Senate
Study
Bill
1077
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
McCOY)
A
BILL
FOR
An
Act
requiring
notice
of
a
change
of
beneficiary
under
an
1
individual
policy
of
accident
and
sickness
insurance
and
2
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1385XC
(2)
85
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S.F.
_____
Section
1.
Section
514A.3,
subsection
1,
paragraph
l,
Code
1
2013,
is
amended
to
read
as
follows:
2
l.
A
provision
as
follows:
3
Change
of
beneficiary:
Unless
the
insured
makes
an
4
irrevocable
designation
of
beneficiary,
the
right
to
change
5
of
beneficiary
is
reserved
to
the
insured
and
the
consent
of
6
the
beneficiary
or
beneficiaries
shall
not
be
requisite
to
7
surrender
or
assignment
of
this
policy
or
to
any
change
of
8
beneficiary
or
beneficiaries,
or
to
any
other
changes
in
this
9
policy.
However,
if
a
change
of
beneficiary
is
made,
including
10
but
not
limited
to
termination
of
coverage
of
a
dependent
11
or
a
former
dependent,
the
insurer
shall
provide
written
12
notification
of
the
change
to
all
beneficiaries
of
the
policy
13
at
least
sixty
days
prior
to
the
effective
date
of
the
change
14
of
beneficiary.
The
notice
shall
specifically
include
an
15
explanation
of
the
rights
of
a
beneficiary
under
such
coverage
16
to
elect
a
continuation
of
the
coverage,
if
the
individual
so
17
elects,
immediately
upon
termination
of
the
coverage
under
18
which
the
individual
was
covered
as
a
beneficiary.
19
(The
first
clause
of
this
provision,
relating
to
the
20
irrevocable
designation
of
beneficiary,
may
be
omitted
at
the
21
insurer’s
option.)
22
Sec.
2.
APPLICABILITY.
This
Act
applies
to
individual
23
policies
of
accident
and
sickness
insurance
delivered,
issued
24
for
delivery,
continued,
or
renewed
in
this
state
on
or
after
25
January
1,
2014.
26
EXPLANATION
27
This
bill
requires
that
an
individual
policy
of
accident
28
and
sickness
insurance
must
include
a
provision
requiring
that
29
if
a
change
of
beneficiary
is
made,
the
insurer
shall
provide
30
written
notification
of
the
change
to
all
beneficiaries
of
the
31
policy,
including
but
not
limited
to
termination
of
coverage
32
of
a
dependent
or
former
dependent,
at
least
60
days
prior
to
33
the
effective
date
of
the
change.
The
notice
must
specifically
34
include
an
explanation
of
the
rights
of
a
beneficiary
under
35
-1-
LSB
1385XC
(2)
85
av/nh
1/
2
S.F.
_____
such
coverage
to
elect
a
continuation
of
the
coverage,
if
1
the
individual
so
elects,
immediately
upon
termination
of
2
the
coverage.
The
bill
applies
to
individual
policies
of
3
accident
and
sickness
insurance
delivered,
issued
for
delivery,
4
continued,
or
renewed
in
this
state
on
or
after
January
1,
5
2014.
6
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LSB
1385XC
(2)
85
av/nh
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2