IndianaHB 1260Second Regular Session 124th General Assembly (2026)HouseWALLET

Various insurance matters.

Sponsored By: Matt Lehman (Republican)

Signed by Governor

Summary

Requires a person or entity to furnish information relating to a fraudulent insurance act to the department of insurance or the National Insurance Crime Bureau. Provides that a person or entity is not subject to civil or criminal liability for filing a report or furnishing other information concerning a fraudulent insurance act under certain circumstances. Sets forth a fee schedule for providing unrestricted data to certain entities from the all payer claims data base. Makes various changes to: (1) provisions relating to notice of material change; and (2) the property and casualty insurance and guaranty association law. Allows the insurance commissioner to waive the requirements for a merger or consolidation of a farm mutual insurance company with any other company if an emergency event occurs. Provides that a policy of insurance that provides coverage in excess of any liability relating to a self-insured retention amount shall be considered a commercial umbrella or excess liability policy under the uninsured and underinsured motorist coverage provision. Requires an insurer of automobile insurance policies to mail a notice of nonrenewal at least 30 days before the expiration of the policy. Requires an insurer of residential policies to: (1) mail a notice of nonrenewal at least 60 days before the expiration of the policy; and (2) take certain actions when the insurer utilizes aerial images as part of the insurer's coverage determinations. Allows co-owners of a condominium that meets certain conditions to obtain property and casualty insurance coverage for the condominium units by purchasing a master policy or by allowing each co-owner to purchase insurance on an individual basis. Requires an insurer and a health maintenance organization to provide an insurance producer with access to a complete list of providers who have entered into a reimbursement agreement with the insurer or health maintenance organization. Provides that the prohibition on denying, conditioning, or discriminating in the pricing of Medicare supplement policies for certain applicants applies to an applicant who submits an application during the period beginning one month before the applicant's birthday and ending one month after the applicant's birthday. Provides that the insurance commissioner has the authority to take certain actions relating to the creation, implementation, or operation of a health benefit exchange. Requires the department of insurance to annually report information to the budget committee regarding the fee schedule for providing unrestricted data that is being added in the bill.

insurancethe senateinsurance and financial institutionsappropriations

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Bill Overview

Analyzed Economic Effects

18 provisions identified: 8 benefits, 1 costs, 9 mixed.

Seniors can switch Medicare supplement insurers

Beginning March 15, 2026, Medicare supplement policyholders age 65 or older get a protected birthday window to change insurers. Applications must fall from one month before through one month after their birthday. They must seek the same lettered plan type, including a variation, from a different insurer. The new insurer cannot deny coverage, add conditions, or set prices based on health, claims, or care received. Replacement coverage starts on the first day of the month after the application is signed.

More time to protect property coverage

Beginning July 1, 2026, property insurers must mail nonrenewal notices at least 60 days before expiration, up from 20 days. Independent agents also get notice at least 10 days before the policyholder's mailing, unless agent notice is waived. When aerial images alone support nonrenewal, insurers must use images from the past 24 months and explain how to obtain them. Insurers must provide an error appeal process, a way to submit repair proof, and at least 60 days to fix problems. Proof of repair requires an offer of renewal, though insurers can still nonrenew for an unrelated reason.

Payment limits when an insurer fails

Beginning July 1, 2026, the Indiana Insurance Guaranty Association pays covered unearned-premium refunds only above $50, capped at $10,000 per policy. Cybersecurity claims share a $300,000 cap for each insured event, regardless of how many claims or claimants are involved. Payments cannot exceed the failed insurer's obligation; other covered claims generally have a $300,000 cap, while covered workers' compensation benefits are paid in full. All bodily injury or death claims involving one person count as one claim. Exclusions bar punitive damages, premium returns under retrospective rating plans, and claims for policy protection for losses incurred but not yet reported.

Failed-insurer claims get new handling rules

Beginning July 1, 2026, the guaranty association can pay covered claims in any reasonable order and direct lawyers and service providers. Third-party claims filed in liquidation go to the association unless the claimant chooses liquidation handling within 30 days. After payment, the association takes over the failed insurer's related rights and duties, including reinsurance rights. It can contest pre-liquidation settlements and judgments involving default, fraud, collusion, or failure to defend. It can also challenge matters from the prior 120 days when reasonable care or appeals were lacking; courts can set matters aside for a defense on the merits.

Wealthy insureds must repay claim advances

Beginning July 1, 2026, the guaranty association can choose to pay third-party or cyber obligations for high-net-worth insureds. The coverage must come from a failed insurer's policy or endorsement, and the association has no continuing duty to pay. It must recover all payments, allocated claim-adjustment expenses, and collection-related attorney fees and court costs from the insured. The association need not pay certain first-party claims for high-net-worth insureds. Insureds must provide financial information; refusal allows high-net-worth treatment until they prove otherwise.

Who gets protection after insurer failure

Guaranty protections recognize named and additional insureds, vendors, lessors, and anyone else identified as insured under the policy. A policy first issued by a member insurer keeps member status after a state-law transfer of sole responsibility if the receiving insurer is liquidated. A policy first issued by a nonmember does not gain that status simply through transfer to a member. Beginning July 1, 2026, cybersecurity-policy coverage remains within the chapter even when it resembles otherwise excluded warranty or service-contract insurance.

Drivers get longer auto nonrenewal notice

For auto policies issued, delivered, amended, or renewed beginning January 1, 2027, nonrenewal notice increases from 20 to 30 days. Insurers must mail that advance notice to the named policyholder. Exceptions cover unpaid premiums, an insurer's willingness to renew, and transfers to an affiliated insurer with equal or broader coverage.

Small condo owners gain insurance choices

Beginning July 1, 2026, qualifying condominium co-owners can insure units through a master policy or buy individual coverage. Every unit must be designed and built for no more than two families and contain no more than two living quarters. Co-owners still must insure land, recreational facilities, and other common-use areas through a master policy.

Earlier coordination when insurers face failure

Beginning July 1, 2026, the insurance commissioner can share protected insurer information to prepare for possible liquidation. Recipients must agree in writing to keep it confidential and use it only for that preparation. The commissioner can help arrange an orderly transition when liquidation is likely and must promptly notify the guaranty association after liquidation. The association must make reasonable efforts to cooperate with other state guaranty associations and receivers. It can use shared data standards and authorize an organization to represent or bind it within the authority granted.

Faster emergency mergers for farm insurers

Beginning July 1, 2026, the commissioner can waive merger or consolidation requirements for farm mutual insurers facing specified emergencies. An insurer qualifies after notice of reinsurance loss within 120 days, or another emergency creating imminent insolvency danger. For an emergency-event merger, the insurer must notify the commissioner within 10 days. The commissioner must decide within 90 days after receiving notice.

Indiana can operate a health exchange

Beginning July 1, 2026, Indiana's insurance commissioner has authority to create, administer, or operate a health benefit exchange. The commissioner can seek, accept, and spend federal money for its creation and operation, and establish advisory groups. This authority does not itself set coverage eligibility, benefits, or a funding amount.

Insurance agents get complete provider lists

Beginning July 1, 2026, insurers and health maintenance organizations must give their contracted insurance agents access to complete provider lists. They must post those lists on their agent communication portals. This improves agents' access to network information but does not change household coverage or provider eligibility.

Narrower premium rules, clearer explanation deadlines

The chapter takes effect July 1, 2026, for covered personal policies issued, delivered, amended, or renewed beginning January 1, 2027. A material change means a premium increase more than 10% beyond increases in the insurer's filed rate plan. Coverage reductions no longer count; exclusions also cover filed-rate, automatic inflation, customer-requested, telematics, and property-inspection changes. Later phased increases are excluded when their schedule is filed or a single policy-period increase is no more than 10%. After notice of a right to an explanation, policyholders have 30 days to request one in writing; insurers have 45 days to respond.

Which households receive policy notice protections

The notice chapter covers personal policies issued, delivered, amended, or renewed beginning January 1, 2027. It includes private-passenger-rated auto policies and homeowner forms for mobile, manufactured, and condominium homes, plus renters insurance. Exclusions include boats, inland marine coverage, motorcycles, off-road and recreational vehicles, trailers, fleets, antique, collector, classic, and specialty vehicles. Farm, landlord, nonowner-occupied dwelling, and residential policies not on homeowner forms are excluded, as are unlisted personal policy types. The chapter excludes federal credit-reporting notices and refusals to offer coverage; the insurance commissioner alone enforces it and must set monetary penalties consistent with similar insurance violations.

Fraud reporting duties and stronger protections

Beginning July 1, 2026, insurance-regulated people and entities must report known or reasonably suspected fraud within 60 days after notice. Reports go to Indiana's insurance department or the National Insurance Crime Bureau, which must share them with the department. Fraud includes knowingly false insurance applications, ratings, claims, premiums, licensing or financial records, and acts involving insolvent insurers or diverted assets. Reporters acting without malice, fraudulent intent, or bad faith receive civil and criminal protection, including entities; existing legal privileges remain intact. Protected reporters who win related libel, slander, or other tort suits recover legal fees and costs when the suit lacked substantial justification.

Insurance data requests carry new fees

Beginning July 1, 2026, listed insurance data costs $125–$3,750 quarterly or $500–$15,000 annually, depending on requester and dataset. Custom data costs $80 per hour, with a one-hour minimum, plus $0.03 per person; a written estimate is required first. Required analytic-workspace access adds $1,000 per user per month. Qualifying Indiana state and local agency requests are free, as is member-eligibility data requested with another dataset. Researchers can seek fee waivers when all findings are published free to the public. Fees enter the Department of Insurance Fund, with annual reporting on collections, recipients, added charges, licensing totals, and fund balance beginning November 1, 2026.

Commercial excess policies have coverage exceptions

Beginning July 1, 2026, liability coverage above a self-insured retention counts as commercial umbrella or excess insurance. Insurers need not offer uninsured or underinsured motorist coverage in commercial umbrella or excess policies and can choose umbrella limits. They must give written notice when a rider or endorsement reduces or removes that motorist coverage. Where motorist-coverage requirements apply, statutory bodily-injury minimums apply and underinsured coverage cannot be less than $50,000. Written rejection by the named insured binds all insureds, and an underlying commercial-policy rejection carries over to umbrella or excess coverage.

Insurers face revised guaranty funding charges

Beginning July 1, 2026, member insurers fund guaranty administration through Class A charges and insolvency duties through premium-based Class B charges. Charges stay separate across three accounts and cannot exceed 1% of an insurer's prior-year net direct written premiums per account annually. Class B charges stop while account assets cover estimated liquidation payments; proportional Class A charges may offset future Class B charges. The law removes the extra administrative charge of up to $50 per insurer yearly. The association can borrow, contract, sue, and return excess assets proportionally, retaining reserves up to 10% of excess assets; reserves and earnings fund only claims and authorized expenses. Nonpayment can trigger license revocation or monthly fines up to 5% of unpaid charges, with a $100 monthly minimum.

Sponsors & Cosponsors

Sponsor

  • Matt Lehman

    Republican • House

Cosponsors

  • Lonnie Randolph

    Democratic • Senate

  • Martin Carbaugh

    Republican • House

  • Scott Baldwin

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 218 • No: 13

House vote • 2/26/2026

House concurred with Senate amendments

Yes: 78 • No: 12

Senate vote • 2/24/2026

Third reading: passed

Yes: 48 • No: 0

House vote • 1/28/2026

Third reading: passed

Yes: 92 • No: 1

Actions Timeline

  1. Public Law 86

    3/4/2026House
  2. Signed by the Governor

    3/4/2026House
  3. Signed by the President Pro Tempore

    2/27/2026Senate
  4. Signed by the President of the Senate

    2/27/2026Senate
  5. House concurred with Senate amendments; Roll Call 392: yeas 78, nays 12

    2/26/2026House
  6. Signed by the Speaker

    2/26/2026House
  7. Senate advisors appointed: Walker K, Qaddoura

    2/25/2026Senate
  8. Senate conferees appointed: Baldwin, Randolph Lonnie M

    2/25/2026Senate
  9. House advisors appointed: Carbaugh, Mayfield, Campbell, Garcia Wilburn

    2/25/2026House
  10. House conferees appointed: Lehman, Dvorak

    2/25/2026House
  11. Motion to concur filed

    2/25/2026House
  12. Third reading: passed; Roll Call 245: yeas 48, nays 0

    2/24/2026Senate
  13. Returned to the House with amendments

    2/24/2026Senate
  14. Motion to dissent filed

    2/24/2026House
  15. House dissented from Senate amendments

    2/24/2026House
  16. Amendment #1 (Baldwin) prevailed; voice vote

    2/23/2026Senate
  17. Second reading: amended, ordered engrossed

    2/23/2026Senate
  18. Committee report: amend do pass, adopted

    2/19/2026Senate
  19. Committee report: amend do pass adopted; reassigned to Committee on Appropriations

    2/12/2026Senate
  20. Senator Randolph added as cosponsor

    2/9/2026Senate
  21. First reading: referred to Committee on Insurance and Financial Institutions

    2/2/2026Senate
  22. Referred to the Senate

    1/29/2026House
  23. Third reading: passed; Roll Call 130: yeas 92, nays 1

    1/28/2026House
  24. Senate sponsor: Senator Baldwin

    1/28/2026House
  25. Amendment #1 (Garcia Wilburn) motion withdrawn

    1/22/2026House

Bill Text

  • Engrossed House Bill (H)

  • Enrolled House Bill (H)

  • House Bill (S)

  • Introduced House Bill (H)

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