CHAPTER 6. CONTRACTUAL BENEFITS
IC 27-11-6
Chapter 6. Contractual Benefits
IC 27-11-6-1
Contractual benefits
Sec. 1. (a) A society may provide the following contractualbenefits in any form:
(1) Death benefits.
(2) Endowment benefits.
(3) Annuity benefits.
(4) Temporary or permanent disability benefits.
(5) Hospital, medical, or nursing benefits.
(6) Monument or tombstone benefits to the memory of deceasedmembers.
(7) Such other benefits as authorized for life insurers and thatare not inconsistent with this chapter.
(b) A society shall specify in its rules those persons who may beissued or covered by the contractual benefits in subsection (a),consistent with providing benefits to members and their dependents.A society may provide benefits on the lives of children under theminimum age for adult membership upon application of an adultperson.
As added by P.L.262-1985, SEC.1.
IC 27-11-6-2
Beneficiaries of benefit contracts; funeral benefits; failure todesignate lawful beneficiary
Sec. 2. (a) The owner of a benefit contract is entitled to changethe beneficiary or beneficiaries in accordance with the laws or rulesof the society unless the owner waives this right by specificallyrequesting in writing that the beneficiary designation be irrevocable.A society may, through its laws or rules, limit the scope ofbeneficiary designations and shall provide that no revocablebeneficiary shall have or obtain any vested interest in the proceedsof any certificate until the certificate has become due and payable inconformity with the provisions of the benefit contract.
(b) A society may make provision for the payment of funeralbenefits to the extent of such portion of any payment under acertificate as might reasonably appear to be due to any personequitably entitled thereto by reason of having incurred expenseoccasioned by the burial of the member.
(c) If at the death of any person insured under a benefit contractthere is no lawful beneficiary to whom the proceeds shall be payable,the amount of the benefit, except to the extent that funeral benefitsmay be paid, shall be payable to the personal representative of thedeceased insured, provided that if the owner of the certificate is otherthan the insured, the proceeds shall be payable to such owner.
As added by P.L.262-1985, SEC.1.
IC 27-11-6-3 Limitation on use of benefits to pay debts or liabilities of members,beneficiaries, or other persons
Sec. 3. No money or other benefit, charity, relief, or aid to bepaid, provided, or rendered by any society shall be liable toattachment, garnishment, or other process or to be seized, taken,appropriated, or applied by any legal or equitable process oroperation of law to pay any debt or liability of a member,beneficiary, or any other person who may have a right thereunder,either before or after payment by the society.
As added by P.L.262-1985, SEC.1.
IC 27-11-6-4
Issuance of certificate to owner of benefit contract
Sec. 4. Every society authorized to do business in this state shallissue to each owner of a benefit contract a certificate specifying theamount of benefits provided. The certificate, together with any ridersor endorsements attached to the certificate, the laws of the society,the application for membership, the application for insurance anddeclaration of insurability, if any, signed by the applicant, and allamendments to each constitutes the benefit contract as of the date ofissuance between the society and the owner, and the certificate shallso state. A copy of the application for insurance and declaration ofinsurability, if any, shall be endorsed upon or attached to thecertificate. All statements on the application shall be representationsand not warranties. Any waiver of this provision shall be void.
As added by P.L.262-1985, SEC.1.
IC 27-11-6-5
Effect of changes, additions, or amendments to laws of society uponowner and beneficiaries of benefit contract
Sec. 5. Any changes, additions, or amendments to the laws of thesociety duly made or enacted subsequent to the issuance of thecertificate shall bind the owner and the beneficiaries and shall governand control the benefit contract in all respects as though the changes,additions, or amendments had been made before and were in force atthe time of the application for insurance, except that no change,addition, or amendment shall destroy or diminish benefits that thesociety contracted to give the owner as of the date of issuance.
As added by P.L.262-1985, SEC.1.
IC 27-11-6-6
Issuance of benefit contract upon life of a minor
Sec. 6. Any person upon whose life a benefit contract is issuedbefore attaining the age of majority shall be bound by the terms ofthe application and certificate and by all the laws and rules of thesociety to the same extent as though the age of majority had beenattained at the time of application.
As added by P.L.262-1985, SEC.1.
IC 27-11-6-7 Payment of owner's equitable proportion of deficiency wheresociety's reserves are impaired
Sec. 7. A society shall provide in its laws that if its reserves as toall or any class of certificates become impaired its board of directorsor corresponding body may require that there shall be paid by theowner to the society the amount of the owner's equitable proportionof such deficiency as ascertained by its board, and that, if thepayment is not made, either:
(1) it shall stand as an indebtedness against the certificate anddraw interest not to exceed the rate specified for certificateloans under the certificates; or
(2) instead of or in combination with subdivision (1), the ownermay accept a proportionate reduction in benefits under thecertificate.
The society may specify the manner of the election and whichalternative is to be presumed if no election is made.
As added by P.L.262-1985, SEC.1.
IC 27-11-6-8
Copies of documents as evidence of terms and conditions
Sec. 8. Copies of any of the documents mentioned in this chapter,certified by the secretary or corresponding officer of the society,shall be received in evidence of the terms and conditions thereof.
As added by P.L.262-1985, SEC.1.
IC 27-11-6-9
Filing of copy of certificate with commissioner; contents ofcertificate
Sec. 9. A certificate shall not be delivered or issued for deliveryin Indiana unless a copy of the form has been filed with thecommissioner in the manner provided for like policies issued by lifeinsurers in Indiana. Every life, accident, health, or disabilityinsurance certificate and every annuity certificate issued afterDecember 31, 1986, shall meet the standard contract provisionrequirements not inconsistent with this chapter for like policiesissued by life insurers in this state, except that a society may providefor a grace period for payment of premiums of one (1) full month inits certificate. The certificate shall also contain a provision statingthe amount of premiums that are payable under the certificate and aprovision reciting or setting forth the substance of any sections of thesociety's laws or rules in force at the time of issuance of thecertificate that, if violated, will result in the termination or reductionof benefits payable under the certificate. If the laws of the societyprovide for expulsion or suspension of a member, the certificate shallalso contain a provision that any member so expelled or suspended,except for nonpayment of a premium or within the contestable periodfor material misrepresentation in the application for membership orinsurance, shall have the privilege of maintaining the certificate inforce by continuing payment of the required premium.
As added by P.L.262-1985, SEC.1. Amended by P.L.2-1995,
SEC.110.
IC 27-11-6-10
Benefit contract issued on life of a minor; transfer of control ofownership to the insured
Sec. 10. Benefit contracts issued on the lives of persons below thesociety's minimum age for adult membership may provide fortransfer of control of ownership to the insured at an age specified inthe certificate. A society may require approval of an application formembership in order to effect this transfer and may provide in allother respects for the regulation, government, and control ofcertificates and all rights, obligations, and liabilities incident to abenefit contract. Ownership rights before a transfer shall be specifiedin the certificate.
As added by P.L.262-1985, SEC.1.
IC 27-11-6-11
Assignment of benefit contracts
Sec. 11. A society may specify the terms and conditions on whichbenefit contracts may be assigned.
As added by P.L.262-1985, SEC.1.
IC 27-11-6-12
Cash surrender value, loans, or other options
Sec. 12. (a) For certificates issued before January 1, 1987, thevalue of every paid-up nonforfeiture benefit and the amount of anycash surrender value, loan, or other option granted shall comply withthe provisions of law applicable on December 31, 1985.
(b) For certificates issued after December 31, 1986, for whichreserves are computed on the Commissioner's 1941 StandardOrdinary Mortality Table, the Commissioner's 1941 StandardIndustrial Table, the Commissioner's 1958 Standard OrdinaryMortality Table, the Commissioner's 1980 Standard Mortality Table,or any more recent table made applicable to life insurers, everypaid-up nonforfeiture benefit and the amount of any cash surrendervalue, loan, or other option granted shall not be less than thecorresponding amount ascertained in accordance with the laws ofthis state applicable to life insurers issuing policies containing likebenefits based upon the tables.
As added by P.L.262-1985, SEC.1.