All Roll Calls
Yes: 218 • No: 13
IndianaHB 1260Second Regular Session 124th General Assembly (2026)HouseWALLET
Various insurance matters.
Sponsored By: Matt Lehman (Republican)
Signed by Governor
insurancethe senateinsurance and financial institutionsappropriations
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Bill Overview
Analyzed Economic Effects
14 provisions identified: 9 benefits, 0 costs, 5 mixed.
Payout limits when insurers go broke
If your insurer is liquidated, the guaranty association pays full covered workers’ compensation benefits. For unearned premiums, it returns the greater of 80% of paid‑but‑unearned premium or $650 per remaining month (up to 12 months), capped at $10,000 per policy and not for amounts of $50 or less. Most covered claims are capped at $300,000; cybersecurity coverage is capped at $300,000 per insured event. High net worth insureds (over $25 million or $50 million in consolidated net worth as of the prior December 31) are excluded from first‑party payments, and the association may recover amounts it paid. The law also clarifies what policy types are covered and defines “cybersecurity insurance.”
Stronger rules for auto and home insurance
The law defines a “material change” as a premium jump of more than 10% (with some exceptions) or other adverse changes. If your auto or homeowner policy has a material change, the insurer must send a written notice. You have 30 days to ask why, and the insurer must explain the main factors within 45 days and share it with your agent. If a nonrenewal is based only on aerial images, the notice must tell you how to get images from the last 24 months, give you at least 60 days to fix issues, and allow an appeal. If you prove the fix, the insurer must offer renewal unless another unrelated reason applies. The law also clarifies what counts as an automobile policy and excludes boats, motorcycles, RVs, and certain specialty vehicles. These personal auto and homeowner rules apply to policies issued, delivered, amended, or renewed on or after January 1, 2027.
State can run a health exchange
The Insurance Commissioner may create and operate a state health benefit exchange. The Commissioner may apply for, accept, and spend federal funds. The Commissioner may also form advisory boards to guide setup and operations.
Stronger backstop for insurer failures
The guaranty association now uses three separate accounts: workers’ compensation, automobile, and all other covered insurance. Class B assessments are capped at 1% of a member insurer’s net direct written premiums per year, and up to $50 per year may be charged for administration. The Commissioner must alert the association within 3 working days of a liquidation and may require notices to insureds, suspend or revoke licenses, or fine unpaid assessments up to 5% per month (at least $100 per month). Indiana courts have exclusive jurisdiction, with venue in Marion County Circuit Court. The law allows sharing confidential regulator information with the association, sets cooperation rules across states, and clarifies how transferred policies are treated in liquidation.
Insurance options for small condominiums
For small two‑family condominiums, co‑owners can choose how to insure. You may buy one master policy, or each owner may buy a separate policy. You still must keep master policy coverage for land, pools, and other shared areas. This starts July 1, 2026.
New fees and waivers for insurance data
Starting July 1, 2026, the Department sets fees for unrestricted data requests (for example, $1,500 per quarter or $6,000 per year for some medical claims; $3,750 per quarter or $15,000 per year for commercial redistributors). Custom data costs $80 per hour (1‑hour minimum) plus $0.03 per person, with a written estimate. If required, analytic environment access is $1,000 per user per month. Member eligibility data is free when bundled; Indiana state and local agencies are exempt for public or non‑redistribution uses; and researchers may get a fee waiver if they publish all results for free. Fees go to the Department of Insurance fund, and the Department must report annual totals to the Budget Committee by November 1 each year.
More notice before auto and home nonrenewals
Insurers must mail you more advance notice before they do not renew your policy. For auto policies, you must get at least 30 days’ written notice. If an independent producer sold the policy, the producer gets notice at least 10 days earlier. For property policies, you must get at least 60 days’ notice. Exceptions include a shown willingness to renew, nonpayment for auto, and transfers to an affiliate with the same or broader coverage for property.
Clear timing for Medigap switches
The 2026 Medigap changes apply to policies delivered, issued, or renewed on or after March 15, 2026. Other parts apply to policies on or after January 1, 2026. If you switch plans under the birthday‑window rule, your new policy starts the first day of the next month that is at least 30 days after you sign the application.
Emergency merger help for farm mutuals
If a farm mutual is about to lose reinsurance within 120 days or faces another emergency, the Commissioner can waive merger rules. The company must notify the Commissioner within 10 days. The Commissioner must decide on the waiver within 90 days.
Producers get full provider lists
Insurers and HMOs must give contracted insurance producers access to complete provider lists. These lists must be posted on the companies’ producer portals. This helps producers guide customers to in‑network care.
Commissioner sets rules and penalties
The Commissioner must adopt rules to carry out this chapter under Indiana’s rulemaking law. The rules include money penalties that match similar insurance penalties. The Commissioner is the sole enforcer. This takes effect July 1, 2026.
Stronger rules to report insurance fraud
Regulated insurers and agents must report suspected insurance fraud to the Department of Insurance or the National Insurance Crime Bureau within 60 days. Good‑faith reporters are immune from civil and criminal liability. If they win an unjustified libel, slander, or similar case, they can get attorney fees and costs. The law also updates the statutory cross‑reference for fraud reporting.
What counts as a homeowner policy
The law sets what counts as a homeowner’s policy starting July 1, 2026. It includes mobile, manufactured, condo, and renter policies that cover the home, belongings, and liability. It excludes farm policies, nonowner‑occupied dwellings, landlord policies, and other non‑homeowner forms.
When new home insurance rules start
The law sets when new small residential insurance rules apply. Sections 4 and new 6.5 apply to eligible policies issued, delivered, amended, or renewed on or after January 1, 2027. These apply to small residential property (up to four units with one as the main home). The statute itself takes effect July 1, 2026.
Sponsors & Cosponsors
Sponsor
Matt Lehman
Republican • House
Cosponsors
Lonnie Randolph
Democratic • Senate
Martin Carbaugh
Republican • House
Scott Baldwin
Republican • Senate
Roll Call Votes
House vote • 2/26/2026
Roll Call 392 on HB1260.05.ENGS.CON01
Yes: 78 • No: 12
Senate vote • 2/24/2026
Roll Call 245 on HB1260.04.COMS
Yes: 48 • No: 0
House vote • 1/28/2026
Roll Call 130 on HB1260.02.COMH
Yes: 92 • No: 1 • Other: 2
Actions Timeline
Signed by the Governor
3/4/2026HousePublic Law 86
3/4/2026HouseSigned by the President Pro Tempore
2/27/2026SenateSigned by the President of the Senate
2/27/2026SenateSigned by the Speaker
2/26/2026HouseHouse concurred with Senate amendments; Roll Call 392: yeas 78, nays 12
2/26/2026HouseSenate conferees appointed: Baldwin, Randolph Lonnie M
2/25/2026SenateHouse advisors appointed: Carbaugh, Mayfield, Campbell, Garcia Wilburn
2/25/2026HouseMotion to concur filed
2/25/2026HouseSenate advisors appointed: Walker K, Qaddoura
2/25/2026SenateHouse conferees appointed: Lehman, Dvorak
2/25/2026HouseThird reading: passed; Roll Call 245: yeas 48, nays 0
2/24/2026SenateHouse dissented from Senate amendments
2/24/2026HouseMotion to dissent filed
2/24/2026HouseReturned to the House with amendments
2/24/2026SenateAmendment #1 (Baldwin) prevailed; voice vote
2/23/2026SenateSecond reading: amended, ordered engrossed
2/23/2026SenateCommittee report: amend do pass, adopted
2/19/2026SenateCommittee report: amend do pass adopted; reassigned to Committee on Appropriations
2/12/2026SenateSenator Randolph added as cosponsor
2/9/2026SenateFirst reading: referred to Committee on Insurance and Financial Institutions
2/2/2026SenateReferred to the Senate
1/29/2026HouseThird reading: passed; Roll Call 130: yeas 92, nays 1
1/28/2026HouseSenate sponsor: Senator Baldwin
1/28/2026HouseSecond reading: ordered engrossed
1/22/2026House
Bill Text
Engrossed House Bill (H)
Enrolled House Bill (H)
House Bill (S)
Introduced House Bill (H)