H-8372

   Amend Senate File 2316, as passed by the Senate, as follows:
   1.  Page 14, after line 1 by inserting: 
   <Sec. ___.  Section 508.25, Code 2018, is amended to read as follows:
   508.25  Policy forms —— approval and notification of lapse of policy.
   1.  It shall be unlawful for any insurance company transacting business within this state, under the provisions of this chapter, to write do any of the following:
   a.  Write or use any form of policy or contract of insurance, on the life of any individual in this state, until a copy of such form of policy or contract has been filed with and approved by the commissioner of insurance.
   b.  Fail to provide at least thirty calendar days’ advance written notice to a policyholder’s last known address prior to termination or lapse of the policyholder’s universal life policy or contract. The notice shall be in a conspicuously labeled envelope that indicates it contains important, time-sensitive information.
   c.  Fail to provide the notice required pursuant to subsection 2. The notice shall be provided by the insurer to a policyholder with the notice provided pursuant to paragraph “b” or as required by rules adopted by the commissioner.
   2.  The commissioner shall develop a written notice that shall be provided by an insurer to a policyholder to advise the policyholder of potential alternatives to the lapse or surrender of the policyholder’s universal life policy or contract. The notice shall comply with all of the following:
   a.  It shall be written in plain language.
   b.  It shall be developed at no cost to insurers or other entities licensed by the commissioner to conduct the business of life insurance.
   c.  It shall advise a policyholder of the policyholder’s rights regarding disposition of the policyholder’s policy.
   d.  It shall advise the policyholder that life insurance, a life settlement, or other alternative may be available to the policyholder dependent upon the terms of the policyholder’s universal life policy or contract and other factors including the age and health status of the insured person.
   e.  It shall advise the policyholder to contact the policyholder’s financial advisor, insurance agent, insurance broker, or attorney to obtain advice or assistance.
   3.  The commissioner shall adopt rules pursuant to chapter 17A to specifically administer the written notice requirements of this section.>
   2.  Title page, by striking lines 1 and 2 and inserting <An Act relating to transactions and notifications by domestic stock insurers and life insurance companies.>
   3.  By renumbering as necessary.

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PETTENGILL of Benton