House File 838 - Introduced HOUSE FILE 838 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 502) (SUCCESSOR TO HSB 119) A BILL FOR An Act relating to various matters under the purview of 1 the insurance division of the department of commerce, 2 providing fees, making an appropriation, and resolving 3 inconsistencies. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1333HZ (1) 89 ko/rn
H.F. 838 DIVISION I 1 UNIFORM SECURITIES 2 Section 1. Section 502.304A, subsection 3, paragraph g, 3 Code 2021, is amended to read as follows: 4 g. The issuer must pay to the administrator a fee of one 5 hundred dollars established by the administrator by rule and 6 is not required to pay the filing fee set forth in section 7 502.305, subsection 2 . 8 Sec. 2. Section 502.304A, subsection 5, Code 2021, is 9 amended to read as follows: 10 5. Agent registration. In connection with an offering 11 registered under this section , a person may be registered as 12 an agent of the issuer under section 502.402 by the filing of 13 an application by the issuer with the administrator for the 14 registration of the person as an agent of the issuer and the 15 paying of a fee of ten dollars established by the administrator 16 by rule . Notwithstanding any other provision of this chapter , 17 the registration of the agent shall be effective until 18 withdrawn by the issuer or until the securities registered 19 pursuant to the registration statement have all been sold, 20 whichever occurs first. The registration of an agent shall 21 become effective when ordered by the administrator or on the 22 fifth business day after the agent’s application has been 23 filed with the administrator, whichever occurs first, and the 24 administrator shall not impose further conditions upon the 25 registration of the agent. However, the administrator may 26 deny, revoke, suspend, or withdraw the registration of the 27 agent at any time as provided in section 502.412 . An agent 28 registered solely pursuant to this section is entitled to sell 29 only securities registered under this section . 30 Sec. 3. Section 502.321G, Code 2021, is amended to read as 31 follows: 32 502.321G Fees. 33 The administrator shall charge a nonrefundable filing fee of 34 two hundred fifty dollars established by the administrator by 35 -1- LSB 1333HZ (1) 89 ko/rn 1/ 49
H.F. 838 rule for a registration statement filed by an offeror. The fee 1 shall be deposited as provided in section 505.7 . 2 Sec. 4. Section 502.410, Code 2021, is amended to read as 3 follows: 4 502.410 Filing fees. 5 1. Broker-dealers. A person shall pay a fee of two hundred 6 dollars established by the administrator by rule when initially 7 filing an application for registration as a broker-dealer 8 and a fee of two hundred dollars when filing a renewal of 9 registration as a broker-dealer. If the filing results in a 10 denial or withdrawal, the administrator shall retain the fee. 11 2. Agents. The fee for an individual is forty dollars 12 when filing an application for registration as an agent, a 13 fee of forty dollars when filing a renewal of registration 14 as an agent, and a fee of forty dollars when or filing for a 15 change of registration as an agent shall be established by the 16 administrator by rule . Of each forty-dollar fee collected, ten 17 dollars twenty-five percent is appropriated to the securities 18 investor education and financial literacy training fund 19 established under section 502.601, subsection 5 . If the filing 20 results in a denial or withdrawal, the administrator shall 21 retain the fee. 22 3. Investment advisers. A person shall pay a fee of one 23 hundred dollars established by the administrator by rule when 24 filing an application for registration as an investment adviser 25 and a fee of one hundred dollars when filing a renewal of 26 registration as an investment adviser. If the filing results 27 in a denial or withdrawal, the administrator shall retain the 28 fee. 29 4. Investment adviser representatives. 30 a. The fee for an individual is thirty dollars when filing 31 an application for registration as an investment adviser 32 representative, a fee of thirty dollars when filing a renewal 33 of registration as an investment adviser representative, and a 34 fee of thirty dollars or when filing a change of registration 35 -2- LSB 1333HZ (1) 89 ko/rn 2/ 49
H.F. 838 as an investment adviser representative shall be the amount 1 established by the administrator by rule . If the filing 2 results in a denial or withdrawal, the administrator shall 3 retain the fee. 4 b. However, an An investment adviser representative is shall 5 not be required to pay a filing fee if the investment adviser 6 is a sole proprietorship or the substantial equivalent , and the 7 investment adviser representative is the same individual as the 8 investment adviser. 9 5. Federal covered investment advisers. A federal covered 10 investment adviser required to file a notice under section 11 502.405 shall pay an initial fee of one hundred dollars and 12 an annual notice fee of one hundred dollars in an amount 13 established by the administrator by rule . 14 6. Payment. A person required to pay a filing or notice 15 fee under this section may transmit the fee through or to a 16 designee as a permitted by the administrator by rule or by 17 order provides issued by the administrator under this chapter . 18 7. Deposit of fees. Except as otherwise provided in 19 subsection 2 , fees collected under this section shall be 20 deposited as provided in section 505.7 . 21 DIVISION II 22 INSURANCE 23 Sec. 5. Section 505.30, subsection 2, Code 2021, is amended 24 to read as follows: 25 2. The commissioner may collect a reasonable fee , 26 established by the commissioner by rule, each time service of 27 process is made on the commissioner as set forth in subsection 28 1 or as otherwise allowed by law. A fee collected by the 29 commissioner under this subsection shall be used and is 30 appropriated to the insurance division to offset the costs 31 of the commissioner acting as agent or attorney for service 32 of process. The party to a proceeding requesting service of 33 process is entitled to recover the fee paid pursuant to this 34 subsection and any rules adopted under this section as costs if 35 -3- LSB 1333HZ (1) 89 ko/rn 3/ 49
H.F. 838 the party prevails in the proceeding. 1 Sec. 6. Section 507A.4, subsection 9, Code 2021, is amended 2 by striking the subsection and inserting in lieu thereof the 3 following: 4 9. Transactions involving a multiple employer welfare 5 arrangement as defined in section 3 of the federal Employee 6 Retirement Income Security Act of 1974, 29 U.S.C. §1002, 7 paragraph 40, or a multiple employer welfare arrangement formed 8 as an association health plan pursuant to 29 C.F.R. pt. 2510 9 that complies with chapter 513D. 10 Sec. 7. Section 507B.7, Code 2021, is amended to read as 11 follows: 12 507B.7 Cease and desist orders Orders and penalties. 13 1. If, after hearing, the commissioner determines that a 14 person has engaged in an unfair method of competition or an 15 unfair or deceptive act or practice, the commissioner shall 16 reduce the findings to writing and shall issue and cause to 17 be served upon the person charged with the violation a copy 18 of such findings, an order requiring such person to cease 19 and desist from engaging in such method of competition, act, 20 or practice, and the commissioner may at the commissioner’s 21 discretion order any one or more of the following: 22 a. Payment of a civil penalty of not more than one thousand 23 dollars for each act or violation of this subtitle, but not 24 to exceed an aggregate of ten thousand dollars, unless the 25 person knew or reasonably should have known the person was in 26 violation of this subtitle, in which case the penalty shall be 27 not more than five thousand dollars for each act or violation, 28 but not to exceed an aggregate penalty of fifty thousand 29 dollars in any one six-month period. If the commissioner finds 30 that a violation of this subtitle was directed, encouraged, 31 condoned, ignored, or ratified by the employer of the person or 32 by an insurer, the commissioner shall also assess a penalty to 33 the employer or insurer. 34 b. Suspension or revocation of the license of a person as 35 -4- LSB 1333HZ (1) 89 ko/rn 4/ 49
H.F. 838 defined in section 507B.2, subsection 1 , if the person knew or 1 reasonably should have known the person was in violation of 2 this subtitle. 3 c. Payment of interest at the rate of ten percent per 4 annum if the commissioner finds that the insurer failed to 5 pay interest as required under section 507B.4, subsection 3 , 6 paragraph “p” . 7 2. Until the expiration of the time allowed under section 8 507B.8 for filing a petition for review if no such petition has 9 been duly filed within such time, or, if a petition for review 10 has been filed within such time, then until the transcript of 11 the record in the proceeding has been filed in the district 12 court, the commissioner may at any time, upon such notice and 13 in such manner as the commissioner may deem proper, modify 14 or set aside in whole or in part any order issued by the 15 commissioner under this section . 16 3. After the expiration of the time allowed for filing 17 such a petition for review if no such petition has been duly 18 filed within such time, the commissioner may at any time, after 19 notice and opportunity for hearing, reopen and alter, modify, 20 or set aside, in whole or in part, any order issued by the 21 commissioner under this section , whenever in the commissioner’s 22 opinion conditions of fact or of law have so changed as 23 to require such action, or if the public interest shall so 24 require. 25 4. Any person who violates a cease and desist an order 26 of the commissioner, and while such order is in effect, may, 27 after notice and hearing and upon order of the commissioner, 28 be subject at the discretion of the commissioner to any one or 29 more of the following: 30 a. A monetary penalty of not more than ten thousand dollars 31 for each and every act or violation. A penalty collected 32 under this lettered paragraph shall be deposited as provided 33 in section 505.7 . 34 b. Suspension or revocation of such person’s license. 35 -5- LSB 1333HZ (1) 89 ko/rn 5/ 49
H.F. 838 Sec. 8. Section 507E.2A, subsection 2, Code 2021, is amended 1 to read as follows: 2 2. “Insurer” includes an insurer means any corporation, 3 association, partnership, or individual engaged in the business 4 of insurance, including but not limited to a corporation, 5 association, partnership, or individual that issues a policy 6 of workers’ compensation, a self-insured business for purposes 7 of workers’ compensation liability, or a group or self-insured 8 plan as described in section 87.4 . “Insurer” does not include 9 a person required to be licensed to sell, solicit, or negotiate 10 insurance pursuant to chapter 522B. 11 Sec. 9. Section 507E.8, Code 2021, is amended to read as 12 follows: 13 507E.8 Law enforcement authority. 14 1. An individual employed by the division and designated as 15 a peace officer shall be considered a law enforcement officer 16 as that term is defined in section 80B.3, and shall exercise 17 the powers of a law enforcement officer as follows: 18 a. For purposes of an arrest resulting from a criminal 19 violation of any provision of the Code subject to the 20 jurisdiction of the commissioner established as a result of 21 an investigation pursuant to this chapter , an insurance fraud 22 bureau investigator shall have the authority and status of a 23 law enforcement officer pursuant to section 80B.3, subsection 24 3 . 25 b. While conducting an investigation or engaged in an 26 assignment authorized by this chapter or ordered by the 27 commissioner. 28 c. To protect life if a public offense is committed in the 29 presence of the peace officer. 30 d. While providing assistance to a law enforcement agency or 31 another law enforcement officer. 32 e. While providing assistance at the request of a member of 33 the public. 34 2. The laws Laws applicable to an arrest of an individual 35 -6- LSB 1333HZ (1) 89 ko/rn 6/ 49
H.F. 838 by a law enforcement officer of the state shall apply to an 1 insurance fraud bureau investigator individual employed by 2 the division and designated as a peace officer . An insurance 3 fraud bureau investigator individual employed by the division 4 and designated as a peace officer shall have the power to 5 execute arrest warrants and search warrants, serve subpoenas 6 issued for the examination, investigation, and trial of all 7 offenses identified through the course of an investigation 8 conducted pursuant to this section , and arrest upon probable 9 cause without warrant a person found in the act of committing 10 a violation of a provision of this chapter or a law of this 11 state . 12 Sec. 10. Section 508E.2, subsection 14, Code 2021, is 13 amended to read as follows: 14 14. “Viatical settlement broker” means a person, including 15 a life insurance producer as provided for in section 508E.3 , 16 who, working exclusively on behalf of a viator and for a fee, 17 commission, or other valuable consideration, offers or attempts 18 to negotiate viatical settlement contracts between a viator 19 and one or more viatical settlement providers or one or more 20 viatical settlement brokers. Notwithstanding the manner in 21 which the viatical settlement broker is compensated, a viatical 22 settlement broker is deemed to represent only the viator, 23 and not the insurer or the viatical settlement provider, and 24 owes a fiduciary duty to the viator to act according to the 25 viator’s instructions and in the best interest of the viator. 26 “Viatical settlement broker” does not include an attorney, 27 certified public accountant, or a financial planner accredited 28 by a nationally recognized accreditation agency who is retained 29 to represent the viator and whose compensation is not paid 30 directly or indirectly by the viatical settlement provider or 31 purchaser. 32 Sec. 11. Section 508E.3, subsections 2 and 3, Code 2021, are 33 amended to read as follows: 34 2. An application for a viatical settlement provider 35 -7- LSB 1333HZ (1) 89 ko/rn 7/ 49
H.F. 838 or viatical settlement broker license shall be made to the 1 commissioner by the applicant on a form prescribed by the 2 commissioner, and the application shall be accompanied by a 3 fee of not more than one hundred dollars as provided by rules 4 adopted by the commissioner. 5 3. A viatical settlement provider or viatical settlement 6 broker license term shall be three years and the license 7 may be renewed upon payment of a renewal fee of not more 8 than one hundred dollars as provided by rules adopted by the 9 commissioner. A failure to pay the fee by the renewal date 10 shall result in expiration of the license. 11 Sec. 12. Section 509.1, subsection 9, Code 2021, is amended 12 to read as follows: 13 9. A policy of group health insurance coverage issued to an 14 associated health plan a multiple employer welfare arrangement 15 pursuant to section 513D.1 chapter 513D that is subject to 16 regulation by the commissioner. 17 Sec. 13. Section 509.19, subsection 2, paragraph d, Code 18 2021, is amended to read as follows: 19 d. A multiple employer welfare arrangement, as defined 20 in section 3 of the federal Employee Retirement Income 21 Security Act of 1974, 29 U.S.C. §1002 (40) , paragraph 40, 22 or a multiple employer welfare arrangement formed as an 23 association health plan pursuant to 29 C.F.R. pt. 2510 , 24 that meets the requirements of section 507A.4, subsection 9 , 25 paragraph “a” chapter 513D . 26 Sec. 14. Section 509A.15, subsection 1, paragraph a, 27 unnumbered paragraph 1, Code 2021, is amended to read as 28 follows: 29 Within ninety calendar days following the end of a fiscal 30 year, the governing body of a self-insurance plan of a 31 political subdivision or a school corporation shall file with 32 the commissioner of insurance a certificate of compliance, 33 actuarial opinion, and an annual financial report. The 34 filing shall be accompanied by a fee of one hundred dollars 35 -8- LSB 1333HZ (1) 89 ko/rn 8/ 49
H.F. 838 established by the commissioner by rule . A penalty of fifteen 1 dollars per day late fee established by the commissioner 2 by rule shall be assessed for failure to comply with the 3 ninety-day ninety-calendar-day filing requirement, except that 4 the commissioner may waive the penalty late fee upon a showing 5 that special circumstances exist which justify the waiver. The 6 certificate shall be signed and dated by the appropriate public 7 official representing the governing body, and shall certify the 8 following: 9 Sec. 15. Section 510.21, Code 2021, is amended to read as 10 follows: 11 510.21 Certificate of registration required Certificates —— 12 registration and renewal . 13 A person shall not act as or represent oneself to be a 14 third-party administrator in this state, other than an adjuster 15 licensed in this state for the kinds of business for which 16 the person is acting as a third-party administrator, unless 17 the person holds a current certificate of registration as 18 a third-party administrator issued by the commissioner of 19 insurance. A certificate of registration as a third-party 20 administrator is renewable shall be renewed every three 21 years. Failure to hold a current certificate subjects the 22 of registration shall subject a third-party administrator to 23 the sanctions set out in section 507B.7 . The An application 24 for a certificate of registration shall be accompanied by a 25 filing fee as established by the commissioner by rule. A 26 certificate of registration shall be issued by the commissioner 27 to a third-party administrator unless the commissioner , 28 after due notice and hearing, determines that the third-party 29 administrator is not competent, trustworthy, financially 30 responsible, or of good personal and business reputation, or 31 has had a previous an application for an insurance license 32 denied for cause within the preceding five years. 33 An application for registration shall be accompanied by a 34 filing fee of one hundred dollars. After notice and hearing, 35 -9- LSB 1333HZ (1) 89 ko/rn 9/ 49
H.F. 838 the commissioner may impose any or all of the sanctions set out 1 in section 507B.7 , upon finding that either the third-party 2 administrator violated any of the requirements of sections 3 510.12 through 510.20 and this section , or the third-party 4 administrator is not competent, trustworthy, financially 5 responsible, or of good personal and business reputation. 6 If the commissioner denies an application for registration 7 or renewal, a written notice that specifies the reasons for 8 the denial or nonrenewal shall be provided to the applicant. 9 Pursuant to chapter 17A, upon the applicant’s request, the 10 commissioner shall grant the applicant a hearing on the denial 11 or nonrenewal. 12 Sec. 16. Section 510.23, Code 2021, is amended by striking 13 the section and inserting in lieu thereof the following: 14 510.23 Violations and penalties. 15 1. If, after hearing, the commissioner determines that 16 a third-party administrator has violated this chapter, or 17 chapter 507B, the commissioner may order any one or more of the 18 sanctions or penalties set out in section 507B.7. 19 2. If, after hearing, the commissioner determines that a 20 person has aided and abetted a third-party administrator in 21 commission of a violation of this chapter, or chapter 507B, 22 the commissioner may order any one or more of the sanctions or 23 penalties set out in section 507B.7. 24 3. If, after hearing, the commissioner determines that 25 a third-party administrator is not competent, trustworthy, 26 financially responsible, or of good personal and business 27 reputation, the commissioner may order any one or more of the 28 sanctions and penalties set out in section 507B.7. 29 Sec. 17. Section 511.24, Code 2021, is amended to read as 30 follows: 31 511.24 Fees from domestic Domestic and foreign companies —— 32 fees . 33 When not otherwise provided, a foreign or domestic life 34 insurance company doing business in this state shall pay to the 35 -10- LSB 1333HZ (1) 89 ko/rn 10/ 49
H.F. 838 commissioner of insurance the following fees a fee, established 1 by the commissioner by rule, for all of the following : 2 1. For filing an application to do business, or an 3 application to renew a certificate of authority , fifty dollars . 4 2. For issuing a certificate of authority to do business in 5 this state, or for renewing a certificate , fifty dollars . 6 3. For filing amended articles of incorporation , fifty 7 dollars . 8 4. For issuing an amended certificate of authority , 9 twenty-five dollars . 10 5. For affixing the official seal to any paper filed with 11 the division , ten dollars . 12 Sec. 18. Section 512B.24, Code 2021, is amended to read as 13 follows: 14 512B.24 Reports Annual statement . 15 Reports shall be filed in accordance with this section . 16 1. A society transacting business in this state shall , on or 17 before March 1 annually , unless for cause shown the time has 18 been extended by the commissioner, shall annually file with the 19 commissioner a true statement of its the society’s financial 20 condition, transactions, and affairs for the preceding calendar 21 year and shall pay a fee of fifty dollars established by the 22 commissioner by rule . The statement may be in general form and 23 content as approved by the national association of insurance 24 commissioners for fraternal benefit societies and shall be 25 supplemented by additional information as adopted by rule of 26 the commissioner. 27 2. As part of the a society’s annual statement, a the 28 society shall, on or before March 1, file with the commissioner 29 of insurance a valuation of its the society’s certificates 30 in force on the last preceding December 31. However, the 31 commissioner may, for cause shown, extend the time for filing 32 the valuation for not more than two consecutive calendar 33 months. The valuation shall be done completed in accordance 34 compliance with the standards specified in section 512B.23 . 35 -11- LSB 1333HZ (1) 89 ko/rn 11/ 49
H.F. 838 The valuation and underlying data shall be certified by a 1 qualified actuary or, at the expense of the society, verified 2 by the actuary of the department of insurance of the state of 3 domicile of the society. 4 3. A society failing to file the society’s annual statement 5 in the form and within the time provided by compliance with 6 this section shall forfeit one hundred dollars for each day 7 during which the default continues, and, upon notice by the 8 commissioner to that effect , the society’s authority to do 9 business in this state shall cease while during the duration of 10 the default continues . 11 Sec. 19. Section 512B.25, Code 2021, is amended to read as 12 follows: 13 512B.25 Annual license —— renewal. 14 The authority of a society to transact business in this 15 state may be renewed annually. A society’s license terminates 16 to transact business in this state shall terminate on the 17 first day of June following the issuance or the renewal of 18 the society’s license . A society shall submit annually on 19 or before March 1 a completed application for renewal of its 20 license. For each license or renewal the society shall pay 21 the commissioner a fee of fifty dollars established by the 22 commissioner by rule . A society that fails to timely file an 23 application for renewal shall pay an administrative penalty 24 of five hundred dollars to the treasurer of state for deposit 25 as provided in section 505.7 a late fee as established by the 26 commissioner by rule . A duly certified copy or duplicate 27 of the a society’s license is prima facie evidence that the 28 licensee is a fraternal benefit society within the meaning of 29 this chapter . 30 Sec. 20. Section 513D.1, Code 2021, is amended by striking 31 the section and inserting in lieu thereof the following: 32 513D.1 Multiple employer welfare arrangements and association 33 health plans. 34 1. As used in this chapter, unless the context otherwise 35 -12- LSB 1333HZ (1) 89 ko/rn 12/ 49
H.F. 838 requires: 1 a. “Association health plan” or “AHP” means a multiple 2 employer welfare arrangement formed as an association health 3 plan pursuant to 29 C.F.R. pt. 2510. 4 b. “Commissioner” means the commissioner of insurance. 5 c. “Multiple employer welfare arrangement” or “MEWA” means a 6 multiple employer welfare arrangement as defined in section 3 7 of the federal Employee Retirement Income Security Act of 1974, 8 29 U.S.C. §1002, paragraph 40. 9 2. An AHP or MEWA that offers a plan to, or maintains a 10 group health plan for, any resident of this state shall be 11 subject to the jurisdiction of the commissioner and shall 12 comply with all of the following requirements: 13 a. The AHP or MEWA must be administered by an insurer 14 authorized to do the business of insurance in this state or 15 an authorized third-party administrator that holds a current 16 certificate of registration pursuant to section 510.21. 17 b. The AHP or MEWA must be established by a trade, 18 industry, or professional association of employers that has a 19 constitution or bylaws, is organized and maintained in good 20 faith, and has membership stability as defined by rules adopted 21 by the commissioner. 22 c. The AHP or MEWA must register with the commissioner and 23 obtain and maintain a certificate of registration issued by the 24 commissioner. 25 d. The AHP or MEWA shall comply with all rules and solvency 26 standards established by rules adopted by the commissioner. 27 3. An AHP or MEWA that does not meet the solvency standards 28 pursuant to subsection 2, paragraph “d” , shall be subject to 29 chapter 507C. 30 4. An AHP or MEWA that meets all of the requirements of 31 subsection 2 shall not be considered any of the following: 32 a. An insurance company or association of whatever kind or 33 character under section 432.1. 34 b. A member of the Iowa individual health benefit 35 -13- LSB 1333HZ (1) 89 ko/rn 13/ 49
H.F. 838 reinsurance association pursuant to section 513C.10, subsection 1 1. 2 c. A member insurer of the Iowa life and health insurance 3 guaranty association pursuant to section 508C.5. 4 5. An AHP or MEWA that is registered with the commissioner 5 pursuant to subsection 2, paragraph “c” , shall annually file 6 with the commissioner on or before March 1 a copy of the report 7 required to be filed by the AHP or MEWA with the United States 8 department of labor pursuant to 29 C.F.R. §2520.101-2. 9 6. An AHP or MEWA that is registered with the commissioner 10 pursuant to subsection 2, paragraph “c” , shall annually file 11 with the commissioner a report on or before March 1 for the 12 preceding calendar year. The annual report shall contain the 13 information and be in a form and manner as prescribed by the 14 commissioner. 15 7. A foreign or domestic AHP or MEWA doing business in the 16 state shall pay fees as prescribed by the commissioner unless 17 otherwise provided by law. 18 8. A MEWA that is recognized as tax-exempt under Internal 19 Revenue Code section 501(c)(9) and that is registered with the 20 commissioner prior to January 1, 2018, shall not be considered 21 an AHP unless the MEWA affirmatively elects to be treated as 22 an AHP. 23 Sec. 21. Section 513D.2, subsection 1, Code 2021, is amended 24 to read as follows: 25 1. The commissioner of insurance shall adopt rules , as 26 necessary , pursuant to chapter 17A to administer this chapter . 27 Sec. 22. Section 514G.103, subsection 10, Code 2021, 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. 23. Section 514G.110, subsections 4, 5, 6, 7, 8, and 9, 33 Code 2021, are amended to read as follows: 34 4. Qualifications of independent review entities 35 -14- LSB 1333HZ (1) 89 ko/rn 14/ 49
H.F. 838 organizations . The commissioner shall maintain a list of 1 qualified independent review entities organizations that are 2 certified by the commissioner. Independent review entities 3 organizations shall be recertified by the commissioner every 4 two years in order to remain on the list. In order to be 5 certified, an independent review entity organization shall meet 6 all of the following criteria: 7 a. Have on staff, or contract with, a qualified, licensed 8 health care professional in an appropriate field for 9 determining an insured’s functional or cognitive impairment who 10 can conduct an independent review. 11 (1) In order to be qualified, a licensed health care 12 professional who is a physician shall hold a current 13 certification by a recognized American medical specialty 14 board in a specialty appropriate for determining an insured’s 15 functional or cognitive impairment. 16 (2) In order to be qualified, a licensed health care 17 professional who is not a physician shall hold a current 18 certification in the specialty in which that person is 19 licensed, by a recognized American specialty board in a 20 specialty appropriate for determining an insured’s functional 21 or cognitive impairment. 22 b. Ensure that any licensed health care professional who 23 conducts an independent review has no history of disciplinary 24 actions or sanctions, including but not limited to the loss 25 of staff privileges or any participation restrictions taken 26 or pending by any hospital or state or federal government 27 regulatory agency. 28 c. Ensure that the independent review entity organization 29 or any of its employees, agents, or licensed health care 30 professionals utilized does not receive compensation of any 31 type that is dependent on the outcome of a review. 32 d. Ensure that the independent review entity organization 33 or any of its employees, agents, or licensed health care 34 professionals utilized are not in any manner related to, 35 -15- LSB 1333HZ (1) 89 ko/rn 15/ 49
H.F. 838 employed by, or affiliated with the insured or with a person 1 who previously provided medical care to the insured. 2 e. Ensure that an independent review entity organization 3 or any of its employees, agents, or licensed health care 4 professionals utilized is not a subsidiary of, or owned or 5 controlled by, an insurer or by a trade association of insurers 6 of which the insurer is a member. 7 f. Have a quality assurance program on file with the 8 commissioner that ensures the timeliness and quality of reviews 9 performed, the qualifications and independence of the licensed 10 health care professionals who perform the reviews, and the 11 confidentiality of the review process. 12 g. Have on staff or contract with a licensed health care 13 practitioner, as defined in section 514G.103, subsection 3 , who 14 is qualified to certify that an individual is chronically ill 15 for purposes of a qualified long-term care insurance contract. 16 5. Independent review process. The independent review 17 process shall be conducted as follows: 18 a. Within three business days of receiving a notice from the 19 commissioner of the certification of a request for independent 20 review or receipt of a denial of an insurer’s appeal from such 21 a certification, the insurer shall do all of the following: 22 (1) Select an independent review entity organization from 23 the list certified by the commissioner and notify the insured 24 in writing of the name, address, and telephone number of the 25 selected independent review entity selected organization . The 26 selected independent review entity selected organization shall 27 utilize a licensed health care professional with qualifications 28 appropriate to the benefit trigger determination that is under 29 review. 30 (2) Notify the independent review entity organization 31 that it has been selected to conduct an independent review 32 of a benefit trigger determination and provide sufficient 33 descriptive information to enable the independent review entity 34 organization to provide licensed health care professionals who 35 -16- LSB 1333HZ (1) 89 ko/rn 16/ 49
H.F. 838 will be qualified to conduct the review. 1 (3) Provide the commissioner with a copy of the notices sent 2 to the insured and to the selected independent review entity 3 selected organization . 4 b. Within three business days of receiving a notice from 5 an insurer that it has been selected to conduct an independent 6 review, the independent review entity organization shall do one 7 of the following: 8 (1) Accept its selection as the independent review entity 9 organization , designate a qualified licensed health care 10 professional to perform the independent review, and provide 11 notice of that designation to the insured and the insurer, 12 including a brief description of the health care professional’s 13 qualifications and the reasons that person is qualified to 14 determine whether the insured’s benefit trigger has been met. 15 A copy of this notice shall be sent to the commissioner via 16 facsimile. The independent review entity organization is not 17 required to disclose the name of the health care professional 18 selected. 19 (2) Decline its selection as the independent review entity 20 organization or, if the independent review entity organization 21 does not have a licensed health care professional who is 22 qualified to conduct the independent review available, request 23 additional time from the commissioner to have a qualified 24 licensed health care professional certified, and provide 25 notice to the insured, the insurer, and the commissioner. 26 The commissioner shall notify the independent review entity 27 organization , the insured, and the insurer of how to proceed 28 within three business days of receipt of such notice from the 29 independent review entity organization . 30 c. An insured may object to the independent review entity 31 organization selected by the insurer or to the licensed 32 health care professional designated by the independent review 33 entity organization to conduct the review by filing a notice 34 of objection along with reasons for the objection, with the 35 -17- LSB 1333HZ (1) 89 ko/rn 17/ 49
H.F. 838 commissioner within ten days of receipt of a notice sent by the 1 independent review entity organization pursuant to paragraph 2 “b” . The commissioner shall consider the insured’s objection 3 and shall notify the insured, the insurer, and the independent 4 review entity organization of the commissioner’s decision to 5 sustain or deny the objection within two business days of 6 receipt of the objection. 7 d. Within five business days of receiving a notice from 8 the independent review entity organization accepting its 9 selection or within five business days of receiving a denial 10 of an objection to the independent review entity organization 11 selected, whichever is later, the insured may submit any 12 information or documentation in support of the insured’s claim 13 to both the independent review entity organization and the 14 insurer. 15 e. Within fifteen days of receiving a notice from the 16 independent review entity organization accepting its selection 17 or within three business days of receipt of a denial of 18 an objection to the independent review entity organization 19 selected, whichever is later, an insurer shall do all of the 20 following: 21 (1) Provide the independent review entity organization 22 with any information submitted to the insurer by the insured 23 in support of the insured’s internal appeal of the insurer’s 24 benefit trigger determination. 25 (2) Provide the independent review entity organization with 26 any other relevant documents used by the insurer in making its 27 benefit trigger determination. 28 (3) Provide the insured and the commissioner with 29 confirmation that the information required under subparagraphs 30 (1) and (2) has been provided to the independent review entity 31 organization , including the date the information was provided. 32 f. The independent review entity organization shall not 33 commence its review until fifteen days after the selection of 34 the independent review entity organization is final including 35 -18- LSB 1333HZ (1) 89 ko/rn 18/ 49
H.F. 838 the resolution of any objection made pursuant to paragraph 1 “c” . During this time period, the insurer may consider any 2 information provided by the insured pursuant to paragraph 3 “d” and overturn or affirm the insurer’s benefit trigger 4 determination based on such information. If the insurer 5 overturns its benefit trigger determination, the independent 6 review process shall immediately cease. 7 g. In conducting a review, the independent review 8 entity organization shall consider only the information 9 and documentation provided to the independent review entity 10 organization pursuant to paragraphs “d” and “e” . 11 h. The independent review entity organization shall submit 12 its decision as soon as possible, but not later than thirty 13 days from the date the independent review entity organization 14 receives the information required under paragraphs “d” and “e” , 15 whichever is received later. The decision shall include a 16 description of the basis for the decision and the date of the 17 benefit trigger determination to which the decision relates. 18 The independent review entity organization , for good cause, 19 may request an extension of time from the commissioner to file 20 its decision. A copy of the decision shall be mailed to the 21 insured, the insurer, and the commissioner. 22 i. All medical records submitted for use by the independent 23 review entity organization shall be maintained as confidential 24 records as required by applicable state and federal laws. The 25 commissioner shall keep all information obtained during the 26 independent review process confidential pursuant to section 27 505.8, subsection 8 , except that the commissioner may share 28 some information obtained as provided under section 505.8, 29 subsection 8 , and as required by this chapter and rules adopted 30 pursuant to this chapter . 31 j. If an insured dies before completion of the independent 32 review, the review shall continue to completion if there 33 is potential liability of an insurer to the estate of the 34 insured or to a provider for rendering qualified long-term care 35 -19- LSB 1333HZ (1) 89 ko/rn 19/ 49
H.F. 838 services to the insured. 1 6. Costs. All reasonable fees and costs of the independent 2 review entity incurred organization in conducting an 3 independent review under this section shall be paid by the 4 insurer. 5 7. Immunity. An independent review entity organization that 6 conducts a review under this section is not liable for damages 7 arising from determinations made during the review. Immunity 8 does not apply to any act or omission made by an independent 9 review entity organization in bad faith or that involves gross 10 negligence. 11 8. Effect of independent review decision. 12 a. The review decision by the independent review entity 13 organization conducting the review is binding on the insurer. 14 b. The independent review process set forth in this section 15 shall not be considered a contested case under chapter 17A . 16 c. An insured may appeal the review decision by the 17 independent review entity organization conducting the review 18 by filing a petition for judicial review in the district court 19 in the county in which the insured resides. The petition for 20 judicial review shall be filed within fifteen business days 21 after the issuance of the review decision by the independent 22 review organization . The petition shall name the insured 23 as the petitioner and the insurer as the respondent. The 24 petitioner shall not name the independent review entity 25 organization as a party. The commissioner shall not be named 26 as a respondent unless the insured alleges action or inaction 27 by the commissioner under the standards articulated under 28 section 17A.19, subsection 10 . Allegations made against the 29 commissioner under section 17A.19, subsection 10 , must be 30 stated with particularity. The commissioner may, upon motion, 31 intervene in a judicial review proceeding brought pursuant to 32 this paragraph. The findings of fact by the independent review 33 entity organization conducting the review are conclusive and 34 binding on appeal. 35 -20- LSB 1333HZ (1) 89 ko/rn 20/ 49
H.F. 838 d. An insurer shall not be subject to any penalties, 1 sanctions, or damages for complying in good faith with a review 2 decision rendered by an independent review entity organization 3 pursuant to this section . 4 e. Nothing contained in this section or in section 514G.109 5 shall be construed to limit the right of an insurer to assert 6 any rights an insurer may have under a long-term care insurance 7 policy related to: 8 (1) An insured’s misrepresentation. 9 (2) Changes in the insured’s benefit eligibility. 10 (3) Terms, conditions, and exclusions contained in the 11 policy, other than failure to meet the benefit trigger. 12 f. The requirements of this section and section 514G.109 are 13 not applicable to a group long-term care insurance policy that 14 is governed by the federal Employee Retirement Income Security 15 Act of 1974, as codified at 29 U.S.C. §100 §1001 et seq. 16 g. The provisions of this section and section 514G.109 17 are in lieu of and supersede any other third-party review 18 requirement contained in chapter 514J or in any other provision 19 of law. 20 h. The insured may bring an action in the district court 21 in the county in which the insured resides to enforce the 22 review decision of the independent review entity organization 23 conducting the review or the decision of the court on appeal. 24 9. Receipt of notice. Notice required by this section shall 25 be deemed received within five days after the date of mailing. 26 Sec. 24. Section 515.147, Code 2021, is amended to read as 27 follows: 28 515.147 Fees. 29 Fees , established by the commissioner of insurance by rule, 30 shall be paid to the commissioner of insurance for deposit as 31 provided in section 505.7 as follows for all of the following : 32 1. For filing an application to do business, including all 33 documents submitted in connection with the application, by a 34 foreign or domestic company, or for filing an application for 35 -21- LSB 1333HZ (1) 89 ko/rn 21/ 49
H.F. 838 renewed authority , fifty dollars . 1 2. For issuing to a foreign or domestic company a 2 certificate of authority to do business or a renewed 3 certificate of authority , fifty dollars . 4 3. For filing amended articles of incorporation , fifty 5 dollars . 6 4. For issuing an amended certificate of authority , 7 twenty-five dollars . 8 5. For affixing the official seal to any paper filed with 9 the division , ten dollars . 10 Sec. 25. Section 515A.2, subsection 1, Code 2021, is amended 11 by adding the following new paragraph: 12 NEW PARAGRAPH . 0a. “Commissioner” means the commissioner 13 of insurance. 14 Sec. 26. Section 515A.6, subsection 1, paragraph c, Code 15 2021, is amended to read as follows: 16 c. Licenses issued pursuant to this section shall remain 17 in effect for three years unless sooner suspended or revoked 18 by the commissioner. The fee for the license fee shall be one 19 hundred dollars established by the commissioner by rule . 20 Sec. 27. Section 515A.6, subsection 7, Code 2021, is amended 21 to read as follows: 22 7. Notwithstanding any other provision of the Code law to 23 the contrary , the commissioner of insurance shall provide for 24 a hearing in a proceeding involving a workers’ compensation 25 insurance rate filing by a licensed rating organization 26 in accordance with the provisions of this subsection and 27 rules promulgated by the commissioner of insurance pursuant 28 to chapter 17A . Except as otherwise provided herein, the 29 provisions of this subsection shall not be subject to the 30 requirements of chapter 17A . The procedures for such hearing 31 shall be as follows: 32 a. The commissioner shall provide notice of the filing of 33 the proposed rates at least thirty days before the effective 34 date of the proposed rates by publishing a notice on the 35 -22- LSB 1333HZ (1) 89 ko/rn 22/ 49
H.F. 838 internet site of the insurance division of the department of 1 commerce. 2 b. A public hearing shall be held on the proposed rates by 3 the commissioner of insurance if within fifteen days of the 4 date of publication a workers’ compensation policyholder or an 5 established organization with one or more workers’ compensation 6 policyholders among its members files a written demand with the 7 commissioner of insurance for a hearing on the proposed rates. 8 c. The commissioner of insurance shall hold the hearing 9 within twenty days after receipt of the written demand for a 10 hearing and shall give not less than ten days written notice of 11 the time and place of the hearing to the person or association 12 filing the demand, to the rating organization, and to any other 13 person requesting such notice. 14 d. At any such hearing, the rating organization shall 15 bear the burden of proof to support the proposed rates by a 16 preponderance of the evidence. The person or association 17 requesting the hearing, and any other person admitted as a 18 party to the proceeding, shall be given the opportunity to 19 respond and introduce evidence and arguments on all the issues 20 involved. 21 e. Within fifteen days after the start of the hearing, the 22 commissioner of insurance will shall approve or disapprove 23 the proposed rates and specify the reasons therefor. The 24 commissioner of insurance may suspend or postpone the effective 25 date of the proposed rates pending the hearing and written 26 decision thereon. 27 f. Judicial review of the decision of the commissioner of 28 insurance on such rates may be sought in accordance with the 29 provisions of chapter 17A . 30 g. Absent a request for a hearing as provided in paragraph 31 “b” , the commissioner shall issue an order approving or 32 disapproving the proposed rates. 33 h. The waiting period for a workers’ compensation insurance 34 rate filing shall commence no earlier than the date that notice 35 -23- LSB 1333HZ (1) 89 ko/rn 23/ 49
H.F. 838 of the insurance rate filing is published. 1 Sec. 28. Section 515A.10, Code 2021, is amended to read as 2 follows: 3 515A.10 Advisory organizations. 4 1. Every group, association or other organization of 5 insurers, whether located within or outside of this state, 6 which assists insurers which make their own filings or rating 7 organizations in rate making, by the collection and furnishing 8 of loss or expense statistics, or by the submission of 9 recommendations, but which does not make filings under this 10 chapter , shall be known as an advisory organization. 11 2. An advisory organization shall not provide a service 12 relating to this chapter, and an insurer shall not utilize 13 the services of an advisory organization for such purposes 14 unless the advisory organization has obtained a license under 15 subsection 3. 16 2. 3. Every An advisory organization applying for a license 17 shall file include with its application to the commissioner all 18 of the following: 19 a. A copy of its constitution, its articles of agreement 20 or association or its certificate of incorporation and of its 21 bylaws, rules and regulations governing its activities. 22 b. A list of its members. 23 c. The name and address of a resident of this state upon 24 whom notices or orders of the commissioner or process issued at 25 the commissioner’s direction may be served. 26 d. An agreement that the commissioner may examine such 27 advisory organization in accordance with the provisions of 28 section 515A.12 . 29 e. A fee established by the commissioner by rule. 30 3. 4. If, after a hearing, the commissioner finds that 31 the furnishing of such information or assistance involves an 32 advisory organization has engaged in any act or practice which 33 is unfair , or unreasonable , or otherwise inconsistent with the 34 provisions in violation of this chapter , the commissioner may 35 -24- LSB 1333HZ (1) 89 ko/rn 24/ 49
H.F. 838 issue a written an order specifying in what respects such act 1 or practice is unfair or unreasonable or otherwise inconsistent 2 with the provisions of this chapter , and requiring the 3 discontinuance of such act or practice advisory organization to 4 cease and desist such act or practice . The commissioner may, 5 at any time after hearing, revoke or suspend the license of an 6 advisory organization which does not comply with this chapter. 7 4. 5. No insurer which makes its own filings nor any rating 8 organization shall support its filings by statistics or adopt 9 rate making recommendations, furnished to it by an advisory 10 organization which has not complied with this section or with 11 an order of the commissioner involving such statistics or 12 recommendations issued under subsection 3 4 of this section . 13 If the commissioner finds such insurer or rating organization 14 to be in violation of this subsection the commissioner may 15 issue an order requiring the discontinuance of such violation. 16 6. A license issued under this section shall remain in 17 effect for three years unless sooner suspended or revoked by 18 the commissioner. 19 Sec. 29. Section 515D.4, subsection 2, paragraph a, Code 20 2021, is amended to read as follows: 21 a. The named insured or any operator who either resides 22 in the same household or customarily operates an automobile 23 insured under the policy has that person’s driver’s license 24 suspended or revoked during the policy term or, if the policy 25 is a renewal, during its term or the one hundred eighty days 26 immediately preceding its effective date. any of the following: 27 (1) The term of the policy. 28 (2) The term of a renewal policy. 29 (3) Within one hundred eighty calendar days immediately 30 preceding the effective date of a renewal of the policy. 31 Sec. 30. Section 515D.4, subsection 3, Code 2021, is amended 32 to read as follows: 33 3. This section shall not apply to any policy or coverage 34 which has been in effect less than sixty calendar days at the 35 -25- LSB 1333HZ (1) 89 ko/rn 25/ 49
H.F. 838 time notice of cancellation is mailed or delivered by the 1 insurer unless it is a renewal policy. This section shall not 2 apply to the nonrenewal of a policy. 3 Sec. 31. Section 515D.5, Code 2021, is amended to read as 4 follows: 5 515D.5 Delivery of notice. 6 1. a. Notwithstanding the provisions of section 515.129A , 7 a notice of cancellation of a policy shall not be effective 8 unless mailed or delivered by the insurer to the named insured 9 at least thirty calendar days prior to the effective date of 10 cancellation, or, where the cancellation is for nonpayment of 11 premium notwithstanding the provisions of section 515.129A , 12 at least ten calendar days prior to the date of cancellation. 13 A post office department certificate of mailing to the named 14 insured at the address shown in the policy shall be proof 15 of receipt of such mailing. Unless the reason accompanies 16 the notice of cancellation, the notice shall state that upon 17 written request of the named insured, mailed or delivered to 18 the insurer not less than fifteen calendar days prior to the 19 date of cancellation, the insurer will state the reason for 20 cancellation together with notification of the right to a 21 hearing before the commissioner within fifteen calendar days as 22 provided in this chapter . 23 b. When the reason does not accompany the notice of 24 cancellation, the insurer shall, upon receipt of a timely 25 request by the named insured, state in writing the reason 26 for cancellation. A statement of reason shall be mailed or 27 delivered to the named insured within five calendar days after 28 receipt of a request. 29 2. A notice of exclusion of a person under a policy pursuant 30 to section 515D.4 , is not effective unless written notice 31 is mailed or delivered to the named insured at least twenty 32 calendar days prior to the effective date of the exclusion. 33 The written notice shall state the reason for the exclusion, 34 together with notification of the right to a hearing before 35 -26- LSB 1333HZ (1) 89 ko/rn 26/ 49
H.F. 838 the commissioner pursuant to section 515D.10 within fifteen 1 calendar days of receipt or delivery of a statement of reason 2 as provided in this section . 3 Sec. 32. Section 515D.6, Code 2021, is amended to read as 4 follows: 5 515D.6 Prohibited reasons for nonrenewal . 6 1. No insurer shall refuse to renew a policy solely because 7 of age, residence, sex, race, color, creed, or occupation of 8 an insured . 9 2. No insurer shall require a physical examination of a 10 policyholder as a condition for renewal solely on the basis of 11 age or other arbitrary reason. In the event that an insurer 12 requires a physical examination of a policyholder, the burden 13 of proof in establishing reasonable and sufficient grounds for 14 such requirement shall rest with the insurer and the expenses 15 incident to such examination shall be borne by the insurer. 16 Sec. 33. Section 515D.7, Code 2021, is amended to read as 17 follows: 18 515D.7 Notice of intent. 19 1. Notwithstanding the provisions of sections 515.125 , 20 515.128 , 515.129B , and 515.129C , an insurer shall not fail to 21 renew a policy except by notice to the insured as provided 22 in this chapter . A notice of intention not to renew shall 23 not be effective unless mailed or delivered by the insurer 24 to the named insured at least thirty calendar days prior to 25 the expiration date of the policy. A post office department 26 certificate of mailing to the named insured at the address 27 shown in the policy shall be proof of receipt of such mailing. 28 Unless the reason accompanies the notice of intent not to 29 renew, the notice shall state that, upon written request of 30 the named insured, mailed or delivered to the insurer not less 31 than thirty calendar days prior to the expiration date of the 32 policy, the insurer will state the reason for nonrenewal. 33 2. When the reason does not accompany the notice of intent 34 not to renew, the insurer shall, upon receipt of a timely 35 -27- LSB 1333HZ (1) 89 ko/rn 27/ 49
H.F. 838 request by the named insured, state in writing the reason 1 for nonrenewal, together with notification of the right to a 2 hearing before the commissioner within fifteen calendar days 3 as provided herein. A statement of reason shall be mailed or 4 delivered to the named insured within ten days after receipt 5 of a request. 6 3. This section shall not apply: 7 a. If the insurer has manifested its willingness to renew. 8 b. If the insured fails to pay any premium due or any 9 advance premium required by the insurer for renewal. 10 c. If the insured is transferred from an insurer to 11 an affiliate for future coverage as a result of a merger, 12 acquisition, or company restructuring and if the transfer 13 results in the same or broader coverage. 14 Sec. 34. Section 515D.10, Code 2021, is amended to read as 15 follows: 16 515D.10 Hearing before commissioner. 17 Any named insured who has received a statement of reason 18 for cancellation, or of reason for an insurer’s intent not 19 to renew a policy, may, within fifteen calendar days of the 20 receipt or delivery of a statement of reason, request a hearing 21 before the commissioner of insurance. The purpose of this 22 hearing shall be limited to establishing the existence of the 23 proof or evidence used stated by the insurer in as its reason 24 for cancellation or intent not to renew. The burden of proof 25 of the reason for cancellation or intent not to renew shall 26 be upon the insurer. Other than the sharing of information 27 required by this chapter and the rules adopted pursuant to 28 the provisions of this chapter , the commissioner shall keep 29 confidential the information obtained from the insured or in 30 the hearing process, pursuant to section 505.8, subsection 8 . 31 The commissioner of insurance shall adopt rules for carrying 32 out pursuant to chapter 17A to implement the provisions of this 33 section . 34 Sec. 35. Section 515F.2, Code 2021, is amended by adding the 35 -28- LSB 1333HZ (1) 89 ko/rn 28/ 49
H.F. 838 following new unnumbered paragraph: 1 NEW UNNUMBERED PARAGRAPH . As used in this chapter, unless 2 the context otherwise requires: 3 Sec. 36. Section 515F.2, Code 2021, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 2A. “Commissioner” means the commissioner 6 of insurance. 7 Sec. 37. Section 515F.8, subsection 3, paragraph a, Code 8 2021, is amended by adding the following new subparagraph: 9 NEW SUBPARAGRAPH . (7) A license fee as established by the 10 commissioner by rule. 11 Sec. 38. Section 515F.8, subsection 3, paragraph d, Code 12 2021, is amended to read as follows: 13 d. Duration. A license issued under this section shall 14 remain in effect for one year three years unless the license 15 is suspended or revoked. The commissioner may, at any time 16 after hearing, revoke or suspend the license of an advisory 17 organization which does not comply with the requirements and 18 standards of this chapter . 19 Sec. 39. Section 515F.32, Code 2021, is amended by adding 20 the following new unnumbered paragraph: 21 NEW UNNUMBERED PARAGRAPH . As used in this subchapter, 22 unless the context otherwise requires: 23 Sec. 40. Section 515F.32, subsection 3, Code 2021, is 24 amended to read as follows: 25 3. “Insurer” includes all companies or associations licensed 26 to transact insurance business in this state under chapters 27 515 , 518 , and 518A , reciprocal insurers issued a certificate 28 of authority pursuant to chapter 520, and companies or 29 associations admitted or seeking to be admitted to do business 30 in this state under any of those chapters, notwithstanding any 31 provision of the Code to the contrary. 32 Sec. 41. Section 515F.36, subsection 2, paragraph a, 33 subparagraphs (1) and (2), Code 2021, are amended to read as 34 follows: 35 -29- LSB 1333HZ (1) 89 ko/rn 29/ 49
H.F. 838 (1) American property casualty insurance association. 1 (2) Property casualty insurers association of America 2 National association of mutual insurance companies . 3 Sec. 42. NEW SECTION . 515F.39 Cancellation or nonrenewal 4 —— FAIR notice. 5 If basic property insurance coverage is canceled or not 6 renewed other than for nonpayment of a premium pursuant to 7 section 515.125, 515.126, 515.127, 515.128, 518.23, or 518A.29, 8 the insurer shall notify the named insured that the named 9 insured may be eligible for basic property insurance through 10 the FAIR plan. The notice shall accompany the notice of 11 cancellation or the intent not to renew. 12 Sec. 43. Section 515I.4, subsection 1, paragraph a, Code 13 2021, is amended to read as follows: 14 a. Capital and surplus or its equivalent under the laws of 15 the insurer’s domiciliary jurisdiction which equals the greater 16 of either greatest of the following: 17 (1) The minimum capital and surplus requirements under the 18 laws of this state. 19 (2) Fifteen million dollars. 20 (3) The risk-based capital level requirements pursuant to 21 chapter 521E. 22 Sec. 44. Section 520.12, subsection 2, Code 2021, is amended 23 to read as follows: 24 2. A reciprocal or interinsurance insurer shall submit 25 annually, on or before March 1, a completed application for 26 renewal of the insurer’s certificate of authority. An insurer 27 that fails to timely file an application for renewal shall pay 28 an administrative fee of five hundred dollars to the treasurer 29 of state for deposit as provided in section 505.7 to the 30 commissioner of insurance as established by the commissioner of 31 insurance by rule . 32 Sec. 45. Section 521.18, Code 2021, is amended to read as 33 follows: 34 521.18 Articles of merger or consolidation —— filing fees 35 -30- LSB 1333HZ (1) 89 ko/rn 30/ 49
H.F. 838 and approval. 1 A company filing a plan to merge or consolidate under the 2 provisions of this chapter shall file its articles of merger 3 or consolidation with the commission for its approval. The 4 fee for filing articles of merger or consolidation with 5 the commission is fifty dollars shall be established by the 6 commissioner by rule . 7 Sec. 46. Section 522.9, subsection 1, Code 2021, is amended 8 to read as follows: 9 1. If an insurer fails, without just cause, to file an 10 own risk and solvency assessment summary report by the filing 11 date stipulated to the commissioner pursuant to section 522.5, 12 subsection 1 , paragraph “c” , the commissioner shall, after 13 notice and hearing, impose a penalty of five hundred dollars 14 for each calendar day after the stipulated date that the 15 summary report is not filed. The penalties shall be collected 16 by the commissioner and deposited in the general fund of the 17 state pursuant to section 505.7 . The maximum penalty which may 18 be imposed under this section is fifty thousand dollars. 19 Sec. 47. Section 522A.5, Code 2021, is amended to read as 20 follows: 21 522A.5 Fees Counter employee —— license fee . 22 The fee for a counter employee license shall be fifty dollars 23 per counter employee established by the commissioner by rule . 24 In no case shall any combined fees exceed one thousand dollars 25 in any calendar year for any one rental company or limited 26 license or licensee or renewal license. The fees collected 27 under this section shall be deposited as provided in section 28 505.7 . 29 Sec. 48. Section 522B.5, subsection 1, paragraph c, Code 30 2021, is amended to read as follows: 31 c. The individual has paid the license fee of fifty dollars 32 established by the commissioner by rule . 33 Sec. 49. Section 522E.4, subsection 1, paragraph c, Code 34 2021, is amended to read as follows: 35 -31- LSB 1333HZ (1) 89 ko/rn 31/ 49
H.F. 838 c. An application fee of the lesser of fifty dollars per 1 each endorsee at a location of the vendor or five hundred 2 dollars per location valid for a three-year period and, for 3 each three-year period thereafter, a renewal fee in the same 4 amount. A maximum fee of five thousand dollars shall apply 5 for licensure of a portable electronics vendor with multiple 6 locations established by the commissioner by rule . The fees 7 collected shall be deposited as provided in section 505.7 . 8 DIVISION III 9 CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SALES 10 Sec. 50. Section 523A.204, subsections 1 and 2, Code 2021, 11 are amended to read as follows: 12 1. A preneed seller shall file an annual report with the 13 commissioner not later than April 1 of each year an annual 14 report 15 on a form prescribed by the commissioner. 15 2. A preneed seller filing an annual report shall pay a 16 filing fee of ten dollars established by the commissioner by 17 rule per purchase agreement sold during the year covered by 18 the report. Duplicate filing fees are not required for the 19 same purchase agreement. If a purchase agreement has multiple 20 sellers, the filing fee shall be paid by the preneed seller 21 actually providing the merchandise and services. 22 Sec. 51. Section 523A.204, Code 2021, is amended by adding 23 the following new subsection: 24 NEW SUBSECTION . 4. The commissioner may impose a late 25 fee, established by the commissioner by rule, for each day 26 after April 15 that a preneed seller fails to file the preneed 27 seller’s annual report. The maximum late fee that may be 28 imposed under this subsection is five hundred dollars. The fee 29 shall be collected by the commissioner and deposited pursuant 30 to section 505.7. 31 Sec. 52. Section 523A.501, subsections 7 and 8, Code 2021, 32 are amended to read as follows: 33 7. A preneed seller’s license expires shall expire annually 34 on April 15 30 . If the a preneed seller has filed a complete 35 -32- LSB 1333HZ (1) 89 ko/rn 32/ 49
H.F. 838 an annual report pursuant to section 523A.204, subsection 1, 1 and paid the required fees as required in section 523A.204 , the 2 commissioner shall renew the preneed seller’s license until 3 April 15 30 of the following year. 4 8. The commissioner may by rule create or accept a 5 multijurisdiction preneed seller’s license. If the preneed 6 seller’s license is issued by another jurisdiction, the rules 7 shall require the filing of an application or notice form and 8 payment of the applicable filing fee of fifty dollars for an 9 application established by the commissioner by rule . The 10 application or notice form utilized and the effective dates and 11 terms of the license may vary from the provisions set forth in 12 this section . 13 Sec. 53. Section 523A.502, subsection 5, Code 2021, is 14 amended to read as follows: 15 5. A sales license shall expire annually on April 15 30 . If 16 the a sales agent has filed a substantially complete an annual 17 report as required in pursuant to section 523A.502A , subsection 18 1, and has fulfilled the continuing education requirements 19 pursuant to subsection 6, the commissioner shall renew the 20 sales agent’s sales license until April 15 30 of the following 21 year. 22 Sec. 54. Section 523A.502A, subsection 1, Code 2021, is 23 amended to read as follows: 24 1. A No later than April 15, a sales agent shall file an 25 annual report with the commissioner not later than April 1 26 of each year an annual report on a form prescribed by the 27 commissioner describing each purchase agreement sold by the 28 sales agent during the year. An annual report must be filed 29 whether or not sales were made a sales agent sold any purchase 30 agreements during the year and even if the whether or not a 31 sales agent is no longer still an agent of a preneed seller or 32 is still licensed by the commissioner. 33 Sec. 55. Section 523A.502A, Code 2021, is amended by adding 34 the following new subsection: 35 -33- LSB 1333HZ (1) 89 ko/rn 33/ 49
H.F. 838 NEW SUBSECTION . 3. The commissioner may impose a late fee, 1 established by the commissioner by rule, for each day after 2 April 15 that a sales agent fails to file the sales agent’s 3 annual report. The maximum late fee that may be imposed 4 pursuant to this section is five hundred dollars. The fee 5 shall be collected by the commissioner and deposited pursuant 6 to section 505.7. 7 Sec. 56. Section 523A.601, subsection 4, Code 2021, is 8 amended by striking the subsection and inserting in lieu 9 thereof the following: 10 4. All purchase agreements, including a purchase agreement 11 delivered or executed by electronic means, must have a sales 12 agent identified. A purchase agreement, including a purchase 13 agreement delivered or executed by electronic means, shall 14 be reviewed by the sales agent identified and named in the 15 purchase agreement pursuant to subsection 1, paragraph “a” , and 16 signed by the purchaser and seller. If the purchase agreement 17 is for mortuary science services as “mortuary science” is 18 defined in section 156.1, the purchase agreement must also be 19 signed by a person licensed to deliver funeral services. 20 Sec. 57. Section 523A.807, subsection 3, unnumbered 21 paragraph 1, Code 2021, is amended to read as follows: 22 If the commissioner finds that a person has violated section 23 523A.201 , 523A.202 , 523A.203 , 523A.204, 523A.207 , 523A.401 , 24 523A.402 , 523A.403 , 523A.404 , 523A.405 , 523A.501 , or 523A.502 , 25 or 523A.502A, or any rule adopted pursuant thereto, the 26 commissioner may order any or all of the following: 27 Sec. 58. Section 523A.812, Code 2021, is amended to read as 28 follows: 29 523A.812 Insurance division regulatory fund. 30 The insurance division may authorize the creation of a 31 special revenue fund in the state treasury, to be known as the 32 insurance division regulatory fund. The commissioner shall 33 allocate annually from the filing fees paid pursuant to section 34 523A.204 , two dollars an amount established by the commissioner 35 -34- LSB 1333HZ (1) 89 ko/rn 34/ 49
H.F. 838 by rule for each purchase agreement reported on a preneed 1 seller’s annual report filed pursuant to section 523A.204 for 2 deposit to the regulatory fund. The remainder of the fees 3 collected pursuant to section 523A.204 shall be deposited 4 as provided in section 505.7 . The commissioner shall also 5 allocate annually the examination fees paid pursuant to section 6 523A.814 and any examination expense reimbursement for deposit 7 to the regulatory fund. The moneys in the regulatory fund 8 shall be retained in the fund. The moneys are appropriated 9 and, subject to authorization by the commissioner, may be used 10 to pay examiners, examination expenses, investigative expenses, 11 the expenses of mediation ordered by the commissioner, consumer 12 education expenses, the expenses of a toll-free telephone 13 line to receive consumer complaints, and the expenses of 14 receiverships established under section 523A.811 . If the 15 commissioner determines that funding is not otherwise available 16 to reimburse the expenses of a person who receives title 17 to a cemetery subject to chapter 523I , pursuant to such 18 a receivership, the commissioner shall use moneys in the 19 regulatory fund as necessary to preserve, protect, restore, 20 and maintain the physical integrity of that cemetery and to 21 satisfy claims or demands for cemetery merchandise, funeral 22 merchandise, and funeral services based on purchase agreements 23 which the commissioner determines are just and outstanding. 24 An annual allocation to the regulatory fund shall not be 25 imposed if the current balance of the fund exceeds five hundred 26 thousand dollars. 27 Sec. 59. Section 523A.814, Code 2021, is amended to read as 28 follows: 29 523A.814 Examination fee. 30 In addition to the filing fee paid pursuant to section 31 523A.204, subsection 2 , a seller filing an annual report 32 shall pay an examination fee in the amount of five dollars 33 established by the commissioner by rule for each purchase 34 agreement subject to a filing fee that is sold between July 1, 35 -35- LSB 1333HZ (1) 89 ko/rn 35/ 49
H.F. 838 2005, and December 31, 2007, and in the amount of ten dollars 1 for each purchase agreement subject to a filing fee that is 2 sold after December 31, 2007 . 3 DIVISION IV 4 RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS 5 Sec. 60. Section 523C.3, subsection 2, Code 2021, is amended 6 to read as follows: 7 2. The application shall be accompanied by all of the 8 following: 9 a. A license fee in the amount of five hundred dollars 10 established by the commissioner by rule . 11 b. If applicable, a fee in the amount of fifty dollars 12 established by the commissioner by rule for each motor vehicle 13 service contract form submitted in an application as provided 14 in subsection 1 , paragraph “f” . 15 Sec. 61. Section 523C.4, subsection 3, paragraphs a, b, and 16 c, Code 2021, are amended to read as follows: 17 a. A license renewal fee in the amount of five hundred 18 dollars established by the commissioner by rule . 19 b. If applicable, a fee in the amount of three percent 20 percentage established by the commissioner by rule of the 21 aggregate amount of payments the licensee received for the sale 22 or issuance of residential service contracts in this state 23 during the preceding fiscal year , provided that such fee shall 24 be no less than one hundred dollars and no greater than fifty 25 thousand dollars . 26 c. If applicable, a fee in the amount of fifty dollars 27 established by the commissioner by rule for each motor 28 vehicle service contract form submitted in a with the renewal 29 application pursuant to subsection 2, and as provided in 30 section 523C.3, subsection 1 , paragraph “f” . 31 Sec. 62. Section 523C.24, subsection 2, Code 2021, is 32 amended to read as follows: 33 2. The commissioner shall deposit in the service company 34 oversight fund an amount equal to one-third of all licensing, 35 -36- LSB 1333HZ (1) 89 ko/rn 36/ 49
H.F. 838 examination, renewal, and inspection fees collected under this 1 chapter , provided that the maximum amount of fees deposited 2 in the fund each fiscal year shall not exceed five hundred 3 thousand dollars an amount established by the commissioner by 4 rule . Any remaining fees collected under this chapter and 5 not deposited in the service company oversight fund shall be 6 deposited as provided in section 505.7 . 7 DIVISION V 8 RETIREMENT FACILITIES 9 Sec. 63. Section 523D.2A, unnumbered paragraph 1, Code 10 2021, is amended to read as follows: 11 On or before March 1 of each year, a provider shall 12 file a certification with the commissioner in a manner and 13 according to in compliance with requirements established by the 14 commissioner by rule . The certification shall be accompanied 15 by a one hundred dollar administrative fee which fee in an 16 amount established by the commissioner by rule and shall be 17 deposited as provided in section 505.7 . The certification 18 shall attest that according to the best knowledge and belief of 19 the attesting party, the facility administered by the provider 20 is in compliance with the provisions of this chapter , including 21 rules adopted by the commissioner or and orders issued by the 22 commissioner as authorized under this chapter . The attesting 23 person may be any of the following: 24 DIVISION VI 25 IOWA CEMETERY ACT 26 Sec. 64. Section 523I.102, subsection 6, Code 2021, is 27 amended by adding the following new paragraph: 28 NEW PARAGRAPH . d. A cemetery under the jurisdiction and 29 control of a cemetery commission pursuant to section 331.325, 30 subsection 3, paragraph “c” . 31 Sec. 65. Section 523I.213, Code 2021, is amended to read as 32 follows: 33 523I.213 Insurance division’s enforcement fund. 34 A special revenue fund in the state treasury, to be known as 35 -37- LSB 1333HZ (1) 89 ko/rn 37/ 49
H.F. 838 the insurance division’s enforcement fund, is created under the 1 authority of the commissioner. The commissioner shall allocate 2 annually from the examination fees paid pursuant to section 3 523I.808 , an amount not exceeding fifty thousand dollars, for 4 deposit to all examination fees collected pursuant to section 5 523I.808 in the insurance division’s enforcement fund. The 6 moneys in the enforcement fund shall be retained in the fund. 7 The moneys are appropriated and, subject to authorization by 8 the commissioner, shall be used to pay examiners, examination 9 expenses, investigative expenses, the expenses of consumer 10 education, compliance, and education programs for filers and 11 other regulated persons, and educational or compliance program 12 materials, the expenses of a toll-free telephone line for 13 consumer complaints, and the expenses of receiverships of 14 perpetual care cemeteries established under section 523I.212 . 15 Sec. 66. Section 523I.301, subsections 1 and 2, Code 2021, 16 are amended to read as follows: 17 1. A cemetery shall disclose, prior to the sale of interment 18 rights, whether opening and closing of the interment space is 19 services are included in the purchase of the interment rights. 20 If opening and closing services are not included in the sale of 21 interment rights and the cemetery offers opening and closing 22 services, the cemetery must disclose that the price for this 23 service opening and closing services is subject to change 24 and must disclose the current prices for opening and closing 25 services provided by the cemetery. 26 2. The cemetery shall fully disclose all fees required for 27 interment, entombment, or inurnment , or disinterment of human 28 remains. 29 Sec. 67. Section 523I.309, subsection 6, Code 2021, is 30 amended to read as follows: 31 6. A cemetery may shall disinter and relocate remains 32 interred in the cemetery for the purpose of correcting an error 33 made by the cemetery after obtaining a disinterment permit 34 as required by section 144.34 , unless the interested parties 35 -38- LSB 1333HZ (1) 89 ko/rn 38/ 49
H.F. 838 have a written agreement directing otherwise. The cemetery 1 shall bear the costs of the disinterment and relocation . The 2 cemetery shall provide written notice describing the error 3 to the commissioner and to the person who has the right to 4 control the interment, relocation, or disinterment of the 5 remains erroneously interred, by restricted certified mail at 6 the person’s last known address and sixty days prior to the 7 disinterment. The notice shall include the location where the 8 disinterment will occur and the location of the new interment 9 space. A cemetery is not civilly or criminally liable for an 10 erroneously made interment that is corrected in compliance 11 with this subsection unless the error was the result of gross 12 negligence or intentional misconduct. 13 Sec. 68. Section 523I.808, Code 2021, is amended to read as 14 follows: 15 523I.808 Examination Annual report —— examination fee. 16 An examination fee , established by the commissioner by rule, 17 for each certificate of internment rights issued during the 18 time period covered by the report shall be submitted with the a 19 perpetual care cemetery’s annual report in an amount equal to 20 five dollars for each certificate of interment rights issued 21 during the time period covered by the report filed pursuant to 22 section 523I.813 . The cemetery may charge the examination fee 23 directly to the purchaser of the interment rights. 24 Sec. 69. Section 523I.813, subsection 3, Code 2021, is 25 amended by striking the subsection and inserting in lieu 26 thereof the following: 27 3. The commissioner may assess a late fee, established 28 by the commissioner by rule, for each day after the date on 29 which a perpetual care cemetery’s annual report is due that the 30 perpetual care cemetery fails to file the report. The late fee 31 shall be collected by the commissioner and deposited pursuant 32 to section 505.7. 33 DIVISION VII 34 STATE INNOVATION WAIVER 35 -39- LSB 1333HZ (1) 89 ko/rn 39/ 49
H.F. 838 Sec. 70. NEW SECTION . 505.18A State innovation waivers. 1 1. The commissioner of insurance may develop by rule 2 a state innovation waiver pursuant to section 1332 of the 3 federal Patient Protection and Affordable Care Act, Pub. L. No. 4 111-148. 5 2. The commissioner of insurance may submit an application 6 on behalf of the state to the United States secretary of health 7 and human services and the United States secretary of the 8 treasury for the state innovation waiver developed pursuant to 9 subsection 1. 10 3. If a state innovation waiver submitted pursuant to 11 subsection 2 is approved by the United States secretary of 12 health and human services and the United States secretary of 13 the treasury, the commissioner of insurance may implement the 14 state innovation waiver in a manner consistent with applicable 15 state and federal law. 16 4. The commissioner of insurance may adopt emergency 17 rules under section 17A.4, subsection 3, and section 17A.5, 18 subsection 2, paragraph “b” , to implement the provisions of 19 this section and the rules shall be effective immediately upon 20 filing unless a later date is specified in the rules. Any 21 rules adopted in accordance with this section shall also be 22 published as a notice of intended action as provided in section 23 17A.4. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill relates to various matters under the purview of the 28 insurance division of the department of commerce. The bill is 29 organized into seven divisions. 30 DIVISION I —— UNIFORM SECURITIES. Code section 502.304A 31 (expedited registration by filing for small issuers) is amended 32 to provide that an issuer, and a person registering as an 33 agent of the issuer, must pay the administrator a registration 34 fee established by the administrator, rather than the set 35 -40- LSB 1333HZ (1) 89 ko/rn 40/ 49
H.F. 838 fee amounts of $100 (issuer) and $10 (person registering as 1 an agent) required by current law. Code section 502.321G 2 (fees) is amended to change the nonrefundable fee for a 3 registration statement filed by an offeror from $250 to an 4 amount established by the administrator. 5 Code section 502.410 (filing fees) is amended to change 6 the broker-dealer filing fee for an application or renewal 7 registration from $200 to an amount established by the 8 administrator. In addition, the filing fee for registration 9 or renewal as an agent is amended from $40 to an amount 10 established by the administrator. Of the agent registration 11 fees collected, 25 percent are appropriated to the securities 12 investor education and financial literacy training fund. 13 Current law provides that $10 of every $40 fee collected 14 goes to the fund. The filing fee for an investment adviser 15 application or renewal registration is amended from $100 to 16 an amount established by the administrator. The bill also 17 amends the filing fees for an investment adviser representative 18 application, renewal registration, and change of registration 19 from $30 to an amount established by the administrator. A 20 federal covered investment adviser must pay an initial fee 21 and an annual notice fee in an amount established by the 22 administrator, rather than the $100 fee required under current 23 law. 24 DIVISION II —— INSURANCE. The bill amends Code section 25 505.30 (service of process on the commissioner) to specify 26 that the commissioner of insurance (commissioner) may set a 27 reasonable fee for service made on the commissioner. 28 The bill amends Code section 507A.4 (transactions where law 29 not applicable) and provides that Code chapter 507A does not 30 apply to a multiple employer welfare arrangement (MEWA) or a 31 MEWA formed as an association health plan (AHP) that meets the 32 requirements of Code chapter 513D. The bill strikes current 33 Code section 513D.1 (association health plans) and replaces it 34 with new provisions which detail the requirements for MEWAs and 35 -41- LSB 1333HZ (1) 89 ko/rn 41/ 49
H.F. 838 AHPs that offer a plan to, or that maintain a group health plan 1 for, any resident of Iowa. “AHP” and “MEWA” are defined in the 2 bill. 3 The bill details the requirements of the annual filings with 4 the commissioner required of registered AHPs and MEWAs. The 5 bill provides that a MEWA that is recognized as tax-exempt 6 under Internal Revenue Code section 501(c)(9), and that is 7 registered with the commissioner prior to January 1, 2018, 8 shall not be considered an AHP unless the MEWA affirmatively 9 elects to be treated as an AHP. The bill makes conforming 10 changes to Code section 513D.2 (rules and enforcement). 11 Code section 507B.7 (cease and desist orders) is amended 12 to provide that a person who violates any order of the 13 commissioner, rather than just a cease and desist order as is 14 in current law, may, after notice and hearing be subject to a 15 monetary penalty and suspension or revocation of the person’s 16 license. 17 The bill broadens the definition of “insurer” in Code 18 section 507E.2A (definitions) to include any corporation, 19 association, partnership, or individual engaged in the business 20 of insurance, including but not limited to a corporation, 21 association, partnership, or individual that issues a policy 22 of workers’ compensation, a self-insured business for purposes 23 of workers’ compensation liability, or a group or self-insured 24 plan. The bill specifically excludes a person required to be 25 licensed to sell, solicit, or negotiate insurance pursuant to 26 Code chapter 522B from the definition. 27 Code section 507E.8 (law enforcement authority) is amended 28 by the bill to specify that an individual who is employed by 29 the insurance division and is designated as a peace officer 30 shall be considered a law enforcement officer and shall 31 exercise the powers of a law enforcement officer as detailed 32 in the bill. 33 The bill amends Code section 508E.3 (license requirements)to 34 change the application and renewal fees for a viatical 35 -42- LSB 1333HZ (1) 89 ko/rn 42/ 49
H.F. 838 settlement provider and a viatical settlement broker from $100 1 to an amount established by the administrator. 2 Code section 509A.15 (certification of self-insurance plans 3 —— exemption) is amended to change the filing fee for the end 4 of fiscal year filing of a governing body of a self-insurance 5 plan of a political subdivision or a school corporation from 6 $100 to an amount established by the commissioner. The current 7 $15 per day penalty for late filings is changed to a late fee 8 established by the commissioner. 9 The bill makes conforming changes to Code section 510.21 10 (certificate of registration) and also requires that an 11 application for registration as a third-party administrator be 12 accompanied by a filing fee as established by the commissioner. 13 Current law does not require submission of a filing fee. 14 The bill strikes and replaces Code section 510.23 (unfair 15 competition or unfair and deceptive acts or practices 16 prohibited) and makes third-party administrators that violate 17 Code chapter 507B or 510 subject to the sanctions and penalties 18 set out in Code section 507B.7. Third-party administrators are 19 subject to Code chapter 507B under current law. 20 Code section 511.24 (fees from domestic and foreign 21 companies) is amended to change specific dollar amounts for 22 certain filing fees for foreign or domestic life insurance 23 companies to fee amounts determined by the commissioner. 24 The bill makes conforming changes to Code section 512B.24 25 (reports) and requires that the annual filing by fraternal 26 benefit societies be accompanied by a fee established by the 27 commissioner, rather than $50 as required by current law. 28 The bill makes conforming changes to Code section 512B.25 29 (annual license —— renewal) and requires that for each license 30 or renewal application a fraternal benefit society submit a fee 31 established by the commissioner, rather than $50 as required by 32 current law. The bill also changes the current administrative 33 penalty of $500 for a late renewal filing to a late fee as 34 established by the commissioner. 35 -43- LSB 1333HZ (1) 89 ko/rn 43/ 49
H.F. 838 The bill makes conforming changes to Code chapter 514G 1 (long-term care insurance) and amends the Code chapter 2 to change the terminology throughout the Code chapter 3 from “independent review entity” to “independent review 4 organization”. 5 Code section 515.147 (fees) is amended to change filing 6 fees for certain filings from specific dollar amounts to fees 7 determined by the commissioner. The bill makes conforming 8 changes to and amends Code section 515A.10 to provide more 9 specific requirements related to licensing requirements, fees, 10 and penalties for advisory organizations. 11 The bill amends Code section 515F.8 (licensing advisory 12 organizations) to require licensing advisory organizations 13 to submit a fee, determined by the commissioner, with their 14 application for a license, and makes the license effective for 15 three years, rather than the one year under current law. 16 Code section 515F.32 is amended to add reciprocal insurers 17 to the definition of “insurer”. Code section 515F.36 is 18 amended to change the makeup of the membership of the governing 19 committee that administers the FAIR plan. The bill creates a 20 new requirement that if basic property insurance coverage is 21 canceled or not renewed other than for nonpayment of a premium 22 pursuant to Code section 515.125, 515.126, 515.127, 515.128, 23 518.23, or 518A.29, the insurer must notify the named insured 24 that they may be eligible for basic property insurance through 25 the FAIR plan, and the notice must accompany the notice of 26 cancellation or the intent not to renew. 27 The bill amends Code section 515I.4 (requirements for 28 eligible surplus lines insurers) to allow a nonadmitted 29 insurer seeking to qualify as an eligible surplus line insurer 30 the option of demonstrating that the nonadmitted insurer 31 has capital and surplus under the laws of the nonadmitted 32 insurer’s domiciliary that equal the risk-based capital level 33 requirements required by Iowa law. Current law requires the 34 nonadmitted insurer to demonstrate that the nonadmitted insurer 35 -44- LSB 1333HZ (1) 89 ko/rn 44/ 49
H.F. 838 has capital and surplus under the laws of the nonadmitted 1 insurer’s domiciliary that equal the greater of the minimum 2 capital and surplus required under the laws of this state, or 3 $15 million. 4 Code section 520.12 (certificate of authority —— renewal —— 5 penalties) is amended to change the annual renewal fee for a 6 reciprocal or interinsurance insurer from $500 to be submitted 7 to the treasurer of state, to an administrative fee as 8 established by the commissioner to be paid to the commissioner. 9 The bill amends Code section 521.18 (articles of merger 10 or consolidation) to change the fee for specific companies 11 to file a plan to merge or consolidate from $50 to an amount 12 established by the commissioner. 13 Code section 522.9 (penalties) is amended to allow the 14 commissioner to deposit penalties that have been collected due 15 to insurers’ failure to file a timely own risk and solvency 16 assessment summary report pursuant to Code section 505.7. 17 Current law requires the commissioner to deposit the penalties 18 into the general fund of the state. 19 Code section 522A.5 (counter employee —— license fee) is 20 amended to change the license fee for a counter employee from 21 $50 to an amount established by the commissioner, and removes 22 the cap of $1,000 per calendar year for all combined fees paid 23 by any one rental company. 24 The bill amends Code section 522B.5 (application for 25 license) to change the application fee for a resident insurance 26 producer license from $50 to an amount established by the 27 commissioner. 28 Code section 522E.4 (application and fees) is amended to 29 change the application fee for a portable electronics insurance 30 license from a variable dollar amount to an amount established 31 by the commissioner. The bill also removes the $5,000 cap 32 on the total application fees that can be charged for the 33 licensure of a portable electronics vendor with multiple 34 locations. 35 -45- LSB 1333HZ (1) 89 ko/rn 45/ 49
H.F. 838 The bill makes conforming changes to Code sections 508E.2 1 (definitions), 509.1(9) (form of policy), 509.19(2) (claims 2 and premium disclosures), 515A.2 (definitions), 515A.6 3 (rating organizations), 515A.10 (advisory organizations), 4 515D.4 (notice of cancellation —— reasons), 515D.5 (delivery 5 of notice), 515D.6 (prohibited reasons), 515D.7 (notice of 6 intent), 515D.10 (hearing before commissioner), and 515F.2 7 (definitions). 8 DIVISION III —— CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL 9 SALES. The bill amends Code section 523A.204 (preneed seller 10 annual reporting requirements) to require preneed sellers to 11 file an annual report by April 15 rather than the current date 12 of April 1. The bill changes the filing fee for the report 13 from $10 to an amount established by the commissioner. The 14 bill allows the commissioner to impose a late fee for each 15 day the report is late, up to a maximum of $500. The fee is 16 to be collected by the commissioner and deposited pursuant to 17 Code section 505.7. Code section 523A.501 (preneed sellers —— 18 licenses) is amended to specify that preneed sellers’ licenses 19 expire annually on April 30, rather than the current expiration 20 date of April 15. The bill changes the filing fee for a 21 multijurisdictional preneed seller’s license that is issued by 22 another jurisdiction from $50 to an amount established by the 23 commissioner. 24 The bill amends Code section 523A.502 (sales agents —— 25 licenses) to specify that sales agents’ licenses expire 26 annually on April 30, rather than the current expiration date 27 of April 15, and an agent must have fulfilled continuing 28 education requirements to qualify for renewal. Code section 29 523A.502A (sales agent annual reporting requirements) is 30 amended to require sales agents to file an annual report by 31 April 15, rather than the current date of April 1. The bill 32 allows the commissioner to impose a late fee for each day that 33 the annual report is late, up to a maximum of $500. The fee is 34 to be collected by the commissioner and deposited pursuant to 35 -46- LSB 1333HZ (1) 89 ko/rn 46/ 49
H.F. 838 Code section 505.7. 1 The bill strikes and replaces Code section 523A.601 2 (disclosures) and requires that all purchase agreements, 3 including those delivered or executed by electronic means, 4 identify a sales agent. Purchase agreements must also be 5 reviewed by the sales agent and signed by the purchaser and 6 seller. If a purchase agreement is for mortuary science 7 services, the purchase agreement must also be signed by a 8 person licensed to deliver funeral services. 9 The bill amends Code section 523A.812 (insurance division 10 regulatory fund) to allocate an amount established by the 11 commissioner to the regulatory fund from the filing fees for 12 each purchase agreement reported on a preneed seller’s annual 13 report. Current law requires the commissioner to allocate 14 $2 from each filing fee to the regulatory fund. The bill 15 also removes the prohibition on an annual allocation to the 16 regulatory fund if the current balance exceeds $500,000. 17 Code section 523A.814 (examination fee) is amended to change 18 the examination fee for a seller’s annual report from $5, 19 or other set dollar amount, to an amount established by the 20 commissioner. 21 The bill makes conforming changes to Code section 523A.807 22 (prosecutions for violations of law). 23 DIVISION IV —— RESIDENTIAL AND MOTOR VEHICLE SERVICE 24 CONTRACTS. Code section 523C.3 (application for license) 25 is amended to change the $500 fee for an application for 26 a service company license to a fee established by the 27 commissioner. The current fee of $50 for each motor vehicle 28 service contract form submitted with an application is also 29 changed to a fee as established by the commissioner. Code 30 section 523C.4 (license expiration and renewal) is amended to 31 change the license renewal fee of $500 to a fee established 32 by the commissioner. The bill amends the fee, based on the 33 aggregate amount of payments a licensee received for the sale 34 or issuance of residential service contracts in this state 35 -47- LSB 1333HZ (1) 89 ko/rn 47/ 49
H.F. 838 during the preceding fiscal year, from 3 percent per contract 1 to a percentage established by the commissioner by rule, and 2 also removes the minimum and maximum dollar amount of fees 3 that a licensee is required to submit. In addition, the bill 4 amends the fee for each motor vehicle service contract form 5 submitted with an application from $50 to a fee established by 6 the commissioner. 7 Code section 523C.24 (service company oversight fund) is 8 amended to allow the commissioner to establish the amount 9 deposited in the service company oversight fund from all 10 licensing, examination, renewal, and inspection fees collected 11 under Code chapter 523C. The bill also removes the current 12 $500,000 maximum cap on fees that may be deposited in the fund 13 each fiscal year. 14 DIVISION V —— RETIREMENT FACILITIES. Code section 523D.2A 15 is amended to change the administrative fee submitted by a 16 provider with its certification filing from $100 to an amount 17 established by the commissioner. 18 DIVISION VI —— IOWA CEMETERY ACT. Code section 523I.102 19 (definitions) is amended to exclude specific cemeteries, under 20 the jurisdiction and control of a cemetery commission that 21 has jurisdiction and control over pioneer cemeteries, from 22 the definition of “cemetery” for purposes of Code chapter 23 523I. Code section 523I.213 (insurance division’s enforcement 24 fund) is amended to remove the cap on the allocation to the 25 insurance division’s enforcement fund of examination fees paid 26 by perpetual cemeteries with their annual report. The bill 27 requires the commissioner to deposit all of the examination 28 fees in the enforcement fund. 29 Code section 523I.301 (disclosure requirements —— prices 30 and fees) is amended to require cemeteries to disclose, prior 31 to the sale of interment rights, whether opening and closing 32 services are included in the purchase price. The bill also 33 requires cemeteries to disclose all fees associated with 34 disinterment services. 35 -48- LSB 1333HZ (1) 89 ko/rn 48/ 49
H.F. 838 Code section 523I.309 (interment, relocation, or 1 disinterment of remains) is amended to require cemeteries 2 to disinter and relocate remains interred in a cemetery for 3 the purpose of correcting an error made by the cemetery, 4 unless the interested parties have a written agreement 5 directing otherwise. The cemetery must bear all costs of the 6 disinterment and relocation. Current law permits, but does not 7 require, a cemetery to disinter and relocate such remains, and 8 the cemetery is not required to bear the cost of disinterment 9 and relocation. 10 The bill amends Code section 523I.808 (examination fee) to 11 require an examination fee, established by the commissioner, 12 for each certificate of interment rights issued during the 13 period covered by a perpetual care cemetery’s annual report. 14 Under current law, the fee is $5 per certificate. 15 The bill amends Code section 523I.813 (annual report by 16 perpetual care cemeteries) to allow, rather than to require, 17 the commissioner to impose a late penalty on a perpetual care 18 cemetery that fails to timely file its annual report. 19 DIVISION VII —— STATE INNOVATION WAIVER. The bill 20 authorizes the commissioner to develop by rule a state 21 innovation waiver (waiver) pursuant to section 1332 of the 22 federal Patient Protection and Affordable Care Act, Pub. L. No. 23 111-148, and to submit an application on behalf of the state 24 to the United States secretary of health and human services 25 and the United States secretary of the treasury (secretaries) 26 for the waiver. If a waiver is approved by the secretaries, 27 the commissioner is authorized to implement the waiver in a 28 manner consistent with applicable state and federal law. The 29 bill authorizes the commissioner to adopt emergency rules 30 to implement the waiver and the rules are to be effective 31 immediately upon filing unless a later date is specified in the 32 rules. Any rules that are adopted must also be published as a 33 notice of intended action. 34 -49- LSB 1333HZ (1) 89 ko/rn 49/ 49