H.F. 2232 Section 1. Section 502.806, subsection 3, paragraph b, Code 1 2026, is amended to read as follows: 2 b. Fifteen business days after the date on which the 3 broker-dealer or investment adviser first delayed disbursement 4 of the funds or transaction, unless the administrator requests 5 the broker-dealer or investment adviser to extend the delay, 6 in which case the delay shall expire no more than twenty-five 7 business days after the date on which the broker-dealer or 8 investment adviser first delayed the disbursement of the funds 9 or the transaction extended pursuant to paragraph “c” . 10 Sec. 2. Section 502.806, subsection 3, Code 2026, is amended 11 by adding the following new paragraphs: 12 NEW PARAGRAPH . c. If the internal review under subsection 13 2, paragraph “d” , continues to support the broker-dealer, 14 investment adviser, or qualified individual’s reasonable belief 15 that the disbursement or transaction will likely result in 16 or contribute to the financial exploitation of an eligible 17 adult, the broker-dealer or investment adviser may extend the 18 delay beyond the initial delay under paragraph “b” for no more 19 than twenty-five business days after the date on which the 20 broker-dealer or investment adviser first delayed disbursement 21 of the funds or transaction, unless extended pursuant to 22 paragraph “d” . 23 NEW PARAGRAPH . d. If the internal review under subsection 24 2, paragraph “d” , continues to support the broker-dealer, 25 investment adviser, or qualified individual’s reasonable belief 26 that the disbursement or transaction will likely result in or 27 contribute to the financial exploitation of an eligible adult, 28 the broker-dealer or investment adviser may extend the delay 29 beyond the delay under paragraph “c” for no more than fifty-five 30 business days after the date on which the broker-dealer or 31 investment adviser first delayed disbursement of the funds or 32 transaction. 33 Sec. 3. Section 507E.8, subsection 1, paragraphs a and b, 34 Code 2026, are amended to read as follows: 35 -1- LSB 5465HV (1) 91 nls/ko 1/ 10

H.F. 2232 a. For purposes of an arrest resulting from a criminal 1 violation of any provision of the Code subject to the 2 jurisdiction of the commissioner established as a result of an 3 investigation pursuant to this chapter or chapter 502 , 502A , 4 507A , 508, 523A , 523C , 523D , or 523I . 5 b. While conducting an investigation or engaged in an 6 assignment authorized by this chapter or chapter 502 , 502A , 7 507A , 508, 523A , 523C , 523D , or 523I . 8 Sec. 4. NEW SECTION . 508.101 Definitions. 9 As used in this chapter, unless the context otherwise 10 requires: 11 1. “Disbursement” means an attempt to withdraw money or 12 access a benefit from a life insurance policy, an annuity, or 13 any other policy, contract, or account, irrespective of whether 14 the request is classified as a surrender, loan, withdrawal, 15 partial withdrawal, accelerated benefit, or otherwise. 16 2. “Eligible adult” means the same as defined in section 17 502.801. 18 3. “Financial exploitation” means the same as defined in 19 section 502.801. 20 4. “Permissible third party” means any of the following: 21 a. An individual the eligible adult previously designated 22 who may be contacted about the eligible adult’s policy, 23 contract, or account. 24 b. A person otherwise permitted pursuant to any state or 25 federal law or rule to receive the notification described in 26 section 508.103. 27 5. “Qualified individual” means any of the following: 28 a. An insurance producer who has completed at least two 29 hours of continuing education focused on how to identify 30 suspected or attempted exploitation of an eligible adult, 31 including common signs indicating the financial exploitation of 32 an eligible adult, and how to provide notification regarding 33 the suspected or attempted exploitation of an eligible adult. 34 b. An individual who has completed training pursuant to 35 -2- LSB 5465HV (1) 91 nls/ko 2/ 10

H.F. 2232 section 508.105. 1 Sec. 5. NEW SECTION . 508.102 Notification to commissioner. 2 1. If an insurer or qualified individual reasonably 3 believes financial exploitation of an eligible adult has 4 occurred, was attempted, or is being attempted, the insurer 5 or qualified individual may notify the commissioner when the 6 insurer or qualified individual makes a determination that 7 financial exploitation may have occurred, been attempted, or 8 is being attempted. 9 2. An insurer or qualified individual who, acting 10 reasonably and in good faith, makes a disclosure of information 11 to the commissioner pursuant to this chapter or under chapter 12 507E shall be immune from administrative or civil liability 13 that might otherwise arise from such disclosure or from a 14 failure to notify the eligible adult of the disclosure. This 15 section shall not abrogate or modify any existing statutory or 16 common law privileges or immunities. 17 Sec. 6. NEW SECTION . 508.103 Notification to permissible 18 third party. 19 1. If an insurer or qualified individual reasonably 20 believes financial exploitation of an eligible adult has 21 occurred, was attempted, or is being attempted, the insurer 22 or qualified individual may notify a permissible third party. 23 Notification to a permissible third party is not required prior 24 to the insurer’s, qualified individual’s, commissioner’s, or 25 other relevant agency’s review or investigation into financial 26 exploitation. 27 2. An insurer or qualified individual shall not notify a 28 permissible third party if the insurer or qualified individual 29 reasonably suspects such permissible third party of financial 30 exploitation or other abuse of the eligible adult. 31 3. An eligible adult may voluntarily provide to an insurer 32 contact information for the eligible adult’s permissible third 33 parties. An insurer or qualified individual shall not be held 34 administratively or civilly liable for failing to request 35 -3- LSB 5465HV (1) 91 nls/ko 3/ 10

H.F. 2232 the contact information for the eligible adult’s permissible 1 third parties. An insurer or qualified individual who, acting 2 reasonably and in good faith, complies with this section shall 3 be immune from administrative or civil liability that may 4 arise from disclosing the eligible adult’s information to a 5 permissible third party. 6 Sec. 7. NEW SECTION . 508.104 Disbursements or transactions 7 —— delay. 8 1. If an insurer or qualified individual reasonably 9 believes a disbursement or transaction is likely to result in, 10 or contribute to, the financial exploitation of an eligible 11 adult, the insurer or qualified individual may initiate an 12 internal review of the requested disbursement or transaction. 13 2. An insurer may delay a disbursement or transaction 14 from an eligible adult’s policy, contract, or account, or a 15 policy, contract, or account on which an eligible adult is a 16 beneficiary, if all of the following apply: 17 a. The insurer or qualified individual reasonably believes, 18 after initiating an internal review under subsection 1, that 19 the requested disbursement or transaction will likely result 20 in or contribute to the financial exploitation of the eligible 21 adult. 22 b. Immediately, but in no event more than seven business 23 days after the disbursement or transaction is delayed, the 24 insurer provides written notification of the delay and the 25 reason for the delay to all persons authorized to transact 26 business on the policy, contract, or account. An insurer or 27 qualified individual shall not notify a person authorized to 28 transact business on the policy, contract, or account if the 29 insurer or qualified individual reasonably believes the person 30 has committed financial exploitation, attempted financial 31 exploitation, committed or attempted insurance fraud, or 32 committed or attempted other abuse of the eligible adult. 33 c. Within seven business days after the disbursement or 34 transaction is delayed, the insurer notifies the commissioner 35 -4- LSB 5465HV (1) 91 nls/ko 4/ 10

H.F. 2232 of the delay and provides to the commissioner the reason 1 for the delay, including the status of the internal review 2 initiated under subsection 1. 3 d. The insurer continues the internal review of the 4 suspected or attempted financial exploitation of the eligible 5 adult, as necessary, and provides the commissioner with updates 6 upon request. 7 3. Any delay of a disbursement or transaction authorized by 8 this section will expire upon the first to occur of any of the 9 following: 10 a. A final determination by the insurer that the 11 disbursement or transaction will not result in or contribute to 12 financial exploitation of the eligible adult. 13 b. Fifteen business days after the date on which the insurer 14 first delayed disbursement of the funds or the transaction, 15 unless extended pursuant to paragraph “c” . 16 c. Provided the internal review under subsection 2, 17 paragraph “d” , continues to support the insurer or qualified 18 individual’s reasonable belief that the disbursement or 19 transaction will likely result in or contribute to the 20 financial exploitation of an eligible adult, the insurer may 21 extend the delay beyond the initial delay under paragraph “b” 22 for no more than twenty-five business days after the date on 23 which the insurer first delayed disbursement of the funds or 24 the transaction, unless extended pursuant to paragraph “d” . 25 d. Provided the internal review under subsection 2, 26 paragraph “d” , continues to support the insurer or qualified 27 individual’s reasonable belief that the disbursement or 28 transaction will likely result in or contribute to the 29 financial exploitation of an eligible adult, the insurer may 30 extend the delay beyond the delay under paragraph “c” for no 31 more than fifty-five business days after the date on which the 32 insurer first delayed disbursement of the funds or transaction. 33 4. Notwithstanding subsection 3, upon petition of the 34 commissioner, the insurer who initiated a delay pursuant to 35 -5- LSB 5465HV (1) 91 nls/ko 5/ 10

H.F. 2232 this section, or another interested party, a court of competent 1 jurisdiction may enter an order terminating, extending, or 2 modifying the delay of the disbursement or transaction and may 3 order any other protective relief deemed necessary. 4 5. The commissioner may adopt rules pursuant to chapter 5 17A regarding the form and manner of notifications under this 6 section. 7 6. An insurer or qualified individual who, acting 8 reasonably and in good faith, complies with the requirements 9 of this section or chapter 507E shall be immune from 10 administrative or civil liability that may arise from a delay 11 in a disbursement or transaction initiated pursuant to this 12 section. 13 Sec. 8. NEW SECTION . 508.105 Training requirements. 14 1. An insurer shall provide training to supervisors and 15 employees employed by the insurer who handle or advise on 16 complaints, possible fraud, and investigations no later than 17 June 30, 2027. The training shall include instruction on all 18 of the following: 19 a. Identifying suspected or attempted exploitation 20 of an eligible adult, including common signs indicating 21 financial exploitation of an eligible adult and how to provide 22 notification regarding the suspected or attempted exploitation 23 of an eligible adult. 24 b. Privacy and confidentiality requirements. 25 2. An insurer shall provide the training required under 26 subsection 1 as soon as reasonably practicable after the date 27 a supervisor or employee begins employment with or becomes 28 affiliated or associated with the insurer, but no later than 29 one year after that date. 30 3. An insurer shall not be required to provide training 31 under this section to a qualified individual employed by the 32 insurer. 33 4. The commissioner may adopt rules pursuant to chapter 17A 34 specifying the content and method of training required under 35 -6- LSB 5465HV (1) 91 nls/ko 6/ 10

H.F. 2232 this section. 1 Sec. 9. NEW SECTION . 508.106 Records. 2 An insurer shall provide access to or copies of records 3 that are relevant to the suspected or attempted financial 4 exploitation of an eligible adult to the commissioner and 5 to law enforcement, either as part of a referral to the 6 commissioner or law enforcement, or upon the request of the 7 commissioner or law enforcement pursuant to an investigation. 8 The records may include historical records as well as records 9 relating to the most recent transactions and disbursement 10 requests from the policies, contracts, or accounts that may 11 indicate financial exploitation of an eligible adult. All 12 records made available to the commissioner or law enforcement 13 pursuant to this section shall be considered confidential 14 public records under chapter 22 and shall not be available 15 for examination by the public pursuant to section 22.2. This 16 section shall not be construed to limit or otherwise impede the 17 authority of the commissioner to access or examine the books 18 and records of insurers as otherwise provided by law. 19 Sec. 10. CODE EDITOR DIRECTIVE. The Code editor is directed 20 to designate sections 508.1 through 508.39, as amended by 21 this Act, as subchapter I of chapter 508 entitled “General 22 Provisions”, and to designate sections 508.101 through 508.106, 23 as enacted by this Act, as subchapter II of chapter 508 24 entitled “Financial Exploitation of Eligible Adults”. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill relates to life insurance, permissible third 29 parties, and financial exploitation of eligible adults. 30 Under current law, a delay of a disbursement or transaction 31 involving the money, assets, or property of an eligible adult 32 will expire upon the first to occur of: (1) a determination by 33 the broker-dealer or investment adviser that the disbursement 34 or transaction will not result in or contribute to financial 35 -7- LSB 5465HV (1) 91 nls/ko 7/ 10

H.F. 2232 exploitation of the eligible adult, or (2) 15 days after the 1 first delay, unless extended, in which case the delay shall 2 expire no more than 25 days after the date the disbursement or 3 transaction was first delayed. Under the bill, any delay of a 4 disbursement or transaction will expire upon the first to occur 5 of: (1) a determination by the broker-dealer or investment 6 adviser that the disbursement or transaction will not result in 7 or contribute to financial exploitation, or (2) 15 days after 8 the date the broker-dealer or investment adviser first delayed 9 the disbursement or transaction, unless extended, (3) if the 10 15-day delay is extended, 25 days after the date of the initial 11 delay, or (4) if the 25-day delay is extended, 55 days after 12 the date of the initial delay. “Eligible adult” and “qualified 13 individual” are defined by the bill. 14 Under the bill, if an insurer or qualified individual 15 reasonably believes financial exploitation of an eligible 16 adult has occurred, was attempted, or is being attempted, the 17 insurer or qualified individual may notify the commissioner of 18 insurance (commissioner) when it is determined that financial 19 exploitation may have occurred, been attempted, or is being 20 attempted. An insurer or qualified individual who makes a 21 disclosure of information to the commissioner under the bill 22 or under Code chapter 507E shall be immune from administrative 23 or civil liability for failure to notify the eligible adult of 24 the disclosure. 25 If an insurer or qualified individual reasonably believes 26 financial exploitation of an eligible adult has occurred, was 27 attempted, or is being attempted, the insurer or qualified 28 individual may notify a permissible third party designated 29 by the eligible adult, but is not required to, prior to a 30 review or investigation into the financial exploitation. An 31 insurer or qualified individual shall not notify a permissible 32 third party that they are suspected of financial exploitation 33 or other abuse of the eligible adult. An eligible adult 34 may voluntarily provide contact information for permissible 35 -8- LSB 5465HV (1) 91 nls/ko 8/ 10

H.F. 2232 third parties to an insurer, but an insurer or qualified 1 individual shall not be held liable for failing to request such 2 information. 3 An insurer or qualified individual who, acting reasonably 4 and in good faith, complies with the bill shall be immune 5 from administrative or civil liability that may arise from 6 disclosing the eligible adult’s information to a permissible 7 third party. 8 If an insurer or qualified individual reasonably believes 9 a disbursement or transaction is likely to result in, or 10 contribute to, the financial exploitation of an eligible 11 adult, they may initiate an internal review of the requested 12 disbursement or transaction. The insurer may delay a 13 disbursement or transaction from an eligible adult’s policy, 14 contract, or account, or a policy, contract, or account on 15 which an eligible adult is a beneficiary, if the insurer or 16 qualified individual reasonably believes the disbursement 17 or transaction will likely result in or contribute to the 18 financial exploitation of an eligible adult; the insurer 19 provides written notification of the delay and the reason for 20 the delay to all persons authorized to transact business on 21 the policy, contract, or account, except if such person is 22 reasonably believed to have committed or attempted financial 23 exploitation, insurance fraud, or other abuse of the eligible 24 adult; the insurer notifies the commissioner of the delay 25 and provides the reason for the delay; and the insurer 26 continues the internal review of the suspected or attempted 27 financial exploitation of the eligible adult and provides the 28 commissioner with updates upon request. 29 Delay of a disbursement or transaction will expire upon 30 the first to occur of a final determination by the insurer 31 that the disbursement or transaction will not result in or 32 contribute to financial exploitation, 15 days after the date on 33 which the insurer first delayed disbursement of the funds or 34 the transaction, unless extended, 25 business days after the 35 -9- LSB 5465HV (1) 91 nls/ko 9/ 10

H.F. 2232 date on which the insurer first delayed disbursement, unless 1 extended, or 55 days after the date on which the insurer first 2 delayed disbursement. Upon petition of the commissioner, the 3 insurer, or another interested party, a court of competent 4 jurisdiction may enter an order terminating, extending, or 5 modifying the delay of the disbursement or transaction and may 6 order any other protective relief necessary. 7 The commissioner may adopt rules regarding the form 8 and manner of notifications under the bill. An insurer or 9 qualified individual who complies with the requirements of the 10 bill shall be immune from any liability that may arise from 11 such delay in a disbursement or transaction. 12 An insurer shall provide training to supervisors and 13 employees employed by the insurer, except employees who are 14 qualified individuals, who handle or advise on complaints, 15 possible fraud, and investigations no later than June 30, 16 2027. The training shall include the requirements detailed in 17 the bill. An insurer shall provide the required training as 18 soon as reasonably practicable, but at least within one year 19 after the date a supervisor or employee begins employment with 20 or becomes affiliated or associated with the insurer. The 21 commissioner may adopt rules specifying the content and method 22 of training. 23 An insurer shall provide access to or copies of records 24 that are relevant to financial exploitation of an eligible 25 adult to the commissioner and to law enforcement, either as 26 part of a referral or upon the request of the commissioner or 27 law enforcement pursuant to an investigation. The records may 28 include historical records as well as records relating to the 29 most recent financial exploitation of an eligible adult. All 30 records made available to the commissioner or law enforcement 31 shall be considered confidential public records and shall not 32 be available for examination by the public. 33 The bill makes conforming changes to Code section 34 507E.8(1)(a) and (b) (law enforcement authority). 35 -10- LSB 5465HV (1) 91 nls/ko 10/ 10