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House Journal: Page 1546: Thursday, April 24, 1997

20     3.  a.  For purposes of this section, "limited
21   service organization" means an organization providing
22   dental care services, vision care services, mental
23   health services, substance abuse services,
24   pharmaceutical services, podiatric care services, or
25   such other services as may be determined by the
26   commissioner.
27     b.  "Limited service organization" does not include
28   an organization providing hospital, medical, surgical,
29   or emergency services, except as such services are
30   provided incident to those services identified in
31   paragraph "a"."
32     2.  Page 10, by inserting after line 23 the
33   following:
34     "Sec. ___.  Section 515D.4, subsection 2,
35   unnumbered paragraph 1, Code 1997, is amended to read
36   as follows:
37     Coverage under a policy A person shall not be
38   canceled except by notice to the insured as provided
39   in this chapter.  Notice of cancellation of coverage
40   under a policy is not effective excluded from the
41   policy unless it the exclusion is based on one
or more
42   of the following reasons:
43     Sec. ___.  Section 515D.5, Code 1997, is amended to
44   read as follows:
45     515D.5  DELIVERY OF NOTICE.
46     1.  Notwithstanding the provisions of sections
47   515.80 through 515.81A, a notice of cancellation of a
48   policy shall not be effective unless mailed or
49   delivered by the insurer to the named insured at least
50   twenty days prior to the effective date of

Page 2  

 1   cancellation, or, where the cancellation is for
 2   nonpayment of premium notwithstanding the provisions
 3   of sections 515.80 and 515.81A at least ten days prior
 4   to the date of cancellation.  A post office department
 5   certificate of mailing to the named insured at the
 6   address shown in the policy shall be proof of receipt
 7   of such mailing.  Unless the reason accompanies the
 8   notice of cancellation, the notice shall state that,
 9   upon written request of the named insured, mailed or
10   delivered to the insurer not less than fifteen days
11   prior to the date of cancellation, the insurer will
12   state the reason for cancellation, together with
13   notification of the right to a hearing before the
14   commissioner within fifteen days as provided in this
15   chapter.
16     When the reason does not accompany the notice of
17   cancellation, the insurer shall, upon receipt of a
18   timely request by the named insured, state in writing
19   the reason for cancellation.  A statement of reason

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