HB 1379-2_ Filed 01/28/2008, 07:30 Fry
PREVAILED Roll Call No. _______
FAILED Ayes _______
WITHDRAWN Noes _______
RULED OUT OF ORDER
HOUSE MOTION ____
I move that House Bill 1379 be amended to read as follows:
SOURCE: Page 7, line 38; (08)MO137904.7. -->
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)MO137904.2. -->
"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
(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,
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)MO137904.3. -->
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
(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,
a viatical settlement broker, or an insurance producer is an unfair
and deceptive act or practice in the business of insurance under
SOURCE: IC 27-8-19.8-27; (08)MO137904.4. -->
SECTION 4. IC 27-8-19.8-27 IS ADDED TO THE INDIANA
CODE AS A NEW
SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 27. (a) This section does not apply
to a viatical settlement contract that was entered into before July
(b) A person shall not engage in any activity in relation to a
viatical settlement contract.
(c) A viatical settlement contract that is entered into after June
30, 2008, is void.
(d) A person that violates this section commits an unfair and
deceptive act or practice in the business of insurance under
Delete pages 9 through 58.
(Reference is to HB 1379 as printed January 25, 2008.)
MO137904/DI 97 2008