Indiana Code 27-1-13-18. Transfer on death transfer; insurance coverage
(1) Class 3 of IC 27-1-5-1; or
Terms Used In Indiana Code 27-1-13-18
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- 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
- person: includes individuals, corporations, associations, and partnerships; personal pronoun includes all genders; the singular includes the plural and the plural includes the singular. See Indiana Code 27-1-2-3
- Personal property: All property that is not real property.
- Personal property: includes goods, chattels, evidences of debt, and things in action. See Indiana Code 1-1-4-5
- Property: includes personal and real property. See Indiana Code 1-1-4-5
(b) This section applies regardless of whether the policy of insurance was created before, on, or after July 1, 2025, unless the application of this section to the policy of insurance would:
(1) for a policy issued before July 1, 2025, give a right to a beneficiary that the beneficiary was not reasonably intended to have, other than the beneficiary’s right to insurance coverage until the time limitation described in subsection (e); or
(2) for a policy issued at any time, relieve a beneficiary from a duty or liability imposed on the insured by the terms of the policy.
(c) The following definitions apply throughout this section:
(1) “Beneficiary” has the meaning set forth in IC 32-17-14-3(1).
(2) “Insurable interest” means an insured’s interest in real or personal property, concerning which the insured is entitled to the benefits of insurance coverage under a property and casualty insurance policy or liability insurance policy.
(3) “Insured” means a person who is entitled to the benefits of insurance coverage under a property and casualty insurance policy or liability insurance policy.
(4) “Named insured” means a person identified by name as an insured under a property and casualty insurance policy or liability insurance policy.
(5) “Property and casualty insurance policy or liability insurance policy” means a policy of insurance that is described in Class 2 or Class 3 of IC 27-1-5-1.
(6) “Transfer” means an ownership change in a named insured’s insurable interest in real or personal property to a beneficiary of a transfer on death transfer that occurs as a consequence of the named insured’s death.
(7) “Transferee” means a person who has acquired or received a named insured’s insurable interest in real or personal property through a transfer.
(8) “Transfer on death transfer” has the meaning set forth in IC 32-17-14-3(17).
(d) Subject to subsection (e), each transferee of a named insured’s insurable interest in real or personal property is also an insured to the extent of the named insured’s insurable interest in real or personal property that the transferee has acquired or received through a transfer.
(e) Except as provided in subsections (f) and (g) and IC 32-38-3-1, for a period of sixty (60) days immediately following the death of the insured, each transferee is an insured under a property and casualty insurance policy or liability insurance policy insuring the real or personal property the transferee acquired or received through a transfer. At the time of the insured’s death, the transferee succeeds to the rights and obligations of the insured under the property and casualty insurance policy or liability insurance policy, to the extent of the insured’s insurable interest in real or personal property that the transferee has acquired or received through a transfer, for the sixty (60) day period.
(f) If a property and casualty insurance policy or liability insurance policy has a policy expiration date that is less than sixty (60) days after the death of the insured, insurance coverage continues for either:
(1) thirty (30) days; or
(2) the policy expiration date;
whichever is later.
(g) If a transferee obtains a property and casualty insurance policy or liability insurance policy insuring the real or personal property the transferee acquired or received through a transfer, the transferee is not an insured on the insurance policy described in subsection (e) once the transferee’s property and casualty insurance policy or liability insurance policy becomes effective.
As added by P.L.2-2024, SEC.1. Amended by P.L.161-2024, SEC.1.