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Adopted Rejected


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COMMITTEE REPORT


                                                        YES:

11

                                                        NO:
0

MR. SPEAKER:
    Your Committee on       Insurance     , to which was referred       House Bill 1024     , 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 1, line 1; (11)AM102405.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 27-1-13-16; (11)AM102405.1. -->     "SECTION 1. IC 27-1-13-16, AS AMENDED BY P.L.3-2008, SECTION 208, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 16. (a) This section applies to a policy of insurance that:
        (1) covers first party loss to property located in Indiana; and
        (2) insures against loss or damage to:
            (A) real property consisting of not more than four (4) residential units, one (1) of which is the principal place of residence of the named insured; or
            (B) personal property in which the named insured has an insurable interest and that is used within a residential dwelling for personal, family, or household purposes.
    (b) An insurer that reduces, restricts, or removes, through a rider or an endorsement, coverage provided by a policy of insurance must provide to the named insured written notice, through the United States mail or by electronic means, of the changes to the policy. The written notice required by this subsection must:
        (1) be part of a document that is separate from the rider or endorsement;
        (2) be printed in at least 12 point type, 1 point leaded;
        (3) consist of text that achieves a minimum score of forty (40) on the Flesch reading ease test or an equivalent score on a comparable test approved by the commissioner as provided by IC 27-1-26-6;
        (4) identify the forms, provisions, or endorsements that are changed;
        (5) indicate the name and contact information of
            (A) the servicing insurance producer for the policy, if any; and
            (B) the insurer
        whom that the named insured may contact for assistance with any questions concerning the policy changes;
        (6) indicate whether a premium adjustment will result from the policy changes; and
        (7) set forth any options available to the named insured to repurchase the coverage that has been reduced, restricted, or removed.
    (c) If the notice required under subsection (b) is sent through the United States mail, the outside of the envelope used to mail the notice must contain the following statement in at least 14 point type: "Coverage has been reduced, restricted, or removed from your policy.".
    (d) The insurer bears the burden to prove that notice was sent to the named insured in accordance with this section. If the notice is sent through the United States mail, proof of mailing as described in IC 27-7-6-7 is sufficient proof of the notice.
    (e) The commissioner may adopt rules under IC 4-22-2 to implement this section.
SOURCE: IC 27-7-5-2; (11)AM102405.2. -->     SECTION 2. IC 27-7-5-2, AS AMENDED BY P.L.124-2009, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. (a) Except as provided in subsection subsections (d) and (f), the insurer shall make available, in each

automobile liability or motor vehicle liability policy of insurance which is delivered or issued for delivery in this state with respect to any motor vehicle registered or principally garaged in this state, insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any person and for injury to or destruction of property to others arising from the ownership, maintenance, or use of a motor vehicle, or in a supplement to such a policy, the following types of coverage:
        (1) in limits for bodily injury or death and for injury to or destruction of property not less than those set forth in IC 9-25-4-5 under policy provisions approved by the commissioner of insurance, for the protection of persons insured under the policy who are legally entitled to recover damages from owners or operators of uninsured or underinsured motor vehicles because of bodily injury, sickness or disease, including death, and for the protection of persons insured under the policy who are legally entitled to recover damages from owners or operators of uninsured motor vehicles for injury to or destruction of property resulting therefrom; or
        (2) in limits for bodily injury or death not less than those set forth in IC 9-25-4-5 under policy provisions approved by the commissioner of insurance, for the protection of persons insured under the policy provisions who are legally entitled to recover damages from owners or operators of uninsured or underinsured motor vehicles because of bodily injury, sickness or disease, including death resulting therefrom.
The uninsured and underinsured motorist coverages must be provided by insurers for either a single premium or for separate premiums, in limits at least equal to the limits of liability specified in the bodily injury liability provisions of an insured's policy, unless such coverages have been rejected in writing by the insured. However, underinsured motorist coverage must be made available in limits of not less than fifty thousand dollars ($50,000). At the insurer's option, the bodily injury liability provisions of the insured's policy may be required to be equal to the insured's underinsured motorist coverage. Insurers may not sell or provide underinsured motorist coverage in an amount less than fifty thousand dollars ($50,000). Insurers must make underinsured motorist coverage available to all existing policyholders on the date of the first

renewal of existing policies that occurs on or after January 1, 1995, and on any policies newly issued or delivered on or after January 1, 1995. Uninsured motorist coverage or underinsured motorist coverage may be offered by an insurer in an amount exceeding the limits of liability specified in the bodily injury and property damage liability provisions of the insured's policy.
    (b) A named insured of an automobile or motor vehicle liability policy has the right, in writing, to:
        (1) reject both the uninsured motorist coverage and the underinsured motorist coverage provided for in this section; or
        (2) reject either the uninsured motorist coverage alone or the underinsured motorist coverage alone, if the insurer provides the coverage not rejected separately from the coverage rejected.
A rejection of coverage under this subsection by a named insured is a rejection on behalf of all other named insureds, all other insureds, and all other persons entitled to coverage under the policy. No insured may have uninsured motorist property damage liability insurance coverage under this section unless the insured also has uninsured motorist bodily injury liability insurance coverage under this section. Following rejection of either or both uninsured motorist coverage or underinsured motorist coverage, unless later requested in writing, the insurer need not offer uninsured motorist coverage or underinsured motorist coverage in or supplemental to a renewal or replacement policy issued to the same insured by the same insurer or a subsidiary or an affiliate of the originally issuing insurer. Renewals of policies issued or delivered in this state which have undergone interim policy endorsement or amendment do not constitute newly issued or delivered policies for which the insurer is required to provide the coverages described in this section.
    (c) A rejection under subsection (b) must specify:
        (1) that the named insured is rejecting:
            (A) the uninsured motorist coverage;
            (B) the underinsured motorist coverage; or
            (C) both the uninsured motorist coverage and the underinsured motorist coverage;
        that would otherwise be provided under the policy; and
        (2) the date on which the rejection is effective.
    (d) An insurer is not required to make available the coverage

described in subsection (a) in a commercial umbrella or excess liability policy, including a commercial umbrella or excess liability policy that is issued or delivered to a motor carrier (as defined in IC 8-2.1-17-10) that is in compliance with the minimum levels of financial responsibility set forth in 49 CFR Part 387.
    (e) A rejection under subsection (b) of uninsured motorist coverage or underinsured motorist coverage in an underlying commercial policy of insurance is also a rejection of uninsured motorist coverage or underinsured motorist coverage in a commercial umbrella or excess liability policy.
     (f) An insurer is not required to make available the coverage described in subsection (a) in connection with coverage that:
        (1) is related to or included in a commercial policy of property and casualty insurance described in Class 2 or Class 3 of IC 27-1-5-1; and
        (2) covers a loss related to a motor vehicle that:
            (A) is not owned by the insured; and
            (B) is used for the business purposes of the insured.
".

SOURCE: Page 3, line 26; (11)AM102405.3. -->     Page 3, line 26, delete ":" and insert " do the following:".
    Page 3, line 27, delete "attach" and insert "Attach".
    Page 3, line 28, delete "; and" and insert ".".
    Page 3, delete lines 29 through 31, begin a new line block indented and insert:
        " (2) At the time the complaint is filed with the court, send:
            (A) by certified mail, return receipt requested; and
            (B) to the last known mailing address of the insurance company;
        a copy of the complaint filed with the court to the insurance company of record for the property that is the subject of the foreclosure action.

If the creditor provides evidence that a copy of the complaint was sent by the method prescribed by subdivision (2), it is not necessary that the insurance company accept receipt of the copy of the complaint for the creditor to satisfy the requirement of subdivision (2). A creditor's failure to provide a copy of the complaint as
required by subdivision (2) does not prevent an action from proceeding as allowed under this chapter.
".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1024 as introduced.)

and when so amended that said bill do pass.

__________________________________

Representative Lehman


AM102405/DI 97    2011