Sec. 22. (a) All individual policies of accident and sickness insurance issued for delivery in Indiana after June 30, 1990, must provide for the refund of unused premiums upon the death of the insured during the contract period.

     (b) The amount of premium refund shall be prorated from the date following the date of death of the insured to the end of the contract period for which the premium has been paid.

     (c) The refund required by this section shall be paid as follows:

(1) If a person other than the insured paid the premium, to that person. A person entitled to a refund under this subdivision must furnish proof of payment to the insurer.

(2) If the insured paid the premium, to the surviving spouse of the insured. If there is no surviving spouse, the premium shall be paid in the same manner as distributions of the net estate of a person who dies intestate under IC 29-1-2-1(d). A parent disqualified under IC 29-1-2-1(e) from receiving an intestate share of the parent’s child’s estate is not entitled to a refund under this section of insurance premiums paid by the child.

     (d) A person entitled to receive a refund under this section must do the following:

(1) Submit a written request for the refund.

(2) Furnish proof of the insured’s death.

     (e) This section does not affect the rights of a dependent under a policy covered by this section to obtain a conversion policy upon the death of the insured.

As added by P.L.151-1990, SEC.1. Amended by P.L.101-2008, SEC.4.