House File 2369
HOUSE FILE
BY MURPHY
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the cancellation of liability insurance for
2 certain professions.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5547YH 80
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PAG LIN
1 1 Section 1. Section 519.8, Code 2003, is amended to read as
1 2 follows:
1 3 519.8 CANCELLATION OF POLICY.
1 4 Any certificate of membership, or policy, issued by such a
1 5 mutual insurance corporation may be canceled by the
1 6 corporation by giving thirty one hundred twenty days' written
1 7 notice thereof to the insured; or such cancellation may be
1 8 upon demand of the insured; and such cancellation, when so
1 9 made, either by the corporation or by the insured, shall be
1 10 upon a pro rata basis, and the cancellation of such
1 11 certificate or policy shall release the member from all other
1 12 future obligations to such corporation.
1 13 EXPLANATION
1 14 This bill provides that liability insurance issued by
1 15 certain mutual insurance corporations for certain persons
1 16 involved in medical professions, such as physicians and
1 17 surgeons, osteopathic physicians and surgeons, podiatric
1 18 physicians, chiropractors, pharmacists, dentists, graduate
1 19 nurses, and hospitals licensed under Code chapter 135B, cannot
1 20 be canceled by the corporation without giving 120 days'
1 21 written notice of the cancellation to the insured. Presently,
1 22 such an insured is entitled to only 30 days' written notice of
1 23 cancellation.
1 24 LSB 5547YH 80
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