Bill Text: IN HB1322 | 2013 | Regular Session | Enrolled
Bill Title: Certificates of insurance.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2013-05-13 - Public Law 70 [HB1322 Detail]
Download: Indiana-2013-HB1322-Enrolled.html
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AN ACT to amend the Indiana Code concerning insurance.
Chapter 42. Certificates of Insurance
Sec. 1. This chapter applies to a certificate of insurance that is issued in connection with a contract related to property, operations, or risks located in Indiana, regardless of the location of the policyholder, insurer, insurance producer, or person that requests or requires the issuance of the certificate of insurance.
Sec. 2. (a) As used in this chapter, "certificate of insurance" means a document prepared by an insurer or insurance producer as evidence of property or casualty insurance coverage.
(b) The term does not include a policy of insurance, an insurance binder, a policy endorsement, or a motor vehicle insurance identification or information card.
Sec. 3. As used in this chapter, "commissioner" refers to the insurance commissioner appointed under IC 27-1-1-2.
Sec. 4. As used in this chapter, "department" refers to the department of insurance created by IC 27-1-1-1.
Sec. 5. As used in this chapter, "insurance producer" has the meaning set forth in IC 27-1-15.6-2.
Sec. 6. As used in this chapter, "insurer" refers to an insurer (as
defined in IC 27-1-2-3) that issues a policy of property or casualty
insurance.
Sec. 7. As used in this chapter, "person" has the meaning set
forth in IC 27-1-2-3.
Sec. 8. As used in this chapter, "property or casualty insurance"
means one (1) or more of the kinds of insurance described in Class
2 and Class 3 of IC 27-1-5-1.
Sec. 9. (a) The use of a certificate of insurance form that:
(1) is unfair, misleading, or deceptive; or
(2) violates any law;
is an unfair and deceptive act or practice in the business of
insurance under IC 27-4-1-4.
(b) If:
(1) the commissioner has reason to believe that a certificate of
insurance form is described in subsection (a)(1) or (a)(2); and
(2) the certificate of insurance form was provided by a
financial institution;
the commissioner may refer the matter to the department of
financial institutions for review under IC 28.
Sec. 10. A certificate of insurance does not:
(1) amend, extend, or alter the coverage provided under; or
(2) confer to a person any rights in addition to the rights
expressly provided in;
the policy of property or casualty insurance to which the certificate
of insurance refers.
Sec. 11. A person may not prepare or issue, or request or
require the issuance of, a certificate of insurance that:
(1) contains false or misleading information concerning; or
(2) alters, amends, or extends the coverage provided by;
the policy of property or casualty insurance to which the certificate
of insurance refers.
Sec. 12. (a) A certificate of insurance must not contain a
warranty that the policy of property or casualty insurance to which
the certificate of insurance refers complies with the insurance or
indemnification requirements of a contract.
(b) The inclusion of a contract number or contract description
in a certificate of insurance does not warrant that the policy of
property or casualty insurance to which the certificate of insurance
refers complies with the insurance or indemnification requirements
of the contract.
Sec. 13. (a) A person is not entitled to notice of:
(1) cancellation of;
(2) nonrenewal of; or
(3) a material change in;
a policy of property or casualty insurance unless the person has notice rights under the terms of the policy of property or casualty insurance or an endorsement to the policy.
(b) The terms and conditions of notice described in subsection (a) are governed by the policy of property or casualty insurance or an endorsement to the policy and are not altered by a certificate of insurance.
Sec. 14. A certificate of insurance or any other document that is prepared, issued, requested, or required in violation of this chapter is void.
Sec. 15. (a) The commissioner may examine and investigate the activities of a person that the commissioner reasonably believes has violated this chapter.
(b) The commissioner may issue a cease and desist order or impose a civil penalty of not more than one thousand dollars ($1,000) for each violation of this chapter.
Sec. 16. The department may adopt rules under IC 4-22-2 to implement this chapter.
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