IN
Indiana House Bill HB1213

Indiana 2025 Regular Session

Indiana House Bill HB1213 Compare Versions

OldNewDifferences
1+*EH1213.1*
2+March 7, 2025
3+ENGROSSED
4+HOUSE BILL No. 1213
5+_____
6+DIGEST OF HB 1213 (Updated March 5, 2025 9:17 am - DI 140)
7+Citations Affected: IC 27-1; IC 32-17.
8+Synopsis: Insurance and transfer on death deeds. Removes language
9+regarding coverage under a casualty insurance policy or liability
10+insurance policy on property transferred by a transfer on death deed.
11+Specifies that a provision regarding insurance coverage on property
12+transferred by a transfer on death deed does not apply to a commercial
13+lines property insurance policy. Makes corresponding changes.
14+Effective: July 1, 2025.
15+Lehman, Carbaugh, Shackleford
16+(SENATE SPONSOR — BALDWIN)
17+January 8, 2025, read first time and referred to Committee on Insurance.
18+February 4, 2025, amended, reported — Do Pass.
19+February 6, 2025, read second time, ordered engrossed.
20+February 7, 2025, engrossed.
21+February 10, 2025, read third time, passed. Yeas 90, nays 0.
22+SENATE ACTION
23+February 20, 2025, read first time and referred to Committee on Insurance and Financial
24+Institutions.
25+March 6, 2025, reported favorably — Do Pass.
26+EH 1213—LS 7156/DI 141 March 7, 2025
127 First Regular Session of the 124th General Assembly (2025)
228 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
329 Constitution) is being amended, the text of the existing provision will appear in this style type,
430 additions will appear in this style type, and deletions will appear in this style type.
531 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
632 provision adopted), the text of the new provision will appear in this style type. Also, the
733 word NEW will appear in that style type in the introductory clause of each SECTION that adds
834 a new provision to the Indiana Code or the Indiana Constitution.
935 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
1036 between statutes enacted by the 2024 Regular Session of the General Assembly.
11-HOUSE ENROLLED ACT No. 1213
12-AN ACT to amend the Indiana Code concerning property.
37+ENGROSSED
38+HOUSE BILL No. 1213
39+A BILL FOR AN ACT to amend the Indiana Code concerning
40+property.
1341 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. IC 27-1-13-18, AS AMENDED BY P.L.161-2024,
15-SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16-JULY 1, 2025]: Sec. 18. (a) This section applies to a loss or damages
17-incurred after June 30, 2025, for a policy of insurance that is described
18-in:
19-(1) Class 3 3(a) of IC 27-1-5-1; or
20-(2) Class 2 2(h) of IC 27-1-5-1. except for a policy of insurance
21-that is described in Class 2(j) of IC 27-1-5-1.
22-However, this section does not apply to a commercial lines
23-property insurance policy.
24-(b) This section applies regardless of whether the policy of
25-insurance was created before, on, or after July 1, 2025, unless the
26-application of this section to the policy of insurance would:
27-(1) for a policy issued before July 1, 2025, give a right to a
28-beneficiary that the beneficiary was not reasonably intended to
29-have, other than the beneficiary's right to insurance coverage until
30-the time limitation described in subsection (e); or
31-(2) for a policy issued at any time, relieve a beneficiary from a
32-duty or liability imposed on the insured by the terms of the policy.
33-(c) The following definitions apply throughout this section:
34-(1) "Beneficiary" has the meaning set forth in IC 32-17-14-3(1).
35-(2) "Insurable interest" means an insured's interest in real or
36-HEA 1213 2
37-personal property, concerning which the insured is entitled to the
38-benefits of insurance coverage under a property and casualty
39-insurance policy or liability insurance policy.
40-(3) "Insured" means a person who is entitled to the benefits of
41-insurance coverage under a property and casualty insurance
42-policy or liability insurance policy.
43-(4) "Named insured" means a person identified by name as an
44-insured under a property and casualty insurance policy or liability
45-insurance policy.
46-(5) "Property and casualty insurance policy or liability insurance
47-policy" means a policy of insurance that is described in Class 2
48-2(h) or Class 3 3(a) of IC 27-1-5-1. The term does not include
49-a commercial lines property insurance policy.
50-(6) "Transfer" means an ownership change in a named insured's
51-insurable interest in real or personal property to a beneficiary of
52-a transfer on death transfer deed that occurs as a consequence of
53-the named insured's death.
54-(7) "Transferee" means a person who has acquired or received a
55-named insured's insurable interest in real or personal property
56-through a transfer.
57-(8) "Transfer on death transfer" deed" has the meaning set forth
58-in IC 32-17-14-3(17). IC 32-17-14-3(16).
59-(d) Subject to subsection (e), each transferee of a named insured's
60-insurable interest in real or personal property is also an insured to the
61-extent of the named insured's insurable interest in real or personal
62-property that the transferee has acquired or received through a transfer.
63-(e) Except as provided in subsections (f) and (g) and IC 32-38-3-1,
64-for a period of sixty (60) days immediately following the death of the
65-insured, each transferee is an insured under a property and casualty
66-insurance policy or liability insurance policy insuring the real or
67-personal property the transferee acquired or received through a
68-transfer. At the time of the insured's death, the transferee succeeds to
69-the rights and obligations of the insured under the property and
70-casualty insurance policy or liability insurance policy, to the extent of
71-the insured's insurable interest in real or personal property that the
72-transferee has acquired or received through a transfer, for the sixty (60)
73-day period.
74-(f) If a property and casualty insurance policy or liability insurance
75-policy has a policy expiration date that is less than sixty (60) days after
76-the death of the insured, insurance coverage continues for either:
77-(1) thirty (30) days; or
78-(2) the policy expiration date;
79-HEA 1213 3
80-whichever is later.
81-(g) If a transferee obtains a property and casualty insurance policy
82-or liability insurance policy insuring the real or personal property the
83-transferee acquired or received through a transfer, the transferee is not
84-an insured on the insurance policy described in subsection (e) once the
85-transferee's property and casualty insurance policy or liability insurance
86-policy becomes effective.
87-SECTION 2. IC 32-17-14-11, AS AMENDED BY P.L.99-2024,
88-SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
89-JULY 1, 2025]: Sec. 11. (a) A transfer on death deed transfers the
90-interest provided to the beneficiary if the transfer on death deed is:
91-(1) executed by the owner or owner's legal representative; and
92-(2) recorded with the recorder of deeds in the county in which the
93-real property is situated before the death of the owner.
94-(b) A transfer on death deed is void if it is not recorded with the
95-recorder of deeds in the county in which the real property is situated
96-before the death of the owner.
97-(c) A transfer on death deed is not required to be supported by
98-consideration or delivered to the grantee beneficiary.
99-(d) A transfer on death deed may be used to transfer an interest in
100-real property to either a revocable or an irrevocable trust.
101-(e) If the owner records a transfer on death deed, the effect of the
102-recording the transfer on death deed is determined as follows:
103-(1) If the owner's interest in the real property is as a tenant by the
104-entirety, the conveyance is inoperable and void unless the other
105-spouse joins in the conveyance.
106-(2) If the owner's interest in the real property is as a joint tenant
107-with rights of survivorship, the conveyance severs the joint
108-tenancy and the cotenancy becomes a tenancy in common.
109-(3) If the owner's interest in the real property is as a joint tenant
110-with rights of survivorship and the property is subject to a
111-beneficiary designation, a conveyance of any joint owner's interest
112-has no effect on the original beneficiary designation for the
113-nonsevering joint tenant.
114-(4) If the owner's interest is as a tenant in common, the owner's
115-interest passes to the beneficiary as a transfer on death transfer.
116-(5) If the owner's interest is a life estate determined by the owner's
117-life, the conveyance is inoperable and void.
118-(6) If the owner's interest is any other interest, the interest passes
119-in accordance with this chapter and the terms and conditions of
120-the conveyance establishing the interest. If a conflict exists
121-between the conveyance establishing the interest and this chapter,
122-HEA 1213 4
123-the terms and conditions of the conveyance establishing the
124-interest prevail.
125-(f) A beneficiary designation in a transfer on death deed may be
126-worded in substance as "(insert owner's name) conveys and warrants
127-(or quitclaims) to (insert owner's name), TOD to (insert beneficiary's
128-name)". This example is not intended to be exhaustive.
129-(g) A transfer on death deed using the phrase "pay on death to" or
130-the abbreviation "POD" may not be construed to require the liquidation
131-of the real property being transferred.
132-(h) This section does not preclude other methods of conveying real
133-property that are permitted by law and have the effect of postponing
134-enjoyment of an interest in real property until after the death of the
135-owner. This section applies only to transfer on death deeds and does
136-not invalidate any deed that is otherwise effective by law to convey title
137-to the interest and estates provided in the deed.
138-(i) The endorsement of the county auditor under IC 36-2-11-14 and
139-IC 36-2-9-18 is necessary to record a transfer on death deed under this
140-section.
141-(j) For a transfer on death deed executed after December 31, 2024,
142-June 30, 2025, the transfer on death deed may include the following
143-warning:
144-"WARNING: After the death of the owner, the owner's insurance
145-policy is required by IC 27-1-13-18 to cover the real property
146-transferred for a period of time as set forth in IC 27-1-13-18(e)
147-and IC 27-1-13-18(f). Once the period of time as set forth in
148-IC 27-1-13-18(e) and IC 27-1-13-18(f) expires, the insurance
149-policy may no longer cover the real property and the beneficiary
150-of a transfer on death deed and the real property may become
151-uninsured.".
152-A transfer on death deed is not invalid due to the failure to include the
153-warning described in this subsection, or due to a defect in the wording
154-of the warning described in this subsection.
155-HEA 1213 Speaker of the House of Representatives
156-President of the Senate
157-President Pro Tempore
158-Governor of the State of Indiana
159-Date: Time:
160-HEA 1213
42+1 SECTION 1. IC 27-1-13-18, AS AMENDED BY P.L.161-2024,
43+2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
44+3 JULY 1, 2025]: Sec. 18. (a) This section applies to a loss or damages
45+4 incurred after June 30, 2025, for a policy of insurance that is described
46+5 in:
47+6 (1) Class 3 3(a) of IC 27-1-5-1; or
48+7 (2) Class 2 2(h) of IC 27-1-5-1. except for a policy of insurance
49+8 that is described in Class 2(j) of IC 27-1-5-1.
50+9 However, this section does not apply to a commercial lines
51+10 property insurance policy.
52+11 (b) This section applies regardless of whether the policy of
53+12 insurance was created before, on, or after July 1, 2025, unless the
54+13 application of this section to the policy of insurance would:
55+14 (1) for a policy issued before July 1, 2025, give a right to a
56+15 beneficiary that the beneficiary was not reasonably intended to
57+16 have, other than the beneficiary's right to insurance coverage until
58+17 the time limitation described in subsection (e); or
59+EH 1213—LS 7156/DI 141 2
60+1 (2) for a policy issued at any time, relieve a beneficiary from a
61+2 duty or liability imposed on the insured by the terms of the policy.
62+3 (c) The following definitions apply throughout this section:
63+4 (1) "Beneficiary" has the meaning set forth in IC 32-17-14-3(1).
64+5 (2) "Insurable interest" means an insured's interest in real or
65+6 personal property, concerning which the insured is entitled to the
66+7 benefits of insurance coverage under a property and casualty
67+8 insurance policy or liability insurance policy.
68+9 (3) "Insured" means a person who is entitled to the benefits of
69+10 insurance coverage under a property and casualty insurance
70+11 policy or liability insurance policy.
71+12 (4) "Named insured" means a person identified by name as an
72+13 insured under a property and casualty insurance policy or liability
73+14 insurance policy.
74+15 (5) "Property and casualty insurance policy or liability insurance
75+16 policy" means a policy of insurance that is described in Class 2
76+17 2(h) or Class 3 3(a) of IC 27-1-5-1. The term does not include
77+18 a commercial lines property insurance policy.
78+19 (6) "Transfer" means an ownership change in a named insured's
79+20 insurable interest in real or personal property to a beneficiary of
80+21 a transfer on death transfer deed that occurs as a consequence of
81+22 the named insured's death.
82+23 (7) "Transferee" means a person who has acquired or received a
83+24 named insured's insurable interest in real or personal property
84+25 through a transfer.
85+26 (8) "Transfer on death transfer" deed" has the meaning set forth
86+27 in IC 32-17-14-3(17). IC 32-17-14-3(16).
87+28 (d) Subject to subsection (e), each transferee of a named insured's
88+29 insurable interest in real or personal property is also an insured to the
89+30 extent of the named insured's insurable interest in real or personal
90+31 property that the transferee has acquired or received through a transfer.
91+32 (e) Except as provided in subsections (f) and (g) and IC 32-38-3-1,
92+33 for a period of sixty (60) days immediately following the death of the
93+34 insured, each transferee is an insured under a property and casualty
94+35 insurance policy or liability insurance policy insuring the real or
95+36 personal property the transferee acquired or received through a
96+37 transfer. At the time of the insured's death, the transferee succeeds to
97+38 the rights and obligations of the insured under the property and
98+39 casualty insurance policy or liability insurance policy, to the extent of
99+40 the insured's insurable interest in real or personal property that the
100+41 transferee has acquired or received through a transfer, for the sixty (60)
101+42 day period.
102+EH 1213—LS 7156/DI 141 3
103+1 (f) If a property and casualty insurance policy or liability insurance
104+2 policy has a policy expiration date that is less than sixty (60) days after
105+3 the death of the insured, insurance coverage continues for either:
106+4 (1) thirty (30) days; or
107+5 (2) the policy expiration date;
108+6 whichever is later.
109+7 (g) If a transferee obtains a property and casualty insurance policy
110+8 or liability insurance policy insuring the real or personal property the
111+9 transferee acquired or received through a transfer, the transferee is not
112+10 an insured on the insurance policy described in subsection (e) once the
113+11 transferee's property and casualty insurance policy or liability insurance
114+12 policy becomes effective.
115+13 SECTION 2. IC 32-17-14-11, AS AMENDED BY P.L.99-2024,
116+14 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
117+15 JULY 1, 2025]: Sec. 11. (a) A transfer on death deed transfers the
118+16 interest provided to the beneficiary if the transfer on death deed is:
119+17 (1) executed by the owner or owner's legal representative; and
120+18 (2) recorded with the recorder of deeds in the county in which the
121+19 real property is situated before the death of the owner.
122+20 (b) A transfer on death deed is void if it is not recorded with the
123+21 recorder of deeds in the county in which the real property is situated
124+22 before the death of the owner.
125+23 (c) A transfer on death deed is not required to be supported by
126+24 consideration or delivered to the grantee beneficiary.
127+25 (d) A transfer on death deed may be used to transfer an interest in
128+26 real property to either a revocable or an irrevocable trust.
129+27 (e) If the owner records a transfer on death deed, the effect of the
130+28 recording the transfer on death deed is determined as follows:
131+29 (1) If the owner's interest in the real property is as a tenant by the
132+30 entirety, the conveyance is inoperable and void unless the other
133+31 spouse joins in the conveyance.
134+32 (2) If the owner's interest in the real property is as a joint tenant
135+33 with rights of survivorship, the conveyance severs the joint
136+34 tenancy and the cotenancy becomes a tenancy in common.
137+35 (3) If the owner's interest in the real property is as a joint tenant
138+36 with rights of survivorship and the property is subject to a
139+37 beneficiary designation, a conveyance of any joint owner's interest
140+38 has no effect on the original beneficiary designation for the
141+39 nonsevering joint tenant.
142+40 (4) If the owner's interest is as a tenant in common, the owner's
143+41 interest passes to the beneficiary as a transfer on death transfer.
144+42 (5) If the owner's interest is a life estate determined by the owner's
145+EH 1213—LS 7156/DI 141 4
146+1 life, the conveyance is inoperable and void.
147+2 (6) If the owner's interest is any other interest, the interest passes
148+3 in accordance with this chapter and the terms and conditions of
149+4 the conveyance establishing the interest. If a conflict exists
150+5 between the conveyance establishing the interest and this chapter,
151+6 the terms and conditions of the conveyance establishing the
152+7 interest prevail.
153+8 (f) A beneficiary designation in a transfer on death deed may be
154+9 worded in substance as "(insert owner's name) conveys and warrants
155+10 (or quitclaims) to (insert owner's name), TOD to (insert beneficiary's
156+11 name)". This example is not intended to be exhaustive.
157+12 (g) A transfer on death deed using the phrase "pay on death to" or
158+13 the abbreviation "POD" may not be construed to require the liquidation
159+14 of the real property being transferred.
160+15 (h) This section does not preclude other methods of conveying real
161+16 property that are permitted by law and have the effect of postponing
162+17 enjoyment of an interest in real property until after the death of the
163+18 owner. This section applies only to transfer on death deeds and does
164+19 not invalidate any deed that is otherwise effective by law to convey title
165+20 to the interest and estates provided in the deed.
166+21 (i) The endorsement of the county auditor under IC 36-2-11-14 and
167+22 IC 36-2-9-18 is necessary to record a transfer on death deed under this
168+23 section.
169+24 (j) For a transfer on death deed executed after December 31, 2024,
170+25 June 30, 2025, the transfer on death deed may include the following
171+26 warning:
172+27 "WARNING: After the death of the owner, the owner's insurance
173+28 policy is required by IC 27-1-13-18 to cover the real property
174+29 transferred for a period of time as set forth in IC 27-1-13-18(e)
175+30 and IC 27-1-13-18(f). Once the period of time as set forth in
176+31 IC 27-1-13-18(e) and IC 27-1-13-18(f) expires, the insurance
177+32 policy may no longer cover the real property and the beneficiary
178+33 of a transfer on death deed and the real property may become
179+34 uninsured.".
180+35 A transfer on death deed is not invalid due to the failure to include the
181+36 warning described in this subsection, or due to a defect in the wording
182+37 of the warning described in this subsection.
183+EH 1213—LS 7156/DI 141 5
184+COMMITTEE REPORT
185+Mr. Speaker: Your Committee on Insurance, to which was referred
186+House Bill 1213, has had the same under consideration and begs leave
187+to report the same back to the House with the recommendation that said
188+bill be amended as follows:
189+Page 1, line 4, reset in roman "June 30, 2025,".
190+Page 1, line 4, delete "December 31, 2025,".
191+Page 1, between lines 8 and 9, begin a new line blocked left and
192+insert:
193+"However, this section does not apply to a commercial lines
194+property insurance policy.".
195+Page 1, line 10, reset in roman "July 1, 2025,".
196+Page 1, line 10, delete "January 1,".
197+Page 1, line 11, delete "2026,".
198+Page 1, line 13, reset in roman "July 1, 2025,".
199+Page 1, line 13, delete "January 1, 2026,".
200+Page 2, line 4, strike "or".
201+Page 2, line 5, strike "personal".
202+Page 2, line 16, after "IC 27-1-5-1." insert "The term does not
203+include a commercial lines property insurance policy.".
204+Page 2, line 18, strike "or personal".
205+Page 2, line 22, strike "or personal".
206+Page 2, line 27, strike "or personal".
207+Page 2, line 28, strike "or personal".
208+Page 2, line 33, after "real" strike "or".
209+Page 2, line 34, strike "personal".
210+Page 2, line 38, strike "or personal".
211+Page 3, line 6, strike "or personal".
212+Page 4, line 22, strike "December 31,".
213+Page 4, line 23, delete "2025," and insert "June 30, 2025,".
214+Page 4, delete lines 35 through 42.
215+Delete pages 5 through 8.
216+Renumber all SECTIONS consecutively.
217+and when so amended that said bill do pass.
218+(Reference is to HB 1213 as introduced.)
219+CARBAUGH
220+Committee Vote: yeas 11, nays 0.
221+EH 1213—LS 7156/DI 141 6
222+COMMITTEE REPORT
223+Mr. President: The Senate Committee on Insurance and Financial
224+Institutions, to which was referred House Bill No. 1213, has had the
225+same under consideration and begs leave to report the same back to the
226+Senate with the recommendation that said bill DO PASS.
227+ (Reference is to HB 1213 as printed February 4, 2025.)
228+
229+BALDWIN, Chairperson
230+Committee Vote: Yeas 7, Nays 0
231+EH 1213—LS 7156/DI 141