SF 232 (LSB 1302SV (1) 87)

SENATE FILE 232

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO SSB 1042)

A BILL FOR

An Act relating to notifications made by the commissioner of insurance of the potential need for a receivership for certain preneed sellers and cemeteries.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 523A.811, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  01.  The commissioner may notify the attorney general of the potential need for establishment of a receivership if a receivership is requested or consented to by a seller subject to this chapter.
    Sec. 2.  Section 523I.212, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  01.  The commissioner may notify the attorney general of the potential need for establishment of a receivership if a receivership is requested or consented to by a cemetery subject to this chapter.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill allows the commissioner of insurance to notify the attorney general of the potential need for establishment of a receivership for a preneed seller of cemetery and funeral merchandise or funeral services who is subject to Code chapter 523A, if the preneed seller requests or consents to a receivership.
   Similarly, the bill allows the commissioner to notify the attorney general of the potential need for establishment of a receivership for a cemetery subject to Code chapter 523I if the cemetery requests or consents to a receivership.
   As required under current law, the commissioner must continue to make such notifications if the commissioner finds that a preneed seller or cemetery meets one or more specified conditions.