HOUSE BILL No. 1331
DIGEST OF INTRODUCED BILL
Citations Affected: IC 27-7-12-3; IC 32-30-10.5-8.
Synopsis: Notice of foreclosure to property insurers. Requires a
property insurer to provide certain notice of policy cancellation when
insured residential property is the subject of a foreclosure action.
Requires a creditor in a residential foreclosure action to send a copy of
the complaint to the insurance company of record.
Effective: July 1, 2010.
January 13, 2010, read first time and referred to Committee on Insurance.
Second Regular Session 116th General Assembly (2010)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type
, and deletions will appear in
this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type
. Also, the
will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type
this style type
between statutes enacted by the 2009 Regular and Special Sessions of the General Assembly.
HOUSE BILL No. 1331
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 27-7-12-3; (10)IN1331.1.1. -->
SECTION 1. IC 27-7-12-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 3. (a) Notice of
cancellation of property insurance coverage by an insurer must:
(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:
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
(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.
SOURCE: IC 32-30-10.5-8; (10)IN1331.1.2. -->
SECTION 2. IC 32-30-10.5-8, AS ADDED BY P.L.105-2009,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2010]: Sec. 8. (a) This section applies to a foreclosure action
that is filed after June 30, 2009. Except as provided in subsection (e)
and section 10(g) of this chapter, not later than thirty (30) days before
a creditor files an action for foreclosure, the creditor shall send to the
debtor by certified mail a presuit notice on a form prescribed by the
Indiana housing and community development authority created by
IC 5-20-1-3. In prescribing the form required by this section, the
Indiana housing and community development authority shall include
in the notice the statement set forth in IC 24-5.5-3-1. In addition, the
notice required by this subsection must:
(1) inform the debtor that:
(A) the debtor is in default; and
(B) the debtor is encouraged to obtain assistance from a
mortgage foreclosure counselor; and
(2) provide the contact information for the Indiana Foreclosure
(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
(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
(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
(1) the loan is secured by a dwelling that is not the debtor's
(2) the loan 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 loan.