S.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 Insurance fraud bureau . 17 1. 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 2. The commissioner shall dedicate a minimum of two 28 insurance fraud bureau investigators to the investigation of 29 suspected workers’ compensation fraud. 30 Sec. 3. Section 507E.5, subsection 5, Code 2019, is amended 31 to read as follows: 32 5. An insurance fraud bureau investigator or other staff 33 member of the bureau is not subject to subpoena in a civil 34 action concerning any matter of which the bureau investigator 35 -1- LSB 2319XC (1) 88 ko/rn 1/ 11

S.F. _____ or other staff member has knowledge pursuant to a pending or 1 continuing investigation being conducted by the bureau pursuant 2 to this chapter . 3 Sec. 4. Section 507E.8, Code 2019, is amended to read as 4 follows: 5 507E.8 Law enforcement officer status authority . 6 1. Bureau investigators For purposes of an arrest resulting 7 from a criminal violation of any provision of the Code subject 8 to the jurisdiction of the commissioner established as a result 9 of an investigation pursuant to this chapter, an insurance 10 fraud bureau investigator shall have the power authority and 11 status of a law enforcement officers who by the nature of their 12 duties may be required to perform the duties of a peace officer 13 when making arrests for criminal violations established as a 14 result of their investigations pursuant to this chapter officer 15 pursuant to section 80B.3, subsection 3 . 16 2. The general laws applicable to arrests an arrest by a 17 law enforcement officers officer of the state also apply to 18 an insurance fraud bureau investigators investigator . Bureau 19 investigators An insurance fraud bureau investigator shall 20 have the power to execute arrest warrants and search warrants 21 for the same criminal violations , serve subpoenas issued for 22 the examination, investigation, and trial of all offenses 23 identified through their investigations the course of an 24 investigation conducted pursuant to this section , and arrest 25 upon probable cause without warrant a person found in the act 26 of committing a violation of the provisions a provision of this 27 chapter . 28 Sec. 5. Section 508E.3, Code 2019, is amended to read as 29 follows: 30 508E.3 License requirements. 31 1. a. A person shall not operate as a viatical settlement 32 provider or viatical settlement broker without first obtaining 33 a license from the commissioner of the state of residence of 34 the viator. 35 -2- LSB 2319XC (1) 88 ko/rn 2/ 11

S.F. _____ b. (1) A life insurance producer who has been duly licensed 1 as a resident insurance producer with a life line of authority 2 in this state or the life insurance producer’s home state for 3 at least one year immediately prior to operating as a viatical 4 settlement broker and is licensed as a nonresident producer in 5 this state shall be deemed to meet the licensing requirements 6 of this section and shall be permitted to operate as a viatical 7 settlement broker. 8 (2) Not later than thirty days from the first day of 9 operating as a viatical settlement broker, the life insurance 10 producer shall notify the commissioner that the life insurance 11 producer is acting as a viatical settlement broker on a form 12 prescribed by the commissioner, and shall pay any applicable 13 fee of up to one hundred dollars as provided by rules adopted 14 by the commissioner. The notification shall include an 15 acknowledgment by the life insurance producer that the life 16 insurance producer will operate as a viatical settlement broker 17 in accordance with this chapter . The notification shall also 18 include proof that the life insurance producer is covered by an 19 errors and omissions policy for an amount of not less than one 20 hundred thousand dollars per occurrence and not less than one 21 hundred thousand dollars total annual aggregate for all claims 22 during the policy period. 23 (3) b. The An insurer that issued the a policy being 24 viaticated shall not be responsible for any act or omission of 25 a viatical settlement broker or viatical settlement provider 26 arising out of or in connection with the viatical settlement 27 transaction, unless the insurer receives compensation for the 28 placement of a viatical settlement contract from the viatical 29 settlement provider or viatical settlement broker in connection 30 with the viatical settlement contract. 31 c. A person licensed as an attorney, certified public 32 accountant, or financial planner accredited by a nationally 33 recognized accreditation agency who is retained to represent 34 the a viator, whose compensation is not paid directly or 35 -3- LSB 2319XC (1) 88 ko/rn 3/ 11

S.F. _____ indirectly by the viatical settlement provider, may negotiate a 1 viatical settlement contracts contract on behalf of the viator 2 without having to obtain a license as a viatical settlement 3 broker. 4 2. An application for a viatical settlement provider 5 or viatical settlement broker license shall be made to the 6 commissioner by the applicant on a form prescribed by the 7 commissioner, and the application shall be accompanied by a 8 fee of not more than one hundred dollars as provided by rules 9 adopted by the commissioner. 10 3. The A viatical settlement provider or viatical 11 settlement broker license term shall be three years and the 12 license may be renewed upon payment of the a renewal fee of not 13 more than one hundred dollars as provided by rules adopted by 14 the commissioner. A failure to pay the fee by the renewal date 15 results shall result in expiration of the license. 16 4. An applicant shall provide information on forms 17 required by the commissioner and shall meet all requirements 18 pursuant to section 522B.5A if required by the commissioner . 19 The commissioner shall have the authority , at any time, to 20 require the an applicant to fully disclose the identity of 21 all stockholders, partners, officers, members, and employees , 22 and the . The commissioner may, in the exercise of the 23 commissioner’s discretion, refuse to issue a license in the 24 name of a legal entity to such applicant if not satisfied that 25 any officer, employee, stockholder, partner, or member thereof , 26 or employee who may materially influence the applicant’s 27 conduct meets the standards of this chapter . 28 5. A license issued to a legal entity authorizes all 29 partners, officers, members, and designated employees to act as 30 viatical settlement providers or viatical settlement brokers, 31 as applicable, under the license, and all those persons 32 shall be named in the application and any supplements to the 33 application. 34 6. 5. Upon the filing of an application and the payment of 35 -4- LSB 2319XC (1) 88 ko/rn 4/ 11

S.F. _____ the license fee, the commissioner shall make an investigation 1 of investigate each applicant and issue a license if the 2 commissioner finds that the applicant complies with all of the 3 following: 4 a. If a viatical settlement provider, has provided a 5 detailed plan of operation. 6 b. Is competent and trustworthy and intends to act in good 7 faith in the capacity involved by the license applied for. 8 c. Has a good business reputation and has had experience, 9 training, or education so as to be qualified in the business 10 for which the license is applied for. 11 d. If a legal entity, provides a certificate of good 12 standing from the state of its domicile. 13 e. d. If a viatical settlement provider or viatical 14 settlement broker, has provided an antifraud plan that meets 15 the requirements of pursuant to section 508E.15, subsection 7 . 16 7. 6. The commissioner shall not issue a license to a 17 nonresident applicant unless a written designation of an 18 agent for service of process is filed and maintained with the 19 commissioner or the applicant has filed with the commissioner 20 the applicant’s written irrevocable consent that any action 21 against the applicant may be commenced against the applicant by 22 service of process on the commissioner. If an applicant files 23 such consent, service of process made on the commissioner as 24 the agent for service of process shall be made as provided in 25 section 505.30 . 26 8. 7. A viatical settlement provider or viatical settlement 27 broker shall provide to the commissioner new or revised 28 information about officers, ten-percent-or-more stockholders, 29 partners, directors, members, or designated employees within 30 thirty days of the change. 31 9. 8. An individual licensed as a viatical settlement 32 broker shall complete on a triennial basis running concurrent 33 with the license term twenty credits of training related to 34 viatical settlements and viatical settlement transactions, as 35 -5- LSB 2319XC (1) 88 ko/rn 5/ 11

S.F. _____ required by the commissioner ; provided, however, that a life 1 insurance producer who is operating as a viatical settlement 2 broker pursuant to subsection 1 , paragraph “b” , shall not be 3 subject to the requirements of this subsection . Any person 4 failing to meet the requirements of this subsection shall be 5 subject to the penalties imposed by the commissioner. 6 10. 9. Fees collected pursuant to this section shall be 7 deposited as provided in section 505.7 . 8 Sec. 6. Section 522B.5, subsection 1, unnumbered paragraph 9 1, Code 2019, is amended to read as follows: 10 A person applying for a resident insurance producer license 11 shall make application to the commissioner on the uniform 12 application , meet all requirements pursuant to section 522B.5A, 13 and declare under penalty of refusal, suspension, or revocation 14 of the license that the all statements made in the application 15 are true, correct, and complete to the best of the individual’s 16 knowledge and belief. Before approving the application, the 17 commissioner shall find all of the following: 18 Sec. 7. NEW SECTION . 522B.5A Criminal history check. 19 1. In determining eligibility for licensure, the 20 commissioner is authorized to require an applicant pursuant to 21 subsection 2 to provide to the commissioner the applicant’s 22 fingerprints and reasonable fees required to perform a 23 state criminal history check through the Iowa single contact 24 repository and a national criminal history check through 25 the federal bureau of investigation. By submitting such 26 fingerprints, the applicant authorizes the commissioner to do 27 all of the following: 28 a. Submit the applicant’s fingerprints to the department of 29 public safety for a state criminal history check and submission 30 to the federal bureau of investigation for the purpose of 31 conducting a national criminal history check. 32 b. Receive the results of the state and national criminal 33 history checks directly from the department of public safety 34 and the federal bureau of investigation. 35 -6- LSB 2319XC (1) 88 ko/rn 6/ 11

S.F. _____ 2. The commissioner is authorized to require a state and 1 national criminal history check on each applicant that applies 2 for any of the following: 3 a. An initial license in Iowa as a resident insurance 4 producer. 5 b. An initial license or an additional line of authority 6 under a nonresident insurance producer license if a state and 7 national criminal history check has not already been completed. 8 c. A renewal, reinstatement, or reissuance of a license if 9 a producer’s license has been revoked or suspended pursuant to 10 section 522B.11. 11 d. An initial license as a viatical settlement provider or 12 viatical settlement broker in this state. 13 3. The commissioner shall require an applicant pursuant 14 to subsection 2 to submit a full set of fingerprints and any 15 other required identifying information to the commissioner on a 16 form prescribed by the department of public safety. In lieu 17 of the department of public safety, the commissioner shall be 18 authorized to receive an applicant’s criminal history check 19 information, requested by the department of public safety 20 pursuant to this section, directly from the federal bureau of 21 investigation. 22 4. The commissioner may contract with a third-party vendor 23 or the department of public safety for the collection and 24 transmission of an applicant’s fingerprints for the purpose of 25 conducting a state and national criminal history check. The 26 commissioner may agree to reasonable fees to be charged by 27 the third-party vendor or the department of public safety and 28 may require such reasonable fees to be paid by the applicant 29 directly to the third-party vendor or the department of public 30 safety. 31 5. The commissioner shall apply security measures 32 consistent with the standards of the criminal justice 33 information services division of the federal bureau of 34 investigation for the storage of fingerprints and necessary 35 -7- LSB 2319XC (1) 88 ko/rn 7/ 11

S.F. _____ identifying information, and shall limit the use of such solely 1 to the purposes authorized in this section. 2 6. The results of a criminal history check conducted 3 pursuant to this section shall not be considered a public 4 record pursuant to chapter 22. An applicant’s fingerprints and 5 any criminal history check information shall not be subject to 6 subpoena, other than a subpoena issued in a criminal action or 7 investigation, shall be confidential by law and privileged, and 8 shall not be subject to discovery or be admissible in evidence 9 in a private civil action. 10 Sec. 8. Section 522C.5, Code 2019, is amended to read as 11 follows: 12 522C.5 Application for license. 13 1. A person applying for a public adjuster license shall 14 make application on a uniform individual application or uniform 15 business entity application as prescribed by the commissioner 16 pursuant to rules adopted under chapter 17A . 17 2. In determining eligibility for licensure under this 18 chapter , the commissioner shall is authorized to require 19 a criminal history check pursuant to section 522B.5A for 20 each individual applying for a public adjuster license to 21 submit a full set of fingerprints with the application. The 22 commissioner shall also require and for each individual who 23 will be acting as a public adjuster of a business entity 24 applying for licensure under this chapter to submit a full 25 set of fingerprints for each individual who will be acting 26 as a public adjuster on behalf of the business entity . The 27 commissioner shall conduct a state and national criminal 28 history record check on each applicant. The commissioner is 29 authorized to submit fingerprints and any required fees to the 30 state department of public safety, the state attorney general, 31 and the federal bureau of investigation for the performance of 32 such criminal record checks. 33 a. The commissioner may contract for the collection, 34 transmission, and resubmission of fingerprints required under 35 -8- LSB 2319XC (1) 88 ko/rn 8/ 11

S.F. _____ this section and may contract for a reasonable fingerprinting 1 fee to be charged by the contractor for these services. Any 2 fees for the collection, transmission, and retention of 3 fingerprints submitted pursuant to this subsection shall be 4 paid directly to the contractor by the applicant. 5 b. The commissioner may waive submission of fingerprints 6 by any person who has previously furnished fingerprints if 7 those fingerprints are on file with the central repository 8 of the national association of insurance commissioners, its 9 affiliates, or subsidiaries. 10 c. The commissioner may receive criminal history record 11 information concerning an applicant that was requested by the 12 state department of justice directly from the federal bureau 13 of investigation. 14 d. The commissioner may submit electronic fingerprint 15 records and necessary identifying information to the national 16 association of insurance commissioners, its affiliates, 17 or subsidiaries for permanent retention in a centralized 18 repository whose purpose is to provide state insurance 19 commissioners with access to fingerprint records in order to 20 perform criminal history record checks. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill relates to the insurance fraud bureau and criminal 25 history checks for licenses granted by the insurance division. 26 The bill clarifies that the insurance fraud bureau has the 27 authority to conduct investigations in all areas under the 28 jurisdiction of the insurance commissioner and also clarifies 29 the law enforcement authority of an insurance fraud bureau 30 investigator. The bill requires the commissioner to dedicate 31 a minimum of two insurance fraud bureau investigators to the 32 investigation of suspected workers’ compensation fraud. 33 The bill authorizes the commissioner to require new 34 applicants licensed under the commissioner’s jurisdiction to 35 -9- LSB 2319XC (1) 88 ko/rn 9/ 11

S.F. _____ submit fingerprints. The bill does not apply to current Iowa 1 producers in good standing. 2 The bill provides that by submitting fingerprints an 3 applicant is authorizing the commissioner to submit such 4 fingerprints to the department of public safety for a state 5 criminal history check and for submission to the federal bureau 6 of investigation for a national criminal history check. The 7 applicant is also authorizing the department of public safety 8 and the federal bureau of investigation to send the results of 9 the criminal history checks directly to the commissioner. The 10 bill also provides that the federal bureau of investigation may 11 send the criminal history results directly to the commissioner 12 rather than to the department of public safety. 13 The bill authorizes the commissioner to contract with a 14 third-party vendor or the department of public safety for the 15 collection and submission of applicants’ fingerprints. The 16 commissioner may agree to reasonable fees to be charged by the 17 vendor or by the department of public safety. 18 The commissioner is required to apply security measures for 19 the storage of fingerprints and must limit use of fingerprints 20 to purposes authorized in the bill. The bill provides that an 21 applicant’s criminal history check is not a public record under 22 Code chapter 22. An applicant’s fingerprints and criminal 23 history check are only subject to a subpoena issued in a 24 criminal action or investigation, shall be confidential by law 25 and privileged, and are not subject to discovery or admissible 26 in a private civil action. 27 The bill requires any person operating as either a viatical 28 settlement provider or viatical settlement broker to be 29 licensed and no longer allows an exception for a life insurance 30 producer licensed for at least one year as a resident producer 31 in this state, or the producer’s home state, to operate as 32 a viatical settlement broker. The bill no longer permits a 33 license to be issued to a legal entity, as is currently allowed 34 by law, to operate as either a viatical settlement provider or 35 -10- LSB 2319XC (1) 88 ko/rn 10/ 11