Text: HSB00641                          Text: HSB00643
Text: HSB00600 - HSB00699               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 642

Bill Text

PAG LIN
  1  1    Section 1.  Section 272C.4, unnumbered paragraph 2, Code
  1  2 Supplement 2001, is amended by striking the unnumbered
  1  3 paragraph.
  1  4    Sec. 2.  Section 502.102, subsection 19, Code Supplement
  1  5 2001, is amended to read as follows:
  1  6    19.  "Security" means any note; stock; treasury stock;
  1  7 bond; debenture; evidence of indebtedness; certificate of
  1  8 interest or participation in a profit sharing agreement;
  1  9 collateral trust certificate; preorganization certificate or
  1 10 subscription; transferable share; investment contract;
  1 11 viatical settlement investment contract, or any fractional or
  1 12 pooled interest in such contract; voting trust certificate;
  1 13 certificate of deposit for a security; fractional undivided
  1 14 interest in an oil, gas, or other mineral lease or in payments
  1 15 out of production under such a lease, right, or royalty; an
  1 16 interest in a limited liability company or in a limited
  1 17 liability partnership or any class or series of such interest,
  1 18 including any fractional or other interest in such interest;
  1 19 or, in general, any interest or instrument commonly known as a
  1 20 "security", or any certificate of interest or participation
  1 21 in, temporary or interim certificate for, receipt for,
  1 22 guarantee of, or warrant or right to subscribe to or purchase,
  1 23 any of the foregoing.  "Security" does not include an
  1 24 insurance or endowment policy or annuity contract under which
  1 25 an insurance company promises to pay money either in a lump
  1 26 sum or periodically for life or for some other specified
  1 27 period.  "Security" also does not include an interest in a
  1 28 limited liability company or a limited liability partnership
  1 29 if the person claiming that such an interest is not a security
  1 30 proves that all of the members of the limited liability
  1 31 company or limited liability partnership are actively engaged
  1 32 in the management of the limited liability company or limited
  1 33 liability partnership; provided that the evidence that members
  1 34 vote or have the right to vote, or the right to information
  1 35 concerning the business and affairs of the limited liability
  2  1 company or limited liability partnership, or the right to
  2  2 participate in management, shall not establish, without more,
  2  3 that all members are actively engaged in the management of the
  2  4 limited liability company or limited liability partnership.
  2  5 "Security" is any of the foregoing as provided in this
  2  6 subsection whether or not it is evidenced by a written
  2  7 instrument.
  2  8    Sec. 3.  Section 502.102, subsection 21, Code Supplement
  2  9 2001, is amended by striking the subsection and inserting in
  2 10 lieu thereof the following:
  2 11    21.  "Viatical settlement investment contract" means a
  2 12 contract entered into by a viatical settlement purchaser, to
  2 13 which the viator is not a party, to purchase a life insurance
  2 14 policy or an interest in the death benefits of a life
  2 15 insurance policy, which contract is entered into for the
  2 16 purpose of deriving economic benefit.
  2 17    Sec. 4.  Section 502.304, subsection 3, Code Supplement
  2 18 2001, is amended to read as follows:
  2 19    3.  The administrator may by order summarily postpone or
  2 20 suspend registration pending final determination of any
  2 21 proceeding under this section.  Upon the entry of the order,
  2 22 the administrator shall promptly notify the applicant or
  2 23 registrant, as well as the employer or prospective employer if
  2 24 the applicant or registrant is an agent or investment adviser
  2 25 representative, that it has been entered and of the reasons
  2 26 therefor for the postponement or suspension and that within
  2 27 fifteen days after the receipt of a written request the matter
  2 28 will be set down for hearing.  If no hearing is requested and
  2 29 none is ordered by the administrator, the order will remain in
  2 30 effect until it is modified or vacated by the administrator.
  2 31 If a hearing is requested or ordered, the administrator, after
  2 32 notice of and opportunity for hearing, may modify or vacate
  2 33 the order or extend it until final determination.  Section
  2 34 17A.18A is inapplicable to a summary order issued under this
  2 35 subsection.
  3  1    Sec. 5.  Section 502.608, subsection 2, Code 2001, is
  3  2 amended to read as follows:
  3  3    2.  The administrator shall keep a register of all
  3  4 applications for registration, notice filings, and
  3  5 registration statements which that are or have been effective
  3  6 under this chapter and predecessor laws, and all censure,
  3  7 denial, suspension, or revocation orders which that have been
  3  8 entered under this chapter and predecessor laws.  All records
  3  9 may be maintained in an electronic or microfilm format or any
  3 10 other form of data storage.  The register shall be open for
  3 11 public inspection.  However, notwithstanding chapter 22, the
  3 12 administrator may keep confidential any social security
  3 13 number, residence address, and residence telephone number that
  3 14 is contained in these records if disclosure is not required in
  3 15 the performance of any duty or is not otherwise required under
  3 16 law.
  3 17    Sec. 6.  Section 505.8, Code Supplement 2001, is amended by
  3 18 adding the following new subsection:
  3 19    NEW SUBSECTION.  7.  Notwithstanding chapter 22, the
  3 20 commissioner may keep confidential any social security number,
  3 21 residence address, and residence telephone number that is
  3 22 contained in a record filed as part of a licensing,
  3 23 registration, or filing process if disclosure is not required
  3 24 in the performance of any duty or is not otherwise required
  3 25 under law.
  3 26    Sec. 7.  NEW SECTION.  507C.60  SUSPENSION OF CERTIFICATE
  3 27 OF AUTHORITY.
  3 28    Without advance notice or a hearing, the commissioner may
  3 29 suspend immediately the certificate of authority of any
  3 30 insurer as to which proceedings for receivership,
  3 31 conservatorship, rehabilitation, or other delinquency
  3 32 proceedings have been commenced in any state by the public
  3 33 insurance supervisory official of that state.
  3 34    Sec. 8.  Section 508.31A, subsection 2, paragraph a,
  3 35 subparagraph (2), subparagraph subdivision (e), Code 2001, is
  4  1 amended by striking the subparagraph subdivision and inserting
  4  2 in lieu thereof the following:
  4  3    (e)  A person other than a natural person that has assets
  4  4 of at least twenty-five million dollars.
  4  5    Sec. 9.  Section 508.38, subsection 3, paragraph a,
  4  6 unnumbered paragraph 1, Code 2001, is amended to read as
  4  7 follows:
  4  8    With respect to contracts providing for flexible
  4  9 considerations, the minimum nonforfeiture amount at any time
  4 10 at or prior to the commencement of any annuity payments shall
  4 11 be equal to an accumulation up to such time at a rate of
  4 12 interest of three one and one-half percent per annum of
  4 13 percentages of the net considerations (as hereinafter defined)
  4 14 paid prior to such time, decreased by the sum of (1) any prior
  4 15 withdrawals from or partial surrenders of the contract
  4 16 accumulated at a rate of interest of three percent per annum
  4 17 and (2) the amount of any indebtedness to the company on the
  4 18 contract, including interest due and accrued; and increased by
  4 19 any existing additional amounts credited by the company to the
  4 20 contract.
  4 21    Sec. 10.  NEW SECTION.  508E.3A  IMMUNITY FROM LIABILITY.
  4 22    1.  A person acting without malice, fraudulent intent, or
  4 23 bad faith is not liable civilly as a result of filing a
  4 24 report, or otherwise furnishing, orally or in writing, other
  4 25 information concerning alleged acts in violation of this
  4 26 chapter, or the administrative rules that implement this
  4 27 chapter, if the report or information is provided to or
  4 28 received from any of the following:
  4 29    a.  Law enforcement officials, and their agents or
  4 30 employees.
  4 31    b.  The national association of insurance commissioners,
  4 32 the insurance division, a federal or state governmental agency
  4 33 or bureau established to detect and prevent fraudulent
  4 34 insurance or viatical settlement acts, or any other
  4 35 organization established for such purpose, and their agents,
  5  1 employees, or designees.
  5  2    c.  An authorized representative of the life insurer that
  5  3 issued the insurance policy covering the life of the insured.
  5  4    2.  This section does not affect in any way any common law
  5  5 or statutory privilege or immunity applicable to such person
  5  6 or entity.
  5  7    3.  A person or entity against whom an action is brought
  5  8 for libel, slander, or any other relevant tort, where the
  5  9 action involves acts subject to immunity under this section
  5 10 and is not substantially justified, is entitled to an award of
  5 11 court costs and reasonable attorney fees.  For purposes of
  5 12 this section, "substantially justified" means the action had a
  5 13 reasonable basis in law or fact at the time that it was filed.
  5 14    Sec. 11.  Section 513B.4, subsection 1, Code Supplement
  5 15 2001, is amended by adding the following new paragraph:
  5 16    NEW PARAGRAPH.  d.  Any adjustment in rates for claims
  5 17 experience, health status, and duration of coverage shall not
  5 18 be charged to individual employees or dependents.  Any such
  5 19 adjustment shall be applied uniformly to the rates charged for
  5 20 all employees and dependents of the small employer.
  5 21    Sec. 12.  Section 514A.3, subsection 2, paragraph k, Code
  5 22 Supplement 2001, is amended by striking the paragraph and
  5 23 inserting in lieu thereof the following:
  5 24    k.  A provision as follows:
  5 25    INTOXICANTS AND NARCOTICS:  The insurer shall not be liable
  5 26 for any loss sustained or contracted in consequence of the
  5 27 insured's being intoxicated or under the influence of any
  5 28 narcotic unless administered on the advice of a physician.
  5 29 This provision shall not be used with respect to a medical
  5 30 expense policy.  For purposes of this provision, "medical
  5 31 expense policy" means an accident and sickness insurance
  5 32 policy that provides hospital, medical, and surgical expense
  5 33 coverage.
  5 34    Sec. 13.  Section 515.80, Code 2001, is amended to read as
  5 35 follows:
  6  1    515.80  FORFEITURE OF POLICIES – NOTICE.
  6  2    1.  A policy or contract of insurance, unless otherwise
  6  3 provided in section 515.81A or 515.81B, provided for in this
  6  4 chapter shall not be forfeited, suspended, or canceled except
  6  5 by notice to the insured as provided in this chapter.  A
  6  6 notice of cancellation is not effective unless mailed or
  6  7 delivered by the insurer to the named insured at least twenty
  6  8 thirty days before the effective date of cancellation, or,
  6  9 where cancellation is for nonpayment of a premium, assessment,
  6 10 or installment provided for in the policy, or in a note or
  6 11 contract for the payment thereof, at least ten days prior to
  6 12 the date of cancellation.  The notice may be made in person,
  6 13 or by sending by mail a letter addressed to the insured at the
  6 14 insured's address as given in or upon the policy, anything in
  6 15 the policy, application, or a separate agreement to the
  6 16 contrary notwithstanding.
  6 17    2.  An insurer shall not fail to renew a policy except by
  6 18 notice to the insured as provided in this chapter.  A notice
  6 19 of intention not to renew is not effective unless mailed or
  6 20 delivered by the insurer to the named insured at least thirty
  6 21 days prior to the expiration date of the policy.  A notice of
  6 22 intention not to renew is not required if the insured is
  6 23 transferred from an insurer to an affiliate for future
  6 24 coverage as a result of a merger, acquisition, or company
  6 25 restructuring and if the transfer results in the same or
  6 26 broader coverage.
  6 27    If the reason does not accompany the notice of cancellation
  6 28 or nonrenewal, the insurer shall, upon receipt of a timely
  6 29 request by the named insured, state in writing the reason for
  6 30 cancellation or nonrenewal.
  6 31    Sec. 14.  Section 515.81B, Code 2001, is amended to read as
  6 32 follows:
  6 33    515.81B  NONRENEWAL OF COMMERCIAL LINES POLICIES OR
  6 34 CONTRACTS.
  6 35    1.  An insurer shall not fail to renew a commercial line
  7  1 policy or contract of insurance except by notice to the
  7  2 insured as provided in this section.  Nonrenewal of a
  7  3 commercial line policy or contract includes a decision by the
  7  4 insurer not to renew the policy or contract, an increase in
  7  5 the premium of twenty-five percent or more, an increase in the
  7  6 deductible of twenty-five percent or more, or a material
  7  7 reduction in the limits or coverage of the policy or contract.
  7  8 However, a premium charge which is assessed after the
  7  9 beginning date of the policy period for which the premium is
  7 10 due shall not be deemed a premium increase for the purpose of
  7 11 this section.
  7 12    2.  A notice of nonrenewal is not effective unless mailed
  7 13 or delivered by the insurer to the named insured and any loss
  7 14 payee at least forty-five days prior to the expiration date of
  7 15 the policy.  If the insurer fails to meet the notice
  7 16 requirements of this section, the insured has the option of
  7 17 continuing the policy for the remainder of the notice period
  7 18 plus an additional thirty days at the premium rate of the
  7 19 existing policy or contract.  A post office department
  7 20 certificate of mailing to the named insured at the address
  7 21 shown in the policy or contract is proof of receipt of the
  7 22 mailing.
  7 23    3.  This section applies to all forms of commercial
  7 24 property and casualty insurance written pursuant to this
  7 25 chapter.  It does not apply if the insurer has offered to
  7 26 renew or if the insured fails to pay a premium due or any
  7 27 advance premium required by the insurer for renewal.  A notice
  7 28 of nonrenewal is not required if the insured is transferred
  7 29 from an insurer to an affiliate for future coverage as a
  7 30 result of a merger, acquisition, or company restructuring and
  7 31 if the transfer results in the same or broader coverage.
  7 32    Sec. 15.  Section 515D.4, Code 2001, is amended to read as
  7 33 follows:
  7 34    515D.4  NOTICE OF CANCELLATION – REASONS.
  7 35    1.  A policy shall not be canceled except by notice to the
  8  1 insured as provided in this chapter.  Notice of cancellation
  8  2 of a policy is not effective unless it is based on one or more
  8  3 of the following reasons:
  8  4    a.  Nonpayment of premium.
  8  5    b.  Nonpayment of dues to an association or organization
  8  6 other than an insurance association or organization, where
  8  7 payment of dues is a prerequisite to obtaining or continuing
  8  8 insurance in force and the dues payment requirement was in
  8  9 effect prior to January 1, 1969.
  8 10    c.  Fraud or material misrepresentation affecting the
  8 11 policy or the presentation of a claim.
  8 12    d.  Violation of terms or conditions of the policy.
  8 13    e.  Any reason permitted in subsection 2 for exclusion of a
  8 14 person from the policy.
  8 15    2.  A person shall not be excluded from the policy unless
  8 16 the exclusion is based on one or more of the following
  8 17 reasons, or is requested by the named insured:
  8 18    a.  The named insured or any operator who either resides in
  8 19 the same household or customarily operates an automobile
  8 20 insured under the policy has that person's driver's license
  8 21 suspended or revoked during the policy term or, if the policy
  8 22 is a renewal, during its term or the one hundred eighty days
  8 23 immediately preceding its effective date.
  8 24    b.  The named insured or any operator who either resides in
  8 25 the same household or customarily operates an automobile
  8 26 insured under the policy has during the term of the policy
  8 27 engaged in a competitive speed contest while operating an
  8 28 automobile insured under the policy.
  8 29    c.  The named insured or any operator who either resides in
  8 30 the same household or customarily operates an automobile
  8 31 insured under the policy, during the thirty-six months
  8 32 immediately preceding the notice of cancellation or
  8 33 nonrenewal, has been convicted of or forfeited bail for any of
  8 34 the following:
  8 35    (1)  Criminal negligence resulting in death, homicide, or
  9  1 assault and arising out of the operation of a motor vehicle.
  9  2    (2)  Operating a motor vehicle while intoxicated or while
  9  3 under the influence of a drug.
  9  4    (3)  A violation of section 321.261.
  9  5    3.  This section shall not apply to any policy or coverage
  9  6 which has been in effect less than sixty days at the time
  9  7 notice of cancellation is mailed or delivered by the insurer
  9  8 unless it is a renewal policy.  This section shall not apply
  9  9 to the nonrenewal of a policy.
  9 10    4.  During the policy period, a modification of automobile
  9 11 physical damage coverage, other than coverage for loss caused
  9 12 by collision, where provision is made for the application of a
  9 13 deductible amount not exceeding one hundred dollars, shall not
  9 14 be deemed a cancellation of the coverage or of the policy.
  9 15    Sec. 16.  Section 515D.7, Code 2001, is amended to read as
  9 16 follows:
  9 17    515D.7  NOTICE OF INTENT.
  9 18    1.  Notwithstanding the provisions of sections 515.80
  9 19 through 515.81B, an insurer shall not fail to renew a policy
  9 20 except by notice to the insured as provided in this chapter.
  9 21 A notice of intention not to renew shall not be effective
  9 22 unless mailed or delivered by the insurer to the named insured
  9 23 at least thirty days prior to the expiration date of the
  9 24 policy.  A post office department certificate of mailing to
  9 25 the named insured at the address shown in the policy shall be
  9 26 proof of receipt of such mailing.  Unless the reason
  9 27 accompanies the notice of intent not to renew, the notice
  9 28 shall state that, upon written request of the named insured,
  9 29 mailed or delivered to the insurer not less than twenty thirty
  9 30 days prior to the expiration date of the policy, the insurer
  9 31 will state the reason for nonrenewal.
  9 32    2.  When the reason does not accompany the notice of intent
  9 33 not to renew, the insurer shall, upon receipt of a timely
  9 34 request by the named insured, state in writing the reason for
  9 35 nonrenewal, together with notification of the right to a
 10  1 hearing before the commissioner within fifteen days as
 10  2 provided herein.  A statement of reason shall be mailed or
 10  3 delivered to the named insured within ten days after receipt
 10  4 of a request.
 10  5    3.  This section shall not apply:
 10  6    1. a.  If the insurer has manifested its willingness to
 10  7 renew.
 10  8    2. b.  If the insured fails to pay any premium due or any
 10  9 advance premium required by the insurer for renewal.
 10 10    c.  If the insured is transferred from an insurer to an
 10 11 affiliate for future coverage as a result of a merger,
 10 12 acquisition, or company restructuring and if the transfer
 10 13 results in the same or broader coverage.
 10 14    Sec. 17.  Section 515F.3, subsection 6, Code 2001, is
 10 15 amended to read as follows:
 10 16    6.  Insurance written by a county or state mutual insurance
 10 17 association as provided in chapter 518 or 518A.
 10 18    Sec. 18.  Section 518.17, unnumbered paragraph 2, Code
 10 19 2001, is amended to read as follows:
 10 20    Reinsurance sufficient to protect the financial stability
 10 21 of the state mutual association is also required.  Reinsurance
 10 22 coverage obtained by a county mutual insurance association
 10 23 shall not expose the association to losses from coverages
 10 24 written pursuant to this chapter of more than fifteen percent
 10 25 from surplus in any calendar year.  For the purposes of this
 10 26 section, an association shall not expose its surplus in any
 10 27 calendar year to losses from coverages written pursuant to
 10 28 this chapter in excess of an amount determined by the
 10 29 commissioner.  The general standard for the implementation of
 10 30 this section shall be fifteen percent.  The commissioner of
 10 31 insurance may require additional reinsurance if necessary to
 10 32 protect the policyholders of the association.
 10 33    Sec. 19.  Section 518.25, Code 2001, is amended to read as
 10 34 follows:
 10 35    518.25  SURPLUS.
 11  1    An association organized under this chapter shall at all
 11  2 times maintain a surplus of not less than fifty thousand
 11  3 dollars or one-tenth of one percent of the gross property risk
 11  4 in force, whichever is greater.
 11  5    Sec. 20.  Section 518A.2, Code 2001, is amended to read as
 11  6 follows:
 11  7    518A.2  STATE MUTUAL ASSOCIATIONS.
 11  8    Any association incorporated under the laws of this state
 11  9 for the purpose of furnishing insurance as provided for in
 11 10 this chapter may is authorized to do business throughout the
 11 11 state in the county in which its principal place of business
 11 12 is located, the counties contiguous thereto, and the next tier
 11 13 of contiguous counties and in other states where they are
 11 14 legalized and authorized to do business.  Each association
 11 15 seeking to modify its authorized writing territory shall file
 11 16 with the commissioner a plan for controlled expansion
 11 17 demonstrating that provisions have been made adequately to
 11 18 service and protect policyholders.  The expansion plan shall
 11 19 not be modified without the prior written approval of the
 11 20 commissioner, which approval shall not be unreasonably
 11 21 withheld.  The words "mutual" and  "association" shall be
 11 22 incorporated in and become a part of their name.
 11 23    Sec. 21.  Section 518A.37, Code 2001, is amended to read as
 11 24 follows:
 11 25    518A.37  SURPLUS.
 11 26    An association organized under this chapter shall at all
 11 27 times maintain a surplus of not less than one hundred thousand
 11 28 dollars, or one-tenth of one percent of the gross property
 11 29 risk in force, whichever is greater.
 11 30    Sec. 22.  Section 518A.44, unnumbered paragraph 2, Code
 11 31 2001, is amended to read as follows:
 11 32    Reinsurance sufficient to protect the financial stability
 11 33 of the state mutual insurance association is required.
 11 34 Reinsurance coverage obtained by an association shall not
 11 35 expose the association to losses from coverages written
 12  1 pursuant to this chapter of more than fifteen percent from
 12  2 surplus in any calendar year.  For the purposes of this
 12  3 section, an association shall not expose its surplus in any
 12  4 calendar year to losses from coverages written pursuant to
 12  5 this chapter in excess of an amount determined by the
 12  6 commissioner.  The general standard for the implementation of
 12  7 this section shall be fifteen percent.  The commissioner of
 12  8 insurance may require additional reinsurance if necessary to
 12  9 protect the policyholders of the association.
 12 10    Sec. 23.  Section 519A.2, subsection 3, Code 2001, is
 12 11 amended to read as follows:
 12 12    3.  "Licensed health care provider" means and includes a
 12 13 physician and surgeon, osteopath, osteopathic physician and
 12 14 surgeon, dentist, podiatric physician, optometrist,
 12 15 pharmacist, chiropractor or nurse licensed pursuant to chapter
 12 16 147, and a hospital licensed pursuant to chapter 135B, and a
 12 17 nursing facility licensed pursuant to chapter 135C.
 12 18    Sec. 24.  Section 519A.5, subsection 2, Code 2001, is
 12 19 amended to read as follows:
 12 20    2.  All policies issued by the association shall provide
 12 21 for a continuous period of coverage beginning with their
 12 22 respective effective dates and terminating automatically at
 12 23 12:01 a.m. on July 1, 1977, unless sooner terminated.  All
 12 24 policies shall terminate at 12:01 a.m. two years from the date
 12 25 of finding of an emergency by the commissioner, or earlier in
 12 26 accordance with sections 519A.2 to through 519A.13,; or unless
 12 27 terminated because of failure of the policyholder to pay any
 12 28 premium or stabilization reserve fund charge or portion of
 12 29 either when due.  All policies shall be issued subject to the
 12 30 group retrospective rating plan and the stabilization reserve
 12 31 fund authorized by this chapter.  No policy form shall be used
 12 32 by the association unless it has been filed with and approved
 12 33 by the commissioner.
 12 34    Sec. 25.  FUTURE REPEAL.  The section of this Act amending
 12 35 section 508.38, subsection 3, paragraph "a", is repealed July
 13  1 1, 2003.  Upon the effective date of the repeal, the Code
 13  2 editor shall revise the applicable Code language to that
 13  3 language that existed in the Code of Iowa 2001.  Any
 13  4 intervening amendments to the language in section 508.38,
 13  5 subsection 3, paragraph "a", shall be stricken with the
 13  6 repeal, unless a subsequent Act specifically provides
 13  7 otherwise.  
 13  8                           EXPLANATION
 13  9    This bill makes changes to various provisions related to
 13 10 insurance throughout the Code.
 13 11    The bill strikes part of Code section 272C.4 that requires
 13 12 reports to be filed with the insurance commissioner by
 13 13 insurance carriers that insure professional and occupational
 13 14 licensees relating to negligent acts and omissions in the
 13 15 practice of a profession or an occupation.
 13 16    The bill amends subsections of Code section 502.102 to
 13 17 substitute a definition for "viatical settlement investment
 13 18 contract," rather than "viatical settlement contract", and
 13 19 makes appropriate changes elsewhere in the change in
 13 20 terminology.
 13 21    The bill amends Code section 502.304, subsection 3, to
 13 22 provide that Code section 17A.18A, regarding emergency
 13 23 adjudicative hearings, shall not apply to summary orders
 13 24 issued under that subsection.  The bill also makes grammatical
 13 25 changes to the subsection.
 13 26    The bill amends Code sections 502.608 and 505.8 to allow
 13 27 the commissioner of insurance to keep social security numbers,
 13 28 residence addresses, and residence addresses contained in
 13 29 certain securities and insurance filings confidential if the
 13 30 disclosure is not required in the performance of any duty or
 13 31 is not otherwise required under law.
 13 32    The bill adds a new Code section to Code chapter 507C to
 13 33 provide that the commissioner, without advance notice or
 13 34 hearing, may immediately suspend the certificate of authority
 13 35 of an insurer if the insurance supervisory official of another
 14  1 state has commenced any delinquency proceedings against the
 14  2 insurer.
 14  3    The bill amends languages in Code section 508.31A, to
 14  4 provide that a funding agreement may be issued to a person
 14  5 other than a natural person that has assets of at least $25
 14  6 million.  Current Code language provides that the agreement
 14  7 may be issued to a program of an institution that has assets
 14  8 in excess of $25 million.
 14  9    The bill amends Code section 508.38, relating to individual
 14 10 deferred annuities.  The minimum nonforfeiture amount is
 14 11 calculated in part based on prior withdrawals or from partial
 14 12 surrenders of the contract, calculated currently at 3 percent
 14 13 yearly, and the bill changes this figure to 1.5 percent
 14 14 yearly.  This provision is repealed effective July 1, 2003.
 14 15    The bill adds a new section to Code chapter 508E, relating
 14 16 to viatical settlement contracts.  The new Code section
 14 17 provides immunity from liability for any person acting without
 14 18 malice or bad faith who files a report or otherwise furnishes
 14 19 information to certain persons concerning alleged acts in
 14 20 violation of the chapter or the related administrative rules.
 14 21 A person entitled to immunity under the new Code section is
 14 22 also entitled to an award of court costs and reasonable
 14 23 attorney fees if a tort action is brought against the person
 14 24 that is not substantially justified.
 14 25    The bill amends Code section 513B.4 regarding rate
 14 26 adjustments for small group coverage for claims experience,
 14 27 health status, and duration of coverage to require that such
 14 28 adjustments be applied uniformly to all covered employees and
 14 29 dependents.
 14 30    The bill amends Code section 514A.3 to provide for coverage
 14 31 in a medical expense policy if there is a loss sustained or
 14 32 contracted due to the insured's being intoxicated or under the
 14 33 influence of narcotics.  This provision replaces one that
 14 34 excludes coverage if the insured is intoxicated or under the
 14 35 influence of any narcotic unless administered on advice of a
 15  1 physician.
 15  2    The bill amends Code sections 515.80 and 515.81B regarding
 15  3 notices of intent not to renew or nonrenewal sent by insurers
 15  4 for insurance other than life.  In both sections, language is
 15  5 added that such a notice is not required if the insured is
 15  6 transferred from an insurer to an affiliate for future
 15  7 coverage as a result of a merger, acquisition, or company
 15  8 restructuring and if the transfer results in the same or
 15  9 greater coverage.  Similar language is also added to Code
 15 10 section 515D.7, regarding notice of intent not to renew on
 15 11 automobile policies.  The bill also changes certain notice
 15 12 periods in Code sections 515.80 and 515D.7 from 20 to 30 days.
 15 13    The bill amends Code section 515D.4, relating to notice of
 15 14 cancellation of automobile insurance, to provide that a person
 15 15 may be excluded from the policy if requested by the named
 15 16 insured, and that a policy may be cancelled for any reason
 15 17 permitted under Code section 515D.4 for which a person may be
 15 18 excluded from the policy.
 15 19    The bill amends Code section 515F.3 to add state mutual
 15 20 insurance associations as excluded from the scope of the
 15 21 chapter.
 15 22    The bill amends the standard for exposure of surplus in
 15 23 Code sections 518.17 and 518A.44, relating to county and state
 15 24 mutual associations, to a general benchmark of 15 percent,
 15 25 rather than a bright-line standard of 15 percent.
 15 26    The bill amends Code sections 518.25 and 518A.37, removing
 15 27 the redundant word "property".
 15 28    The bill amends the authorized area of business for a state
 15 29 mutual association under Code section 518A.2 to the county of
 15 30 its principal place of business, the contiguous counties, and
 15 31 the next tier of contiguous counties.  If the association
 15 32 seeks to modify its authorized territory, it must file and
 15 33 have a plan approved by the commissioner for controlled
 15 34 expansion that protects policyholders.
 15 35    The bill amends the definition of licensed health care
 16  1 provider in Code section 519A.2 to add nursing facilities
 16  2 licensed pursuant to Code chapter 135C.
 16  3    The bill amends Code section 519A.5, relating to medical
 16  4 malpractice insurance issued under the terms of Code chapter
 16  5 519A, to provide that insurance issued under that chapter
 16  6 shall expire two years from the date the commissioner deems an
 16  7 emergency to exist, or earlier, in accordance with the terms
 16  8 of the statute.  Current Code language provides for the
 16  9 coverage to expire in 1977.  
 16 10 LSB 5377DP 79
 16 11 jj/cf/24.1
     

Text: HSB00641                          Text: HSB00643
Text: HSB00600 - HSB00699               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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