House Amendment to Senate File 2342 S-5156 Amend Senate File 2342, as amended, passed, and 1 reprinted by the Senate, as follows: 2 1. Page 17, by striking lines 22 through 29. 3 2. Page 17, after line 31 by inserting: 4 < DIVISION ___ 5 UNCLAIMED LIFE INSURANCE DEATH BENEFITS 6 Sec. ___. NEW SECTION . 507B.4C Unclaimed life 7 insurance. 8 1. Purpose. The purpose of this section is to 9 require complete and proper disclosure, transparency, 10 and accountability relating to any method of payment 11 for life insurance death benefits regulated by the 12 commissioner. 13 2. Definitions. As used in this section, unless 14 the context otherwise requires: 15 a. “Account owner” means the owner of a retained 16 asset account who is a resident of this state. 17 b. “Annuity” means an annuity contract issued in 18 this state. “Annuity” does not include any annuity 19 contract used to fund an employment-based retirement 20 plan or program where the insurer takes direction from 21 the plan sponsor or plan administrator. 22 c. “Authorized person” means a policy owner, 23 insured, annuity owner, annuitant, or account holder, 24 as applicable under a policy, annuity, or retained 25 asset account. 26 d. “Death master file” means the United States 27 social security administration’s death master file 28 or any other database or service that is at least as 29 comprehensive as the United States social security 30 administration’s death master file for determining that 31 a person has died. 32 e. “Death master file match” means a search of 33 the death master file that results in a match of an 34 authorized person’s name and social security number or 35 an authorized person’s name and date of birth. 36 f. “Insurer” means a life insurance company 37 regulated under chapter 508. 38 g. “Policy” means any policy or certificate of life 39 insurance issued in this state. “Policy” does not 40 include any of the following: 41 (1) A policy or certificate of life insurance which 42 provides a death benefit under an employee benefit 43 plan subject to the federal Employee Retirement Income 44 Security Act of 1974, Pub. L. No. 93-406, as codified 45 at 29 U.S.C. §1002 et seq. 46 (2) A policy or certificate of life insurance which 47 provides a death benefit under an employee benefit plan 48 subject to a federal employee benefit program. 49 (3) A policy or certificate of life insurance 50 -1- SF2342.4058.H (1) 85 md 1/ 5 #1. #2.

which is used to fund a preneed plan for cemetery 1 merchandise, funeral merchandise, funeral services, or 2 a combination thereof. 3 (4) A policy or certificate of credit life or 4 accidental death insurance. 5 (5) A policy issued to a group master policyowner 6 for which the insurer does not provide recordkeeping 7 services. 8 h. “Recordkeeping services” means services provided 9 by an insurer who has entered into an agreement with a 10 group policy customer to be responsible for obtaining, 11 maintaining, and administering in the insurer’s own 12 recordkeeping systems at least all of the following 13 information about each individual insured under 14 the insured’s group insurance contract or a line of 15 coverage thereunder: 16 (1) Social security number or name and date of 17 birth. 18 (2) Beneficiary designation information. 19 (3) Coverage eligibility. 20 (4) Benefit amount. 21 (5) Premium payment status. 22 i. “Retained asset account” means an 23 interest-bearing account set up by an insurer in 24 the name of the beneficiary of a policy or annuity upon 25 the death of the insured. 26 3. Insurer duties. 27 a. For any in-force policy, annuity, or retained 28 asset account issued for delivery in this state for 29 which the insurer has not previously been notified of 30 a claim, an insurer shall perform a comparison of such 31 policy, annuity, or retained asset account against the 32 death master file, on at least a semiannual basis, to 33 identify potential death master file matches. 34 (1) An insurer may comply with the requirements of 35 this subsection by using the full death master file for 36 the initial comparison and thereafter using the death 37 master file update files for subsequent comparisons. 38 (2) Nothing in this section shall be interpreted to 39 limit the right of an insurer to request a valid death 40 certificate as part of any claims validation process. 41 b. If an insurer learns of the possible death of an 42 authorized person through a death master file match or 43 otherwise, the insurer shall, within ninety days, do 44 all of the following: 45 (1) Complete a good faith effort, which shall be 46 documented by the insurer, to confirm the death of the 47 authorized person against other available records and 48 information. 49 (2) Review the insurer’s records to determine 50 -2- SF2342.4058.H (1) 85 md 2/ 5

whether the deceased authorized person had purchased 1 any other products from the insurer. 2 (3) Determine whether benefits may be due in 3 accordance with the applicable policy, annuity, or 4 retained asset account. 5 (4) If the beneficiary or an authorized person 6 has not communicated with the insurer within the 7 ninety-day period, take reasonable steps, which shall 8 be documented by the insurer, to locate and contact any 9 beneficiary or other authorized person on the policy, 10 annuity, or retained asset account, including sending 11 the beneficiary or other authorized person information 12 regarding the insurer’s claims process and regarding 13 the need to provide an official death certificate, if 14 applicable under the policy, annuity, or retained asset 15 account. 16 c. Every insurer shall implement procedures to 17 account for all of the following: 18 (1) Common nicknames, initials used in lieu of a 19 first or middle name, use of a middle name, compound 20 first and middle names, and interchanged first and 21 middle names. 22 (2) Compound last names, maiden or married names, 23 and hyphens, blank spaces, or apostrophes in last 24 names. 25 (3) Transposition of the month and date portions of 26 the date of birth. 27 (4) Incomplete social security numbers. 28 d. An insurer may disclose minimum necessary 29 personal information about a beneficiary or authorized 30 person to an individual or entity whom the insurer 31 reasonably believes may be able to assist the insurer 32 in locating the beneficiary or authorized person 33 entitled to payment of the claims proceeds. 34 e. An insurer or its service provider shall not 35 charge a beneficiary or authorized person any fees 36 or costs associated with a death master file search 37 conducted pursuant to this section. 38 f. The benefits from a policy, annuity, or retained 39 asset account, plus any applicable accrued interest, 40 shall first be payable to designated beneficiaries 41 or authorized persons, and in the event that the 42 beneficiaries or authorized persons cannot be found, 43 shall be reported and remitted to the state as 44 unclaimed property pursuant to chapters 556 and 633. 45 4. Rules. The commissioner shall adopt rules to 46 administer the provisions of this section. 47 5. Orders. The commissioner may issue an order 48 doing any of the following: 49 a. Limiting the death master file comparisons 50 -3- SF2342.4058.H (1) 85 md 3/ 5

required under subsection 3, paragraph “a” , to an 1 insurer’s electronic searchable files or approving a 2 plan and timeline for conversion of an insurer’s files 3 to electronic searchable files. 4 b. Exempting an insurer from the death master file 5 comparisons required under subsection 3, paragraph “a” , 6 or permitting an insurer to perform such comparisons 7 less frequently than semiannually upon a demonstration 8 of financial hardship by the insurer. 9 c. Phasing in requirements for compliance with this 10 section according to a plan and timeline approved by 11 the commissioner. 12 6. Unfair trade practice. Failure to meet any 13 requirement of this section with such frequency as to 14 constitute a general business practice is an unfair 15 method of competition and an unfair or deceptive act 16 or practice in the business of insurance under this 17 chapter. 18 7. Insurer unclaimed property reporting. 19 a. If an insurer identifies a person as deceased 20 through a death master file match as described in 21 subsection 3, paragraph “a” , or other information 22 source, and validates such information through a 23 secondary information source, the insurer may report 24 and remit the proceeds of the policy, annuity, or 25 retained asset account due to the state prior to the 26 dates required for such reporting and remittance under 27 chapter 556, without further notice to or consent by 28 the state, after attempting to contact any beneficiary 29 under either of the following circumstances: 30 (1) The insurer is unable to locate a beneficiary 31 who is located in this state under the policy, annuity 32 contract, or retained asset account, after conducting 33 reasonable search efforts of up to one year after the 34 insurer’s validation of the death master file match. 35 (2) No beneficiary or person, as applicable for 36 unclaimed property reporting purposes under chapter 37 556, has a last known address in this state. 38 b. Once the insurer has reported upon and remitted 39 the proceeds of the policy, annuity, or retained 40 asset account to the state pursuant to chapter 556, 41 the insurer is relieved from any and all additional 42 liability to any beneficiary or authorized person 43 relating to the proceeds reported upon and remitted. 44 Sec. ___. EFFECTIVE DATE. This division of this 45 Act takes effect July 1, 2015. > 46 3. Page 17, after line 31 by inserting: 47 < DIVISION ___ 48 IOWA PRODUCTS 49 Sec. ___. IOWA PRODUCTS. As a condition of 50 -4- SF2342.4058.H (1) 85 md 4/ 5 #3.

receiving an appropriation, any agency appropriated 1 moneys pursuant to this 2014 Act shall give first 2 preference when purchasing a product to an Iowa product 3 or a product produced by an Iowa-based business. 4 Second preference shall be given to a United States 5 product or a product produced by a business based in 6 the United States. > 7 4. By striking page 17, line 34, through page 18, 8 line 24, and inserting: 9 < Sec. ___. PERSONNEL SETTLEMENT AGREEMENT 10 PAYMENTS. As a condition of the appropriations in 11 this Act, the moneys appropriated and any other moneys 12 available shall not be used for payment of a personnel 13 settlement agreement that contains a confidentiality 14 provision intended to prevent public disclosure of the 15 agreement or any terms of the agreement. > 16 5. Page 18, by striking lines 28 and 29. 17 6. Title page, line 4, after < matters, > by 18 inserting < including penalties, > 19 7. Title page, line 4 and 5, by striking < and 20 retroactive applicability > 21 8. By renumbering as necessary. 22 -5- SF2342.4058.H (1) 85 md 5/ 5 #4. #5. #6. #7.