House
File
2616
-
Introduced
HOUSE
FILE
2616
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
2388)
(SUCCESSOR
TO
HSB
575)
A
BILL
FOR
An
Act
relating
to
matters
involving
insurance
and
the
1
insurance
division
of
the
department
of
commerce,
providing
2
fees,
and
resolving
inconsistencies.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5362HZ
(1)
88
ko/rn
H.F.
2616
DIVISION
I
1
INSURANCE
2
Section
1.
Section
507B.7,
Code
2020,
is
amended
to
read
as
3
follows:
4
507B.7
Cease
and
desist
orders
Orders
and
penalties.
5
1.
If,
after
hearing,
the
commissioner
determines
that
a
6
person
has
engaged
in
an
unfair
method
of
competition
or
an
7
unfair
or
deceptive
act
or
practice,
the
commissioner
shall
8
reduce
the
findings
to
writing
and
shall
issue
and
cause
to
9
be
served
upon
the
person
charged
with
the
violation
a
copy
10
of
such
findings,
an
order
requiring
such
person
to
cease
11
and
desist
from
engaging
in
such
method
of
competition,
act,
12
or
practice,
and
the
commissioner
may
at
the
commissioner’s
13
discretion
order
any
one
or
more
of
the
following:
14
a.
Payment
of
a
civil
penalty
of
not
more
than
one
thousand
15
dollars
for
each
act
or
violation
of
this
subtitle,
but
not
16
to
exceed
an
aggregate
of
ten
thousand
dollars,
unless
the
17
person
knew
or
reasonably
should
have
known
the
person
was
in
18
violation
of
this
subtitle,
in
which
case
the
penalty
shall
be
19
not
more
than
five
thousand
dollars
for
each
act
or
violation,
20
but
not
to
exceed
an
aggregate
penalty
of
fifty
thousand
21
dollars
in
any
one
six-month
period.
If
the
commissioner
finds
22
that
a
violation
of
this
subtitle
was
directed,
encouraged,
23
condoned,
ignored,
or
ratified
by
the
employer
of
the
person
or
24
by
an
insurer,
the
commissioner
shall
also
assess
a
penalty
to
25
the
employer
or
insurer.
26
b.
Suspension
or
revocation
of
the
license
of
a
person
as
27
defined
in
section
507B.2,
subsection
1
,
if
the
person
knew
or
28
reasonably
should
have
known
the
person
was
in
violation
of
29
this
subtitle.
30
c.
Payment
of
interest
at
the
rate
of
ten
percent
per
31
annum
if
the
commissioner
finds
that
the
insurer
failed
to
32
pay
interest
as
required
under
section
507B.4,
subsection
3
,
33
paragraph
“p”
.
34
2.
Until
the
expiration
of
the
time
allowed
under
section
35
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2616
507B.8
for
filing
a
petition
for
review
if
no
such
petition
has
1
been
duly
filed
within
such
time,
or,
if
a
petition
for
review
2
has
been
filed
within
such
time,
then
until
the
transcript
of
3
the
record
in
the
proceeding
has
been
filed
in
the
district
4
court,
as
hereinafter
provided,
the
commissioner
may
at
any
5
time,
upon
such
notice
and
in
such
manner
as
the
commissioner
6
may
deem
proper,
modify
or
set
aside
in
whole
or
in
part
any
7
order
issued
by
the
commissioner
under
this
section
.
8
3.
After
the
expiration
of
the
time
allowed
for
filing
9
such
a
petition
for
review
if
no
such
petition
has
been
duly
10
filed
within
such
time,
the
commissioner
may
at
any
time,
after
11
notice
and
opportunity
for
hearing,
reopen
and
alter,
modify,
12
or
set
aside,
in
whole
or
in
part,
any
order
issued
by
the
13
commissioner
under
this
section
,
whenever
in
the
commissioner’s
14
opinion
conditions
of
fact
or
of
law
have
so
changed
as
15
to
require
such
action,
or
if
the
public
interest
shall
so
16
require.
17
4.
Any
person
who
violates
a
cease
and
desist
an
order
18
of
the
commissioner,
and
while
such
order
is
in
effect,
may,
19
after
notice
and
hearing
and
upon
order
of
the
commissioner,
20
be
subject
at
the
discretion
of
the
commissioner
to
any
one
or
21
more
of
the
following:
22
a.
A
monetary
penalty
of
not
more
than
ten
thousand
dollars
23
for
each
and
every
act
or
violation.
A
penalty
collected
24
under
this
lettered
paragraph
shall
be
deposited
as
provided
25
in
section
505.7
.
26
b.
Suspension
or
revocation
of
such
person’s
license.
27
Sec.
2.
Section
514G.103,
subsection
10,
Code
2020,
is
28
amended
to
read
as
follows:
29
10.
“Independent
review
entity
organization
”
means
a
review
30
entity
organization
certified
by
the
commissioner
pursuant
to
31
section
514G.110,
subsection
4
.
32
Sec.
3.
Section
514G.110,
Code
2020,
is
amended
to
read
as
33
follows:
34
514G.110
Independent
review
of
benefit
trigger
35
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determinations.
1
1.
Request.
An
insured
may
file
a
written
request
for
2
independent
review
of
a
benefit
trigger
determination
with
3
the
commissioner
after
the
internal
appeal
process
has
been
4
exhausted.
The
request
shall
be
filed
within
sixty
days
after
5
the
insured
receives
written
notice
of
the
insurer’s
internal
6
appeal
decision.
7
2.
Eligibility
for
review.
The
commissioner
shall
certify
8
that
the
request
is
eligible
for
independent
review
if
all
of
9
the
following
criteria
are
satisfied:
10
a.
The
insured
was
covered
by
a
long-term
care
insurance
11
policy
issued
by
the
insurer
at
the
time
the
benefit
trigger
12
determination
was
made.
13
b.
The
sole
reason
for
requesting
an
independent
review
is
14
to
review
the
insurer’s
determination
that
the
benefit
trigger
15
was
not
met.
16
c.
The
insured
has
exhausted
all
internal
appeal
procedures
17
provided
under
the
insured’s
long-term
care
insurance
policy.
18
d.
The
written
request
for
independent
review
was
filed
by
19
the
insured
within
sixty
days
from
the
date
of
receipt
of
the
20
insurer’s
internal
appeal
decision.
21
3.
Notice
of
eligibility.
The
commissioner
shall
provide
22
written
notice
regarding
eligibility
of
a
request
for
23
independent
review
to
the
insured
and
the
insurer
within
two
24
business
days
from
the
date
of
receipt
of
the
request.
25
a.
If
the
commissioner
decides
that
the
request
is
not
26
eligible
for
independent
review,
the
written
notice
shall
27
indicate
the
reasons
for
that
decision.
28
b.
If
the
commissioner
certifies
that
the
request
is
29
eligible
for
independent
review,
the
insurer
may
appeal
that
30
certification
by
filing
a
written
notice
of
appeal
with
the
31
commissioner
within
three
business
days
from
the
date
of
32
receipt
of
the
notice
of
certification.
If
upon
further
33
review,
the
commissioner
upholds
the
certification,
the
34
commissioner
shall
promptly
notify
the
insured
and
the
insurer
35
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in
writing
of
the
reasons
for
that
decision.
1
4.
Qualifications
of
independent
review
entities
2
organizations
.
The
commissioner
shall
maintain
a
list
of
3
qualified
independent
review
entities
organizations
that
are
4
certified
by
the
commissioner.
Independent
review
entities
5
organizations
shall
be
recertified
by
the
commissioner
every
6
two
years
in
order
to
remain
on
the
list.
In
order
to
be
7
certified,
an
independent
review
entity
organization
shall
meet
8
all
of
the
following
criteria:
9
a.
Have
on
staff,
or
contract
with,
a
qualified,
licensed
10
health
care
professional
in
an
appropriate
field
for
11
determining
an
insured’s
functional
or
cognitive
impairment
who
12
can
conduct
an
independent
review.
13
(1)
In
order
to
be
qualified,
a
licensed
health
care
14
professional
who
is
a
physician
shall
hold
a
current
15
certification
by
a
recognized
American
medical
specialty
16
board
in
a
specialty
appropriate
for
determining
an
insured’s
17
functional
or
cognitive
impairment.
18
(2)
In
order
to
be
qualified,
a
licensed
health
care
19
professional
who
is
not
a
physician
shall
hold
a
current
20
certification
in
the
specialty
in
which
that
person
is
21
licensed,
by
a
recognized
American
specialty
board
in
a
22
specialty
appropriate
for
determining
an
insured’s
functional
23
or
cognitive
impairment.
24
b.
Ensure
that
any
licensed
health
care
professional
who
25
conducts
an
independent
review
has
no
history
of
disciplinary
26
actions
or
sanctions,
including
but
not
limited
to
the
loss
27
of
staff
privileges
or
any
participation
restrictions
taken
28
or
pending
by
any
hospital
or
state
or
federal
government
29
regulatory
agency.
30
c.
Ensure
that
the
independent
review
entity
organization
31
or
any
of
its
employees,
agents,
or
licensed
health
care
32
professionals
utilized
does
not
receive
compensation
of
any
33
type
that
is
dependent
on
the
outcome
of
a
review.
34
d.
Ensure
that
the
independent
review
entity
organization
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or
any
of
its
employees,
agents,
or
licensed
health
care
1
professionals
utilized
are
not
in
any
manner
related
to,
2
employed
by,
or
affiliated
with
the
insured
or
with
a
person
3
who
previously
provided
medical
care
to
the
insured.
4
e.
Ensure
that
an
independent
review
entity
organization
5
or
any
of
its
employees,
agents,
or
licensed
health
care
6
professionals
utilized
is
not
a
subsidiary
of,
or
owned
or
7
controlled
by,
an
insurer
or
by
a
trade
association
of
insurers
8
of
which
the
insurer
is
a
member.
9
f.
Have
a
quality
assurance
program
on
file
with
the
10
commissioner
that
ensures
the
timeliness
and
quality
of
reviews
11
performed,
the
qualifications
and
independence
of
the
licensed
12
health
care
professionals
who
perform
the
reviews,
and
the
13
confidentiality
of
the
review
process.
14
g.
Have
on
staff
or
contract
with
a
licensed
health
care
15
practitioner,
as
defined
in
section
514G.103,
subsection
3
,
who
16
is
qualified
to
certify
that
an
individual
is
chronically
ill
17
for
purposes
of
a
qualified
long-term
care
insurance
contract.
18
5.
Independent
review
process.
The
independent
review
19
process
shall
be
conducted
as
follows:
20
a.
Within
three
business
days
of
receiving
a
notice
from
the
21
commissioner
of
the
certification
of
a
request
for
independent
22
review
or
receipt
of
a
denial
of
an
insurer’s
appeal
from
such
23
a
certification,
the
insurer
shall
do
all
of
the
following:
24
(1)
Select
an
independent
review
entity
organization
from
25
the
list
certified
by
the
commissioner
and
notify
the
insured
26
in
writing
of
the
name,
address,
and
telephone
number
of
the
27
selected
independent
review
entity
selected
organization
.
The
28
selected
independent
review
entity
selected
organization
shall
29
utilize
a
licensed
health
care
professional
with
qualifications
30
appropriate
to
the
benefit
trigger
determination
that
is
under
31
review.
32
(2)
Notify
the
independent
review
entity
organization
33
that
it
has
been
selected
to
conduct
an
independent
review
34
of
a
benefit
trigger
determination
and
provide
sufficient
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descriptive
information
to
enable
the
independent
review
entity
1
organization
to
provide
licensed
health
care
professionals
who
2
will
be
qualified
to
conduct
the
review.
3
(3)
Provide
the
commissioner
with
a
copy
of
the
notices
sent
4
to
the
insured
and
to
the
selected
independent
review
entity
5
selected
organization
.
6
b.
Within
three
business
days
of
receiving
a
notice
from
7
an
insurer
that
it
has
been
selected
to
conduct
an
independent
8
review,
the
independent
review
entity
organization
shall
do
one
9
of
the
following:
10
(1)
Accept
its
selection
as
the
independent
review
entity
11
organization
,
designate
a
qualified
licensed
health
care
12
professional
to
perform
the
independent
review,
and
provide
13
notice
of
that
designation
to
the
insured
and
the
insurer,
14
including
a
brief
description
of
the
health
care
professional’s
15
qualifications
and
the
reasons
that
person
is
qualified
to
16
determine
whether
the
insured’s
benefit
trigger
has
been
met.
17
A
copy
of
this
notice
shall
be
sent
to
the
commissioner
via
18
facsimile.
The
independent
review
entity
organization
is
not
19
required
to
disclose
the
name
of
the
health
care
professional
20
selected.
21
(2)
Decline
its
selection
as
the
independent
review
entity
22
organization
or,
if
the
independent
review
entity
organization
23
does
not
have
a
licensed
health
care
professional
who
is
24
qualified
to
conduct
the
independent
review
available,
request
25
additional
time
from
the
commissioner
to
have
a
qualified
26
licensed
health
care
professional
certified,
and
provide
27
notice
to
the
insured,
the
insurer,
and
the
commissioner.
28
The
commissioner
shall
notify
the
independent
review
entity
29
organization
,
the
insured,
and
the
insurer
of
how
to
proceed
30
within
three
business
days
of
receipt
of
such
notice
from
the
31
independent
review
entity
organization
.
32
c.
An
insured
may
object
to
the
independent
review
entity
33
organization
selected
by
the
insurer
or
to
the
licensed
34
health
care
professional
designated
by
the
independent
review
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entity
organization
to
conduct
the
review
by
filing
a
notice
1
of
objection
along
with
reasons
for
the
objection
,
with
the
2
commissioner
within
ten
days
of
receipt
of
a
notice
sent
by
the
3
independent
review
entity
organization
pursuant
to
paragraph
4
“b”
.
The
commissioner
shall
consider
the
insured’s
objection
5
and
shall
notify
the
insured,
the
insurer,
and
the
independent
6
review
entity
organization
of
the
commissioner’s
decision
to
7
sustain
or
deny
the
objection
within
two
business
days
of
8
receipt
of
the
objection.
9
d.
Within
five
business
days
of
receiving
a
notice
from
10
the
independent
review
entity
organization
accepting
its
11
selection
or
within
five
business
days
of
receiving
a
denial
12
of
an
objection
to
the
independent
review
entity
organization
13
selected,
whichever
is
later,
the
insured
may
submit
any
14
information
or
documentation
in
support
of
the
insured’s
claim
15
to
both
the
independent
review
entity
organization
and
the
16
insurer.
17
e.
Within
fifteen
days
of
receiving
a
notice
from
the
18
independent
review
entity
organization
accepting
its
selection
19
or
within
three
business
days
of
receipt
of
a
denial
of
20
an
objection
to
the
independent
review
entity
organization
21
selected,
whichever
is
later,
an
insurer
shall
do
all
of
the
22
following:
23
(1)
Provide
the
independent
review
entity
organization
24
with
any
information
submitted
to
the
insurer
by
the
insured
25
in
support
of
the
insured’s
internal
appeal
of
the
insurer’s
26
benefit
trigger
determination.
27
(2)
Provide
the
independent
review
entity
organization
with
28
any
other
relevant
documents
used
by
the
insurer
in
making
its
29
benefit
trigger
determination.
30
(3)
Provide
the
insured
and
the
commissioner
with
31
confirmation
that
the
information
required
under
subparagraphs
32
(1)
and
(2)
has
been
provided
to
the
independent
review
entity
33
organization
,
including
the
date
the
information
was
provided.
34
f.
The
independent
review
entity
organization
shall
not
35
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commence
its
review
until
fifteen
days
after
the
selection
of
1
the
independent
review
entity
organization
is
final
including
2
the
resolution
of
any
objection
made
pursuant
to
paragraph
3
“c”
.
During
this
time
period,
the
insurer
may
consider
any
4
information
provided
by
the
insured
pursuant
to
paragraph
5
“d”
and
overturn
or
affirm
the
insurer’s
benefit
trigger
6
determination
based
on
such
information.
If
the
insurer
7
overturns
its
benefit
trigger
determination,
the
independent
8
review
process
shall
immediately
cease.
9
g.
In
conducting
a
review,
the
independent
review
10
entity
organization
shall
consider
only
the
information
11
and
documentation
provided
to
the
independent
review
entity
12
organization
pursuant
to
paragraphs
“d”
and
“e”
.
13
h.
The
independent
review
entity
organization
shall
submit
14
its
decision
as
soon
as
possible,
but
not
later
than
thirty
15
days
from
the
date
the
independent
review
entity
organization
16
receives
the
information
required
under
paragraphs
“d”
and
“e”
,
17
whichever
is
received
later.
The
decision
shall
include
a
18
description
of
the
basis
for
the
decision
and
the
date
of
the
19
benefit
trigger
determination
to
which
the
decision
relates.
20
The
independent
review
entity
organization
,
for
good
cause,
21
may
request
an
extension
of
time
from
the
commissioner
to
file
22
its
decision.
A
copy
of
the
decision
shall
be
mailed
to
the
23
insured,
the
insurer,
and
the
commissioner.
24
i.
All
medical
records
submitted
for
use
by
the
independent
25
review
entity
organization
shall
be
maintained
as
confidential
26
records
as
required
by
applicable
state
and
federal
laws.
The
27
commissioner
shall
keep
all
information
obtained
during
the
28
independent
review
process
confidential
pursuant
to
section
29
505.8,
subsection
8
,
except
that
the
commissioner
may
share
30
some
information
obtained
as
provided
under
section
505.8,
31
subsection
8
,
and
as
required
by
this
chapter
and
rules
adopted
32
pursuant
to
this
chapter
.
33
j.
If
an
insured
dies
before
completion
of
the
independent
34
review,
the
review
shall
continue
to
completion
if
there
35
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is
potential
liability
of
an
insurer
to
the
estate
of
the
1
insured
or
to
a
provider
for
rendering
qualified
long-term
care
2
services
to
the
insured.
3
6.
Costs.
All
reasonable
fees
and
costs
of
the
independent
4
review
entity
incurred
organization
in
conducting
an
5
independent
review
under
this
section
shall
be
paid
by
the
6
insurer.
7
7.
Immunity.
An
independent
review
entity
organization
that
8
conducts
a
review
under
this
section
is
not
liable
for
damages
9
arising
from
determinations
made
during
the
review.
Immunity
10
does
not
apply
to
any
act
or
omission
made
by
an
independent
11
review
entity
organization
in
bad
faith
or
that
involves
gross
12
negligence.
13
8.
Effect
of
independent
review
decision.
14
a.
The
review
decision
by
the
independent
review
entity
15
organization
conducting
the
review
is
binding
on
the
insurer.
16
b.
The
independent
review
process
set
forth
in
this
section
17
shall
not
be
considered
a
contested
case
under
chapter
17A
.
18
c.
An
insured
may
appeal
the
review
decision
by
the
19
independent
review
entity
organization
conducting
the
review
20
by
filing
a
petition
for
judicial
review
in
the
district
court
21
in
the
county
in
which
the
insured
resides.
The
petition
for
22
judicial
review
shall
be
filed
within
fifteen
business
days
23
after
the
issuance
of
the
review
decision
by
the
independent
24
review
organization
.
The
petition
shall
name
the
insured
25
as
the
petitioner
and
the
insurer
as
the
respondent.
The
26
petitioner
shall
not
name
the
independent
review
entity
27
organization
as
a
party.
The
commissioner
shall
not
be
named
28
as
a
respondent
unless
the
insured
alleges
action
or
inaction
29
by
the
commissioner
under
the
standards
articulated
under
30
section
17A.19,
subsection
10
.
Allegations
made
against
the
31
commissioner
under
section
17A.19,
subsection
10
,
must
be
32
stated
with
particularity.
The
commissioner
may,
upon
motion,
33
intervene
in
a
judicial
review
proceeding
brought
pursuant
to
34
this
paragraph.
The
findings
of
fact
by
the
independent
review
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entity
organization
conducting
the
review
are
conclusive
and
1
binding
on
appeal.
2
d.
An
insurer
shall
not
be
subject
to
any
penalties,
3
sanctions,
or
damages
for
complying
in
good
faith
with
a
review
4
decision
rendered
by
an
independent
review
entity
organization
5
pursuant
to
this
section
.
6
e.
Nothing
contained
in
this
section
or
in
section
514G.109
7
shall
be
construed
to
limit
the
right
of
an
insurer
to
assert
8
any
rights
an
insurer
may
have
under
a
long-term
care
insurance
9
policy
related
to:
10
(1)
An
insured’s
misrepresentation.
11
(2)
Changes
in
the
insured’s
benefit
eligibility.
12
(3)
Terms,
conditions,
and
exclusions
contained
in
the
13
policy,
other
than
failure
to
meet
the
benefit
trigger.
14
f.
The
requirements
of
this
section
and
section
514G.109
are
15
not
applicable
to
a
group
long-term
care
insurance
policy
that
16
is
governed
by
the
federal
Employee
Retirement
Income
Security
17
Act
of
1974,
as
codified
at
29
U.S.C.
§100
et
seq.
18
g.
The
provisions
of
this
section
and
section
514G.109
19
are
in
lieu
of
and
supersede
any
other
third-party
review
20
requirement
contained
in
chapter
514J
or
in
any
other
provision
21
of
law.
22
h.
The
insured
may
bring
an
action
in
the
district
court
23
in
the
county
in
which
the
insured
resides
to
enforce
the
24
review
decision
of
the
independent
review
entity
organization
25
conducting
the
review
or
the
decision
of
the
court
on
appeal.
26
9.
Receipt
of
notice.
Notice
required
by
this
section
shall
27
be
deemed
received
within
five
days
after
the
date
of
mailing.
28
Sec.
4.
Section
515D.4,
subsection
2,
paragraph
a,
Code
29
2020,
is
amended
to
read
as
follows:
30
a.
The
named
insured
or
any
operator
who
either
resides
31
in
the
same
household
or
customarily
operates
an
automobile
32
insured
under
the
policy
has
that
person’s
driver’s
license
33
suspended
or
revoked
during
the
policy
term
or,
if
the
policy
34
is
a
renewal,
during
its
term
or
the
one
hundred
eighty
days
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immediately
preceding
its
effective
date.
during
any
of
the
1
following:
2
(1)
The
term
of
the
policy.
3
(2)
The
term
of
a
renewal
policy.
4
(3)
One
hundred
eighty
days
immediately
preceding
the
5
effective
date
of
a
renewal
of
the
policy.
6
Sec.
5.
Section
515D.6,
Code
2020,
is
amended
to
read
as
7
follows:
8
515D.6
Prohibited
reasons
for
nonrenewal
.
9
1.
No
insurer
shall
refuse
to
renew
a
policy
solely
because
10
of
age,
residence,
sex,
race,
color,
creed,
or
occupation
of
11
an
insured.
12
2.
No
insurer
shall
require
a
physical
examination
of
a
13
policyholder
as
a
condition
for
renewal
solely
on
the
basis
of
14
age
or
other
arbitrary
reason.
In
the
event
that
an
insurer
15
requires
a
physical
examination
of
a
policyholder,
the
burden
16
of
proof
in
establishing
reasonable
and
sufficient
grounds
for
17
such
requirement
shall
rest
with
the
insurer
and
the
expenses
18
incident
to
such
examination
shall
be
borne
by
the
insurer.
19
Sec.
6.
Section
515F.32,
subsection
3,
Code
2020,
is
amended
20
to
read
as
follows:
21
3.
“Insurer”
includes
all
companies
or
associations
licensed
22
to
transact
insurance
business
in
this
state
under
chapters
23
515
,
518
,
and
518A
,
reciprocal
insurers
issued
a
certificate
24
of
authority
pursuant
to
chapter
520,
and
companies
or
25
associations
admitted
or
seeking
to
be
admitted
to
do
business
26
in
this
state
under
any
of
those
chapters,
notwithstanding
any
27
provision
of
the
Code
to
the
contrary.
28
Sec.
7.
Section
515F.36,
subsection
2,
Code
2020,
is
amended
29
to
read
as
follows:
30
2.
The
committee
shall
consist
of
seven
members.
31
a.
Five
Four
of
the
members
shall
be
elected
to
the
32
committee,
with
one
member
from
each
of
the
following:
33
(1)
American
property
casualty
insurance
association.
34
(2)
Property
casualty
insurers
association
of
America.
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(3)
(2)
Iowa
insurance
institute.
1
(4)
(3)
Mutual
insurance
association
of
Iowa.
2
(5)
(4)
Independent
insurance
agents
of
Iowa.
3
b.
Two
Three
of
the
members
shall
be
elected
to
the
4
committee
by
other
insurer
members
of
the
plan.
5
Sec.
8.
NEW
SECTION
.
515F.39
Cancellation
or
nonrenewal
——
6
FAIR
notice.
7
If
basic
property
insurance
coverage
is
canceled
or
not
8
renewed
other
than
for
nonpayment
of
a
premium
pursuant
to
9
section
515.125,
515.126,
515.127,
515.128,
518.23,
or
518A.29,
10
the
insurer
shall
notify
the
named
insured
that
the
named
11
insured
may
be
eligible
for
basic
property
insurance
through
12
the
FAIR
plan.
The
notice
shall
accompany
the
notice
of
13
cancellation
or
the
intent
not
to
renew.
14
Sec.
9.
Section
515I.4,
subsection
1,
paragraph
a,
Code
15
2020,
is
amended
to
read
as
follows:
16
a.
Capital
and
surplus
or
its
equivalent
under
the
laws
of
17
the
insurer’s
domiciliary
jurisdiction
which
equals
the
greater
18
of
either
greatest
of
the
following:
19
(1)
The
minimum
capital
and
surplus
requirements
under
the
20
laws
of
this
state.
21
(2)
Fifteen
million
dollars.
22
(3)
The
risk-based
capital
level
requirements
pursuant
to
23
chapter
521E.
24
Sec.
10.
Section
522.9,
subsection
1,
Code
2020,
is
amended
25
to
read
as
follows:
26
1.
If
an
insurer
fails,
without
just
cause,
to
file
an
27
own
risk
and
solvency
assessment
summary
report
by
the
filing
28
date
stipulated
to
the
commissioner
pursuant
to
section
522.5,
29
subsection
1
,
paragraph
“c”
,
the
commissioner
shall,
after
30
notice
and
hearing,
impose
a
penalty
of
five
hundred
dollars
31
for
each
day
after
the
stipulated
date
that
the
summary
32
report
is
not
filed.
The
penalties
shall
be
collected
by
the
33
commissioner
and
deposited
in
the
general
fund
of
the
state
34
pursuant
to
section
505.7
.
The
maximum
penalty
which
may
be
35
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imposed
under
this
section
is
fifty
thousand
dollars.
1
DIVISION
II
2
CEMETERY
AND
PRENEED
SELLERS
AND
SALES
3
Sec.
11.
Section
523A.204,
subsections
1
and
2,
Code
2020,
4
are
amended
to
read
as
follows:
5
1.
A
preneed
seller
shall
file
an
annual
report
with
the
6
commissioner
not
later
than
April
1
of
each
year
an
annual
7
report
15
on
a
form
prescribed
by
the
commissioner.
8
2.
A
preneed
seller
filing
an
annual
report
shall
pay
a
9
filing
fee
of
ten
dollars
per
purchase
agreement
sold
during
10
the
year
covered
by
the
report.
Duplicate
filing
fees
are
11
not
required
for
the
same
purchase
agreement.
If
a
purchase
12
agreement
has
multiple
sellers,
the
filing
fee
shall
be
paid
13
by
the
preneed
seller
actually
providing
the
merchandise
and
14
services.
15
Sec.
12.
Section
523A.204,
Code
2020,
is
amended
by
adding
16
the
following
new
subsection:
17
NEW
SUBSECTION
.
4.
The
commissioner
may
impose
a
late
fee
18
in
the
amount
of
five
dollars
for
each
day
after
April
15
that
19
a
preneed
seller
fails
to
file
the
preneed
seller’s
annual
20
report.
The
maximum
late
fee
that
may
be
imposed
pursuant
21
to
this
section
is
five
hundred
dollars.
The
fee
shall
be
22
collected
by
the
commissioner
and
deposited
pursuant
to
section
23
505.7.
24
Sec.
13.
Section
523A.501,
subsection
7,
Code
2020,
is
25
amended
to
read
as
follows:
26
7.
A
preneed
seller’s
license
expires
shall
expire
annually
27
on
April
15
30
.
If
the
preneed
seller
has
filed
a
complete
28
an
annual
report
pursuant
to
section
523A.204,
subsection
1,
29
and
paid
the
required
filing
fees
as
required
in
pursuant
to
30
section
523A.204
,
subsection
2,
the
commissioner
shall
renew
31
the
preneed
seller’s
license
until
April
15
30
of
the
following
32
year.
33
Sec.
14.
Section
523A.502,
subsection
5,
Code
2020,
is
34
amended
to
read
as
follows:
35
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5.
A
sales
license
shall
expire
annually
on
April
15
30
.
1
If
the
a
sales
agent
has
filed
a
substantially
complete
annual
2
report
as
required
in
pursuant
to
section
523A.502A
,
subsection
3
1,
and
has
fulfilled
the
continuing
education
requirements
4
pursuant
to
subsection
6
of
this
section,
the
commissioner
5
shall
renew
the
sales
agent’s
sales
license
until
April
15
30
6
of
the
following
year.
7
Sec.
15.
Section
523A.502A,
subsection
1,
Code
2020,
is
8
amended
to
read
as
follows:
9
1.
A
No
later
than
April
15,
a
sales
agent
shall
file
an
10
annual
report
with
the
commissioner
not
later
than
April
1
11
of
each
year
an
annual
report
on
a
form
prescribed
by
the
12
commissioner
describing
each
purchase
agreement
sold
by
the
13
sales
agent
during
the
year.
An
annual
report
must
be
filed
14
whether
or
not
sales
were
made
a
sales
agent
sold
any
purchase
15
agreements
during
the
year
and
even
if
the
whether
or
not
a
16
sales
agent
is
no
longer
still
an
agent
of
a
preneed
seller
or
17
is
still
licensed
by
the
commissioner.
18
Sec.
16.
Section
523A.502A,
Code
2020,
is
amended
by
adding
19
the
following
new
subsection:
20
NEW
SUBSECTION
.
3.
The
commissioner
may
impose
a
late
fee
21
in
the
amount
of
five
dollars
for
each
day
after
April
15
that
a
22
sales
agent
fails
to
file
the
sales
agent’s
annual
report.
The
23
maximum
late
fee
that
may
be
imposed
pursuant
to
this
section
24
is
five
hundred
dollars.
The
fee
shall
be
collected
by
the
25
commissioner
and
deposited
pursuant
to
section
505.7.
26
Sec.
17.
Section
523A.601,
subsection
4,
Code
2020,
is
27
amended
to
read
as
follows:
28
4.
A
purchase
agreement
shall
be
signed
by
the
purchaser,
29
the
seller,
and
if
the
agreement
is
for
mortuary
science
30
services
as
mortuary
science
is
defined
in
section
156.1
,
a
31
person
licensed
to
deliver
funeral
services.
All
purchase
32
agreements,
including
a
purchase
agreement
delivered
or
33
executed
by
electronic
means,
must
have
a
sales
agent
34
identified.
A
purchase
agreement,
including
a
purchase
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agreement
delivered
or
executed
by
electronic
means,
shall
1
be
reviewed
by
the
sales
agent
identified
and
named
in
the
2
purchase
agreement
pursuant
to
subsection
1,
paragraph
“a”
,
and
3
signed
by
the
purchaser
and
seller.
If
the
purchase
agreement
4
is
for
mortuary
science
services
as
mortuary
science
is
defined
5
in
section
156.1,
the
purchase
agreement
must
also
be
signed
by
6
a
person
licensed
to
deliver
funeral
services.
7
Sec.
18.
Section
523A.807,
subsection
3,
unnumbered
8
paragraph
1,
Code
2020,
is
amended
to
read
as
follows:
9
If
the
commissioner
finds
that
a
person
has
violated
10
section
523A.201
,
523A.202
,
523A.203
,
523A.207
,
523A.401
,
11
523A.402
,
523A.403
,
523A.404
,
523A.405
,
523A.501
,
or
523A.502
,
12
or
523A.502A,
or
any
rule
adopted
pursuant
thereto,
the
13
commissioner
may
order
any
or
all
of
the
following:
14
Sec.
19.
Section
523A.812,
Code
2020,
is
amended
to
read
as
15
follows:
16
523A.812
Insurance
division
regulatory
fund.
17
The
insurance
division
may
authorize
the
creation
of
a
18
special
revenue
fund
in
the
state
treasury,
to
be
known
as
19
the
insurance
division
regulatory
fund.
The
commissioner
20
shall
allocate
annually
from
the
filing
fees
paid
pursuant
21
to
section
523A.204
,
two
dollars
for
each
purchase
agreement
22
reported
on
a
preneed
seller’s
annual
report
filed
pursuant
23
to
section
523A.204
for
deposit
to
the
regulatory
fund.
The
24
remainder
of
the
filing
fees
collected
pursuant
to
section
25
523A.204
shall
be
deposited
as
provided
in
section
505.7
.
The
26
commissioner
shall
also
allocate
annually
the
examination
27
fees
paid
pursuant
to
section
523A.814
and
any
examination
28
expense
reimbursement
for
deposit
to
the
regulatory
fund.
The
29
moneys
in
the
regulatory
fund
shall
be
retained
in
the
fund.
30
The
moneys
are
appropriated
and,
subject
to
authorization
by
31
the
commissioner,
may
be
used
to
pay
examiners,
examination
32
expenses,
investigative
expenses,
the
expenses
of
mediation
33
ordered
by
the
commissioner,
consumer
education
expenses,
the
34
expenses
of
a
toll-free
telephone
line
to
receive
consumer
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complaints,
and
the
expenses
of
receiverships
established
1
under
section
523A.811
.
If
the
commissioner
determines
that
2
funding
is
not
otherwise
available
to
reimburse
the
expenses
of
3
a
person
who
receives
title
to
a
cemetery
subject
to
chapter
4
523I
,
pursuant
to
such
a
receivership,
the
commissioner
shall
5
use
moneys
in
the
regulatory
fund
as
necessary
to
preserve,
6
protect,
restore,
and
maintain
the
physical
integrity
of
7
that
cemetery
and
to
satisfy
claims
or
demands
for
cemetery
8
merchandise,
funeral
merchandise,
and
funeral
services
based
on
9
purchase
agreements
which
the
commissioner
determines
are
just
10
and
outstanding.
An
annual
allocation
to
the
regulatory
fund
11
shall
not
be
imposed
if
the
current
balance
of
the
fund
exceeds
12
five
hundred
thousand
dollars.
13
Sec.
20.
Section
523I.102,
subsection
6,
Code
2020,
is
14
amended
by
adding
the
following
new
paragraph:
15
NEW
PARAGRAPH
.
d.
A
cemetery
under
the
jurisdiction
and
16
control
of
a
cemetery
commission
pursuant
to
section
331.325,
17
subsection
3,
paragraph
“c”
.
18
Sec.
21.
Section
523I.213,
Code
2020,
is
amended
to
read
as
19
follows:
20
523I.213
Insurance
division’s
enforcement
fund.
21
A
special
revenue
fund
in
the
state
treasury,
to
be
known
as
22
the
insurance
division’s
enforcement
fund,
is
created
under
the
23
authority
of
the
commissioner.
The
commissioner
shall
allocate
24
annually
from
the
examination
fees
paid
pursuant
to
section
25
523I.808
,
an
amount
not
exceeding
fifty
thousand
dollars,
for
26
deposit
to
all
examination
fees
collected
pursuant
to
section
27
523I.808
in
the
insurance
division’s
enforcement
fund.
The
28
moneys
in
the
enforcement
fund
shall
be
retained
in
the
fund.
29
The
moneys
are
appropriated
and,
subject
to
authorization
by
30
the
commissioner,
shall
be
used
to
pay
examiners,
examination
31
expenses,
investigative
expenses,
the
expenses
of
consumer
32
education,
compliance,
and
education
programs
for
filers
and
33
other
regulated
persons,
and
educational
or
compliance
program
34
materials,
the
expenses
of
a
toll-free
telephone
line
for
35
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consumer
complaints,
and
the
expenses
of
receiverships
of
1
perpetual
care
cemeteries
established
under
section
523I.212
.
2
Sec.
22.
Section
523I.301,
subsections
1
and
2,
Code
2020,
3
are
amended
to
read
as
follows:
4
1.
A
cemetery
shall
disclose,
prior
to
the
sale
of
interment
5
rights,
whether
opening
and
closing
of
the
interment
space
is
6
services
are
included
in
the
purchase
of
the
interment
rights.
7
If
opening
and
closing
services
are
not
included
in
the
sale
of
8
interment
rights
and
the
cemetery
offers
opening
and
closing
9
services,
the
cemetery
must
disclose
that
the
price
for
this
10
service
opening
and
closing
services
is
subject
to
change
11
and
must
disclose
the
current
prices
for
opening
and
closing
12
services
provided
by
the
cemetery.
13
2.
The
cemetery
shall
fully
disclose
all
fees
required
for
14
interment,
entombment,
or
inurnment
of
human
remains
and
for
15
disinterment
services
.
16
Sec.
23.
Section
523I.808,
Code
2020,
is
amended
to
read
as
17
follows:
18
523I.808
Examination
fee.
19
An
examination
fee
in
an
amount
equal
to
ten
dollars
for
20
each
certificate
of
interment
rights
issued
during
the
time
21
period
covered
by
the
report
shall
be
submitted
with
the
a
22
perpetual
care
cemetery’s
annual
report
in
an
amount
equal
to
23
five
dollars
for
each
certificate
of
interment
rights
issued
24
during
the
time
period
covered
by
the
report
filed
pursuant
to
25
section
523I.813
.
The
cemetery
may
charge
the
examination
fee
26
directly
to
the
purchaser
of
the
interment
rights.
27
Sec.
24.
Section
523I.813,
subsection
3,
Code
2020,
is
28
amended
to
read
as
follows:
29
3.
The
commissioner
shall
levy
an
administrative
penalty
30
in
the
amount
of
up
to
five
hundred
dollars
against
a
cemetery
31
that
fails
to
file
the
annual
report
when
due,
payable
to
the
32
state
for
deposit
as
provided
in
section
505.7
.
However,
33
the
commissioner
may
waive
the
administrative
penalty
upon
34
a
showing
of
good
cause
or
financial
hardship
may
assess
a
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late
fee
in
the
amount
of
five
dollars
for
each
day
after
the
1
date
a
perpetual
care
cemetery’s
annual
report
is
due
that
the
2
perpetual
care
cemetery
fails
to
file
the
annual
report.
The
3
maximum
late
fee
that
may
be
imposed
pursuant
to
this
section
4
is
five
hundred
dollars.
The
fee
shall
be
collected
by
the
5
commissioner
and
deposited
pursuant
to
section
505.7
.
6
EXPLANATION
7
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
8
the
explanation’s
substance
by
the
members
of
the
general
assembly.
9
This
bill
relates
to
various
matters
involving
insurance
and
10
the
insurance
division
of
the
department
of
commerce.
The
bill
11
is
organized
into
two
divisions.
12
DIVISION
I
——
INSURANCE.
Code
section
507B.7
(cease
and
13
desist
orders)
is
amended
to
provide
that
a
person
who
violates
14
any
order
of
the
insurance
commissioner
(commissioner),
may,
15
after
notice
and
hearing
be
subject
to
a
monetary
penalty
and
16
suspension
or
revocation
of
the
person’s
license.
Current
law
17
provides
that
a
person
who
violates
a
cease
and
desist
order
18
of
the
commissioner
is
subject
to
the
penalty
and
suspension
19
or
revocation.
20
Code
chapter
514G
(long-term
care
insurance)
is
amended
21
to
change
terminology
throughout
the
Code
chapter
from
22
an
“independent
review
entity”
to
an
“independent
review
23
organization”.
24
The
bill
amends
Code
section
515D.4
(notice
of
cancellation
25
——
reasons)
to
provide
more
specification
regarding
when
a
26
person
can
be
excluded
from
an
automobile
insurance
policy
due
27
to
the
person’s
driver’s
license
being
suspended
or
revoked
28
during
the
term
of
the
policy
or
a
renewal
of
the
policy.
29
Code
section
515F.32
is
amended
to
add
reciprocal
insurers
30
to
the
definition
of
“insurer”.
Code
section
515F.36
is
31
amended
to
change
the
make-up
of
the
membership
of
the
32
governing
committee
that
administers
the
FAIR
plan.
33
The
bill
requires
that
if
basic
property
insurance
coverage
34
is
canceled
or
not
renewed
other
than
for
nonpayment
of
a
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premium
pursuant
to
Code
section
515.125,
515.126,
515.127,
1
515.128,
518.23,
or
518A.29,
the
insurer
must
notify
the
named
2
insured
that
the
named
insured
may
be
eligible
for
basic
3
property
insurance
through
the
FAIR
plan.
The
notice
must
4
accompany
the
notice
of
cancellation
or
the
intent
not
to
5
renew.
6
The
bill
amends
Code
section
515I.4
(requirements
for
7
eligible
surplus
lines
insurers)
to
allow
a
nonadmitted
8
insurer
seeking
to
qualify
as
an
eligible
surplus
line
insurer
9
the
option
of
demonstrating
that
the
nonadmitted
insurer
10
has
capital
and
surplus
under
the
laws
of
the
nonadmitted
11
insurer’s
domiciliary
that
equal
the
risk-based
capital
level
12
requirements
required
by
Iowa
law.
Current
law
requires
the
13
nonadmitted
insurer
to
demonstrate
that
the
nonadmitted
insurer
14
has
capital
and
surplus
under
the
laws
of
the
nonadmitted
15
insurer’s
domiciliary
that
equal
the
greater
of
the
minimum
16
capital
and
surplus
required
under
the
laws
of
this
state,
or
17
$15
million.
18
Code
section
522.9
is
amended
to
allow
the
commissioner
19
to
deposit
penalties
pursuant
to
Code
section
505.7
(fees
——
20
expenses
of
division
——
assessments)
that
have
been
collected
21
due
to
insurers’
failure
to
file
a
timely
own
risk
and
solvency
22
assessment
summary
report.
Code
section
505.7
requires
23
the
commissioner
to
transfer
the
collected
penalties
to
the
24
treasurer
of
state
for
deposit
in
the
department
of
commerce
25
revolving
fund.
Current
law
requires
the
commissioner
to
26
deposit
the
penalties
into
the
general
fund
of
the
state.
27
DIVISION
II
——
CEMETERY
AND
PRENEED
SELLERS
AND
SALES.
28
The
bill
amends
Code
section
523A.204
(preneed
seller
annual
29
reporting
requirements)
to
require
a
preneed
seller
to
30
file
an
annual
report
no
later
than
April
15.
Current
law
31
requires
the
report
to
be
filed
by
April
1.
The
bill
allows
32
the
commissioner
to
impose
a
late
fee
of
$5
per
day,
up
to
a
33
maximum
late
fee
of
$500.
The
fee
is
to
be
collected
by
the
34
commissioner
and
deposited
pursuant
to
Code
section
505.7.
The
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bill
specifies
that
a
preneed
seller’s
license
expires
annually
1
on
April
30,
rather
than
the
current
expiration
date
of
April
2
15.
3
Code
section
523A.502A
(sales
agent
annual
reporting
4
requirements)
is
amended
to
require
a
sales
agent
to
file
5
the
sales
agent’s
annual
report
by
April
15,
rather
than
the
6
current
due
date
of
April
1.
The
bill
allows
the
commissioner
7
to
impose
a
late
fee
of
$5
per
day,
up
to
a
maximum
late
fee
8
of
$500.
The
fee
is
to
be
collected
by
the
commissioner
and
9
deposited
pursuant
to
Code
section
505.7.
The
bill
allows
10
the
commissioner
to
impose
a
civil
penalty
or
to
issue
an
11
order
prohibiting
the
person
from
selling
funeral
merchandise,
12
cemetery
merchandise,
or
funeral
services.
13
Code
section
523A.601
is
amended
to
require
all
purchase
14
agreements,
including
purchase
agreements
delivered
or
executed
15
by
electronic
means,
to
identify
a
sales
agent.
The
purchase
16
agreement
must
also
be
reviewed
by
the
sales
agent
and
signed
17
by
the
purchaser
and
seller.
If
the
purchase
agreement
is
for
18
mortuary
science
services,
the
purchase
agreement
must
also
be
19
signed
by
a
person
licensed
to
deliver
funeral
services.
20
The
bill
amends
Code
section
523A.812
(insurance
division
21
regulatory
fund)
and
removes
the
prohibition
on
an
annual
22
allocation
to
the
regulatory
fund
if
the
current
balance
of
the
23
fund
exceeds
$500,000.
24
Code
section
523I.102
is
amended
to
exclude
specific
25
cemeteries
under
the
jurisdiction
and
control
of
a
cemetery
26
commission
that
has
jurisdiction
and
control
over
pioneer
27
cemeteries
from
the
definition
of
“cemetery”
for
purposes
of
28
Code
chapter
523I
(Iowa
cemetery
Act).
29
Code
section
523I.213
(insurance
division’s
enforcement
30
fund)
is
amended
to
remove
the
cap
on
the
allocation
to
the
31
insurance
division’s
enforcement
fund
of
examination
fees
paid
32
by
perpetual
cemeteries
with
a
perpetual
cemetery’s
annual
33
report.
The
bill
requires
the
commissioner
to
deposit
all
of
34
the
examination
fees
in
the
enforcement
fund.
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Code
section
523I.301
(disclosure
requirements
——
prices
1
and
fees)
is
amended
to
require
a
cemetery
to
disclose,
prior
2
to
the
sale
of
interment
rights,
whether
opening
and
closing
3
services
are
included
in
the
purchase
price.
The
bill
also
4
requires
a
cemetery
to
fully
disclose
all
fees
associated
with
5
disinterment
services.
6
The
bill
amends
Code
section
523I.808
to
require
an
7
examination
fee
of
$10
per
certificate
of
interment
rights
8
issued
to
be
filed
with
a
perpetual
care
cemetery’s
annual
9
report.
Under
current
law,
the
fee
is
$5
per
certificate
of
10
interment
rights
issued.
11
The
bill
amends
Code
section
523I.813
(annual
report
by
12
perpetual
care
cemeteries)
to
allow,
rather
than
to
require,
13
the
commissioner
to
impose
a
late
penalty
on
a
perpetual
care
14
cemetery
that
fails
to
file
its
annual
report
on
time.
15
-21-
LSB
5362HZ
(1)
88
ko/rn
21/
21