HB 1379-3_ Filed 01/28/2008, 07:30 Fry

Text Box

    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______





    I move that House Bill 1379 be amended to read as follows:

SOURCE: Page 7, line 38; (08)MO137903.7. -->     Page 7, line 38, delete "IC 27-18" and insert " IC 27-8-19.8".
    Page 8, delete lines 7 through 42, begin a new paragraph and insert:
SOURCE: IC 27-4-1-6; (08)MO137903.2. -->     "SECTION 2. IC 27-4-1-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 6. (a) If after a hearing under IC 4-21.5-3, the commissioner determines that the method of competition or the act or practice in question is defined in section 4 of this chapter and that the person complained of has engaged in such method of competition, act, or practice in violation of this chapter, he shall reduce his findings to writing and shall issue and cause to be served on the person charged with the violation an order requiring such person to cease and desist from such method of competition, act, or practice, and the commissioner may at his discretion order one (1) or more of the following:
        (1) Except as provided in subsection (c), payment of a civil penalty of not more than twenty-five thousand dollars ($25,000) for each act or violation. If the person knew or reasonably should have known that he was in violation of this chapter, the penalty may be not more than fifty thousand dollars ($50,000) for each act or violation.
        (2) Suspension or revocation of the person's license, or certificate of authority, if he knew or reasonably should have known he was in violation of this chapter.
    (b) In determining the amount of a civil penalty under subsection (a)(1), the commissioner shall consider the remediation efforts

undertaken by the person.
     (c) For a violation specified in section 4(a)(30) of this chapter, if the person that commits the violation is a viatical settlement provider (as defined in IC 27-8-19.8-5), a viatical settlement broker (as defined in IC 27-8-19.8-4.5), or an insurance producer (as defined in IC 27-1-15.6-2) the civil penalty is an amount equal to the face value of the life insurance policy that is the subject of the viatical settlement contract (as defined in IC 27-8-19.8-6) or proposed viatical settlement contract that is related to the violation.
    (c) (d) All civil penalties imposed and collected under this section shall be deposited in the state general fund.

SOURCE: IC 27-8-19.8-19; (08)MO137903.3. -->     SECTION 3. IC 27-8-19.8-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 19. (a) After a hearing under IC 4-21.5, the department may suspend, revoke, or refuse to renew a viatical settlement provider's license, or impose a civil penalty, or both, if the department finds any of the following:
        (1) There was a misrepresentation in the application for the license.
        (2) The viatical settlement provider is untrustworthy or incompetent to act as a viatical settlement provider.
        (3) The viatical settlement provider demonstrates a pattern of unreasonable payments to viators.
        (4) The viatical settlement provider has been convicted of, or pleaded guilty or nolo contendere to, an offense the definition of which includes fraudulent acts as an element of the offense regardless of whether a judgement has been entered by the court.
        (5) The viatical settlement provider no longer meets the requirements for initial licensure.
        (6) The viatical settlement provider has failed to honor the contractual obligations of a viatical settlement contract.
        (7) The viatical settlement provider has violated this chapter.
     (b) A violation of this chapter by a viatical settlement provider, viatical settlement broker, or insurance producer is an unfair and deceptive act or practice in the business of insurance under IC 27-4-1-4.".
    Delete pages 9 through 58.
    (Reference is to HB 1379 as printed January 25, 2008.)


Representative Fry

MO137903/DI 97     2008