Text: HF02309 Text: HF02311 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 507C.30, subsection 2, Code 1995, is 1 2 amended to read as follows: 1 3 2. a. A setoffor counterclaimshall not be allowed in 1 4 favor of a person where any of the following are found: 1 5a.(1) At the date of the filing of a petition for 1 6 liquidation, the obligation of the insurer to the person would 1 7 not entitle the person to share as a claimant in the assets of 1 8 the insurer. 1 9b.(2) The obligation of the insurer to the person was 1 10 purchased by or transferred to the person with a view to its 1 11 being used as a setoff. 1 12c.(3) The obligation of the insurer is owed to the 1 13 affiliate of such person, or any other entity or association 1 14 other than the person. 1 15d.(4) The obligation of the person is to pay an 1 16 assessment levied against the members or subscribers of the 1 17 insurer, or is to pay a balance upon a subscription to the 1 18 capital stock of the insurer, or is in any other way in the 1 19 nature of a capital contribution. 1 20e.(5) The obligation of the person is to pay earned 1 21 premiumswhether earned or unearnedto the insurer. 1 22 b. Nothing in paragraph "a", however, restricts the right 1 23 of a person to set off premium due to or from the insurer 1 24 pursuant to a reinsurance contract. 1 25 Sec. 2. Section 507E.3, subsection 2, Code Supplement 1 26 1995, is amended to read as follows: 1 27 2. A person commits a class "D" felony if the person, with 1 28 the intent to defraud an insurer, doeseitherany of the 1 29 following: 1 30 a. Presents or causes to be presented to an insurer, any 1 31 written document or oral statement, including a computer- 1 32 generated document, as part of, or in support of, a claim for 1 33 payment or other benefit pursuant to an insurance policy, 1 34 knowing that such document or statement contains any false 1 35 information concerning a material fact. 2 1 b. Assists, abets, solicits, or conspires with another to 2 2 present or cause to be presented to an insurer, any written 2 3 document or oral statement, including a computer-generated 2 4 document, that is intended to be presented to any insurer in 2 5 connection with, or in support of, any claim for payment or 2 6 other benefit pursuant to an insurance policy, knowing that 2 7 such document or statement contains any false information 2 8 concerning a material fact. 2 9 c. Presents or causes to be presented to an insurer, any 2 10 written document or oral statement, including a computer- 2 11 generated document, as part of, or in, an application for 2 12 insurance coverage, knowing that such document or statement 2 13 contains false information concerning a material fact. 2 14 Sec. 3. Section 507E.7, subsection 1, Code 1995, is 2 15 amended by adding the following new paragraph: 2 16 NEW PARAGRAPH. c. An authorized representative of an 2 17 insurer. 2 18 Sec. 4. Section 515.29, Code 1995, is amended to read as 2 19 follows: 2 20 515.29 CLASSIFICATION OF DIRECTORS. 2 21 A company may in its articles of incorporation provide that 2 22 the board of directors be divided into classes holding for a 2 23 term of not to exceedthreefive years and providing for the 2 24 election of the members of one class at each annual meeting. 2 25 Sec. 5. Section 515.51, Code 1995, is amended to read as 2 26 follows: 2 27 515.51 EXECUTION OF POLICIES. 2 28 All policies or contracts of insurance made or entered into 2 29 by the company may be made either with or without the seal of 2 30saidthe company, but shall be subscribed by the president, or 2 31 such other officer as may be designated by the directors for 2 32 that purpose, and be attested to by the secretarythereofof 2 33 the company. A policy or contract authorized by this chapter 2 34 shall not be delivered in this state unless it is an 2 35 individual policy or contract form. 3 1 Sec. 6. Section 515D.4, Code 1995, is amended to read as 3 2 follows: 3 3 515D.4 NOTICE OF CANCELLATION – REASONS. 3 4 1.NoA policymayshall not be canceled except by notice 3 5 to the insured as provided in this chapter.No noticeNotice 3 6 of cancellation of a policyshall beis not effective unless 3 7 it is based on one or more of the following reasons: 3 81.a. Nonpayment of premium. 3 92.b. Nonpayment of dues to an association or organization 3 10 other than an insurance association or organization, where 3 11 payment of dues is a prerequisite to obtaining or continuing 3 12 insurance in force and the dues payment requirement was in 3 13 effect prior to January 1, 1969. 3 143.c. Fraud or material misrepresentation affecting the 3 15 policy or the presentation of a claim. 3 164.d. Violation of terms or conditions of the policy. 3 175. The named insured or any operator who either resides in3 18the same household or customarily operates an automobile3 19insured under the policy has that person's driver's license3 20suspended or revoked during the policy term or, if the policy3 21is a renewal, during its term or the one hundred eighty days3 22immediately preceding its effective date.3 23 1A. Coverage under a policy shall not be cancelled except 3 24 by notice to the insured as provided in this chapter. Notice 3 25 of cancellation of coverage under a policy is not effective 3 26 unless it is based on one or more of the following reasons: 3 27 a. The named insured or any operator who either resides in 3 28 the same household or customarily operates an automobile 3 29 insured under the policy has that person's driver's license 3 30 suspended or revoked during the policy term or, if the policy 3 31 is a renewal, during its term or the one hundred eighty days 3 32 immediately preceding its effective date. 3 33 b. The named insured or any operator who either resides in 3 34 the same household or customarily operates an automobile 3 35 insured under the policy has during the term of the policy 4 1 engaged in a competitive speed contest while operating an 4 2 automobile insured under the policy. 4 3 c. The named insured or any operator who either resides in 4 4 the same household or customarily operates an automobile 4 5 insured under the policy, during the thirty-six months 4 6 immediately preceding the notice of cancellation or 4 7 nonrenewal, has been convicted of or forfeited bail for any of 4 8 the following: 4 9 (1) Criminal negligence resulting in death, homicide, or 4 10 assault and arising out of the operation of a motor vehicle. 4 11 (2) Operating a motor vehicle while intoxicated or while 4 12 under the influence of a drug. 4 13 (3) A violation of section 321.261. 4 14 2. This section shall not apply to any policy or coverage 4 15 which has been in effect less than sixty days at the time 4 16 notice of cancellation is mailed or delivered by the insurer 4 17 unless it is a renewal policy. This section shall not apply 4 18 to the nonrenewal of a policy. 4 19 3. During the policy periodno, a modification of 4 20 automobile physical damage coverage,exceptother than 4 21 coverage for loss caused by collision,wherebywhere provision 4 22 is made for the application of a deductible amount not 4 23 exceeding one hundred dollars, shall not be deemed a 4 24 cancellation of the coverage or of the policy. 4 25 EXPLANATION 4 26 This bill amends several provisions regarding insurance 4 27 regulation and related to setoff of premium, fraudulent 4 28 submissions to insurers, availability of certain information 4 29 to insurers, length of term of the board of directors of an 4 30 insurer, and notice of cancellation with respect to automobile 4 31 liability insurance. 4 32 Section 507C.30 is amended by providing that a person has a 4 33 right to set off premium due to or from an insurer pursuant to 4 34 a reinsurance contract. 4 35 Section 507E.3 is amended to provide that it is a class "D" 5 1 felony for a person, with the intent to defraud an insurer, to 5 2 present or cause to be presented to an insurer, a written 5 3 document or oral statement as part of an application for 5 4 insurance coverage, knowing that the document or statement 5 5 contains false information regarding a material fact. 5 6 Section 507E.7 is amended to provide that a person is not 5 7 liable civilly as a result of filing a report or furnishing 5 8 other information concerning alleged acts violating chapter 5 9 507E (insurance fraud), if the report or other information is 5 10 filed or furnished without malice, fraudulent intent, or bad 5 11 faith to an authorized representative of an insurer. 5 12 Currently, this immunity applies to a report or other 5 13 information filed or furnished to law enforcement officials, 5 14 the national association of insurance commissioners, the 5 15 insurance division, a federal or state governmental agency or 5 16 bureau established to detect and prevent fraudulent insurance 5 17 acts, or any other organization established for such purpose. 5 18 Section 515.29 is amended to extend the term of a class of 5 19 a board of directors of an insurance company from three to 5 20 five years. 5 21 Section 515.51 is amended to provide that a policy or 5 22 contract of insurance authorized under chapter 515 (insurance 5 23 other than life insurance) delivered in this state must be an 5 24 individual policy or contract form. 5 25 Section 515D.4 is amended to provide that coverage under a 5 26 policy of automobile liability insurance may be canceled if 5 27 the named insured or another operator who either resides in 5 28 the same household or customarily operates an automobile 5 29 insured under the policy has engaged in a speed contest during 5 30 the term of the policy and while operating an automobile 5 31 insured under the policy. The section is also amended to 5 32 provide that such coverage may be canceled if the named 5 33 insured or another operator who either resides in the same 5 34 household or customarily operates an automobile insured under 5 35 the policy, during the 36 months immediately preceding the 6 1 notice of cancellation or nonrenewal, has been convicted of or 6 2 forfeited bail for criminal negligence resulting in the death, 6 3 homicide, or assault and arising out of the operation of a 6 4 motor vehicle, for operating a motor vehicle while intoxicated 6 5 or while under the influence of a drug, or for leaving the 6 6 scene of a motor vehicle accident without stopping to report 6 7 such accident. 6 8 LSB 3778HV 76 6 9 mj/sc/14
Text: HF02309 Text: HF02311 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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