CCS-2342
REPORT
OF
THE
CONFERENCE
COMMITTEE
ON
SENATE
FILE
2342
To
the
President
of
the
Senate
and
the
Speaker
of
the
House
of
Representatives:
We,
the
undersigned
members
of
the
conference
committee
appointed
to
resolve
the
differences
between
the
Senate
and
House
of
Representatives
on
Senate
File
2342,
a
bill
for
an
Act
relating
to
and
making
appropriations
to
certain
state
departments,
agencies,
funds,
and
certain
other
entities,
providing
for
regulatory
authority,
and
other
properly
related
matters,
and
including
effective
date
and
retroactive
applicability
provisions,
respectfully
make
the
following
report:
1.
That
the
Senate
recedes
from
its
amendment,
H-8288.
2.
That
the
House
recedes
from
its
amendment,
S-5156.
3.
That
Senate
File
2342,
as
amended,
passed,
and
reprinted
by
the
Senate,
is
amended
to
read
as
follows:
1.
Page
17,
by
striking
lines
22
through
29.
2.
Page
17,
after
line
31
by
inserting:
<
DIVISION
___
UNCLAIMED
LIFE
INSURANCE
DEATH
BENEFITS
Sec.
___.
NEW
SECTION
.
507B.4C
Unclaimed
life
insurance.
1.
Purpose.
The
purpose
of
this
section
is
to
require
complete
and
proper
disclosure,
transparency,
and
accountability
relating
to
any
method
of
payment
for
life
insurance
death
benefits
regulated
by
the
commissioner.
2.
Definitions.
As
used
in
this
section,
unless
the
context
otherwise
requires:
a.
“Account
owner”
means
the
owner
of
a
retained
asset
account
who
is
a
resident
of
this
state.
b.
“Annuity”
means
an
annuity
contract
issued
in
this
state.
“Annuity”
does
not
include
any
annuity
contract
used
to
fund
an
employment-based
retirement
plan
or
program
where
the
insurer
takes
direction
from
the
plan
sponsor
or
plan
administrator.
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c.
“Authorized
person”
means
a
policy
owner,
insured,
annuity
owner,
annuitant,
or
account
holder,
as
applicable
under
a
policy,
annuity,
or
retained
asset
account.
d.
“Death
master
file”
means
the
United
States
social
security
administration’s
death
master
file
or
any
other
database
or
service
that
is
at
least
as
comprehensive
as
the
United
States
social
security
administration’s
death
master
file
for
determining
that
a
person
has
died.
e.
“Death
master
file
match”
means
a
search
of
the
death
master
file
that
results
in
a
match
of
an
authorized
person’s
name
and
social
security
number
or
an
authorized
person’s
name
and
date
of
birth.
f.
“Insurer”
means
a
life
insurance
company
regulated
under
chapter
508.
g.
“Policy”
means
any
policy
or
certificate
of
life
insurance
issued
in
this
state.
“Policy”
does
not
include
any
of
the
following:
(1)
A
policy
or
certificate
of
life
insurance
which
provides
a
death
benefit
under
an
employee
benefit
plan
subject
to
the
federal
Employee
Retirement
Income
Security
Act
of
1974,
Pub.
L.
No.
93-406,
as
codified
at
29
U.S.C.
§1002
et
seq.
(2)
A
policy
or
certificate
of
life
insurance
which
provides
a
death
benefit
under
an
employee
benefit
plan
subject
to
a
federal
employee
benefit
program.
(3)
A
policy
or
certificate
of
life
insurance
which
is
used
to
fund
a
preneed
plan
for
cemetery
merchandise,
funeral
merchandise,
funeral
services,
or
a
combination
thereof.
(4)
A
policy
or
certificate
of
credit
life
or
accidental
death
insurance.
(5)
A
policy
issued
to
a
group
master
policyowner
for
which
the
insurer
does
not
provide
recordkeeping
services.
h.
“Recordkeeping
services”
means
services
provided
by
an
insurer
who
has
entered
into
an
agreement
with
a
group
policy
customer
to
be
responsible
for
obtaining,
maintaining,
and
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administering
in
the
insurer’s
own
recordkeeping
systems
at
least
all
of
the
following
information
about
each
individual
insured
under
the
insured’s
group
insurance
contract
or
a
line
of
coverage
thereunder:
(1)
Social
security
number
or
name
and
date
of
birth.
(2)
Beneficiary
designation
information.
(3)
Coverage
eligibility.
(4)
Benefit
amount.
(5)
Premium
payment
status.
i.
“Retained
asset
account”
means
an
interest-bearing
account
set
up
by
an
insurer
in
the
name
of
the
beneficiary
of
a
policy
or
annuity
upon
the
death
of
the
insured.
3.
Insurer
duties.
a.
For
any
in-force
policy,
annuity,
or
retained
asset
account
issued
for
delivery
in
this
state
for
which
the
insurer
has
not
previously
been
notified
of
a
claim,
an
insurer
shall
perform
a
comparison
of
such
policy,
annuity,
or
retained
asset
account
against
the
death
master
file,
on
at
least
a
semiannual
basis,
to
identify
potential
death
master
file
matches.
(1)
An
insurer
may
comply
with
the
requirements
of
this
subsection
by
using
the
full
death
master
file
for
the
initial
comparison
and
thereafter
using
the
death
master
file
update
files
for
subsequent
comparisons.
(2)
Nothing
in
this
section
shall
be
interpreted
to
limit
the
right
of
an
insurer
to
request
a
valid
death
certificate
as
part
of
any
claims
validation
process.
b.
If
an
insurer
learns
of
the
possible
death
of
an
authorized
person
through
a
death
master
file
match
or
otherwise,
the
insurer
shall,
within
ninety
days,
do
all
of
the
following:
(1)
Complete
a
good
faith
effort,
which
shall
be
documented
by
the
insurer,
to
confirm
the
death
of
the
authorized
person
against
other
available
records
and
information.
(2)
Review
the
insurer’s
records
to
determine
whether
the
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deceased
authorized
person
had
purchased
any
other
products
from
the
insurer.
(3)
Determine
whether
benefits
may
be
due
in
accordance
with
the
applicable
policy,
annuity,
or
retained
asset
account.
(4)
If
the
beneficiary
or
an
authorized
person
has
not
communicated
with
the
insurer
within
the
ninety-day
period,
take
reasonable
steps,
which
shall
be
documented
by
the
insurer,
to
locate
and
contact
any
beneficiary
or
other
authorized
person
on
the
policy,
annuity,
or
retained
asset
account,
including
sending
the
beneficiary
or
other
authorized
person
information
regarding
the
insurer’s
claims
process
and
regarding
the
need
to
provide
an
official
death
certificate,
if
applicable
under
the
policy,
annuity,
or
retained
asset
account.
c.
Every
insurer
shall
implement
procedures
to
account
for
all
of
the
following:
(1)
Common
nicknames,
initials
used
in
lieu
of
a
first
or
middle
name,
use
of
a
middle
name,
compound
first
and
middle
names,
and
interchanged
first
and
middle
names.
(2)
Compound
last
names,
maiden
or
married
names,
and
hyphens,
blank
spaces,
or
apostrophes
in
last
names.
(3)
Transposition
of
the
month
and
date
portions
of
the
date
of
birth.
(4)
Incomplete
social
security
numbers.
d.
An
insurer
may
disclose
minimum
necessary
personal
information
about
a
beneficiary
or
authorized
person
to
an
individual
or
entity
whom
the
insurer
reasonably
believes
may
be
able
to
assist
the
insurer
in
locating
the
beneficiary
or
authorized
person
entitled
to
payment
of
the
claims
proceeds.
e.
An
insurer
or
its
service
provider
shall
not
charge
a
beneficiary
or
authorized
person
any
fees
or
costs
associated
with
a
death
master
file
search
conducted
pursuant
to
this
section.
f.
The
benefits
from
a
policy,
annuity,
or
retained
asset
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account,
plus
any
applicable
accrued
interest,
shall
first
be
payable
to
designated
beneficiaries
or
authorized
persons,
and
in
the
event
that
the
beneficiaries
or
authorized
persons
cannot
be
found,
shall
be
reported
and
remitted
to
the
state
as
unclaimed
property
pursuant
to
chapters
556
and
633.
4.
Rules.
The
commissioner
shall
adopt
rules
to
administer
the
provisions
of
this
section.
5.
Orders.
The
commissioner
may
issue
an
order
doing
any
of
the
following:
a.
Limiting
the
death
master
file
comparisons
required
under
subsection
3,
paragraph
“a”
,
to
an
insurer’s
electronic
searchable
files
or
approving
a
plan
and
timeline
for
conversion
of
an
insurer’s
files
to
electronic
searchable
files.
b.
Exempting
an
insurer
from
the
death
master
file
comparisons
required
under
subsection
3,
paragraph
“a”
,
or
permitting
an
insurer
to
perform
such
comparisons
less
frequently
than
semiannually
upon
a
demonstration
of
financial
hardship
by
the
insurer.
c.
Phasing
in
requirements
for
compliance
with
this
section
according
to
a
plan
and
timeline
approved
by
the
commissioner.
6.
Unfair
trade
practice.
Failure
to
meet
any
requirement
of
this
section
with
such
frequency
as
to
constitute
a
general
business
practice
is
an
unfair
method
of
competition
and
an
unfair
or
deceptive
act
or
practice
in
the
business
of
insurance
under
this
chapter.
7.
Insurer
unclaimed
property
reporting.
a.
If
an
insurer
identifies
a
person
as
deceased
through
a
death
master
file
match
as
described
in
subsection
3,
paragraph
“a”
,
or
other
information
source,
and
validates
such
information
through
a
secondary
information
source,
the
insurer
may
report
and
remit
the
proceeds
of
the
policy,
annuity,
or
retained
asset
account
due
to
the
state
prior
to
the
dates
required
for
such
reporting
and
remittance
under
chapter
556,
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without
further
notice
to
or
consent
by
the
state,
after
attempting
to
contact
any
beneficiary
under
either
of
the
following
circumstances:
(1)
The
insurer
is
unable
to
locate
a
beneficiary
who
is
located
in
this
state
under
the
policy,
annuity
contract,
or
retained
asset
account,
after
conducting
reasonable
search
efforts
of
up
to
one
year
after
the
insurer’s
validation
of
the
death
master
file
match.
(2)
No
beneficiary
or
person,
as
applicable
for
unclaimed
property
reporting
purposes
under
chapter
556,
has
a
last
known
address
in
this
state.
b.
Once
the
insurer
has
reported
upon
and
remitted
the
proceeds
of
the
policy,
annuity,
or
retained
asset
account
to
the
state
pursuant
to
chapter
556,
the
insurer
is
relieved
from
any
and
all
additional
liability
to
any
beneficiary
or
authorized
person
relating
to
the
proceeds
reported
upon
and
remitted.
Sec.
___.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
effect
July
1,
2015.
>
3.
Page
17,
after
line
31
by
inserting:
<
DIVISION
___
IOWA
PRODUCTS
Sec.
___.
IOWA
PRODUCTS.
As
a
condition
of
receiving
an
appropriation,
any
agency
appropriated
moneys
pursuant
to
this
2014
Act
shall
give
first
preference
when
purchasing
a
product
to
an
Iowa
product
or
a
product
produced
by
an
Iowa-based
business.
Second
preference
shall
be
given
to
a
United
States
product
or
a
product
produced
by
a
business
based
in
the
United
States.
>
4.
By
striking
page
17,
line
34,
through
page
18,
line
24,
and
inserting:
<
Sec.
___.
PERSONNEL
SETTLEMENT
AGREEMENT
PAYMENTS.
As
a
condition
of
the
appropriations
in
this
Act,
the
moneys
appropriated
and
any
other
moneys
available
shall
not
be
used
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CCS-2342
for
payment
of
a
personnel
settlement
agreement
that
contains
a
confidentiality
provision
intended
to
prevent
public
disclosure
of
the
agreement
or
any
terms
of
the
agreement.
>
5.
Page
18,
by
striking
lines
28
and
29.
6.
Title
page,
line
4,
after
<
matters,
>
by
inserting
<
including
penalties,
>
7.
Title
page,
line
4
and
5,
by
striking
<
and
retroactive
applicability
>
8.
By
renumbering
as
necessary.
ON
THE
PART
OF
THE
SENATE:
______________________________
LIZ
MATHIS,
CHAIRPERSON
______________________________
MICHAEL
E.
GRONSTAL
______________________________
MATT
McCOY
ON
THE
PART
OF
THE
HOUSE:
______________________________
RALPH
WATTS,
CHAIRPERSON
______________________________
DAN
KELLEY
______________________________
JOHN
LANDON
______________________________
DAWN
PETTENGILL
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