House File 2582 - Introduced HOUSE FILE 2582 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 701) A BILL FOR An Act relating to investigations of insurance fraud related 1 to adjusters, appraisers, and umpires, and license and 2 financial responsibility requirements for adjusters, and 3 including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6840HV (1) 91 nls/ko

H.F. 2582 Section 1. Section 507E.8, subsection 1, paragraphs a and b, 1 Code 2026, are amended to read as follows: 2 a. For purposes of an arrest resulting from a criminal 3 violation of any provision of the Code subject to the 4 jurisdiction of the commissioner established as a result of an 5 investigation pursuant to this chapter or chapter 502 , 502A , 6 507A , 522C, 522F, 523A , 523C , 523D , or 523I . 7 b. While conducting an investigation or engaged in an 8 assignment authorized by this chapter or chapter 502 , 502A , 9 507A , 522C, 522F, 523A , 523C , 523D , or 523I . 10 Sec. 2. Section 522C.4, subsection 2, Code 2026, is amended 11 by adding the following new paragraph: 12 NEW PARAGRAPH . d. An insurance producer licensed under 13 chapter 522B appointed by, and granted claim authority by, an 14 insurer or self-insurer. 15 Sec. 3. Section 522C.7, Code 2026, is amended to read as 16 follows: 17 522C.7 Financial responsibility. 18 1. Prior to issuance of a license under section 522C.5A , 19 522C.5B , 522C.5C , or 522C.5D , an applicant shall secure 20 evidence of financial responsibility through a surety bond 21 as in a form and manner prescribed by the commissioner. 22 The surety bond shall be executed and issued by an insurer 23 authorized to issue surety bonds in this state and meet the 24 following requirements: 25 a. The surety bond shall be a minimum of fifty thousand 26 dollars. 27 b. The surety bond shall be in favor of the state and 28 specifically authorize recovery by the commissioner on behalf 29 of any person in this state who sustains damages as the result 30 of an adjuster’s erroneous act, failure to act, fraud, or 31 unfair or deceptive act or practice under chapter 507B . 32 c. The surety bond shall not be terminated without prior 33 written notice filed with the division a minimum of thirty 34 calendar days prior to termination. 35 -1- LSB 6840HV (1) 91 nls/ko 1/ 3

H.F. 2582 2. The division may request that an adjuster provide 1 evidence of financial responsibility at any time the division 2 deems relevant. 3 3. An adjuster shall immediately notify the division if the 4 adjuster’s evidence of financial responsibility terminates in 5 violation of subsection 1 , paragraph “c” , or becomes impaired, 6 and the adjuster’s license shall become inactive until the 7 adjuster provides the division with evidence of financial 8 responsibility. 9 Sec. 4. EMERGENCY RULES. The insurance division may adopt 10 emergency rules under section 17A.4, subsection 3, and section 11 17A.5, subsection 2, paragraph “b”, to implement the provisions 12 of this Act amending section 522C.7, and the rules shall be 13 effective immediately upon filing unless a later date is 14 specified in the rules. Any rules adopted in accordance with 15 this section shall also be published as a notice of intended 16 action as provided in section 17A.4. 17 Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate 18 importance, takes effect upon enactment. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill relates to investigations of insurance fraud 23 related to adjusters, appraisers, and umpires, and license and 24 financial responsibility requirements for adjusters. 25 Under current law, an individual employed by the insurance 26 division (division) and designated as a peace officer shall be 27 considered a law enforcement officer for purposes of an arrest 28 resulting from a criminal violation of the Code subject to the 29 jurisdiction of the commissioner of insurance (commissioner) 30 after an investigation pursuant to, or while conducting an 31 investigation or engaged in an assignment authorized by, Code 32 chapter 502, 502A, 507A, 507E, 523A, 523C, 523D, or 523I. 33 The bill also includes an investigation pursuant to, or an 34 investigation or assignment authorized by, Code chapters 522C 35 -2- LSB 6840HV (1) 91 nls/ko 2/ 3

H.F. 2582 (licensing of adjusters) and 522F (licensing and regulation of 1 appraisers and umpires). 2 Under the bill, a license as an adjuster shall not be 3 required for a licensed insurance producer appointed by, and 4 granted claim authority by, an insurer or self-insurer. 5 Under current law, prior to issuance of a license as an 6 adjuster, an applicant must secure evidence of financial 7 responsibility through a surety bond as prescribed by the 8 commissioner, executed and issued by an insurer authorized 9 to issue surety bonds. Additionally, the division may 10 request evidence of financial responsibility at any time and 11 an adjuster shall immediately notify the division if the 12 adjuster’s evidence of financial responsibility terminates, at 13 which time the adjuster’s license shall become inactive. The 14 bill eliminates these requirements and instead requires that, 15 prior to being issued a license as an adjuster, an applicant 16 secure evidence of financial responsibility in a form and 17 manner prescribed by the commissioner. 18 The division may adopt emergency rules to implement the 19 provisions of the bill amending Code section 522C.7. 20 The bill, being deemed of immediate importance, takes effect 21 upon enactment. 22 -3- LSB 6840HV (1) 91 nls/ko 3/ 3