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Senate File 331 - 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 Insurance fraud bureau.
181. An 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.
282. The commissioner shall dedicate a minimum of two
29insurance fraud bureau investigators to the investigation of
30suspected workers’ compensation fraud.
31 Sec. 3. Section 507E.5, subsection 5, Code 2019, is amended
32to read as follows:
335. An insurance fraud bureau investigator or other staff
34member of the bureau is not subject to subpoena in a civil
35action concerning any matter of which the bureau investigator
-1-1or other staff member has knowledge pursuant to a pending or
2continuing investigation being conducted by the bureau pursuant
3to this chapter.
4 Sec. 4. Section 507E.8, Code 2019, is amended to read as
5follows:
6507E.8 Law enforcement officer status authority.
71. Bureau investigators For purposes of an arrest resulting
8from a criminal violation of any provision of the Code subject
9to the jurisdiction of the commissioner established as a result
10of an investigation pursuant to this chapter, an insurance
11fraud bureau investigator shall have the power authority and
12status of a law enforcement officers who by the nature of their
13duties may be required to perform the duties of a peace officer
14when making arrests for criminal violations established as a
15result of their investigations pursuant to this chapter officer
16pursuant to section 80B.3, subsection 3.
172. The general laws applicable to arrests an arrest by a
18 law enforcement officers officer of the state also apply to
19an insurance fraud bureau investigators investigator. Bureau
20investigators An insurance fraud bureau investigator shall
21have the power to execute arrest warrants and search warrants
22for the same criminal violations, serve subpoenas issued for
23the examination, investigation, and trial of all offenses
24identified through their investigations the course of an
25investigation conducted pursuant to this section, and arrest
26upon probable cause without warrant a person found in the act
27of committing a violation of the provisions a provision of this
28chapter.
29 Sec. 5. Section 508E.3, Code 2019, is amended to read as
30follows:
31508E.3 License requirements.
321. a. A person shall not operate as a viatical settlement
33provider or viatical settlement broker without first obtaining
34a license from the commissioner of the state of residence of
35the viator.
-2- 1b. (1) A life insurance producer who has been duly licensed
2as a resident insurance producer with a life line of authority
3in this state or the life insurance producer’s home state for
4at least one year immediately prior to operating as a viatical
5settlement broker and is licensed as a nonresident producer in
6this state shall be deemed to meet the licensing requirements
7of this section and shall be permitted to operate as a viatical
8settlement broker.
9(2) Not later than thirty days from the first day of
10operating as a viatical settlement broker, the life insurance
11producer shall notify the commissioner that the life insurance
12producer is acting as a viatical settlement broker on a form
13prescribed by the commissioner, and shall pay any applicable
14fee of up to one hundred dollars as provided by rules adopted
15by the commissioner. The notification shall include an
16acknowledgment by the life insurance producer that the life
17insurance producer will operate as a viatical settlement broker
18in accordance with this chapter. The notification shall also
19include proof that the life insurance producer is covered by an
20errors and omissions policy for an amount of not less than one
21hundred thousand dollars per occurrence and not less than one
22hundred thousand dollars total annual aggregate for all claims
23during the policy period.
24(3) b. The An insurer that issued the a policy being
25viaticated shall not be responsible for any act or omission of
26a viatical settlement broker or viatical settlement provider
27arising out of or in connection with the viatical settlement
28transaction, unless the insurer receives compensation for the
29placement of a viatical settlement contract from the viatical
30settlement provider or viatical settlement broker in connection
31with the viatical settlement contract.
32c. A person licensed as an attorney, certified public
33accountant, or financial planner accredited by a nationally
34recognized accreditation agency who is retained to represent
35the a viator, whose compensation is not paid directly or
-3-1indirectly by the viatical settlement provider, may negotiate a
2 viatical settlement contracts contract on behalf of the viator
3without having to obtain a license as a viatical settlement
4broker.
52. An application for a viatical settlement provider
6or viatical settlement broker license shall be made to the
7commissioner by the applicant on a form prescribed by the
8commissioner, and the application shall be accompanied by a
9fee of not more than one hundred dollars as provided by rules
10adopted by the commissioner.
113. The A viatical settlement provider or viatical
12settlement broker license term shall be three years and the
13license may be renewed upon payment of the a renewal fee of not
14more than one hundred dollars as provided by rules adopted by
15the commissioner. A failure to pay the fee by the renewal date
16results shall result in expiration of the license.
174. An applicant shall provide information on forms
18required by the commissioner and shall meet all requirements
19pursuant to section 522B.5A if required by the commissioner.
20 The commissioner shall have the authority, at any time, to
21require the an applicant to fully disclose the identity of
22all stockholders, partners, officers, members, and employees,
23and the. The commissioner may, in the exercise of the
24 commissioner’s discretion, refuse to issue a license in the
25name of a legal entity to such applicant if not satisfied that
26any officer, employee, stockholder, partner, or member thereof,
27or employee who may materially influence the applicant’s
28conduct meets the standards of this chapter.
295. A license issued to a legal entity authorizes all
30partners, officers, members, and designated employees to act as
31viatical settlement providers or viatical settlement brokers,
32as applicable, under the license, and all those persons
33shall be named in the application and any supplements to the
34application.
356. 5. Upon the filing of an application and the payment of
-4-1the license fee, the commissioner shall make an investigation
2of investigate each applicant and issue a license if the
3commissioner finds that the applicant complies with all of the
4following:
5a. If a viatical settlement provider, has provided a
6detailed plan of operation.
7b. Is competent and trustworthy and intends to act in good
8faith in the capacity involved by the license applied for.
9c. Has a good business reputation and has had experience,
10training, or education so as to be qualified in the business
11for which the license is applied for.
12d. If a legal entity, provides a certificate of good
13standing from the state of its domicile.
14e. d. If a viatical settlement provider or viatical
15settlement broker, has provided an antifraud plan that meets
16the requirements of pursuant to section 508E.15, subsection 7.
177. 6. The commissioner shall not issue a license to a
18nonresident applicant unless a written designation of an
19agent for service of process is filed and maintained with the
20commissioner or the applicant has filed with the commissioner
21the applicant’s written irrevocable consent that any action
22against the applicant may be commenced against the applicant by
23service of process on the commissioner. If an applicant files
24such consent, service of process made on the commissioner as
25the agent for service of process shall be made as provided in
26section 505.30.
278. 7. A viatical settlement provider or viatical settlement
28broker shall provide to the commissioner new or revised
29information about officers, ten-percent-or-more stockholders,
30partners, directors, members, or designated employees within
31thirty days of the change.
329. 8. An individual licensed as a viatical settlement
33broker shall complete on a triennial basis running concurrent
34with the license term twenty credits of training related to
35viatical settlements and viatical settlement transactions, as
-5-1required by the commissioner; provided, however, that a life
2insurance producer who is operating as a viatical settlement
3broker pursuant to subsection 1, paragraph “b”, shall not be
4subject to the requirements of this subsection. Any person
5failing to meet the requirements of this subsection shall be
6subject to the penalties imposed by the commissioner.
710. 9. Fees collected pursuant to this section shall be
8deposited as provided in section 505.7.
9 Sec. 6. Section 522B.5, subsection 1, unnumbered paragraph
101, Code 2019, is amended to read as follows:
11A person applying for a resident insurance producer license
12shall make application to the commissioner on the uniform
13application, meet all requirements pursuant to section 522B.5A,
14 and declare under penalty of refusal, suspension, or revocation
15of the license that the all statements made in the application
16are true, correct, and complete to the best of the individual’s
17knowledge and belief. Before approving the application, the
18commissioner shall find all of the following:
19 Sec. 7. NEW SECTION. 522B.5A Criminal history check.
201. In determining eligibility for licensure, the
21commissioner is authorized to require an applicant pursuant to
22subsection 2 to provide to the commissioner the applicant’s
23fingerprints and reasonable fees required to perform a state
24criminal history check through the department of public safety,
25division of criminal investigation, and a national criminal
26history check through the federal bureau of investigation. By
27submitting such fingerprints, the applicant authorizes the
28commissioner to do all of the following:
29a. Submit the applicant’s fingerprints to the department
30of public safety, division of criminal investigation, for
31submission to the federal bureau of investigation for the
32purpose of conducting a national criminal history check.
33b. Receive the results of the state and national criminal
34history checks.
352. The commissioner is authorized to require a state and
-6-1national criminal history check on each applicant that applies
2for any of the following:
3a. An initial license in Iowa as a resident insurance
4producer.
5b. An initial license or an additional line of authority
6under a nonresident insurance producer license if a state and
7national criminal history check has not already been completed.
8c. A renewal, reinstatement, or reissuance of a license
9if the license of a producer has been revoked or suspended
10pursuant to section 522B.11, the license of a public adjuster
11has been revoked or suspended pursuant to section 522C.6, or
12the license of a viatical settlement provider or viatical
13settlement broker has been revoked or suspended pursuant to
14section 508E.4.
15d. An initial license as a viatical settlement provider or
16viatical settlement broker in this state.
17e. An initial license as a public adjuster in this state.
183. The commissioner shall require an applicant pursuant to
19subsection 2 to submit a full set of fingerprints and any other
20required identifying information to the commissioner on a form
21prescribed by the department of public safety.
224. The commissioner may contract with a third-party
23vendor for the collection and transmission of an applicant’s
24fingerprints for the purpose of conducting a state and
25national criminal history check. The commissioner may agree
26to reasonable fees to be charged by the third-party vendor and
27may require such reasonable fees to be paid by the applicant
28directly to the third-party vendor.
295. The results of a criminal history check conducted
30pursuant to this section shall not be considered a public
31record pursuant to chapter 22. An applicant’s fingerprints and
32any criminal history check information shall not be subject to
33subpoena, other than a subpoena issued in a criminal action or
34investigation, shall be confidential by law and privileged, and
35shall not be subject to discovery or be admissible in evidence
-7-1in a private civil action.
2 Sec. 8. Section 522C.5, Code 2019, is amended to read as
3follows:
4522C.5 Application for license.
51. A person applying for a public adjuster license shall
6make application on a uniform individual application or uniform
7business entity application as prescribed by the commissioner
8pursuant to rules adopted under chapter 17A.
92. In determining eligibility for licensure under this
10chapter, the commissioner shall is authorized to require
11a criminal history check pursuant to section 522B.5A for
12 each individual applying for a public adjuster license to
13submit a full set of fingerprints with the application. The
14commissioner shall also require and for each individual who
15will be acting as a public adjuster of a business entity
16applying for licensure under this chapter to submit a full
17set of fingerprints for each individual who will be acting
18as a public adjuster on behalf of the business entity. The
19commissioner shall conduct a state and national criminal
20history record check on each applicant. The commissioner is
21authorized to submit fingerprints and any required fees to the
22state department of public safety, the state attorney general,
23and the federal bureau of investigation for the performance of
24such criminal record checks.
25a. The commissioner may contract for the collection,
26transmission, and resubmission of fingerprints required under
27this section and may contract for a reasonable fingerprinting
28fee to be charged by the contractor for these services. Any
29fees for the collection, transmission, and retention of
30fingerprints submitted pursuant to this subsection shall be
31paid directly to the contractor by the applicant.
32b. The commissioner may waive submission of fingerprints
33by any person who has previously furnished fingerprints if
34those fingerprints are on file with the central repository
35of the national association of insurance commissioners, its
-8-1affiliates, or subsidiaries.
2c. The commissioner may receive criminal history record
3information concerning an applicant that was requested by the
4state department of justice directly from the federal bureau
5of investigation.
6d. The commissioner may submit electronic fingerprint
7records and necessary identifying information to the national
8association of insurance commissioners, its affiliates,
9or subsidiaries for permanent retention in a centralized
10repository whose purpose is to provide state insurance
11commissioners with access to fingerprint records in order to
12perform criminal history record checks.
13EXPLANATION
14The inclusion of this explanation does not constitute agreement with
15the explanation’s substance by the members of the general assembly.
16This bill relates to the insurance fraud bureau and criminal
17history checks for licenses granted by the insurance division.
18The bill clarifies that the insurance fraud bureau has the
19authority to conduct investigations in all areas under the
20jurisdiction of the insurance commissioner and also clarifies
21the law enforcement authority of an insurance fraud bureau
22investigator. The bill requires the commissioner to dedicate
23a minimum of two insurance fraud bureau investigators to the
24investigation of suspected workers’ compensation fraud.
25The bill authorizes the commissioner to require new
26applicants licensed under the commissioner’s jurisdiction to
27submit fingerprints. The bill does not apply to current Iowa
28producers in good standing.
29The bill authorizes the commissioner to require a state
30and national criminal history check on each applicant that
31applies for an initial license in Iowa as a resident insurance
32producer, an initial license or an additional line of authority
33under a nonresident insurance producer license if a state
34and national criminal history check has not already been
35completed, an initial license as a viatical settlement provider
-9-1or a viatical settlement broker in the state, and an initial
2license as a public adjuster in the state. In addition,
3the commissioner may require a state and national criminal
4history check for a producer, a public adjuster, or a viatical
5settlement provider or viatical settlement broker that applies
6for a renewal, reinstatement, or reissuance of a license that
7has been revoked or suspended.
8The bill provides that by submitting fingerprints an
9applicant is authorizing the commissioner to submit the
10fingerprints to the department of public safety for a state
11criminal history check and for submission to the federal bureau
12of investigation for a national criminal history check. The
13applicant is also authorizing the commissioner to receive the
14results of the state and national criminal history check.
15The bill authorizes the commissioner to contract with
16a third-party vendor for the collection and submission of
17applicants’ fingerprints. The commissioner may agree to
18reasonable fees to be charged by the vendor and may require
19the fee to be paid by an applicant directly to the third-party
20vendor.
21The bill provides that the results of an applicant’s
22criminal history check are not a public record under Code
23chapter 22. An applicant’s fingerprints and criminal history
24check are only subject to a subpoena issued in a criminal
25action or investigation, shall be confidential by law and
26privileged, and are not subject to discovery or admissible in
27a private civil action.
28The bill requires any person operating as either a viatical
29settlement provider or viatical settlement broker to be
30licensed and no longer allows an exception for a life insurance
31producer licensed for at least one year as a resident producer
32in this state, or the producer’s home state, to operate as
33a viatical settlement broker. The bill no longer permits a
34license to be issued to a legal entity, as is currently allowed
35by law, to operate as either a viatical settlement provider or
-10-1viatical settlement broker.
-11-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 Insurance fraud bureau.
181. An 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.
282. The commissioner shall dedicate a minimum of two
29insurance fraud bureau investigators to the investigation of
30suspected workers’ compensation fraud.
31 Sec. 3. Section 507E.5, subsection 5, Code 2019, is amended
32to read as follows:
335. An insurance fraud bureau investigator or other staff
34member of the bureau is not subject to subpoena in a civil
35action concerning any matter of which the bureau investigator
-1-1or other staff member has knowledge pursuant to a pending or
2continuing investigation being conducted by the bureau pursuant
3to this chapter.
4 Sec. 4. Section 507E.8, Code 2019, is amended to read as
5follows:
6507E.8 Law enforcement officer status authority.
71. Bureau investigators For purposes of an arrest resulting
8from a criminal violation of any provision of the Code subject
9to the jurisdiction of the commissioner established as a result
10of an investigation pursuant to this chapter, an insurance
11fraud bureau investigator shall have the power authority and
12status of a law enforcement officers who by the nature of their
13duties may be required to perform the duties of a peace officer
14when making arrests for criminal violations established as a
15result of their investigations pursuant to this chapter officer
16pursuant to section 80B.3, subsection 3.
172. The general laws applicable to arrests an arrest by a
18 law enforcement officers officer of the state also apply to
19an insurance fraud bureau investigators investigator. Bureau
20investigators An insurance fraud bureau investigator shall
21have the power to execute arrest warrants and search warrants
22for the same criminal violations, serve subpoenas issued for
23the examination, investigation, and trial of all offenses
24identified through their investigations the course of an
25investigation conducted pursuant to this section, and arrest
26upon probable cause without warrant a person found in the act
27of committing a violation of the provisions a provision of this
28chapter.
29 Sec. 5. Section 508E.3, Code 2019, is amended to read as
30follows:
31508E.3 License requirements.
321. a. A person shall not operate as a viatical settlement
33provider or viatical settlement broker without first obtaining
34a license from the commissioner of the state of residence of
35the viator.
-2- 1b. (1) A life insurance producer who has been duly licensed
2as a resident insurance producer with a life line of authority
3in this state or the life insurance producer’s home state for
4at least one year immediately prior to operating as a viatical
5settlement broker and is licensed as a nonresident producer in
6this state shall be deemed to meet the licensing requirements
7of this section and shall be permitted to operate as a viatical
8settlement broker.
9(2) Not later than thirty days from the first day of
10operating as a viatical settlement broker, the life insurance
11producer shall notify the commissioner that the life insurance
12producer is acting as a viatical settlement broker on a form
13prescribed by the commissioner, and shall pay any applicable
14fee of up to one hundred dollars as provided by rules adopted
15by the commissioner. The notification shall include an
16acknowledgment by the life insurance producer that the life
17insurance producer will operate as a viatical settlement broker
18in accordance with this chapter. The notification shall also
19include proof that the life insurance producer is covered by an
20errors and omissions policy for an amount of not less than one
21hundred thousand dollars per occurrence and not less than one
22hundred thousand dollars total annual aggregate for all claims
23during the policy period.
24(3) b. The An insurer that issued the a policy being
25viaticated shall not be responsible for any act or omission of
26a viatical settlement broker or viatical settlement provider
27arising out of or in connection with the viatical settlement
28transaction, unless the insurer receives compensation for the
29placement of a viatical settlement contract from the viatical
30settlement provider or viatical settlement broker in connection
31with the viatical settlement contract.
32c. A person licensed as an attorney, certified public
33accountant, or financial planner accredited by a nationally
34recognized accreditation agency who is retained to represent
35the a viator, whose compensation is not paid directly or
-3-1indirectly by the viatical settlement provider, may negotiate a
2 viatical settlement contracts contract on behalf of the viator
3without having to obtain a license as a viatical settlement
4broker.
52. An application for a viatical settlement provider
6or viatical settlement broker license shall be made to the
7commissioner by the applicant on a form prescribed by the
8commissioner, and the application shall be accompanied by a
9fee of not more than one hundred dollars as provided by rules
10adopted by the commissioner.
113. The A viatical settlement provider or viatical
12settlement broker license term shall be three years and the
13license may be renewed upon payment of the a renewal fee of not
14more than one hundred dollars as provided by rules adopted by
15the commissioner. A failure to pay the fee by the renewal date
16results shall result in expiration of the license.
174. An applicant shall provide information on forms
18required by the commissioner and shall meet all requirements
19pursuant to section 522B.5A if required by the commissioner.
20 The commissioner shall have the authority, at any time, to
21require the an applicant to fully disclose the identity of
22all stockholders, partners, officers, members, and employees,
23and the. The commissioner may, in the exercise of the
24 commissioner’s discretion, refuse to issue a license in the
25name of a legal entity to such applicant if not satisfied that
26any officer, employee, stockholder, partner, or member thereof,
27or employee who may materially influence the applicant’s
28conduct meets the standards of this chapter.
295. A license issued to a legal entity authorizes all
30partners, officers, members, and designated employees to act as
31viatical settlement providers or viatical settlement brokers,
32as applicable, under the license, and all those persons
33shall be named in the application and any supplements to the
34application.
356. 5. Upon the filing of an application and the payment of
-4-1the license fee, the commissioner shall make an investigation
2of investigate each applicant and issue a license if the
3commissioner finds that the applicant complies with all of the
4following:
5a. If a viatical settlement provider, has provided a
6detailed plan of operation.
7b. Is competent and trustworthy and intends to act in good
8faith in the capacity involved by the license applied for.
9c. Has a good business reputation and has had experience,
10training, or education so as to be qualified in the business
11for which the license is applied for.
12d. If a legal entity, provides a certificate of good
13standing from the state of its domicile.
14e. d. If a viatical settlement provider or viatical
15settlement broker, has provided an antifraud plan that meets
16the requirements of pursuant to section 508E.15, subsection 7.
177. 6. The commissioner shall not issue a license to a
18nonresident applicant unless a written designation of an
19agent for service of process is filed and maintained with the
20commissioner or the applicant has filed with the commissioner
21the applicant’s written irrevocable consent that any action
22against the applicant may be commenced against the applicant by
23service of process on the commissioner. If an applicant files
24such consent, service of process made on the commissioner as
25the agent for service of process shall be made as provided in
26section 505.30.
278. 7. A viatical settlement provider or viatical settlement
28broker shall provide to the commissioner new or revised
29information about officers, ten-percent-or-more stockholders,
30partners, directors, members, or designated employees within
31thirty days of the change.
329. 8. An individual licensed as a viatical settlement
33broker shall complete on a triennial basis running concurrent
34with the license term twenty credits of training related to
35viatical settlements and viatical settlement transactions, as
-5-1required by the commissioner; provided, however, that a life
2insurance producer who is operating as a viatical settlement
3broker pursuant to subsection 1, paragraph “b”, shall not be
4subject to the requirements of this subsection. Any person
5failing to meet the requirements of this subsection shall be
6subject to the penalties imposed by the commissioner.
710. 9. Fees collected pursuant to this section shall be
8deposited as provided in section 505.7.
9 Sec. 6. Section 522B.5, subsection 1, unnumbered paragraph
101, Code 2019, is amended to read as follows:
11A person applying for a resident insurance producer license
12shall make application to the commissioner on the uniform
13application, meet all requirements pursuant to section 522B.5A,
14 and declare under penalty of refusal, suspension, or revocation
15of the license that the all statements made in the application
16are true, correct, and complete to the best of the individual’s
17knowledge and belief. Before approving the application, the
18commissioner shall find all of the following:
19 Sec. 7. NEW SECTION. 522B.5A Criminal history check.
201. In determining eligibility for licensure, the
21commissioner is authorized to require an applicant pursuant to
22subsection 2 to provide to the commissioner the applicant’s
23fingerprints and reasonable fees required to perform a state
24criminal history check through the department of public safety,
25division of criminal investigation, and a national criminal
26history check through the federal bureau of investigation. By
27submitting such fingerprints, the applicant authorizes the
28commissioner to do all of the following:
29a. Submit the applicant’s fingerprints to the department
30of public safety, division of criminal investigation, for
31submission to the federal bureau of investigation for the
32purpose of conducting a national criminal history check.
33b. Receive the results of the state and national criminal
34history checks.
352. The commissioner is authorized to require a state and
-6-1national criminal history check on each applicant that applies
2for any of the following:
3a. An initial license in Iowa as a resident insurance
4producer.
5b. An initial license or an additional line of authority
6under a nonresident insurance producer license if a state and
7national criminal history check has not already been completed.
8c. A renewal, reinstatement, or reissuance of a license
9if the license of a producer has been revoked or suspended
10pursuant to section 522B.11, the license of a public adjuster
11has been revoked or suspended pursuant to section 522C.6, or
12the license of a viatical settlement provider or viatical
13settlement broker has been revoked or suspended pursuant to
14section 508E.4.
15d. An initial license as a viatical settlement provider or
16viatical settlement broker in this state.
17e. An initial license as a public adjuster in this state.
183. The commissioner shall require an applicant pursuant to
19subsection 2 to submit a full set of fingerprints and any other
20required identifying information to the commissioner on a form
21prescribed by the department of public safety.
224. The commissioner may contract with a third-party
23vendor for the collection and transmission of an applicant’s
24fingerprints for the purpose of conducting a state and
25national criminal history check. The commissioner may agree
26to reasonable fees to be charged by the third-party vendor and
27may require such reasonable fees to be paid by the applicant
28directly to the third-party vendor.
295. The results of a criminal history check conducted
30pursuant to this section shall not be considered a public
31record pursuant to chapter 22. An applicant’s fingerprints and
32any criminal history check information shall not be subject to
33subpoena, other than a subpoena issued in a criminal action or
34investigation, shall be confidential by law and privileged, and
35shall not be subject to discovery or be admissible in evidence
-7-1in a private civil action.
2 Sec. 8. Section 522C.5, Code 2019, is amended to read as
3follows:
4522C.5 Application for license.
51. A person applying for a public adjuster license shall
6make application on a uniform individual application or uniform
7business entity application as prescribed by the commissioner
8pursuant to rules adopted under chapter 17A.
92. In determining eligibility for licensure under this
10chapter, the commissioner shall is authorized to require
11a criminal history check pursuant to section 522B.5A for
12 each individual applying for a public adjuster license to
13submit a full set of fingerprints with the application. The
14commissioner shall also require and for each individual who
15will be acting as a public adjuster of a business entity
16applying for licensure under this chapter to submit a full
17set of fingerprints for each individual who will be acting
18as a public adjuster on behalf of the business entity. The
19commissioner shall conduct a state and national criminal
20history record check on each applicant. The commissioner is
21authorized to submit fingerprints and any required fees to the
22state department of public safety, the state attorney general,
23and the federal bureau of investigation for the performance of
24such criminal record checks.
25a. The commissioner may contract for the collection,
26transmission, and resubmission of fingerprints required under
27this section and may contract for a reasonable fingerprinting
28fee to be charged by the contractor for these services. Any
29fees for the collection, transmission, and retention of
30fingerprints submitted pursuant to this subsection shall be
31paid directly to the contractor by the applicant.
32b. The commissioner may waive submission of fingerprints
33by any person who has previously furnished fingerprints if
34those fingerprints are on file with the central repository
35of the national association of insurance commissioners, its
-8-1affiliates, or subsidiaries.
2c. The commissioner may receive criminal history record
3information concerning an applicant that was requested by the
4state department of justice directly from the federal bureau
5of investigation.
6d. The commissioner may submit electronic fingerprint
7records and necessary identifying information to the national
8association of insurance commissioners, its affiliates,
9or subsidiaries for permanent retention in a centralized
10repository whose purpose is to provide state insurance
11commissioners with access to fingerprint records in order to
12perform criminal history record checks.
13EXPLANATION
14The inclusion of this explanation does not constitute agreement with
15the explanation’s substance by the members of the general assembly.
16This bill relates to the insurance fraud bureau and criminal
17history checks for licenses granted by the insurance division.
18The bill clarifies that the insurance fraud bureau has the
19authority to conduct investigations in all areas under the
20jurisdiction of the insurance commissioner and also clarifies
21the law enforcement authority of an insurance fraud bureau
22investigator. The bill requires the commissioner to dedicate
23a minimum of two insurance fraud bureau investigators to the
24investigation of suspected workers’ compensation fraud.
25The bill authorizes the commissioner to require new
26applicants licensed under the commissioner’s jurisdiction to
27submit fingerprints. The bill does not apply to current Iowa
28producers in good standing.
29The bill authorizes the commissioner to require a state
30and national criminal history check on each applicant that
31applies for an initial license in Iowa as a resident insurance
32producer, an initial license or an additional line of authority
33under a nonresident insurance producer license if a state
34and national criminal history check has not already been
35completed, an initial license as a viatical settlement provider
-9-1or a viatical settlement broker in the state, and an initial
2license as a public adjuster in the state. In addition,
3the commissioner may require a state and national criminal
4history check for a producer, a public adjuster, or a viatical
5settlement provider or viatical settlement broker that applies
6for a renewal, reinstatement, or reissuance of a license that
7has been revoked or suspended.
8The bill provides that by submitting fingerprints an
9applicant is authorizing the commissioner to submit the
10fingerprints to the department of public safety for a state
11criminal history check and for submission to the federal bureau
12of investigation for a national criminal history check. The
13applicant is also authorizing the commissioner to receive the
14results of the state and national criminal history check.
15The bill authorizes the commissioner to contract with
16a third-party vendor for the collection and submission of
17applicants’ fingerprints. The commissioner may agree to
18reasonable fees to be charged by the vendor and may require
19the fee to be paid by an applicant directly to the third-party
20vendor.
21The bill provides that the results of an applicant’s
22criminal history check are not a public record under Code
23chapter 22. An applicant’s fingerprints and criminal history
24check are only subject to a subpoena issued in a criminal
25action or investigation, shall be confidential by law and
26privileged, and are not subject to discovery or admissible in
27a private civil action.
28The bill requires any person operating as either a viatical
29settlement provider or viatical settlement broker to be
30licensed and no longer allows an exception for a life insurance
31producer licensed for at least one year as a resident producer
32in this state, or the producer’s home state, to operate as
33a viatical settlement broker. The bill no longer permits a
34license to be issued to a legal entity, as is currently allowed
35by law, to operate as either a viatical settlement provider or
-10-1viatical settlement broker.
-11-ko/rn