H.F. _____ Section 1. Section 507B.4, subsection 2, Code 2023, is 1 amended to read as follows: 2 2. a. For purposes of subsection 3 , paragraphs “k” , “l” , 3 and “m” , “personal lines property and casualty insurance” means 4 insurance sold to individuals and families primarily for 5 noncommercial purposes as provided in chapter 522B . 6 b. For purposes of subsection 3, paragraph “i” , subparagraph 7 (2), subparagraph division (d), “customer” means a policyholder, 8 potential policyholder, certificate holder, potential 9 certificate holder, an insured, potential insured, or an 10 applicant. 11 Sec. 2. Section 507B.4, subsection 3, paragraph i, 12 subparagraph (2), unnumbered paragraph 1, Code 2023, is amended 13 to read as follows: 14 Nothing in paragraph “g” or subparagraph Subparagraphs (1) 15 of this and (3), and paragraph “i” “g” , shall not be construed 16 as including within the definition of to include any of the 17 following practices in the definition of unfair discrimination 18 or rebates any of the following practices : 19 Sec. 3. Section 507B.4, subsection 3, paragraph i, 20 subparagraph (2), Code 2023, is amended by adding the following 21 new subparagraph division: 22 NEW SUBPARAGRAPH DIVISION . (d) The offer or provision, at 23 no or reduced cost, by an insurer or producer by or through 24 an employee, affiliate, or third-party representative, of a 25 value-added product or service that is not specified in the 26 policy of insurance if the value-added product or service that 27 is offered or provided meets all of the following criteria: 28 (i) The product or service relates to the policy of 29 insurance. 30 (ii) The product or service is designed primarily to 31 accomplish at least one of the following: 32 (A) Provide loss mitigation or loss control. 33 (B) Reduce the customer’s claim costs or claim settlement 34 costs. 35 -1- LSB 1614YC (4) 90 ko/rn 1/ 4

H.F. _____ (C) Provide the customer with education regarding liability 1 risks, or the risk of loss to persons or property. 2 (D) Monitor or assess risk, identify sources of risk, or 3 develop strategies for eliminating or reducing risk. 4 (E) Enhance the customer’s health. 5 (F) Enhance the customer’s financial wellness through 6 education or financial planning services. 7 (G) Provide the customer with post-loss services. 8 (H) Incentivize behavioral changes to improve the health 9 of, or to reduce the risk of death or disability of, a 10 customer. 11 (I) Assist in the administration of employee or retiree 12 benefit insurance coverage. 13 (iii) The cost to the insurer or producer offering or 14 providing the product or service to a customer must be 15 reasonable in comparison to the customer’s premiums and 16 insurance coverage for the policy class. 17 (iv) If the insurer or producer provides the product or 18 service offered, the insurer or producer shall ensure that the 19 customer is provided with contact information for customer 20 service or technical support personnel who can assist the 21 customer with questions regarding the product or service. 22 (v) The availability of the value-added product or service 23 shall be based on documented objective criteria and the 24 value-added product or service must be offered to all customers 25 in a nondiscriminatory manner. The documented objective 26 criteria shall be maintained by the insurer or producer and 27 provided to the commissioner upon request. If an insurer 28 or producer does not have sufficient documented objective 29 criteria, but has a good-faith belief that the product or 30 service meets the criteria under subparagraph subdivision (ii), 31 the insurer or producer may offer or provide the product or 32 service in a nondiscriminatory manner to customers as part of 33 a pilot program or a test program for up to one year. Prior 34 to launching the pilot program or test program, the insurer or 35 -2- LSB 1614YC (4) 90 ko/rn 2/ 4

H.F. _____ producer must notify the commissioner. If the commissioner 1 does not object to the pilot program or test program within 2 twenty-one calendar days from the date of notice, the insurer 3 or producer may proceed with the pilot program or test program. 4 (vi) The commissioner may adopt rules pursuant to chapter 5 17A to administer this subparagraph division. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill relates to value-added products or services 10 offered by insurers or producers. 11 The bill excludes value-added products or services (product 12 or service) offered or provided (offered), at no or reduced 13 cost, by an insurer or producer (insurer) that is not specified 14 in the policy of insurance (policy) from the definition of 15 unfair discrimination or of rebate under Code section 507B.4, 16 if the product or service that is offered relates to the policy 17 that is offered and is designed primarily to accomplish at 18 least one of the criteria detailed in the bill. 19 The cost to the insurer of offering the product or service to 20 a customer must be reasonable in comparison to the customer’s 21 premiums and insurance coverage for the policy class. 22 “Customer” is defined in the bill as a policyholder, potential 23 policyholder, certificate holder, potential certificate holder, 24 an insured, a potential insured, or an applicant. 25 If the insurer provides the product or service offered, the 26 insurer shall ensure that the customer is provided with contact 27 information for customer service or technical support personnel 28 who can assist the customer with questions. The availability 29 of the product or service shall be based on documented 30 objective criteria and the product or service must be offered 31 to all customers in a nondiscriminatory manner. The documented 32 criteria shall be maintained by the insurer and provided to the 33 commissioner of insurance upon request. If an insurer does 34 not have sufficient objective criteria, but has a good-faith 35 -3- LSB 1614YC (4) 90 ko/rn 3/ 4

H.F. _____ belief that the product or service meets the criteria specified 1 in the bill, the insurer may offer or provide the product or 2 service in a nondiscriminatory manner to customers as part 3 of a pilot or test program for up to one year. Prior to 4 launching the pilot or test program, the insurer must notify 5 the commissioner. If the commissioner does not object to the 6 pilot or test program within 21 calendar days from the date of 7 notice, the insurer may proceed with the pilot or test program. 8 The commissioner of insurance may adopt rules to administer 9 the section of the bill amending Code section 507B.4(3)(i)(2). 10 -4- LSB 1614YC (4) 90 ko/rn 4/ 4