House
File
2339
-
Introduced
HOUSE
FILE
2339
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
HSB
621)
A
BILL
FOR
An
Act
relating
to
various
matters
under
the
purview
of
the
1
insurance
division
of
the
department
of
commerce,
providing
2
penalties,
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5183HV
(3)
84
av/nh
H.F.
2339
Section
1.
Section
135.22A,
subsection
2,
paragraph
g,
Code
1
2011,
is
amended
by
striking
the
paragraph.
2
Sec.
2.
Section
502.412,
subsection
3,
Code
2011,
is
amended
3
to
read
as
follows:
4
3.
Disciplinary
penalties
——
registrants.
If
the
5
administrator
finds
that
the
order
is
in
the
public
interest
6
and
subsection
4
,
paragraphs
“a”
through
“f”
,
“h”
,
“i”
,
“j”
,
7
“l”
,
or
“m”
,
authorizes
the
action,
an
order
under
this
chapter
8
may
censure,
impose
a
bar,
or
impose
a
civil
penalty
in
an
9
amount
not
to
exceed
a
maximum
of
five
ten
thousand
dollars
10
for
a
single
violation
or
five
hundred
thousand
one
million
11
dollars
for
more
than
one
violation,
or
in
an
amount
as
agreed
12
to
by
the
parties,
on
a
registrant,
and,
if
the
registrant
is
13
a
broker-dealer
or
investment
adviser,
a
partner,
officer,
14
director,
or
person
having
a
similar
status
or
performing
15
similar
functions,
or
a
person
directly
or
indirectly
in
16
control,
of
the
broker-dealer
or
investment
adviser.
17
Sec.
3.
Section
502.604,
subsection
4,
Code
Supplement
18
2011,
is
amended
to
read
as
follows:
19
4.
Civil
penalty
——
restitution
——
corrective
action.
In
a
20
final
order
under
subsection
3
,
the
administrator
may
impose
a
21
civil
penalty
up
to
an
amount
not
to
exceed
a
maximum
of
five
22
ten
thousand
dollars
for
a
single
violation
or
five
hundred
23
thousand
one
million
dollars
for
more
than
one
violation,
or
24
in
an
amount
as
agreed
to
by
the
parties,
order
restitution,
25
or
take
other
corrective
action
as
the
administrator
deems
26
necessary
and
appropriate
to
accomplish
compliance
with
27
the
laws
of
the
state
relating
to
all
securities
business
28
transacted
in
the
state.
29
Sec.
4.
Section
502.604,
Code
Supplement
2011,
is
amended
by
30
adding
the
following
new
subsection:
31
NEW
SUBSECTION
.
5A.
Failure
to
obey
cease
and
desist
32
order.
A
person
who
fails
to
obey
a
valid
cease
and
desist
33
order
issued
by
the
administrator
under
this
section
may,
after
34
notice
and
opportunity
for
a
hearing,
be
subject
to
a
civil
35
-1-
LSB
5183HV
(3)
84
av/nh
1/
22
H.F.
2339
penalty
in
an
amount
of
not
less
than
one
thousand
dollars
and
1
not
to
exceed
ten
thousand
dollars
for
violating
the
order.
2
Each
day
the
failure
to
obey
the
cease
and
desist
order
occurs
3
or
continues
constitutes
a
separate
violation
of
the
order.
4
The
penalties
provided
in
this
subsection
are
in
addition
to,
5
and
not
exclusive
of,
other
remedies
that
may
be
available.
6
Sec.
5.
Section
505.8,
subsection
10,
Code
Supplement
2011,
7
is
amended
to
read
as
follows:
8
10.
The
commissioner
may,
after
a
hearing
conducted
9
pursuant
to
chapter
17A
,
assess
fines
or
penalties
,
;
assess
10
costs
of
an
examination,
investigation
,
or
proceeding
,
;
11
order
restitution
,
;
or
take
other
corrective
action
as
the
12
commissioner
deems
necessary
and
appropriate
to
accomplish
13
compliance
with
the
laws
of
the
state
relating
to
all
insurance
14
business
transacted
in
the
state.
15
Sec.
6.
NEW
SECTION
.
506.14
Voluntary
dissolution
of
16
domestic
mutual
insurance
companies.
17
1.
Any
plan
for
voluntary
dissolution
of
a
domestic
18
mutual
insurance
company
licensed
to
transact
the
business
19
of
insurance
under
chapter
508,
515,
518,
or
518A
shall
be
20
presented
for
approval
by
the
commissioner
not
less
than
ninety
21
days
in
advance
of
notice
of
the
plan
to
policyholders.
22
2.
The
commissioner
shall
approve
the
plan
if
the
23
commissioner
finds
that
the
plan
complies
with
all
applicable
24
provisions
of
law
and
is
fair
and
equitable
to
the
domestic
25
mutual
insurance
company
and
its
policyholders.
26
Sec.
7.
Section
507.10,
subsection
4,
paragraph
a,
Code
27
2011,
is
amended
to
read
as
follows:
28
a.
All
orders
entered
pursuant
to
subsection
3
,
paragraph
29
“a”
,
shall
be
accompanied
by
findings
and
conclusions
resulting
30
from
the
commissioner’s
consideration
and
review
of
the
31
examination
report,
relevant
examiner
work
papers,
and
any
32
written
submissions
or
rebuttals.
Any
such
order
is
a
final
33
administrative
decision
and
may
be
appealed
pursuant
to
chapter
34
17A
,
and
shall
be
served
upon
the
company
by
certified
mail,
35
-2-
LSB
5183HV
(3)
84
av/nh
2/
22
H.F.
2339
together
with
a
copy
of
the
adopted
examination
report.
Within
1
thirty
days
of
the
issuance
of
the
adopted
report,
the
company
2
shall
file
affidavits
executed
by
each
of
its
directors
stating
3
under
oath
that
they
have
received
a
copy
of
the
adopted
report
4
and
related
orders.
The
board
of
directors
of
the
company
5
shall
timely
review
the
adopted
report.
The
minutes
of
the
6
meeting
of
the
board
at
which
the
adopted
report
is
considered
7
shall
reflect
that
each
member
of
the
board
has
reviewed
the
8
adopted
report.
9
Sec.
8.
Section
507.14,
subsection
4,
Code
2011,
is
amended
10
to
read
as
follows:
11
4.
Confidential
documents,
materials,
information,
12
administrative
or
judicial
orders,
or
other
actions
may
be
13
disclosed
to
a
regulatory
official
of
any
state,
federal
14
agency,
or
foreign
country
provided
that
the
recipients
are
15
required,
under
their
law,
to
maintain
their
confidentiality.
16
Confidential
records
may
be
disclosed
to
the
national
17
association
of
insurance
commissioners
,
the
international
18
association
of
insurance
supervisors,
and
the
bank
for
19
international
settlements,
provided
that
the
association
20
certifies
associations
and
the
bank
certify
by
written
21
statement
that
the
confidentiality
of
the
records
will
be
22
maintained.
23
Sec.
9.
Section
507B.4,
Code
2011,
is
amended
by
adding
the
24
following
new
subsection:
25
NEW
SUBSECTION
.
20.
Refund
of
unearned
premium.
Failure
of
26
an
issuer
of
a
Medicare
supplement
policy
to
adjust
coverage
27
dates
to
terminate
coverage
on
the
date
that
coincides
with
28
the
effective
date
of
a
policy
or
contract
providing
any
29
hospital,
medical,
prescription
drug,
or
other
health
care
30
benefits
pursuant
to
42
U.S.C.
ch.
7,
subch.
XVIII,
Part
C,
31
commonly
known
as
Medicare
Part
C,
pursuant
to
Tit.
XVIII
of
32
the
federal
Social
Security
Act,
or
any
regulations
issued
33
pursuant
thereto,
and
to
refund
any
unearned
premium
to
the
34
insured
based
on
that
revised
termination
date,
where
the
35
-3-
LSB
5183HV
(3)
84
av/nh
3/
22
H.F.
2339
policyholder
or
contract
holder
provides
written
notice
to
the
1
issuer
that
the
policyholder
or
contract
holder
desires
to
2
terminate
the
policy
or
contract
and
provides
documentation
3
substantiating
that
the
policyholder
or
contract
holder
has
4
coverage
commonly
known
as
Medicare
Part
C.
This
subsection
5
shall
not
be
construed
to
require
a
refund
of
premium
for
any
6
period
of
time
in
excess
of
five
years
prior
to
the
date
that
7
written
notice
is
provided
to
an
issuer.
8
Sec.
10.
NEW
SECTION
.
507C.17A
Rehabilitation
or
9
liquidation
of
a
domestic
insurer
covered
under
the
federal
10
Dodd-Frank
Wall
Street
Reform
and
Consumer
Protection
Act.
11
1.
The
provisions
of
this
section
apply
in
accordance
12
with
Tit.
II
of
the
federal
Dodd-Frank
Wall
Street
Reform
and
13
Consumer
Protection
Act,
Pub.
L.
No.
111-203,
12
U.S.C.
§
5301
14
et
seq.,
with
respect
to
a
domestic
insurer
that
is
a
covered
15
financial
company,
as
that
term
is
defined
under
12
U.S.C.
§
16
5381.
17
2.
The
commissioner
may
petition
the
district
court
for
an
18
order
of
rehabilitation
or
liquidation
of
a
domestic
insurer
19
pursuant
to
this
section
on
any
of
the
following
grounds:
20
a.
Upon
a
determination
and
notification
given
by
the
21
secretary
of
the
treasury
of
the
United
States,
in
consultation
22
with
the
president
of
the
United
States,
that
the
insurer
is
23
a
covered
financial
company
satisfying
the
requirements
of
24
12
U.S.C.
§
5383(b),
and
the
board
of
directors,
or
a
body
25
performing
similar
functions
of
a
board
of
directors,
of
the
26
insurer
acquiesces
or
consents
to
the
appointment
of
a
receiver
27
pursuant
to
12
U.S.C.
§
5382(a)(1)(A)(i)
with
such
consent
28
to
be
considered
as
consent
to
an
order
of
rehabilitation
or
29
liquidation.
30
b.
Upon
an
order
of
the
United
States
district
court
for
31
the
District
of
Columbia
under
12
U.S.C.
§
5382(a)(1)(A)(iv)(I)
32
granting
the
petition
of
the
secretary
of
the
treasury
of
33
the
United
States
concerning
the
insurer
under
12
U.S.C.
§
34
5382(a)(1)(A)(i).
35
-4-
LSB
5183HV
(3)
84
av/nh
4/
22
H.F.
2339
c.
A
petition
by
the
secretary
of
the
treasury
of
the
United
1
States
concerning
the
insurer
is
granted
by
operation
of
law
2
under
12
U.S.C.
§
5382(a)(1)(A)(v).
3
3.
Notwithstanding
any
other
provision
of
law
to
the
4
contrary,
after
notice
to
the
insurer,
a
district
court
5
may
grant
an
order
of
rehabilitation
or
liquidation
within
6
twenty-four
hours
after
the
filing
of
such
a
petition
pursuant
7
to
this
section.
8
4.
If
the
district
court
does
not
make
a
determination
on
a
9
petition
for
an
order
of
rehabilitation
or
liquidation
filed
by
10
the
commissioner
pursuant
to
this
section
within
twenty-four
11
hours
after
the
filing
of
the
petition,
the
order
shall
be
12
deemed
granted
by
operation
of
law
upon
the
expiration
of
the
13
twenty-four-hour
period.
14
a.
At
the
time
that
an
order
is
deemed
granted
under
this
15
subsection,
the
provisions
of
this
chapter
shall
be
deemed
16
to
be
in
effect,
and
the
commissioner
shall
be
deemed
to
be
17
affirmed
as
receiver
and
to
have
all
of
the
applicable
powers
18
provided
by
this
chapter,
regardless
of
whether
an
order
has
19
been
entered
by
the
district
court.
20
b.
If
an
order
is
deemed
granted
by
operation
of
law
under
21
this
subsection,
the
district
court
shall
expeditiously
enter
22
an
order
of
rehabilitation
or
liquidation
that
does
all
of
the
23
following:
24
(1)
Is
effective
as
of
the
date
that
the
order
is
deemed
25
granted
by
operation
of
law.
26
(2)
Conforms
to
the
provisions
for
rehabilitation
or
27
liquidation
of
an
insurer
contained
in
this
chapter,
as
28
applicable.
29
5.
An
order
of
rehabilitation
or
liquidation
made
pursuant
30
to
this
section
shall
not
be
subject
to
a
stay
or
injunction
31
pending
appeal.
32
6.
Nothing
in
this
section
shall
be
construed
to
supersede
33
or
impair
any
other
power
or
authority
of
the
commissioner
or
34
the
district
court
under
this
chapter.
35
-5-
LSB
5183HV
(3)
84
av/nh
5/
22
H.F.
2339
Sec.
11.
Section
507E.5,
subsection
2,
Code
2011,
is
amended
1
to
read
as
follows:
2
2.
The
commissioner
may
share
documents,
materials,
or
3
other
information,
including
confidential
and
privileged
4
documents,
materials,
or
other
information,
with
other
5
state,
federal,
and
international
regulatory
agencies,
with
6
the
national
association
of
insurance
commissioners
and
its
7
affiliates
or
subsidiaries,
and
with
local,
state,
federal,
and
8
international
law
enforcement
authorities,
provided
that
the
9
recipient
agrees
to
maintain
the
confidential
and
privileged
10
status
of
the
document,
material,
or
other
information,
11
pursuant
to
Iowa
law.
12
Sec.
12.
Section
511.8,
subsection
14,
Code
Supplement
13
2011,
is
amended
to
read
as
follows:
14
14.
Urban
real
estate
and
personal
property.
15
a.
Personal
or
real
property
or
both
located
within
the
16
United
States
or
the
Dominion
of
Canada,
other
than
real
17
property
used
or
to
be
used
primarily
for
agricultural,
18
horticultural,
ranching
or
mining
purposes,
which
produces
19
income
or
which
by
suitable
improvement
will
produce
income.
20
However,
personal
property
acquired
under
this
subsection
shall
21
be
acquired
for
the
purpose
of
entering
into
a
contract
for
22
the
sale
or
for
a
use
under
which
the
contractual
payments
23
may
reasonably
be
expected
to
result
in
the
recovery
of
the
24
investment
and
an
investment
return
within
the
anticipated
25
useful
life
of
the
property.
Legal
title
to
the
real
property
26
may
be
acquired
subject
to
a
contract
of
sale.
27
b.
“Real
property”
as
used
in
this
subsection
includes
a
all
28
of
the
following:
29
(1)
A
leasehold
of
real
estate
,
an
.
30
(2)
An
undivided
interest
in
a
leasehold
of
real
estate
,
and
31
an
.
32
(3)
An
undivided
interest
in
the
fee
title
of
real
estate.
33
(4)
A
controlling
membership,
partnership,
shareholder,
or
34
trust
interest
in
any
entity
created
solely
for
the
purpose
35
-6-
LSB
5183HV
(3)
84
av/nh
6/
22
H.F.
2339
of
owning
and
operating
any
of
the
interests
described
in
1
subparagraph
(1),
(2),
or
(3),
if
the
entity
is
expressly
2
limited
to
that
purpose
within
its
organizational
documents.
3
c.
Investments
under
this
subsection
are
not
eligible
in
4
excess
of
ten
percent
of
the
legal
reserve.
5
Sec.
13.
Section
511.8,
subsection
19,
Code
Supplement
6
2011,
is
amended
to
read
as
follows:
7
19.
Other
foreign
government
or
corporate
obligations.
8
a.
Bonds
or
other
evidences
of
indebtedness,
not
to
9
include
currency,
issued,
assumed,
or
guaranteed
by
a
foreign
10
government
other
than
Canada,
or
by
a
corporation
incorporated
11
under
the
laws
of
a
foreign
government
other
than
Canada.
Such
12
governmental
obligations
must
be
valid,
legally
authorized
13
and
issued,
and
on
the
date
of
acquisition
have
predominantly
14
investment
qualities
and
characteristics
as
provided
by
15
rule.
Such
corporate
obligations
must
meet
the
qualifications
16
established
in
subsection
5
for
bonds
and
other
evidences
of
17
indebtedness
issued,
assumed,
or
guaranteed
by
a
corporation
18
incorporated
under
the
laws
of
the
United
States
or
Canada.
19
Foreign
investments
authorized
by
this
subsection
are
not
20
eligible
in
excess
of
twenty
twenty-five
percent
of
the
21
legal
reserve
of
the
life
insurance
company
or
association.
22
Investments
in
obligations
of
a
foreign
government,
other
23
than
Canada
and
,
the
United
Kingdom,
and
foreign
governments
24
rated
AAA
by
Standard
and
Poor’s
division
of
McGraw-Hill
25
companies,
inc.,
or
Aaa
by
Moody’s
investors
services,
inc.,
26
are
not
eligible
in
excess
of
two
percent
of
the
legal
reserve
27
in
the
securities
of
foreign
governments
of
any
one
foreign
28
nation.
Investments
in
obligations
of
the
United
Kingdom
are
29
not
eligible
in
excess
of
four
percent
of
the
legal
reserve.
30
Investments
in
obligations
of
foreign
governments
rated
either
31
AAA
by
Standard
and
Poor’s
division
of
McGraw-Hill
companies,
32
inc.,
or
Aaa
by
Moody’s
investors
services,
inc.,
are
not
33
eligible
in
excess
of
five
percent
of
the
legal
reserve.
34
Investments
in
a
corporation
incorporated
under
the
laws
of
a
35
-7-
LSB
5183HV
(3)
84
av/nh
7/
22
H.F.
2339
foreign
government
other
than
Canada
are
not
eligible
in
excess
1
of
two
percent
of
the
legal
reserve
in
the
securities
of
any
2
one
foreign
corporation.
3
b.
Eligible
investments
in
foreign
obligations
under
this
4
subsection
are
limited
to
the
types
of
obligations
specifically
5
referred
to
in
this
subsection
.
This
subsection
in
no
way
6
limits
or
restricts
investments
in
Canadian
obligations
and
7
securities
specifically
authorized
in
other
subsections
of
this
8
section
.
9
c.
This
subsection
shall
not
authorize
investment
in
10
evidences
of
indebtedness
issued,
assumed,
or
guaranteed
by
a
11
foreign
government
which
engages
in
a
consistent
pattern
of
12
gross
violations
of
human
rights.
13
Sec.
14.
Section
511.8,
subsection
23,
Code
Supplement
14
2011,
is
amended
by
adding
the
following
new
paragraph:
15
NEW
PARAGRAPH
.
g.
For
securities
loaned
pursuant
to
this
16
subsection
that
are
included
in
the
legal
reserve
of
the
life
17
insurance
company
or
association,
the
collateral
received
for
18
the
loaned
securities
shall
not
be
eligible
for
inclusion
in
19
the
legal
reserve.
20
Sec.
15.
Section
511.40,
Code
2011,
is
amended
by
adding
the
21
following
new
subsection:
22
NEW
SUBSECTION
.
5.
a.
The
gross
amount
of
premiums
23
received
by
a
life
insurance
company
or
association
for
an
24
employer-owned
life
insurance
contract
which
has
not
been
25
allocated
to
another
state
shall
be
allocated
to
this
state
26
for
purposes
of
section
432.1,
subsection
1,
if
either
of
the
27
following
is
applicable:
28
(1)
The
contract
is
issued
or
delivered
in
this
state.
29
(2)
The
company
or
association
is
domiciled
in
this
state.
30
b.
To
the
extent
that
premiums
are
allocated
to
this
state
31
pursuant
to
paragraph
“a”
,
the
provisions
of
section
505.14
are
32
not
applicable
to
those
premiums.
33
c.
As
used
in
this
subsection,
“employer-owned
life
34
insurance
contract”
means
a
policy
which
provides
coverage
on
35
-8-
LSB
5183HV
(3)
84
av/nh
8/
22
H.F.
2339
a
life
for
which
the
employer
has
an
insurable
interest
under
1
this
section
or
a
similar
provision
of
the
laws
of
another
2
state
and
the
policy
is
owned
by
either
the
employer
or
a
trust
3
established
by
the
employer
for
the
benefit
of
the
employer
or
4
the
employer’s
active
or
retired
employees.
5
Sec.
16.
Section
514.4,
Code
2011,
is
amended
to
read
as
6
follows:
7
514.4
Directors.
8
1.
At
least
two-thirds
of
the
directors
of
a
hospital
9
service
corporation,
medical
service
corporation,
dental
10
service
corporation,
or
pharmaceutical
or
optometric
service
11
corporation
subject
to
this
chapter
shall
be
at
all
times
12
subscribers
and
not
more
than
one-third
of
the
directors
13
shall
be
providers
as
provided
in
this
section
.
The
board
of
14
directors
of
each
corporation
shall
consist
of
at
least
nine
15
members.
16
2.
A
subscriber
director
is
a
director
of
the
board
of
17
a
corporation
who
is
a
subscriber
and
who
is
not
a
provider
18
of
health
care
pursuant
to
section
514B.1,
subsection
7
,
a
19
person
who
has
material
financial
or
fiduciary
interest
in
the
20
delivery
of
health
care
services
or
a
related
industry,
an
21
employee
of
an
institution
which
provides
health
care
services,
22
or
a
spouse
or
a
member
of
the
immediate
family
of
such
a
23
person.
However,
a
subscriber
director
of
a
dental
service
24
corporation
may
be
an
employee,
officer,
director,
or
trustee
25
of
a
hospital
or
other
entity
that
does
not
have
a
provider
26
contract
with
the
dental
service
corporation.
A
subscriber
27
director
of
a
hospital
or
medical
service
corporation
shall
be
28
a
subscriber
of
the
services
of
that
corporation.
29
3.
A
provider
director
of
a
corporation
subject
to
this
30
chapter
shall
be
at
all
times
a
person
who
has
a
material
31
financial
interest
in
or
is
a
fiduciary
to
or
an
employee
32
of
or
is
a
spouse
or
member
of
the
immediate
family
of
a
33
provider
having
a
contract
with
such
corporation
to
render
to
34
its
subscribers
the
services
of
such
corporation
or
who
is
a
35
-9-
LSB
5183HV
(3)
84
av/nh
9/
22
H.F.
2339
hospital
trustee.
1
4.
A
director
may
serve
on
a
board
of
only
one
corporation
2
at
a
time
subject
to
this
chapter
.
3
5.
The
commissioner
of
insurance
shall
adopt
rules
pursuant
4
to
chapter
17A
to
implement
the
process
of
the
election
of
5
subscriber
directors
of
the
board
of
directors
of
a
corporation
6
to
ensure
the
representation
of
a
broad
spectrum
of
subscriber
7
interest
on
each
board
and
establish
criteria
for
the
selection
8
of
nominees.
The
rules
shall
provide
for
an
independent
9
subscriber
nominating
committee
to
serve
until
the
composition
10
of
the
board
of
directors
meets
the
percentage
requirements
11
of
this
section
.
Once
the
composition
requirements
of
this
12
section
are
met,
the
nominations
for
subscriber
directors
13
shall
be
made
by
the
subscriber
directors
of
the
board
under
14
procedures
the
board
establishes
which
shall
also
permit
15
nomination
by
a
petition
of
at
least
fifty
subscribers.
The
16
board
shall
also
establish
procedures
to
permit
nomination
of
17
provider
directors
by
petition
of
at
least
fifty
participating
18
providers.
A
member
of
the
board
of
directors
of
a
corporation
19
subject
to
this
chapter
shall
not
serve
on
the
independent
20
subscriber
nominating
committee.
The
nominating
committee
21
shall
consist
of
subscribers
as
defined
in
this
section
.
The
22
rules
of
the
commissioner
of
insurance
shall
also
permit
23
nomination
of
subscriber
directors
by
a
petition
of
at
least
24
fifty
subscribers,
and
nomination
of
provider
directors
25
by
a
petition
of
at
least
fifty
participating
providers.
26
These
petitions
shall
be
considered
only
by
the
independent
27
nominating
committee
during
the
duration
of
the
committee.
28
Following
the
discontinuance
of
the
committee,
the
petition
29
process
shall
be
continued
and
the
board
of
directors
of
the
30
corporation
shall
consider
the
petitions.
The
independent
31
subscriber
nominating
committee
is
not
subject
to
chapter
17A
.
32
The
nominating
committee
shall
not
receive
per
diem
or
expenses
33
for
the
performance
of
their
duties.
34
6.
Population
factors,
representation
of
different
35
-10-
LSB
5183HV
(3)
84
av/nh
10/
22
H.F.
2339
geographic
regions,
and
the
demography
of
the
service
area
of
1
the
corporation
subject
to
this
chapter
shall
be
considered
2
when
making
nominations
for
the
board
of
directors
of
a
3
corporation
subject
to
this
chapter
.
4
7.
A
corporation
serving
states
in
addition
to
Iowa
shall
be
5
required
to
implement
this
section
only
for
directors
who
are
6
residents
of
Iowa
and
elected
as
board
members
from
Iowa.
7
Sec.
17.
Section
515.26,
Code
2011,
is
amended
to
read
as
8
follows:
9
515.26
Directors.
10
The
affairs
of
a
company
organized
as
provided
by
this
11
chapter
shall
be
managed
by
a
number
of
directors,
of
not
less
12
than
five
nor
more
than
twenty-one.
In
the
case
of
a
mutual
13
company,
all
such
directors
shall
be
policyholders.
14
Sec.
18.
Section
515.69,
subsection
1,
Code
2011,
is
amended
15
to
read
as
follows:
16
1.
A
stock
insurance
company
organized
under
or
by
the
17
laws
of
any
other
state
or
foreign
government
for
the
purpose
18
specified
in
this
chapter
,
shall
not,
directly
or
indirectly,
19
take
risks
or
transact
business
of
insurance
in
this
state
20
unless
the
company
has
two
and
one-half
million
dollars
of
21
actual
paid-up
capital,
and
a
surplus
in
cash
or
invested
in
22
securities
authorized
by
law
of
not
less
than
two
and
one-half
23
million
dollars,
possesses
the
actual
amount
of
capital
and
24
surplus
required
of
any
company
organized
pursuant
to
this
25
chapter,
or
if
the
company
is
a
mutual
insurance
company,
the
26
actual
amount
of
surplus
required
of
any
mutual
insurance
27
company
organized
pursuant
to
this
chapter,
exclusive
of
assets
28
deposited
in
a
state,
territory,
district,
or
country
for
the
29
special
benefit
or
security
of
those
insured
in
that
state,
30
territory,
district,
or
country.
31
Sec.
19.
Section
515.136,
Code
2011,
is
amended
to
read
as
32
follows:
33
515.136
Value
of
building
——
liability.
34
The
insurance
company
or
association
issuing
such
policy
may
35
-11-
LSB
5183HV
(3)
84
av/nh
11/
22
H.F.
2339
show
the
actual
value
of
said
property
at
date
of
policy,
and
1
any
depreciation
in
the
value
thereof
before
the
loss
occurred;
2
but
the
said
An
insurance
company
or
association
shall
be
3
liable
for
the
actual
value
of
the
property
insured
at
the
date
4
of
the
loss,
unless
such
value
exceeds
the
amount
stated
in
the
5
policy.
6
Sec.
20.
Section
515A.7,
subsection
1,
paragraph
b,
7
subparagraph
(5),
Code
2011,
is
amended
to
read
as
follows:
8
(5)
An
insurer
may
adopt
a
scheduled
or
schedule
rating
plan
9
providing
for
credits
or
debits
in
an
amount
not
exceeding
the
10
maximum
modification
allowed
as
set
forth
by
the
commissioner
11
by
rule.
This
amount
shall
be
in
addition
to
the
permitted
12
deviations
set
forth
in
subparagraphs
(1)
through
(4).
13
Sec.
21.
Section
518.14,
subsection
4,
paragraph
f,
14
unnumbered
paragraph
1,
Code
2011,
is
amended
to
read
as
15
follows:
16
Common
stocks,
common
stock
equivalents,
mutual
fund
17
shares,
securities
convertible
into
common
stocks
or
common
18
stock
equivalents,
or
preferred
stocks
issued
or
guaranteed
19
by
a
corporation
incorporated
under
the
laws
of
the
United
20
States
or
a
state,
or
the
laws
of
Canada
or
a
province
of
21
Canada
,
or
limited
partnerships
publicly
traded
on
a
nationally
22
established
stock
exchange
in
the
United
States
.
Aggregate
23
investments
in
nondividend
paying
stocks
shall
not
exceed
five
24
percent
of
surplus.
25
Sec.
22.
Section
518A.12,
subsection
4,
paragraph
f,
26
unnumbered
paragraph
1,
Code
2011,
is
amended
to
read
as
27
follows:
28
Common
stocks,
common
stock
equivalents,
mutual
fund
29
shares,
securities
convertible
into
common
stocks
or
common
30
stock
equivalents,
or
preferred
stocks
issued
or
guaranteed
31
by
a
corporation
incorporated
under
the
laws
of
the
United
32
States
or
a
state,
or
the
laws
of
Canada
or
a
province
of
33
Canada
,
or
limited
partnerships
publicly
traded
on
a
nationally
34
established
stock
exchange
in
the
United
States
.
Aggregate
35
-12-
LSB
5183HV
(3)
84
av/nh
12/
22
H.F.
2339
investments
in
nondividend
paying
stocks
shall
not
exceed
five
1
percent
of
surplus.
2
Sec.
23.
Section
521E.1,
subsection
4,
unnumbered
paragraph
3
1,
Code
2011,
is
amended
to
read
as
follows:
4
“Domestic
insurer”
means
an
insurance
company
domiciled
in
5
this
state
and
licensed
to
transact
the
business
of
insurance
6
under
chapter
508
,
512B,
515
,
or
520
,
except
that
it
shall
not
7
include
any
of
the
following:
8
Sec.
24.
Section
521E.1,
subsection
4,
paragraph
b,
Code
9
2011,
is
amended
by
striking
the
paragraph.
10
Sec.
25.
Section
521E.1,
subsections
6
and
7,
Code
2011,
are
11
amended
to
read
as
follows:
12
6.
“Foreign
insurer”
means
an
insurance
company
not
13
domiciled
in
this
state
which
is
licensed
to
transact
the
14
business
of
insurance
in
this
state
under
chapter
508
,
512B,
15
515
,
or
520
.
16
7.
“Life
and
health
insurer”
means
an
insurance
company
17
licensed
under
chapter
508
,
a
fraternal
benefit
society
18
organized
under
chapter
512B,
or
a
licensed
property
and
19
casualty
insurer
writing
only
accident
and
health
insurance
20
under
chapter
515
.
21
Sec.
26.
Section
521E.3,
subsection
1,
paragraph
a,
22
subparagraph
(2),
Code
Supplement
2011,
is
amended
to
read
as
23
follows:
24
(2)
For
a
life
and
health
insurer,
the
insurer’s
25
total
adjusted
capital
is
greater
than
or
equal
to
its
26
company-action-level
risk-based
capital
but
less
than
the
27
product
of
its
authorized-control-level
risk-based
capital
and
28
two
and
one-half
three
,
and
has
a
negative
trend.
29
Sec.
27.
Section
522C.6,
Code
2011,
is
amended
by
adding
the
30
following
new
subsection:
31
NEW
SUBSECTION
.
3.
a.
A
licensed
public
adjuster
who,
32
after
hearing,
is
found
to
have
violated
this
chapter
or
any
33
rule
adopted
or
order
issued
pursuant
to
this
chapter,
may
34
be
ordered
to
cease
and
desist
from
engaging
in
the
conduct
35
-13-
LSB
5183HV
(3)
84
av/nh
13/
22
H.F.
2339
resulting
in
the
violation
and
may
be
assessed
a
civil
penalty
1
as
provided
in
section
505.7A.
2
b.
A
person
who,
after
hearing,
is
found
to
have
violated
3
this
chapter
by
acting
as
a
public
adjuster
without
proper
4
licensure
may
be
ordered
to
cease
and
desist
from
engaging
in
5
the
conduct
resulting
in
the
violation
and
may
be
assessed
a
6
civil
penalty
according
to
the
provisions
of
chapter
507A.
7
c.
If
a
person
has
engaged,
is
engaging,
or
is
about
to
8
engage
in
any
act
or
practice
constituting
a
violation
of
9
this
chapter
or
any
rule
adopted
or
order
issued
pursuant
to
10
this
chapter,
the
commissioner
may
issue
a
summary
order
that
11
includes
a
brief
statement
of
findings
of
fact,
conclusions
of
12
law,
and
policy
reasons
for
the
order,
and
that
directs
the
13
person
to
cease
and
desist
from
engaging
in
the
act
or
practice
14
constituting
the
violation
and
that
may
assess
a
civil
penalty
15
or
take
other
affirmative
action
as
in
the
judgment
of
the
16
commissioner
is
necessary
to
assure
that
the
person
complies
17
with
the
requirements
of
this
chapter
as
provided
in
chapter
18
507A.
19
d.
If
a
person
does
not
comply
with
an
order
issued
pursuant
20
to
this
subsection,
the
commissioner
may
petition
a
court
of
21
competent
jurisdiction
to
enforce
the
order.
The
court
shall
22
not
require
the
commissioner
to
post
a
bond
in
an
action
or
23
proceeding
under
this
subsection.
If
the
court
finds,
after
24
notice
and
opportunity
for
hearing,
that
the
person
is
not
in
25
compliance
with
an
order,
the
court
may
adjudge
the
person
to
26
be
in
civil
contempt
of
the
order.
The
court
may
impose
a
civil
27
penalty
against
the
person
for
contempt
in
an
amount
not
less
28
than
three
thousand
dollars
but
not
greater
than
ten
thousand
29
dollars
for
each
violation
and
may
grant
any
other
relief
that
30
the
court
determines
is
just
and
proper
in
the
circumstances.
31
Sec.
28.
Section
598.20A,
Code
2011,
is
amended
to
read
as
32
follows:
33
598.20A
Beneficiary
revocation
——
life
insurance.
34
1.
Except
as
preempted
by
federal
law,
if
a
decree
of
35
-14-
LSB
5183HV
(3)
84
av/nh
14/
22
H.F.
2339
dissolution,
annulment,
or
separate
maintenance
is
issued
after
1
an
insured
the
policy
owner
of
an
insurance
contract
insuring
2
the
policy
owner’s
own
life
has
designated
the
insured’s
policy
3
owner’s
spouse
or
one
or
more
relatives
of
the
insured’s
policy
4
owner’s
spouse
as
a
beneficiary
under
a
life
insurance
policy
5
in
effect
on
the
date
of
the
decree,
a
provision
in
the
life
6
insurance
policy
making
such
a
designation
is
voided
by
the
7
issuance
of
the
decree
unless
any
of
the
following
apply:
8
a.
The
decree
designates
the
insured’s
policy
owner’s
former
9
spouse
or
one
or
more
relatives
of
the
insured’s
policy
owner’s
10
spouse
as
beneficiary.
11
b.
After
issuance
of
the
decree,
the
insured
policy
owner
12
executes
a
designation
of
beneficiary
form
provided
by
the
13
insurance
company
naming
the
insured’s
policy
owner’s
former
14
spouse
or
one
or
more
relatives
of
the
insured’s
policy
owner’s
15
former
spouse
as
beneficiary.
16
c.
The
insured
policy
owner
and
the
insured’s
policy
owner’s
17
former
spouse
remarry.
18
2.
If
a
beneficiary
designation
is
not
effective
pursuant
to
19
subsection
1
,
the
benefits
or
proceeds
of
the
life
insurance
20
policy
are
payable
to
an
alternate
beneficiary,
or
if
there
is
21
no
alternate
beneficiary,
to
the
estate
of
the
insured
policy
22
owner
.
23
3.
An
insurer
who
pays
benefits
or
proceeds
of
a
life
24
insurance
policy
to
a
beneficiary
under
a
designation
that
is
25
void
pursuant
to
subsection
1
is
not
liable
for
payment
to
an
26
alternative
beneficiary
as
provided
under
subsection
2
unless
27
both
of
the
following
apply:
28
a.
At
least
ten
days
prior
to
payment
of
the
benefits
29
or
proceeds
of
the
life
insurance
policy
to
the
designated
30
beneficiary,
the
insurer
receives
written
notice
at
the
home
31
office
of
the
insurer
that
the
designation
of
the
beneficiary
32
is
not
effective
pursuant
to
subsection
1
.
33
b.
The
insurer
has
failed
to
interplead
the
benefits
or
34
proceeds
of
the
life
insurance
policy
in
a
court
of
competent
35
-15-
LSB
5183HV
(3)
84
av/nh
15/
22
H.F.
2339
jurisdiction
in
accordance
with
the
rules
of
civil
procedure.
1
4.
This
section
does
not
limit
the
right
of
a
beneficiary
2
to
seek
recovery
from
any
person
or
entity
that
erroneously
3
receives
or
collects
the
benefits
or
proceeds
from
a
life
4
insurance
policy.
5
5.
This
section
does
not
affect
the
right
of
an
insured’s
6
former
a
policy
owner’s
spouse
to
assert
an
ownership
interest
7
in
a
life
insurance
policy
insuring
the
life
of
the
policy
8
owner
that
is
not
disclosed
to
the
insured’s
policy
owner’s
9
spouse
prior
to
the
decree
of
dissolution,
annulment,
or
10
separate
maintenance
and
that
is
not
addressed
by
the
decree.
11
6.
For
purposes
of
this
section
,
“relative
of
the
insured’s
12
policy
owner’s
spouse”
means
a
person
who
is
related
to
the
13
insured’s
policy
owner’s
former
spouse
by
blood,
adoption,
14
or
affinity,
and
who,
subsequent
to
a
decree
of
dissolution,
15
annulment,
or
separate
maintenance,
ceases
to
be
related
to
the
16
insured
policy
owner
by
blood,
adoption,
or
affinity.
17
Sec.
29.
EFFECTIVE
UPON
ENACTMENT.
The
following
18
provision
or
provisions
of
this
Act,
being
deemed
of
immediate
19
importance,
take
effect
upon
enactment:
20
1.
The
section
of
this
Act
enacting
section
507C.17A.
21
EXPLANATION
22
This
bill
relates
to
various
matters
under
the
purview
of
the
23
insurance
division
of
the
department
of
commerce.
24
DEPARTMENT
OF
PUBLIC
HEALTH.
Code
section
135.22A(2)(g)
25
is
stricken
to
remove
the
commissioner
of
insurance
from
the
26
membership
of
the
advisory
council
on
brain
injuries.
27
UNIFORM
SECURITIES
ACT
(BLUE
SKY
LAW).
Code
section
28
502.412(3)
is
amended
to
increase
the
amount
of
the
29
disciplinary
penalty
for
registrants
that
the
administrator
30
(commissioner
of
insurance
or
the
commissioner’s
deputy)
can
31
impose
for
a
violation
of
the
Code
chapter
from
a
maximum
of
32
$5,000
to
$10,000
for
a
single
violation,
and
from
$500,000
to
33
$1
million
for
more
than
one
violation,
or
in
such
amount
as
34
agreed
to
by
the
parties.
35
-16-
LSB
5183HV
(3)
84
av/nh
16/
22
H.F.
2339
Code
section
502.604(4)
is
amended
to
increase
the
amount
1
of
a
civil
penalty
the
administrator
can
impose
against
a
2
person
for
engaging
in
an
act,
practice,
or
course
of
business
3
in
violation
of
the
Code
chapter
from
a
maximum
of
$5,000
to
4
$10,000
for
a
single
violation,
and
from
$500,000
to
$1
million
5
for
more
than
one
violation,
or
in
an
amount
agreed
to
by
the
6
parties.
7
New
Code
section
502.604(5A)
provides
that
a
person
8
who
fails
to
obey
a
valid
cease
and
desist
order
issued
by
9
the
administrator
may
be
subject
to
a
civil
penalty
in
an
10
amount
of
not
less
than
$1,000
and
not
more
than
$10,000
for
11
violating
the
order.
Each
day
the
failure
to
obey
continues
12
constitutes
a
separate
violation.
The
penalties
provided
in
13
this
subsection
are
in
addition
to,
and
not
exclusive
of
other
14
remedies
that
may
be
available.
15
INSURANCE
DIVISION.
Code
section
505.8(10)
is
amended
to
16
allow
the
commissioner
to
assess
the
costs
of
the
examination
17
of
a
regulated
entity
necessary
to
accomplish
compliance
with
18
the
insurance
laws
of
this
state.
19
DOMESTIC
INSURANCE
COMPANIES.
New
Code
section
506.14
20
provides
that
any
plan
for
the
voluntary
dissolution
of
a
21
domestic
mutual
insurance
company
licensed
in
this
state
shall
22
be
presented
for
approval
by
the
commissioner
not
less
than
90
23
days
prior
to
notice
of
the
plan
to
the
policyholders.
The
24
commissioner
must
approve
the
plan
if
it
complies
with
all
25
applicable
laws
and
is
fair
and
equitable
to
the
company
and
to
26
its
policyholders.
27
EXAMINATION
OF
INSURANCE
COMPANIES.
Code
section
28
507.10(4)(a)
is
amended
to
allow
the
board
of
directors
of
29
an
insurance
company
to
signal
that
each
member
has
reviewed
30
an
examination
report
with
a
notation
in
the
board’s
meeting
31
minutes
instead
of
by
filing
affidavits
indicating
that
each
32
member
has
received
a
copy
of
the
report.
33
Code
section
507.14
is
amended
to
allow
the
commissioner
34
to
release
confidential
documents
and
other
materials
to
the
35
-17-
LSB
5183HV
(3)
84
av/nh
17/
22
H.F.
2339
international
association
of
insurance
supervisors
and
the
bank
1
for
international
settlements
provided
that
those
entities
2
give
written
certification
that
the
records
will
be
kept
3
confidential.
4
INSURANCE
TRADE
PRACTICES.
New
Code
section
507B.4(20)
5
makes
it
an
unfair
or
deceptive
act
or
practice
in
the
business
6
of
insurance
for
an
issuer
of
a
Medicare
supplement
policy
7
to
fail
to
terminate
that
coverage
and
refund
any
unearned
8
premiums,
upon
receiving
written
notice
from
the
policyholder
9
that
the
policyholder
desires
to
terminate
the
coverage
and
has
10
obtained
Medicare
Part
C
coverage.
An
issuer
is
not
required
11
to
refund
premiums
for
any
period
of
time
in
excess
of
five
12
years
prior
to
the
date
of
receiving
such
written
notice.
13
INSURERS
SUPERVISION,
REHABILITATION,
AND
LIQUIDATION.
14
New
Code
section
507C.17A
contains
provisions
that
apply
in
15
accordance
with
the
federal
Dodd-Frank
Wall
Street
Reform
and
16
Consumer
Protection
Act
to
a
domestic
insurer
that
is
a
covered
17
financial
company,
as
that
term
is
defined
in
federal
law.
18
The
bill
provides
that
the
commissioner
of
insurance
may
19
file
a
petition
in
the
state
district
court
for
an
order
of
20
rehabilitation
or
liquidation
of
such
a
domestic
insurer
upon
21
receiving
notice
from
the
secretary
of
the
treasury
of
the
22
United
States
that
the
insurer
acquiesces
or
consents
to
the
23
appointment
of
a
receiver;
upon
an
order
of
the
United
States
24
district
court
for
the
District
of
Columbia
as
to
that
insurer;
25
or
when
a
petition
of
the
secretary
of
the
treasury
of
the
26
United
States
concerning
the
insurer
is
granted
by
operation
27
of
law.
28
Notwithstanding
any
other
provision
of
law
to
the
contrary,
29
the
state
district
court,
after
notice
to
the
insurer,
may
30
grant
an
order
on
such
a
petition
within
24
hours
after
the
31
filing
of
the
petition.
If
the
district
court
does
not
make
a
32
determination
on
the
petition
within
24
hours
of
its
filing,
33
the
order
is
deemed
granted
by
operation
of
law
upon
expiration
34
of
the
24-hour
period.
35
-18-
LSB
5183HV
(3)
84
av/nh
18/
22
H.F.
2339
At
the
time
an
order
is
deemed
granted,
the
provisions
of
1
Code
chapter
507C
are
deemed
to
be
in
effect,
the
commissioner
2
is
deemed
to
be
affirmed
as
the
receiver
and
to
have
all
of
3
the
applicable
powers
provided
by
Code
chapter
507C,
and
the
4
state
district
court
must
expeditiously
enter
an
order
of
5
rehabilitation
or
liquidation.
An
order
of
rehabilitation
or
6
liquidation
made
pursuant
to
the
provisions
of
the
bill
is
not
7
subject
to
a
stay
or
injunction
pending
appeal.
8
This
provision
is
effective
upon
enactment.
9
INSURANCE
FRAUD.
Code
section
507E.5(2)
is
amended
to
allow
10
the
commissioner
to
share
documents
with
local
as
well
as
11
state,
federal,
and
international
law
enforcement
authorities
12
if
the
recipient
agrees
to
maintain
the
confidentiality
of
13
confidential
and
privileged
documents
that
are
shared.
14
LIFE
INSURANCE
COMPANIES
AND
ASSOCIATIONS.
Code
section
15
511.8(14)
is
amended
to
provide
that
a
life
insurance
company
16
can
include
in
its
legal
reserve
as
real
property
a
controlling
17
membership,
partnership,
shareholder,
or
trust
interest
in
any
18
entity
created
solely
for
the
purpose
of
owning
and
operating
a
19
leasehold
of
real
estate,
an
undivided
interest
in
a
leasehold
20
of
real
estate,
or
an
undivided
interest
in
the
fee
title
of
21
real
estate.
The
entity
must
be
expressly
limited
to
that
22
purpose
by
its
organizational
documents.
23
Code
section
511.8(19)
is
amended
to
provide
that
a
life
24
insurance
company
can
include
in
its
legal
reserve
certain
25
foreign
investments
not
in
excess
of
25,
instead
of
20,
26
percent
of
its
legal
reserve.
Investments
in
obligations
of
a
27
foreign
government
rated
AAA
by
Standard
and
Poor’s
division
28
of
McGraw-Hill
companies,
inc.,
or
Aaa
by
Moody’s
investors
29
services,
inc.,
are
eligible
for
inclusion
in
the
legal
reserve
30
up
to
5,
instead
of
2,
percent
of
the
legal
reserve.
31
Code
section
511.8(23)
is
amended
to
provide
that
if
32
securities
held
in
a
life
insurance
company’s
legal
reserve
are
33
loaned,
the
collateral
received
for
the
loaned
securities
is
34
not
eligible
for
inclusion
in
the
legal
reserve.
35
-19-
LSB
5183HV
(3)
84
av/nh
19/
22
H.F.
2339
New
Code
section
511.40(5)
provides
that
the
gross
amount
of
1
premiums
received
by
a
life
insurance
company
or
association
2
for
an
employer-owned
life
insurance
contract
shall
be
3
allocated
to
this
state
for
purposes
of
calculating
the
state
4
premium
tax
if
the
contract
is
issued
or
delivered
in
this
5
state
or
the
company
or
association
is
domiciled
in
this
state.
6
For
purposes
of
the
subsection,
“employer-owned
life
insurance
7
contract”
means
a
policy
which
provides
coverage
on
a
life
for
8
which
the
employer
has
an
insurable
interest
under
this
Code
9
section
or
the
laws
of
another
state
and
the
policy
is
owned
by
10
either
the
employer
or
a
trust
established
by
the
employer
for
11
the
benefit
of
the
employer
or
the
employer’s
active
or
retired
12
employees.
13
NONPROFIT
HEALTH
SERVICE
CORPORATIONS.
Code
section
514.4
14
is
amended
to
provide
that
a
person
who
is
affiliated
with
a
15
hospital
or
other
entity
that
does
not
have
a
provider
contract
16
with
a
dental
service
corporation
can
serve
as
a
subscriber
17
director
of
that
corporation.
18
INSURANCE
OTHER
THAN
LIFE.
Code
section
515.26
is
amended
to
19
eliminate
a
requirement
that
all
of
the
directors
of
a
mutual
20
company
shall
be
policyholders.
21
Code
section
515.69(1)
is
amended
to
require
that
a
foreign
22
stock
insurance
company
must
possess
the
actual
amount
of
23
capital
and
surplus
required
of
any
company
organized
pursuant
24
to
Code
chapter
515,
or
if
the
insurer
is
a
mutual
company,
25
the
actual
amount
of
surplus
required
of
any
mutual
company
26
organized
pursuant
to
Code
chapter
515.
Currently,
a
foreign
27
stock
insurance
company
is
required
to
have
$2.5
million
of
28
actual
paid-up
capital,
and
a
surplus
in
cash
or
invested
in
29
securities
authorized
by
law
of
not
less
than
$2.5
million.
30
Code
section
515.136
is
amended
to
provide
that
an
insurance
31
company
or
association
is
liable
for
the
actual
value
of
the
32
property
insured
at
a
date
of
a
loss,
unless
that
value
exceeds
33
the
amount
stated
in
the
policy.
Currently,
the
insurer
34
issuing
such
a
policy
may
show
the
actual
value
of
the
property
35
-20-
LSB
5183HV
(3)
84
av/nh
20/
22
H.F.
2339
at
the
date
of
issuance
of
the
policy
and
any
depreciation
in
1
the
value
of
the
property
after
a
loss
occurred
but
is
still
2
liable
for
the
actual
value
of
the
property
insured
on
the
date
3
of
loss
or
the
policy
amount,
whichever
is
less.
4
WORKERS’
COMPENSATION
LIABILITY
INSURANCE.
Code
section
5
515A.7(1)(b)(5)
is
amended
to
remove
a
reference
to
a
6
“scheduled
rating
plan”,
a
term
that
is
not
defined
in
the
Code
7
chapter.
8
COUNTY
MUTUAL
INSURANCE
ASSOCIATIONS.
Code
section
9
518.14(4)(f)
is
amended
to
allow
county
mutual
insurance
10
associations
to
invest
in
stocks
that
are
issued
or
guaranteed
11
by
limited
partnerships
publicly
traded
on
a
nationally
12
established
stock
exchange
in
the
United
States.
13
STATE
MUTUAL
INSURANCE
ASSOCIATIONS.
Code
section
14
518A.12(4)(f)
is
amended
to
allow
state
mutual
insurance
15
associations
to
invest
in
stocks
that
are
issued
or
guaranteed
16
by
limited
partnerships
publicly
traded
on
a
nationally
17
established
stock
exchange
in
the
United
States.
18
RISK-BASED
CAPITAL
REQUIREMENTS
FOR
INSURERS.
Code
section
19
521E.1(4)
is
amended
to
provide
that
for
purposes
of
the
Code
20
chapter,
a
fraternal
benefit
society
organized
under
Code
21
chapter
512B
is
a
domestic
insurer.
Code
section
521E.1(4)(b),
22
which
excepted
a
fraternal
benefit
society
from
inclusion
as
23
a
domestic
insurer,
is
stricken.
Corresponding
changes
to
24
include
such
a
society
are
made
in
Code
section
521E.1(6)
and
25
(7).
26
Code
section
521E.3(1)(a)(2)
is
amended
to
provide
that
for
27
a
life
and
health
insurer,
a
company-action-level
event
means
28
the
insurer’s
total
adjusted
capital
is
greater
than
or
equal
29
to
its
company-action-level
risk-based
capital
but
less
than
30
the
product
of
its
authorized-control-level
risk-based
capital
31
and
three,
instead
of
two
and
one-half,
and
has
a
negative
32
trend.
33
LICENSING
OF
PUBLIC
ADJUSTERS.
Code
section
522C.6
is
34
amended
to
add
provisions
allowing
the
commissioner
of
35
-21-
LSB
5183HV
(3)
84
av/nh
21/
22
H.F.
2339
insurance
to
hold
hearings,
issue
cease
and
desist
orders,
1
assess
civil
penalties,
and
petition
for
enforcement
of
those
2
orders
by
the
district
court
against
persons
who
violate
3
the
provisions
of
Code
chapter
522C.
The
district
court
is
4
authorized
to
adjudge
a
violator
in
civil
contempt
of
an
order
5
and
to
impose
a
civil
penalty
for
contempt
of
not
less
than
6
$3,000
but
not
more
than
$10,000
for
each
violation
and
grant
7
any
other
relief
the
court
determines
is
just
and
proper
under
8
the
circumstances.
9
DISSOLUTION
OF
MARRIAGE
AND
DOMESTIC
RELATIONS.
Code
10
section
598.20A
is
amended
to
provide
that
it
is
the
policy
11
owner
of
an
insurance
contract
insuring
the
policy
owner’s
own
12
life,
not
the
insured,
who
designates
the
beneficiary
of
the
13
policy
and
is
authorized
to
make
changes
in
that
designation
14
after
a
decree
of
dissolution
of
marriage,
annulment,
or
15
separate
maintenance.
16
-22-
LSB
5183HV
(3)
84
av/nh
22/
22