S.F. _____ H.F. _____ Section 1. Section 502.604A, Code 2019, is amended to read 1 as follows: 2 502.604A Limited law Law enforcement authority. 3 The administrator or the administrator’s designee, when 4 carrying out the provisions of section 502.603 or 502.604 , may 5 develop, share, and receive information related to any law 6 enforcement purpose, including any criminal investigation. 7 The administrator or designee shall not have the authority to 8 issue criminal subpoenas or make arrests. The administrator 9 or designee shall not be considered a peace officer, including 10 as provided in chapter 801 . An insurance fraud bureau 11 investigator shall be authorized to conduct an investigation 12 under article 5 of this chapter and shall have law enforcement 13 authority pursuant to section 507E.8. 14 Sec. 2. Section 507E.2, Code 2019, is amended to read as 15 follows: 16 507E.2 Purpose. 17 An insurance fraud bureau is created within the insurance 18 division. Upon a reasonable determination by the division, 19 by its own inquiries or as a result of complaints a complaint 20 filed with the division, that a person has engaged in, is 21 engaging in, or may be engaging in an act or practice that 22 violates this chapter or any other provision of the insurance 23 code subject to the jurisdiction of the commissioner , the 24 division may administer oaths and affirmations, serve subpoenas 25 ordering the attendance of witnesses, and collect evidence 26 related to such act or practice. 27 Sec. 3. Section 507E.5, subsection 5, Code 2019, is amended 28 to read as follows: 29 5. An insurance fraud bureau investigator or other staff 30 member of the bureau is not subject to subpoena in a civil 31 action concerning any matter of which the bureau investigator 32 or other staff member has knowledge pursuant to a pending or 33 continuing investigation being conducted by the bureau pursuant 34 to this chapter . 35 -1- LSB 1215XD (13) 88 ko/rn 1/ 10

S.F. _____ H.F. _____ Sec. 4. Section 507E.8, Code 2019, is amended to read as 1 follows: 2 507E.8 Law enforcement officer status authority . 3 1. Bureau investigators For purposes of an arrest resulting 4 from a criminal violation of any provision of the Code subject 5 to the jurisdiction of the commissioner established as a result 6 of an investigation pursuant to this chapter, an insurance 7 fraud bureau investigator shall have the power authority and 8 status of a law enforcement officers who by the nature of their 9 duties may be required to perform the duties of a peace officer 10 when making arrests for criminal violations established as a 11 result of their investigations pursuant to this chapter officer 12 pursuant to section 80B.3, subsection 3 . 13 2. The general laws applicable to arrests an arrest by a 14 law enforcement officers officer of the state also apply to 15 an insurance fraud bureau investigators investigator . Bureau 16 investigators An insurance fraud bureau investigator shall 17 have the power to execute arrest warrants and search warrants 18 for the same criminal violations , serve subpoenas issued for 19 the examination, investigation, and trial of all offenses 20 identified through their investigations the course of an 21 investigation conducted pursuant to this section , and arrest 22 upon probable cause without warrant a person found in the act 23 of committing a violation of the provisions a provision of this 24 chapter . 25 Sec. 5. Section 508E.3, Code 2019, is amended to read as 26 follows: 27 508E.3 License requirements. 28 1. a. A person shall not operate as a viatical settlement 29 provider or viatical settlement broker without first obtaining 30 a license from the commissioner of the state of residence of 31 the viator. 32 b. (1) A life insurance producer who has been duly licensed 33 as a resident insurance producer with a life line of authority 34 in this state or the life insurance producer’s home state for 35 -2- LSB 1215XD (13) 88 ko/rn 2/ 10

S.F. _____ H.F. _____ at least one year immediately prior to operating as a viatical 1 settlement broker and is licensed as a nonresident producer in 2 this state shall be deemed to meet the licensing requirements 3 of this section and shall be permitted to operate as a viatical 4 settlement broker. 5 (2) Not later than thirty days from the first day of 6 operating as a viatical settlement broker, the life insurance 7 producer shall notify the commissioner that the life insurance 8 producer is acting as a viatical settlement broker on a form 9 prescribed by the commissioner, and shall pay any applicable 10 fee of up to one hundred dollars as provided by rules adopted 11 by the commissioner. The notification shall include an 12 acknowledgment by the life insurance producer that the life 13 insurance producer will operate as a viatical settlement broker 14 in accordance with this chapter . The notification shall also 15 include proof that the life insurance producer is covered by an 16 errors and omissions policy for an amount of not less than one 17 hundred thousand dollars per occurrence and not less than one 18 hundred thousand dollars total annual aggregate for all claims 19 during the policy period. 20 (3) b. The An insurer that issued the a policy being 21 viaticated shall not be responsible for any act or omission of 22 a viatical settlement broker or viatical settlement provider 23 arising out of or in connection with the viatical settlement 24 transaction, unless the insurer receives compensation for the 25 placement of a viatical settlement contract from the viatical 26 settlement provider or viatical settlement broker in connection 27 with the viatical settlement contract. 28 c. A person licensed as an attorney, certified public 29 accountant, or financial planner accredited by a nationally 30 recognized accreditation agency who is retained to represent 31 the a viator, whose compensation is not paid directly or 32 indirectly by the viatical settlement provider, may negotiate a 33 viatical settlement contracts contract on behalf of the viator 34 without having to obtain a license as a viatical settlement 35 -3- LSB 1215XD (13) 88 ko/rn 3/ 10

S.F. _____ H.F. _____ broker. 1 2. An application for a viatical settlement provider 2 or viatical settlement broker license shall be made to the 3 commissioner by the applicant on a form prescribed by the 4 commissioner, and the application shall be accompanied by a 5 fee of not more than one hundred dollars as provided by rules 6 adopted by the commissioner. 7 3. The A viatical settlement provider or viatical 8 settlement broker license term shall be three years and the 9 license may be renewed upon payment of the a renewal fee of not 10 more than one hundred dollars as provided by rules adopted by 11 the commissioner. A failure to pay the fee by the renewal date 12 results shall result in expiration of the license. 13 4. An applicant shall provide information on forms 14 required by the commissioner and shall meet all requirements 15 pursuant to section 522B.5A if required by the commissioner . 16 The commissioner shall have the authority , at any time, to 17 require the an applicant to fully disclose the identity of 18 all stockholders, partners, officers, members, and employees , 19 and the . The commissioner may, in the exercise of the 20 commissioner’s discretion, refuse to issue a license in the 21 name of a legal entity to such applicant if not satisfied that 22 any officer, employee, stockholder, partner, or member thereof , 23 or employee who may materially influence the applicant’s 24 conduct meets the standards of this chapter . 25 5. A license issued to a legal entity authorizes all 26 partners, officers, members, and designated employees to act as 27 viatical settlement providers or viatical settlement brokers, 28 as applicable, under the license, and all those persons 29 shall be named in the application and any supplements to the 30 application. 31 6. 5. Upon the filing of an application and the payment of 32 the license fee, the commissioner shall make an investigation 33 of investigate each applicant and issue a license if the 34 commissioner finds that the applicant complies with all of the 35 -4- LSB 1215XD (13) 88 ko/rn 4/ 10

S.F. _____ H.F. _____ following: 1 a. If a viatical settlement provider, has provided a 2 detailed plan of operation. 3 b. Is competent and trustworthy and intends to act in good 4 faith in the capacity involved by the license applied for. 5 c. Has a good business reputation and has had experience, 6 training, or education so as to be qualified in the business 7 for which the license is applied for. 8 d. If a legal entity, provides a certificate of good 9 standing from the state of its domicile. 10 e. d. If a viatical settlement provider or viatical 11 settlement broker, has provided an antifraud plan that meets 12 the requirements of pursuant to section 508E.15, subsection 7 . 13 7. 6. The commissioner shall not issue a license to a 14 nonresident applicant unless a written designation of an 15 agent for service of process is filed and maintained with the 16 commissioner or the applicant has filed with the commissioner 17 the applicant’s written irrevocable consent that any action 18 against the applicant may be commenced against the applicant by 19 service of process on the commissioner. If an applicant files 20 such consent, service of process made on the commissioner as 21 the agent for service of process shall be made as provided in 22 section 505.30 . 23 8. 7. A viatical settlement provider or viatical settlement 24 broker shall provide to the commissioner new or revised 25 information about officers, ten-percent-or-more stockholders, 26 partners, directors, members, or designated employees within 27 thirty days of the change. 28 9. 8. An individual licensed as a viatical settlement 29 broker shall complete on a triennial basis running concurrent 30 with the license term twenty credits of training related to 31 viatical settlements and viatical settlement transactions, as 32 required by the commissioner ; provided, however, that a life 33 insurance producer who is operating as a viatical settlement 34 broker pursuant to subsection 1 , paragraph “b” , shall not be 35 -5- LSB 1215XD (13) 88 ko/rn 5/ 10

S.F. _____ H.F. _____ subject to the requirements of this subsection . Any person 1 failing to meet the requirements of this subsection shall be 2 subject to the penalties imposed by the commissioner. 3 10. 9. Fees collected pursuant to this section shall be 4 deposited as provided in section 505.7 . 5 Sec. 6. Section 522B.5, subsection 1, unnumbered paragraph 6 1, Code 2019, is amended to read as follows: 7 A person applying for a resident insurance producer license 8 shall make application to the commissioner on the uniform 9 application , meet all requirements pursuant to section 522B.5A, 10 and declare under penalty of refusal, suspension, or revocation 11 of the license that the all statements made in the application 12 are true, correct, and complete to the best of the individual’s 13 knowledge and belief. Before approving the application, the 14 commissioner shall find all of the following: 15 Sec. 7. NEW SECTION . 522B.5A Criminal history check. 16 1. In determining eligibility for licensure, the 17 commissioner is authorized to require an applicant pursuant to 18 subsection 2 to provide to the commissioner the applicant’s 19 fingerprints and reasonable fees required to perform a 20 state criminal history check through the Iowa single contact 21 repository and a national criminal history check through 22 the federal bureau of investigation. By submitting such 23 fingerprints, the applicant authorizes the commissioner to do 24 all of the following: 25 a. Submit the applicant’s fingerprints to the department of 26 public safety for a state criminal history check and submission 27 to the federal bureau of investigation for the purpose of 28 conducting a national criminal history check. 29 b. Receive the results of the state and national criminal 30 history checks directly from the department of public safety 31 and the federal bureau of investigation. 32 2. The commissioner is authorized to require a state and 33 national criminal history check on each applicant that applies 34 for any of the following: 35 -6- LSB 1215XD (13) 88 ko/rn 6/ 10

S.F. _____ H.F. _____ a. An initial license in Iowa as a resident insurance 1 producer. 2 b. An initial license or an additional line of authority 3 under a nonresident insurance producer license if a state and 4 national criminal history check has not already been completed. 5 c. A renewal, reinstatement, or reissuance of a license if 6 a producer’s license has been revoked or suspended pursuant to 7 section 522B.11. 8 d. An initial license as a viatical settlement provider or 9 viatical settlement broker in this state. 10 3. The commissioner shall require an applicant pursuant 11 to subsection 2 to submit a full set of fingerprints and any 12 other required identifying information to the commissioner on a 13 form prescribed by the department of public safety. In lieu 14 of the department of public safety, the commissioner shall be 15 authorized to receive an applicant’s criminal history check 16 information, requested by the department of public safety 17 pursuant to this section, directly from the federal bureau of 18 investigation. 19 4. The commissioner may contract with a third-party vendor 20 or the department of public safety for the collection and 21 transmission of an applicant’s fingerprints for the purpose of 22 conducting a state and national criminal history check. The 23 commissioner may agree to reasonable fees to be charged by 24 the third-party vendor or the department of public safety and 25 may require such reasonable fees to be paid by the applicant 26 directly to the third-party vendor or the department of public 27 safety. 28 5. The commissioner shall apply security measures 29 consistent with the standards of the criminal justice 30 information services division of the federal bureau of 31 investigation for the storage of fingerprints and necessary 32 identifying information, and shall limit the use of such solely 33 to the purposes authorized in this section. 34 6. The results of a criminal history check conducted 35 -7- LSB 1215XD (13) 88 ko/rn 7/ 10

S.F. _____ H.F. _____ pursuant to this section shall not be considered a public 1 record pursuant to chapter 22. An applicant’s fingerprints and 2 any criminal history check information shall not be subject to 3 subpoena, other than a subpoena issued in a criminal action or 4 investigation, shall be confidential by law and privileged, and 5 shall not be subject to discovery or be admissible in evidence 6 in a private civil action. 7 Sec. 8. Section 522C.5, Code 2019, is amended to read as 8 follows: 9 522C.5 Application for license. 10 1. A person applying for a public adjuster license shall 11 make application on a uniform individual application or uniform 12 business entity application as prescribed by the commissioner 13 pursuant to rules adopted under chapter 17A . 14 2. In determining eligibility for licensure under this 15 chapter , the commissioner shall is authorized to require 16 a criminal history check pursuant to section 522B.5A for 17 each individual applying for a public adjuster license to 18 submit a full set of fingerprints with the application. The 19 commissioner shall also require and for each individual who 20 will be acting as a public adjuster of a business entity 21 applying for licensure under this chapter to submit a full 22 set of fingerprints for each individual who will be acting 23 as a public adjuster on behalf of the business entity . The 24 commissioner shall conduct a state and national criminal 25 history record check on each applicant. The commissioner is 26 authorized to submit fingerprints and any required fees to the 27 state department of public safety, the state attorney general, 28 and the federal bureau of investigation for the performance of 29 such criminal record checks. 30 a. The commissioner may contract for the collection, 31 transmission, and resubmission of fingerprints required under 32 this section and may contract for a reasonable fingerprinting 33 fee to be charged by the contractor for these services. Any 34 fees for the collection, transmission, and retention of 35 -8- LSB 1215XD (13) 88 ko/rn 8/ 10

S.F. _____ H.F. _____ fingerprints submitted pursuant to this subsection shall be 1 paid directly to the contractor by the applicant. 2 b. The commissioner may waive submission of fingerprints 3 by any person who has previously furnished fingerprints if 4 those fingerprints are on file with the central repository 5 of the national association of insurance commissioners, its 6 affiliates, or subsidiaries. 7 c. The commissioner may receive criminal history record 8 information concerning an applicant that was requested by the 9 state department of justice directly from the federal bureau 10 of investigation. 11 d. The commissioner may submit electronic fingerprint 12 records and necessary identifying information to the national 13 association of insurance commissioners, its affiliates, 14 or subsidiaries for permanent retention in a centralized 15 repository whose purpose is to provide state insurance 16 commissioners with access to fingerprint records in order to 17 perform criminal history record checks. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill relates to the insurance fraud bureau and criminal 22 history checks for licenses granted by the insurance division. 23 The bill clarifies that the insurance fraud bureau has the 24 authority to conduct investigations in all areas under the 25 jurisdiction of the insurance commissioner and also clarifies 26 the law enforcement authority of an insurance fraud bureau 27 investigator. 28 The bill authorizes the commissioner to require new 29 applicants licensed under the commissioner’s jurisdiction to 30 submit fingerprints. The bill does not apply to current Iowa 31 producers in good standing. 32 The bill provides that by submitting fingerprints an 33 applicant is authorizing the commissioner to submit such 34 fingerprints to the department of public safety for a state 35 -9- LSB 1215XD (13) 88 ko/rn 9/ 10

S.F. _____ H.F. _____ criminal history check and for submission to the federal bureau 1 of investigation for a national criminal history check. The 2 applicant is also authorizing the department of public safety 3 and the federal bureau of investigation to send the results of 4 the criminal history checks directly to the commissioner. The 5 bill also provides that the federal bureau of investigation may 6 send the criminal history results directly to the commissioner 7 rather than to the department of public safety. 8 The bill authorizes the commissioner to contract with a 9 third-party vendor or the department of public safety for the 10 collection and submission of applicants’ fingerprints. The 11 commissioner may agree to reasonable fees to be charged by the 12 vendor or by the department of public safety. 13 The commissioner is required to apply security measures for 14 the storage of fingerprints and must limit use of fingerprints 15 to purposes authorized in the bill. The bill provides that an 16 applicant’s criminal history check is not a public record under 17 Code chapter 22. An applicant’s fingerprints and criminal 18 history check are only subject to a subpoena issued in a 19 criminal action or investigation, shall be confidential by law 20 and privileged, and are not subject to discovery or admissible 21 in a private civil action. 22 The bill requires any person operating as either a viatical 23 settlement provider or viatical settlement broker to be 24 licensed and no longer allows an exception for a life insurance 25 producer licensed for at least one year as a resident producer 26 in this state, or the producer’s home state, to operate as 27 a viatical settlement broker. The bill no longer permits a 28 license to be issued to a legal entity, as is currently allowed 29 by law, to operate as either a viatical settlement provider or 30 viatical settlement broker. 31 -10- LSB 1215XD (13) 88 ko/rn 10/ 10