Ind. Code ch. 27-7-12

Ind. Code ch. 27-7-12
in effect

Ind. Code § 27-7-12-1 Applicability of chapter; exceptions

Sec. 1. (a) Except as provided in subsection (b), this chapter applies to policies of insurance covering risks to property located in Indiana that take effect or are renewed after June 30, 2001, and that insure loss of or damage to: (1) real property consisting of not more than four (4) residential units, one (1) of which is the principal place of residence of the named insured; or (2) personal property: (A) in which the named insured has an insurable interest; and (B) that is used within a residential dwelling for personal, family, or household purposes. (b) Section 4 of this chapter, as amended in the 2026 session of the general assembly, and section 6.5 of this chapter, as added in the 2026 session of the general assembly, apply to policies of insurance described in subsection (a) that are issued, delivered, amended, or renewed on or after January 1, 2027. (c) This chapter does not apply to the following: (1) A policy of inland marine insurance. (2) The cancellation or nonrenewal of an automobile insurance policy under IC 27-7-6. (3) The cancellation or nonrenewal of a commercial property and casualty insurance policy under IC 27-1-31-2.5. As added by P.L.203-2001, SEC.10. Amended by P.L.86-2026, SEC.21.

Ind. Code § 27-7-12-2 Definitions

Sec. 2. (a) As used in this chapter, "aerial image" means an image of a named insured's property captured from an airborne platform. (b) As used in this chapter, "cancellation" refers to a termination of property insurance coverage that occurs during the policy term. (c) As used in this chapter, "nonpayment of premium" means the failure of the named insured to discharge any obligation in connection with the payment of premiums on policies of insurance subject to this chapter, regardless of whether the payments are directly payable to the insurer or its agent or indirectly payable under a premium finance plan or extension of credit. The term includes the failure to pay dues or fees where payment of the dues or fees is a prerequisite to obtaining or continuing property insurance coverage. (d) As used in this chapter, "nonrenewal" or "nonrenewed" refers to a termination of property insurance coverage that occurs at the end of the policy term. (e) As used in this chapter, "renewal" or "to renew" refers to: (1) the issuance and delivery by an insurer at the end of a policy period of a policy superseding a policy previously issued and delivered by the same insurer; or (2) the issuance and delivery of a certificate or notice extending the term of an existing policy beyond its policy period or term. (f) As used in this chapter, "termination" means a cancellation or nonrenewal. The term does not include: (1) the requirement of a reasonable deductible; (2) reasonable changes in the amount of insurance; or (3) reasonable reductions in policy limits or coverage; if the requirements or changes are directly related to the hazard involved and are made on the renewal date for the policy. The term does not include a transfer of a policy to another insurer. As added by P.L.203-2001, SEC.10. Amended by P.L.86-2026, SEC.22.

Ind. Code § 27-7-12-3 Notice of cancellation

Sec. 3. (a) Notice of cancellation of property insurance coverage by an insurer must: (1) be in writing; (2) be mailed to the named insured at the last known address of the named insured; (3) state the effective date of the cancellation; and (4) upon request of the named insured, be accompanied by a written explanation of the specific reasons for the cancellation. (b) An insurer shall mail written notice of cancellation to the named insured at least: (1) ten (10) days before canceling a policy, if the cancellation is for nonpayment of a premium; (2) twenty (20) days before canceling a policy, if: (A) the cancellation occurs more than sixty (60) days after the date of issuance of the policy; or (B) the insurer has received a copy of a complaint under IC 32-30-10.5-8(d)(2) concerning the property; and (3) ten (10) days before canceling a policy, if the cancellation occurs not more than sixty (60) days after the date of issuance of the policy. (c) If the policy was procured by an independent insurance producer licensed in Indiana, the insurer shall mail notice of cancellation to the insurance producer not less than ten (10) days before the insurer mails the notice to the named insured, unless the obligation to notify the insurance producer is waived in writing by the insurance producer. As added by P.L.203-2001, SEC.10. Amended by P.L.178-2003, SEC.55; P.L.116-2011, SEC.3; P.L.196-2021, SEC.37.

Ind. Code § 27-7-12-4 Notice of nonrenewal

Sec. 4. (a) Notice of nonrenewal by an insurer must: (1) be in writing; (2) be mailed to the named insured at the last known address of the named insured; (3) state the insurer's intention not to renew the policy upon expiration of the current policy period; (4) upon request of the named insured, be accompanied by a written explanation of the specific reasons for the nonrenewal; (5) be mailed to the named insured at least sixty (60) days before the expiration of the current policy period; and (6) comply with section 6.5(a)(1) of this chapter if the insurer used aerial images as the sole reason for nonrenewing a policy. (b) If the policy was procured by an independent insurance producer licensed in Indiana, the insurer shall mail notice of nonrenewal to the insurance producer not less than ten (10) days before the insurer mails the notice to the named insured under subsection (a), unless the obligation to notify the insurance producer is waived in writing by the insurance producer. (c) Notice of nonrenewal under this section is not required if: (1) the named insured is transferred from an insurer to an affiliate of the insurer for future coverage; and (2) the transfer results in the same or broader coverage. (d) If an insurer mails to an insured a renewal notice, bill, certificate, or policy indicating the insurer's willingness to renew a policy and the insured does not respond, the insurer is not required to mail to the insured notice of intention not to renew. As added by P.L.203-2001, SEC.10. Amended by P.L.178-2003, SEC.56; P.L.148-2017, SEC.17; P.L.196-2021, SEC.38; P.L.86-2026, SEC.23.

Ind. Code § 27-7-12-5 Sufficiency of explanations; coverage considered renewed where notice not given

Sec. 5. (a) A written explanation provided under section 3 or 4 of this chapter must be of sufficient clarity and specificity to enable a reasonable lay person to identify the basis for the insurer's decision without further inquiry. (b) If notice is not provided under section 4 of this chapter, coverage is considered to be renewed only for the ensuing policy period upon payment of the appropriate premiums under the same terms and conditions, and subject to section 6 of this chapter, unless the named insured has accepted replacement coverage with another insurer or unless the named insured has agreed to the nonrenewal. As added by P.L.203-2001, SEC.10.

Ind. Code § 27-7-12-6 Grounds for cancellation of policies in effect for more than 60 days

Sec. 6. After coverage has been in effect for more than sixty (60) days or after the effective date of a renewal policy, a notice of cancellation shall not be issued unless cancellation is based on at least one (1) of the following: (1) Nonpayment of a premium. (2) Discovery of fraud or material misrepresentation made by or with the knowledge of the named insured in obtaining the policy, continuing the policy, or in presenting a claim under the policy. (3) Discovery of willful or reckless acts or omissions on the part of the named insured that increase a hazard insured against. (4) The occurrence of a change in the risk that substantially increases a hazard insured against after insurance coverage has been issued or renewed. (5) A violation of any local fire, health, safety, building, or construction regulation or ordinance with respect to an insured property or the occupancy of the property that substantially increases any hazard insured against. (6) A determination by the insurance commissioner that the continuation of the policy would place the insurer in violation of the insurance laws of Indiana. (7) Real property taxes owing on the insured property have been delinquent for two (2) or more years and continue to be delinquent at the time notice of cancellation is issued. As added by P.L.203-2001, SEC.10.

Ind. Code § 27-7-12-6.5 Use of aerial imaging in nonrenewal decision; required actions of insurers; adoption of rules

Sec. 6.5. (a) When utilizing aerial images as the sole reason for nonrenewing a policy, an insurer shall do the following: (1) Ensure that the nonrenewal notice sent to the named insured under section 4 of this chapter includes information about how the named insured can request to review copies of the images of the property that were used to make the decision. Photos must have been taken within the past twenty-four (24) months. (2) Establish a point of contact and a process for a named insured to use to provide documentation of completion of the required work that the insurer communicates to the named insured under subdivision (1). The documentation must be used by the insurer in considering whether to uphold or reverse the nonrenewal. (3) Establish an appeal process that allows the named insured to correct any errors or misunderstandings related to the nonrenewal. (4) Provide the named insured at least sixty (60) days to cure the defects or conditions underlying a nonrenewal after the date the insurer identifies the specific conditions under subdivision (1). An insurer shall have the right to assess the work used to cure the defects or conditions to ensure they have been corrected in a manner that meets the standards originally communicated by the insurer under subdivision (1). (5) Offer a renewal policy to a named insured who submits proof that they have cured the defects or conditions identified under subdivision (1). However, an insurer may nonrenew the policy only for a reason unrelated to the defects or conditions identified under subdivision (1). (b) The department shall adopt rules under IC 4-22-2 to effectuate the provisions of this section. As added by P.L.86-2026, SEC.24.

Ind. Code § 27-7-12-7 Prohibited grounds for termination

Sec. 7. Termination of property insurance coverage by an insurer is prohibited if the termination is based on any of the following: (1) Upon the race, religion, nationality, ethnic group, age, sex, or marital status of the applicant or named insured. (2) Solely upon the lawful occupation or profession of the applicant or named insured. However, this subdivision does not apply to an insurer that limits its market to one (1) lawful occupation or profession or to several related lawful occupations or professions. (3) Upon the age or location of the residence of the applicant or named insured, unless that decision is for a business purpose that is not a mere pretext for a decision based on factors prohibited in this chapter or any other provision of this title. (4) Upon the fact that another insurer previously declined to insure the applicant or terminated an existing policy in which the applicant was the named insured. (5) Upon the fact that the applicant or named insured previously obtained insurance coverage through a residual market insurance mechanism. As added by P.L.203-2001, SEC.10.

Ind. Code § 27-7-12-9 Immunity from civil liability

Sec. 9. (a) The following persons are immune from civil liability for any communication giving notice of or specifying the reasons for a termination or for any statement made in connection with an attempt to discover or verify the existence of conditions that would be a reason for a termination under this chapter: (1) Employees of the department of insurance. (2) An insurer or its authorized representative, agent, or employee. (3) A licensed insurance producer. (4) A person furnishing information to an insurer as to reasons for a termination. (b) This section does not apply to statements made in bad faith with malice in fact. As added by P.L.203-2001, SEC.10. Amended by P.L.178-2003, SEC.57.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/27Fetched: 10/17/2026

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