Transfer on death transfer; insurance coverage

Sec. 18. (a) This section applies to a loss or damages incurred after June 30, 2025, for a policy of insurance that is described in: (1) Class 3(a) of IC 27-1-5-1; or (2) Class 2(h) of IC 27-1-5-1. However, this section does not apply to a commercial lines property insurance policy. (b) This section applies regardless of whether the policy of insurance was created before, on, or after July 1, 2025, unless the application of this section to the policy of insurance would: (1) for a policy issued before July 1, 2025, give a right to a beneficiary that the beneficiary was not reasonably intended to have, other than the beneficiary's right to insurance coverage until the time limitation described in subsection (e); or (2) for a policy issued at any time, relieve a beneficiary from a duty or liability imposed on the insured by the terms of the policy. (c) The following definitions apply throughout this section: (1) "Beneficiary" has the meaning set forth in IC 32-17-14-3(1). (2) "Insurable interest" means an insured's interest in real property, concerning which the insured is entitled to the benefits of insurance coverage under a property insurance policy. (3) "Insured" means a person who is entitled to the benefits of insurance coverage under a property insurance policy. (4) "Named insured" means a person identified by name as an insured under a property insurance policy. (5) "Property insurance policy" means a policy of insurance that is described in Class 2(h) or Class 3(a) of IC 27-1-5-1. The term does not include a commercial lines property insurance policy. (6) "Transfer" means an ownership change in a named insured's insurable interest in real property to a beneficiary of a transfer on death deed that occurs as a consequence of the named insured's death. (7) "Transferee" means a person who has acquired or received a named insured's insurable interest in real property through a transfer. (8) "Transfer on death deed" has the meaning set forth in IC 32-17-14-3(16). (d) Subject to subsection (e), each transferee of a named insured's insurable interest in real property is also an insured to the extent of the named insured's insurable interest in real property that the transferee has acquired or received through a transfer. (e) Except as provided in subsections (f) and (g) and IC 32-38-3-1, for a period of sixty (60) days immediately following the death of the insured, each transferee is an insured under a property insurance policy insuring the real property the transferee acquired or received through a transfer. At the time of the insured's death, the transferee succeeds to the rights and obligations of the insured under the property insurance policy, to the extent of the insured's insurable interest in real property that the transferee has acquired or received through a transfer, for the sixty (60) day period. (f) If a property insurance policy has a policy expiration date that is less than sixty (60) days after the death of the insured, insurance coverage continues for either: (1) thirty (30) days; or (2) the policy expiration date; whichever is later. (g) If a transferee obtains a property insurance policy insuring the real property the transferee acquired or received through a transfer, the transferee is not an insured on the insurance policy described in subsection (e) once the transferee's property insurance policy becomes effective.