20 Hoosier Banker May 2016 Continued from page 19. for a CPAP transaction with a funded amount of less than $5,000; and (ii) $500 for a CPAP transaction with a funded amount of at least $5,000; in connection with a CPAP transaction; (3) specifies that other than these fees and charges, a CPAP provider may not assess or collect any other fee or charge in connection with a CPAP transaction; (4) specifies that a CPAP transaction is not a loan; (5) specifies that provisions in the Uniform Consumer Credit Code concerning the regular schedule of payments and maximum loan term that otherwise apply to supervised loans do not apply to CPAP transactions; (6) establishes certain requirements, including specified disclosures, for a CPAP contract and requires that, if the consumer entering into the CPAP transaction is represented by an attorney, the consumer’s attorney must review the CPAP contract; (7) sets forth prohibited acts with respect to: (a) CPAP providers; and (b) attorneys representing consumer claimants; (8) provides that after Dec. 31, 2016, a person may not regularly engage in the business of making CPAP transactions in Indiana unless the person obtains, and maintains on an annual basis, a CPAP license issued by the Department of Financial Institutions (DFI); and (9) allows the DFI to adopt rules or policies to implement these provisions. Details: The IBA sought an amendment to the language in this bill that created a super priority lien of a lender for a lawsuit lender in circumstances where a lender would have extended credit. This provision was removed at the request of the IBA. The General Assembly has tried to regulate the civil proceeding advance payment transaction industry (lawsuit lenders) for the last six years. Lawsuit lenders extend credit to individuals who have pending lawsuits, and the loan is often an amount based upon the possible payout amount of the lawsuit. This industry has been operating largely unregulated in Indiana since the inception of the business model. HB 1127 now regulates this practice by placing the businesses under the DFI’s jurisdiction and sets certain caps regarding fees and interest rates. HB 1136 – Insurance Matters Rep. Matt Lehman, R-Berne Sen. Travis Holdman, R-Markle Bill summary: This bill has the following provisions: (1) requires gaming facilities to pay to the state a special worker’s compensation fee and removes a requirement for gaming facilities to reimburse the state for certain worker’s compensation expenses; (2) amends the application of the annual audited financial report law to domestic insurers; (3) specifies that an insurer is not prevented from making available a named driver exclusion in a commercial motor vehicle policy; (4) provides for suspension of a nonresident insurance producer license and a nonresident public adjuster license if the home state license is not effective in good standing; (5) specifies certain requirements for a domestic insurer that is part of an insurance holding company system, including requirements related to financial disclosures and activities; (6) defines and specifies requirements for supervision of an internationally active insurance group, including determination of a supervising regulatory official; (7) specifies penalties for violations of the insurance holding company system law; (8) requires certain information to be provided to and submitted to a database by a closing agent within a certain period following a real estate or mortgage transaction; (9) amends the definition of “good funds” for purposes of the law concerning escrow disbursements by closing agents in real estate transactions; (10) defines “small employer” for purposes of health insurance plans that are not grandfathered under federal law; (11) requires health coverage independent review organizations to provide notice of an expedited determination within 72 hours after the grievance or review is filed, rather than 24 hours after the determination is made; (12) provides for the Property and Casualty Insurance Guaranty Association to obtain reimbursement for certain payments in connection with large deductible worker’s compensation policies; (13) allows the Department of Insurance Commissioner, in insurer supervision proceedings, to pursue insurance proceeds for certain acts or omissions of officers and directors of the supervised insurer; (14) urges the Legislative Council to assign to an interim study committee a subject concerning bond related to public private agreements; and (15) makes conforming amendments. Details: The bill includes language brought forward by the title industry changing the statute on “Good Funds.” The IBA was involved in ensuring that the amendment to the Good Funds statute requirement was not problematic. The bill also expands the time frame for reporting information to the RREAL IN (Residential Real Estate Acquisition of Licensee Information and Numbers) database. The current statute does not have a deadline for when the report needs to go to the Department of Insurance (DOI). Notwithstanding this, the DOI has been fining companies that did not report the information within 10 days, so the 20-day period in the bill is actually an increase of 10 days from what the DOI has been requiring. Of note, the bill author initially filed an amendment to HB 1136 for committee that required a mortgage release to be filed with the county within five business days once the mortgage had been satisfied by the lender. This time frame was extremely problematic. The author ultimately withdrew the amendment from consideration. HB 1181 – Department of Financial Institutions Rep. Woody Burton, R-Whiteland Sen. Travis Holdman, R-Markle Bill summary: This is the annual Department of Financial Institutions (DFI) omnibus bill. It makes various changes to the laws concerning: (1) first-lien mortgage lenders; (2) persons licensed under the Uniform Consumer Credit Code; (3) financial institutions; and (4) debt management companies. Details: The IBA supported this bill. The DFI included several provisions in response to requests from the banking industry, including: clarification on deficiency judgments related to the TRID form, a correction to the fiscal health requirements of merging institutions, and dividend requirements. HB 1290 – State and Local Administration Rep. Tim Brown, R-Crawfordsville Sen. Brandt Hershman, R-Buck Creek Bill summary: Lake County: This bill reorganizes the statutes concerning riverboat admissions tax distributions by: (1) moving distribution provisions for the Lake County riverboats into a new section organized by riverboat; and (2) moving into a new section provisions concerning the use of admissions tax revenue and the supplemental distribution. The bill allocates the admissions tax revenue that is paid to the Northwest
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