Bill Text: IN HB1015 | 2011 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Insurance matters.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Passed) 2011-05-16 - SECTIONS 7 through 11 effective 07/01/2011 [HB1015 Detail]

Download: Indiana-2011-HB1015-Introduced.html

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Introduced Version

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HOUSE BILL No. 1015

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DIGEST OF INTRODUCED BILL

Citations Affected: IC 27-8-12-18.

Synopsis: Long term care insurance commissions. Removes a limitation on long term care insurance commission amounts.

Effective: July 1, 2011.

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Torr

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    January 5, 2011, read first time and referred to Committee on Insurance.

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Introduced

First Regular Session 117th General Assembly (2011)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2010 Regular Session of the General Assembly.

HOUSE BILL No. 1015

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    A BILL FOR AN ACT to amend the Indiana Code concerning insurance.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 27-8-12-18; (11)IN1015.1.1. -->     SECTION 1. IC 27-8-12-18, AS AMENDED BY P.L.173-2007, SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 18. (a) An insurer or other entity that provides a commission to an insurance producer or other representative for the sale of a long term care insurance policy may not violate the following conditions:
        (1) The amount of the first year insurer or other entity shall, for at least six (6) years, pay to the insurance producer or other representative an annual commission for selling or servicing the policy. may not exceed two hundred percent (200%) of the amount of the commission paid in the second year.
        (2) The amount of commission provided in years after the second year must be equal to the amount provided in the second year.
        (3) A commission must be provided each year for at least five (5) years after the first year.
    (b) If an existing long term care policy or certificate is replaced, the insurer or other entity that issues the replacement policy may not

provide, and its insurance producer may not accept, a commission in an amount greater than the renewal commission payable by the replacing insurer on renewal policies, unless the benefits of the replacement policy or certificate are clearly and substantially greater than the benefits under the replaced policy or certificate.
    (c) This section does not apply to the following:
        (1) Life insurance policies and certificates.
        (2) A policy or certificate that is sponsored by an employer for the benefit of:
            (A) the employer's employees; or
            (B) the employer's employees and their dependents.