HB 1206 Summary

• Prohibits lenders from entering into legal funding transactions where a person receives a loan in exchange for assigning the lender a contingent right to receive part of the settlement, insurance payment, or award of damages from a legal action.

• Declares any legal funding contract entered into in violation of this prohibition void and unenforceable.

• Establishes violations as deceptive acts enforceable by the Indiana Attorney General, who may seek injunctions, civil penalties up to $10,000 per deceptive act, and recovery of investigation and litigation costs.

• Applies to all civil actions, statutory claims, causes of action, settlements, and negotiations toward settlement or agreement not to initiate legal action.

• Effective July 1, 2012.