
106	106	14 expense of conducting the business, or any other relevant
107	107	15 factor.
108	108	16 (B) Unfair discrimination between individuals of the same
109	109	17 class involving essentially the same hazards in the amount of
110	110	18 premium, policy fees, assessments, or rates charged or made
111	111	19 for any policy or contract of accident or health insurance or in
112	112	20 the benefits payable thereunder, or in any of the terms or
113	113	21 conditions of such contract, or in any other manner whatever.
114	114	22 However, in determining the class, consideration may be given
115	115	23 to the nature of the risk, the plan of insurance, the actual or
116	116	24 expected expense of conducting the business, or any other
117	117	25 relevant factor.
118	118	26 (C) Excessive or inadequate charges for premiums, policy
119	119	27 fees, assessments, or rates, or making or permitting any unfair
120	120	28 discrimination between persons of the same class involving
121	121	29 essentially the same hazards, in the amount of premiums,
122	122	30 policy fees, assessments, or rates charged or made for:
123	123	31 (i) policies or contracts of reinsurance or joint reinsurance,
124	124	32 or abstract and title insurance;
125	125	33 (ii) policies or contracts of insurance against loss or damage
126	126	34 to aircraft, or against liability arising out of the ownership,
127	127	35 maintenance, or use of any aircraft, or of vessels or craft,
128	128	36 their cargoes, marine builders' risks, marine protection and
129	129	37 indemnity, or other risks commonly insured under marine,
130	130	38 as distinguished from inland marine, insurance; or
131	131	39 (iii) policies or contracts of any other kind or kinds of
132	132	40 insurance whatsoever.
133	133	41 However, nothing contained in clause (C) shall be construed to
134	134	42 apply to any of the kinds of insurance referred to in clauses (A)
135	135	2024 IN 41—LS 6172/DI 104 4
136	136	1 and (B) nor to reinsurance in relation to such kinds of insurance.
137	137	2 Nothing in clause (A), (B), or (C) shall be construed as making or
138	138	3 permitting any excessive, inadequate, or unfairly discriminatory
139	139	4 charge or rate or any charge or rate determined by the department
140	140	5 or commissioner to meet the requirements of any other insurance
141	141	6 rate regulatory law of this state.
142	142	7 (8) Except as otherwise expressly provided by IC 27-1-47 or
143	143	8 another law, knowingly permitting or offering to make or making
144	144	9 any contract or policy of insurance of any kind or kinds
145	145	10 whatsoever, including but not in limitation, life annuities, or
146	146	11 agreement as to such contract or policy other than as plainly
147	147	12 expressed in such contract or policy issued thereon, or paying or
148	148	13 allowing, or giving or offering to pay, allow, or give, directly or
149	149	14 indirectly, as inducement to such insurance, or annuity, any rebate
150	150	15 of premiums payable on the contract, or any special favor or
151	151	16 advantage in the dividends, savings, or other benefits thereon, or
152	152	17 any valuable consideration or inducement whatever not specified
153	153	18 in the contract or policy; or giving, or selling, or purchasing or
154	154	19 offering to give, sell, or purchase as inducement to such insurance
155	155	20 or annuity or in connection therewith, any stocks, bonds, or other
156	156	21 securities of any insurance company or other corporation,
157	157	22 association, limited liability company, or partnership, or any
158	158	23 dividends, savings, or profits accrued thereon, or anything of
159	159	24 value whatsoever not specified in the contract. Nothing in this
160	160	25 subdivision and subdivision (7) shall be construed as including
161	161	26 within the definition of discrimination or rebates any of the
162	162	27 following practices:
163	163	28 (A) Paying bonuses to policyholders or otherwise abating their
164	164	29 premiums in whole or in part out of surplus accumulated from
165	165	30 nonparticipating insurance, so long as any such bonuses or
166	166	31 abatement of premiums are fair and equitable to policyholders
167	167	32 and for the best interests of the company and its policyholders.
168	168	33 (B) In the case of life insurance policies issued on the
169	169	34 industrial debit plan, making allowance to policyholders who
170	170	35 have continuously for a specified period made premium
171	171	36 payments directly to an office of the insurer in an amount
172	172	37 which fairly represents the saving in collection expense.
173	173	38 (C) Readjustment of the rate of premium for a group insurance
174	174	39 policy based on the loss or expense experience thereunder, at
175	175	40 the end of the first year or of any subsequent year of insurance
176	176	41 thereunder, which may be made retroactive only for such
177	177	42 policy year.
178	178	2024 IN 41—LS 6172/DI 104 5
179	179	1 (D) Paying by an insurer or insurance producer thereof duly
180	180	2 licensed as such under the laws of this state of money,
181	181	3 commission, or brokerage, or giving or allowing by an insurer
182	182	4 or such licensed insurance producer thereof anything of value,
183	183	5 for or on account of the solicitation or negotiation of policies
184	184	6 or other contracts of any kind or kinds, to a broker, an
185	185	7 insurance producer, or a solicitor duly licensed under the laws
186	186	8 of this state, but such broker, insurance producer, or solicitor
187	187	9 receiving such consideration shall not pay, give, or allow
188	188	10 credit for such consideration as received in whole or in part,
189	189	11 directly or indirectly, to the insured by way of rebate.
190	190	12 (9) Requiring, as a condition precedent to loaning money upon the
191	191	13 security of a mortgage upon real property, that the owner of the
192	192	14 property to whom the money is to be loaned negotiate any policy
193	193	15 of insurance covering such real property through a particular
194	194	16 insurance producer or broker or brokers. However, this
195	195	17 subdivision shall not prevent the exercise by any lender of the
196	196	18 lender's right to approve or disapprove of the insurance company
197	197	19 selected by the borrower to underwrite the insurance.
198	198	20 (10) Entering into any contract, combination in the form of a trust
199	199	21 or otherwise, or conspiracy in restraint of commerce in the
200	200	22 business of insurance.
201	201	23 (11) Monopolizing or attempting to monopolize or combining or
202	202	24 conspiring with any other person or persons to monopolize any
203	203	25 part of commerce in the business of insurance. However,
204	204	26 participation as a member, director, or officer in the activities of
205	205	27 any nonprofit organization of insurance producers or other
206	206	28 workers in the insurance business shall not be interpreted, in
207	207	29 itself, to constitute a combination in restraint of trade or as
208	208	30 combining to create a monopoly as provided in this subdivision
209	209	31 and subdivision (10). The enumeration in this chapter of specific
210	210	32 unfair methods of competition and unfair or deceptive acts and
211	211	33 practices in the business of insurance is not exclusive or
212	212	34 restrictive or intended to limit the powers of the commissioner or
213	213	35 department or of any court of review under section 8 of this
214	214	36 chapter.
215	215	37 (12) Requiring as a condition precedent to the sale of real or
216	216	38 personal property under any contract of sale, conditional sales
217	217	39 contract, or other similar instrument or upon the security of a
218	218	40 chattel mortgage, that the buyer of such property negotiate any
219	219	41 policy of insurance covering such property through a particular
220	220	42 insurance company, insurance producer, or broker or brokers.
221	221	2024 IN 41—LS 6172/DI 104 6
222	222	1 However, this subdivision shall not prevent the exercise by any
223	223	2 seller of such property or the one making a loan thereon of the
224	224	3 right to approve or disapprove of the insurance company selected
225	225	4 by the buyer to underwrite the insurance.
226	226	5 (13) Issuing, offering, or participating in a plan to issue or offer,
227	227	6 any policy or certificate of insurance of any kind or character as
228	228	7 an inducement to the purchase of any property, real, personal, or
229	229	8 mixed, or services of any kind, where a charge to the insured is
230	230	9 not made for and on account of such policy or certificate of
231	231	10 insurance. However, this subdivision shall not apply to any of the
232	232	11 following:
233	233	12 (A) Insurance issued to credit unions or members of credit
234	234	13 unions in connection with the purchase of shares in such credit
235	235	14 unions.
236	236	15 (B) Insurance employed as a means of guaranteeing the
237	237	16 performance of goods and designed to benefit the purchasers
238	238	17 or users of such goods.
239	239	18 (C) Title insurance.
240	240	19 (D) Insurance written in connection with an indebtedness and
241	241	20 intended as a means of repaying such indebtedness in the
242	242	21 event of the death or disability of the insured.
243	243	22 (E) Insurance provided by or through motorists service clubs
244	244	23 or associations.
245	245	24 (F) Insurance that is provided to the purchaser or holder of an
246	246	25 air transportation ticket and that:
247	247	26 (i) insures against death or nonfatal injury that occurs during
248	248	27 the flight to which the ticket relates;
249	249	28 (ii) insures against personal injury or property damage that
250	250	29 occurs during travel to or from the airport in a common
251	251	30 carrier immediately before or after the flight;
252	252	31 (iii) insures against baggage loss during the flight to which
253	253	32 the ticket relates; or
254	254	33 (iv) insures against a flight cancellation to which the ticket
255	255	34 relates.
256	256	35 (14) Refusing, because of the for-profit status of a hospital or
257	257	36 medical facility, to make payments otherwise required to be made
258	258	37 under a contract or policy of insurance for charges incurred by an
259	259	38 insured in such a for-profit hospital or other for-profit medical
260	260	39 facility licensed by the Indiana department of health.
261	261	40 (15) Refusing to insure an individual, refusing to continue to issue
262	262	41 insurance to an individual, limiting the amount, extent, or kind of
263	263	42 coverage available to an individual, or charging an individual a
264	264	2024 IN 41—LS 6172/DI 104 7
265	265	1 different rate for the same coverage, solely because of that
266	266	2 individual's blindness or partial blindness, except where the
267	267	3 refusal, limitation, or rate differential is based on sound actuarial
268	268	4 principles or is related to actual or reasonably anticipated
269	269	5 experience.
270	270	6 (16) Committing or performing, with such frequency as to
271	271	7 indicate a general practice, unfair claim settlement practices (as
272	272	8 defined in section 4.5 of this chapter).
273	273	9 (17) Between policy renewal dates, unilaterally canceling an
274	274	10 individual's coverage under an individual or group health
275	275	11 insurance policy solely because of the individual's medical or
276	276	12 physical condition.
277	277	13 (18) Using a policy form or rider that would permit a cancellation
278	278	14 of coverage as described in subdivision (17).
279	279	15 (19) Violating IC 27-1-22-25, IC 27-1-22-26, or IC 27-1-22-26.1
280	280	16 concerning motor vehicle insurance rates.
281	281	17 (20) Violating IC 27-8-21-2 concerning advertisements referring
282	282	18 to interest rate guarantees.
283	283	19 (21) Violating IC 27-8-24.3 concerning insurance and health plan
284	284	20 coverage for victims of abuse.
285	285	21 (22) Violating IC 27-8-26 concerning genetic screening or testing.
286	286	22 (23) Violating IC 27-1-15.6-3(b) concerning licensure of
287	287	23 insurance producers.
288	288	24 (24) Violating IC 27-1-38 concerning depository institutions.
289	289	25 (25) Violating IC 27-8-28-17(c) or IC 27-13-10-8(c) concerning
290	290	26 the resolution of an appealed grievance decision.
291	291	27 (26) Violating IC 27-8-5-2.5(e) through IC 27-8-5-2.5(j) (expired
292	292	28 July 1, 2007, and removed) or IC 27-8-5-19.2 (expired July 1,
293	293	29 2007, and repealed).
294	294	30 (27) Violating IC 27-2-21 concerning use of credit information.
295	295	31 (28) Violating IC 27-4-9-3 concerning recommendations to
296	296	32 consumers.
297	297	33 (29) Engaging in dishonest or predatory insurance practices in
298	298	34 marketing or sales of insurance to members of the United States
299	299	35 Armed Forces as:
300	300	36 (A) described in the federal Military Personnel Financial
301	301	37 Services Protection Act, P.L.109-290; or
302	302	38 (B) defined in rules adopted under subsection (b).
303	303	39 (30) Violating IC 27-8-19.8-20.1 concerning stranger originated
304	304	40 life insurance.
305	305	41 (31) Violating IC 27-2-22 concerning retained asset accounts.
306	306	42 (32) Violating IC 27-8-5-29 concerning health plans offered
307	307	2024 IN 41—LS 6172/DI 104 8
308	308	1 through a health benefit exchange (as defined in IC 27-19-2-8).
309	309	2 (33) Violating a requirement of the federal Patient Protection and
310	310	3 Affordable Care Act (P.L. 111-148), as amended by the federal
311	311	4 Health Care and Education Reconciliation Act of 2010 (P.L.
312	312	5 111-152), that is enforceable by the state.
313	313	6 (34) After June 30, 2015, violating IC 27-2-23 concerning
314	314	7 unclaimed life insurance, annuity, or retained asset account
315	315	8 benefits.
316	316	9 (35) Willfully violating IC 27-1-12-46 concerning a life insurance
317	317	10 policy or certificate described in IC 27-1-12-46(a).
318	318	11 (36) Violating IC 27-1-37-7 concerning prohibiting the disclosure
319	319	12 of health care service claims data.
320	320	13 (37) Violating IC 27-4-10-10 concerning virtual claims payments.
321	321	14 (38) Violating IC 27-1-24.5 concerning pharmacy benefit
322	322	15 managers.
323	323	16 (39) Violating IC 27-7-17-16 or IC 27-7-17-17 concerning the
324	324	17 marketing of travel insurance policies.
325	325	18 (40) Violating IC 27-8-36-6 concerning living organ donor
326	326	19 insurance coverage and organ donation.
327	327	20 (b) Except with respect to federal insurance programs under
328	328	21 Subchapter III of Chapter 19 of Title 38 of the United States Code, the
329	329	22 commissioner may, consistent with the federal Military Personnel
330	330	23 Financial Services Protection Act (10 U.S.C. 992 note), adopt rules
331	331	24 under IC 4-22-2 to:
332	332	25 (1) define; and
333	333	26 (2) while the members are on a United States military installation
334	334	27 or elsewhere in Indiana, protect members of the United States
335	335	28 Armed Forces from;
336	336	29 dishonest or predatory insurance practices.
337	337	30 SECTION 2. IC 27-8-36 IS ADDED TO THE INDIANA CODE AS
338	338	31 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
339	339	32 1, 2024]:
340	340	33 Chapter 36. Coverage for Living Organ Donors
341	341	34 Sec. 1. As used in this chapter, "individual" means a natural
342	342	35 person.
343	343	36 Sec. 2. As used in this chapter, "insurance policy" means:
344	344	37 (1) a policy of life insurance or disability insurance described
345	345	38 in Class 1 of IC 27-1-5-1; and
346	346	39 (2) a long term care insurance policy (as defined in
347	347	40 IC 27-8-12-5).
348	348	41 Sec. 3. As used in this chapter, "insurer" means an insurance
349	349	42 company that issues an insurance policy.
350	350	2024 IN 41—LS 6172/DI 104 9
351	351	1 Sec. 4. As used in this chapter, "living organ donor" means an
352	352	2 individual who:
353	353	3 (1) intends to donate; or
354	354	4 (2) has donated;
355	355	5 all or part of an organ and is not deceased.
356	356	6 Sec. 5. An insurer may not do any of the following:
357	357	7 (1) Decline or limit coverage of an individual under an
358	358	8 insurance policy solely because the individual is a living organ
359	359	9 donor.
360	360	10 (2) Preclude an insured individual from donating all or part
361	361	11 of an organ as a condition of receiving or continuing to
362	362	12 receive an insurance policy.
363	363	13 (3) Discriminate in the offering, issuance, cancellation,
364	364	14 amount of coverage, price, or any other condition of an
365	365	15 insurance policy for an individual based solely, and without
366	366	16 any additional actuarial risks, upon the status of the
367	367	17 individual as a living organ donor.
368	368	18 Sec. 6. An insurer who violates this chapter commits an unfair
369	369	19 and deceptive act and practice in the business of insurance under
370	370	20 IC 27-4-1-4.
371	371	2024 IN 41—LS 6172/DI 104