Bill Text: IN SB0160 | 2011 | Regular Session | Introduced
Bill Title: Employer purchased insurance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-01-05 - First reading: referred to Committee on Insurance and Financial Institutions [SB0160 Detail]
Download: Indiana-2011-SB0160-Introduced.html
Citations Affected: IC 27-1-12-17.1.
Synopsis: Employer purchased insurance. Requires an employee's
written consent to an employer's purchase of life or disability insurance
covering the employee. Limits the amount payable under the life or
disability insurance to the amount of the employee's annual salary.
Effective: July 1, 2011.
January 5, 2011, read first time and referred to Committee on Insurance and Financial
Institutions.
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
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
A BILL FOR AN ACT to amend the Indiana Code concerning
insurance.
(b) As used in this section, "employer" means an individual, a corporation, a partnership, a limited liability company, and any other legal entity that has at least one (1) employee and is legally doing business in Indiana. The term includes an association of employers and the employer's affiliates.
(c) An employer that provides life insurance, health insurance, disability insurance, retirement benefits, or similar benefits to an employee of the employer has an insurable interest in the life of the employee. The trustee of a trust established by an employer for the benefit of the employer has the same insurable interest as the employer in the life of an employee. The trustee of a trust established by an employer that provides life insurance, health insurance, disability
insurance, retirement benefits, or similar benefits to an employee of the
employer and acts in a fiduciary capacity with respect to that employee
or the employee's dependents or beneficiaries has an insurable interest
in the life of the employee for whom benefits are to be provided.
(d) An employer or the trustee of a trust established by the employer
may acquire life or disability insurance upon an employee in whom
the employer or the trustee of the trust has an insurable interest as
determined under subsection (c) if the:
(1) employee consents to be insured; and
(2) total amount payable to the employer or trustee under the
life or disability insurance policy or contract does not exceed
an amount equal to the annual salary of the employee.
An employee consents to be insured if the employee is provided written
notice of the life or disability insurance coverage and does not object
provides written consent to the insurance coverage to the employer
or trustee within thirty (30) days of receipt of the notice.
(e) An insurable interest must exist at the time the contract of life or
disability insurance becomes effective, but need not exist at the time
the loss occurs.
(f) Proceeds of a policy issued under this section are exempt from
the claims of the employee's creditors or dependents.
