IN SB0415

Requires life insurers to provide written notice to policy owners about alternatives to surrendering or lapsing a life insurance policy when the insured is at least 60 years old or known to be terminally or chronically ill

Notice must be provided when the policy owner requests surrender or accelerated death benefits, when the insurer sends a lapse warning (no more than once per 12 months), or when the insurance commissioner requires it

Required notice must describe alternatives including accelerated death benefits, assigning the policy as a gift, selling the policy through a viatical settlement, policy replacement, maintaining coverage through loans using the policy as collateral, and converting term policies to permanent or long-term care coverage

Notice forms must be prescribed by the insurance commissioner, developed at no cost to insurers, and written in layman's terms

Violation of these disclosure requirements constitutes an unfair and deceptive act in the business of insurance under IC 27-4-1-4, effective July 1, 2011