Text: HF00598 Text: HF00600 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 599 1 2 1 3 AN ACT 1 4 RELATING TO PROPERTY INSURANCE, INCLUDING ESTABLISHMENT OF A 1 5 MANDATORY PLAN TO ASSURE FAIR ACCESS TO INSURANCE REQUIRE- 1 6 MENTS, AND PROVIDING FOR AN EFFECTIVE DATE AND RETROACTIVE 1 7 APPLICABILITY. 1 8 1 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 10 1 11 Section 1. NEW SECTION. 515F.30 SHORT TITLE. 1 12 This division may be cited as the "Fair Access to Insurance 1 13 Requirements Plan Act", or the "FAIR Plan Act". 1 14 Sec. 2. NEW SECTION. 515F.31 PURPOSE. 1 15 The purposes of this division include all of the following: 1 16 1. To make basic property insurance available to qualified 1 17 applicants with the least possible administrative detail and 1 18 expense. 1 19 2. To establish a plan, an industry placement facility and 1 20 a joint reinsurance association for the equitable distribution 1 21 and placement of risks among insurers. 1 22 3. To utilize fully the voluntary insurance market as a 1 23 source of essential property insurance. 1 24 4. To encourage the delivery of basic property insurance 1 25 at the most reasonable cost possible, provided that insurance 1 26 pricing by the FAIR plan is actuarially self-supporting and 1 27 does not actively compete with insurance pricing in the 1 28 voluntary insurance market. 1 29 Sec. 3. NEW SECTION. 515F.32 DEFINITIONS. 1 30 1. "Basic property insurance" means insurance against 1 31 direct loss to property as defined in the standard fire policy 1 32 and extended coverage, vandalism, and malicious mischief 1 33 endorsements; homeowners insurance; and such other coverage or 1 34 classes of insurance as may be added to the FAIR plan by the 1 35 commissioner. "Basic property insurance" does not include any 2 1 of the following: 2 2 a. Automobile insurance. 2 3 b. Inland marine insurance. 2 4 2. "Insurer" includes all companies or associations 2 5 licensed to transact insurance business in this state under 2 6 chapters 515, 518, and 518A, and companies or associations 2 7 admitted or seeking to be admitted to do business in this 2 8 state under any of those chapters, notwithstanding any 2 9 provision of the Code to the contrary. 2 10 3. "Plan" means the FAIR plan to assure fair access to 2 11 insurance requirements established pursuant to section 2 12 515F.33. 2 13 Sec. 4. NEW SECTION. 515F.33 FAIR PLAN ESTABLISHED. 2 14 The FAIR plan to assure fair access to insurance 2 15 requirements is established. The plan shall operate subject 2 16 to the provisions and conditions of this division. 2 17 Sec. 5. NEW SECTION. 515F.34 MEMBERSHIP. 2 18 1. Eligibility for membership in the FAIR plan and its 2 19 underwriting association requires all of the following: 2 20 a. The insurer must be licensed to write property 2 21 insurance in this state. 2 22 b. The insurer is engaged in writing property insurance in 2 23 this state, including the property insurance components of 2 24 multiperil on a direct basis. 2 25 2. Each insurer that meets the eligibility requirements in 2 26 subsection 1 shall be required to do all of the following: 2 27 a. Automatically subscribe to the articles of agreement 2 28 for the FAIR plan and the underwriting association as a 2 29 prerequisite to authority to transact property insurance 2 30 business in this state. 2 31 b. Become and remain a member both of the FAIR plan and 2 32 the underwriting association. 2 33 c. Comply with the requirements of the FAIR plan and the 2 34 underwriting association as a condition of the insurer's 2 35 authority to transact property insurance business in this 3 1 state. 3 2 Sec. 6. NEW SECTION. 515F.35 STATUS OF PLAN. 3 3 1. The FAIR plan is not and shall not be deemed a 3 4 department, unit, agency, or instrumentality of the state. 3 5 2. All debts, claims, obligations, and liabilities 3 6 incurred by the FAIR plan shall be the debts, claims, 3 7 obligations, and liabilities of the FAIR plan only, and are 3 8 not the debts or pledges of credit of the state, or the 3 9 state's agencies, instrumentalities, officers, or employees. 3 10 3. The moneys of the FAIR plan are not part of the general 3 11 fund of the state, and the state shall not budget for or 3 12 provide general fund appropriations to the plan. 3 13 4. The records, reports, and communications of the FAIR 3 14 plan, the governing committee, the committees of the FAIR 3 15 plan, and their representatives, producers, and employees are 3 16 not public records. 3 17 Sec. 7. NEW SECTION. 515F.36 ADMINISTRATION. 3 18 1. A governing committee shall administer the FAIR plan, 3 19 subject to the supervision of the commissioner, and operated 3 20 by a manager appointed by the committee. 3 21 2. The committee shall consist of seven members, one of 3 22 whom shall be elected by the committee from each of the 3 23 following: 3 24 a. American insurance association. 3 25 b. Alliance of American insurers. 3 26 c. National association of independent insurers. 3 27 d. Iowa insurance institute. 3 28 e. Mutual insurance association of Iowa. 3 29 f. Independent insurance agents of Iowa. 3 30 g. All other insurers. 3 31 3. Not more than one insurer in a group under the same 3 32 management or ownership shall serve on the committee at the 3 33 same time. 3 34 4. The plan of operation and articles of association shall 3 35 make provision for an underwriting association having 4 1 authority on behalf of its members to cause to be issued 4 2 property insurance policies, to reinsure in whole or in part 4 3 any such policies, and to cede any such reinsurance. The plan 4 4 of operation and articles of association shall provide, among 4 5 other things, for the perils to be covered, limits of 4 6 coverage, geographical area of coverage, compensation and 4 7 commissions, assessments of members, the sharing of expenses, 4 8 income, and losses on an equitable basis, cumulative weighted 4 9 voting for the governing committee of the association, the 4 10 administration of the FAIR plan, and any other matter 4 11 necessary or convenient for the purpose of assuring fair 4 12 access to insurance requirements. 4 13 Sec. 8. NEW SECTION. 515F.37 RULES. 4 14 The commissioner shall adopt rules necessary to administer 4 15 this division. 4 16 Sec. 9. NEW SECTION. 515F.38 RETROACTIVE APPLICABILITY. 4 17 This division applies retroactively to October 7, 1968, to 4 18 validate action taken under the Iowa basic property insurance 4 19 inspection and placement program adopted by the commissioner 4 20 of insurance. 4 21 Sec. 10. Section 515F.3, unnumbered paragraph 2, Code 4 22 2003, is amended to read as follows: 4 23ThisExcept as otherwise provided in specific divisions of 4 24 this chapter, this chapter does not apply to: 4 25 Sec. 11. EFFECTIVE DATE. This Act, being deemed of 4 26 immediate importance, takes effect upon enactment. 4 27 4 28 4 29 4 30 CHRISTOPHER C. RANTS 4 31 Speaker of the House 4 32 4 33 4 34 4 35 MARY E. KRAMER 5 1 President of the Senate 5 2 5 3 I hereby certify that this bill originated in the House and 5 4 is known as House File 599, Eightieth General Assembly. 5 5 5 6 5 7 5 8 MARGARET THOMSON 5 9 Chief Clerk of the House 5 10 Approved , 2003 5 11 5 12 5 13 5 14 THOMAS J. VILSACK 5 15 Governor
Text: HF00598 Text: HF00600 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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