An insurer may not use a retained asset account unless, before the policy proceeds are transferred to the retained asset account, the insurer:

1. (1) informs:

   1. (A) the beneficiary;
   2. (B) the legal representative of the beneficiary; or

   3. (C) in the case of a group policy, the policy owner;

      of the beneficiary's right to a lump sum payment of the full amount of the policy proceeds; and

2. (2) makes the disclosure described in section 8(c) of this chapter to the beneficiary.

As added by P.L.67-2011, SEC.1.