House File 490 - Introduced HOUSE FILE 490 BY BENNETT , BROWN-POWERS , HUNTER , ABDUL-SAMAD , T. TAYLOR , MEYER , RUNNING-MARQUARDT , STAED , FINKENAUER , and M. SMITH A BILL FOR An Act prohibiting the use of gender in determining premium 1 rates or assessments for certain insurance policies, and 2 including penalties and applicability dates. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2254YH (3) 87 av/nh

H.F. 490 Section 1. Section 507B.4, subsection 3, paragraph g, Code 1 2017, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (4) Notwithstanding subparagraph (1), 3 determining premium rates or assessments, in whole or in part, 4 for any contract of life insurance or health care coverage 5 according to an insured’s gender. 6 Sec. 2. Section 509.2, Code 2017, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 4A. A provision specifying that premium 9 rates shall not be determined, in whole or in part, according 10 to the individual insured’s or enrollee’s gender. 11 Sec. 3. Section 509.3, Code 2017, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 3. In addition to the provisions required 14 in subsection 1, the commissioner shall require provisions 15 through the adoption of rules specifying that premium rates for 16 coverage under a policy of group accident or health insurance 17 or a combination thereof issued in this state shall not be 18 determined, in whole or in part, according to an insured’s or 19 enrollee’s gender. 20 Sec. 4. Section 509A.3, Code 2017, is amended to read as 21 follows: 22 509A.3 Assessment of employees. 23 1. All employees participating in any such plan the fund of 24 which is created under the provisions of section 509A.2 shall 25 be assessed and required to pay an amount to be fixed by the 26 governing body not to exceed the two percent which shall be 27 contributed by the public body according to the plan adopted, 28 and the amount so assessed shall be deducted and retained out 29 of the wages or salaries of such employees. 30 2. Any employee may authorize deductions from the 31 employee’s wages or salary in payment for plans authorized in 32 this chapter in the manner provided in section 514.16 . 33 3. Assessments for participation in a plan created pursuant 34 to this chapter shall not be determined, in whole or in part, 35 -1- LSB 2254YH (3) 87 av/nh 1/ 2

H.F. 490 according to an employee’s gender. 1 Sec. 5. Section 514A.2, Code 2017, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 1A. Premium rates for a policy of accident 4 and sickness insurance delivered or issued for delivery to any 5 person in this state shall not be determined, in whole or in 6 part, according to the person’s gender. 7 Sec. 6. APPLICABILITY. This Act applies to premium rates or 8 assessments for insurance or health care coverage determined in 9 this state pursuant to Code chapter 509, 509A, or 514A, on or 10 after January 1, 2018. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill provides that premium rates or assessments for 15 individual or group life insurance, group accident or health 16 insurance, group health insurance for public employees, 17 and individual accident and health insurance shall not be 18 determined, in whole or in part, according to the individual 19 insured’s or enrollee’s gender. 20 The bill also provides that making such a determination 21 based on gender constitutes unfair discrimination and is an 22 unfair act or practice in the business of insurance under Code 23 chapter 507B. A violation of this provision is subject to a 24 civil penalty of not more than $1,000 for each unknowing act or 25 violation or an aggregate of not to exceed $10,000, or not more 26 than $5,000 for each knowing act or violation or an aggregate 27 not to exceed $50,000, in any one six-month period. 28 The provisions of the bill are applicable to premium rates or 29 assessments for insurance or health care coverage determined in 30 this state pursuant to Code chapter 509, 509A, or 514A, on or 31 after January 1, 2018. 32 -2- LSB 2254YH (3) 87 av/nh 2/ 2