Sec. 7. An insurer may not use a retained asset account unless, before the policy proceeds are transferred to the retained asset account, the insurer:

(1) informs:

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Terms Used In Indiana Code 27-2-22-7

  • 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
  • insurer: means an insurance company that issues a policy. See Indiana Code 27-2-22-4
  • policy: means a policy or certificate that provides the kind of insurance described in Class 1 of IC 27-1-5-1. See Indiana Code 27-2-22-5
  • retained asset account: means a mechanism through which the settlement of proceeds payable under a policy occurs by the insurer's deposit of the proceeds into a checking or draft account:

    Indiana Code 27-2-22-6

(A) the beneficiary;

(B) the legal representative of the beneficiary; or

(C) in the case of a group policy, the policy owner;

of the beneficiary’s right to a lump sum payment of the full amount of the policy proceeds; and

(2) makes the disclosure described in section 8(c) of this chapter to the beneficiary.

As added by P.L.67-2011, SEC.1.