except term insurance, then customarily issued by the insurer at
the age and in the amount applied for. The premium on this
individual policy is to be at the insurer's then customary rate
applicable to the form and amount of such individual policy, the
class of risk to which the insured person then belongs, and his age
attained on the effective date of such individual policy.
(2) That, if the insured person under a policy of employee life
insurance:
(A) is covered under a policy of employee life insurance
purchased by the state as described in IC 5-10-8-7(a)(1);
(B) terminates employment;
(C) applies for continuation of the coverage within
thirty-one (31) days of the date of termination; and
(D) pays both the employer and employee shares of the
premium that would be paid for coverage of an active
employee;
the insured person may, without evidence of insurability,
continue coverage under the employee term life insurance
policy or under an equivalent individual term life insurance
policy at the same rate as the rate that would be paid for
coverage under the employee term life insurance policy.
of the insurance with respect to which the statement was made,
unless:
(A) the insurance has not been in force for a period of two (2)
years or longer during the person's lifetime; or
(B) the statement is contained in a written instrument signed
by the insured person.
However, a provision under this subdivision may not preclude the
assertion at any time of defenses based upon provisions in the
policy that relate to eligibility for coverage.
(3) A provision that a copy of the application, if any, of the
policyholder must be attached to the policy when issued, that all
statements made by the policyholder or by the persons insured are
to be deemed representations and not warranties, and that no
statement made by any person insured may be used in any contest
unless a copy of the instrument containing the statement is or has
been furnished to the insured person or, in the event of death or
incapacity of the insured person, to the insured person's
beneficiary or personal representative.
(4) A provision setting forth the conditions, if any, under which
the insurer reserves the right to require a person eligible for
insurance to furnish evidence of individual insurability
satisfactory to the insurer as a condition to part or all of the
person's coverage.
(5) A provision specifying an equitable adjustment of premiums,
benefits, or both to be made in the event the age of a person
insured has been misstated. A provision under this subdivision
must contain a clear statement of the method of adjustment to be
made.
(6) A provision that any sum becoming due by reason of the death
of the person insured must be payable to the beneficiary
designated by the person insured. However, if a policy contains
conditions pertaining to family status, the beneficiary may be the
family member specified by the policy terms, subject to the
provisions of the policy in the event there is no designated
beneficiary, as to all or any part of the sum, living at the death of
the person insured, and subject to any right reserved by the
insurer in the policy and set forth in the certificate to pay at its
option a part of the sum not exceeding two thousand dollars
($2,000) to any person appearing to the insurer to be equitably
entitled to that payment by reason of having incurred funeral or
other expenses incident to the last illness or death of the person
insured.
(7) A provision that the insurer will issue to the policyholder, for
delivery to each person insured, a certificate setting forth a
statement that:
(A) explains the insurance protection to which the person
insured is entitled;
(B) indicates to whom the insurance benefits are payable;
(C) explains any dependent's coverage included in the
certificate; and
(D) sets forth the rights and conditions that apply to the person
under subdivisions (8), (9), (10), and (11).
(8) A provision that if the insurance, or any portion of it, on a
person covered under the policy, or on the dependent of a person
covered, ceases because of termination of employment or
termination of membership in the class or classes eligible for
coverage under the policy, the person or dependent is entitled,
without evidence of insurability, to the following:
(A) An individual policy of life insurance issued to the person
or dependent by the insurer without disability or other
supplementary benefits, provided that an application for the
individual policy is made and that the first premium is paid to
the insurer within thirty-one (31) days after the termination,
and provided further that:
(A) (i) the individual policy must, at the option of the person
or dependent, be on any one (1) of the forms then
customarily issued by the insurer at the age and for the
amount applied for, except that the group policy may
exclude the option to elect term insurance;
(B) (ii) the individual policy must be in an amount not in
excess of the amount of life insurance that ceases because of
the termination, less the amount of any life insurance for
which the person or dependent becomes eligible under the
same policy or any other group policy within thirty-one (31)
days after the termination (however, any amount of
insurance that has matured on or before the date of the
termination as an endowment payable to the person insured,
whether in one (1) sum, in installments, or in the form of an
annuity, may not, for the purposes of this clause, be included
in the amount of insurance that is considered to cease
because of the termination); and
(C) (iii) the premium on the individual policy must be at the
insurer's then customary rate applicable to the form and
amount of the individual policy, to the class of risk to which
the person or dependent then belongs, and to the individual
age attained by the person or dependent on the effective date
of the individual policy.
Subject to the conditions set forth in this subdivision, clause,
the conversion privilege created by this subdivision clause
must be available to a surviving dependent of a person covered
under a group policy, with respect to the coverage under the
group policy that terminates by reason of the death of the
person covered, and to the dependent of an employee or
member after termination of the coverage of the dependent
because the dependent ceases to be a qualified family member
under the group policy, while the employee or member
remains insured under the group policy.
(B) If the policy is an employee group term life insurance
policy purchased by the state as described in
IC 5-10-8-7(a)(1), continued coverage of the person under
the policy, or coverage under an equivalent individual
term life insurance policy at the same rate as the rate that
would be paid for coverage under the employee group
term life insurance policy, following termination of the
person's employment if the person:
(i) applies for continuation of the coverage within
thirty-one (31) days of the date of termination; and
(ii) pays both the employer and employee shares of the
premium that would be paid for coverage of an active
employee.
(9) A provision that if the group policy terminates or is amended
so as to terminate the insurance of any class of insured persons,
every person insured under the policy at the date of the
termination whose insurance terminates, including the insured
dependent of a covered person, and who has been so insured for
at least five (5) years before the termination date, is entitled to
have issued by the insurer an individual policy of life insurance,
subject to the same conditions and limitations as are provided in
subdivision (8), except that the group policy may provide that the
amount of the individual policy may not exceed the lesser of:
(A) the amount of the person's life insurance protection that is
ceasing because of the termination or amendment of the group
policy, less the amount of any life insurance for which the
person is eligible or becomes eligible under a group policy
issued or reinstated by the same insurer or another insurer
within thirty-one (31) days after the termination; or
(B) ten thousand dollars ($10,000).
(10) A provision that if a person insured under the group policy,
or the insured dependent of a covered person, dies during the
period within which the covered person or dependent would have
been entitled to have an individual policy issued under
subdivision (8) or (9) or before such an individual policy becomes
effective, the amount of life insurance that the covered person or
dependent would have been entitled to have issued under an
individual policy is payable as a claim under the group policy,
whether or not application for the individual policy or the
payment of the first premium for the individual policy has been
made.