HB 1191-1_ Filed 01/28/2002, 11:48
Adopted 1/28/2002


Text Box

Adopted Rejected


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COMMITTEE REPORT


                                                        YES:

11

                                                        NO:
0

MR. SPEAKER:
    Your Committee on       Financial Institutions     , to which was referred       House Bill 1191     , has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows:

SOURCE: Page 13, line 2; (02)AM119101.13. -->     Page 13, after line 2, begin a new paragraph and insert:
SOURCE: IC 28-1-11-2.5; (02)AM119101.3. -->     "SECTION 3. IC 28-1-11-2.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 2.5. (a) A bank or trust company may act as an agent for the sale of any life insurance policy or annuity contract issued by a life insurance company (as defined in IC 27-1-2-3) authorized to do business in Indiana under IC 27-1.
    (b) A bank or trust company that acts as an agent for the sale of a life insurance policy or an annuity contract:
        (1) is subject to all requirements of IC 27; and
        (2) must comply with the disclosure requirements under IC 28-1-11-2.6. IC 27-1-38.
    (c) A bank or trust company may not condition:
        (1) an extension of credit;
        (2) a lease or sale of real or personal property;
        (3) the performance of services; or
        (4) the amount charged for:
            (A) extending credit;
            (B) leasing or selling real or personal property; or
            (C) performing services;
upon a person's purchase of a life insurance policy or an annuity contract from the bank or trust company or an affiliate (as defined in IC 28-2-13-3) of the bank or trust company.
    (d) This section does not prohibit a bank or trust company from requiring that a person, as a condition to a transaction, obtain a life insurance policy from an insurance company acceptable to the bank or trust company.
SOURCE: IC 28-5-1-6.5; (02)AM119101.4. -->     SECTION 4. IC 28-5-1-6.5, AS AMENDED BY P.L.132-2001, SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 6.5. (a) Notwithstanding any other provision of this title, an industrial loan and investment company may act as an agent for the sale of any annuity contract issued by a life insurance company (as defined in IC 27-1-2-3) authorized to do business in Indiana under IC 27-1.
    (b) An industrial loan and investment company that acts as an agent for the sale of an annuity contract:
        (1) is subject to all requirements of IC 27 relating to the sale and solicitation of insurance, including licensing as an agent under IC 27-1-15.6; and
        (2) must comply with the disclosure requirements under IC 28-1-11-2.6. IC 27-1-38.
    (c) This section does not give power to, or otherwise affect the power of, an industrial loan and investment company to act as an agent for the sale of life insurance other than an annuity contract.
SOURCE: IC 28-6.1-6-14; (02)AM119101.5. -->     SECTION 5. IC 28-6.1-6-14, AS AMENDED BY P.L.134-2001, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 14. (a) A savings bank may solicit and write insurance as an agent or a broker for any insurance company authorized to do business in the state or states where the agent or broker operates.
    (b) A savings bank or its affiliate (as defined in IC 28-6.2-1-4) may act as an agent for the sale of any life insurance policy or annuity contract issued by a life insurance company (as defined in IC 27-1-2-3) authorized to do business in the state or states where the agent operates.
    (c) A savings bank or its affiliate that acts as an agent for the sale of a life insurance policy or an annuity contract under subsection (b):
        (1) is subject to all requirements of IC 27 with respect to the agent's activity in Indiana; and
        (2) must comply with the disclosure requirements under IC 28-1-11-2.6. IC 27-1-38.
    (d) A savings bank or its affiliate may not condition:
            (A) (1) an extension of credit;
            (B) (2) a lease or sale of real or personal property;
            (C) (3) the performance of a service; or
            (D) (4) the amount charged for:
                (i) (A) extending credit;
                (ii) (B) leasing or selling real or personal property; or
                (iii) (C) performing services;
upon a person's purchase of a life insurance policy or an annuity contract from the savings bank or its affiliate.
    (e) This section does not prohibit a savings bank or its affiliate from requiring that a person, as a condition to a transaction, obtain a life insurance policy from an insurance company acceptable to the savings bank or its affiliate.
SOURCE: IC 28-7-1-9.1; (02)AM119101.6. -->     SECTION 6. IC 28-7-1-9.1, AS AMENDED BY P.L.134-2001, SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 9.1. (a) A credit union or a related credit union service organization (as defined in section 0.5(7) of this chapter) that acts as an agent for the sale of a life insurance policy or an annuity contract issued by a life insurance company (as defined in IC 27-1-2-3):
        (1) is subject to the requirements of IC 27; and
        (2) must comply with the disclosure requirements of IC 28-1-11-2.6. IC 27-1-38.
    (b) A credit union or credit union service organization may not condition:
        (1) an extension of credit;
        (2) a lease or sale of real or personal property;
        (3) the performance of a service; or
        (4) the amount charged for:
            (A) extending credit;
            (B) leasing or selling real or personal property; or
            (C) performing services;
upon a person's purchase of a life insurance policy or an annuity contract from the credit union or related credit union service organization.
    (c) This section does not prohibit a credit union or a credit union service organization from requiring that a person, as a condition to a transaction, obtain a life insurance policy from an insurance company acceptable to the credit union or credit union service organization.
SOURCE: IC 28-14-3-11; (02)AM119101.7. -->     SECTION 7. IC 28-14-3-11, AS AMENDED BY P.L.132-2001, SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 11. (a) Notwithstanding any other provision of this title, a corporate fiduciary may act as an agent for the sale of any annuity contract or any life insurance policy issued by a life insurance company (as defined in IC 27-1-2-3) authorized to do business in Indiana under IC 27-1.
    (b) A corporate fiduciary that acts as an agent for the sale of an annuity contract or a life insurance policy:
        (1) is subject to all requirements of IC 27 relating to the sale and solicitation of insurance, including licensing as an agent under IC 27-1-15.6; and
        (2) must comply with the disclosure requirements under
IC 28-1-11-2.6. IC 27-1-38.
SOURCE: IC 28-1-11-2.6; (02)AM119101.8. -->     SECTION 8. IC 28-1-11-2.6 IS REPEALED [EFFECTIVE JULY 1, 2002].".
    (Reference is to HB 1191 as introduced.)

and when so amended that said bill do pass.

__________________________________

Representative Bodiker


AM119101/DI 94    2002