S.F. 2291 Section 1. Section 502.305, subsection 2, Code 2016, is 1 amended to read as follows: 2 2. Filing. Except as provided in subsection 10 section 3 502.302, subsection 3, and section 502.304A, subsection 3 , 4 paragraph “g” , a person who files a registration statement 5 or a notice filing shall pay a filing fee of one-tenth of 6 one percent of the proposed aggregate sales price of the 7 securities to be offered to persons in this state pursuant to 8 the registration statement or notice filing. However, except 9 as provided in subsection 10 , section 502.302, subsection 1 , 10 paragraph “a” , and section 502.304A, subsection 3 , paragraph 11 “g” , the annual filing fee shall not be less than fifty dollars 12 or more than one thousand dollars as prescribed by rules 13 adopted pursuant to chapter 17A . The administrator shall 14 retain the filing fee even if the notice filing is withdrawn or 15 the registration is withdrawn, denied, suspended, revoked, or 16 abandoned. The fees collected under this subsection shall be 17 deposited as provided in section 505.7 . The administrator may 18 adopt rules requiring a filing to be made electronically. The 19 rules may provide for such electronic filing either directly 20 with the administrator or with a designee of the administrator. 21 The rules may require that the filer pay any reasonable costs 22 charged by the designee of the administrator for processing the 23 filings and that the filer submit any fees paid through the 24 designee. 25 Sec. 2. Section 502.305, subsection 10, Code 2016, is 26 amended by striking the subsection. 27 Sec. 3. Section 502.306, subsection 1, paragraph a, Code 28 2016, is amended to read as follows: 29 a. The registration statement as of its effective date 30 or before the effective date in the case of an order denying 31 effectiveness, an amendment under section 502.305, subsection 32 10 , as of its effective date, or a report under section 33 502.305, subsection 9 , is incomplete in a material respect or 34 contains a statement that, in the light of the circumstances 35 -1- LSB 5203SV (2) 86 av/nh 1/ 14

S.F. 2291 under which it was made, was false or misleading with respect 1 to a material fact. 2 Sec. 4. NEW SECTION . 507E.3A Fraudulent sales practices —— 3 penalty. 4 1. A person commits a class “D” felony if the person, with 5 the intent to defraud another person in connection with any 6 sale, solicitation, or negotiation of insurance in this state, 7 willfully does any of the following: 8 a. Employs any deception, device, scheme, or artifice to 9 defraud. 10 b. Misrepresents, conceals, or suppresses any material fact. 11 c. Engages in any act, practice, or course of business which 12 operates as a fraud or deceit upon any person. 13 2. Notwithstanding subsection 1, a person commits a class 14 “C” felony if the person violates subsection 1, and such 15 violation results in a loss of more than ten thousand dollars. 16 Sec. 5. NEW SECTION . 514K.2 Health carrier disclosures —— 17 public internet sites. 18 1. A carrier that provides small group health coverage 19 pursuant to chapter 513B or individual health coverage pursuant 20 to chapter 513C and that offers for sale a policy, contract, 21 or plan that covers the essential health benefits required 22 pursuant to section 1302 of the federal Patient Protection and 23 Affordable Care Act, Pub. L. No. 111-148, and its implementing 24 regulations, shall provide to each of its enrollees at the 25 time of enrollment, and shall make available to prospective 26 enrollees and enrollees, insurance producers licensed under 27 chapter 522B, and the general public, on the carrier’s 28 internet site, all of the following information in a clear and 29 understandable form for use in comparing policies, contracts, 30 and plans, and coverage and premiums: 31 a. Any exclusions from coverage and any restrictions on 32 the use or quantity of covered items and services in each 33 category of benefits, including prescription drugs and drugs 34 administered by a physician or clinic. 35 -2- LSB 5203SV (2) 86 av/nh 2/ 14

S.F. 2291 b. Any items or services, including prescription drugs, that 1 have a coinsurance requirement where the cost-sharing required 2 depends on the cost of the item or service. 3 c. The specific prescription drugs available on the 4 carrier’s formulary, the specific prescription drugs covered 5 when furnished by a physician or clinic, and any clinical 6 prerequisites or prior authorization requirements for coverage 7 of the drugs. 8 d. The specific types of specialists available in the 9 carrier’s network and the specific physicians included in the 10 carrier’s network. 11 e. The process for an enrollee to appeal a carrier’s denial 12 of coverage of an item or service prescribed or ordered by the 13 enrollee’s treating physician. 14 f. How medications will specifically be included in or 15 excluded from the deductible, including a description of all 16 out-of-pocket costs that may not apply to the deductible for a 17 prescription drug. 18 2. The commissioner shall adopt rules pursuant to chapter 19 17A to administer this section. 20 3. The commissioner may impose any of the sanctions provided 21 under chapter 507B for a violation of this section. 22 Sec. 6. Section 521A.1, Code 2016, is amended by adding the 23 following new subsections: 24 NEW SUBSECTION . 5A. “Group-wide supervisor” means a 25 regulatory official who is authorized, and who is determined 26 or acknowledged by the commissioner pursuant to section 27 521A.6B to have sufficient significant contacts with an 28 internationally active insurance group, to engage in conducting 29 and coordinating group-wide supervision of the internationally 30 active insurance group. 31 NEW SUBSECTION . 7A. “Internationally active insurance group” 32 means an insurance holding company system that includes an 33 insurer registered under section 521A.4 and that meets all of 34 the following criteria: 35 -3- LSB 5203SV (2) 86 av/nh 3/ 14

S.F. 2291 a. The insurance holding company system has premiums written 1 in at least three countries. 2 b. The percentage of gross premiums written outside the 3 United States is at least ten percent of the insurance holding 4 company system’s total gross written premiums. 5 c. Based on a three-year rolling average, the total assets 6 of the insurance holding company system are at least fifty 7 billion dollars or the total gross written premiums of the 8 insurance holding company system are at least ten billion 9 dollars. 10 Sec. 7. Section 521A.6A, subsection 1, unnumbered paragraph 11 1, Code 2016, is amended to read as follows: 12 With respect to any insurer registered under section 13 521A.4 and in accordance with subsection 3 of this section , 14 the commissioner shall have the power to participate in a 15 supervisory college for any domestic insurer that is part 16 of an insurance holding company system with international 17 operations in order to determine compliance by the insurer with 18 this chapter . The powers of the commissioner with respect 19 to supervisory colleges include but are not limited to the 20 following: 21 Sec. 8. Section 521A.6A, subsections 2 and 3, Code 2016, are 22 amended by striking the subsections. 23 Sec. 9. NEW SECTION . 521A.6B Group-wide supervision of 24 internationally active insurance groups. 25 1. a. The commissioner may act as the group-wide supervisor 26 of an internationally active insurance group in accordance with 27 the provisions of this section. However, the commissioner may 28 authorize another regulatory official to act as the group-wide 29 supervisor where the internationally active insurance group 30 meets any of the following conditions: 31 (1) Does not have substantial insurance operations in the 32 United States. 33 (2) Has substantial insurance operations in the United 34 States, but not in Iowa. 35 -4- LSB 5203SV (2) 86 av/nh 4/ 14

S.F. 2291 (3) Has substantial insurance operations in the United 1 States and in Iowa, but the commissioner has determined 2 pursuant to the factors set forth in subsections 2 and 6 that 3 another regulatory official is the appropriate group-wide 4 supervisor. 5 b. In response to a request from an insurance holding 6 company system that does not otherwise qualify as an 7 internationally active insurance group, the commissioner may 8 make a determination of or acknowledge a group-wide supervisor 9 for such an insurance holding company system pursuant to this 10 section. 11 2. a. In cooperation with other state, federal, and 12 international regulatory agencies, the commissioner shall 13 identify a single group-wide supervisor for an internationally 14 active insurance group. The commissioner may determine that 15 the commissioner is the appropriate group-wide supervisor 16 for an internationally active insurance group that conducts 17 substantial insurance operations concentrated in this state, 18 or the commissioner may acknowledge that a regulatory official 19 from another jurisdiction is the appropriate group-wide 20 supervisor for the internationally active insurance group. In 21 making a determination or acknowledgment under this paragraph 22 “a” , the commissioner shall consider the following factors: 23 (1) The place of domicile of the insurers within the 24 internationally active insurance group that hold the largest 25 share of the group’s written premiums, assets, or liabilities. 26 (2) The place of domicile of the top-tiered insurers in the 27 insurance holding company system of the internationally active 28 insurance group. 29 (3) The location of the executive offices or largest 30 operational offices of the internationally active insurance 31 group. 32 (4) Whether another regulatory official is acting as 33 or is seeking to act as the group-wide supervisor of the 34 internationally active insurance group under a regulatory 35 -5- LSB 5203SV (2) 86 av/nh 5/ 14

S.F. 2291 system that the commissioner determines to be either of the 1 following: 2 (a) Substantially similar to the system of regulation 3 provided under the laws of this state. 4 (b) Otherwise sufficient in terms of providing for 5 group-wide supervision, enterprise risk analysis, and 6 cooperation with other regulatory officials. 7 (5) Whether another regulatory official acting as 8 or seeking to act as the group-wide supervisor for the 9 internationally active insurance group provides the 10 commissioner with reasonably reciprocal recognition and 11 cooperation. 12 b. Notwithstanding paragraph “a” , even if the commissioner 13 is identified pursuant to this subsection as the group-wide 14 supervisor of an internationally active insurance group, 15 the commissioner may determine that it is appropriate to 16 acknowledge another regulatory official to serve as the 17 group-wide supervisor of the internationally active insurance 18 group. 19 c. The acknowledgment of a group-wide supervisor pursuant 20 to this subsection shall be made after consideration of the 21 factors listed in paragraph “a” , subparagraphs (1) through 22 (5), and shall be made in cooperation with and subject to the 23 acknowledgment of other regulatory officials involved with 24 supervision of members of the internationally active insurance 25 group, and in consultation with the internationally active 26 insurance group. 27 3. Notwithstanding any other provision of law, when another 28 regulatory official is acting as the group-wide supervisor of 29 an internationally active insurance group, the commissioner 30 shall acknowledge that regulatory official as the group-wide 31 supervisor of the internationally active insurance group. 32 However, the commissioner shall make a new determination or 33 acknowledgment as to the appropriate group-wide supervisor for 34 the internationally active insurance group in the event that a 35 -6- LSB 5203SV (2) 86 av/nh 6/ 14

S.F. 2291 material change in the internationally active insurance group 1 results in either of the following: 2 a. The internationally active insurance group’s insurers 3 domiciled in Iowa holding the largest share of the group’s 4 premiums, assets, or liabilities. 5 b. Iowa being the place of domicile of the top-tiered 6 insurers in the insurance holding company system of the 7 internationally active insurance group. 8 4. Pursuant to section 521A.6, the commissioner is 9 authorized to collect from any insurer registered pursuant to 10 section 521A.4 all information necessary to determine whether 11 it is appropriate for the commissioner to act as the group-wide 12 supervisor of an internationally active insurance group or 13 to acknowledge another regulatory official to act as the 14 group-wide supervisor of the internationally active insurance 15 group. Prior to issuing a determination or acknowledgment 16 pursuant to this section, the commissioner shall notify the 17 insurer registered pursuant to section 521A.4 and the ultimate 18 controlling person within the internationally active insurance 19 group of the pending determination or acknowledgment. The 20 insurer and the internationally active insurance group shall 21 have not less than thirty days to provide the commissioner with 22 additional information pertinent to the commissioner’s pending 23 determination or acknowledgment. The commissioner shall 24 publish the identity of the internationally active insurance 25 groups that the commissioner has determined are subject to 26 group-wide supervision by the commissioner. 27 5. If a determination is made that the commissioner is the 28 appropriate group-wide supervisor for an internationally active 29 insurance group, the commissioner is authorized to engage in 30 any of the following group-wide supervision activities: 31 a. Assessing the enterprise risks within the internationally 32 active insurance group to ensure all of the following: 33 (1) That the material financial condition and liquidity 34 risks to members of the internationally active insurance group 35 -7- LSB 5203SV (2) 86 av/nh 7/ 14

S.F. 2291 that are engaged in the business of insurance are identified 1 by management. 2 (2) That reasonable and effective mitigation measures are 3 in place. 4 b. Requesting, from any member of an internationally active 5 insurance group subject to the commissioner’s group-wide 6 supervision, information necessary and appropriate to assess 7 enterprise risk, including but not limited to information about 8 the members of the internationally active insurance group 9 regarding all of the following: 10 (1) Governance, risk assessment, and management. 11 (2) Capital adequacy. 12 (3) Material intercompany transactions. 13 c. Coordinating and, through the authority of the 14 regulatory officials of the jurisdictions where members of 15 the internationally active insurance group are domiciled, 16 compelling the development and implementation of reasonable 17 measures designed to ensure that the internationally active 18 insurance group is able to timely recognize and mitigate 19 enterprise risks to members of the internationally active 20 insurance group that are engaged in the business of insurance. 21 d. Communicating with other state, federal, and 22 international regulatory agencies for members within the 23 internationally active insurance group and sharing relevant 24 information, subject to the confidentiality provisions of 25 section 521A.7, through supervisory colleges as set forth in 26 section 521A.6A or otherwise. 27 e. Entering into agreements with or obtaining documentation 28 from any insurer registered under section 521A.4, any member 29 of an internationally active insurance group, and any other 30 state, federal, or international regulatory agency for members 31 of the internationally active insurance group, that provides 32 the basis for or otherwise clarifies the commissioner’s role as 33 group-wide supervisor of an internationally active insurance 34 group, including provisions for resolving disputes with other 35 -8- LSB 5203SV (2) 86 av/nh 8/ 14

S.F. 2291 regulatory officials. Such agreements or documentation shall 1 not serve as evidence in any proceeding that any insurer or 2 person within an insurance company holding company system not 3 domiciled or incorporated in this state is doing business in 4 this state or is otherwise subject to jurisdiction in this 5 state. 6 f. Other activities of group-wide supervision, consistent 7 with the authority and purposes set forth in this section, as 8 considered necessary by the commissioner. 9 6. If the commissioner acknowledges that another regulatory 10 official from a jurisdiction that is not accredited by the 11 national association of insurance commissioners is the 12 group-wide supervisor of an internationally active insurance 13 group, the commissioner may reasonably cooperate through a 14 supervisory college or otherwise, with group-wide supervision 15 undertaken by that regulatory official provided that all of the 16 following occur: 17 a. The commissioner’s cooperation is in compliance with the 18 laws of this state. 19 b. The regulatory official acknowledged as the group-wide 20 supervisor of the internationally active insurance group also 21 recognizes and cooperates with the commissioner’s activities 22 as a group-wide supervisor for other internationally active 23 insurance groups, where applicable. If such recognition and 24 cooperation is not reasonably reciprocal, the commissioner may 25 refuse recognition and cooperation to that regulatory official. 26 7. The commissioner is authorized to enter into agreements 27 with or obtain documentation from any insurer registered under 28 section 521A.4, any affiliate of the insurer, and any other 29 state, federal, or international regulatory agency for members 30 of the internationally active insurance group, that provides 31 the basis for or otherwise clarifies another regulatory 32 official’s role as group-wide supervisor of an internationally 33 active insurance group. 34 8. An insurer registered under section 521A.4 that is 35 -9- LSB 5203SV (2) 86 av/nh 9/ 14

S.F. 2291 subject to this section shall be liable for and shall pay the 1 reasonable expenses of the commissioner’s participation in 2 the administration of this section, including the engagement 3 of attorneys, actuaries, accountants, and other experts not 4 otherwise a part of the commissioner’s staff and all reasonable 5 travel expenses. Any persons so retained shall be under the 6 direction and control of the commissioner and shall act in a 7 purely advisory capacity. 8 9. The commissioner shall adopt rules pursuant to chapter 9 17A to administer this section. 10 Sec. 10. Section 521A.7, subsection 1, Code 2016, is amended 11 to read as follows: 12 1. All information, documents, and copies thereof obtained 13 by or disclosed to the commissioner or any other person in 14 the course of an examination or investigation made pursuant 15 to section 521A.6 or 521A.6A , and all information reported 16 or provided to the commissioner pursuant to sections 521A.4 17 and , 521A.5 , 521A.6A, and 521A.6B, shall be given confidential 18 treatment and , shall not be subject to subpoena , shall not be 19 subject to discovery or admissible in evidence in a private 20 civil action, and shall not be made public by the commissioner 21 or any other person, except to insurance departments of other 22 states, without the prior written consent of the insurer to 23 which it pertains unless the commissioner, after giving the 24 insurer and its affiliates who would be affected thereby, 25 notice and opportunity to be heard, determines that the 26 interests of policyholders, shareholders, or the public will 27 be served by the publication thereof, in which event the 28 commissioner may publish all or any part thereof in such 29 manner as the commissioner may deem appropriate. However, the 30 commissioner is authorized to use the information, documents, 31 or copies obtained by, disclosed to, or reported or provided 32 to the commissioner as described in this subsection, in the 33 furtherance of any regulatory or legal action brought as a part 34 of the commissioner’s official duties. 35 -10- LSB 5203SV (2) 86 av/nh 10/ 14

S.F. 2291 Sec. 11. Section 523I.808, Code 2016, is amended to read as 1 follows: 2 523I.808 Examination fee. 3 An examination fee shall be submitted with the cemetery’s 4 annual report in an amount equal to five dollars for each 5 certificate of interment rights issued during the fiscal year 6 time period covered by the report. The cemetery may charge 7 the examination fee directly to the purchaser of the interment 8 rights. 9 Sec. 12. Section 523I.813, subsections 1 and 2, Code 2016, 10 are amended to read as follows: 11 1. A perpetual care cemetery shall file an annual report at 12 the end of each fiscal year reporting period of the cemetery. 13 2. The report shall be filed with the commissioner within 14 four months following the end of the cemetery’s fiscal year 15 reporting period in the form required by the commissioner. 16 Sec. 13. APPLICABILITY. The following provision of this Act 17 is applicable to health insurance policies, contracts, or plans 18 that are delivered, issued for delivery, continued, or renewed 19 on or after January 1, 2017: 20 1. The section of this Act creating section 514K.2. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill relates to various matters involving insurance and 25 the insurance division of the department of commerce. 26 UNIFORM SECURITIES ACT. Code section 502.305(2) is 27 amended to provide that the filing fee for certain securities 28 registration filings will be prescribed by rule instead of 29 pursuant to a statutory formula based on the proposed aggregate 30 sales price of the securities to be offered. 31 Code section 502.305(10) is stricken, eliminating certain 32 requirements for amendments to registration statements when 33 securities are sold in the state in excess of the amount 34 registered at the time of sale. Code section 502.306(1)(a) is 35 -11- LSB 5203SV (2) 86 av/nh 11/ 14

S.F. 2291 amended to remove a cross-reference to the stricken subsection. 1 INSURANCE FRAUD. New Code section 507E.3A provides that 2 a person commits a class “D” felony if the person, with 3 intent to defraud another person in connection with any 4 sale, solicitation, or negotiation of insurance, willfully 5 employs any deception, device, scheme, or artifice to defraud; 6 misrepresents, conceals, or suppresses any material fact; or 7 engages in any act, practice, or course of business which 8 operates as a fraud or deceit upon another person. A person 9 who commits such insurance fraud that results in a loss of more 10 than $10,000 is guilty of a class “C” felony. 11 A class “D” felony is punishable by confinement for no more 12 than five years and a fine of at least $750 but not more than 13 $7,500. A class “C” felony is punishable by confinement for no 14 more than 10 years and a fine of at least $1,000 but not more 15 than $10,000. 16 HEALTH CARE PLAN INFORMATION. New Code section 514K.2 17 requires insurance carriers that provide small group and 18 individual health coverage to provide specified information 19 on the carrier’s internet site in a clear and understandable 20 form for use in comparing policies, contracts, and plans, and 21 coverage and premiums. The provision is applicable to health 22 insurance policies, contracts, or plans that are delivered, 23 issued for delivery, continued, or renewed on or after January 24 1, 2017. 25 INSURANCE HOLDING COMPANY SYSTEMS. Code section 521A.1 is 26 amended to add two new definitions. Code section 521A.1(5A) 27 defines a “group-wide supervisor” as a regulatory official 28 who is authorized, and who is determined or acknowledged by 29 the commissioner of insurance to have sufficient significant 30 contacts with an internationally active insurance group, to 31 engage in conducting and coordinating group-wide supervision 32 of the insurance group. Code section 521A.1(7A) defines an 33 “internationally active insurance group” as an insurance 34 holding company system that includes an insurer registered to 35 -12- LSB 5203SV (2) 86 av/nh 12/ 14

S.F. 2291 do business in this state that is a member of an insurance 1 holding company system that has premiums written in at least 2 three countries, at least 10 percent of gross premiums written 3 outside the United States, and based on a rolling three-year 4 average has total assets of at least $50 billion or total gross 5 written premiums of at least $10 billion. 6 Code section 521A.6A concerning supervisory colleges is 7 amended to strike subsections 2 and 3 relating to group-wide 8 supervisors. Code section 521A.6A(1) is amended to remove an 9 internal reference to subsection 3. 10 New Code section 521A.6B relates to group-wide supervision 11 of internationally active insurance groups. The commissioner 12 may act as the group-wide supervisor of an internationally 13 active insurance group in accordance with the provisions of 14 the new section. The commissioner may also authorize another 15 regulatory official to act as the group-wide supervisor based 16 on specified criteria. The provision requires the commissioner 17 to consider specific factors when determining whether the 18 commissioner or another regulatory official should act as the 19 group-wide supervisor. The commissioner is authorized to 20 collect information from any insurer registered in the state 21 as a member of an insurance holding company system and the 22 ultimate controlling person within the internationally active 23 insurance group as necessary for the commissioner to determine 24 or acknowledge who should be the group-wide supervisor. 25 The provision allows the commissioner to engage in 26 specified activities if acting as a group-wide supervisor. 27 The commissioner may also acknowledge that another regulatory 28 official is the group-wide supervisor and reasonably cooperate 29 with that official if the commissioner’s cooperation complies 30 with Iowa law and the other official recognizes and cooperates 31 with the commissioner’s activities as a group-wide supervisor 32 for other internationally active insurance groups. 33 An insurer registered in this state pursuant to Code chapter 34 521A must pay the reasonable expenses of the commissioner’s 35 -13- LSB 5203SV (2) 86 av/nh 13/ 14

S.F. 2291 participation in the administration of new Code section 1 521A.6B, including the engagement of experts and all reasonable 2 travel expenses. The commissioner is required to adopt rules 3 pursuant to Code chapter 17A to administer the new provision. 4 Code section 521A.7(1) is amended to provide that all 5 information reported or provided to the commissioner pursuant 6 to Code section 521A.6A and new Code section 521A.6B must 7 be given confidential treatment, shall not be subject to 8 subpoena, shall not be subject to discovery or admissible in 9 evidence in a private civil action, and shall not be made 10 public by the commissioner or any other person except under 11 specified circumstances. The commissioner is authorized to 12 use such information, documents, or copies in the furtherance 13 of any regulatory or legal action brought as part of the 14 commissioner’s official duties. 15 IOWA CEMETERY ACT. Code sections 521I.808 and 523I.813(1) 16 and (2) are amended to delete references to a fiscal year 17 relating to the time period when examination fees and annual 18 reports must be submitted by cemeteries to the commissioner. 19 -14- LSB 5203SV (2) 86 av/nh 14/ 14