Text: SSB01109                          Text: SSB01111
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Senate Study Bill 1110

Bill Text

PAG LIN
  1  1    Section 1.  Section 507B.1, Code 2001, is amended to read
  1  2 as follows:
  1  3    507B.1  DECLARATION OF PURPOSE.
  1  4    The purpose of this chapter is to regulate trade practices
  1  5 in the business of insurance in accordance with the intent of
  1  6 Congress as expressed in the Act of Congress of March 9, 1945,
  1  7 Public Law 15, 79th Congress, 59 Stat. L. 33; 15 U.S.C. } 1011
  1  8 to 1015, inc., by defining, or providing for the determination
  1  9 of, all such practices in this state which constitute unfair
  1 10 methods of competition or unfair or deceptive acts or
  1 11 practices, and by prohibiting the trade practices so defined
  1 12 or determined, and by providing for public and private
  1 13 enforcement of these prohibitions.
  1 14    Sec. 2.  Section 507B.7, subsection 1, paragraph a, Code
  1 15 2001, is amended to read as follows:
  1 16    a.  Payment of a civil penalty of not more than one five
  1 17 thousand dollars for each act or violation, but not to exceed
  1 18 an aggregate of ten fifty thousand dollars, unless the person
  1 19 knew or reasonably should have known the person was in
  1 20 violation of section 507B.4 or 507B.5, in which case the
  1 21 penalty shall be not more than five twenty-five thousand
  1 22 dollars for each act or violation, but not to exceed an
  1 23 aggregate penalty of two hundred fifty thousand dollars in any
  1 24 one six-month period.  The commissioner shall, if the
  1 25 commissioner finds the violations of section 507B.4 or 507B.5
  1 26 were directed, encouraged, condoned, ignored, or ratified by
  1 27 the employer of the person or by an insurer, also assess a
  1 28 fine to the employer or insurer.
  1 29    Sec. 3.  NEW SECTION.  507B.10  PRIVATE CIVIL ACTION.
  1 30    A person who violates a provision of section 507B.4 or
  1 31 507B.5 is liable for damages caused by the violation,
  1 32 including, but not limited to, costs and reasonable attorney
  1 33 and expert fees, and injunctive and equitable relief.  
  1 34                           EXPLANATION 
  1 35    This bill amends sections of Code chapter 507B relating to
  2  1 insurance trade practices.
  2  2    The bill specifies that one of the purposes of the
  2  3 insurance trade practices Act is to regulate insurance trade
  2  4 practices by providing for public and private enforcement of
  2  5 the chapter.  The bill also adds an express private cause of
  2  6 action for damages.
  2  7    The bill also increases civil penalty amounts that may be
  2  8 imposed by the insurance commissioner under Code section
  2  9 507B.7.  
  2 10 LSB 1892SC 79
  2 11 jj/gg/8
     

Text: SSB01109                          Text: SSB01111
Text: SSB01100 - SSB01199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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