§ 24-12-4-1 — Required CPAP contract disclosures

Each CPAP contract must contain the
disclosures specified in this section, which are material terms of the
contract. Unless otherwise specified, the disclosures must be in at least
a 12 point bold font and be placed clearly and conspicuously within the
contract. The following disclosures are required:
(1) On the front page, under appropriate headings, language
specifying:
(A) the funded amount, designated by the term "funded
amount", to be paid to the consumer claimant by the CPAP
provider;
(B) an itemization of one (1) time charges;
(C) the total amount to be assigned by the consumer claimant
to the CPAP provider, including the funded amount and all
charges; and
(D) a payment schedule including the funded amount and all
charges, listing all dates and the amount due at the end of each
six (6) month period, from the funding date until the date on
which the maximum amount due to the CPAP provider by the
consumer claimant occurs.
(2) A notice within the body of the contract stating the following:
"Consumer Claimant's Right to Cancellation: You may cancel this
contract without penalty or further obligation within five (5)
business days after the funding date if you either:
(A) return to (insert name of the CPAP provider) the full
amount of the disbursed funds by delivering the provider's
uncashed check to the provider's office in person; or
(B) mail, by insured, certified, or registered United States mail,
to (insert name of the CPAP provider) at the address specified
in the contract, a notice of cancellation and include in the
mailing a return of the full amount of disbursed funds in the
form of the provider's uncashed check or a registered or
certified check or money order.".
(3) A notice informing the consumer claimant that the CPAP
provider has no role in deciding whether, when, and how much
the civil proceeding is settled for. However, the consumer
claimant and consumer claimant's attorney must notify the CPAP
provider of the outcome of the civil proceeding by settlement or
adjudication before the resolution date. The CPAP provider may
seek updated information about the status of the civil proceeding
but in no event may the provider interfere with the independent
professional judgment of the attorney in the handling of the civil
proceeding or any settlement.
(4) Within the body of the contract, in all capital letters in at least
a 12 point bold font contained within a box the following: "THE
FUNDED AMOUNT AND AGREED UPON CHARGES SHALL
BE PAID ONLY FROM THE PROCEEDS OF YOUR CIVIL
PROCEEDING, AND SHALL BE PAID ONLY TO THE
EXTENT THAT THERE ARE AVAILABLE PROCEEDS
FROM YOUR CIVIL PROCEEDING. YOU WILL NOT OWE
(INSERT NAME OF THE CIVIL PROCEEDING ADVANCE
PAYMENT PROVIDER) ANYTHING IF THERE ARE NO
PROCEEDS FROM YOUR CIVIL PROCEEDING, UNLESS
YOU HAVE VIOLATED ANY MATERIAL TERM OF THIS
CONTRACT OR YOU HAVE COMMITTED FRAUD
AGAINST (INSERT NAME OF THE CIVIL PROCEEDING
ADVANCE PAYMENT PROVIDER).".
(5) Located immediately above the place on the contract where
the consumer claimant's signature is required, in at least a 12
point bold font the following: "Do not sign this contract before
you read it completely or if the contract contains any blank
spaces. You are entitled to a completely filled in copy of the
contract. Before you sign this contract, you should obtain the
advice of an attorney. Depending on the circumstances, you may
want to consult a tax, public or private benefits planning, or
financial professional. You acknowledge that your attorney in the
civil proceeding has provided no tax, public or private benefit
planning, or financial advice regarding this transaction.".

Legislative History

As added by P.L.153-2016, SEC.7. Amended by P.L.176-2019, SEC.39.