Indiana Senate Bill SB0291

Indiana 2023 Regular Session

• Introduced: 1/11/23
• Refer: 1/11/23

Caption

Life insurance matters.

Impact

The bill mandates that the insurance commissioner must disapprove any endorsements to a life insurance policy that would modify these critical calculations or benefits. This regulation is anticipated to bolster consumer confidence in life insurance contracts as policyholders will have clearer expectations for their benefits, especially concerning the cash surrender value, which is an essential feature for many individuals considering their options in life insurance contracts. Effective from July 1, 2023, these changes aim to enhance consumer protections in the insurance market.

Summary

Senate Bill 291, titled 'Life Insurance Matters', focuses on the regulations surrounding life insurance policies in Indiana. The bill stipulates that after a life insurance policy is issued, the insurer cannot materially alter the method for calculating the cash surrender value or any other benefits in a way that was not outlined in the original policy. This aims to provide greater stability and predictability for policyholders regarding their issued policies, thereby protecting consumers from future changes that could negatively affect their benefits.

Contention

A significant point of contention within SB 291 revolves around the use of genetic testing in underwriting life insurance policies. The bill allows insurers to request information related to an applicant's longevity risk, including data from genetic screenings, but explicitly prohibits underwriting a policy based on genetic testing. This provision raises debate over privacy concerns and the ethical implications of using genetic information in insurance underwriting, balancing the need for insurers to assess risk with the rights of individuals regarding their genetic health information.