HF 132 (LSB 1666YH (2) 88)

HOUSE FILE 132

BY  STAED, KURTH, and GASKILL

A BILL FOR

An Act relating to notifications by life insurance companies to policyholders of changes in premiums.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 508.25, Code 2019, is amended to read as follows:
   508.25  Policy forms —— approval.
   It shall be unlawful for any insurance company transacting business within this state, under the provisions of this chapter, to write do any of the following: 
   1.  Write or use any form of policy or contract of insurance, on the life of any individual in this state, until a copy of such form of policy or contract has been filed with and approved by the commissioner of insurance.
   2.  Fail to provide at least thirty calendar days’ advance written notice, by certified mail to a policyholder’s last known address, prior to a change in the policyholder’s premium.
   3.  Terminate a policyholder’s coverage for failure to pay a premium if notification pursuant to subsection 2 is not given to the policyholder.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to notifications by life insurance companies to policyholders of changes in premiums.
   The bill requires an insurance company to provide at least 30 calendar days’ advance written notice to a policyholder of a change in the policyholder’s premium. The notice must be sent by certified mail to the policyholder’s last known address and the insurance company cannot terminate coverage if the notice has not been sent as required.