Citations Affected: IC 27-8-5.1.
Synopsis: Individual out-of-state health insurance. Allows an accident
and sickness insurer that is licensed in certain other states, and is not
licensed in Indiana, to issue or deliver an individual policy of accident
and sickness insurance to an individual resident of Indiana without
complying with other Indiana insurance law.
Effective: July 1, 2011.
January 5, 2011, read first time and referred to Committee on Insurance.
A BILL FOR AN ACT to amend the Indiana Code concerning
insurance" means a policy or contract covering one (1) or more of
the kinds of insurance described in Class 1(b) or Class 2(a) of
Sec. 4. Notwithstanding any other law, an out-of-state insurer that complies with:
(1) this chapter; and
(2) the applicable law of the state in which the out-of-state insurer is licensed;
may, without complying with any other provision of this title, issue or deliver to a resident of Indiana an individual policy of accident and sickness insurance that the out-of-state insurer is authorized to issue or deliver in the state in which the out-of-state insurer is licensed.
Sec. 5. The commissioner:
(A) conduct market conduct and solvency examinations of an out-of-state insurer before and after the out-of-state insurer begins issuing or delivering policies of accident and sickness insurance in Indiana under this chapter; and
(B) adopt rules under IC 4-22-2 to review and limit premium rate changes that apply to a policy of accident and sickness insurance described in section 4 of this chapter; and
(2) shall conduct examinations under subdivision (1)(A) in the same manner and according to the same terms and conditions as an examination is conducted for an insurer that possesses a certificate of authority to issue individual policies of accident and sickness insurance in Indiana.
Sec. 6. An out-of-state insurer shall provide the following notices in 12 point bold type at the beginning of a policy of accident and sickness insurance at the time the policy is issued or delivered under this chapter in Indiana and at renewal:
(1) "NOTICE: This policy is primarily governed by the laws of (state where policy is filed). Rating laws that apply to policies filed in Indiana may not apply to this policy, and this may result in increases in your premium at renewal that would not be permissible in an Indiana-approved policy. Any purchase of individual health insurance should be considered carefully since future medical conditions may make it impossible to qualify for another individual health insurance policy. For information concerning individual health insurance coverage under an Indiana-approved policy, please
consult your insurance agent or the Indiana Department of
(2) "NOTICE: The benefits of this policy are governed primarily by the laws of (state where policy is filed). While this health insurance policy may provide you more affordable health insurance coverage, it may also provide fewer health insurance benefits than those normally included as state mandated health benefits in health insurance policies in Indiana. Please consult your insurance agent to determine which state mandated health benefits are excluded under this health insurance policy.".