Indiana 2025 Regular Session

Indiana House Bill HB1082 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1082
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, 2025.
14	14	Mayfield, Abbott
15	15	January 8, 2025, read first time and referred to Committee on Insurance.
16	16	2025 IN 1082—LS 6481/DI 154 Introduced
17	17	First Regular Session of the 124th General Assembly (2025)
18	18	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
19	19	Constitution) is being amended, the text of the existing provision will appear in this style type,
20	20	additions will appear in this style type, and deletions will appear in this style type.
21	21	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
22	22	provision adopted), the text of the new provision will appear in this style type. Also, the
23	23	word NEW will appear in that style type in the introductory clause of each SECTION that adds
24	24	a new provision to the Indiana Code or the Indiana Constitution.
25	25	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
26	26	between statutes enacted by the 2024 Regular Session of the General Assembly.
27	27	HOUSE BILL No. 1082
28	28	A BILL FOR AN ACT to amend the Indiana Code concerning
29	29	insurance.
30	30	Be it enacted by the General Assembly of the State of Indiana:
31	31	1 SECTION 1. IC 27-4-1-4, AS AMENDED BY P.L.158-2024,
32	32	2 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
33	33	3 JULY 1, 2025]: Sec. 4. (a) The following are hereby defined as unfair
34	34	4 methods of competition and unfair and deceptive acts and practices in
35	35	5 the business of insurance:
36	36	6 (1) Making, issuing, circulating, or causing to be made, issued, or
37	37	7 circulated, any estimate, illustration, circular, or statement:
38	38	8 (A) misrepresenting the terms of any policy issued or to be
39	39	9 issued or the benefits or advantages promised thereby or the
40	40	10 dividends or share of the surplus to be received thereon;
41	41	11 (B) making any false or misleading statement as to the
42	42	12 dividends or share of surplus previously paid on similar
43	43	13 policies;
44	44	14 (C) making any misleading representation or any
45	45	15 misrepresentation as to the financial condition of any insurer,
46	46	16 or as to the legal reserve system upon which any life insurer
47	47	17 operates;
48	48	2025 IN 1082—LS 6481/DI 154 2
49	49	1 (D) using any name or title of any policy or class of policies
50	50	2 misrepresenting the true nature thereof; or
51	51	3 (E) making any misrepresentation to any policyholder insured
52	52	4 in any company for the purpose of inducing or tending to
53	53	5 induce such policyholder to lapse, forfeit, or surrender the
54	54	6 policyholder's insurance.
55	55	7 (2) Making, publishing, disseminating, circulating, or placing
56	56	8 before the public, or causing, directly or indirectly, to be made,
57	57	9 published, disseminated, circulated, or placed before the public,
58	58	10 in a newspaper, magazine, or other publication, or in the form of
59	59	11 a notice, circular, pamphlet, letter, or poster, or over any radio or
60	60	12 television station, or in any other way, an advertisement,
61	61	13 announcement, or statement containing any assertion,
62	62	14 representation, or statement with respect to any person in the
63	63	15 conduct of the person's insurance business, which is untrue,
64	64	16 deceptive, or misleading.
65	65	17 (3) Making, publishing, disseminating, or circulating, directly or
66	66	18 indirectly, or aiding, abetting, or encouraging the making,
67	67	19 publishing, disseminating, or circulating of any oral or written
68	68	20 statement or any pamphlet, circular, article, or literature which is
69	69	21 false, or maliciously critical of or derogatory to the financial
70	70	22 condition of an insurer, and which is calculated to injure any
71	71	23 person engaged in the business of insurance.
72	72	24 (4) Entering into any agreement to commit, or individually or by
73	73	25 a concerted action committing any act of boycott, coercion, or
74	74	26 intimidation resulting or tending to result in unreasonable
75	75	27 restraint of, or a monopoly in, the business of insurance.
76	76	28 (5) Filing with any supervisory or other public official, or making,
77	77	29 publishing, disseminating, circulating, or delivering to any person,
78	78	30 or placing before the public, or causing directly or indirectly, to
79	79	31 be made, published, disseminated, circulated, delivered to any
80	80	32 person, or placed before the public, any false statement of
81	81	33 financial condition of an insurer with intent to deceive. Making
82	82	34 any false entry in any book, report, or statement of any insurer
83	83	35 with intent to deceive any agent or examiner lawfully appointed
84	84	36 to examine into its condition or into any of its affairs, or any
85	85	37 public official to which such insurer is required by law to report,
86	86	38 or which has authority by law to examine into its condition or into
87	87	39 any of its affairs, or, with like intent, willfully omitting to make a
88	88	40 true entry of any material fact pertaining to the business of such
89	89	41 insurer in any book, report, or statement of such insurer.
90	90	42 (6) Issuing or delivering or permitting agents, officers, or
91	91	2025 IN 1082—LS 6481/DI 154 3
92	92	1 employees to issue or deliver, agency company stock or other
93	93	2 capital stock, or benefit certificates or shares in any common law
94	94	3 corporation, or securities or any special or advisory board
95	95	4 contracts or other contracts of any kind promising returns and
96	96	5 profits as an inducement to insurance.
97	97	6 (7) Making or permitting any of the following:
98	98	7 (A) Unfair discrimination between individuals of the same
99	99	8 class and equal expectation of life in the rates or assessments
100	100	9 charged for any contract of life insurance or of life annuity or
101	101	10 in the dividends or other benefits payable thereon, or in any
102	102	11 other of the terms and conditions of such contract. However,
103	103	12 in determining the class, consideration may be given to the
104	104	13 nature of the risk, plan of insurance, the actual or expected
105	105	14 expense of conducting the business, or any other relevant
106	106	15 factor.
107	107	16 (B) Unfair discrimination between individuals of the same
108	108	17 class involving essentially the same hazards in the amount of
109	109	18 premium, policy fees, assessments, or rates charged or made
110	110	19 for any policy or contract of accident or health insurance or in
111	111	20 the benefits payable thereunder, or in any of the terms or
112	112	21 conditions of such contract, or in any other manner whatever.
113	113	22 However, in determining the class, consideration may be given
114	114	23 to the nature of the risk, the plan of insurance, the actual or
115	115	24 expected expense of conducting the business, or any other
116	116	25 relevant factor.
117	117	26 (C) Excessive or inadequate charges for premiums, policy
118	118	27 fees, assessments, or rates, or making or permitting any unfair
119	119	28 discrimination between persons of the same class involving
120	120	29 essentially the same hazards, in the amount of premiums,
121	121	30 policy fees, assessments, or rates charged or made for:
122	122	31 (i) policies or contracts of reinsurance or joint reinsurance,
123	123	32 or abstract and title insurance;
124	124	33 (ii) policies or contracts of insurance against loss or damage
125	125	34 to aircraft, or against liability arising out of the ownership,
126	126	35 maintenance, or use of any aircraft, or of vessels or craft,
127	127	36 their cargoes, marine builders' risks, marine protection and
128	128	37 indemnity, or other risks commonly insured under marine,
129	129	38 as distinguished from inland marine, insurance; or
130	130	39 (iii) policies or contracts of any other kind or kinds of
131	131	40 insurance whatsoever.
132	132	41 However, nothing contained in clause (C) shall be construed to
133	133	42 apply to any of the kinds of insurance referred to in clauses (A)
134	134	2025 IN 1082—LS 6481/DI 154 4
135	135	1 and (B) nor to reinsurance in relation to such kinds of insurance.
136	136	2 Nothing in clause (A), (B), or (C) shall be construed as making or
137	137	3 permitting any excessive, inadequate, or unfairly discriminatory
138	138	4 charge or rate or any charge or rate determined by the department
139	139	5 or commissioner to meet the requirements of any other insurance
140	140	6 rate regulatory law of this state.
141	141	7 (8) Except as otherwise expressly provided by IC 27-1-47 or
142	142	8 another law, knowingly permitting or offering to make or making
143	143	9 any contract or policy of insurance of any kind or kinds
144	144	10 whatsoever, including but not in limitation, life annuities, or
145	145	11 agreement as to such contract or policy other than as plainly
146	146	12 expressed in such contract or policy issued thereon, or paying or
147	147	13 allowing, or giving or offering to pay, allow, or give, directly or
148	148	14 indirectly, as inducement to such insurance, or annuity, any rebate
149	149	15 of premiums payable on the contract, or any special favor or
150	150	16 advantage in the dividends, savings, or other benefits thereon, or
151	151	17 any valuable consideration or inducement whatever not specified
152	152	18 in the contract or policy; or giving, or selling, or purchasing or
153	153	19 offering to give, sell, or purchase as inducement to such insurance
154	154	20 or annuity or in connection therewith, any stocks, bonds, or other
155	155	21 securities of any insurance company or other corporation,
156	156	22 association, limited liability company, or partnership, or any
157	157	23 dividends, savings, or profits accrued thereon, or anything of
158	158	24 value whatsoever not specified in the contract. Nothing in this
159	159	25 subdivision and subdivision (7) shall be construed as including
160	160	26 within the definition of discrimination or rebates any of the
161	161	27 following practices:
162	162	28 (A) Paying bonuses to policyholders or otherwise abating their
163	163	29 premiums in whole or in part out of surplus accumulated from
164	164	30 nonparticipating insurance, so long as any such bonuses or
165	165	31 abatement of premiums are fair and equitable to policyholders
166	166	32 and for the best interests of the company and its policyholders.
167	167	33 (B) In the case of life insurance policies issued on the
168	168	34 industrial debit plan, making allowance to policyholders who
169	169	35 have continuously for a specified period made premium
170	170	36 payments directly to an office of the insurer in an amount
171	171	37 which fairly represents the saving in collection expense.
172	172	38 (C) Readjustment of the rate of premium for a group insurance
173	173	39 policy based on the loss or expense experience thereunder, at
174	174	40 the end of the first year or of any subsequent year of insurance
175	175	41 thereunder, which may be made retroactive only for such
176	176	42 policy year.
177	177	2025 IN 1082—LS 6481/DI 154 5
178	178	1 (D) Paying by an insurer or insurance producer thereof duly
179	179	2 licensed as such under the laws of this state of money,
180	180	3 commission, or brokerage, or giving or allowing by an insurer
181	181	4 or such licensed insurance producer thereof anything of value,
182	182	5 for or on account of the solicitation or negotiation of policies
183	183	6 or other contracts of any kind or kinds, to a broker, an
184	184	7 insurance producer, or a solicitor duly licensed under the laws
185	185	8 of this state, but such broker, insurance producer, or solicitor
186	186	9 receiving such consideration shall not pay, give, or allow
187	187	10 credit for such consideration as received in whole or in part,
188	188	11 directly or indirectly, to the insured by way of rebate.
189	189	12 (9) Requiring, as a condition precedent to loaning money upon the
190	190	13 security of a mortgage upon real property, that the owner of the
191	191	14 property to whom the money is to be loaned negotiate any policy
192	192	15 of insurance covering such real property through a particular
193	193	16 insurance producer or broker or brokers. However, this
194	194	17 subdivision shall not prevent the exercise by any lender of the
195	195	18 lender's right to approve or disapprove of the insurance company
196	196	19 selected by the borrower to underwrite the insurance.
197	197	20 (10) Entering into any contract, combination in the form of a trust
198	198	21 or otherwise, or conspiracy in restraint of commerce in the
199	199	22 business of insurance.
200	200	23 (11) Monopolizing or attempting to monopolize or combining or
201	201	24 conspiring with any other person or persons to monopolize any
202	202	25 part of commerce in the business of insurance. However,
203	203	26 participation as a member, director, or officer in the activities of
204	204	27 any nonprofit organization of insurance producers or other
205	205	28 workers in the insurance business shall not be interpreted, in
206	206	29 itself, to constitute a combination in restraint of trade or as
207	207	30 combining to create a monopoly as provided in this subdivision
208	208	31 and subdivision (10). The enumeration in this chapter of specific
209	209	32 unfair methods of competition and unfair or deceptive acts and
210	210	33 practices in the business of insurance is not exclusive or
211	211	34 restrictive or intended to limit the powers of the commissioner or
212	212	35 department or of any court of review under section 8 of this
213	213	36 chapter.
214	214	37 (12) Requiring as a condition precedent to the sale of real or
215	215	38 personal property under any contract of sale, conditional sales
216	216	39 contract, or other similar instrument or upon the security of a
217	217	40 chattel mortgage, that the buyer of such property negotiate any
218	218	41 policy of insurance covering such property through a particular
219	219	42 insurance company, insurance producer, or broker or brokers.
220	220	2025 IN 1082—LS 6481/DI 154 6
221	221	1 However, this subdivision shall not prevent the exercise by any
222	222	2 seller of such property or the one making a loan thereon of the
223	223	3 right to approve or disapprove of the insurance company selected
224	224	4 by the buyer to underwrite the insurance.
225	225	5 (13) Issuing, offering, or participating in a plan to issue or offer,
226	226	6 any policy or certificate of insurance of any kind or character as
227	227	7 an inducement to the purchase of any property, real, personal, or
228	228	8 mixed, or services of any kind, where a charge to the insured is
229	229	9 not made for and on account of such policy or certificate of
230	230	10 insurance. However, this subdivision shall not apply to any of the
231	231	11 following:
232	232	12 (A) Insurance issued to credit unions or members of credit
233	233	13 unions in connection with the purchase of shares in such credit
234	234	14 unions.
235	235	15 (B) Insurance employed as a means of guaranteeing the
236	236	16 performance of goods and designed to benefit the purchasers
237	237	17 or users of such goods.
238	238	18 (C) Title insurance.
239	239	19 (D) Insurance written in connection with an indebtedness and
240	240	20 intended as a means of repaying such indebtedness in the
241	241	21 event of the death or disability of the insured.
242	242	22 (E) Insurance provided by or through motorists service clubs
243	243	23 or associations.
244	244	24 (F) Insurance that is provided to the purchaser or holder of an
245	245	25 air transportation ticket and that:
246	246	26 (i) insures against death or nonfatal injury that occurs during
247	247	27 the flight to which the ticket relates;
248	248	28 (ii) insures against personal injury or property damage that
249	249	29 occurs during travel to or from the airport in a common
250	250	30 carrier immediately before or after the flight;
251	251	31 (iii) insures against baggage loss during the flight to which
252	252	32 the ticket relates; or
253	253	33 (iv) insures against a flight cancellation to which the ticket
254	254	34 relates.
255	255	35 (14) Refusing, because of the for-profit status of a hospital or
256	256	36 medical facility, to make payments otherwise required to be made
257	257	37 under a contract or policy of insurance for charges incurred by an
258	258	38 insured in such a for-profit hospital or other for-profit medical
259	259	39 facility licensed by the Indiana department of health.
260	260	40 (15) Refusing to insure an individual, refusing to continue to issue
261	261	41 insurance to an individual, limiting the amount, extent, or kind of
262	262	42 coverage available to an individual, or charging an individual a
263	263	2025 IN 1082—LS 6481/DI 154 7
264	264	1 different rate for the same coverage, solely because of that
265	265	2 individual's blindness or partial blindness, except where the
266	266	3 refusal, limitation, or rate differential is based on sound actuarial
267	267	4 principles or is related to actual or reasonably anticipated
268	268	5 experience.
269	269	6 (16) Committing or performing, with such frequency as to
270	270	7 indicate a general practice, unfair claim settlement practices (as
271	271	8 defined in section 4.5 of this chapter).
272	272	9 (17) Between policy renewal dates, unilaterally canceling an
273	273	10 individual's coverage under an individual or group health
274	274	11 insurance policy solely because of the individual's medical or
275	275	12 physical condition.
276	276	13 (18) Using a policy form or rider that would permit a cancellation
277	277	14 of coverage as described in subdivision (17).
278	278	15 (19) Violating IC 27-1-22-25, IC 27-1-22-26, or IC 27-1-22-26.1
279	279	16 concerning motor vehicle insurance rates.
280	280	17 (20) Violating IC 27-8-21-2 concerning advertisements referring
281	281	18 to interest rate guarantees.
282	282	19 (21) Violating IC 27-8-24.3 concerning insurance and health plan
283	283	20 coverage for victims of abuse.
284	284	21 (22) Violating IC 27-8-26 concerning genetic screening or testing.
285	285	22 (23) Violating IC 27-1-15.6-3(b) concerning licensure of
286	286	23 insurance producers.
287	287	24 (24) Violating IC 27-1-38 concerning depository institutions.
288	288	25 (25) Violating IC 27-8-28-17(c) or IC 27-13-10-8(c) concerning
289	289	26 the resolution of an appealed grievance decision.
290	290	27 (26) Violating IC 27-8-5-2.5(e) through IC 27-8-5-2.5(j) (expired
291	291	28 July 1, 2007, and removed) or IC 27-8-5-19.2 (expired July 1,
292	292	29 2007, and repealed).
293	293	30 (27) Violating IC 27-2-21 concerning use of credit information.
294	294	31 (28) Violating IC 27-4-9-3 concerning recommendations to
295	295	32 consumers.
296	296	33 (29) Engaging in dishonest or predatory insurance practices in
297	297	34 marketing or sales of insurance to members of the United States
298	298	35 Armed Forces as:
299	299	36 (A) described in the federal Military Personnel Financial
300	300	37 Services Protection Act, P.L.109-290; or
301	301	38 (B) defined in rules adopted under subsection (b).
302	302	39 (30) Violating IC 27-8-19.8-20.1 concerning stranger originated
303	303	40 life insurance.
304	304	41 (31) Violating IC 27-2-22 concerning retained asset accounts.
305	305	42 (32) Violating IC 27-8-5-29 concerning health plans offered
306	306	2025 IN 1082—LS 6481/DI 154 8
307	307	1 through a health benefit exchange (as defined in IC 27-19-2-8).
308	308	2 (33) Violating a requirement of the federal Patient Protection and
309	309	3 Affordable Care Act (P.L. 111-148), as amended by the federal
310	310	4 Health Care and Education Reconciliation Act of 2010 (P.L.
311	311	5 111-152), that is enforceable by the state.
312	312	6 (34) After June 30, 2015, violating IC 27-2-23 concerning
313	313	7 unclaimed life insurance, annuity, or retained asset account
314	314	8 benefits.
315	315	9 (35) Willfully violating IC 27-1-12-46 concerning a life insurance
316	316	10 policy or certificate described in IC 27-1-12-46(a).
317	317	11 (36) Violating IC 27-1-37-7 concerning prohibiting the disclosure
318	318	12 of health care service claims data.
319	319	13 (37) Violating IC 27-4-10-10 concerning virtual claims payments.
320	320	14 (38) Violating IC 27-1-24.5 concerning pharmacy benefit
321	321	15 managers.
322	322	16 (39) Violating IC 27-7-17-16 or IC 27-7-17-17 concerning the
323	323	17 marketing of travel insurance policies.
324	324	18 (40) Violating IC 27-1-49 concerning individual prescription drug
325	325	19 rebates.
326	326	20 (41) Violating IC 27-1-50 concerning group prescription drug
327	327	21 rebates.
328	328	22 (42) Violating IC 27-8-36 concerning living organ donor
329	329	23 insurance coverage and organ donation.
330	330	24 (b) Except with respect to federal insurance programs under
331	331	25 Subchapter III of Chapter 19 of Title 38 of the United States Code, the
332	332	26 commissioner may, consistent with the federal Military Personnel
333	333	27 Financial Services Protection Act (10 U.S.C. 992 note), adopt rules
334	334	28 under IC 4-22-2 to:
335	335	29 (1) define; and
336	336	30 (2) while the members are on a United States military installation
337	337	31 or elsewhere in Indiana, protect members of the United States
338	338	32 Armed Forces from;
339	339	33 dishonest or predatory insurance practices.
340	340	34 SECTION 2. IC 27-8-36 IS ADDED TO THE INDIANA CODE AS
341	341	35 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
342	342	36 1, 2025]:
343	343	37 Chapter 36. Coverage for Living Organ Donors
344	344	38 Sec. 1. As used in this chapter, "individual" means a natural
345	345	39 person.
346	346	40 Sec. 2. As used in this chapter, "insurance policy" means:
347	347	41 (1) a policy of life insurance or disability insurance described
348	348	42 in Class 1 of IC 27-1-5-1; and
349	349	2025 IN 1082—LS 6481/DI 154 9
350	350	1 (2) a long term care insurance policy (as defined in
351	351	2 IC 27-8-12-5).
352	352	3 Sec. 3. As used in this chapter, "insurer" means an insurance
353	353	4 company that issues an insurance policy.
354	354	5 Sec. 4. As used in this chapter, "living organ donor" means an
355	355	6 individual who:
356	356	7 (1) intends to donate; or
357	357	8 (2) has donated;
358	358	9 all or part of an organ and is not deceased.
359	359	10 Sec. 5. An insurer may not do any of the following:
360	360	11 (1) Decline or limit coverage of an individual under an
361	361	12 insurance policy solely because the individual is a living organ
362	362	13 donor.
363	363	14 (2) Preclude an insured individual from donating all or part
364	364	15 of an organ as a condition of receiving or continuing to
365	365	16 receive an insurance policy.
366	366	17 (3) Discriminate in the offering, issuance, cancellation,
367	367	18 amount of coverage, price, or any other condition of an
368	368	19 insurance policy for an individual based solely, and without
369	369	20 any additional actuarial risks, upon the status of the
370	370	21 individual as a living organ donor.
371	371	22 Sec. 6. An insurer who violates this chapter commits an unfair
372	372	23 and deceptive act and practice in the business of insurance under
373	373	24 IC 27-4-1-4.
374	374	2025 IN 1082—LS 6481/DI 154