Your Committee on Insurance , to which was referred Senate Bill 195 , 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:
(2) For a contract carrier, common carrier, or other carrier not described in subdivision (1), the minimum level established under 49 U.S.C. 13906(a)(1).
(b) A person who violates this section commits a Class C infraction. However, the offense is a Class A misdemeanor if the person has a prior unrelated judgment for violating this section.
(c) In addition to any other penalty imposed upon a person for a conviction of a Class A misdemeanor under subsection (b), the law enforcement agency may impound the vehicles owned by the person. Unless the vehicle is impounded or forfeited under a law other than this section, the vehicle shall be released to the carrier when the carrier complies with this section.
seeking to have the person's driving privileges reinstated or the
period of suspension modified in accordance with this chapter.
Sec. 3. (a) A person whose driving privileges have been suspended under IC 9-25-8-2 may petition a court to:
(1) reinstate the person's driving privileges; or
(2) modify the period of suspension;
by filing a petition with the court that suspended the person's driving privileges.
(b) A petition filed under this section must include the following:
(1) The date on which the person's driving privileges were suspended.
(2) The period for which the person's driving privileges were suspended.
(3) A description of any other penalties imposed on the person for failure to maintain proof of financial responsibility.
(4) A list of all convictions or judgments the person has accumulated for failure to maintain proof of financial responsibility.
(5) A brief description of why the person is entitled to relief under section 4(b) of this chapter.
(6) A brief description of any other reasons that the person believes that the person is entitled to have the person's driving privileges reinstated or the period of suspension modified.
(c) A petition filed under this section must be verified.
Sec. 4. (a) After receiving a petition filed under this chapter, a court may:
(1) summarily dismiss the petition; or
(2) give notice to the prosecuting attorney and set the matter for hearing to determine whether the person's driving privileges should be reinstated or the period of suspension should be modified.
(b) A court may grant a petition filed under this chapter if the court finds that:
(1) the circumstances that caused the petitioner to fail to maintain proof of financial responsibility:
(A) no longer exist; or
(B) are unlikely to reoccur;
(2) the petitioner:
Sec. 1. Except as provided in section 5 of this chapter, a person may not:
(1) operate as a warrantor; or
(2) represent to the public that the person is a warrantor;
unless the person is registered with the department under this chapter.
Sec. 2. (a) A person who:
(1) operates as a warrantor; or
(2) represents to the public that the person is a warrantor;
must register with the department by filing an application on a form prescribed by the commissioner.
(b) An application filed under subsection (a) must contain the following information:
(1) The warrantor's name, any fictitious name under which the warrantor does business in Indiana, the principal location, mailing address, and telephone number of the warrantor, and corresponding information for any offices maintained in Indiana.
(2) The name and address of the agent of the warrantor for service of process in Indiana, if other than the warrantor.
(3) The names of the warrantor's executive officer or officers directly responsible for the warrantor's vehicle protection product business.
(4) The name, address, and telephone number of any administrators designated by the warrantor to be responsible for the administration of vehicle protection product warranties.
(5) A copy of the warranty reimbursement insurance policy or policies or other financial information required by IC 27-18-4-1.
(6) A copy of each warranty that the warrantor proposes to use.
(7) A statement indicating under which subdivision of IC 27-18-4-1 the warrantor qualifies to do business as a warrantor.
Sec. 3. (a) A registration must be:
(1) updated not later than thirty (30) days after any change
that makes information previously provided under section
2(b) of this chapter no longer correct; and
(2) renewed on an annual basis.
(b) If a warrantor registered under section 2 of this chapter fails to renew the registration by the registration deadline, and a renewal is not filed within thirty (30) days, the warrantor shall be made inactive by the commissioner.
Sec. 4. The department may establish:
(1) a fee for the issuance of a registration; and
(2) a fee for the renewal of registration;
under this chapter in an amount sufficient to implement this article. Fees collected under this section shall be deposited in the department of insurance fund established by IC 27-1-3-28.
Sec. 5. An administrator or person that sells or solicits a sale of a vehicle protection product but is not a warrantor is not required to register as a warrantor or to be licensed under this title to sell a vehicle protection product.
Chapter 4. Financial Responsibility
Sec. 1. A vehicle protection product shall not be sold or offered for sale unless the conditions set forth in at least one (1) of the following subdivisions are met to ensure adequate performance under the warranty:
(1) All of the following apply:
(A) The vehicle protection product warrantor is insured under a warranty reimbursement insurance policy that is issued by an insurer authorized to do business in Indiana.
(B) The warranty reimbursement insurance policy provides that the insurer will pay to, or on behalf of, the warrantor one hundred percent (100%) of all sums that the warrantor legally is obligated to pay according to the warrantor's contractual obligations under the warrantor's vehicle protection product warranty.
(C) A true and exact copy of the warranty reimbursement insurance policy has been filed with the department by the warrantor.
(D) The warranty reimbursement insurance policy contains the provisions required under IC 27-18-5-1.
(2) All of the following apply:
insurance company for reimbursement.
(3) The policy provides that:
(A) a warranty reimbursement insurance company that insures a warranty shall be considered to have received payment of the premium if the warranty holder paid for the vehicle protection product; and
(B) the insurer's liability under the policy shall not be reduced or relieved by a failure of the warrantor, for any reason, to report the issuance of a warranty to the insurer.
(4) The policy has the following provisions regarding cancellation of the policy:
(A) The issuer of a reimbursement insurance policy may not cancel the policy until a notice of cancellation in writing has been mailed or delivered to the commissioner and each insured warrantor.
(B) The cancellation of a reimbursement insurance policy may not reduce the issuer's responsibility for vehicle protection products sold before the date of cancellation.
(C) If an insurer cancels a policy that a warrantor has filed with the commissioner, the warrantor shall do one (1) of the following:
(i) File a copy of a new policy with the commissioner before the termination of the prior policy, to ensure that there is no lapse in coverage following the termination of the prior policy.
(ii) Discontinue offering warranties as of the termination date of the policy until a new policy becomes effective and is accepted by the commissioner.
Chapter 6. Disclosure to Warranty Holder; Incidental Costs
Sec. 1. A vehicle protection product warranty may not be sold or offered unless the warranty does the following:
(A) "The obligations of the warrantor to the warranty holder are guaranteed under a warranty reimbursement insurance policy'' if the warrantor elects to meet its financial responsibility obligations under IC 27-18-4-1(1); or
(B) "The obligations of the warrantor under this warranty
are backed by the full faith and credit of the warrantor" if
the warrantor elects to meet its financial responsibility
obligations under IC 27-18-4-1(2).
(2) States that if a warranty holder must make a claim against a party other than the warranty reimbursement insurance policy holder, the warranty holder may make a direct claim against the insurer upon the failure of the warrantor to pay any claim or meet any obligation under the terms of the warranty within sixty (60) days after proof of loss has been filed with the warrantor, if the warrantor elects to meet its financial obligations under IC 27-18-4-1(1).
(3) States the name and address of the issuer of the warranty reimbursement insurance policy. This information does not need to be preprinted on the warranty form, but may be added to or stamped on the warranty, if the warrantor elects to meet its financial obligations under IC 27-18-4-1(1).
(4) Identifies the:
(B) seller; and
(C) warranty holder.
(5) Sets forth the total purchase price and the terms under which the purchase price is to be paid. However, the purchase price is not required to be preprinted on the vehicle protection product warranty and may be negotiated with the consumer at the time of sale.
(6) Sets forth the procedure for making a claim, and includes the name, mailing address, and telephone number of a contact representing the warrantor.
(7) Sets forth the payments or performance to be provided under the warranty, including:
(A) payment for incidental costs;
(B) the manner of calculation or determination of payment or performance; and
(C) any limitations, exceptions, or exclusions.
(8) Sets forth all the obligations and duties of the warranty holder, including:
(A) the duty to protect against any further damage to the vehicle;
(1) Disclosures for the benefit of the warranty holder.
(2) Record keeping.
(3) Procedures for public complaints.
(4) Conditions under which surplus line insurers may be rejected for the purpose of underwriting vehicle protection product warranty agreements.
Chapter 9. Prohibited Acts
Sec. 1. A vehicle protection product warrantor shall not use in the name, contracts, or literature of the vehicle protection product warrantor the words "insurance", "casualty", "surety", "mutual", or other words descriptive of the insurance, casualty, or surety business or deceptively similar to the name or description of an insurance or a surety corporation, or another vehicle protection product warrantor.
Sec. 2. A vehicle protection product seller or warrantor may not require that a retail purchaser of a vehicle purchase a vehicle protection product as a condition of financing.
Chapter 10. Sanctions and Administrative Penalties
Sec. 1. The commissioner may:
(1) conduct examinations of warrantors, administrators, and other persons to enforce this article; and
(2) take action necessary or appropriate to enforce this article and the rules of the department;
to protect warranty holders.
Sec. 2. If a warrantor engages in a pattern or practice of conduct that appears to violate this article and that the commissioner reasonably believes threatens to render the warrantor insolvent or cause irreparable loss or injury to the property or business of a person, the commissioner shall:
(1) notify the warrantor in writing specifically stating the alleged grounds for sanctions; and
(2) hold a hearing under IC 4-21.5.
Sec. 3. If, after a hearing under section 2 of this chapter, the commissioner finds grounds for sanction, the commissioner may issue:
(1) an order directed to the warrantor to cease and desist from engaging in further acts, practices, or transactions that
are causing the conduct that violates this article;
(2) an order prohibiting the warrantor from selling or offering for sale vehicle protection products in violation of this article;
(3) an order imposing a civil penalty on the warrantor; or
(4) a combination of orders under subdivisions (1) through (3), as applicable.
Sec. 4. The decision, determination, or order of the commissioner under section 3 of this chapter is subject to judicial review under IC 4-21.5.
Sec. 5. The commissioner may bring a civil action in the name of the state through the attorney general, in a circuit or superior court having jurisdiction in a county in which the warrantor does business or in which the property or business of a person may suffer loss or injury from the warrantor, to restrain the warrantor from commencing or continuing to violate any of the following:
(1) This article.
(2) A rule adopted under this article.
(3) An order entered under this article.
Sec. 6. (a) In addition to an order issued against a warrantor under section 3 of this chapter, the commissioner may order the warrantor to pay the department a civil penalty in an amount determined by the commissioner of not more than five hundred dollars ($500) per violation and not more than ten thousand dollars ($10,000) total for all violations of a similar nature.
(b) For purposes of this section, violations are of a similar nature if the violations consist of the same or similar course of conduct, action, or practice, regardless of the number of times the conduct, action, or practice that is determined to be a violation of this article occurred.
(c) Civil penalties collected under this section shall be deposited in the department of insurance fund established by IC 27-1-3-28.
IC 27-18-1, as added by this act, apply throughout this SECTION.
(b) The failure of a person to comply with IC 27-18, as added by this act, before July 1, 2008, is not admissible in a court proceeding, an administrative proceeding, arbitration, or an alternative dispute resolution proceeding and may not be used to prove that the action of a person or the affected vehicle protection product was unlawful or otherwise improper.
(c) The enactment of IC 27-18, as added by this act, does not imply that a vehicle protection product warranty was insurance before July 1, 2008.".
Renumber all SECTIONS consecutively.
(Reference is to SB 195 as printed January 25, 2008.)
and when so amended that said bill do pass.