PLEASE NOTE:
Rules will not be accepted after 12 o'clock noon on the Friday filing deadline days unless prior approval has been received from the Administrative Rules Coordinator's office.
If the filing deadline falls on a legal holiday, submissions made on the following Monday will be accepted.

CITATION of Administrative Rules

The Iowa Administrative Code shall be cited as (agency identification number) IAC
(chapter, rule, subrule, lettered paragraph, or numbered subparagraph).

441 IAC 79 (Chapter)

441 IAC 79.1(249A) (Rule)

441 IAC 79.1(1) (Subrule)

441 IAC 79.1(1)"a" (Paragraph)

441 IAC 79.1(1)"a"(1) (Subparagraph)

The Iowa Administrative Bulletin shall be cited as IAB (volume), (number), (publication
date), (page number), (ARC number).

IAB Vol. XII, No. 23 (5/16/90) p. 2050, ARC 872A

ITEM 4. Amend subrule 79.14(1), paragraph "e," as follows:
e. All HCBS waiver providers shall submit Form 470-2917, Medicaid HCBS Provider Application, at least90 days before the planned service implementation date.CONSULTEC shall forward the application to the department for processing.
ITEM 5. Reserve rules 441--83.92 to 83.100.
ITEM 6. Amend 441--Chapter 83 by adding the following new Division VI:

10.7(2) The following qualifications are no longer issued in Iowa but shall remain valid so long as renewal requirements are met:

191--10.8(522) License renewal.
10.8(1) Effective January 1, 1999, all new or renewed individual insurance producer licenses will be issued with an expiration date of March 31. All licensees with an expiration date of March 31 must submit a completed producer renewal report on or before March 31 of the year in which the license expires. All licensees currently holding an insurance producer license with an expiration date of April 30 will have until April 30 of the year in which the license expires to renew that license.
10.8(2) The division shall send a producer renewal report form to each licensed producer at the producer's last-known address as it appears in division records. If the division has received notification from the post office that the address of record is no longer valid for any reason, no renewal report form will be mailed.
10.8(3) Failure to renew a license and pay appropriate fees prior to the expiration date printed on the license will result in termination of the license.
191--10.9(522) License reinstatement.
10.9(1) A resident producer may reinstate an expired license until September 30 of the renewal year by proving that during the CE term the producer met the CE requirements found in 191--Chapter 11, and by paying a reinstatement fee and license fees.
10.9(2) A nonresident producer may reinstate a terminated license until September 30 of the renewal year by filing a completed producer renewal report and by paying a reinstatement fee and license renewal fee.
10.9(3) A previously licensed resident producer who does not prove compliance with the CE requirements by September 30 of the renewal year must successfully complete an examination in all qualifications for which license renewal is sought and apply for a new license. If a producer holds both a personal lines and a commercial lines qualification, the producer shall take and pass only the commercial lines examination. If a producer holds an excess and surplus lines designation, the producer shall take and pass both the commercial lines and the excess and surplus lines examinations. If a producer holds both the accident and health and the life insurance qualification, the producer may take the combined life/health examination.
10.9(4) A previously licensed nonresident producer who cannot prove compliance with the CE requirements may either take and successfully complete the appropriate Iowa examination(s) in all qualifications for which license renewal is sought prior to September 30 of the renewal year or may wait until October 1 of the renewal year and apply for a new license.
10.9(5) A producer who surrenders a license and states an intent to exit the insurance business may file a request to reactivate the license. The request must be received at the division within 90 days of the date the license was placed on inactive status. The request will be granted if the former producer is otherwise eligible to receive the license. A fee will be charged for this service.
191--10.10(522) Licensing after revocation or voluntary surrender of license.
10.10(1) A producer who wishes to reactivate a license following a suspension, revocation or voluntary surrender due to a disciplinary matter must satisfactorily complete all terms of the order or agreement which caused the license to become inactive.
10.10(2) To obtain an active license, the producer must apply for a new license and pay all appropriate license fees. If the license has been inactive more than 90 days, the producer will, at a minimum, be required to successfully complete the appropriate examinations before a license will be issued.
191--10.11(522) Exemptions from examination requirement.
10.11(1) An applicant for a resident producer license who previously held a valid Iowa resident license and has since continuously held a resident license in another state is not required to complete Iowa examinations. This exemption applies only to a producer who seeks to return to Iowa as a resident producer within three years from the date the producer surrendered the Iowa resident license.
10.11(2) The examination requirement may be waived for an applicant for a resident producer license who files a request for waiver which states some extenuating circumstance. Upon a finding of good cause, the division may determine that a license should be granted. Licenses granted under this provision may be limited in scope or duration.
191--10.12(522) Letter of clearance.
10.12(1) A resident producer may request a letter of clearance by submitting the following items to the division:
a. A written request, signed by the producer, including the producer's name, insurance producer license number, and the name of the state for which a letter of clearance is sought;
b. The producer's Iowa insurance license, or a signed statement that it has been lost or destroyed;
c. A self-addressed stamped envelope; and
d. The appropriate fee.
10.12(2) Upon issuance of the letter of clearance, the division will cancel all of the producer's company appointments and the license status will be changed from active to inactive.
191--10.13(522) Letter of certification. A resident producer may request a letter of certification by submitting the following items to the division:
1. A written request including the producer's name, insurance producer license number, and the name of the state for which the letter of certification is sought;
2. A self-addressed stamped envelope; and
3. The appropriate fee.
191--10.14(522) Change in name or address.
10.14(1) If a producer's name is changed, the producer must file written notification with the division within 30 days of the change. If the change of name is by court order, a copy of the order must be submitted to the division within 30 days of the change.
10.14(2) Address change. If a resident or nonresident producer's address is changed, the producer must file written notification signed by the producer within 30 days of the address change, stating:
a. Producer's name;
b. License number;
c. Previous resident address; and
d. The new resident address.
10.14(3) If a nonresident producer moves from one state to another state, the producer must file a change of address and a letter of certification from the new resident state within 60 days. No fee or license application is required.
10.14(4) The division will not automatically issue a new license with the producer's new address. A license will be issued upon written request and payment of the fee for a duplicate license.
10.14(5) If a licensed Iowa resident producer moves from Iowa to another state and wishes to become licensed as a nonresident producer in Iowa, the producer may file a change of address and a letter of certification from the new resident state within 60 days of the date the producer established residency in the new resident state.
10.14(6) If a nonresident producer moves into Iowa and wishes to obtain a resident license, the producer must comply with subrule 10.4(1).
191--10.15(522) Reporting of actions.
10.15(1) A producer shall report to the division any administrative action taken against the producer in another jurisdiction or by another Iowa governmental agency within 30 days of the final disposition of the matter. This report shall include a copy of the order, consent to order or other legal document.
10.15(2) Within 30 days of the initial pretrial hearing date, a producer shall report to the division any criminal prosecution of the producer taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal document.
10.15(3) A producer shall report to the division all court actions and all CSAC actions taken under or in connection with Iowa Code chapter 261 and shall provide the division copies, within seven days of filing or issuance, of all applications filed with the district court pursuant to 1998 Iowa Acts, Senate File 2170, section 7, all court orders entered in such actions, and withdrawals of certificates of noncompliance by the CSAC.
191--10.16(522) Commissions.
10.16(1) An insurance company shall not pay, directly or indirectly, any commission, service fee, brokerage or other valuable consideration to any individual or person for services as an insurance producer unless the individual or person performing the service held a valid license regarding the class of insurance for which the service was rendered at the time the service was performed. A producer may not receive commissions for insurance written with a company until that producer has been appointed with such company. Nothing herein is intended to alter the requirements of Iowa Code section 522.4.
10.16(2) A producer may assign commissions to an entity organized for the purpose of operating that producer's insurance business so long as all of the entity's representatives who personally engage in solicitation activities in Iowa are individually licensed as producers under Iowa law.
10.16(3) A person who is not directly engaged in any activities in Iowa that require an insurance producer license in Iowa is not required to maintain an active insurance producer license in order to receive override commissions or to receive renewal commissions earned while the producer was actively engaged in activities that did require an insurance producer license.
191--10.17(522) Appointments.
10.17(1) Any insurance company admitted to do business in Iowa may file an appointment form to request an appointment.
10.17(2) Appointment fees are set forth in rule 10.25(522). A billing statement will be submitted to insurance companies on a monthly basis and payment is due within 45 days. The failure to timely pay appointment billing statements may subject an insurer to late fees or other sanctions.
10.17(3) When an insurance company terminates its relationship with a producer, the company shall promptly notify the division by submitting an appointment form. The company shall also notify the producer that the producer's appointment has been canceled.
10.17(4) Appointments and cancellations are effective when processed by the division.
10.17(5) When a company loses its identity in a new company by merger, acquisition, or otherwise, the new company must contact the licensing bureau to arrange for reappointment of the producers to the remaining company.
191--10.18(522) Appointment renewal.
10.18(1) On or about May 1 of each year, the division shall provide a list of the producers currently appointed with each insurance company and a billing statement. No amendments may be made to the billing statement.
10.18(2) Payment is due at the division on or before June 30 and must include the billing statement. Renewals filed after June 30 will be subject to a late filing fee.
10.18(3) Failure to pay renewal appointment fees by July 15 will result in cancellation of a company's appointments. Appointments that are canceled due to nonpayment of renewal fees may be reinstated upon payment of a reinstatement fee.
10.18(4) Effective January 1, 2002, appointment renewal reports will be sent to insurance companies on April 1 and payment will be due on or before May 31. Appointments that are not renewed by June 15 will be canceled and may be reinstated only upon payment of renewal and reinstatement fees.
10.18(5) By special arrangement with the division, the appointment renewal process may be conducted via electronic processes.
191--10.19(522) Licensing of an insurance agency.
10.19(1) Application. An insurance agency may apply for an Iowa insurance license. For purposes of this rule, upon approval of an application by the division, the insurance agency shall be classified as a producer and shall be subject to all standards of conduct applicable to producers.
10.19(2) Requirements. To qualify for such a license, the insurance agency must:
a. File a completed license application on the form prescribed by the division;
b. Designate one officer, owner, partner, or member of the insurance agency, which person also is a producer licensed by the division, as the person who will have full responsibility for the conduct of all business transactions of the insurance agency or of insurance producers affiliated with the insurance agency;
c. File a report of all Iowa-licensed insurance producers affiliated or employed with the insurance agency;
d. For a nonresident insurance agency, file a current certification of insurance agency licensure from the insurance commissioner for the insurance agency's resident state or, if the resident state does not license insurance agencies, file a request for a waiver of this requirement;
e. Pay the insurance agency license fee or the appropriate retaliatory fee;
f. Provide the legal or trade name of the insurance agency and all business names, trade names, service marks, marketing names or other names under which the insurance agency may operate.
10.19(3) License term. An insurance agency license issued under this rule shall be effective for three calendar years, including the year of application; and all insurance agency licenses shall expire on December 31 of the third calendar year.
10.19(4) License renewal. The division shall mail a renewal notice to the address of the insurance agency on file with the division on or before December 1. The renewal notice will include a current listing of all producers affiliated with that agency. The designated responsible producer shall strike through the names of the insurance producers no longer affiliated with the insurance agency and add the names of any affiliated insurance producers not on the list. The renewal notice form and renewal fee must be received by the division on or before December 31. By arrangement with the division, renewal notices may be issued and submitted electronically.
10.19(5) License reinstatement. Insurance agency licenses may be reinstated through January 31 following the third calendar year by payment of the renewal fee and a $100 reinstatement fee. Insurance agencies that fail to complete the reinstatement process by January 31 must submit an application for a new insurance agency license.
10.19(6) Insurance agency appointments. Any insurance company admitted to do business in Iowa may appoint an Iowa-licensed insurance agency.
10.19(7) Business address. Insurance agencies licensed under this rule must maintain a current business address with the division. If an insurance agency's address is changed, written notification signed by the designated responsible producer must be submitted to the division within 30 days of the address change, stating:
a. The name of the insurance agency;
b. The federal tax identification number of the insurance agency;
c. The previous address of the insurance agency; and
d. The new address of the insurance agency.
10.19(8) Business name. Insurance agencies licensed under this rule must maintain a current business name with the division. If an insurance agency changes the name under which it is operating, written notification signed by the designated responsible producer must be submitted to the division within 30 days of the name change on the form prescribed by the division.
191--10.20(522) Violations and penalties.
10.20(1) A producer who sells insurance, directly or indirectly, in violation of this chapter shall be deemed to be in violation of Iowa Code section 522.1 and subject to the penalties provided in Iowa Code section 522.5.
10.20(2) Any company or company representative who aids and abets a producer in the above-described violation shall be deemed to be in violation of Iowa Code section 522.1 and subject to the penalties provided in Iowa Code sections 522.5, 507B.7 and 507B.11.
10.20(3) The commissioner may place on probation, suspend, revoke, or refuse to issue or renew a producer's license or may levy a civil penalty, in accordance with Iowa Code sections 522.3 and 522.5 or any combination of actions, for any one or more of the following causes:
a. Providing incorrect, incomplete or materially untrue information on an application for an insurance producer license;
b. Obtaining or attempting to obtain an insurance producer license by fraud, misrepresentation or material misstatement;
c. Improperly using notes, or any other reference material, to complete an examination for an insurance producer license;
d. Submitting a check to the division or to the outside testing service on contract with the division which is returned to the division by a bank without payment, or submitting a payment to the division by credit card which the credit card company does not approve, or canceling or refusing amounts charged to a credit card by the outside testing service on contract with the division where services were received by the producer;
e. Failing to report any administrative action or criminal prosecution taken against the producer or failure to report the termination of a resident insurance producer license;
f. Having an insurance producer's license or its equivalent suspended or revoked by any other state, district or territory of the U.S. or any province of Canada or state of Mexico;
g. Acting as an insurance producer through persons not licensed as insurance producers;
h. Having been convicted of a felony;
i. Failing to timely respond to division inquiries;
j. Refusing to cooperate with division employees in an investigation;
k. Misappropriating, converting, or improperly withholding money or property received in the conduct of insurance business;
l. Intentionally misrepresenting the terms of any actual or proposed insurance policy;
m. Demonstrating incompetence, untrustworthiness or financial irresponsibility in the transaction of insurance business;
n. Using fraudulent, coercive or dishonest practices in the conduct of affairs under the license;
o. Taking any action to circumvent the spirit of these rules and the Iowa insurance statutes or any other action that shows noncompliance with the requirements of Iowa Code chapter 522 or these rules.
10.20(4) In the event that the division denies a request to renew an insurance producer license or denies an application for an insurance producer license, the commissioner shall notify the producer or applicant of the denial or failure to renew in writing, including the reason therefor. The producer or applicant may request a hearing within 30 days of receipt of the notice to determine the reasonableness of the division's action. The hearing shall be held within 30 days of the date of the receipt of the written demand by the applicant and shall be held pursuant to 191--Chapter 3.
10.20(5) The license of an agency may be suspended, revoked or refused if the commissioner finds, after hearing, that an individual licensee's violation was known or should have been known by one or more of the partners, officers or managers acting on behalf of the partnership or corporation and the violation was neither reported to the insurance division nor was corrective action taken.
191--10.21(252J) Suspension for failure to pay child support.
10.21(1) Upon receipt of a certificate of noncompliance from the child support recovery unit (CSRU), the commissioner shall issue a notice to the producer that the producer's pending application for licensure, pending request for renewal, or current license will be suspended 30 days after the date of the notice. Notice shall be sent to the producer's last-known address by regular mail.
10.21(2) The notice shall contain the following items:
a. A statement that the commissioner intends to suspend the producer's application, request for renewal or current insurance license in 30 days;
b. A statement that the producer must contact the CSRU to request a withdrawal of the certificate of noncompliance;
c. A statement that the producer's application, request for renewal or current license will be suspended if the certificate of noncompliance is not withdrawn;
d. A statement that the producer does not have a right to a hearing before the division, but that the producer may file an application for a hearing in district court pursuant to Iowa Code section 252J.9;
e. A statement that the filing of an application with the district court will stay the proceedings of the division;
f. A copy of the certificate of noncompliance.
10.21(3) The filing of an application for hearing with the district court will stay all suspension proceedings until the division is notified by the district court of the resolution of the application.
10.21(4) If the division does not receive a withdrawal of the certificate of noncompliance from the CSRU or a notice from a clerk of court that an application for hearing has been filed, the division shall suspend the producer's application, request for renewal or current license 30 days after the notice is issued.
10.21(5) Upon receipt of a withdrawal of the certificate of noncompliance from the CSRU, suspension proceedings shall halt and the named producer shall be notified that the proceedings have been halted. If the producer's license has already been suspended, the license shall be reinstated if the producer is otherwise in compliance with division rules.
191--10.22(252J) Suspension for failure to pay student loan.
10.22(1) The division shall deny the issuance or renewal of an insurance producer license upon receipt of a certificate of noncompliance from the college student aid commission (CSAC) according to the procedures set forth in 1998 Iowa Acts, Senate File 2170. In addition to the procedures contained in those sections, this rule shall apply.
10.22(2) Upon receipt of a certificate of noncompliance from the CSAC according to the procedures set forth in 1998 Iowa Acts, Senate File 2170, the commissioner shall issue a notice to the producer that the producer's pending application for licensure, pending request for renewal, or current license will be suspended 60 days after the date of the notice. Notice shall be sent to the producer's last-known address by restricted certified mail, return receipt requested, or by personal service in accordance with the Iowa Rules of Civil Procedure. Alternatively, the applicant or licensed producer may accept service personally or through authorized counsel.
10.22(3) The notice shall contain the following items:
a. A statement that the commissioner intends to suspend the producer's application, request for renewal or current insurance license in 60 days;
b. A statement that the producer must contact the CSAC to request a withdrawal of the certificate of noncompliance;
c. A statement that the producer's application, request for renewal or current insurance producer license will be suspended if the certificate of noncompliance is not withdrawn or, if the current license is on suspension, a statement that the producer's current insurance producer license will be revoked;
d. A statement that the producer does not have a right to a hearing before the division, but that the producer may file an application for a hearing in district court pursuant to 1998 Iowa Acts, Senate File 2170, sections 6 and 7;
e. A statement that the filing of an application with the district court will stay the proceedings of the division;
f. A copy of the certificate of noncompliance.
10.22(4) The effective date of revocation or suspension of an insurance producer license, as specified in the notice required by 1998 Iowa Acts, Senate File 2170, section 6, shall be 60 days following service of the notice upon the applicant or registrant.
10.22(5) In the event an applicant or licensed producer timely files a district court action following service of a division notice pursuant to 1998 Iowa Acts, Senate File 2170, sections 6 and 7, the division's suspension proceedings will be stayed until the division is notified by the district court of the resolution of the application. Upon receipt of a court order lifting the stay, or otherwise directing the division to proceed, the division shall continue with the intended action described in the notice. For purposes of determining the effective date of the denial of the issuance or renewal of an insurance producer license, the division shall count the number of days before the action was filed and the number of days after the court disposed of the action.
10.22(6) If the division does not receive a withdrawal of the certificate of noncompliance from the CSAC or a notice from a clerk of court that an application for hearing has been filed, the division shall suspend the producer's application, request for renewal or current insurance producer license 60 days after the notice is issued.
10.22(7) Upon receipt of a withdrawal of the certificate of noncompliance from the CSAC, suspension proceedings shall halt and the named producer shall be notified that the proceedings have been halted. If the producer's insurance license has already been suspended, the license shall be reinstated if the producer is otherwise in compliance with division rules. All fees required for license renewal or license reinstatement must be paid by producers and all continuing education requirements must be met before an insurance producer license will be renewed or reinstated after the board has suspended or revoked a license pursuant to 1998 Iowa Acts, Senate File 2170.
10.22(8) The division shall notify the producer in writing through regular first-class mail, or such other means as the division deems appropriate in the circumstances, within ten days of the effective date of the suspension or revocation of an insurance producer license, and shall similarly notify the producer when the insurance producer license is reinstated following the division's receipt of a withdrawal of the certificate of noncompliance.
10.22(9) Notwithstanding any statutory confidentiality provision, the division may share information with the CSAC for the sole purpose of identifying producers subject to enforcement under Iowa Code chapter 261.
191--10.23(522) Administration of examinations.
10.23(1) The division will enter into a contractual relationship with an outside testing service to provide the licensing examinations for all of the producers' qualifications where an examination is required.
10.23(2) The outside testing service will administer all examinations for license applicants.
10.23(3) Any contract to implement subrule 10.23(1) shall require the outside testing service to:
a. Update, on a continual basis, the licensing examinations,
b. Ensure that the examinations are job-related,
c. Adequately inform the applicants of the procedures and requirements for taking the licensing examinations,
d. Prepare and administer examinations for all lines listed in subrule 10.7(1), except qualifications 9, 30 and 31, and
e. Conform to division guidelines and report to the division on at least a quarterly basis.
191--10.24(522) Forms. An original of each form necessary for the producer's licensure, appointment and cancellation may be requested from the division or downloaded from the division's web site and exact, readable, high-quality copies may be made therefrom. A self-addressed, stamped envelope must be submitted with each request.
191--10.25(522) Fees.
10.25(1) The fee for an examination shall be set by the outside testing service under contract to the division and approved by the division.
10.25(2) The express processing fee for resident producer license applications shall be set by the outside testing service under contract to the division and approved by the division.
10.25(3) The fee for issuance or renewal of an insurance producer license is $50 for three years or, for a nonresident producer, the greater of $50 or the retaliatory fee.
10.25(4) The fee for issuance or renewal of an insurance agency license is $50 for three years or, for a nonresident producer, the greater of $50 or the retaliatory fee.
10.25(5) The fee for reinstatement of an insurance producer license is a total of the renewal fee plus $100.
10.25(6) The fee for issuance of an amended or duplicate license is $10.
10.25(7) The fee for issuance of a clearance letter is $5.
10.25(8) The fee for issuance of a certification letter is $5.
10.25(9) The fee for an appointment or the renewal of an appointment is $5 per producer or the retaliatory fee. There is no fee for the cancellation of an appointment.
10.25(10) The total late fee for filing appointment renewals shall be double the renewal fee. The fee to reinstate appointments that were canceled for failure to renew shall be the late fee plus $100.
10.25(11) The fee to reactivate an inactive license and receive a new license under subrule 10.9(5) is $10.
10.25(12) The division may charge a fee for other services.
These rules are intended to implement Iowa Code chapters 522 and 252J.
ITEM 2. Rescind 191--Chapter 11 and adopt the following new chapter in lieu thereof:

Information about individual species or groups of species may be reviewed at the Division's office in the Wallace State Office Building during normal work hours. Anyone wishing to review this information must schedule an appointment by calling (515)281-8524 or (515)281-3891.
Any interested person may make written comments on these proposed rules on or before November 24, 1998. Such written material should be directed to the Division of Parks, Recreation, and Preserves, Iowa Department of Natural Resources, Wallace State Office Building, Des Moines, Iowa 50319-0034; fax (515)281-6794. Persons who wish to convey their views orally should contact the Endangered Species Program at (515)281-8524 or at the Program offices on the fourth floor of the Wallace State Office Building on or before the above date.
There will be a public hearing on November 24, 1998, at 10 a.m. in the Fourth Floor Conference Room of the Wallace State Office Building at which time persons may present their views either orally or in writing. At the hearing, persons will be asked to give their names and addresses for the record and to confine their remarks to the subject of the rules.
Any persons who intend to attend a public hearing and have special requirements such as hearing or mobility impairments should contact the Department of Natural Resources and advise of specific needs.
These rules are intended to implement Iowa Code chapter 481B.
The following amendment is proposed.
Rescind 571--Chapter 77 and adopt in lieu thereof the following new chapter:

72.2(2) Special concern animal species:

571--77.3(481B) Endangered, threatened and special concern plant species. The natural resource commission, in consultation with scientists with special knowledge and experience, determined the following plant species to be endangered, threatened, or of special concern in Iowa.
77.3(1) Endangered and threatened plant species:

77.3(2) Special concern plant species: