Text: HSB00237 Text: HSB00239 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 507B.4, Code 1995, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 13. OFFERING OR SELLING INSURANCE
1 4 COVERAGE WHERE NO RISK EXISTS.
1 5 a. Marketing, issuing, or selling an insurance policy for
1 6 which there is no corresponding risk of loss to the insured.
1 7 b. Failure of a person to inform an insured who has
1 8 purchased an insurance policy from the person that the risk of
1 9 loss for which the insurance policy was purchased has been
1 10 eliminated or reduced as a result of a change in state or
1 11 federal law which affects such risk.
1 12 EXPLANATION
1 13 This bill provides that it is an unfair insurance trade
1 14 practice for an insurance company or an insurance agent or
1 15 broker to market, issue, or sell an insurance policy for which
1 16 there is no risk, or to fail to inform an insured who has
1 17 purchased an insurance policy from the person that the risk of
1 18 loss for which the insurance policy was purchased has been
1 19 eliminated or reduced as a result of a change in state or
1 20 federal law which affects such risk. A person who violates
1 21 this provision is subject to a monetary penalty of not more
1 22 than $10,000 for each violation, or suspension, or revocation
1 23 of the person's license to conduct the business of insurance.
1 24 LSB 1938HC 76
1 25 mj/jw/5
Text: HSB00237 Text: HSB00239 Text: HSB00200 - HSB00299 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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