Text: HSB00627 Text: HSB00629 Text: HSB00600 - HSB00699 Text: HSB 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 any 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 515D.4, Code 1995, is amended to read as 2 26 follows: 2 27 515D.4 NOTICE OF CANCELLATION &endash; REASONS. 2 28 1.NoA policymayshall not be canceled except by notice 2 29 to the insured as provided in this chapter.No noticeNotice 2 30 of cancellation of a policyshall beis not effective unless 2 31 it is based on one or more of the following reasons: 2 321.a. Nonpayment of premium. 2 332.b. Nonpayment of dues to an association or organization 2 34 other than an insurance association or organization, where 2 35 payment of dues is a prerequisite to obtaining or continuing 3 1 insurance in force and the dues payment requirement was in 3 2 effect prior to January 1, 1969. 3 33.c. Fraud or material misrepresentation affecting the 3 4 policy or the presentation of a claim. 3 54.d. Violation of terms or conditions of the policy. 3 65.e. The named insured or any operator who either resides 3 7 in the same household or customarily operates an automobile 3 8 insured under the policy has that person's driver's license 3 9 suspended or revoked during the policy term or, if the policy 3 10 is a renewal, during its term or the one hundred eighty days 3 11 immediately preceding its effective date. 3 12 f. The named insured or any operator who either resides in 3 13 the same household or customarily operates an automobile 3 14 insured under the policy has during the term of the policy 3 15 engaged in a competitive speed contest while operating an 3 16 automobile insured under the policy. 3 17 g. The named insured or any operator who either resides in 3 18 the same household or customarily operates an automobile 3 19 insured under the policy, during the thirty-six months 3 20 immediately preceding the notice of cancellation or 3 21 nonrenewal, has been convicted of or forfeited bail for any of 3 22 the following: 3 23 (1) Criminal negligence resulting in death, homicide, or 3 24 assault and arising out of the operation of a motor vehicle. 3 25 (2) Operating a motor vehicle while intoxicated or while 3 26 under the influence of a drug. 3 27 (3) Leaving the scene of a motor vehicle accident without 3 28 stopping to report such accident. 3 29 2. This section shall not apply to any policy or coverage 3 30 which has been in effect less than sixty days at the time 3 31 notice of cancellation is mailed or delivered by the insurer 3 32 unless it is a renewal policy. This section shall not apply 3 33 to the nonrenewal of a policy. 3 34 3. During the policy periodno, a modification of 3 35 automobile physical damage coverage,exceptother than 4 1 coverage for loss caused by collision,wherebywhere provision 4 2 is made for the application of a deductible amount not 4 3 exceeding one hundred dollars, shall not be deemed a 4 4 cancellation of the coverage or of the policy. 4 5 EXPLANATION 4 6 This bill amends several provisions regarding insurance 4 7 regulation and related to setoff of premium, fraudulent 4 8 submissions to insurers, availability of certain information 4 9 to insurers, length of term of the board of directors of an 4 10 insurer, and notice of cancellation with respect to automobile 4 11 liability insurance. 4 12 Section 507C.30 is amended by providing that a person has a 4 13 right to set off premium due to or from an insurer pursuant to 4 14 a reinsurance contract. 4 15 Section 507E.3 is amended to provide that it is a class "D" 4 16 felony for a person, with the intent to defraud an insurer, to 4 17 present or cause to be presented to an insurer, a written 4 18 document or oral statement as part of an application for 4 19 insurance coverage, knowing that the document or statement 4 20 contains false information regarding a material fact. 4 21 Section 507E.7 is amended to provide that a person is not 4 22 liable civilly as a result of filing a report or furnishing 4 23 other information concerning alleged acts violating chapter 4 24 507E (insurance fraud), if the report or other information is 4 25 filed or furnished without malice, fraudulent intent, or bad 4 26 faith to an authorized representative of an insurer. 4 27 Currently, this immunity applies to a report or other 4 28 information filed or furnished to law enforcement officials, 4 29 the national association of insurance commissioners, the 4 30 insurance division, a federal or state governmental agency or 4 31 bureau established to detect and prevent fraudulent insurance 4 32 acts, or any other organization established for such purpose. 4 33 Section 515.29 is amended to extend the term of a class of 4 34 a board of directors of an insurance company from three to 4 35 five years. 5 1 Section 515D.4 is amended to provide that a policy of 5 2 automobile liability insurance may be canceled if the named 5 3 insured or another operator who either resides in the same 5 4 household or customarily operates an automobile insured under 5 5 the policy has engaged in a speed contest during the term of 5 6 the policy and while operating an automobile insured under the 5 7 policy. The section is also amended to provide that such 5 8 policy may be canceled if the named insured or another 5 9 operator who either resides in the same household or 5 10 customarily operates an automobile insured under the policy, 5 11 during the 36 months immediately preceding the notice of 5 12 cancellation or nonrenewal, has been convicted of or forfeited 5 13 bail for criminal negligence resulting in the death, homicide, 5 14 or assault and arising out of the operation of a motor 5 15 vehicle, for operating a motor vehicle while intoxicated or 5 16 while under the influence of a drug, or for leaving the scene 5 17 of a motor vehicle accident without stopping to report such 5 18 accident. 5 19 LSB 3778HC 76 5 20 mj/sc/14
Text: HSB00627 Text: HSB00629 Text: HSB00600 - HSB00699 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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