H.F. 2236 Section 1. Section 502.611, Code 2018, is amended to read 1 as follows: 2 502.611 Service of process. 3 1. Signed consent to service of process. A consent to 4 service of process required by this chapter must be signed 5 and filed in the form required by a rule or order under this 6 chapter . A consent appointing the administrator the as a 7 person’s agent for service of process in a noncriminal action 8 or proceeding against the person, or the person’s successor or 9 personal representative under this chapter or a rule adopted 10 or order issued under this chapter after the consent is filed, 11 has the same force and validity as if the service of process 12 were made personally on the person filing the consent. A 13 person that has filed a consent complying with this subsection 14 in connection with a previous application for registration or 15 notice filing need not file an additional consent. 16 2. Conduct constituting appointment of agent for service of 17 process . If a person, including a nonresident of this state, 18 engages in an act, practice, or course of business prohibited 19 or made actionable by this chapter or a rule adopted or order 20 issued under this chapter and the person has not filed a 21 consent to service of process under subsection 1 , the act, 22 practice, or course of business constitutes the appointment of 23 the administrator as the person’s agent for service of process 24 in a noncriminal action or proceeding against the person or the 25 person’s successor or personal representative. 26 3. Procedure for service of process. Service If service of 27 process is made on the administrator under subsection 1 or 2 28 may it shall be made by providing a copy of the process to the 29 office of the administrator as provided in section 505.30 , but 30 it is not effective unless all of the following apply: 31 a. The plaintiff, which may be the administrator, shall 32 promptly sends send notice of the service of process and a 33 copy of the service of process , return receipt requested, by 34 certified mail to the defendant or respondent at the address 35 -1- LSB 5321HV (1) 87 ko/rj 1/ 13

H.F. 2236 set forth in the consent to service of process or, if a consent 1 to service of process has not been filed, at to the defendant’s 2 or respondent’s last known address, or takes other reasonable 3 steps to give notice principal place of business . 4 b. The plaintiff files shall file an affidavit of compliance 5 with this subsection in the action or proceeding on or before 6 the return day of the service of process, if any, or within 7 the time that the court, or the administrator in a proceeding 8 before the administrator, allows. 9 4. Service of process in an administrative proceedings 10 proceeding or civil actions action by administrator. Service of 11 process pursuant to subsection 3 may be used in a proceeding 12 before the administrator or by the administrator in a civil 13 action in which the administrator is the moving party. 14 5. Opportunity to defend. If process is served under 15 subsection 3 , the court, or the administrator in a proceeding 16 before the administrator, shall order continuances as are 17 necessary or appropriate to afford the defendant or respondent 18 reasonable opportunity to defend. 19 Sec. 2. Section 505.30, Code 2018, is amended to read as 20 follows: 21 505.30 Service of process —— fee made on the commissioner as 22 agent or attorney for service of process —— rules and fee . 23 1. The commissioner of insurance, pursuant to may adopt 24 rules adopted pursuant to chapter 17A , setting forth procedures 25 related to service of process made on the commissioner as 26 agent or attorney for service of process for an individual or 27 entity within the jurisdiction of the commissioner. The rules 28 shall apply when the individual or entity is required by law 29 to appoint the commissioner to serve, is required by law to 30 consent to have the commissioner serve, is deemed by law to 31 have appointed or to have consented to have the commissioner 32 serve, or elects to appoint or consents to have the 33 commissioner serve as agent or attorney for service of process. 34 2. The commissioner may collect a reasonable fee each 35 -2- LSB 5321HV (1) 87 ko/rj 2/ 13

H.F. 2236 time service of process is served made on the commissioner 1 as allowed by law set forth in subsection 1 or as otherwise 2 allowed by law . Fees A fee collected by the commissioner 3 under this section subsection shall be used and are is 4 appropriated to the insurance division to offset the costs 5 of receiving such service of process the commissioner acting 6 as agent or attorney for service of process . The party to a 7 proceeding causing requesting service of process is entitled to 8 recover this the fee paid pursuant to this subsection and any 9 rules adopted under this section as costs if the party prevails 10 in the proceeding. 11 3. The commissioner shall maintain for ninety days a record 12 of each service of process made on the commissioner pursuant 13 to this section, including the date each service of process 14 is made on the commissioner, the date each service of process 15 is forwarded by mail by the commissioner to the defendant 16 or respondent, and the date each certificate of service is 17 submitted electronically to the court. The records may be 18 maintained electronically. 19 Sec. 3. Section 507A.5, Code 2018, is amended to read as 20 follows: 21 507A.5 Proscribed acts binding on insurer. 22 1. No A person or insurer shall not directly or indirectly 23 perform any of the acts act of doing an insurance business as 24 defined in this chapter except as provided by and in accordance 25 with the specific authorization by statute. However, should 26 any an unauthorized person or insurer perform any an act of 27 doing an insurance business as set forth in this chapter , it 28 shall be equivalent to and shall constitute an irrevocable 29 appointment by such person or insurer, binding upon the 30 person, the person’s executor or administrator, or successor 31 in interest if a corporation, of the commissioner of insurance 32 or the commissioner’s successor in office, to be the true and 33 lawful attorney upon whom may be served all lawful process in 34 any action, suit or proceeding in any court arising out of 35 -3- LSB 5321HV (1) 87 ko/rj 3/ 13

H.F. 2236 doing an insurance business in this state or instituted by 1 or on behalf of an insured or beneficiary arising out of any 2 such acts an act of doing an insurance business, except in an 3 action, suit , or proceeding by the commissioner of insurance 4 or by the state. Any An act of doing an insurance business by 5 any an unauthorized person or insurer shall be signification of 6 its agreement that such service of process is of the same legal 7 force and validity as personal service of process in this state 8 upon such person or insurer. 9 2. Service of process made upon the commissioner as the 10 attorney for service of process shall be made by delivering to 11 and leaving with the commissioner of insurance or some person 12 in apparent charge of the commissioner’s office two copies 13 thereof and the payment to the commissioner of such fees as 14 may be prescribed by law as provided in section 505.30 . The 15 commissioner of insurance shall forthwith forward by certified 16 mail one of the copies of such process to the defendant at the 17 last known principal place of business and shall keep a record 18 of all process so served. Such service of process shall be 19 sufficient to provide notice if all of the following apply : 20 a. A The plaintiff or plaintiff’s attorney sends a copy of 21 the service of process is sent by certified mail within ten 22 days thereafter by certified mail by plaintiff or plaintiff’s 23 attorney to the defendant at the defendant’s last known 24 principal place of business. 25 b. The defendant’s receipt or a receipt issued by the post 26 office showing the name of the sender of the letter certified 27 mail and the name and address of the person to whom the letter 28 certified mail is addressed and an affidavit by the plaintiff 29 or plaintiff’s attorney showing a attesting to compliance 30 herewith with this subsection are filed with the clerk of the 31 court in which such the action is pending on or before the date 32 the defendant is required to appear or within such further time 33 as the court may allow. 34 3. Service of process in any such action, suit, or 35 -4- LSB 5321HV (1) 87 ko/rj 4/ 13

H.F. 2236 proceeding shall in addition to the manner as provided in 1 this chapter be valid if served made upon any a person within 2 this state who, in this state on behalf of such insurer, 3 is soliciting insurance, making, issuing, or delivering 4 any contract of insurance, or collecting or receiving any 5 premium, membership fee, assessment, or other consideration for 6 insurance, and if all of the following apply : 7 a. A The plaintiff or plaintiff’s attorney sends a copy 8 of such service of process is sent by certified mail within 9 ten days thereafter by certified mail by the plaintiff or 10 plaintiff’s attorney to the defendant at the defendant’s last 11 known principal place of business of the defendant . 12 b. The defendant’s receipt, or the a receipt issued by 13 the post office showing the name of the sender of the letter 14 certified mail and the name and address of the person to whom 15 the letter certified mail is addressed, and an affidavit of by 16 the plaintiff or plaintiff’s attorney showing a attesting to 17 compliance herewith with this subsection are filed with the 18 clerk of the court in which such action is pending on or before 19 the date the defendant is required to appear or within such 20 further time as the court may allow. 21 4. No A plaintiff shall not be entitled to a judgment by 22 default under this chapter until the expiration of thirty 23 days from the date of the filing of on which the plaintiff or 24 plaintiff’s attorney files the affidavit of compliance. 25 5. Nothing in this section shall limit or abridge the right 26 to serve any process, notice, or demand upon any insurer in any 27 other manner now or hereafter permitted by law. 28 Sec. 4. Section 508E.3, subsection 7, Code 2018, is amended 29 to read as follows: 30 7. The commissioner shall not issue a license to a 31 nonresident applicant unless a written designation of an 32 agent for service of process is filed and maintained with the 33 commissioner or the applicant has filed with the commissioner 34 the applicant’s written irrevocable consent that any action 35 -5- LSB 5321HV (1) 87 ko/rj 5/ 13

H.F. 2236 against the applicant may be commenced against the applicant by 1 service of process on the commissioner. If an applicant files 2 such consent, service of process made on the commissioner as 3 the agent for service of process shall be made as provided in 4 section 505.30. 5 Sec. 5. Section 511.28, Code 2018, is amended to read as 6 follows: 7 511.28 Service of process. 8 Any notice or process, with three copies of the notice 9 or process, may be mailed to the commissioner at Des Moines, 10 Iowa, in a certified mail letter addressed to the commissioner 11 by the commissioner’s official title. The commissioner 12 shall acknowledge service on behalf of the defendant foreign 13 insurance company by writing, giving the date of receipt of 14 the notice or process, and shall return the notice or process 15 in a certified mail letter to the clerk of the court in which 16 the suit is pending, addressed to the clerk by the clerk’s 17 official title, and shall also mail a copy, with a copy of the 18 commissioner’s acknowledgment of service written thereon, in a 19 certified mail letter addressed to the person or corporation 20 named or designated by such company in the written instrument. 21 Notice or process received prior to 10 a.m. shall be forwarded 22 the same working day. Notice or process received after 10 a.m. 23 shall be forwarded the next working day. A fee of fifteen 24 dollars must accompany the request for notice or process. 25 Service of process made on the commissioner as the agent for 26 service of process shall be made as provided in section 505.30. 27 Sec. 6. Section 512B.33, Code 2018, is amended to read as 28 follows: 29 512B.33 Service of process. 30 1. A society authorized to do business in this state shall 31 file in the office of the commissioner a power of attorney 32 and an agreement in writing that service of process in any 33 action or proceeding against the society may be served on the 34 commissioner and shall be of the same legal force and validity 35 -6- LSB 5321HV (1) 87 ko/rj 6/ 13

H.F. 2236 as if served upon the society, and that the authority shall 1 continue in force so long as any liability remains outstanding 2 in this state. Copies A copy of the power of attorney, 3 certified by the commissioner, shall be deemed sufficient 4 evidence of the appointment and shall be admitted in evidence 5 with the same force and effect as the original. 6 2. Service of process shall only be made upon the 7 commissioner, or if absent, upon the person in charge of 8 the commissioner’s office made on the commissioner as the 9 agent for service of process shall be made as provided in 10 section 505.30 . Service shall be made in triplicate and shall 11 constitute sufficient service upon the society. When legal 12 process against a society is served upon the commissioner, the 13 commissioner shall promptly forward one of the duplicate copies 14 by registered mail, prepaid, directed to the secretary or 15 corresponding officer of the society. A society shall not be 16 required to file its answer, pleading, or defense in less than 17 thirty days from the date of mailing the copy of the service 18 to a society the commissioner sends a copy of the service of 19 process to the society by certified mail as provided in section 20 505.30 . Legal process shall not be served made upon a society 21 except in the manner provided in this section . 22 Sec. 7. Section 514.2A, Code 2018, is amended to read as 23 follows: 24 514.2A Service of process. 25 A nonprofit health service corporation authorized to 26 do business in this state shall file in the office of the 27 commissioner a power of attorney and an agreement in writing 28 that service of process in any action or proceeding against 29 the corporation may be served made on the commissioner and 30 shall be of the same legal force and validity as if served made 31 upon the corporation, and that the authority shall continue 32 in force so long as any liability remains outstanding in this 33 state. Copies A copy of the power of attorney, certified by 34 the commissioner, shall be deemed sufficient evidence of the 35 -7- LSB 5321HV (1) 87 ko/rj 7/ 13

H.F. 2236 appointment and shall be admitted in evidence with the same 1 force and effect as the original. Service of process made on 2 the commissioner as the attorney for service of process shall 3 be made as provided in section 505.30. 4 Sec. 8. Section 515.77, Code 2018, is amended to read as 5 follows: 6 515.77 Service of process. 7 Any notice or service of process , with three copies of the 8 notice or process, may be mailed to the commissioner at Des 9 Moines, Iowa, in a certified mail letter addressed to the 10 commissioner by the commissioner’s official title made on the 11 commissioner as agent for service of process shall be made as 12 provided in section 505.30 . The commissioner shall acknowledge 13 service on behalf of the defendant foreign insurance company by 14 writing, giving the date of receipt of the notice or process, 15 and shall return the notice or process in a certified mail 16 letter to the clerk of the court in which the suit is pending, 17 addressed to the clerk by the clerk’s official title, and 18 shall also mail a copy, with a copy of the commissioner’s 19 acknowledgment of service written thereon, in a certified 20 mail letter addressed to the person or corporation named or 21 designated by such company in the written instrument. Notice 22 or process received prior to 10:00 a.m. shall be forwarded the 23 same working day. Notice or process received after 10:00 a.m. 24 shall be forwarded the next working day. A fee of fifteen 25 dollars must accompany the request for notice or process. 26 Sec. 9. Section 515E.3, Code 2018, is amended to read as 27 follows: 28 515E.3 Risk retention groups organized in this state. 29 To be organized as a risk retention group in this state, 30 the group must be organized and licensed as a liability 31 insurance company authorized by the insurance laws of this 32 state. Except as provided elsewhere in this chapter , a risk 33 retention group organized in this state must comply with all 34 of the laws, rules, and requirements applicable to a liability 35 -8- LSB 5321HV (1) 87 ko/rj 8/ 13

H.F. 2236 insurers insurer organized in this state. Additionally, a 1 risk retention group organized in this state must comply with 2 section 515E.4 . These requirements do not exempt a risk 3 retention groups group from a duty imposed by any other law or 4 rule of the state. Before it may offer insurance in any state, 5 each a risk retention group shall also submit for approval to 6 the commissioner of insurance of this state a plan of operation 7 or a feasibility study, and revisions of the plan or study , 8 within ten days of any change. The name under which a risk 9 retention group may be chartered and licensed shall be a brief 10 description of its membership followed by the phrase “risk 11 retention group” and, unless its membership consists solely of 12 insurers, shall not include the terms “insurance”, “mutual”, 13 “reciprocal”, or any similar term. All A risk retention groups 14 group chartered in this state shall file with the division 15 and the national association of insurance commissioners an 16 annual statement blank prepared in accordance with instructions 17 prescribed by the commissioner. All financial information 18 reflected in the annual statement shall be kept and prepared in 19 accordance with accounting practices and procedures prescribed 20 by the commissioner. The commissioner may adopt by reference 21 the annual statement handbook and the accounting practices and 22 procedures manual of the national association of insurance 23 commissioners. 24 A risk retention group organized in this state shall file 25 in the office of the commissioner a power of attorney and an 26 agreement in writing that service of process in any action 27 or proceeding against the society may be served made on the 28 commissioner and shall be of the same legal force and validity 29 as if served made upon the society, and that the authority 30 shall continue in force so long as any liability remains 31 outstanding in this state. Copies of the power of attorney, 32 certified by the commissioner, shall be deemed sufficient 33 evidence of the appointment and shall be admitted in evidence 34 with the same force and effect as the original. Service of 35 -9- LSB 5321HV (1) 87 ko/rj 9/ 13

H.F. 2236 process made on the commissioner as the attorney for service of 1 process shall be made as provided in section 505.30. 2 Sec. 10. Section 516E.12, Code 2018, is amended to read as 3 follows: 4 516E.12 Service of process. 5 The commissioner shall be the agent attorney for service of 6 process upon a provider, a service company, or a third-party 7 administrator and , or an issuer of a reimbursement insurance 8 policy. Service of process made on the commissioner as the 9 agent for service of process shall be made as provided in 10 section 505.30. 11 Sec. 11. Section 520.6, Code 2018, is amended to read as 12 follows: 13 520.6 Manner of service Service of process . 14 Three copies of such process shall be served and the 15 commissioner of insurance shall file one copy, forward one copy 16 to said attorney, and return one copy with the commissioner’s 17 admission of service. Service of process made on the 18 commissioner as the agent for service of process shall be made 19 as provided in section 505.30. 20 Sec. 12. Section 521A.3, subsection 7, Code 2018, is amended 21 to read as follows: 22 7. Jurisdiction —— consent to service of process. The 23 district court is hereby vested with jurisdiction over every 24 a person that is not a resident, is not domiciled, or is 25 not authorized to do business in this state who that files 26 a statement with the commissioner under this section , and 27 over all actions involving such the person arising out of 28 violations of this section , and each such the person shall be 29 deemed to have performed acts equivalent to and constituting 30 an appointment by such a the person of the commissioner to be 31 the person’s true and lawful attorney upon whom may be served 32 made all lawful process, notice, or demand in any action, suit, 33 or proceeding arising out of violations a violation of this 34 section . Copies A copy of all such lawful process, notice, or 35 -10- LSB 5321HV (1) 87 ko/rj 10/ 13

H.F. 2236 demand shall be served made on the commissioner as the attorney 1 for service of process as provided in section 505.30 and 2 transmitted by registered or certified mail by the commissioner 3 to such person at the person’s last known address . 4 Sec. 13. NEW SECTION . 521B.107 Service of process made on 5 the commissioner as the agent for service of process. 6 Service of process made on the commissioner as the agent for 7 service of process shall be made as provided in section 505.30. 8 Sec. 14. NEW SECTION . 521C.13 Service of process made on 9 the commissioner as the agent for service of process. 10 Service of process made on the commissioner as the agent for 11 service of process shall be made as provided in section 505.30. 12 Sec. 15. NEW SECTION . 523A.802A Service of process made on 13 the commissioner as the agent for service of process. 14 Service of process made on the commissioner as the agent for 15 service of process shall be made as provided in section 505.30. 16 Sec. 16. Section 523C.20, Code 2018, is amended to read as 17 follows: 18 523C.20 Consent to service of process. 19 If a person engages in conduct subject to regulation under 20 this chapter , the conduct shall constitute the appointment 21 of the commissioner of insurance as the person’s attorney 22 to receive service of any lawful process in a noncriminal 23 proceeding against the person, a successor, or personal 24 representative, which grows out of that conduct, with the same 25 force and validity as if served made personally. Service of 26 process made on the commissioner as the attorney for service of 27 process shall be made as provided in section 505.30. 28 Sec. 17. Section 523C.21, Code 2018, is amended to read as 29 follows: 30 523C.21 Service of process. 31 The commissioner shall be the agent for service of process 32 upon a service company. Service of process made on the 33 commissioner as the agent for service of process shall be made 34 as provided in section 505.30. 35 -11- LSB 5321HV (1) 87 ko/rj 11/ 13

H.F. 2236 Sec. 18. Section 523I.102, subsection 1, Code 2018, is 1 amended to read as follows: 2 1. “Authorized to do business within this state” means a 3 person licensed, registered, or subject to regulation by an 4 agency of the state of Iowa or who has filed a consent to 5 service of process with the commissioner for purposes of this 6 chapter . 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill relates to service of process made on the 11 commissioner of insurance as the agent or attorney for service 12 of process for regulated entities and individuals. 13 Code section 505.30 (insurance division) is amended and 14 provides that the commissioner may adopt rules for the process 15 by which service of process shall be made upon the commissioner 16 as the agent or attorney for service of process for a regulated 17 entity or individual. The commissioner shall also retain for 18 90 days a record of each service of process made, the time 19 served, the date the commissioner mails the service of process 20 to the defendant or respondent and the date each certificate 21 of service is filed with the court. No change is made to the 22 commissioner’s ability to collect a reasonable fee for each 23 process made on the commissioner. 24 Code sections 508E.3(7) (viatical settlement contracts), 25 520.6 (reciprocal or interinsurance contracts), and 523C.20 and 26 523C.21 (residential service contracts) are amended to provide 27 that service of process on the commissioner as the agent or 28 attorney for service of process shall be made as provided in 29 Code section 505.30. 30 Code sections 502.611 (uniform securities Act), 507A.5 31 (unauthorized insurers), 512B.33 (fraternal benefit societies), 32 514.2A (nonprofit health service corporations), 515E.3 (risk 33 retention groups and purchasing groups), 516E.12 (motor vehicle 34 service contracts), and 521A.3(7) (insurance holding company 35 -12- LSB 5321HV (1) 87 ko/rj 12/ 13

H.F. 2236 systems) are amended to provide that service of process on the 1 commissioner as the agent or attorney for service of process 2 shall be made as provided in Code section 505.30 and to make 3 technical changes for enhanced readability and consistency. 4 Code sections 511.28 (life insurance companies and 5 associations) and 515.77 (insurance other than life) are 6 amended to provide that service of process on the commissioner 7 as the agent for service of process shall be made as 8 provided in Code section 505.30. In addition, the $15.00 9 fee required for service of process on the commissioner is 10 stricken, allowing for a reasonable fee to be collected by the 11 commissioner as provided in Code section 505.30. 12 New Code sections 521B.107 (credit for reinsurance), 521C.13 13 (reinsurance intermediaries), and 523A.802A (cemetery and 14 funeral merchandise and funeral services) require that service 15 of process on the commissioner as the agent for service of 16 process shall be made as provided in Code section 505.30. 17 Code section 523I.201(1) (Iowa cemetery Act) is amended to 18 remove the commissioner as an agent for service of process. 19 -13- LSB 5321HV (1) 87 ko/rj 13/ 13