Sec. 13. Except as provided in section 14 of this chapter, a service contract reimbursement policy may not be offered, sold, or issued in Indiana unless the service contract reimbursement policy conspicuously states that the insurer will do either of the following:

(1) Pay all sums that the provider is obligated to pay under service contracts issued by the provider and outstanding in Indiana.

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Terms Used In Indiana Code 27-1-43.2-13

  • Contract: A legal written agreement that becomes binding when signed.
  • 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
  • provider: means a person who is contractually obligated to a holder under a service contract. See Indiana Code 27-1-43.2-5
  • service contract: means an agreement:

    Indiana Code 27-1-43.2-7

(2) In the event of the provider’s nonperformance under a service contract issued by the provider and outstanding in Indiana, perform or pay for the performance of services that the provider:

(A) is obligated to perform under the service contract; and

(B) failed to perform.

As added by P.L.129-2014, SEC.10.