Sec. 6. (a) A group described in section 2(1) of this chapter must meet the following requirements to be eligible to purchase coverage under a group insurance policy:

(1) The group consists of at least ten (10) individuals who are members.

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Terms Used In Indiana Code 27-1-41-6

  • group: means the following:

    Indiana Code 27-1-41-2

  • group insurance policy: means a policy of insurance that provides personal excess liability insurance or personal umbrella liability insurance to participating group members under one (1) master policy:

    Indiana Code 27-1-41-4

  • Insurance: means a contract of insurance or an agreement by which one (1) party, for a consideration, promises to pay money or its equivalent or to do an act valuable to the insured upon the destruction, loss or injury of something in which the other party has a pecuniary interest, or in consideration of a price paid, adequate to the risk, becomes security to the other against loss by certain specified risks; to grant indemnity or security against loss for a consideration. See Indiana Code 27-1-2-3
  • insurer: means a company, firm, partnership, association, order, society or system making any kind or kinds of insurance and shall include associations operating as Lloyds, reciprocal or inter-insurers, or individual underwriters. See Indiana Code 27-1-2-3
  • member: means one who holds a contract of insurance or is insured in an insurance company other than a stock corporation. See Indiana Code 27-1-2-3
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
(2) The group has been in existence for at least two (2) years.

(3) The group was formed for a purpose other than the purchase of insurance.

     (b) A group described in section 2(2) of this chapter may include each of the following as a group member:

(1) An employee of a subsidiary or an affiliate of the employer.

(2) A retired employee of the employer.

(3) An individual business owner or proprietor who is the employer.

(4) A partner of a partnership that is the employer.

(5) A director or retired director of the employer.

(6) A former employee, owner, proprietor, partner, or director who purchased coverage under a group insurance policy before leaving the position.

(7) A spouse, child, or household resident of any individual described in subdivisions (1) through (6).

     (c) A group is not eligible to purchase, and an insurer shall not provide to the group, coverage under a group insurance policy if:

(1) the purchase of insurance is a condition of membership in the group; or

(2) a group member is penalized by the group as a result of the group member refusing coverage under a group insurance policy.

As added by P.L.32-2012, SEC.2.