Bill Text: IN HB1024 | 2011 | Regular Session | Introduced
Bill Title: Property insurance.
Spectrum: Bipartisan Bill
Status: (Passed) 2011-05-16 - Effective 07/01/2011 [HB1024 Detail]
Download: Indiana-2011-HB1024-Introduced.html
Citations Affected: IC 27-7-12-3; IC 32-30-10.5-8.
Synopsis: Notice of foreclosure to property insurers. Requires an
insurer to provide a written notice of policy cancellation to the named
insured at least 20 days before canceling a policy covering residential
property if the insurer has received a copy of the complaint filed in the
foreclosure action concerning the insured property. Requires the
creditor in a residential property foreclosure action to send a copy of
the complaint to the insurance company of record.
Effective: July 1, 2011.
January 5, 2011, read first time and referred to Committee on Insurance.
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(1) be in writing;
(2) be delivered or mailed to the named insured at the last known address of the named insured;
(3) state the effective date of the cancellation; and
(4) upon request of the named insured, be accompanied by a written explanation of the specific reasons for the cancellation.
(b) An insurer shall provide written notice of cancellation to the named insured at least:
(1) ten (10) days before canceling a policy, if the cancellation is for nonpayment of a premium;
(2) twenty (20) days before canceling a policy, if:
(A) the cancellation occurs more than sixty (60) days after the date of issuance of the policy; or
(B) the insurer has received a copy of a complaint under
IC 32-30-10.5-8(d)(2) concerning the property; and
(3) ten (10) days before canceling a policy, if the cancellation
occurs not more than sixty (60) days after the date of issuance of
the policy.
(c) If the policy was procured by an independent insurance producer
licensed in Indiana, the insurer shall deliver or mail notice of
cancellation to the insurance producer not less than ten (10) days
before the insurer delivers or mails the notice to the named insured,
unless the obligation to notify the insurance producer is waived in
writing by the insurance producer.
(1) Inform the debtor that:
(A) the debtor is in default;
(B) the debtor is encouraged to obtain assistance from a mortgage foreclosure counselor; and
(C) if the creditor proceeds to file a foreclosure action and obtains a foreclosure judgment, the debtor has a right to do the following before a sheriff's sale is conducted:
(i) Appeal a finding of abandonment by a court under IC 32-29-7-3(a)(2).
(ii) Redeem the real estate from the judgment under IC 32-29-7-7.
(iii) Retain possession of the property under IC 32-29-7-11(b), subject to the conditions set forth in IC 32-29-7-11(b).
(2) Provide the contact information for the Indiana Foreclosure Prevention Network.
(3) Include the following statement printed in at least 14 point boldface type:
"NOTICE REQUIRED BY STATE LAW
Mortgage foreclosure is a complex process. People may approach you about "saving" your home. You should be careful about any such promises. There are government
agencies and nonprofit organizations you may contact for
helpful information about the foreclosure process. For the
name and telephone number of an organization near you,
please call the Indiana Foreclosure Prevention Network.".
(b) The notice required by subsection (a) shall be sent to:
(1) the address of the mortgaged property; or
(2) the last known mailing address of the debtor if the creditor's
records indicate that the mailing address of the debtor is other
than the address of the mortgaged property.
If the creditor provides evidence that the notice required by subsection
(a) was sent by certified mail, return receipt requested, and as
prescribed by this subsection, it is not necessary that the debtor accept
receipt of the notice for an action to proceed as allowed under this
chapter.
(c) Except as provided in subsection (e) and section 10(g) of this
chapter, if a creditor files an action to foreclose a mortgage, the creditor
shall include with the complaint served on the debtor a notice that
informs the debtor of the debtor's right to participate in a settlement
conference. The notice must be in a form prescribed by the Indiana
housing and community development authority created by IC 5-20-1-3.
The notice must inform the debtor that the debtor may schedule a
settlement conference by notifying the court, not later than thirty (30)
days after the notice is served, of the debtor's intent to participate in a
settlement conference.
(d) In a foreclosure action filed under IC 32-30-10-3 after June 30,
2009, the creditor shall:
(1) attach to the complaint filed with the court a copy of the
notices sent to the debtor under subsections (a) and (c); and
(2) send 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.
(e) A creditor is not required to send the notices described in this
section if:
(1) the mortgage is secured by a dwelling that is not the debtor's
primary residence;
(2) the mortgage has been the subject of a prior foreclosure
prevention agreement under this chapter and the debtor has
defaulted with respect to the terms of that foreclosure prevention
agreement; or
(3) bankruptcy law prohibits the creditor from participating in a
settlement conference under this chapter with respect to the
mortgage.
