Print
Senate Study Bill 1089 - IntroducedA Bill ForAn Act 1relating to the insurance fraud bureau, criminal history
2checks for licenses granted by the insurance division, and
3resolving inconsistencies.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 502.604A, Code 2019, is amended to read
2as follows:
3502.604A Limited law Law enforcement authority.
4The administrator or the administrator’s designee, when
5carrying out the provisions of section 502.603 or 502.604, may
6develop, share, and receive information related to any law
7enforcement purpose, including any criminal investigation.
8The administrator or designee shall not have the authority to
9issue criminal subpoenas or make arrests. The administrator
10or designee shall not be considered a peace officer, including
11as provided in chapter 801. An insurance fraud bureau
12investigator shall be authorized to conduct an investigation
13under article 5 of this chapter and shall have law enforcement
14authority pursuant to section 507E.8.
15 Sec. 2. Section 507E.2, Code 2019, is amended to read as
16follows:
17507E.2 Purpose.
18An insurance fraud bureau is created within the insurance
19division. Upon a reasonable determination by the division,
20by its own inquiries or as a result of complaints a complaint
21 filed with the division, that a person has engaged in, is
22engaging in, or may be engaging in an act or practice that
23violates this chapter or any other provision of the insurance
24 code subject to the jurisdiction of the commissioner, the
25division may administer oaths and affirmations, serve subpoenas
26ordering the attendance of witnesses, and collect evidence
27related to such act or practice.
28 Sec. 3. Section 507E.5, subsection 5, Code 2019, is amended
29to read as follows:
305. An insurance fraud bureau investigator or other staff
31member of the bureau is not subject to subpoena in a civil
32action concerning any matter of which the bureau investigator
33or other staff member has knowledge pursuant to a pending or
34continuing investigation being conducted by the bureau pursuant
35to this chapter.
-1-1 Sec. 4. Section 507E.8, Code 2019, is amended to read as
2follows:
3507E.8 Law enforcement officer status authority.
41. Bureau investigators For purposes of an arrest resulting
5from a criminal violation of any provision of the Code subject
6to the jurisdiction of the commissioner established as a result
7of an investigation pursuant to this chapter, an insurance
8fraud bureau investigator shall have the power authority and
9status of a law enforcement officers who by the nature of their
10duties may be required to perform the duties of a peace officer
11when making arrests for criminal violations established as a
12result of their investigations pursuant to this chapter officer
13pursuant to section 80B.3, subsection 3.
142. The general laws applicable to arrests an arrest by a
15 law enforcement officers officer of the state also apply to
16an insurance fraud bureau investigators investigator. Bureau
17investigators An insurance fraud bureau investigator shall
18have the power to execute arrest warrants and search warrants
19for the same criminal violations, serve subpoenas issued for
20the examination, investigation, and trial of all offenses
21identified through their investigations the course of an
22investigation conducted pursuant to this section, and arrest
23upon probable cause without warrant a person found in the act
24of committing a violation of the provisions a provision of this
25chapter.
26 Sec. 5. Section 508E.3, Code 2019, is amended to read as
27follows:
28508E.3 License requirements.
291. a. A person shall not operate as a viatical settlement
30provider or viatical settlement broker without first obtaining
31a license from the commissioner of the state of residence of
32the viator.
33b. (1) A life insurance producer who has been duly licensed
34as a resident insurance producer with a life line of authority
35in this state or the life insurance producer’s home state for
-2-1at least one year immediately prior to operating as a viatical
2settlement broker and is licensed as a nonresident producer in
3this state shall be deemed to meet the licensing requirements
4of this section and shall be permitted to operate as a viatical
5settlement broker.
6(2) Not later than thirty days from the first day of
7operating as a viatical settlement broker, the life insurance
8producer shall notify the commissioner that the life insurance
9producer is acting as a viatical settlement broker on a form
10prescribed by the commissioner, and shall pay any applicable
11fee of up to one hundred dollars as provided by rules adopted
12by the commissioner. The notification shall include an
13acknowledgment by the life insurance producer that the life
14insurance producer will operate as a viatical settlement broker
15in accordance with this chapter. The notification shall also
16include proof that the life insurance producer is covered by an
17errors and omissions policy for an amount of not less than one
18hundred thousand dollars per occurrence and not less than one
19hundred thousand dollars total annual aggregate for all claims
20during the policy period.
21(3) b. The An insurer that issued the a policy being
22viaticated shall not be responsible for any act or omission of
23a viatical settlement broker or viatical settlement provider
24arising out of or in connection with the viatical settlement
25transaction, unless the insurer receives compensation for the
26placement of a viatical settlement contract from the viatical
27settlement provider or viatical settlement broker in connection
28with the viatical settlement contract.
29c. A person licensed as an attorney, certified public
30accountant, or financial planner accredited by a nationally
31recognized accreditation agency who is retained to represent
32the a viator, whose compensation is not paid directly or
33indirectly by the viatical settlement provider, may negotiate a
34 viatical settlement contracts contract on behalf of the viator
35without having to obtain a license as a viatical settlement
-3-1broker.
22. An application for a viatical settlement provider
3or viatical settlement broker license shall be made to the
4commissioner by the applicant on a form prescribed by the
5commissioner, and the application shall be accompanied by a
6fee of not more than one hundred dollars as provided by rules
7adopted by the commissioner.
83. The A viatical settlement provider or viatical
9settlement broker license term shall be three years and the
10license may be renewed upon payment of the a renewal fee of not
11more than one hundred dollars as provided by rules adopted by
12the commissioner. A failure to pay the fee by the renewal date
13results shall result in expiration of the license.
144. An applicant shall provide information on forms
15required by the commissioner and shall meet all requirements
16pursuant to section 522B.5A if required by the commissioner.
17 The commissioner shall have the authority, at any time, to
18require the an applicant to fully disclose the identity of
19all stockholders, partners, officers, members, and employees,
20and the. The commissioner may, in the exercise of the
21 commissioner’s discretion, refuse to issue a license in the
22name of a legal entity to such applicant if not satisfied that
23any officer, employee, stockholder, partner, or member thereof,
24or employee who may materially influence the applicant’s
25conduct meets the standards of this chapter.
265. A license issued to a legal entity authorizes all
27partners, officers, members, and designated employees to act as
28viatical settlement providers or viatical settlement brokers,
29as applicable, under the license, and all those persons
30shall be named in the application and any supplements to the
31application.
326. 5. Upon the filing of an application and the payment of
33the license fee, the commissioner shall make an investigation
34of investigate each applicant and issue a license if the
35commissioner finds that the applicant complies with all of the
-4-1following:
2a. If a viatical settlement provider, has provided a
3detailed plan of operation.
4b. Is competent and trustworthy and intends to act in good
5faith in the capacity involved by the license applied for.
6c. Has a good business reputation and has had experience,
7training, or education so as to be qualified in the business
8for which the license is applied for.
9d. If a legal entity, provides a certificate of good
10standing from the state of its domicile.
11e. d. If a viatical settlement provider or viatical
12settlement broker, has provided an antifraud plan that meets
13the requirements of pursuant to section 508E.15, subsection 7.
147. 6. The commissioner shall not issue a license to a
15nonresident applicant unless a written designation of an
16agent for service of process is filed and maintained with the
17commissioner or the applicant has filed with the commissioner
18the applicant’s written irrevocable consent that any action
19against the applicant may be commenced against the applicant by
20service of process on the commissioner. If an applicant files
21such consent, service of process made on the commissioner as
22the agent for service of process shall be made as provided in
23section 505.30.
248. 7. A viatical settlement provider or viatical settlement
25broker shall provide to the commissioner new or revised
26information about officers, ten-percent-or-more stockholders,
27partners, directors, members, or designated employees within
28thirty days of the change.
299. 8. An individual licensed as a viatical settlement
30broker shall complete on a triennial basis running concurrent
31with the license term twenty credits of training related to
32viatical settlements and viatical settlement transactions, as
33required by the commissioner; provided, however, that a life
34insurance producer who is operating as a viatical settlement
35broker pursuant to subsection 1, paragraph “b”, shall not be
-5-1subject to the requirements of this subsection. Any person
2failing to meet the requirements of this subsection shall be
3subject to the penalties imposed by the commissioner.
410. 9. Fees collected pursuant to this section shall be
5deposited as provided in section 505.7.
6 Sec. 6. Section 522B.5, subsection 1, unnumbered paragraph
71, Code 2019, is amended to read as follows:
8A person applying for a resident insurance producer license
9shall make application to the commissioner on the uniform
10application, meet all requirements pursuant to section 522B.5A,
11 and declare under penalty of refusal, suspension, or revocation
12of the license that the all statements made in the application
13are true, correct, and complete to the best of the individual’s
14knowledge and belief. Before approving the application, the
15commissioner shall find all of the following:
16 Sec. 7. NEW SECTION. 522B.5A Criminal history check.
171. In determining eligibility for licensure, the
18commissioner is authorized to require an applicant pursuant to
19subsection 2 to provide to the commissioner the applicant’s
20fingerprints and reasonable fees required to perform a
21state criminal history check through the Iowa single contact
22repository and a national criminal history check through
23the federal bureau of investigation. By submitting such
24fingerprints, the applicant authorizes the commissioner to do
25all of the following:
26a. Submit the applicant’s fingerprints to the department of
27public safety for a state criminal history check and submission
28to the federal bureau of investigation for the purpose of
29conducting a national criminal history check.
30b. Receive the results of the state and national criminal
31history checks directly from the department of public safety
32and the federal bureau of investigation.
332. The commissioner is authorized to require a state and
34national criminal history check on each applicant that applies
35for any of the following:
-6- 1a. An initial license in Iowa as a resident insurance
2producer.
3b. An initial license or an additional line of authority
4under a nonresident insurance producer license if a state and
5national criminal history check has not already been completed.
6c. A renewal, reinstatement, or reissuance of a license if
7a producer’s license has been revoked or suspended pursuant to
8section 522B.11.
9d. An initial license as a viatical settlement provider or
10viatical settlement broker in this state.
113. The commissioner shall require an applicant pursuant
12to subsection 2 to submit a full set of fingerprints and any
13other required identifying information to the commissioner on a
14form prescribed by the department of public safety. In lieu
15of the department of public safety, the commissioner shall be
16authorized to receive an applicant’s criminal history check
17information, requested by the department of public safety
18pursuant to this section, directly from the federal bureau of
19investigation.
204. The commissioner may contract with a third-party vendor
21or the department of public safety for the collection and
22transmission of an applicant’s fingerprints for the purpose of
23conducting a state and national criminal history check. The
24commissioner may agree to reasonable fees to be charged by
25the third-party vendor or the department of public safety and
26may require such reasonable fees to be paid by the applicant
27directly to the third-party vendor or the department of public
28safety.
295. The commissioner shall apply security measures
30consistent with the standards of the criminal justice
31information services division of the federal bureau of
32investigation for the storage of fingerprints and necessary
33identifying information, and shall limit the use of such solely
34to the purposes authorized in this section.
356. The results of a criminal history check conducted
-7-1pursuant to this section shall not be considered a public
2record pursuant to chapter 22. An applicant’s fingerprints and
3any criminal history check information shall not be subject to
4subpoena, other than a subpoena issued in a criminal action or
5investigation, shall be confidential by law and privileged, and
6shall not be subject to discovery or be admissible in evidence
7in a private civil action.
8 Sec. 8. Section 522C.5, Code 2019, is amended to read as
9follows:
10522C.5 Application for license.
111. A person applying for a public adjuster license shall
12make application on a uniform individual application or uniform
13business entity application as prescribed by the commissioner
14pursuant to rules adopted under chapter 17A.
152. In determining eligibility for licensure under this
16chapter, the commissioner shall is authorized to require
17a criminal history check pursuant to section 522B.5A for
18 each individual applying for a public adjuster license to
19submit a full set of fingerprints with the application. The
20commissioner shall also require and for each individual who
21will be acting as a public adjuster of a business entity
22applying for licensure under this chapter to submit a full
23set of fingerprints for each individual who will be acting
24as a public adjuster on behalf of the business entity. The
25commissioner shall conduct a state and national criminal
26history record check on each applicant. The commissioner is
27authorized to submit fingerprints and any required fees to the
28state department of public safety, the state attorney general,
29and the federal bureau of investigation for the performance of
30such criminal record checks.
31a. The commissioner may contract for the collection,
32transmission, and resubmission of fingerprints required under
33this section and may contract for a reasonable fingerprinting
34fee to be charged by the contractor for these services. Any
35fees for the collection, transmission, and retention of
-8-1fingerprints submitted pursuant to this subsection shall be
2paid directly to the contractor by the applicant.
3b. The commissioner may waive submission of fingerprints
4by any person who has previously furnished fingerprints if
5those fingerprints are on file with the central repository
6of the national association of insurance commissioners, its
7affiliates, or subsidiaries.
8c. The commissioner may receive criminal history record
9information concerning an applicant that was requested by the
10state department of justice directly from the federal bureau
11of investigation.
12d. The commissioner may submit electronic fingerprint
13records and necessary identifying information to the national
14association of insurance commissioners, its affiliates,
15or subsidiaries for permanent retention in a centralized
16repository whose purpose is to provide state insurance
17commissioners with access to fingerprint records in order to
18perform criminal history record checks.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to the insurance fraud bureau and criminal
23history checks for licenses granted by the insurance division.
24The bill clarifies that the insurance fraud bureau has the
25authority to conduct investigations in all areas under the
26jurisdiction of the insurance commissioner and also clarifies
27the law enforcement authority of an insurance fraud bureau
28investigator.
29The bill authorizes the commissioner to require new
30applicants licensed under the commissioner’s jurisdiction to
31submit fingerprints. The bill does not apply to current Iowa
32producers in good standing.
33The bill provides that by submitting fingerprints an
34applicant is authorizing the commissioner to submit such
35fingerprints to the department of public safety for a state
-9-1criminal history check and for submission to the federal bureau
2of investigation for a national criminal history check. The
3applicant is also authorizing the department of public safety
4and the federal bureau of investigation to send the results of
5the criminal history checks directly to the commissioner. The
6bill also provides that the federal bureau of investigation may
7send the criminal history results directly to the commissioner
8rather than to the department of public safety.
9The bill authorizes the commissioner to contract with a
10third-party vendor or the department of public safety for the
11collection and submission of applicants’ fingerprints. The
12commissioner may agree to reasonable fees to be charged by the
13vendor or by the department of public safety.
14The commissioner is required to apply security measures for
15the storage of fingerprints and must limit use of fingerprints
16to purposes authorized in the bill. The bill provides that an
17applicant’s criminal history check is not a public record under
18Code chapter 22. An applicant’s fingerprints and criminal
19history check are only subject to a subpoena issued in a
20criminal action or investigation, shall be confidential by law
21and privileged, and are not subject to discovery or admissible
22in a private civil action.
23The bill requires any person operating as either a viatical
24settlement provider or viatical settlement broker to be
25licensed and no longer allows an exception for a life insurance
26producer licensed for at least one year as a resident producer
27in this state, or the producer’s home state, to operate as
28a viatical settlement broker. The bill no longer permits a
29license to be issued to a legal entity, as is currently allowed
30by law, to operate as either a viatical settlement provider or
31viatical settlement broker.
-10-ko/rn
2checks for licenses granted by the insurance division, and
3resolving inconsistencies.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 502.604A, Code 2019, is amended to read
2as follows:
3502.604A Limited law Law enforcement authority.
4The administrator or the administrator’s designee, when
5carrying out the provisions of section 502.603 or 502.604, may
6develop, share, and receive information related to any law
7enforcement purpose, including any criminal investigation.
8The administrator or designee shall not have the authority to
9issue criminal subpoenas or make arrests. The administrator
10or designee shall not be considered a peace officer, including
11as provided in chapter 801. An insurance fraud bureau
12investigator shall be authorized to conduct an investigation
13under article 5 of this chapter and shall have law enforcement
14authority pursuant to section 507E.8.
15 Sec. 2. Section 507E.2, Code 2019, is amended to read as
16follows:
17507E.2 Purpose.
18An insurance fraud bureau is created within the insurance
19division. Upon a reasonable determination by the division,
20by its own inquiries or as a result of complaints a complaint
21 filed with the division, that a person has engaged in, is
22engaging in, or may be engaging in an act or practice that
23violates this chapter or any other provision of the insurance
24 code subject to the jurisdiction of the commissioner, the
25division may administer oaths and affirmations, serve subpoenas
26ordering the attendance of witnesses, and collect evidence
27related to such act or practice.
28 Sec. 3. Section 507E.5, subsection 5, Code 2019, is amended
29to read as follows:
305. An insurance fraud bureau investigator or other staff
31member of the bureau is not subject to subpoena in a civil
32action concerning any matter of which the bureau investigator
33or other staff member has knowledge pursuant to a pending or
34continuing investigation being conducted by the bureau pursuant
35to this chapter.
-1-1 Sec. 4. Section 507E.8, Code 2019, is amended to read as
2follows:
3507E.8 Law enforcement officer status authority.
41. Bureau investigators For purposes of an arrest resulting
5from a criminal violation of any provision of the Code subject
6to the jurisdiction of the commissioner established as a result
7of an investigation pursuant to this chapter, an insurance
8fraud bureau investigator shall have the power authority and
9status of a law enforcement officers who by the nature of their
10duties may be required to perform the duties of a peace officer
11when making arrests for criminal violations established as a
12result of their investigations pursuant to this chapter officer
13pursuant to section 80B.3, subsection 3.
142. The general laws applicable to arrests an arrest by a
15 law enforcement officers officer of the state also apply to
16an insurance fraud bureau investigators investigator. Bureau
17investigators An insurance fraud bureau investigator shall
18have the power to execute arrest warrants and search warrants
19for the same criminal violations, serve subpoenas issued for
20the examination, investigation, and trial of all offenses
21identified through their investigations the course of an
22investigation conducted pursuant to this section, and arrest
23upon probable cause without warrant a person found in the act
24of committing a violation of the provisions a provision of this
25chapter.
26 Sec. 5. Section 508E.3, Code 2019, is amended to read as
27follows:
28508E.3 License requirements.
291. a. A person shall not operate as a viatical settlement
30provider or viatical settlement broker without first obtaining
31a license from the commissioner of the state of residence of
32the viator.
33b. (1) A life insurance producer who has been duly licensed
34as a resident insurance producer with a life line of authority
35in this state or the life insurance producer’s home state for
-2-1at least one year immediately prior to operating as a viatical
2settlement broker and is licensed as a nonresident producer in
3this state shall be deemed to meet the licensing requirements
4of this section and shall be permitted to operate as a viatical
5settlement broker.
6(2) Not later than thirty days from the first day of
7operating as a viatical settlement broker, the life insurance
8producer shall notify the commissioner that the life insurance
9producer is acting as a viatical settlement broker on a form
10prescribed by the commissioner, and shall pay any applicable
11fee of up to one hundred dollars as provided by rules adopted
12by the commissioner. The notification shall include an
13acknowledgment by the life insurance producer that the life
14insurance producer will operate as a viatical settlement broker
15in accordance with this chapter. The notification shall also
16include proof that the life insurance producer is covered by an
17errors and omissions policy for an amount of not less than one
18hundred thousand dollars per occurrence and not less than one
19hundred thousand dollars total annual aggregate for all claims
20during the policy period.
21(3) b. The An insurer that issued the a policy being
22viaticated shall not be responsible for any act or omission of
23a viatical settlement broker or viatical settlement provider
24arising out of or in connection with the viatical settlement
25transaction, unless the insurer receives compensation for the
26placement of a viatical settlement contract from the viatical
27settlement provider or viatical settlement broker in connection
28with the viatical settlement contract.
29c. A person licensed as an attorney, certified public
30accountant, or financial planner accredited by a nationally
31recognized accreditation agency who is retained to represent
32the a viator, whose compensation is not paid directly or
33indirectly by the viatical settlement provider, may negotiate a
34 viatical settlement contracts contract on behalf of the viator
35without having to obtain a license as a viatical settlement
-3-1broker.
22. An application for a viatical settlement provider
3or viatical settlement broker license shall be made to the
4commissioner by the applicant on a form prescribed by the
5commissioner, and the application shall be accompanied by a
6fee of not more than one hundred dollars as provided by rules
7adopted by the commissioner.
83. The A viatical settlement provider or viatical
9settlement broker license term shall be three years and the
10license may be renewed upon payment of the a renewal fee of not
11more than one hundred dollars as provided by rules adopted by
12the commissioner. A failure to pay the fee by the renewal date
13results shall result in expiration of the license.
144. An applicant shall provide information on forms
15required by the commissioner and shall meet all requirements
16pursuant to section 522B.5A if required by the commissioner.
17 The commissioner shall have the authority, at any time, to
18require the an applicant to fully disclose the identity of
19all stockholders, partners, officers, members, and employees,
20and the. The commissioner may, in the exercise of the
21 commissioner’s discretion, refuse to issue a license in the
22name of a legal entity to such applicant if not satisfied that
23any officer, employee, stockholder, partner, or member thereof,
24or employee who may materially influence the applicant’s
25conduct meets the standards of this chapter.
265. A license issued to a legal entity authorizes all
27partners, officers, members, and designated employees to act as
28viatical settlement providers or viatical settlement brokers,
29as applicable, under the license, and all those persons
30shall be named in the application and any supplements to the
31application.
326. 5. Upon the filing of an application and the payment of
33the license fee, the commissioner shall make an investigation
34of investigate each applicant and issue a license if the
35commissioner finds that the applicant complies with all of the
-4-1following:
2a. If a viatical settlement provider, has provided a
3detailed plan of operation.
4b. Is competent and trustworthy and intends to act in good
5faith in the capacity involved by the license applied for.
6c. Has a good business reputation and has had experience,
7training, or education so as to be qualified in the business
8for which the license is applied for.
9d. If a legal entity, provides a certificate of good
10standing from the state of its domicile.
11e. d. If a viatical settlement provider or viatical
12settlement broker, has provided an antifraud plan that meets
13the requirements of pursuant to section 508E.15, subsection 7.
147. 6. The commissioner shall not issue a license to a
15nonresident applicant unless a written designation of an
16agent for service of process is filed and maintained with the
17commissioner or the applicant has filed with the commissioner
18the applicant’s written irrevocable consent that any action
19against the applicant may be commenced against the applicant by
20service of process on the commissioner. If an applicant files
21such consent, service of process made on the commissioner as
22the agent for service of process shall be made as provided in
23section 505.30.
248. 7. A viatical settlement provider or viatical settlement
25broker shall provide to the commissioner new or revised
26information about officers, ten-percent-or-more stockholders,
27partners, directors, members, or designated employees within
28thirty days of the change.
299. 8. An individual licensed as a viatical settlement
30broker shall complete on a triennial basis running concurrent
31with the license term twenty credits of training related to
32viatical settlements and viatical settlement transactions, as
33required by the commissioner; provided, however, that a life
34insurance producer who is operating as a viatical settlement
35broker pursuant to subsection 1, paragraph “b”, shall not be
-5-1subject to the requirements of this subsection. Any person
2failing to meet the requirements of this subsection shall be
3subject to the penalties imposed by the commissioner.
410. 9. Fees collected pursuant to this section shall be
5deposited as provided in section 505.7.
6 Sec. 6. Section 522B.5, subsection 1, unnumbered paragraph
71, Code 2019, is amended to read as follows:
8A person applying for a resident insurance producer license
9shall make application to the commissioner on the uniform
10application, meet all requirements pursuant to section 522B.5A,
11 and declare under penalty of refusal, suspension, or revocation
12of the license that the all statements made in the application
13are true, correct, and complete to the best of the individual’s
14knowledge and belief. Before approving the application, the
15commissioner shall find all of the following:
16 Sec. 7. NEW SECTION. 522B.5A Criminal history check.
171. In determining eligibility for licensure, the
18commissioner is authorized to require an applicant pursuant to
19subsection 2 to provide to the commissioner the applicant’s
20fingerprints and reasonable fees required to perform a
21state criminal history check through the Iowa single contact
22repository and a national criminal history check through
23the federal bureau of investigation. By submitting such
24fingerprints, the applicant authorizes the commissioner to do
25all of the following:
26a. Submit the applicant’s fingerprints to the department of
27public safety for a state criminal history check and submission
28to the federal bureau of investigation for the purpose of
29conducting a national criminal history check.
30b. Receive the results of the state and national criminal
31history checks directly from the department of public safety
32and the federal bureau of investigation.
332. The commissioner is authorized to require a state and
34national criminal history check on each applicant that applies
35for any of the following:
-6- 1a. An initial license in Iowa as a resident insurance
2producer.
3b. An initial license or an additional line of authority
4under a nonresident insurance producer license if a state and
5national criminal history check has not already been completed.
6c. A renewal, reinstatement, or reissuance of a license if
7a producer’s license has been revoked or suspended pursuant to
8section 522B.11.
9d. An initial license as a viatical settlement provider or
10viatical settlement broker in this state.
113. The commissioner shall require an applicant pursuant
12to subsection 2 to submit a full set of fingerprints and any
13other required identifying information to the commissioner on a
14form prescribed by the department of public safety. In lieu
15of the department of public safety, the commissioner shall be
16authorized to receive an applicant’s criminal history check
17information, requested by the department of public safety
18pursuant to this section, directly from the federal bureau of
19investigation.
204. The commissioner may contract with a third-party vendor
21or the department of public safety for the collection and
22transmission of an applicant’s fingerprints for the purpose of
23conducting a state and national criminal history check. The
24commissioner may agree to reasonable fees to be charged by
25the third-party vendor or the department of public safety and
26may require such reasonable fees to be paid by the applicant
27directly to the third-party vendor or the department of public
28safety.
295. The commissioner shall apply security measures
30consistent with the standards of the criminal justice
31information services division of the federal bureau of
32investigation for the storage of fingerprints and necessary
33identifying information, and shall limit the use of such solely
34to the purposes authorized in this section.
356. The results of a criminal history check conducted
-7-1pursuant to this section shall not be considered a public
2record pursuant to chapter 22. An applicant’s fingerprints and
3any criminal history check information shall not be subject to
4subpoena, other than a subpoena issued in a criminal action or
5investigation, shall be confidential by law and privileged, and
6shall not be subject to discovery or be admissible in evidence
7in a private civil action.
8 Sec. 8. Section 522C.5, Code 2019, is amended to read as
9follows:
10522C.5 Application for license.
111. A person applying for a public adjuster license shall
12make application on a uniform individual application or uniform
13business entity application as prescribed by the commissioner
14pursuant to rules adopted under chapter 17A.
152. In determining eligibility for licensure under this
16chapter, the commissioner shall is authorized to require
17a criminal history check pursuant to section 522B.5A for
18 each individual applying for a public adjuster license to
19submit a full set of fingerprints with the application. The
20commissioner shall also require and for each individual who
21will be acting as a public adjuster of a business entity
22applying for licensure under this chapter to submit a full
23set of fingerprints for each individual who will be acting
24as a public adjuster on behalf of the business entity. The
25commissioner shall conduct a state and national criminal
26history record check on each applicant. The commissioner is
27authorized to submit fingerprints and any required fees to the
28state department of public safety, the state attorney general,
29and the federal bureau of investigation for the performance of
30such criminal record checks.
31a. The commissioner may contract for the collection,
32transmission, and resubmission of fingerprints required under
33this section and may contract for a reasonable fingerprinting
34fee to be charged by the contractor for these services. Any
35fees for the collection, transmission, and retention of
-8-1fingerprints submitted pursuant to this subsection shall be
2paid directly to the contractor by the applicant.
3b. The commissioner may waive submission of fingerprints
4by any person who has previously furnished fingerprints if
5those fingerprints are on file with the central repository
6of the national association of insurance commissioners, its
7affiliates, or subsidiaries.
8c. The commissioner may receive criminal history record
9information concerning an applicant that was requested by the
10state department of justice directly from the federal bureau
11of investigation.
12d. The commissioner may submit electronic fingerprint
13records and necessary identifying information to the national
14association of insurance commissioners, its affiliates,
15or subsidiaries for permanent retention in a centralized
16repository whose purpose is to provide state insurance
17commissioners with access to fingerprint records in order to
18perform criminal history record checks.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to the insurance fraud bureau and criminal
23history checks for licenses granted by the insurance division.
24The bill clarifies that the insurance fraud bureau has the
25authority to conduct investigations in all areas under the
26jurisdiction of the insurance commissioner and also clarifies
27the law enforcement authority of an insurance fraud bureau
28investigator.
29The bill authorizes the commissioner to require new
30applicants licensed under the commissioner’s jurisdiction to
31submit fingerprints. The bill does not apply to current Iowa
32producers in good standing.
33The bill provides that by submitting fingerprints an
34applicant is authorizing the commissioner to submit such
35fingerprints to the department of public safety for a state
-9-1criminal history check and for submission to the federal bureau
2of investigation for a national criminal history check. The
3applicant is also authorizing the department of public safety
4and the federal bureau of investigation to send the results of
5the criminal history checks directly to the commissioner. The
6bill also provides that the federal bureau of investigation may
7send the criminal history results directly to the commissioner
8rather than to the department of public safety.
9The bill authorizes the commissioner to contract with a
10third-party vendor or the department of public safety for the
11collection and submission of applicants’ fingerprints. The
12commissioner may agree to reasonable fees to be charged by the
13vendor or by the department of public safety.
14The commissioner is required to apply security measures for
15the storage of fingerprints and must limit use of fingerprints
16to purposes authorized in the bill. The bill provides that an
17applicant’s criminal history check is not a public record under
18Code chapter 22. An applicant’s fingerprints and criminal
19history check are only subject to a subpoena issued in a
20criminal action or investigation, shall be confidential by law
21and privileged, and are not subject to discovery or admissible
22in a private civil action.
23The bill requires any person operating as either a viatical
24settlement provider or viatical settlement broker to be
25licensed and no longer allows an exception for a life insurance
26producer licensed for at least one year as a resident producer
27in this state, or the producer’s home state, to operate as
28a viatical settlement broker. The bill no longer permits a
29license to be issued to a legal entity, as is currently allowed
30by law, to operate as either a viatical settlement provider or
31viatical settlement broker.
-10-ko/rn