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House Study Bill 119 - IntroducedA Bill ForAn Act 1relating to various matters under the purview of
2the insurance division of the department of commerce,
3providing fees, making an appropriation, and resolving
4inconsistencies.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2UNIFORM SECURITIES
3 Section 1. Section 502.304A, subsection 3, paragraph g,
4Code 2021, is amended to read as follows:
5g. The issuer must pay to the administrator a fee of one
6hundred dollars established by the administrator by rule and
7is not required to pay the filing fee set forth in section
8502.305, subsection 2.
9 Sec. 2. Section 502.304A, subsection 5, Code 2021, is
10amended to read as follows:
115. Agent registration. In connection with an offering
12registered under this section, a person may be registered as
13an agent of the issuer under section 502.402 by the filing of
14an application by the issuer with the administrator for the
15registration of the person as an agent of the issuer and the
16paying of a fee of ten dollars established by the administrator
17by rule. Notwithstanding any other provision of this chapter,
18the registration of the agent shall be effective until
19withdrawn by the issuer or until the securities registered
20pursuant to the registration statement have all been sold,
21whichever occurs first. The registration of an agent shall
22become effective when ordered by the administrator or on the
23fifth business day after the agent’s application has been
24filed with the administrator, whichever occurs first, and the
25administrator shall not impose further conditions upon the
26registration of the agent. However, the administrator may
27deny, revoke, suspend, or withdraw the registration of the
28agent at any time as provided in section 502.412. An agent
29registered solely pursuant to this section is entitled to sell
30only securities registered under this section.
31 Sec. 3. Section 502.321G, Code 2021, is amended to read as
32follows:
33502.321G Fees.
34The administrator shall charge a nonrefundable filing fee of
35two hundred fifty dollars established by the administrator by
-1-1rule for a registration statement filed by an offeror. The fee
2shall be deposited as provided in section 505.7.
3 Sec. 4. Section 502.410, Code 2021, is amended to read as
4follows:
5502.410 Filing fees.
61. Broker-dealers. A person shall pay a fee of two hundred
7dollars established by the administrator by rule when initially
8filing an application for registration as a broker-dealer
9and a fee of two hundred dollars when filing a renewal of
10registration as a broker-dealer. If the filing results in a
11denial or withdrawal, the administrator shall retain the fee.
122. Agents. The fee for an individual is forty dollars
13when filing an application for registration as an agent, a
14fee of forty dollars when filing a renewal of registration
15as an agent, and a fee of forty dollars when or filing for a
16change of registration as an agent shall be established by the
17administrator by rule. Of each forty-dollar fee collected, ten
18dollars twenty-five percent is appropriated to the securities
19investor education and financial literacy training fund
20established under section 502.601, subsection 5. If the filing
21results in a denial or withdrawal, the administrator shall
22retain the fee.
233. Investment advisers. A person shall pay a fee of one
24hundred dollars established by the administrator by rule when
25filing an application for registration as an investment adviser
26and a fee of one hundred dollars when filing a renewal of
27registration as an investment adviser. If the filing results
28in a denial or withdrawal, the administrator shall retain the
29fee.
304. Investment adviser representatives.
31a. The fee for an individual is thirty dollars when filing
32an application for registration as an investment adviser
33representative, a fee of thirty dollars when filing a renewal
34of registration as an investment adviser representative, and a
35fee of thirty dollars or when filing a change of registration
-2-1as an investment adviser representative shall be the amount
2established by the administrator by rule. If the filing
3results in a denial or withdrawal, the administrator shall
4retain the fee.
5b. However, an An investment adviser representative is shall
6 not be required to pay a filing fee if the investment adviser
7is a sole proprietorship or the substantial equivalent, and the
8investment adviser representative is the same individual as the
9investment adviser.
105. Federal covered investment advisers. A federal covered
11investment adviser required to file a notice under section
12502.405 shall pay an initial fee of one hundred dollars and
13an annual notice fee of one hundred dollars in an amount
14established by the administrator by rule.
156. Payment. A person required to pay a filing or notice
16 fee under this section may transmit the fee through or to a
17designee as a permitted by the administrator by rule or by
18 order provides issued by the administrator under this chapter.
197. Deposit of fees. Except as otherwise provided in
20subsection 2, fees collected under this section shall be
21deposited as provided in section 505.7.
22DIVISION II
23INSURANCE
24 Sec. 5. Section 505.30, subsection 2, Code 2021, is amended
25to read as follows:
262. The commissioner may collect a reasonable fee,
27established by the commissioner by rule, each time service of
28process is made on the commissioner as set forth in subsection
291 or as otherwise allowed by law. A fee collected by the
30commissioner under this subsection shall be used and is
31appropriated to the insurance division to offset the costs
32of the commissioner acting as agent or attorney for service
33of process. The party to a proceeding requesting service of
34process is entitled to recover the fee paid pursuant to this
35subsection and any rules adopted under this section as costs if
-3-1the party prevails in the proceeding.
2 Sec. 6. Section 507A.4, subsection 9, Code 2021, is amended
3by striking the subsection and inserting in lieu thereof the
4following:
59. Transactions involving a multiple employer welfare
6arrangement as defined in section 3 of the federal Employee
7Retirement Income Security Act of 1974, 29 U.S.C. §1002,
8paragraph 40, or a multiple employer welfare arrangement formed
9as an association health plan pursuant to 29 C.F.R. pt.2510
10that complies with chapter 513D.
11 Sec. 7. Section 507B.7, Code 2021, is amended to read as
12follows:
13507B.7 Cease and desist orders Orders and penalties.
141. If, after hearing, the commissioner determines that a
15person has engaged in an unfair method of competition or an
16unfair or deceptive act or practice, the commissioner shall
17reduce the findings to writing and shall issue and cause to
18be served upon the person charged with the violation a copy
19of such findings, an order requiring such person to cease
20and desist from engaging in such method of competition, act,
21or practice, and the commissioner may at the commissioner’s
22discretion order any one or more of the following:
23a. Payment of a civil penalty of not more than one thousand
24dollars for each act or violation of this subtitle, but not
25to exceed an aggregate of ten thousand dollars, unless the
26person knew or reasonably should have known the person was in
27violation of this subtitle, in which case the penalty shall be
28not more than five thousand dollars for each act or violation,
29but not to exceed an aggregate penalty of fifty thousand
30dollars in any one six-month period. If the commissioner finds
31that a violation of this subtitle was directed, encouraged,
32condoned, ignored, or ratified by the employer of the person or
33by an insurer, the commissioner shall also assess a penalty to
34the employer or insurer.
35b. Suspension or revocation of the license of a person as
-4-1defined in section 507B.2, subsection 1, if the person knew or
2reasonably should have known the person was in violation of
3this subtitle.
4c. Payment of interest at the rate of ten percent per
5annum if the commissioner finds that the insurer failed to
6pay interest as required under section 507B.4, subsection 3,
7paragraph “p”.
82. Until the expiration of the time allowed under section
9507B.8 for filing a petition for review if no such petition has
10been duly filed within such time, or, if a petition for review
11has been filed within such time, then until the transcript of
12the record in the proceeding has been filed in the district
13court, the commissioner may at any time, upon such notice and
14in such manner as the commissioner may deem proper, modify
15or set aside in whole or in part any order issued by the
16commissioner under this section.
173. After the expiration of the time allowed for filing
18such a petition for review if no such petition has been duly
19filed within such time, the commissioner may at any time, after
20notice and opportunity for hearing, reopen and alter, modify,
21or set aside, in whole or in part, any order issued by the
22commissioner under this section, whenever in the commissioner’s
23opinion conditions of fact or of law have so changed as
24to require such action, or if the public interest shall so
25require.
264. Any person who violates a cease and desist an order
27of the commissioner, and while such order is in effect, may,
28after notice and hearing and upon order of the commissioner,
29be subject at the discretion of the commissioner to any one or
30more of the following:
31a. A monetary penalty of not more than ten thousand dollars
32for each and every act or violation. A penalty collected
33under this lettered paragraph shall be deposited as provided
34in section 505.7.
35b. Suspension or revocation of such person’s license.
-5-1 Sec. 8. Section 507E.2, Code 2021, is amended to read as
2follows:
3507E.2 Purpose Insurance fraud bureau.
41. An insurance fraud bureau is created within the insurance
5division. Upon a reasonable determination by the division, by
6its own inquiries or as a result of a complaint filed with the
7division, that a person has engaged in, is engaging in, or may
8be engaging in an act or practice that violates any provision
9of the Code subject to the jurisdiction of the commissioner,
10the division may administer oaths and affirmations, serve
11subpoenas ordering the attendance of witnesses, and collect
12evidence related to such act or practice.
132. An insurance fraud bureau investigator shall be no older
14than sixty-five years of age.
15 Sec. 9. Section 507E.2A, subsection 2, Code 2021, is amended
16to read as follows:
172. “Insurer” includes an insurer means any corporation,
18association, partnership, or individual engaged in the business
19of insurance, including but not limited to a corporation,
20association, partnership, or individual that issues a policy
21of workers’ compensation, a self-insured business for purposes
22of workers’ compensation liability, or a group or self-insured
23plan as described in section 87.4. “Insurer” does not include
24a person required to be licensed to sell, solicit, or negotiate
25insurance pursuant to chapter 522B.
26 Sec. 10. Section 507E.8, Code 2021, is amended to read as
27follows:
28507E.8 Law enforcement authority.
291. An individual employed by the division and designated as
30a peace officer shall be considered a law enforcement officer
31as that term is defined in section 80B.3, and shall exercise
32the powers of a law enforcement officer as follows:
33a. For purposes of an arrest resulting from a criminal
34violation of any provision of the Code subject to the
35jurisdiction of the commissioner established as a result of
-6-1an investigation pursuant to this chapter, an insurance fraud
2bureau investigator shall have the authority and status of a
3law enforcement officer pursuant to section 80B.3, subsection
43.
5b. While conducting an investigation or engaged in an
6assignment authorized by this chapter or ordered by the
7commissioner.
8c. To protect life if a public offense is committed in the
9presence of the peace officer.
10d. While providing assistance to a law enforcement agency or
11another law enforcement officer.
12e. While providing assistance at the request of a member of
13the public.
142. The laws Laws applicable to an arrest of an individual
15 by a law enforcement officer of the state shall apply to an
16insurance fraud bureau investigator individual employed by
17the division and designated as a peace officer. An insurance
18fraud bureau investigator individual employed by the division
19and designated as a peace officer shall have the power to
20execute arrest warrants and search warrants, serve subpoenas
21issued for the examination, investigation, and trial of all
22offenses identified through the course of an investigation
23conducted pursuant to this section, and arrest upon probable
24cause without warrant a person found in the act of committing
25a violation of a provision of this chapter or a law of this
26state.
27 Sec. 11. Section 508E.2, subsection 14, Code 2021, is
28amended to read as follows:
2914. “Viatical settlement broker” means a person, including
30a life insurance producer as provided for in section 508E.3,
31who, working exclusively on behalf of a viator and for a fee,
32commission, or other valuable consideration, offers or attempts
33to negotiate viatical settlement contracts between a viator
34and one or more viatical settlement providers or one or more
35viatical settlement brokers. Notwithstanding the manner in
-7-1which the viatical settlement broker is compensated, a viatical
2settlement broker is deemed to represent only the viator,
3and not the insurer or the viatical settlement provider, and
4owes a fiduciary duty to the viator to act according to the
5viator’s instructions and in the best interest of the viator.
6“Viatical settlement broker” does not include an attorney,
7certified public accountant, or a financial planner accredited
8by a nationally recognized accreditation agency who is retained
9to represent the viator and whose compensation is not paid
10directly or indirectly by the viatical settlement provider or
11purchaser.
12 Sec. 12. Section 508E.3, subsections 2 and 3, Code 2021, are
13amended to read as follows:
142. An application for a viatical settlement provider
15or viatical settlement broker license shall be made to the
16commissioner by the applicant on a form prescribed by the
17commissioner, and the application shall be accompanied by a
18fee of not more than one hundred dollars as provided by rules
19adopted by the commissioner.
203. A viatical settlement provider or viatical settlement
21broker license term shall be three years and the license
22may be renewed upon payment of a renewal fee of not more
23than one hundred dollars as provided by rules adopted by the
24commissioner. A failure to pay the fee by the renewal date
25shall result in expiration of the license.
26 Sec. 13. Section 509.1, subsection 9, Code 2021, is amended
27to read as follows:
289. A policy of group health insurance coverage issued to an
29associated health plan a multiple employer welfare arrangement
30 pursuant to section 513D.1 chapter 513D that is subject to
31regulation by the commissioner.
32 Sec. 14. Section 509.19, subsection 2, paragraph d, Code
332021, is amended to read as follows:
34d. A multiple employer welfare arrangement, as defined
35in section 3 of the federal Employee Retirement Income
-8-1Security Act of 1974, 29 U.S.C. §1002(40), paragraph 40,
2or a multiple employer welfare arrangement formed as an
3association health plan pursuant to 29 C.F.R. pt.2510,
4that meets the requirements of section 507A.4, subsection 9,
5paragraph “a” chapter 513D.
6 Sec. 15. Section 509A.15, subsection 1, paragraph a,
7unnumbered paragraph 1, Code 2021, is amended to read as
8follows:
9Within ninety calendar days following the end of a fiscal
10year, the governing body of a self-insurance plan of a
11political subdivision or a school corporation shall file with
12the commissioner of insurance a certificate of compliance,
13actuarial opinion, and an annual financial report. The
14filing shall be accompanied by a fee of one hundred dollars
15 established by the commissioner by rule. A penalty of fifteen
16dollars per day late fee established by the commissioner
17by rule shall be assessed for failure to comply with the
18ninety-day ninety-calendar-day filing requirement, except that
19the commissioner may waive the penalty late fee upon a showing
20that special circumstances exist which justify the waiver. The
21certificate shall be signed and dated by the appropriate public
22official representing the governing body, and shall certify the
23following:
24 Sec. 16. Section 510.21, Code 2021, is amended to read as
25follows:
26510.21 Certificate of registration required Certificates —
27 registration and renewal.
28A person shall not act as or represent oneself to be a
29third-party administrator in this state, other than an adjuster
30licensed in this state for the kinds of business for which
31the person is acting as a third-party administrator, unless
32the person holds a current certificate of registration as
33a third-party administrator issued by the commissioner of
34insurance. A certificate of registration as a third-party
35administrator is renewable shall be renewed every three
-9-1years. Failure to hold a current certificate subjects the
2 of registration shall subject a third-party administrator to
3the sanctions set out in section 507B.7. The An application
4for a certificate of registration shall be accompanied by a
5filing fee as established by the commissioner by rule. A
6 certificate of registration shall be issued by the commissioner
7to a third-party administrator unless the commissioner,
8after due notice and hearing, determines that the third-party
9administrator is not competent, trustworthy, financially
10responsible, or of good personal and business reputation, or
11has had a previous an application for an insurance license
12denied for cause within the preceding five years.
13An application for registration shall be accompanied by a
14filing fee of one hundred dollars. After notice and hearing,
15the commissioner may impose any or all of the sanctions set out
16in section 507B.7, upon finding that either the third-party
17administrator violated any of the requirements of sections
18510.12 through 510.20 and this section, or the third-party
19administrator is not competent, trustworthy, financially
20responsible, or of good personal and business reputation.
21 If the commissioner denies an application for registration
22or renewal, a written notice that specifies the reasons for
23the denial or nonrenewal shall be provided to the applicant.
24Pursuant to chapter 17A, upon the applicant’s request, the
25commissioner shall grant the applicant a hearing on the denial
26or nonrenewal.
27 Sec. 17. Section 510.23, Code 2021, is amended by striking
28the section and inserting in lieu thereof the following:
29510.23 Violations and penalties.
301. If, after hearing, the commissioner determines that
31a third-party administrator has violated this chapter, or
32chapter 507B, the commissioner may order any one or more of the
33sanctions or penalties set out in section 507B.7.
342. If, after hearing, the commissioner determines that a
35person has aided and abetted a third-party administrator in
-10-1commission of a violation of this chapter, or chapter 507B,
2the commissioner may order any one or more of the sanctions or
3penalties set out in section 507B.7.
43. If, after hearing, the commissioner determines that
5a third-party administrator is not competent, trustworthy,
6financially responsible, or of good personal and business
7reputation, the commissioner may order any one or more of the
8sanctions and penalties set out in section 507B.7.
9 Sec. 18. Section 511.24, Code 2021, is amended to read as
10follows:
11511.24 Fees from domestic Domestic and foreign companies —
12 fees.
13When not otherwise provided, a foreign or domestic life
14insurance company doing business in this state shall pay to the
15commissioner of insurance the following fees a fee, established
16by the commissioner by rule, for all of the following:
171. For filing an application to do business, or an
18application to renew a certificate of authority, fifty dollars.
192. For issuing a certificate of authority to do business in
20this state, or for renewing a certificate, fifty dollars.
213. For filing amended articles of incorporation, fifty
22dollars.
234. For issuing an amended certificate of authority,
24twenty-five dollars.
255. For affixing the official seal to any paper filed with
26the division, ten dollars.
27 Sec. 19. Section 512B.24, Code 2021, is amended to read as
28follows:
29512B.24 Reports Annual statement.
30Reports shall be filed in accordance with this section.
311. A society transacting business in this state shall, on or
32before March 1 annually, unless for cause shown the time has
33been extended by the commissioner, shall annually file with the
34commissioner a true statement of its the society’s financial
35condition, transactions, and affairs for the preceding calendar
-11-1year and shall pay a fee of fifty dollars established by the
2commissioner by rule. The statement may be in general form and
3content as approved by the national association of insurance
4commissioners for fraternal benefit societies and shall be
5supplemented by additional information as adopted by rule of
6the commissioner.
72. As part of the a society’s annual statement, a the
8 society shall, on or before March 1, file with the commissioner
9of insurance a valuation of its the society’s certificates
10in force on the last preceding December 31. However, the
11commissioner may, for cause shown, extend the time for filing
12the valuation for not more than two consecutive calendar
13months. The valuation shall be done completed in accordance
14 compliance with the standards specified in section 512B.23.
15The valuation and underlying data shall be certified by a
16qualified actuary or, at the expense of the society, verified
17by the actuary of the department of insurance of the state of
18domicile of the society.
193. A society failing to file the society’s annual statement
20in the form and within the time provided by compliance with
21 this section shall forfeit one hundred dollars for each day
22during which the default continues, and, upon notice by the
23commissioner to that effect, the society’s authority to do
24business in this state shall cease while during the duration of
25 the default continues.
26 Sec. 20. Section 512B.25, Code 2021, is amended to read as
27follows:
28512B.25 Annual license — renewal.
29The authority of a society to transact business in this
30state may be renewed annually. A society’s license terminates
31 to transact business in this state shall terminate on the
32first day of June following the issuance or the renewal of
33the society’s license. A society shall submit annually on
34or before March 1 a completed application for renewal of its
35license. For each license or renewal the society shall pay
-12-1the commissioner a fee of fifty dollars established by the
2commissioner by rule. A society that fails to timely file an
3application for renewal shall pay an administrative penalty
4of five hundred dollars to the treasurer of state for deposit
5as provided in section 505.7 a late fee as established by the
6commissioner by rule. A duly certified copy or duplicate
7of the a society’s license is prima facie evidence that the
8licensee is a fraternal benefit society within the meaning of
9this chapter.
10 Sec. 21. Section 513D.1, Code 2021, is amended by striking
11the section and inserting in lieu thereof the following:
12513D.1 Multiple employer welfare arrangements and association
13health plans.
141. As used in this chapter, unless the context otherwise
15requires:
16a. “Association health plan” or “AHP” means a multiple
17employer welfare arrangement formed as an association health
18plan pursuant to 29 C.F.R. pt.2510.
19b. “Commissioner” means the commissioner of insurance.
20c. “Multiple employer welfare arrangement” or “MEWA” means a
21multiple employer welfare arrangement as defined in section 3
22of the federal Employee Retirement Income Security Act of 1974,
2329 U.S.C. §1002, paragraph 40.
242. An AHP or MEWA that offers a plan to, or maintains a
25group health plan for, any resident of this state shall be
26subject to the jurisdiction of the commissioner and shall
27comply with all of the following requirements:
28a. The AHP or MEWA must be administered by an insurer
29authorized to do the business of insurance in this state or
30an authorized third-party administrator that holds a current
31certificate of registration pursuant to section 510.21.
32b. The AHP or MEWA must be established by a trade,
33industry, or professional association of employers that has a
34constitution or bylaws, is organized and maintained in good
35faith, and has membership stability as defined by rules adopted
-13-1by the commissioner.
2c. The AHP or MEWA must register with the commissioner and
3obtain and maintain a certificate of registration issued by the
4commissioner.
5d. The AHP or MEWA shall comply with all rules and solvency
6standards established by rules adopted by the commissioner.
73. An AHP or MEWA that does not meet the solvency standards
8pursuant to subsection 2, paragraph “d”, shall be subject to
9chapter 507C.
104. An AHP or MEWA that meets all of the requirements of
11subsection 2 shall not be considered any of the following:
12a. An insurance company or association of whatever kind or
13character under section 432.1.
14b. A member of the Iowa individual health benefit
15reinsurance association pursuant to section 513C.10, subsection
161.
17c. A member insurer of the Iowa life and health insurance
18guaranty association pursuant to section 508C.5.
195. An AHP or MEWA that is registered with the commissioner
20pursuant to subsection 2, paragraph “c”, shall annually file
21with the commissioner on or before March 1 a copy of the report
22required to be filed by the AHP or MEWA with the United States
23department of labor pursuant to 29 C.F.R. §2520.101-2.
246. An AHP or MEWA that is registered with the commissioner
25pursuant to subsection 2, paragraph “c”, shall annually file
26with the commissioner a report on or before March 1 for the
27preceding calendar year. The annual report shall contain the
28information and be in a form and manner as prescribed by the
29commissioner.
307. A foreign or domestic AHP or MEWA doing business in the
31state shall pay fees as prescribed by the commissioner unless
32otherwise provided by law.
338. A MEWA that is recognized as tax-exempt under Internal
34Revenue Code section 501(c)(9) and that is registered with the
35commissioner prior to January 1, 2018, shall not be considered
-14-1an AHP unless the MEWA affirmatively elects to be treated as
2an AHP.
3 Sec. 22. Section 513D.2, subsection 1, Code 2021, is amended
4to read as follows:
51. The commissioner of insurance shall adopt rules, as
6necessary, pursuant to chapter 17A to administer this chapter.
7 Sec. 23. Section 514G.103, subsection 10, Code 2021, is
8amended to read as follows:
910. “Independent review entity organization” means a review
10entity organization certified by the commissioner pursuant to
11section 514G.110, subsection 4.
12 Sec. 24. Section 514G.110, subsections 4, 5, 6, 7, 8, and 9,
13Code 2021, are amended to read as follows:
144. Qualifications of independent review entities
15 organizations. The commissioner shall maintain a list of
16qualified independent review entities organizations that are
17certified by the commissioner. Independent review entities
18 organizations shall be recertified by the commissioner every
19two years in order to remain on the list. In order to be
20certified, an independent review entity organization shall meet
21all of the following criteria:
22a. Have on staff, or contract with, a qualified, licensed
23health care professional in an appropriate field for
24determining an insured’s functional or cognitive impairment who
25can conduct an independent review.
26(1) In order to be qualified, a licensed health care
27professional who is a physician shall hold a current
28certification by a recognized American medical specialty
29board in a specialty appropriate for determining an insured’s
30functional or cognitive impairment.
31(2) In order to be qualified, a licensed health care
32professional who is not a physician shall hold a current
33certification in the specialty in which that person is
34licensed, by a recognized American specialty board in a
35specialty appropriate for determining an insured’s functional
-15-1or cognitive impairment.
2b. Ensure that any licensed health care professional who
3conducts an independent review has no history of disciplinary
4actions or sanctions, including but not limited to the loss
5of staff privileges or any participation restrictions taken
6or pending by any hospital or state or federal government
7regulatory agency.
8c. Ensure that the independent review entity organization
9 or any of its employees, agents, or licensed health care
10professionals utilized does not receive compensation of any
11type that is dependent on the outcome of a review.
12d. Ensure that the independent review entity organization
13 or any of its employees, agents, or licensed health care
14professionals utilized are not in any manner related to,
15employed by, or affiliated with the insured or with a person
16who previously provided medical care to the insured.
17e. Ensure that an independent review entity organization
18 or any of its employees, agents, or licensed health care
19professionals utilized is not a subsidiary of, or owned or
20controlled by, an insurer or by a trade association of insurers
21of which the insurer is a member.
22f. Have a quality assurance program on file with the
23commissioner that ensures the timeliness and quality of reviews
24performed, the qualifications and independence of the licensed
25health care professionals who perform the reviews, and the
26confidentiality of the review process.
27g. Have on staff or contract with a licensed health care
28practitioner, as defined in section 514G.103, subsection 3, who
29is qualified to certify that an individual is chronically ill
30for purposes of a qualified long-term care insurance contract.
315. Independent review process. The independent review
32process shall be conducted as follows:
33a. Within three business days of receiving a notice from the
34commissioner of the certification of a request for independent
35review or receipt of a denial of an insurer’s appeal from such
-16-1a certification, the insurer shall do all of the following:
2(1) Select an independent review entity organization from
3the list certified by the commissioner and notify the insured
4in writing of the name, address, and telephone number of the
5selected independent review entity selected organization. The
6selected independent review entity selected organization shall
7utilize a licensed health care professional with qualifications
8appropriate to the benefit trigger determination that is under
9review.
10(2) Notify the independent review entity organization
11 that it has been selected to conduct an independent review
12of a benefit trigger determination and provide sufficient
13descriptive information to enable the independent review entity
14 organization to provide licensed health care professionals who
15will be qualified to conduct the review.
16(3) Provide the commissioner with a copy of the notices sent
17to the insured and to the selected independent review entity
18selected organization.
19b. Within three business days of receiving a notice from
20an insurer that it has been selected to conduct an independent
21review, the independent review entity organization shall do one
22of the following:
23(1) Accept its selection as the independent review entity
24 organization, designate a qualified licensed health care
25professional to perform the independent review, and provide
26notice of that designation to the insured and the insurer,
27including a brief description of the health care professional’s
28qualifications and the reasons that person is qualified to
29determine whether the insured’s benefit trigger has been met.
30A copy of this notice shall be sent to the commissioner via
31facsimile. The independent review entity organization is not
32required to disclose the name of the health care professional
33selected.
34(2) Decline its selection as the independent review entity
35 organization or, if the independent review entity organization
-17-1 does not have a licensed health care professional who is
2qualified to conduct the independent review available, request
3additional time from the commissioner to have a qualified
4licensed health care professional certified, and provide
5notice to the insured, the insurer, and the commissioner.
6The commissioner shall notify the independent review entity
7 organization, the insured, and the insurer of how to proceed
8within three business days of receipt of such notice from the
9independent review entity organization.
10c. An insured may object to the independent review entity
11 organization selected by the insurer or to the licensed
12health care professional designated by the independent review
13entity organization to conduct the review by filing a notice
14of objection along with reasons for the objection, with the
15commissioner within ten days of receipt of a notice sent by the
16independent review entity organization pursuant to paragraph
17“b”. The commissioner shall consider the insured’s objection
18and shall notify the insured, the insurer, and the independent
19review entity organization of the commissioner’s decision to
20sustain or deny the objection within two business days of
21receipt of the objection.
22d. Within five business days of receiving a notice from
23the independent review entity organization accepting its
24selection or within five business days of receiving a denial
25of an objection to the independent review entity organization
26 selected, whichever is later, the insured may submit any
27information or documentation in support of the insured’s claim
28to both the independent review entity organization and the
29insurer.
30e. Within fifteen days of receiving a notice from the
31independent review entity organization accepting its selection
32or within three business days of receipt of a denial of
33an objection to the independent review entity organization
34 selected, whichever is later, an insurer shall do all of the
35following:
-18- 1(1) Provide the independent review entity organization
2 with any information submitted to the insurer by the insured
3in support of the insured’s internal appeal of the insurer’s
4benefit trigger determination.
5(2) Provide the independent review entity organization with
6any other relevant documents used by the insurer in making its
7benefit trigger determination.
8(3) Provide the insured and the commissioner with
9confirmation that the information required under subparagraphs
10(1) and (2) has been provided to the independent review entity
11 organization, including the date the information was provided.
12f. The independent review entity organization shall not
13commence its review until fifteen days after the selection of
14the independent review entity organization is final including
15the resolution of any objection made pursuant to paragraph
16“c”. During this time period, the insurer may consider any
17information provided by the insured pursuant to paragraph
18“d” and overturn or affirm the insurer’s benefit trigger
19determination based on such information. If the insurer
20overturns its benefit trigger determination, the independent
21review process shall immediately cease.
22g. In conducting a review, the independent review
23entity organization shall consider only the information
24and documentation provided to the independent review entity
25 organization pursuant to paragraphs “d” and “e”.
26h. The independent review entity organization shall submit
27its decision as soon as possible, but not later than thirty
28days from the date the independent review entity organization
29 receives the information required under paragraphs “d” and “e”,
30whichever is received later. The decision shall include a
31description of the basis for the decision and the date of the
32benefit trigger determination to which the decision relates.
33The independent review entity organization, for good cause,
34may request an extension of time from the commissioner to file
35its decision. A copy of the decision shall be mailed to the
-19-1insured, the insurer, and the commissioner.
2i. All medical records submitted for use by the independent
3review entity organization shall be maintained as confidential
4records as required by applicable state and federal laws. The
5commissioner shall keep all information obtained during the
6independent review process confidential pursuant to section
7505.8, subsection 8, except that the commissioner may share
8some information obtained as provided under section 505.8,
9subsection 8, and as required by this chapter and rules adopted
10pursuant to this chapter.
11j. If an insured dies before completion of the independent
12review, the review shall continue to completion if there
13is potential liability of an insurer to the estate of the
14insured or to a provider for rendering qualified long-term care
15services to the insured.
166. Costs. All reasonable fees and costs of the independent
17review entity incurred organization in conducting an
18independent review under this section shall be paid by the
19insurer.
207. Immunity. An independent review entity organization that
21conducts a review under this section is not liable for damages
22arising from determinations made during the review. Immunity
23does not apply to any act or omission made by an independent
24review entity organization in bad faith or that involves gross
25negligence.
268. Effect of independent review decision.
27a. The review decision by the independent review entity
28 organization conducting the review is binding on the insurer.
29b. The independent review process set forth in this section
30shall not be considered a contested case under chapter 17A.
31c. An insured may appeal the review decision by the
32independent review entity organization conducting the review
33by filing a petition for judicial review in the district court
34in the county in which the insured resides. The petition for
35judicial review shall be filed within fifteen business days
-20-1after the issuance of the review decision by the independent
2review organization. The petition shall name the insured
3as the petitioner and the insurer as the respondent. The
4petitioner shall not name the independent review entity
5 organization as a party. The commissioner shall not be named
6as a respondent unless the insured alleges action or inaction
7by the commissioner under the standards articulated under
8section 17A.19, subsection 10. Allegations made against the
9commissioner under section 17A.19, subsection 10, must be
10stated with particularity. The commissioner may, upon motion,
11intervene in a judicial review proceeding brought pursuant to
12this paragraph. The findings of fact by the independent review
13entity organization conducting the review are conclusive and
14binding on appeal.
15d. An insurer shall not be subject to any penalties,
16sanctions, or damages for complying in good faith with a review
17decision rendered by an independent review entity organization
18 pursuant to this section.
19e. Nothing contained in this section or in section 514G.109
20shall be construed to limit the right of an insurer to assert
21any rights an insurer may have under a long-term care insurance
22policy related to:
23(1) An insured’s misrepresentation.
24(2) Changes in the insured’s benefit eligibility.
25(3) Terms, conditions, and exclusions contained in the
26policy, other than failure to meet the benefit trigger.
27f. The requirements of this section and section 514G.109 are
28not applicable to a group long-term care insurance policy that
29is governed by the federal Employee Retirement Income Security
30Act of 1974, as codified at 29 U.S.C. §100 §1001 et seq.
31g. The provisions of this section and section 514G.109
32are in lieu of and supersede any other third-party review
33requirement contained in chapter 514J or in any other provision
34of law.
35h. The insured may bring an action in the district court
-21-1in the county in which the insured resides to enforce the
2review decision of the independent review entity organization
3 conducting the review or the decision of the court on appeal.
49. Receipt of notice. Notice required by this section shall
5be deemed received within five days after the date of mailing.
6 Sec. 25. Section 515.147, Code 2021, is amended to read as
7follows:
8515.147 Fees.
9Fees, established by the commissioner of insurance by rule,
10 shall be paid to the commissioner of insurance for deposit as
11provided in section 505.7 as follows for all of the following:
121. For filing an application to do business, including all
13documents submitted in connection with the application, by a
14foreign or domestic company, or for filing an application for
15renewed authority, fifty dollars.
162. For issuing to a foreign or domestic company a
17certificate of authority to do business or a renewed
18certificate of authority, fifty dollars.
193. For filing amended articles of incorporation, fifty
20dollars.
214. For issuing an amended certificate of authority,
22twenty-five dollars.
235. For affixing the official seal to any paper filed with
24the division, ten dollars.
25 Sec. 26. Section 515A.2, subsection 1, Code 2021, is amended
26by adding the following new paragraph:
27 NEW PARAGRAPH. 0a. “Commissioner” means the commissioner
28of insurance.
29 Sec. 27. Section 515A.6, subsection 1, paragraph c, Code
302021, is amended to read as follows:
31c. Licenses issued pursuant to this section shall remain
32in effect for three years unless sooner suspended or revoked
33by the commissioner. The fee for the license fee shall be one
34hundred dollars established by the commissioner by rule.
35 Sec. 28. Section 515A.6, subsection 7, Code 2021, is amended
-22-1to read as follows:
27. Notwithstanding any other provision of the Code law to
3the contrary, the commissioner of insurance shall provide for
4a hearing in a proceeding involving a workers’ compensation
5insurance rate filing by a licensed rating organization
6in accordance with the provisions of this subsection and
7rules promulgated by the commissioner of insurance pursuant
8to chapter 17A. Except as otherwise provided herein, the
9provisions of this subsection shall not be subject to the
10requirements of chapter 17A. The procedures for such hearing
11shall be as follows:
12a. The commissioner shall provide notice of the filing of
13the proposed rates at least thirty days before the effective
14date of the proposed rates by publishing a notice on the
15internet site of the insurance division of the department of
16commerce.
17b. A public hearing shall be held on the proposed rates by
18the commissioner of insurance if within fifteen days of the
19date of publication a workers’ compensation policyholder or an
20established organization with one or more workers’ compensation
21policyholders among its members files a written demand with the
22commissioner of insurance for a hearing on the proposed rates.
23c. The commissioner of insurance shall hold the hearing
24within twenty days after receipt of the written demand for a
25hearing and shall give not less than ten days written notice of
26the time and place of the hearing to the person or association
27filing the demand, to the rating organization, and to any other
28person requesting such notice.
29d. At any such hearing, the rating organization shall
30bear the burden of proof to support the proposed rates by a
31preponderance of the evidence. The person or association
32requesting the hearing, and any other person admitted as a
33party to the proceeding, shall be given the opportunity to
34respond and introduce evidence and arguments on all the issues
35involved.
-23- 1e. Within fifteen days after the start of the hearing, the
2commissioner of insurance will shall approve or disapprove
3the proposed rates and specify the reasons therefor. The
4commissioner of insurance may suspend or postpone the effective
5date of the proposed rates pending the hearing and written
6decision thereon.
7f. Judicial review of the decision of the commissioner of
8insurance on such rates may be sought in accordance with the
9provisions of chapter 17A.
10g. Absent a request for a hearing as provided in paragraph
11“b”, the commissioner shall issue an order approving or
12disapproving the proposed rates.
13h. The waiting period for a workers’ compensation insurance
14rate filing shall commence no earlier than the date that notice
15of the insurance rate filing is published.
16 Sec. 29. Section 515A.10, Code 2021, is amended to read as
17follows:
18515A.10 Advisory organizations.
191. Every group, association or other organization of
20insurers, whether located within or outside of this state,
21which assists insurers which make their own filings or rating
22organizations in rate making, by the collection and furnishing
23of loss or expense statistics, or by the submission of
24recommendations, but which does not make filings under this
25chapter, shall be known as an advisory organization.
262. An advisory organization shall not provide a service
27relating to this chapter, and an insurer shall not utilize
28the services of an advisory organization for such purposes
29unless the advisory organization has obtained a license under
30subsection 3.
312. 3. Every An advisory organization applying for a license
32 shall file include with its application to the commissioner all
33of the following:
34a. A copy of its constitution, its articles of agreement
35or association or its certificate of incorporation and of its
-24-1bylaws, rules and regulations governing its activities.
2b. A list of its members.
3c. The name and address of a resident of this state upon
4whom notices or orders of the commissioner or process issued at
5the commissioner’s direction may be served.
6d. An agreement that the commissioner may examine such
7advisory organization in accordance with the provisions of
8section 515A.12.
9e. A fee established by the commissioner by rule.
103. 4. If, after a hearing, the commissioner finds that
11the furnishing of such information or assistance involves an
12advisory organization has engaged in any act or practice which
13is unfair, or unreasonable, or otherwise inconsistent with the
14provisions in violation of this chapter, the commissioner may
15issue a written an order specifying in what respects such act
16or practice is unfair or unreasonable or otherwise inconsistent
17with the provisions of this chapter, and requiring the
18discontinuance of such act or practice advisory organization to
19cease and desist such act or practice. The commissioner may,
20at any time after hearing, revoke or suspend the license of an
21advisory organization which does not comply with this chapter.
224. 5. No insurer which makes its own filings nor any rating
23organization shall support its filings by statistics or adopt
24rate making recommendations, furnished to it by an advisory
25organization which has not complied with this section or with
26an order of the commissioner involving such statistics or
27recommendations issued under subsection 3 4 of this section.
28If the commissioner finds such insurer or rating organization
29to be in violation of this subsection the commissioner may
30issue an order requiring the discontinuance of such violation.
316. A license issued under this section shall remain in
32effect for three years unless sooner suspended or revoked by
33the commissioner.
34 Sec. 30. Section 515D.4, subsection 2, paragraph a, Code
352021, is amended to read as follows:
-25- 1a. The named insured or any operator who either resides
2in the same household or customarily operates an automobile
3insured under the policy has that person’s driver’s license
4suspended or revoked during the policy term or, if the policy
5is a renewal, during its term or the one hundred eighty days
6immediately preceding its effective date. any of the following:
7(1) The term of the policy.
8(2) The term of a renewal policy.
9(3) Within one hundred eighty calendar days immediately
10preceding the effective date of a renewal of the policy.
11 Sec. 31. Section 515D.4, subsection 3, Code 2021, is amended
12to read as follows:
133. This section shall not apply to any policy or coverage
14which has been in effect less than sixty calendar days at the
15time notice of cancellation is mailed or delivered by the
16insurer unless it is a renewal policy. This section shall not
17apply to the nonrenewal of a policy.
18 Sec. 32. Section 515D.5, Code 2021, is amended to read as
19follows:
20515D.5 Delivery of notice.
211. a. Notwithstanding the provisions of section 515.129A,
22a notice of cancellation of a policy shall not be effective
23unless mailed or delivered by the insurer to the named insured
24at least thirty calendar days prior to the effective date of
25cancellation, or, where the cancellation is for nonpayment of
26premium notwithstanding the provisions of section 515.129A,
27at least ten calendar days prior to the date of cancellation.
28A post office department certificate of mailing to the named
29insured at the address shown in the policy shall be proof
30of receipt of such mailing. Unless the reason accompanies
31the notice of cancellation, the notice shall state that upon
32written request of the named insured, mailed or delivered to
33the insurer not less than fifteen calendar days prior to the
34date of cancellation, the insurer will state the reason for
35cancellation together with notification of the right to a
-26-1hearing before the commissioner within fifteen calendar days as
2provided in this chapter.
3b. When the reason does not accompany the notice of
4cancellation, the insurer shall, upon receipt of a timely
5request by the named insured, state in writing the reason
6for cancellation. A statement of reason shall be mailed or
7delivered to the named insured within five calendar days after
8receipt of a request.
92. A notice of exclusion of a person under a policy pursuant
10to section 515D.4, is not effective unless written notice
11is mailed or delivered to the named insured at least twenty
12calendar days prior to the effective date of the exclusion.
13The written notice shall state the reason for the exclusion,
14together with notification of the right to a hearing before
15the commissioner pursuant to section 515D.10 within fifteen
16calendar days of receipt or delivery of a statement of reason
17as provided in this section.
18 Sec. 33. Section 515D.6, Code 2021, is amended to read as
19follows:
20515D.6 Prohibited reasons for nonrenewal.
211. No insurer shall refuse to renew a policy solely because
22of age, residence, sex, race, color, creed, or occupation of
23an insured.
242. No insurer shall require a physical examination of a
25policyholder as a condition for renewal solely on the basis of
26age or other arbitrary reason. In the event that an insurer
27requires a physical examination of a policyholder, the burden
28of proof in establishing reasonable and sufficient grounds for
29such requirement shall rest with the insurer and the expenses
30incident to such examination shall be borne by the insurer.
31 Sec. 34. Section 515D.7, Code 2021, is amended to read as
32follows:
33515D.7 Notice of intent.
341. Notwithstanding the provisions of sections 515.125,
35515.128, 515.129B, and 515.129C, an insurer shall not fail to
-27-1renew a policy except by notice to the insured as provided
2in this chapter. A notice of intention not to renew shall
3not be effective unless mailed or delivered by the insurer
4to the named insured at least thirty calendar days prior to
5the expiration date of the policy. A post office department
6certificate of mailing to the named insured at the address
7shown in the policy shall be proof of receipt of such mailing.
8Unless the reason accompanies the notice of intent not to
9renew, the notice shall state that, upon written request of
10the named insured, mailed or delivered to the insurer not less
11than thirty calendar days prior to the expiration date of the
12policy, the insurer will state the reason for nonrenewal.
132. When the reason does not accompany the notice of intent
14not to renew, the insurer shall, upon receipt of a timely
15request by the named insured, state in writing the reason
16for nonrenewal, together with notification of the right to a
17hearing before the commissioner within fifteen calendar days
18as provided herein. A statement of reason shall be mailed or
19delivered to the named insured within ten days after receipt
20of a request.
213. This section shall not apply:
22a. If the insurer has manifested its willingness to renew.
23b. If the insured fails to pay any premium due or any
24advance premium required by the insurer for renewal.
25c. If the insured is transferred from an insurer to
26an affiliate for future coverage as a result of a merger,
27acquisition, or company restructuring and if the transfer
28results in the same or broader coverage.
29 Sec. 35. Section 515D.10, Code 2021, is amended to read as
30follows:
31515D.10 Hearing before commissioner.
32Any named insured who has received a statement of reason
33for cancellation, or of reason for an insurer’s intent not
34to renew a policy, may, within fifteen calendar days of the
35receipt or delivery of a statement of reason, request a hearing
-28-1before the commissioner of insurance. The purpose of this
2hearing shall be limited to establishing the existence of the
3proof or evidence used stated by the insurer in as its reason
4for cancellation or intent not to renew. The burden of proof
5of the reason for cancellation or intent not to renew shall
6be upon the insurer. Other than the sharing of information
7required by this chapter and the rules adopted pursuant to
8the provisions of this chapter, the commissioner shall keep
9confidential the information obtained from the insured or in
10the hearing process, pursuant to section 505.8, subsection 8.
11The commissioner of insurance shall adopt rules for carrying
12out pursuant to chapter 17A to implement the provisions of this
13section.
14 Sec. 36. Section 515F.2, Code 2021, is amended by adding the
15following new unnumbered paragraph:
16 NEW UNNUMBERED PARAGRAPH. As used in this chapter, unless
17the context otherwise requires:
18 Sec. 37. Section 515F.2, Code 2021, is amended by adding the
19following new subsection:
20 NEW SUBSECTION. 2A. “Commissioner” means the commissioner
21of insurance.
22 Sec. 38. Section 515F.8, subsection 3, paragraph a, Code
232021, is amended by adding the following new subparagraph:
24 NEW SUBPARAGRAPH. (7) A license fee as established by the
25commissioner by rule.
26 Sec. 39. Section 515F.8, subsection 3, paragraph d, Code
272021, is amended to read as follows:
28d. Duration. A license issued under this section shall
29remain in effect for one year three years unless the license
30is suspended or revoked. The commissioner may, at any time
31after hearing, revoke or suspend the license of an advisory
32organization which does not comply with the requirements and
33standards of this chapter.
34 Sec. 40. Section 515F.32, Code 2021, is amended by adding
35the following new unnumbered paragraph:
-29-1 NEW UNNUMBERED PARAGRAPH. As used in this subchapter,
2unless the context otherwise requires:
3 Sec. 41. Section 515F.32, subsection 3, Code 2021, is
4amended to read as follows:
53. “Insurer” includes all companies or associations licensed
6to transact insurance business in this state under chapters
7515, 518, and 518A, reciprocal insurers issued a certificate
8of authority pursuant to chapter 520, and companies or
9associations admitted or seeking to be admitted to do business
10in this state under any of those chapters, notwithstanding any
11provision of the Code to the contrary.
12 Sec. 42. Section 515F.36, subsection 2, paragraph a,
13subparagraphs (1) and (2), Code 2021, are amended to read as
14follows:
15(1) American property casualty insurance association.
16(2) Property casualty insurers association of America
17 National association of mutual insurance companies.
18 Sec. 43. NEW SECTION. 515F.39 Cancellation or nonrenewal
19— FAIR notice.
20If basic property insurance coverage is canceled or not
21renewed other than for nonpayment of a premium pursuant to
22section 515.125, 515.126, 515.127, 515.128, 518.23, or 518A.29,
23the insurer shall notify the named insured that the named
24insured may be eligible for basic property insurance through
25the FAIR plan. The notice shall accompany the notice of
26cancellation or the intent not to renew.
27 Sec. 44. Section 515I.4, subsection 1, paragraph a, Code
282021, is amended to read as follows:
29a. Capital and surplus or its equivalent under the laws of
30the insurer’s domiciliary jurisdiction which equals the greater
31of either greatest of the following:
32(1) The minimum capital and surplus requirements under the
33laws of this state.
34(2) Fifteen million dollars.
35(3) The risk-based capital level requirements pursuant to
-30-1chapter 521E.
2 Sec. 45. Section 520.12, subsection 2, Code 2021, is amended
3to read as follows:
42. A reciprocal or interinsurance insurer shall submit
5annually, on or before March 1, a completed application for
6renewal of the insurer’s certificate of authority. An insurer
7that fails to timely file an application for renewal shall pay
8an administrative fee of five hundred dollars to the treasurer
9of state for deposit as provided in section 505.7 to the
10commissioner of insurance as established by the commissioner of
11insurance by rule.
12 Sec. 46. Section 521.18, Code 2021, is amended to read as
13follows:
14521.18 Articles of merger or consolidation — filing fees
15and approval.
16A company filing a plan to merge or consolidate under the
17provisions of this chapter shall file its articles of merger
18or consolidation with the commission for its approval. The
19fee for filing articles of merger or consolidation with
20the commission is fifty dollars shall be established by the
21commissioner by rule.
22 Sec. 47. Section 522.9, subsection 1, Code 2021, is amended
23to read as follows:
241. If an insurer fails, without just cause, to file an
25own risk and solvency assessment summary report by the filing
26date stipulated to the commissioner pursuant to section 522.5,
27subsection 1, paragraph “c”, the commissioner shall, after
28notice and hearing, impose a penalty of five hundred dollars
29for each calendar day after the stipulated date that the
30summary report is not filed. The penalties shall be collected
31by the commissioner and deposited in the general fund of the
32state pursuant to section 505.7. The maximum penalty which may
33be imposed under this section is fifty thousand dollars.
34 Sec. 48. Section 522A.5, Code 2021, is amended to read as
35follows:
-31- 1522A.5 Fees Counter employee — license fee.
2The fee for a counter employee license shall be fifty dollars
3per counter employee established by the commissioner by rule.
4In no case shall any combined fees exceed one thousand dollars
5in any calendar year for any one rental company or limited
6license or licensee or renewal license. The fees collected
7under this section shall be deposited as provided in section
8505.7.
9 Sec. 49. Section 522B.5, subsection 1, paragraph c, Code
102021, is amended to read as follows:
11c. The individual has paid the license fee of fifty dollars
12 established by the commissioner by rule.
13 Sec. 50. Section 522E.4, subsection 1, paragraph c, Code
142021, is amended to read as follows:
15c. An application fee of the lesser of fifty dollars per
16each endorsee at a location of the vendor or five hundred
17dollars per location valid for a three-year period and, for
18each three-year period thereafter, a renewal fee in the same
19amount. A maximum fee of five thousand dollars shall apply
20for licensure of a portable electronics vendor with multiple
21locations established by the commissioner by rule. The fees
22collected shall be deposited as provided in section 505.7.
23DIVISION III
24CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SALES
25 Sec. 51. Section 523A.204, subsections 1 and 2, Code 2021,
26are amended to read as follows:
271. A preneed seller shall file an annual report with the
28commissioner not later than April 1 of each year an annual
29report 15 on a form prescribed by the commissioner.
302. A preneed seller filing an annual report shall pay a
31filing fee of ten dollars established by the commissioner by
32rule per purchase agreement sold during the year covered by
33the report. Duplicate filing fees are not required for the
34same purchase agreement. If a purchase agreement has multiple
35sellers, the filing fee shall be paid by the preneed seller
-32-1actually providing the merchandise and services.
2 Sec. 52. Section 523A.204, Code 2021, is amended by adding
3the following new subsection:
4 NEW SUBSECTION. 4. The commissioner may impose a late
5fee, established by the commissioner by rule, for each day
6after April 15 that a preneed seller fails to file the preneed
7seller’s annual report. The maximum late fee that may be
8imposed under this subsection is five hundred dollars. The fee
9shall be collected by the commissioner and deposited pursuant
10to section 505.7.
11 Sec. 53. Section 523A.501, subsections 7 and 8, Code 2021,
12are amended to read as follows:
137. A preneed seller’s license expires shall expire annually
14on April 15 30. If the a preneed seller has filed a complete
15 an annual report pursuant to section 523A.204, subsection 1,
16 and paid the required fees as required in section 523A.204, the
17commissioner shall renew the preneed seller’s license until
18April 15 30 of the following year.
198. The commissioner may by rule create or accept a
20multijurisdiction preneed seller’s license. If the preneed
21seller’s license is issued by another jurisdiction, the rules
22shall require the filing of an application or notice form and
23payment of the applicable filing fee of fifty dollars for an
24application established by the commissioner by rule. The
25application or notice form utilized and the effective dates and
26terms of the license may vary from the provisions set forth in
27this section.
28 Sec. 54. Section 523A.502, subsection 5, Code 2021, is
29amended to read as follows:
305. A sales license shall expire annually on April 15 30. If
31the a sales agent has filed a substantially complete an annual
32report as required in pursuant to section 523A.502A, subsection
331, and has fulfilled the continuing education requirements
34pursuant to subsection 6, the commissioner shall renew the
35sales agent’s sales license until April 15 30 of the following
-33-1year.
2 Sec. 55. Section 523A.502A, subsection 1, Code 2021, is
3amended to read as follows:
41. A No later than April 15, a sales agent shall file an
5annual report with the commissioner not later than April 1
6of each year an annual report on a form prescribed by the
7commissioner describing each purchase agreement sold by the
8sales agent during the year. An annual report must be filed
9whether or not sales were made a sales agent sold any purchase
10agreements during the year and even if the whether or not a
11 sales agent is no longer still an agent of a preneed seller or
12is still licensed by the commissioner.
13 Sec. 56. Section 523A.502A, Code 2021, is amended by adding
14the following new subsection:
15 NEW SUBSECTION. 3. The commissioner may impose a late fee,
16established by the commissioner by rule, for each day after
17April 15 that a sales agent fails to file the sales agent’s
18annual report. The maximum late fee that may be imposed
19pursuant to this section is five hundred dollars. The fee
20shall be collected by the commissioner and deposited pursuant
21to section 505.7.
22 Sec. 57. Section 523A.601, subsection 4, Code 2021, is
23amended by striking the subsection and inserting in lieu
24thereof the following:
254. All purchase agreements, including a purchase agreement
26delivered or executed by electronic means, must have a sales
27agent identified. A purchase agreement, including a purchase
28agreement delivered or executed by electronic means, shall
29be reviewed by the sales agent identified and named in the
30purchase agreement pursuant to subsection 1, paragraph “a”, and
31signed by the purchaser and seller. If the purchase agreement
32is for mortuary science services as “mortuary science” is
33defined in section 156.1, the purchase agreement must also be
34signed by a person licensed to deliver funeral services.
35 Sec. 58. Section 523A.807, subsection 3, unnumbered
-34-1paragraph 1, Code 2021, is amended to read as follows:
2If the commissioner finds that a person has violated section
3523A.201, 523A.202, 523A.203, 523A.204, 523A.207, 523A.401,
4523A.402, 523A.403, 523A.404, 523A.405, 523A.501, or 523A.502,
5or 523A.502A, or any rule adopted pursuant thereto, the
6commissioner may order any or all of the following:
7 Sec. 59. Section 523A.812, Code 2021, is amended to read as
8follows:
9523A.812 Insurance division regulatory fund.
10The insurance division may authorize the creation of a
11special revenue fund in the state treasury, to be known as the
12insurance division regulatory fund. The commissioner shall
13allocate annually from the filing fees paid pursuant to section
14523A.204, two dollars an amount established by the commissioner
15by rule for each purchase agreement reported on a preneed
16seller’s annual report filed pursuant to section 523A.204 for
17deposit to the regulatory fund. The remainder of the fees
18collected pursuant to section 523A.204 shall be deposited
19as provided in section 505.7. The commissioner shall also
20allocate annually the examination fees paid pursuant to section
21523A.814 and any examination expense reimbursement for deposit
22to the regulatory fund. The moneys in the regulatory fund
23shall be retained in the fund. The moneys are appropriated
24and, subject to authorization by the commissioner, may be used
25to pay examiners, examination expenses, investigative expenses,
26the expenses of mediation ordered by the commissioner, consumer
27education expenses, the expenses of a toll-free telephone
28line to receive consumer complaints, and the expenses of
29receiverships established under section 523A.811. If the
30commissioner determines that funding is not otherwise available
31to reimburse the expenses of a person who receives title
32to a cemetery subject to chapter 523I, pursuant to such
33a receivership, the commissioner shall use moneys in the
34regulatory fund as necessary to preserve, protect, restore,
35and maintain the physical integrity of that cemetery and to
-35-1satisfy claims or demands for cemetery merchandise, funeral
2merchandise, and funeral services based on purchase agreements
3which the commissioner determines are just and outstanding.
4An annual allocation to the regulatory fund shall not be
5imposed if the current balance of the fund exceeds five hundred
6thousand dollars.
7 Sec. 60. Section 523A.814, Code 2021, is amended to read as
8follows:
9523A.814 Examination fee.
10In addition to the filing fee paid pursuant to section
11523A.204, subsection 2, a seller filing an annual report
12shall pay an examination fee in the amount of five dollars
13 established by the commissioner by rule for each purchase
14agreement subject to a filing fee that is sold between July 1,
152005, and December 31, 2007, and in the amount of ten dollars
16for each purchase agreement subject to a filing fee that is
17sold after December 31, 2007.
18DIVISION IV
19RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS
20 Sec. 61. Section 523C.3, subsection 2, Code 2021, is amended
21to read as follows:
222. The application shall be accompanied by all of the
23following:
24a. A license fee in the amount of five hundred dollars
25 established by the commissioner by rule.
26b. If applicable, a fee in the amount of fifty dollars
27 established by the commissioner by rule for each motor vehicle
28service contract form submitted in an application as provided
29in subsection 1, paragraph “f”.
30 Sec. 62. Section 523C.4, subsection 3, paragraphs a, b, and
31c, Code 2021, are amended to read as follows:
32a. A license renewal fee in the amount of five hundred
33dollars established by the commissioner by rule.
34b. If applicable, a fee in the amount of three percent
35 percentage established by the commissioner by rule of the
-36-1aggregate amount of payments the licensee received for the sale
2or issuance of residential service contracts in this state
3during the preceding fiscal year, provided that such fee shall
4be no less than one hundred dollars and no greater than fifty
5thousand dollars.
6c. If applicable, a fee in the amount of fifty dollars
7 established by the commissioner by rule for each motor
8vehicle service contract form submitted in a with the renewal
9application pursuant to subsection 2, and as provided in
10section 523C.3, subsection 1, paragraph “f”.
11 Sec. 63. Section 523C.24, subsection 2, Code 2021, is
12amended to read as follows:
132. The commissioner shall deposit in the service company
14oversight fund an amount equal to one-third of all licensing,
15examination, renewal, and inspection fees collected under this
16chapter, provided that the maximum amount of fees deposited
17in the fund each fiscal year shall not exceed five hundred
18thousand dollars an amount established by the commissioner by
19rule. Any remaining fees collected under this chapter and
20not deposited in the service company oversight fund shall be
21deposited as provided in section 505.7.
22DIVISION V
23RETIREMENT FACILITIES
24 Sec. 64. Section 523D.2A, unnumbered paragraph 1, Code
252021, is amended to read as follows:
26On or before March 1 of each year, a provider shall
27file a certification with the commissioner in a manner and
28according to in compliance with requirements established by the
29commissioner by rule. The certification shall be accompanied
30by a one hundred dollar administrative fee which fee in an
31amount established by the commissioner by rule and shall be
32deposited as provided in section 505.7. The certification
33shall attest that according to the best knowledge and belief of
34the attesting party, the facility administered by the provider
35is in compliance with the provisions of this chapter, including
-37-1rules adopted by the commissioner or and orders issued by the
2commissioner as authorized under this chapter. The attesting
3person may be any of the following:
4DIVISION VI
5IOWA CEMETERY ACT
6 Sec. 65. Section 523I.102, subsection 6, Code 2021, is
7amended by adding the following new paragraph:
8 NEW PARAGRAPH. d. A cemetery under the jurisdiction and
9control of a cemetery commission pursuant to section 331.325,
10subsection 3, paragraph “c”.
11 Sec. 66. Section 523I.213, Code 2021, is amended to read as
12follows:
13523I.213 Insurance division’s enforcement fund.
14A special revenue fund in the state treasury, to be known as
15the insurance division’s enforcement fund, is created under the
16authority of the commissioner. The commissioner shall allocate
17annually from the examination fees paid pursuant to section
18523I.808, an amount not exceeding fifty thousand dollars, for
19 deposit to all examination fees collected pursuant to section
20523I.808 in the insurance division’s enforcement fund. The
21moneys in the enforcement fund shall be retained in the fund.
22The moneys are appropriated and, subject to authorization by
23the commissioner, shall be used to pay examiners, examination
24expenses, investigative expenses, the expenses of consumer
25education, compliance, and education programs for filers and
26other regulated persons, and educational or compliance program
27materials, the expenses of a toll-free telephone line for
28consumer complaints, and the expenses of receiverships of
29perpetual care cemeteries established under section 523I.212.
30 Sec. 67. Section 523I.301, subsections 1 and 2, Code 2021,
31are amended to read as follows:
321. A cemetery shall disclose, prior to the sale of interment
33rights, whether opening and closing of the interment space is
34 services are included in the purchase of the interment rights.
35If opening and closing services are not included in the sale of
-38-1interment rights and the cemetery offers opening and closing
2services, the cemetery must disclose that the price for this
3service opening and closing services is subject to change
4and must disclose the current prices for opening and closing
5services provided by the cemetery.
62. The cemetery shall fully disclose all fees required for
7interment, entombment, or inurnment, or disinterment of human
8remains.
9 Sec. 68. Section 523I.309, subsection 6, Code 2021, is
10amended to read as follows:
116. A cemetery may shall disinter and relocate remains
12interred in the cemetery for the purpose of correcting an error
13made by the cemetery after obtaining a disinterment permit
14as required by section 144.34, unless the interested parties
15have a written agreement directing otherwise. The cemetery
16shall bear the costs of the disinterment and relocation. The
17cemetery shall provide written notice describing the error
18to the commissioner and to the person who has the right to
19control the interment, relocation, or disinterment of the
20remains erroneously interred, by restricted certified mail at
21the person’s last known address and sixty days prior to the
22disinterment. The notice shall include the location where the
23disinterment will occur and the location of the new interment
24space. A cemetery is not civilly or criminally liable for an
25erroneously made interment that is corrected in compliance
26with this subsection unless the error was the result of gross
27negligence or intentional misconduct.
28 Sec. 69. Section 523I.808, Code 2021, is amended to read as
29follows:
30523I.808 Examination Annual report — examination fee.
31An examination fee, established by the commissioner by rule,
32for each certificate of internment rights issued during the
33time period covered by the report shall be submitted with the a
34perpetual care cemetery’s annual report in an amount equal to
35five dollars for each certificate of interment rights issued
-39-1during the time period covered by the report filed pursuant to
2section 523I.813. The cemetery may charge the examination fee
3directly to the purchaser of the interment rights.
4 Sec. 70. Section 523I.813, subsection 3, Code 2021, is
5amended by striking the subsection and inserting in lieu
6thereof the following:
73. The commissioner may assess a late fee, established
8by the commissioner by rule, for each day after the date on
9which a perpetual care cemetery’s annual report is due that the
10perpetual care cemetery fails to file the report. The late fee
11shall be collected by the commissioner and deposited pursuant
12to section 505.7.
13DIVISION VII
14STATE INNOVATION WAIVER
15 Sec. 71. NEW SECTION. 505.18A State innovation waivers.
161. The commissioner of insurance may develop by rule
17a state innovation waiver pursuant to section 1332 of the
18federal Patient Protection and Affordable Care Act, Pub.L. No.
19111-148.
202. The commissioner of insurance may submit an application
21on behalf of the state to the United States secretary of health
22and human services and the United States secretary of the
23treasury for the state innovation waiver developed pursuant to
24subsection 1.
253. If a state innovation waiver submitted pursuant to
26subsection 2 is approved by the United States secretary of
27health and human services and the United States secretary of
28the treasury, the commissioner of insurance may implement the
29state innovation waiver in a manner consistent with applicable
30state and federal law.
314. The commissioner of insurance may adopt emergency
32rules under section 17A.4, subsection 3, and section 17A.5,
33subsection 2, paragraph “b”, to implement the provisions of
34this section and the rules shall be effective immediately upon
35filing unless a later date is specified in the rules. Any
-40-1rules adopted in accordance with this section shall also be
2published as a notice of intended action as provided in section
317A.4.
4EXPLANATION
5The inclusion of this explanation does not constitute agreement with
6the explanation’s substance by the members of the general assembly.
7This bill relates to various matters under the purview of the
8insurance division of the department of commerce. The bill is
9organized into seven divisions.
10DIVISION I — UNIFORM SECURITIES. Code section 502.304A
11(expedited registration by filing for small issuers) is amended
12to provide that an issuer, and a person registering as an
13agent of the issuer, must pay the administrator a registration
14fee established by the administrator, rather than the set
15fee amounts of $100 (issuer) and $10 (person registering as
16an agent) required by current law. Code section 502.321G
17(fees) is amended to change the nonrefundable fee for a
18registration statement filed by an offeror from $250 to an
19amount established by the administrator.
20Code section 502.410 (filing fees) is amended to change
21the broker-dealer filing fee for an application or renewal
22registration from $200 to an amount established by the
23administrator. In addition, the filing fee for registration
24or renewal as an agent is amended from $40 to an amount
25established by the administrator. Of the agent registration
26fees collected, 25 percent are appropriated to the securities
27investor education and financial literacy training fund.
28Current law provides that $10 of every $40 fee collected
29goes to the fund. The filing fee for an investment adviser
30application or renewal registration is amended from $100 to
31an amount established by the administrator. The bill also
32amends the filing fees for an investment adviser representative
33application, renewal registration, and change of registration
34from $30 to an amount established by the administrator. A
35federal covered investment adviser must pay an initial fee
-41-1and an annual notice fee in an amount established by the
2administrator, rather than the $100 fee required under current
3law.
4DIVISION II — INSURANCE. The bill amends Code section
5505.30 (service of process on the commissioner) to specify
6that the commissioner of insurance (commissioner) may set a
7reasonable fee for service made on the commissioner.
8The bill amends Code section 507A.4 (transactions where law
9not applicable) and provides that Code chapter 507A does not
10apply to a multiple employer welfare arrangement (MEWA) or a
11MEWA formed as an association health plan (AHP) that meets the
12requirements of Code chapter 513D. The bill strikes current
13Code section 513D.1 (association health plans) and replaces it
14with new provisions which detail the requirements for MEWAs and
15AHPs that offer a plan to, or that maintain a group health plan
16for, any resident of Iowa. “AHP” and “MEWA” are defined in the
17bill.
18The bill details the requirements of the annual filings with
19the commissioner required of registered AHPs and MEWAs. The
20bill provides that a MEWA that is recognized as tax-exempt
21under Internal Revenue Code section 501(c)(9), and that is
22registered with the commissioner prior to January 1, 2018,
23shall not be considered an AHP unless the MEWA affirmatively
24elects to be treated as an AHP. The bill makes conforming
25changes to Code section 513D.2 (rules and enforcement).
26Code section 507B.7 (cease and desist orders) is amended
27to provide that a person who violates any order of the
28commissioner, rather than just a cease and desist order as is
29in current law, may, after notice and hearing be subject to a
30monetary penalty and suspension or revocation of the person’s
31license.
32Code section 507E.2 (purpose) is amended by the bill to
33require that an insurance fraud bureau investigator be no more
34than 65 years of age. Current law does not place an upper
35limit on the age for insurance fraud bureau investigators.
-42-1The bill broadens the definition of “insurer” in Code
2section 507E.2A (definitions) to include any corporation,
3association, partnership, or individual engaged in the business
4of insurance, including but not limited to a corporation,
5association, partnership, or individual that issues a policy
6of workers’ compensation, a self-insured business for purposes
7of workers’ compensation liability, or a group or self-insured
8plan. The bill specifically excludes a person required to be
9licensed to sell, solicit, or negotiate insurance pursuant to
10Code chapter 522B from the definition.
11Code section 507E.8 (law enforcement authority) is amended
12by the bill to specify that an individual who is employed by
13the insurance division and is designated as a peace officer
14shall be considered a law enforcement officer and shall
15exercise the powers of a law enforcement officer as detailed
16in the bill.
17The bill amends Code section 508E.3 (license requirements)to
18change the application and renewal fees for a viatical
19settlement provider and a viatical settlement broker from $100
20to an amount established by the administrator.
21Code section 509A.15 (certification of self-insurance plans
22— exemption) is amended to change the filing fee for the end
23of fiscal year filing of a governing body of a self-insurance
24plan of a political subdivision or a school corporation from
25$100 to an amount established by the commissioner. The current
26$15 per day penalty for late filings is changed to a late fee
27established by the commissioner.
28The bill makes conforming changes to Code section 510.21
29(certificate of registration) and also requires that an
30application for registration as a third-party administrator be
31accompanied by a filing fee as established by the commissioner.
32Current law does not require submission of a filing fee.
33The bill strikes and replaces Code section 510.23 (unfair
34competition or unfair and deceptive acts or practices
35prohibited) and makes third-party administrators that violate
-43-1Code chapter 507B or 510 subject to the sanctions and penalties
2set out in Code section 507B.7. Third-party administrators are
3subject to Code chapter 507B under current law.
4Code section 511.24 (fees from domestic and foreign
5companies) is amended to change specific dollar amounts for
6certain filing fees for foreign or domestic life insurance
7companies to fee amounts determined by the commissioner.
8The bill makes conforming changes to Code section 512B.24
9(reports) and requires that the annual filing by fraternal
10benefit societies be accompanied by a fee established by the
11commissioner, rather than $50 as required by current law.
12The bill makes conforming changes to Code section 512B.25
13(annual license — renewal) and requires that for each license
14or renewal application a fraternal benefit society submit a fee
15established by the commissioner, rather than $50 as required by
16current law. The bill also changes the current administrative
17penalty of $500 for a late renewal filing to a late fee as
18established by the commissioner.
19The bill makes conforming changes to Code chapter 514G
20(long-term care insurance) and amends the Code chapter
21to change the terminology throughout the Code chapter
22from “independent review entity” to “independent review
23organization”.
24Code chapter 515.147 (fees) is amended to change filing
25fees for certain filings from specific dollar amounts to fees
26determined by the commissioner. The bill makes conforming
27changes to and amends Code section 515A.10 to provide more
28specific requirements related to licensing requirements, fees,
29and penalties for advisory organizations.
30The bill amends Code section 515F.8 (licensing advisory
31organizations) to require licensing advisory organizations
32to submit a fee, determined by the commissioner, with their
33application for a license, and makes the license effective for
34three years, rather than the one year under current law.
35Code section 515F.32 is amended to add reciprocal insurers
-44-1to the definition of “insurer”. Code section 515F.36 is
2amended to change the makeup of the membership of the governing
3committee that administers the FAIR plan. The bill creates a
4new requirement that if basic property insurance coverage is
5canceled or not renewed other than for nonpayment of a premium
6pursuant to Code section 515.125, 515.126, 515.127, 515.128,
7518.23, or 518A.29, the insurer must notify the named insured
8that they may be eligible for basic property insurance through
9the FAIR plan, and the notice must accompany the notice of
10cancellation or the intent not to renew.
11The bill amends Code section 515I.4 (requirements for
12eligible surplus lines insurers) to allow a nonadmitted
13insurer seeking to qualify as an eligible surplus line insurer
14the option of demonstrating that the nonadmitted insurer
15has capital and surplus under the laws of the nonadmitted
16insurer’s domiciliary that equal the risk-based capital level
17requirements required by Iowa law. Current law requires the
18nonadmitted insurer to demonstrate that the nonadmitted insurer
19has capital and surplus under the laws of the nonadmitted
20insurer’s domiciliary that equal the greater of the minimum
21capital and surplus required under the laws of this state, or
22$15 million.
23Code section 520.12 (certificate of authority — renewal —
24penalties) is amended to change the annual renewal fee for a
25reciprocal or interinsurance insurer from $500 to be submitted
26to the treasurer of state, to an administrative fee as
27established by the commissioner to be paid to the commissioner.
28The bill amends Code section 521.18 (articles of merger
29or consolidation) to change the fee for specific companies
30to file a plan to merge or consolidate from $50 to an amount
31established by the commissioner.
32Code section 522.9 (penalties) is amended to allow the
33commissioner to deposit penalties that have been collected due
34to insurers’ failure to file a timely own risk and solvency
35assessment summary report pursuant to Code section 505.7.
-45-1Current law requires the commissioner to deposit the penalties
2into the general fund of the state.
3Code section 522A.5 (counter employee — license fee) is
4amended to change the license fee for a counter employee from
5$50 to an amount established by the commissioner, and removes
6the cap of $1,000 per calendar year for all combined fees paid
7by any one rental company.
8The bill amends Code section 522B.5 (application for
9license) to change the application fee for a resident insurance
10producer license from $50 to an amount established by the
11commissioner.
12Code section 522E.4 (application and fees) is amended to
13change the application fee for a portable electronics insurance
14license from a variable dollar amount to an amount established
15by the commissioner. The bill also removes the $5,000 cap
16on the total application fees that can be charged for the
17licensure of a portable electronics vendor with multiple
18locations.
19The bill makes conforming changes to Code sections 508E.2
20(definitions), 509.1(9) (form of policy), 509.19(2) (claims
21and premium disclosures), 515A.2 (definitions), 515A.6
22(rating organizations), 515A.10 (advisory organizations),
23515D.4 (notice of cancellation — reasons), 515D.5 (delivery
24of notice), 515D.6 (prohibited reasons), 515D.7 (notice of
25intent), 515D.10 (hearing before commissioner), and 515F.2
26(definitions).
27DIVISION III — CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL
28SALES. The bill amends Code section 523A.204 (preneed seller
29annual reporting requirements) to require preneed sellers to
30file an annual report by April 15 rather than the current date
31of April 1. The bill changes the filing fee for the report
32from $10 to an amount established by the commissioner. The
33bill allows the commissioner to impose a late fee for each
34day the report is late, up to a maximum of $500. The fee is
35to be collected by the commissioner and deposited pursuant to
-46-1Code section 505.7. Code section 523A.501 (preneed sellers —
2licenses) is amended to specify that preneed sellers’ licenses
3expire annually on April 30, rather than the current expiration
4date of April 15. The bill changes the filing fee for a
5multijurisdictional preneed seller’s license that is issued by
6another jurisdiction from $50 to an amount established by the
7commissioner.
8The bill amends Code section 523A.502 (sales agents —
9licenses) to specify that sales agents’ licenses expire
10annually on April 30, rather than the current expiration date
11of April 15, and an agent must have fulfilled continuing
12education requirements to qualify for renewal. Code section
13523A.502A (sales agent annual reporting requirements) is
14amended to require sales agents to file an annual report by
15April 15, rather than the current date of April 1. The bill
16allows the commissioner to impose a late fee for each day that
17the annual report is late, up to a maximum of $500. The fee is
18to be collected by the commissioner and deposited pursuant to
19Code section 505.7.
20The bill strikes and replaces Code section 523A.601
21(disclosures) and requires that all purchase agreements,
22including those delivered or executed by electronic means,
23identify a sales agent. Purchase agreements must also be
24reviewed by the sales agent and signed by the purchaser and
25seller. If a purchase agreement is for mortuary science
26services, the purchase agreement must also be signed by a
27person licensed to deliver funeral services.
28The bill amends Code section 523A.812 (insurance division
29regulatory fund) to allocate an amount established by the
30commissioner to the regulatory fund from the filing fees for
31each purchase agreement reported on a preneed seller’s annual
32report. Current law requires the commissioner to allocate
33$2 from each filing fee to the regulatory fund. The bill
34also removes the prohibition on an annual allocation to the
35regulatory fund if the current balance exceeds $500,000.
-47- 1Code section 523A.814 (examination fee) is amended to change
2the examination fee for a seller’s annual report from $5,
3or other set dollar amount, to an amount established by the
4commissioner.
5The bill makes conforming changes to Code section 523A.807
6(prosecutions for violations of law).
7DIVISION IV — RESIDENTIAL AND MOTOR VEHICLE SERVICE
8CONTRACTS. Code section 523C.3 (application for license)
9is amended to change the $500 fee for an application for
10a service company license to a fee established by the
11commissioner. The current fee of $50 for each motor vehicle
12service contract form submitted with an application is also
13changed to a fee as established by the commissioner. Code
14section 523C.4 (license expiration and renewal) is amended to
15change the license renewal fee of $500 to a fee established
16by the commissioner. The bill amends the fee, based on the
17aggregate amount of payments a licensee received for the sale
18or issuance of residential service contracts in this state
19during the preceding fiscal year, from 3 percent per contract
20to a percentage established by the commissioner by rule, and
21also removes the minimum and maximum dollar amount of fees
22that a licensee is required to submit. In addition, the bill
23amends the fee for each motor vehicle service contract form
24submitted with an application from $50 to a fee established by
25the commissioner.
26Code section 523C.24 (service company oversight fund) is
27amended to allow the commissioner to establish the amount
28deposited in the service company oversight fund from all
29licensing, examination, renewal, and inspection fees collected
30under Code chapter 523C. The bill also removes the current
31$500,000 maximum cap on fees that may be deposited in the fund
32each fiscal year.
33DIVISION V — RETIREMENT FACILITIES. Code section 523D.2A
34is amended to change the administrative fee submitted by a
35provider with its certification filing from $100 to an amount
-48-1established by the commissioner.
2DIVISION VI — IOWA CEMETERY ACT. Code section 523I.102
3(definitions) is amended to exclude specific cemeteries, under
4the jurisdiction and control of a cemetery commission that
5has jurisdiction and control over pioneer cemeteries, from
6the definition of “cemetery” for purposes of Code chapter
7523I. Code section 523I.213 (insurance division’s enforcement
8fund) is amended to remove the cap on the allocation to the
9insurance division’s enforcement fund of examination fees paid
10by perpetual cemeteries with their annual report. The bill
11requires the commissioner to deposit all of the examination
12fees in the enforcement fund.
13Code section 523I.301 (disclosure requirements — prices
14and fees) is amended to require cemeteries to disclose, prior
15to the sale of interment rights, whether opening and closing
16services are included in the purchase price. The bill also
17requires cemeteries to disclose all fees associated with
18disinterment services.
19Code section 523I.309 (interment, relocation, or
20disinterment of remains) is amended to require cemeteries
21to disinter and relocate remains interred in a cemetery for
22the purpose of correcting an error made by the cemetery,
23unless the interested parties have a written agreement
24directing otherwise. The cemetery must bear all costs of
25the disinterment and relocation. Current law permits, but
26does not require, a cemetery to disinter and relocate such
27remains, and the cemetery is not required to bear the cost of
28disinterment and relocation. The bill also allows cemeteries
29to be held civilly and criminally liable for erroneously made
30interments. Current law exempts cemeteries from civil and
31criminal liability for erroneously made interments.
32The bill amends Code section 523I.808 (examination fee) to
33require an examination fee, established by the commissioner,
34for each certificate of interment rights issued during the
35period covered by a perpetual care cemetery’s annual report.
-49-1Under current law, the fee is $5 per certificate.
2The bill amends Code section 523I.813 (annual report by
3perpetual care cemeteries) to allow, rather than to require,
4the commissioner to impose a late penalty on a perpetual care
5cemetery that fails to timely file its annual report.
6DIVISION VII — STATE INNOVATION WAIVER. The bill
7authorizes the commissioner to develop by rule a state
8innovation waiver (waiver) pursuant to section 1332 of the
9federal Patient Protection and Affordable Care Act, Pub.L. No.
10111-148, and to submit an application on behalf of the state
11to the United States secretary of health and human services
12and the United States secretary of the treasury (secretaries)
13for the waiver. If a waiver is approved by the secretaries,
14the commissioner is authorized to implement the waiver in a
15manner consistent with applicable state and federal law. The
16bill authorizes the commissioner to adopt emergency rules
17to implement the waiver and the rules are to be effective
18immediately upon filing unless a later date is specified in the
19rules. Any rules that are adopted must also be published as a
20notice of intended action.
-50-ko/rn
2the insurance division of the department of commerce,
3providing fees, making an appropriation, and resolving
4inconsistencies.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2UNIFORM SECURITIES
3 Section 1. Section 502.304A, subsection 3, paragraph g,
4Code 2021, is amended to read as follows:
5g. The issuer must pay to the administrator a fee of one
6hundred dollars established by the administrator by rule and
7is not required to pay the filing fee set forth in section
8502.305, subsection 2.
9 Sec. 2. Section 502.304A, subsection 5, Code 2021, is
10amended to read as follows:
115. Agent registration. In connection with an offering
12registered under this section, a person may be registered as
13an agent of the issuer under section 502.402 by the filing of
14an application by the issuer with the administrator for the
15registration of the person as an agent of the issuer and the
16paying of a fee of ten dollars established by the administrator
17by rule. Notwithstanding any other provision of this chapter,
18the registration of the agent shall be effective until
19withdrawn by the issuer or until the securities registered
20pursuant to the registration statement have all been sold,
21whichever occurs first. The registration of an agent shall
22become effective when ordered by the administrator or on the
23fifth business day after the agent’s application has been
24filed with the administrator, whichever occurs first, and the
25administrator shall not impose further conditions upon the
26registration of the agent. However, the administrator may
27deny, revoke, suspend, or withdraw the registration of the
28agent at any time as provided in section 502.412. An agent
29registered solely pursuant to this section is entitled to sell
30only securities registered under this section.
31 Sec. 3. Section 502.321G, Code 2021, is amended to read as
32follows:
33502.321G Fees.
34The administrator shall charge a nonrefundable filing fee of
35two hundred fifty dollars established by the administrator by
-1-1rule for a registration statement filed by an offeror. The fee
2shall be deposited as provided in section 505.7.
3 Sec. 4. Section 502.410, Code 2021, is amended to read as
4follows:
5502.410 Filing fees.
61. Broker-dealers. A person shall pay a fee of two hundred
7dollars established by the administrator by rule when initially
8filing an application for registration as a broker-dealer
9and a fee of two hundred dollars when filing a renewal of
10registration as a broker-dealer. If the filing results in a
11denial or withdrawal, the administrator shall retain the fee.
122. Agents. The fee for an individual is forty dollars
13when filing an application for registration as an agent, a
14fee of forty dollars when filing a renewal of registration
15as an agent, and a fee of forty dollars when or filing for a
16change of registration as an agent shall be established by the
17administrator by rule. Of each forty-dollar fee collected, ten
18dollars twenty-five percent is appropriated to the securities
19investor education and financial literacy training fund
20established under section 502.601, subsection 5. If the filing
21results in a denial or withdrawal, the administrator shall
22retain the fee.
233. Investment advisers. A person shall pay a fee of one
24hundred dollars established by the administrator by rule when
25filing an application for registration as an investment adviser
26and a fee of one hundred dollars when filing a renewal of
27registration as an investment adviser. If the filing results
28in a denial or withdrawal, the administrator shall retain the
29fee.
304. Investment adviser representatives.
31a. The fee for an individual is thirty dollars when filing
32an application for registration as an investment adviser
33representative, a fee of thirty dollars when filing a renewal
34of registration as an investment adviser representative, and a
35fee of thirty dollars or when filing a change of registration
-2-1as an investment adviser representative shall be the amount
2established by the administrator by rule. If the filing
3results in a denial or withdrawal, the administrator shall
4retain the fee.
5b. However, an An investment adviser representative is shall
6 not be required to pay a filing fee if the investment adviser
7is a sole proprietorship or the substantial equivalent, and the
8investment adviser representative is the same individual as the
9investment adviser.
105. Federal covered investment advisers. A federal covered
11investment adviser required to file a notice under section
12502.405 shall pay an initial fee of one hundred dollars and
13an annual notice fee of one hundred dollars in an amount
14established by the administrator by rule.
156. Payment. A person required to pay a filing or notice
16 fee under this section may transmit the fee through or to a
17designee as a permitted by the administrator by rule or by
18 order provides issued by the administrator under this chapter.
197. Deposit of fees. Except as otherwise provided in
20subsection 2, fees collected under this section shall be
21deposited as provided in section 505.7.
22DIVISION II
23INSURANCE
24 Sec. 5. Section 505.30, subsection 2, Code 2021, is amended
25to read as follows:
262. The commissioner may collect a reasonable fee,
27established by the commissioner by rule, each time service of
28process is made on the commissioner as set forth in subsection
291 or as otherwise allowed by law. A fee collected by the
30commissioner under this subsection shall be used and is
31appropriated to the insurance division to offset the costs
32of the commissioner acting as agent or attorney for service
33of process. The party to a proceeding requesting service of
34process is entitled to recover the fee paid pursuant to this
35subsection and any rules adopted under this section as costs if
-3-1the party prevails in the proceeding.
2 Sec. 6. Section 507A.4, subsection 9, Code 2021, is amended
3by striking the subsection and inserting in lieu thereof the
4following:
59. Transactions involving a multiple employer welfare
6arrangement as defined in section 3 of the federal Employee
7Retirement Income Security Act of 1974, 29 U.S.C. §1002,
8paragraph 40, or a multiple employer welfare arrangement formed
9as an association health plan pursuant to 29 C.F.R. pt.2510
10that complies with chapter 513D.
11 Sec. 7. Section 507B.7, Code 2021, is amended to read as
12follows:
13507B.7 Cease and desist orders Orders and penalties.
141. If, after hearing, the commissioner determines that a
15person has engaged in an unfair method of competition or an
16unfair or deceptive act or practice, the commissioner shall
17reduce the findings to writing and shall issue and cause to
18be served upon the person charged with the violation a copy
19of such findings, an order requiring such person to cease
20and desist from engaging in such method of competition, act,
21or practice, and the commissioner may at the commissioner’s
22discretion order any one or more of the following:
23a. Payment of a civil penalty of not more than one thousand
24dollars for each act or violation of this subtitle, but not
25to exceed an aggregate of ten thousand dollars, unless the
26person knew or reasonably should have known the person was in
27violation of this subtitle, in which case the penalty shall be
28not more than five thousand dollars for each act or violation,
29but not to exceed an aggregate penalty of fifty thousand
30dollars in any one six-month period. If the commissioner finds
31that a violation of this subtitle was directed, encouraged,
32condoned, ignored, or ratified by the employer of the person or
33by an insurer, the commissioner shall also assess a penalty to
34the employer or insurer.
35b. Suspension or revocation of the license of a person as
-4-1defined in section 507B.2, subsection 1, if the person knew or
2reasonably should have known the person was in violation of
3this subtitle.
4c. Payment of interest at the rate of ten percent per
5annum if the commissioner finds that the insurer failed to
6pay interest as required under section 507B.4, subsection 3,
7paragraph “p”.
82. Until the expiration of the time allowed under section
9507B.8 for filing a petition for review if no such petition has
10been duly filed within such time, or, if a petition for review
11has been filed within such time, then until the transcript of
12the record in the proceeding has been filed in the district
13court, the commissioner may at any time, upon such notice and
14in such manner as the commissioner may deem proper, modify
15or set aside in whole or in part any order issued by the
16commissioner under this section.
173. After the expiration of the time allowed for filing
18such a petition for review if no such petition has been duly
19filed within such time, the commissioner may at any time, after
20notice and opportunity for hearing, reopen and alter, modify,
21or set aside, in whole or in part, any order issued by the
22commissioner under this section, whenever in the commissioner’s
23opinion conditions of fact or of law have so changed as
24to require such action, or if the public interest shall so
25require.
264. Any person who violates a cease and desist an order
27of the commissioner, and while such order is in effect, may,
28after notice and hearing and upon order of the commissioner,
29be subject at the discretion of the commissioner to any one or
30more of the following:
31a. A monetary penalty of not more than ten thousand dollars
32for each and every act or violation. A penalty collected
33under this lettered paragraph shall be deposited as provided
34in section 505.7.
35b. Suspension or revocation of such person’s license.
-5-1 Sec. 8. Section 507E.2, Code 2021, is amended to read as
2follows:
3507E.2 Purpose Insurance fraud bureau.
41. An insurance fraud bureau is created within the insurance
5division. Upon a reasonable determination by the division, by
6its own inquiries or as a result of a complaint filed with the
7division, that a person has engaged in, is engaging in, or may
8be engaging in an act or practice that violates any provision
9of the Code subject to the jurisdiction of the commissioner,
10the division may administer oaths and affirmations, serve
11subpoenas ordering the attendance of witnesses, and collect
12evidence related to such act or practice.
132. An insurance fraud bureau investigator shall be no older
14than sixty-five years of age.
15 Sec. 9. Section 507E.2A, subsection 2, Code 2021, is amended
16to read as follows:
172. “Insurer” includes an insurer means any corporation,
18association, partnership, or individual engaged in the business
19of insurance, including but not limited to a corporation,
20association, partnership, or individual that issues a policy
21of workers’ compensation, a self-insured business for purposes
22of workers’ compensation liability, or a group or self-insured
23plan as described in section 87.4. “Insurer” does not include
24a person required to be licensed to sell, solicit, or negotiate
25insurance pursuant to chapter 522B.
26 Sec. 10. Section 507E.8, Code 2021, is amended to read as
27follows:
28507E.8 Law enforcement authority.
291. An individual employed by the division and designated as
30a peace officer shall be considered a law enforcement officer
31as that term is defined in section 80B.3, and shall exercise
32the powers of a law enforcement officer as follows:
33a. For purposes of an arrest resulting from a criminal
34violation of any provision of the Code subject to the
35jurisdiction of the commissioner established as a result of
-6-1an investigation pursuant to this chapter, an insurance fraud
2bureau investigator shall have the authority and status of a
3law enforcement officer pursuant to section 80B.3, subsection
43.
5b. While conducting an investigation or engaged in an
6assignment authorized by this chapter or ordered by the
7commissioner.
8c. To protect life if a public offense is committed in the
9presence of the peace officer.
10d. While providing assistance to a law enforcement agency or
11another law enforcement officer.
12e. While providing assistance at the request of a member of
13the public.
142. The laws Laws applicable to an arrest of an individual
15 by a law enforcement officer of the state shall apply to an
16insurance fraud bureau investigator individual employed by
17the division and designated as a peace officer. An insurance
18fraud bureau investigator individual employed by the division
19and designated as a peace officer shall have the power to
20execute arrest warrants and search warrants, serve subpoenas
21issued for the examination, investigation, and trial of all
22offenses identified through the course of an investigation
23conducted pursuant to this section, and arrest upon probable
24cause without warrant a person found in the act of committing
25a violation of a provision of this chapter or a law of this
26state.
27 Sec. 11. Section 508E.2, subsection 14, Code 2021, is
28amended to read as follows:
2914. “Viatical settlement broker” means a person, including
30a life insurance producer as provided for in section 508E.3,
31who, working exclusively on behalf of a viator and for a fee,
32commission, or other valuable consideration, offers or attempts
33to negotiate viatical settlement contracts between a viator
34and one or more viatical settlement providers or one or more
35viatical settlement brokers. Notwithstanding the manner in
-7-1which the viatical settlement broker is compensated, a viatical
2settlement broker is deemed to represent only the viator,
3and not the insurer or the viatical settlement provider, and
4owes a fiduciary duty to the viator to act according to the
5viator’s instructions and in the best interest of the viator.
6“Viatical settlement broker” does not include an attorney,
7certified public accountant, or a financial planner accredited
8by a nationally recognized accreditation agency who is retained
9to represent the viator and whose compensation is not paid
10directly or indirectly by the viatical settlement provider or
11purchaser.
12 Sec. 12. Section 508E.3, subsections 2 and 3, Code 2021, are
13amended to read as follows:
142. An application for a viatical settlement provider
15or viatical settlement broker license shall be made to the
16commissioner by the applicant on a form prescribed by the
17commissioner, and the application shall be accompanied by a
18fee of not more than one hundred dollars as provided by rules
19adopted by the commissioner.
203. A viatical settlement provider or viatical settlement
21broker license term shall be three years and the license
22may be renewed upon payment of a renewal fee of not more
23than one hundred dollars as provided by rules adopted by the
24commissioner. A failure to pay the fee by the renewal date
25shall result in expiration of the license.
26 Sec. 13. Section 509.1, subsection 9, Code 2021, is amended
27to read as follows:
289. A policy of group health insurance coverage issued to an
29associated health plan a multiple employer welfare arrangement
30 pursuant to section 513D.1 chapter 513D that is subject to
31regulation by the commissioner.
32 Sec. 14. Section 509.19, subsection 2, paragraph d, Code
332021, is amended to read as follows:
34d. A multiple employer welfare arrangement, as defined
35in section 3 of the federal Employee Retirement Income
-8-1Security Act of 1974, 29 U.S.C. §1002(40), paragraph 40,
2or a multiple employer welfare arrangement formed as an
3association health plan pursuant to 29 C.F.R. pt.2510,
4that meets the requirements of section 507A.4, subsection 9,
5paragraph “a” chapter 513D.
6 Sec. 15. Section 509A.15, subsection 1, paragraph a,
7unnumbered paragraph 1, Code 2021, is amended to read as
8follows:
9Within ninety calendar days following the end of a fiscal
10year, the governing body of a self-insurance plan of a
11political subdivision or a school corporation shall file with
12the commissioner of insurance a certificate of compliance,
13actuarial opinion, and an annual financial report. The
14filing shall be accompanied by a fee of one hundred dollars
15 established by the commissioner by rule. A penalty of fifteen
16dollars per day late fee established by the commissioner
17by rule shall be assessed for failure to comply with the
18ninety-day ninety-calendar-day filing requirement, except that
19the commissioner may waive the penalty late fee upon a showing
20that special circumstances exist which justify the waiver. The
21certificate shall be signed and dated by the appropriate public
22official representing the governing body, and shall certify the
23following:
24 Sec. 16. Section 510.21, Code 2021, is amended to read as
25follows:
26510.21 Certificate of registration required Certificates —
27 registration and renewal.
28A person shall not act as or represent oneself to be a
29third-party administrator in this state, other than an adjuster
30licensed in this state for the kinds of business for which
31the person is acting as a third-party administrator, unless
32the person holds a current certificate of registration as
33a third-party administrator issued by the commissioner of
34insurance. A certificate of registration as a third-party
35administrator is renewable shall be renewed every three
-9-1years. Failure to hold a current certificate subjects the
2 of registration shall subject a third-party administrator to
3the sanctions set out in section 507B.7. The An application
4for a certificate of registration shall be accompanied by a
5filing fee as established by the commissioner by rule. A
6 certificate of registration shall be issued by the commissioner
7to a third-party administrator unless the commissioner,
8after due notice and hearing, determines that the third-party
9administrator is not competent, trustworthy, financially
10responsible, or of good personal and business reputation, or
11has had a previous an application for an insurance license
12denied for cause within the preceding five years.
13An application for registration shall be accompanied by a
14filing fee of one hundred dollars. After notice and hearing,
15the commissioner may impose any or all of the sanctions set out
16in section 507B.7, upon finding that either the third-party
17administrator violated any of the requirements of sections
18510.12 through 510.20 and this section, or the third-party
19administrator is not competent, trustworthy, financially
20responsible, or of good personal and business reputation.
21 If the commissioner denies an application for registration
22or renewal, a written notice that specifies the reasons for
23the denial or nonrenewal shall be provided to the applicant.
24Pursuant to chapter 17A, upon the applicant’s request, the
25commissioner shall grant the applicant a hearing on the denial
26or nonrenewal.
27 Sec. 17. Section 510.23, Code 2021, is amended by striking
28the section and inserting in lieu thereof the following:
29510.23 Violations and penalties.
301. If, after hearing, the commissioner determines that
31a third-party administrator has violated this chapter, or
32chapter 507B, the commissioner may order any one or more of the
33sanctions or penalties set out in section 507B.7.
342. If, after hearing, the commissioner determines that a
35person has aided and abetted a third-party administrator in
-10-1commission of a violation of this chapter, or chapter 507B,
2the commissioner may order any one or more of the sanctions or
3penalties set out in section 507B.7.
43. If, after hearing, the commissioner determines that
5a third-party administrator is not competent, trustworthy,
6financially responsible, or of good personal and business
7reputation, the commissioner may order any one or more of the
8sanctions and penalties set out in section 507B.7.
9 Sec. 18. Section 511.24, Code 2021, is amended to read as
10follows:
11511.24 Fees from domestic Domestic and foreign companies —
12 fees.
13When not otherwise provided, a foreign or domestic life
14insurance company doing business in this state shall pay to the
15commissioner of insurance the following fees a fee, established
16by the commissioner by rule, for all of the following:
171. For filing an application to do business, or an
18application to renew a certificate of authority, fifty dollars.
192. For issuing a certificate of authority to do business in
20this state, or for renewing a certificate, fifty dollars.
213. For filing amended articles of incorporation, fifty
22dollars.
234. For issuing an amended certificate of authority,
24twenty-five dollars.
255. For affixing the official seal to any paper filed with
26the division, ten dollars.
27 Sec. 19. Section 512B.24, Code 2021, is amended to read as
28follows:
29512B.24 Reports Annual statement.
30Reports shall be filed in accordance with this section.
311. A society transacting business in this state shall, on or
32before March 1 annually, unless for cause shown the time has
33been extended by the commissioner, shall annually file with the
34commissioner a true statement of its the society’s financial
35condition, transactions, and affairs for the preceding calendar
-11-1year and shall pay a fee of fifty dollars established by the
2commissioner by rule. The statement may be in general form and
3content as approved by the national association of insurance
4commissioners for fraternal benefit societies and shall be
5supplemented by additional information as adopted by rule of
6the commissioner.
72. As part of the a society’s annual statement, a the
8 society shall, on or before March 1, file with the commissioner
9of insurance a valuation of its the society’s certificates
10in force on the last preceding December 31. However, the
11commissioner may, for cause shown, extend the time for filing
12the valuation for not more than two consecutive calendar
13months. The valuation shall be done completed in accordance
14 compliance with the standards specified in section 512B.23.
15The valuation and underlying data shall be certified by a
16qualified actuary or, at the expense of the society, verified
17by the actuary of the department of insurance of the state of
18domicile of the society.
193. A society failing to file the society’s annual statement
20in the form and within the time provided by compliance with
21 this section shall forfeit one hundred dollars for each day
22during which the default continues, and, upon notice by the
23commissioner to that effect, the society’s authority to do
24business in this state shall cease while during the duration of
25 the default continues.
26 Sec. 20. Section 512B.25, Code 2021, is amended to read as
27follows:
28512B.25 Annual license — renewal.
29The authority of a society to transact business in this
30state may be renewed annually. A society’s license terminates
31 to transact business in this state shall terminate on the
32first day of June following the issuance or the renewal of
33the society’s license. A society shall submit annually on
34or before March 1 a completed application for renewal of its
35license. For each license or renewal the society shall pay
-12-1the commissioner a fee of fifty dollars established by the
2commissioner by rule. A society that fails to timely file an
3application for renewal shall pay an administrative penalty
4of five hundred dollars to the treasurer of state for deposit
5as provided in section 505.7 a late fee as established by the
6commissioner by rule. A duly certified copy or duplicate
7of the a society’s license is prima facie evidence that the
8licensee is a fraternal benefit society within the meaning of
9this chapter.
10 Sec. 21. Section 513D.1, Code 2021, is amended by striking
11the section and inserting in lieu thereof the following:
12513D.1 Multiple employer welfare arrangements and association
13health plans.
141. As used in this chapter, unless the context otherwise
15requires:
16a. “Association health plan” or “AHP” means a multiple
17employer welfare arrangement formed as an association health
18plan pursuant to 29 C.F.R. pt.2510.
19b. “Commissioner” means the commissioner of insurance.
20c. “Multiple employer welfare arrangement” or “MEWA” means a
21multiple employer welfare arrangement as defined in section 3
22of the federal Employee Retirement Income Security Act of 1974,
2329 U.S.C. §1002, paragraph 40.
242. An AHP or MEWA that offers a plan to, or maintains a
25group health plan for, any resident of this state shall be
26subject to the jurisdiction of the commissioner and shall
27comply with all of the following requirements:
28a. The AHP or MEWA must be administered by an insurer
29authorized to do the business of insurance in this state or
30an authorized third-party administrator that holds a current
31certificate of registration pursuant to section 510.21.
32b. The AHP or MEWA must be established by a trade,
33industry, or professional association of employers that has a
34constitution or bylaws, is organized and maintained in good
35faith, and has membership stability as defined by rules adopted
-13-1by the commissioner.
2c. The AHP or MEWA must register with the commissioner and
3obtain and maintain a certificate of registration issued by the
4commissioner.
5d. The AHP or MEWA shall comply with all rules and solvency
6standards established by rules adopted by the commissioner.
73. An AHP or MEWA that does not meet the solvency standards
8pursuant to subsection 2, paragraph “d”, shall be subject to
9chapter 507C.
104. An AHP or MEWA that meets all of the requirements of
11subsection 2 shall not be considered any of the following:
12a. An insurance company or association of whatever kind or
13character under section 432.1.
14b. A member of the Iowa individual health benefit
15reinsurance association pursuant to section 513C.10, subsection
161.
17c. A member insurer of the Iowa life and health insurance
18guaranty association pursuant to section 508C.5.
195. An AHP or MEWA that is registered with the commissioner
20pursuant to subsection 2, paragraph “c”, shall annually file
21with the commissioner on or before March 1 a copy of the report
22required to be filed by the AHP or MEWA with the United States
23department of labor pursuant to 29 C.F.R. §2520.101-2.
246. An AHP or MEWA that is registered with the commissioner
25pursuant to subsection 2, paragraph “c”, shall annually file
26with the commissioner a report on or before March 1 for the
27preceding calendar year. The annual report shall contain the
28information and be in a form and manner as prescribed by the
29commissioner.
307. A foreign or domestic AHP or MEWA doing business in the
31state shall pay fees as prescribed by the commissioner unless
32otherwise provided by law.
338. A MEWA that is recognized as tax-exempt under Internal
34Revenue Code section 501(c)(9) and that is registered with the
35commissioner prior to January 1, 2018, shall not be considered
-14-1an AHP unless the MEWA affirmatively elects to be treated as
2an AHP.
3 Sec. 22. Section 513D.2, subsection 1, Code 2021, is amended
4to read as follows:
51. The commissioner of insurance shall adopt rules, as
6necessary, pursuant to chapter 17A to administer this chapter.
7 Sec. 23. Section 514G.103, subsection 10, Code 2021, is
8amended to read as follows:
910. “Independent review entity organization” means a review
10entity organization certified by the commissioner pursuant to
11section 514G.110, subsection 4.
12 Sec. 24. Section 514G.110, subsections 4, 5, 6, 7, 8, and 9,
13Code 2021, are amended to read as follows:
144. Qualifications of independent review entities
15 organizations. The commissioner shall maintain a list of
16qualified independent review entities organizations that are
17certified by the commissioner. Independent review entities
18 organizations shall be recertified by the commissioner every
19two years in order to remain on the list. In order to be
20certified, an independent review entity organization shall meet
21all of the following criteria:
22a. Have on staff, or contract with, a qualified, licensed
23health care professional in an appropriate field for
24determining an insured’s functional or cognitive impairment who
25can conduct an independent review.
26(1) In order to be qualified, a licensed health care
27professional who is a physician shall hold a current
28certification by a recognized American medical specialty
29board in a specialty appropriate for determining an insured’s
30functional or cognitive impairment.
31(2) In order to be qualified, a licensed health care
32professional who is not a physician shall hold a current
33certification in the specialty in which that person is
34licensed, by a recognized American specialty board in a
35specialty appropriate for determining an insured’s functional
-15-1or cognitive impairment.
2b. Ensure that any licensed health care professional who
3conducts an independent review has no history of disciplinary
4actions or sanctions, including but not limited to the loss
5of staff privileges or any participation restrictions taken
6or pending by any hospital or state or federal government
7regulatory agency.
8c. Ensure that the independent review entity organization
9 or any of its employees, agents, or licensed health care
10professionals utilized does not receive compensation of any
11type that is dependent on the outcome of a review.
12d. Ensure that the independent review entity organization
13 or any of its employees, agents, or licensed health care
14professionals utilized are not in any manner related to,
15employed by, or affiliated with the insured or with a person
16who previously provided medical care to the insured.
17e. Ensure that an independent review entity organization
18 or any of its employees, agents, or licensed health care
19professionals utilized is not a subsidiary of, or owned or
20controlled by, an insurer or by a trade association of insurers
21of which the insurer is a member.
22f. Have a quality assurance program on file with the
23commissioner that ensures the timeliness and quality of reviews
24performed, the qualifications and independence of the licensed
25health care professionals who perform the reviews, and the
26confidentiality of the review process.
27g. Have on staff or contract with a licensed health care
28practitioner, as defined in section 514G.103, subsection 3, who
29is qualified to certify that an individual is chronically ill
30for purposes of a qualified long-term care insurance contract.
315. Independent review process. The independent review
32process shall be conducted as follows:
33a. Within three business days of receiving a notice from the
34commissioner of the certification of a request for independent
35review or receipt of a denial of an insurer’s appeal from such
-16-1a certification, the insurer shall do all of the following:
2(1) Select an independent review entity organization from
3the list certified by the commissioner and notify the insured
4in writing of the name, address, and telephone number of the
5selected independent review entity selected organization. The
6selected independent review entity selected organization shall
7utilize a licensed health care professional with qualifications
8appropriate to the benefit trigger determination that is under
9review.
10(2) Notify the independent review entity organization
11 that it has been selected to conduct an independent review
12of a benefit trigger determination and provide sufficient
13descriptive information to enable the independent review entity
14 organization to provide licensed health care professionals who
15will be qualified to conduct the review.
16(3) Provide the commissioner with a copy of the notices sent
17to the insured and to the selected independent review entity
18selected organization.
19b. Within three business days of receiving a notice from
20an insurer that it has been selected to conduct an independent
21review, the independent review entity organization shall do one
22of the following:
23(1) Accept its selection as the independent review entity
24 organization, designate a qualified licensed health care
25professional to perform the independent review, and provide
26notice of that designation to the insured and the insurer,
27including a brief description of the health care professional’s
28qualifications and the reasons that person is qualified to
29determine whether the insured’s benefit trigger has been met.
30A copy of this notice shall be sent to the commissioner via
31facsimile. The independent review entity organization is not
32required to disclose the name of the health care professional
33selected.
34(2) Decline its selection as the independent review entity
35 organization or, if the independent review entity organization
-17-1 does not have a licensed health care professional who is
2qualified to conduct the independent review available, request
3additional time from the commissioner to have a qualified
4licensed health care professional certified, and provide
5notice to the insured, the insurer, and the commissioner.
6The commissioner shall notify the independent review entity
7 organization, the insured, and the insurer of how to proceed
8within three business days of receipt of such notice from the
9independent review entity organization.
10c. An insured may object to the independent review entity
11 organization selected by the insurer or to the licensed
12health care professional designated by the independent review
13entity organization to conduct the review by filing a notice
14of objection along with reasons for the objection, with the
15commissioner within ten days of receipt of a notice sent by the
16independent review entity organization pursuant to paragraph
17“b”. The commissioner shall consider the insured’s objection
18and shall notify the insured, the insurer, and the independent
19review entity organization of the commissioner’s decision to
20sustain or deny the objection within two business days of
21receipt of the objection.
22d. Within five business days of receiving a notice from
23the independent review entity organization accepting its
24selection or within five business days of receiving a denial
25of an objection to the independent review entity organization
26 selected, whichever is later, the insured may submit any
27information or documentation in support of the insured’s claim
28to both the independent review entity organization and the
29insurer.
30e. Within fifteen days of receiving a notice from the
31independent review entity organization accepting its selection
32or within three business days of receipt of a denial of
33an objection to the independent review entity organization
34 selected, whichever is later, an insurer shall do all of the
35following:
-18- 1(1) Provide the independent review entity organization
2 with any information submitted to the insurer by the insured
3in support of the insured’s internal appeal of the insurer’s
4benefit trigger determination.
5(2) Provide the independent review entity organization with
6any other relevant documents used by the insurer in making its
7benefit trigger determination.
8(3) Provide the insured and the commissioner with
9confirmation that the information required under subparagraphs
10(1) and (2) has been provided to the independent review entity
11 organization, including the date the information was provided.
12f. The independent review entity organization shall not
13commence its review until fifteen days after the selection of
14the independent review entity organization is final including
15the resolution of any objection made pursuant to paragraph
16“c”. During this time period, the insurer may consider any
17information provided by the insured pursuant to paragraph
18“d” and overturn or affirm the insurer’s benefit trigger
19determination based on such information. If the insurer
20overturns its benefit trigger determination, the independent
21review process shall immediately cease.
22g. In conducting a review, the independent review
23entity organization shall consider only the information
24and documentation provided to the independent review entity
25 organization pursuant to paragraphs “d” and “e”.
26h. The independent review entity organization shall submit
27its decision as soon as possible, but not later than thirty
28days from the date the independent review entity organization
29 receives the information required under paragraphs “d” and “e”,
30whichever is received later. The decision shall include a
31description of the basis for the decision and the date of the
32benefit trigger determination to which the decision relates.
33The independent review entity organization, for good cause,
34may request an extension of time from the commissioner to file
35its decision. A copy of the decision shall be mailed to the
-19-1insured, the insurer, and the commissioner.
2i. All medical records submitted for use by the independent
3review entity organization shall be maintained as confidential
4records as required by applicable state and federal laws. The
5commissioner shall keep all information obtained during the
6independent review process confidential pursuant to section
7505.8, subsection 8, except that the commissioner may share
8some information obtained as provided under section 505.8,
9subsection 8, and as required by this chapter and rules adopted
10pursuant to this chapter.
11j. If an insured dies before completion of the independent
12review, the review shall continue to completion if there
13is potential liability of an insurer to the estate of the
14insured or to a provider for rendering qualified long-term care
15services to the insured.
166. Costs. All reasonable fees and costs of the independent
17review entity incurred organization in conducting an
18independent review under this section shall be paid by the
19insurer.
207. Immunity. An independent review entity organization that
21conducts a review under this section is not liable for damages
22arising from determinations made during the review. Immunity
23does not apply to any act or omission made by an independent
24review entity organization in bad faith or that involves gross
25negligence.
268. Effect of independent review decision.
27a. The review decision by the independent review entity
28 organization conducting the review is binding on the insurer.
29b. The independent review process set forth in this section
30shall not be considered a contested case under chapter 17A.
31c. An insured may appeal the review decision by the
32independent review entity organization conducting the review
33by filing a petition for judicial review in the district court
34in the county in which the insured resides. The petition for
35judicial review shall be filed within fifteen business days
-20-1after the issuance of the review decision by the independent
2review organization. The petition shall name the insured
3as the petitioner and the insurer as the respondent. The
4petitioner shall not name the independent review entity
5 organization as a party. The commissioner shall not be named
6as a respondent unless the insured alleges action or inaction
7by the commissioner under the standards articulated under
8section 17A.19, subsection 10. Allegations made against the
9commissioner under section 17A.19, subsection 10, must be
10stated with particularity. The commissioner may, upon motion,
11intervene in a judicial review proceeding brought pursuant to
12this paragraph. The findings of fact by the independent review
13entity organization conducting the review are conclusive and
14binding on appeal.
15d. An insurer shall not be subject to any penalties,
16sanctions, or damages for complying in good faith with a review
17decision rendered by an independent review entity organization
18 pursuant to this section.
19e. Nothing contained in this section or in section 514G.109
20shall be construed to limit the right of an insurer to assert
21any rights an insurer may have under a long-term care insurance
22policy related to:
23(1) An insured’s misrepresentation.
24(2) Changes in the insured’s benefit eligibility.
25(3) Terms, conditions, and exclusions contained in the
26policy, other than failure to meet the benefit trigger.
27f. The requirements of this section and section 514G.109 are
28not applicable to a group long-term care insurance policy that
29is governed by the federal Employee Retirement Income Security
30Act of 1974, as codified at 29 U.S.C. §100 §1001 et seq.
31g. The provisions of this section and section 514G.109
32are in lieu of and supersede any other third-party review
33requirement contained in chapter 514J or in any other provision
34of law.
35h. The insured may bring an action in the district court
-21-1in the county in which the insured resides to enforce the
2review decision of the independent review entity organization
3 conducting the review or the decision of the court on appeal.
49. Receipt of notice. Notice required by this section shall
5be deemed received within five days after the date of mailing.
6 Sec. 25. Section 515.147, Code 2021, is amended to read as
7follows:
8515.147 Fees.
9Fees, established by the commissioner of insurance by rule,
10 shall be paid to the commissioner of insurance for deposit as
11provided in section 505.7 as follows for all of the following:
121. For filing an application to do business, including all
13documents submitted in connection with the application, by a
14foreign or domestic company, or for filing an application for
15renewed authority, fifty dollars.
162. For issuing to a foreign or domestic company a
17certificate of authority to do business or a renewed
18certificate of authority, fifty dollars.
193. For filing amended articles of incorporation, fifty
20dollars.
214. For issuing an amended certificate of authority,
22twenty-five dollars.
235. For affixing the official seal to any paper filed with
24the division, ten dollars.
25 Sec. 26. Section 515A.2, subsection 1, Code 2021, is amended
26by adding the following new paragraph:
27 NEW PARAGRAPH. 0a. “Commissioner” means the commissioner
28of insurance.
29 Sec. 27. Section 515A.6, subsection 1, paragraph c, Code
302021, is amended to read as follows:
31c. Licenses issued pursuant to this section shall remain
32in effect for three years unless sooner suspended or revoked
33by the commissioner. The fee for the license fee shall be one
34hundred dollars established by the commissioner by rule.
35 Sec. 28. Section 515A.6, subsection 7, Code 2021, is amended
-22-1to read as follows:
27. Notwithstanding any other provision of the Code law to
3the contrary, the commissioner of insurance shall provide for
4a hearing in a proceeding involving a workers’ compensation
5insurance rate filing by a licensed rating organization
6in accordance with the provisions of this subsection and
7rules promulgated by the commissioner of insurance pursuant
8to chapter 17A. Except as otherwise provided herein, the
9provisions of this subsection shall not be subject to the
10requirements of chapter 17A. The procedures for such hearing
11shall be as follows:
12a. The commissioner shall provide notice of the filing of
13the proposed rates at least thirty days before the effective
14date of the proposed rates by publishing a notice on the
15internet site of the insurance division of the department of
16commerce.
17b. A public hearing shall be held on the proposed rates by
18the commissioner of insurance if within fifteen days of the
19date of publication a workers’ compensation policyholder or an
20established organization with one or more workers’ compensation
21policyholders among its members files a written demand with the
22commissioner of insurance for a hearing on the proposed rates.
23c. The commissioner of insurance shall hold the hearing
24within twenty days after receipt of the written demand for a
25hearing and shall give not less than ten days written notice of
26the time and place of the hearing to the person or association
27filing the demand, to the rating organization, and to any other
28person requesting such notice.
29d. At any such hearing, the rating organization shall
30bear the burden of proof to support the proposed rates by a
31preponderance of the evidence. The person or association
32requesting the hearing, and any other person admitted as a
33party to the proceeding, shall be given the opportunity to
34respond and introduce evidence and arguments on all the issues
35involved.
-23- 1e. Within fifteen days after the start of the hearing, the
2commissioner of insurance will shall approve or disapprove
3the proposed rates and specify the reasons therefor. The
4commissioner of insurance may suspend or postpone the effective
5date of the proposed rates pending the hearing and written
6decision thereon.
7f. Judicial review of the decision of the commissioner of
8insurance on such rates may be sought in accordance with the
9provisions of chapter 17A.
10g. Absent a request for a hearing as provided in paragraph
11“b”, the commissioner shall issue an order approving or
12disapproving the proposed rates.
13h. The waiting period for a workers’ compensation insurance
14rate filing shall commence no earlier than the date that notice
15of the insurance rate filing is published.
16 Sec. 29. Section 515A.10, Code 2021, is amended to read as
17follows:
18515A.10 Advisory organizations.
191. Every group, association or other organization of
20insurers, whether located within or outside of this state,
21which assists insurers which make their own filings or rating
22organizations in rate making, by the collection and furnishing
23of loss or expense statistics, or by the submission of
24recommendations, but which does not make filings under this
25chapter, shall be known as an advisory organization.
262. An advisory organization shall not provide a service
27relating to this chapter, and an insurer shall not utilize
28the services of an advisory organization for such purposes
29unless the advisory organization has obtained a license under
30subsection 3.
312. 3. Every An advisory organization applying for a license
32 shall file include with its application to the commissioner all
33of the following:
34a. A copy of its constitution, its articles of agreement
35or association or its certificate of incorporation and of its
-24-1bylaws, rules and regulations governing its activities.
2b. A list of its members.
3c. The name and address of a resident of this state upon
4whom notices or orders of the commissioner or process issued at
5the commissioner’s direction may be served.
6d. An agreement that the commissioner may examine such
7advisory organization in accordance with the provisions of
8section 515A.12.
9e. A fee established by the commissioner by rule.
103. 4. If, after a hearing, the commissioner finds that
11the furnishing of such information or assistance involves an
12advisory organization has engaged in any act or practice which
13is unfair, or unreasonable, or otherwise inconsistent with the
14provisions in violation of this chapter, the commissioner may
15issue a written an order specifying in what respects such act
16or practice is unfair or unreasonable or otherwise inconsistent
17with the provisions of this chapter, and requiring the
18discontinuance of such act or practice advisory organization to
19cease and desist such act or practice. The commissioner may,
20at any time after hearing, revoke or suspend the license of an
21advisory organization which does not comply with this chapter.
224. 5. No insurer which makes its own filings nor any rating
23organization shall support its filings by statistics or adopt
24rate making recommendations, furnished to it by an advisory
25organization which has not complied with this section or with
26an order of the commissioner involving such statistics or
27recommendations issued under subsection 3 4 of this section.
28If the commissioner finds such insurer or rating organization
29to be in violation of this subsection the commissioner may
30issue an order requiring the discontinuance of such violation.
316. A license issued under this section shall remain in
32effect for three years unless sooner suspended or revoked by
33the commissioner.
34 Sec. 30. Section 515D.4, subsection 2, paragraph a, Code
352021, is amended to read as follows:
-25- 1a. The named insured or any operator who either resides
2in the same household or customarily operates an automobile
3insured under the policy has that person’s driver’s license
4suspended or revoked during the policy term or, if the policy
5is a renewal, during its term or the one hundred eighty days
6immediately preceding its effective date. any of the following:
7(1) The term of the policy.
8(2) The term of a renewal policy.
9(3) Within one hundred eighty calendar days immediately
10preceding the effective date of a renewal of the policy.
11 Sec. 31. Section 515D.4, subsection 3, Code 2021, is amended
12to read as follows:
133. This section shall not apply to any policy or coverage
14which has been in effect less than sixty calendar days at the
15time notice of cancellation is mailed or delivered by the
16insurer unless it is a renewal policy. This section shall not
17apply to the nonrenewal of a policy.
18 Sec. 32. Section 515D.5, Code 2021, is amended to read as
19follows:
20515D.5 Delivery of notice.
211. a. Notwithstanding the provisions of section 515.129A,
22a notice of cancellation of a policy shall not be effective
23unless mailed or delivered by the insurer to the named insured
24at least thirty calendar days prior to the effective date of
25cancellation, or, where the cancellation is for nonpayment of
26premium notwithstanding the provisions of section 515.129A,
27at least ten calendar days prior to the date of cancellation.
28A post office department certificate of mailing to the named
29insured at the address shown in the policy shall be proof
30of receipt of such mailing. Unless the reason accompanies
31the notice of cancellation, the notice shall state that upon
32written request of the named insured, mailed or delivered to
33the insurer not less than fifteen calendar days prior to the
34date of cancellation, the insurer will state the reason for
35cancellation together with notification of the right to a
-26-1hearing before the commissioner within fifteen calendar days as
2provided in this chapter.
3b. When the reason does not accompany the notice of
4cancellation, the insurer shall, upon receipt of a timely
5request by the named insured, state in writing the reason
6for cancellation. A statement of reason shall be mailed or
7delivered to the named insured within five calendar days after
8receipt of a request.
92. A notice of exclusion of a person under a policy pursuant
10to section 515D.4, is not effective unless written notice
11is mailed or delivered to the named insured at least twenty
12calendar days prior to the effective date of the exclusion.
13The written notice shall state the reason for the exclusion,
14together with notification of the right to a hearing before
15the commissioner pursuant to section 515D.10 within fifteen
16calendar days of receipt or delivery of a statement of reason
17as provided in this section.
18 Sec. 33. Section 515D.6, Code 2021, is amended to read as
19follows:
20515D.6 Prohibited reasons for nonrenewal.
211. No insurer shall refuse to renew a policy solely because
22of age, residence, sex, race, color, creed, or occupation of
23an insured.
242. No insurer shall require a physical examination of a
25policyholder as a condition for renewal solely on the basis of
26age or other arbitrary reason. In the event that an insurer
27requires a physical examination of a policyholder, the burden
28of proof in establishing reasonable and sufficient grounds for
29such requirement shall rest with the insurer and the expenses
30incident to such examination shall be borne by the insurer.
31 Sec. 34. Section 515D.7, Code 2021, is amended to read as
32follows:
33515D.7 Notice of intent.
341. Notwithstanding the provisions of sections 515.125,
35515.128, 515.129B, and 515.129C, an insurer shall not fail to
-27-1renew a policy except by notice to the insured as provided
2in this chapter. A notice of intention not to renew shall
3not be effective unless mailed or delivered by the insurer
4to the named insured at least thirty calendar days prior to
5the expiration date of the policy. A post office department
6certificate of mailing to the named insured at the address
7shown in the policy shall be proof of receipt of such mailing.
8Unless the reason accompanies the notice of intent not to
9renew, the notice shall state that, upon written request of
10the named insured, mailed or delivered to the insurer not less
11than thirty calendar days prior to the expiration date of the
12policy, the insurer will state the reason for nonrenewal.
132. When the reason does not accompany the notice of intent
14not to renew, the insurer shall, upon receipt of a timely
15request by the named insured, state in writing the reason
16for nonrenewal, together with notification of the right to a
17hearing before the commissioner within fifteen calendar days
18as provided herein. A statement of reason shall be mailed or
19delivered to the named insured within ten days after receipt
20of a request.
213. This section shall not apply:
22a. If the insurer has manifested its willingness to renew.
23b. If the insured fails to pay any premium due or any
24advance premium required by the insurer for renewal.
25c. If the insured is transferred from an insurer to
26an affiliate for future coverage as a result of a merger,
27acquisition, or company restructuring and if the transfer
28results in the same or broader coverage.
29 Sec. 35. Section 515D.10, Code 2021, is amended to read as
30follows:
31515D.10 Hearing before commissioner.
32Any named insured who has received a statement of reason
33for cancellation, or of reason for an insurer’s intent not
34to renew a policy, may, within fifteen calendar days of the
35receipt or delivery of a statement of reason, request a hearing
-28-1before the commissioner of insurance. The purpose of this
2hearing shall be limited to establishing the existence of the
3proof or evidence used stated by the insurer in as its reason
4for cancellation or intent not to renew. The burden of proof
5of the reason for cancellation or intent not to renew shall
6be upon the insurer. Other than the sharing of information
7required by this chapter and the rules adopted pursuant to
8the provisions of this chapter, the commissioner shall keep
9confidential the information obtained from the insured or in
10the hearing process, pursuant to section 505.8, subsection 8.
11The commissioner of insurance shall adopt rules for carrying
12out pursuant to chapter 17A to implement the provisions of this
13section.
14 Sec. 36. Section 515F.2, Code 2021, is amended by adding the
15following new unnumbered paragraph:
16 NEW UNNUMBERED PARAGRAPH. As used in this chapter, unless
17the context otherwise requires:
18 Sec. 37. Section 515F.2, Code 2021, is amended by adding the
19following new subsection:
20 NEW SUBSECTION. 2A. “Commissioner” means the commissioner
21of insurance.
22 Sec. 38. Section 515F.8, subsection 3, paragraph a, Code
232021, is amended by adding the following new subparagraph:
24 NEW SUBPARAGRAPH. (7) A license fee as established by the
25commissioner by rule.
26 Sec. 39. Section 515F.8, subsection 3, paragraph d, Code
272021, is amended to read as follows:
28d. Duration. A license issued under this section shall
29remain in effect for one year three years unless the license
30is suspended or revoked. The commissioner may, at any time
31after hearing, revoke or suspend the license of an advisory
32organization which does not comply with the requirements and
33standards of this chapter.
34 Sec. 40. Section 515F.32, Code 2021, is amended by adding
35the following new unnumbered paragraph:
-29-1 NEW UNNUMBERED PARAGRAPH. As used in this subchapter,
2unless the context otherwise requires:
3 Sec. 41. Section 515F.32, subsection 3, Code 2021, is
4amended to read as follows:
53. “Insurer” includes all companies or associations licensed
6to transact insurance business in this state under chapters
7515, 518, and 518A, reciprocal insurers issued a certificate
8of authority pursuant to chapter 520, and companies or
9associations admitted or seeking to be admitted to do business
10in this state under any of those chapters, notwithstanding any
11provision of the Code to the contrary.
12 Sec. 42. Section 515F.36, subsection 2, paragraph a,
13subparagraphs (1) and (2), Code 2021, are amended to read as
14follows:
15(1) American property casualty insurance association.
16(2) Property casualty insurers association of America
17 National association of mutual insurance companies.
18 Sec. 43. NEW SECTION. 515F.39 Cancellation or nonrenewal
19— FAIR notice.
20If basic property insurance coverage is canceled or not
21renewed other than for nonpayment of a premium pursuant to
22section 515.125, 515.126, 515.127, 515.128, 518.23, or 518A.29,
23the insurer shall notify the named insured that the named
24insured may be eligible for basic property insurance through
25the FAIR plan. The notice shall accompany the notice of
26cancellation or the intent not to renew.
27 Sec. 44. Section 515I.4, subsection 1, paragraph a, Code
282021, is amended to read as follows:
29a. Capital and surplus or its equivalent under the laws of
30the insurer’s domiciliary jurisdiction which equals the greater
31of either greatest of the following:
32(1) The minimum capital and surplus requirements under the
33laws of this state.
34(2) Fifteen million dollars.
35(3) The risk-based capital level requirements pursuant to
-30-1chapter 521E.
2 Sec. 45. Section 520.12, subsection 2, Code 2021, is amended
3to read as follows:
42. A reciprocal or interinsurance insurer shall submit
5annually, on or before March 1, a completed application for
6renewal of the insurer’s certificate of authority. An insurer
7that fails to timely file an application for renewal shall pay
8an administrative fee of five hundred dollars to the treasurer
9of state for deposit as provided in section 505.7 to the
10commissioner of insurance as established by the commissioner of
11insurance by rule.
12 Sec. 46. Section 521.18, Code 2021, is amended to read as
13follows:
14521.18 Articles of merger or consolidation — filing fees
15and approval.
16A company filing a plan to merge or consolidate under the
17provisions of this chapter shall file its articles of merger
18or consolidation with the commission for its approval. The
19fee for filing articles of merger or consolidation with
20the commission is fifty dollars shall be established by the
21commissioner by rule.
22 Sec. 47. Section 522.9, subsection 1, Code 2021, is amended
23to read as follows:
241. If an insurer fails, without just cause, to file an
25own risk and solvency assessment summary report by the filing
26date stipulated to the commissioner pursuant to section 522.5,
27subsection 1, paragraph “c”, the commissioner shall, after
28notice and hearing, impose a penalty of five hundred dollars
29for each calendar day after the stipulated date that the
30summary report is not filed. The penalties shall be collected
31by the commissioner and deposited in the general fund of the
32state pursuant to section 505.7. The maximum penalty which may
33be imposed under this section is fifty thousand dollars.
34 Sec. 48. Section 522A.5, Code 2021, is amended to read as
35follows:
-31- 1522A.5 Fees Counter employee — license fee.
2The fee for a counter employee license shall be fifty dollars
3per counter employee established by the commissioner by rule.
4In no case shall any combined fees exceed one thousand dollars
5in any calendar year for any one rental company or limited
6license or licensee or renewal license. The fees collected
7under this section shall be deposited as provided in section
8505.7.
9 Sec. 49. Section 522B.5, subsection 1, paragraph c, Code
102021, is amended to read as follows:
11c. The individual has paid the license fee of fifty dollars
12 established by the commissioner by rule.
13 Sec. 50. Section 522E.4, subsection 1, paragraph c, Code
142021, is amended to read as follows:
15c. An application fee of the lesser of fifty dollars per
16each endorsee at a location of the vendor or five hundred
17dollars per location valid for a three-year period and, for
18each three-year period thereafter, a renewal fee in the same
19amount. A maximum fee of five thousand dollars shall apply
20for licensure of a portable electronics vendor with multiple
21locations established by the commissioner by rule. The fees
22collected shall be deposited as provided in section 505.7.
23DIVISION III
24CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SALES
25 Sec. 51. Section 523A.204, subsections 1 and 2, Code 2021,
26are amended to read as follows:
271. A preneed seller shall file an annual report with the
28commissioner not later than April 1 of each year an annual
29report 15 on a form prescribed by the commissioner.
302. A preneed seller filing an annual report shall pay a
31filing fee of ten dollars established by the commissioner by
32rule per purchase agreement sold during the year covered by
33the report. Duplicate filing fees are not required for the
34same purchase agreement. If a purchase agreement has multiple
35sellers, the filing fee shall be paid by the preneed seller
-32-1actually providing the merchandise and services.
2 Sec. 52. Section 523A.204, Code 2021, is amended by adding
3the following new subsection:
4 NEW SUBSECTION. 4. The commissioner may impose a late
5fee, established by the commissioner by rule, for each day
6after April 15 that a preneed seller fails to file the preneed
7seller’s annual report. The maximum late fee that may be
8imposed under this subsection is five hundred dollars. The fee
9shall be collected by the commissioner and deposited pursuant
10to section 505.7.
11 Sec. 53. Section 523A.501, subsections 7 and 8, Code 2021,
12are amended to read as follows:
137. A preneed seller’s license expires shall expire annually
14on April 15 30. If the a preneed seller has filed a complete
15 an annual report pursuant to section 523A.204, subsection 1,
16 and paid the required fees as required in section 523A.204, the
17commissioner shall renew the preneed seller’s license until
18April 15 30 of the following year.
198. The commissioner may by rule create or accept a
20multijurisdiction preneed seller’s license. If the preneed
21seller’s license is issued by another jurisdiction, the rules
22shall require the filing of an application or notice form and
23payment of the applicable filing fee of fifty dollars for an
24application established by the commissioner by rule. The
25application or notice form utilized and the effective dates and
26terms of the license may vary from the provisions set forth in
27this section.
28 Sec. 54. Section 523A.502, subsection 5, Code 2021, is
29amended to read as follows:
305. A sales license shall expire annually on April 15 30. If
31the a sales agent has filed a substantially complete an annual
32report as required in pursuant to section 523A.502A, subsection
331, and has fulfilled the continuing education requirements
34pursuant to subsection 6, the commissioner shall renew the
35sales agent’s sales license until April 15 30 of the following
-33-1year.
2 Sec. 55. Section 523A.502A, subsection 1, Code 2021, is
3amended to read as follows:
41. A No later than April 15, a sales agent shall file an
5annual report with the commissioner not later than April 1
6of each year an annual report on a form prescribed by the
7commissioner describing each purchase agreement sold by the
8sales agent during the year. An annual report must be filed
9whether or not sales were made a sales agent sold any purchase
10agreements during the year and even if the whether or not a
11 sales agent is no longer still an agent of a preneed seller or
12is still licensed by the commissioner.
13 Sec. 56. Section 523A.502A, Code 2021, is amended by adding
14the following new subsection:
15 NEW SUBSECTION. 3. The commissioner may impose a late fee,
16established by the commissioner by rule, for each day after
17April 15 that a sales agent fails to file the sales agent’s
18annual report. The maximum late fee that may be imposed
19pursuant to this section is five hundred dollars. The fee
20shall be collected by the commissioner and deposited pursuant
21to section 505.7.
22 Sec. 57. Section 523A.601, subsection 4, Code 2021, is
23amended by striking the subsection and inserting in lieu
24thereof the following:
254. All purchase agreements, including a purchase agreement
26delivered or executed by electronic means, must have a sales
27agent identified. A purchase agreement, including a purchase
28agreement delivered or executed by electronic means, shall
29be reviewed by the sales agent identified and named in the
30purchase agreement pursuant to subsection 1, paragraph “a”, and
31signed by the purchaser and seller. If the purchase agreement
32is for mortuary science services as “mortuary science” is
33defined in section 156.1, the purchase agreement must also be
34signed by a person licensed to deliver funeral services.
35 Sec. 58. Section 523A.807, subsection 3, unnumbered
-34-1paragraph 1, Code 2021, is amended to read as follows:
2If the commissioner finds that a person has violated section
3523A.201, 523A.202, 523A.203, 523A.204, 523A.207, 523A.401,
4523A.402, 523A.403, 523A.404, 523A.405, 523A.501, or 523A.502,
5or 523A.502A, or any rule adopted pursuant thereto, the
6commissioner may order any or all of the following:
7 Sec. 59. Section 523A.812, Code 2021, is amended to read as
8follows:
9523A.812 Insurance division regulatory fund.
10The insurance division may authorize the creation of a
11special revenue fund in the state treasury, to be known as the
12insurance division regulatory fund. The commissioner shall
13allocate annually from the filing fees paid pursuant to section
14523A.204, two dollars an amount established by the commissioner
15by rule for each purchase agreement reported on a preneed
16seller’s annual report filed pursuant to section 523A.204 for
17deposit to the regulatory fund. The remainder of the fees
18collected pursuant to section 523A.204 shall be deposited
19as provided in section 505.7. The commissioner shall also
20allocate annually the examination fees paid pursuant to section
21523A.814 and any examination expense reimbursement for deposit
22to the regulatory fund. The moneys in the regulatory fund
23shall be retained in the fund. The moneys are appropriated
24and, subject to authorization by the commissioner, may be used
25to pay examiners, examination expenses, investigative expenses,
26the expenses of mediation ordered by the commissioner, consumer
27education expenses, the expenses of a toll-free telephone
28line to receive consumer complaints, and the expenses of
29receiverships established under section 523A.811. If the
30commissioner determines that funding is not otherwise available
31to reimburse the expenses of a person who receives title
32to a cemetery subject to chapter 523I, pursuant to such
33a receivership, the commissioner shall use moneys in the
34regulatory fund as necessary to preserve, protect, restore,
35and maintain the physical integrity of that cemetery and to
-35-1satisfy claims or demands for cemetery merchandise, funeral
2merchandise, and funeral services based on purchase agreements
3which the commissioner determines are just and outstanding.
4An annual allocation to the regulatory fund shall not be
5imposed if the current balance of the fund exceeds five hundred
6thousand dollars.
7 Sec. 60. Section 523A.814, Code 2021, is amended to read as
8follows:
9523A.814 Examination fee.
10In addition to the filing fee paid pursuant to section
11523A.204, subsection 2, a seller filing an annual report
12shall pay an examination fee in the amount of five dollars
13 established by the commissioner by rule for each purchase
14agreement subject to a filing fee that is sold between July 1,
152005, and December 31, 2007, and in the amount of ten dollars
16for each purchase agreement subject to a filing fee that is
17sold after December 31, 2007.
18DIVISION IV
19RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS
20 Sec. 61. Section 523C.3, subsection 2, Code 2021, is amended
21to read as follows:
222. The application shall be accompanied by all of the
23following:
24a. A license fee in the amount of five hundred dollars
25 established by the commissioner by rule.
26b. If applicable, a fee in the amount of fifty dollars
27 established by the commissioner by rule for each motor vehicle
28service contract form submitted in an application as provided
29in subsection 1, paragraph “f”.
30 Sec. 62. Section 523C.4, subsection 3, paragraphs a, b, and
31c, Code 2021, are amended to read as follows:
32a. A license renewal fee in the amount of five hundred
33dollars established by the commissioner by rule.
34b. If applicable, a fee in the amount of three percent
35 percentage established by the commissioner by rule of the
-36-1aggregate amount of payments the licensee received for the sale
2or issuance of residential service contracts in this state
3during the preceding fiscal year, provided that such fee shall
4be no less than one hundred dollars and no greater than fifty
5thousand dollars.
6c. If applicable, a fee in the amount of fifty dollars
7 established by the commissioner by rule for each motor
8vehicle service contract form submitted in a with the renewal
9application pursuant to subsection 2, and as provided in
10section 523C.3, subsection 1, paragraph “f”.
11 Sec. 63. Section 523C.24, subsection 2, Code 2021, is
12amended to read as follows:
132. The commissioner shall deposit in the service company
14oversight fund an amount equal to one-third of all licensing,
15examination, renewal, and inspection fees collected under this
16chapter, provided that the maximum amount of fees deposited
17in the fund each fiscal year shall not exceed five hundred
18thousand dollars an amount established by the commissioner by
19rule. Any remaining fees collected under this chapter and
20not deposited in the service company oversight fund shall be
21deposited as provided in section 505.7.
22DIVISION V
23RETIREMENT FACILITIES
24 Sec. 64. Section 523D.2A, unnumbered paragraph 1, Code
252021, is amended to read as follows:
26On or before March 1 of each year, a provider shall
27file a certification with the commissioner in a manner and
28according to in compliance with requirements established by the
29commissioner by rule. The certification shall be accompanied
30by a one hundred dollar administrative fee which fee in an
31amount established by the commissioner by rule and shall be
32deposited as provided in section 505.7. The certification
33shall attest that according to the best knowledge and belief of
34the attesting party, the facility administered by the provider
35is in compliance with the provisions of this chapter, including
-37-1rules adopted by the commissioner or and orders issued by the
2commissioner as authorized under this chapter. The attesting
3person may be any of the following:
4DIVISION VI
5IOWA CEMETERY ACT
6 Sec. 65. Section 523I.102, subsection 6, Code 2021, is
7amended by adding the following new paragraph:
8 NEW PARAGRAPH. d. A cemetery under the jurisdiction and
9control of a cemetery commission pursuant to section 331.325,
10subsection 3, paragraph “c”.
11 Sec. 66. Section 523I.213, Code 2021, is amended to read as
12follows:
13523I.213 Insurance division’s enforcement fund.
14A special revenue fund in the state treasury, to be known as
15the insurance division’s enforcement fund, is created under the
16authority of the commissioner. The commissioner shall allocate
17annually from the examination fees paid pursuant to section
18523I.808, an amount not exceeding fifty thousand dollars, for
19 deposit to all examination fees collected pursuant to section
20523I.808 in the insurance division’s enforcement fund. The
21moneys in the enforcement fund shall be retained in the fund.
22The moneys are appropriated and, subject to authorization by
23the commissioner, shall be used to pay examiners, examination
24expenses, investigative expenses, the expenses of consumer
25education, compliance, and education programs for filers and
26other regulated persons, and educational or compliance program
27materials, the expenses of a toll-free telephone line for
28consumer complaints, and the expenses of receiverships of
29perpetual care cemeteries established under section 523I.212.
30 Sec. 67. Section 523I.301, subsections 1 and 2, Code 2021,
31are amended to read as follows:
321. A cemetery shall disclose, prior to the sale of interment
33rights, whether opening and closing of the interment space is
34 services are included in the purchase of the interment rights.
35If opening and closing services are not included in the sale of
-38-1interment rights and the cemetery offers opening and closing
2services, the cemetery must disclose that the price for this
3service opening and closing services is subject to change
4and must disclose the current prices for opening and closing
5services provided by the cemetery.
62. The cemetery shall fully disclose all fees required for
7interment, entombment, or inurnment, or disinterment of human
8remains.
9 Sec. 68. Section 523I.309, subsection 6, Code 2021, is
10amended to read as follows:
116. A cemetery may shall disinter and relocate remains
12interred in the cemetery for the purpose of correcting an error
13made by the cemetery after obtaining a disinterment permit
14as required by section 144.34, unless the interested parties
15have a written agreement directing otherwise. The cemetery
16shall bear the costs of the disinterment and relocation. The
17cemetery shall provide written notice describing the error
18to the commissioner and to the person who has the right to
19control the interment, relocation, or disinterment of the
20remains erroneously interred, by restricted certified mail at
21the person’s last known address and sixty days prior to the
22disinterment. The notice shall include the location where the
23disinterment will occur and the location of the new interment
24space. A cemetery is not civilly or criminally liable for an
25erroneously made interment that is corrected in compliance
26with this subsection unless the error was the result of gross
27negligence or intentional misconduct.
28 Sec. 69. Section 523I.808, Code 2021, is amended to read as
29follows:
30523I.808 Examination Annual report — examination fee.
31An examination fee, established by the commissioner by rule,
32for each certificate of internment rights issued during the
33time period covered by the report shall be submitted with the a
34perpetual care cemetery’s annual report in an amount equal to
35five dollars for each certificate of interment rights issued
-39-1during the time period covered by the report filed pursuant to
2section 523I.813. The cemetery may charge the examination fee
3directly to the purchaser of the interment rights.
4 Sec. 70. Section 523I.813, subsection 3, Code 2021, is
5amended by striking the subsection and inserting in lieu
6thereof the following:
73. The commissioner may assess a late fee, established
8by the commissioner by rule, for each day after the date on
9which a perpetual care cemetery’s annual report is due that the
10perpetual care cemetery fails to file the report. The late fee
11shall be collected by the commissioner and deposited pursuant
12to section 505.7.
13DIVISION VII
14STATE INNOVATION WAIVER
15 Sec. 71. NEW SECTION. 505.18A State innovation waivers.
161. The commissioner of insurance may develop by rule
17a state innovation waiver pursuant to section 1332 of the
18federal Patient Protection and Affordable Care Act, Pub.L. No.
19111-148.
202. The commissioner of insurance may submit an application
21on behalf of the state to the United States secretary of health
22and human services and the United States secretary of the
23treasury for the state innovation waiver developed pursuant to
24subsection 1.
253. If a state innovation waiver submitted pursuant to
26subsection 2 is approved by the United States secretary of
27health and human services and the United States secretary of
28the treasury, the commissioner of insurance may implement the
29state innovation waiver in a manner consistent with applicable
30state and federal law.
314. The commissioner of insurance may adopt emergency
32rules under section 17A.4, subsection 3, and section 17A.5,
33subsection 2, paragraph “b”, to implement the provisions of
34this section and the rules shall be effective immediately upon
35filing unless a later date is specified in the rules. Any
-40-1rules adopted in accordance with this section shall also be
2published as a notice of intended action as provided in section
317A.4.
4EXPLANATION
5The inclusion of this explanation does not constitute agreement with
6the explanation’s substance by the members of the general assembly.
7This bill relates to various matters under the purview of the
8insurance division of the department of commerce. The bill is
9organized into seven divisions.
10DIVISION I — UNIFORM SECURITIES. Code section 502.304A
11(expedited registration by filing for small issuers) is amended
12to provide that an issuer, and a person registering as an
13agent of the issuer, must pay the administrator a registration
14fee established by the administrator, rather than the set
15fee amounts of $100 (issuer) and $10 (person registering as
16an agent) required by current law. Code section 502.321G
17(fees) is amended to change the nonrefundable fee for a
18registration statement filed by an offeror from $250 to an
19amount established by the administrator.
20Code section 502.410 (filing fees) is amended to change
21the broker-dealer filing fee for an application or renewal
22registration from $200 to an amount established by the
23administrator. In addition, the filing fee for registration
24or renewal as an agent is amended from $40 to an amount
25established by the administrator. Of the agent registration
26fees collected, 25 percent are appropriated to the securities
27investor education and financial literacy training fund.
28Current law provides that $10 of every $40 fee collected
29goes to the fund. The filing fee for an investment adviser
30application or renewal registration is amended from $100 to
31an amount established by the administrator. The bill also
32amends the filing fees for an investment adviser representative
33application, renewal registration, and change of registration
34from $30 to an amount established by the administrator. A
35federal covered investment adviser must pay an initial fee
-41-1and an annual notice fee in an amount established by the
2administrator, rather than the $100 fee required under current
3law.
4DIVISION II — INSURANCE. The bill amends Code section
5505.30 (service of process on the commissioner) to specify
6that the commissioner of insurance (commissioner) may set a
7reasonable fee for service made on the commissioner.
8The bill amends Code section 507A.4 (transactions where law
9not applicable) and provides that Code chapter 507A does not
10apply to a multiple employer welfare arrangement (MEWA) or a
11MEWA formed as an association health plan (AHP) that meets the
12requirements of Code chapter 513D. The bill strikes current
13Code section 513D.1 (association health plans) and replaces it
14with new provisions which detail the requirements for MEWAs and
15AHPs that offer a plan to, or that maintain a group health plan
16for, any resident of Iowa. “AHP” and “MEWA” are defined in the
17bill.
18The bill details the requirements of the annual filings with
19the commissioner required of registered AHPs and MEWAs. The
20bill provides that a MEWA that is recognized as tax-exempt
21under Internal Revenue Code section 501(c)(9), and that is
22registered with the commissioner prior to January 1, 2018,
23shall not be considered an AHP unless the MEWA affirmatively
24elects to be treated as an AHP. The bill makes conforming
25changes to Code section 513D.2 (rules and enforcement).
26Code section 507B.7 (cease and desist orders) is amended
27to provide that a person who violates any order of the
28commissioner, rather than just a cease and desist order as is
29in current law, may, after notice and hearing be subject to a
30monetary penalty and suspension or revocation of the person’s
31license.
32Code section 507E.2 (purpose) is amended by the bill to
33require that an insurance fraud bureau investigator be no more
34than 65 years of age. Current law does not place an upper
35limit on the age for insurance fraud bureau investigators.
-42-1The bill broadens the definition of “insurer” in Code
2section 507E.2A (definitions) to include any corporation,
3association, partnership, or individual engaged in the business
4of insurance, including but not limited to a corporation,
5association, partnership, or individual that issues a policy
6of workers’ compensation, a self-insured business for purposes
7of workers’ compensation liability, or a group or self-insured
8plan. The bill specifically excludes a person required to be
9licensed to sell, solicit, or negotiate insurance pursuant to
10Code chapter 522B from the definition.
11Code section 507E.8 (law enforcement authority) is amended
12by the bill to specify that an individual who is employed by
13the insurance division and is designated as a peace officer
14shall be considered a law enforcement officer and shall
15exercise the powers of a law enforcement officer as detailed
16in the bill.
17The bill amends Code section 508E.3 (license requirements)to
18change the application and renewal fees for a viatical
19settlement provider and a viatical settlement broker from $100
20to an amount established by the administrator.
21Code section 509A.15 (certification of self-insurance plans
22— exemption) is amended to change the filing fee for the end
23of fiscal year filing of a governing body of a self-insurance
24plan of a political subdivision or a school corporation from
25$100 to an amount established by the commissioner. The current
26$15 per day penalty for late filings is changed to a late fee
27established by the commissioner.
28The bill makes conforming changes to Code section 510.21
29(certificate of registration) and also requires that an
30application for registration as a third-party administrator be
31accompanied by a filing fee as established by the commissioner.
32Current law does not require submission of a filing fee.
33The bill strikes and replaces Code section 510.23 (unfair
34competition or unfair and deceptive acts or practices
35prohibited) and makes third-party administrators that violate
-43-1Code chapter 507B or 510 subject to the sanctions and penalties
2set out in Code section 507B.7. Third-party administrators are
3subject to Code chapter 507B under current law.
4Code section 511.24 (fees from domestic and foreign
5companies) is amended to change specific dollar amounts for
6certain filing fees for foreign or domestic life insurance
7companies to fee amounts determined by the commissioner.
8The bill makes conforming changes to Code section 512B.24
9(reports) and requires that the annual filing by fraternal
10benefit societies be accompanied by a fee established by the
11commissioner, rather than $50 as required by current law.
12The bill makes conforming changes to Code section 512B.25
13(annual license — renewal) and requires that for each license
14or renewal application a fraternal benefit society submit a fee
15established by the commissioner, rather than $50 as required by
16current law. The bill also changes the current administrative
17penalty of $500 for a late renewal filing to a late fee as
18established by the commissioner.
19The bill makes conforming changes to Code chapter 514G
20(long-term care insurance) and amends the Code chapter
21to change the terminology throughout the Code chapter
22from “independent review entity” to “independent review
23organization”.
24Code chapter 515.147 (fees) is amended to change filing
25fees for certain filings from specific dollar amounts to fees
26determined by the commissioner. The bill makes conforming
27changes to and amends Code section 515A.10 to provide more
28specific requirements related to licensing requirements, fees,
29and penalties for advisory organizations.
30The bill amends Code section 515F.8 (licensing advisory
31organizations) to require licensing advisory organizations
32to submit a fee, determined by the commissioner, with their
33application for a license, and makes the license effective for
34three years, rather than the one year under current law.
35Code section 515F.32 is amended to add reciprocal insurers
-44-1to the definition of “insurer”. Code section 515F.36 is
2amended to change the makeup of the membership of the governing
3committee that administers the FAIR plan. The bill creates a
4new requirement that if basic property insurance coverage is
5canceled or not renewed other than for nonpayment of a premium
6pursuant to Code section 515.125, 515.126, 515.127, 515.128,
7518.23, or 518A.29, the insurer must notify the named insured
8that they may be eligible for basic property insurance through
9the FAIR plan, and the notice must accompany the notice of
10cancellation or the intent not to renew.
11The bill amends Code section 515I.4 (requirements for
12eligible surplus lines insurers) to allow a nonadmitted
13insurer seeking to qualify as an eligible surplus line insurer
14the option of demonstrating that the nonadmitted insurer
15has capital and surplus under the laws of the nonadmitted
16insurer’s domiciliary that equal the risk-based capital level
17requirements required by Iowa law. Current law requires the
18nonadmitted insurer to demonstrate that the nonadmitted insurer
19has capital and surplus under the laws of the nonadmitted
20insurer’s domiciliary that equal the greater of the minimum
21capital and surplus required under the laws of this state, or
22$15 million.
23Code section 520.12 (certificate of authority — renewal —
24penalties) is amended to change the annual renewal fee for a
25reciprocal or interinsurance insurer from $500 to be submitted
26to the treasurer of state, to an administrative fee as
27established by the commissioner to be paid to the commissioner.
28The bill amends Code section 521.18 (articles of merger
29or consolidation) to change the fee for specific companies
30to file a plan to merge or consolidate from $50 to an amount
31established by the commissioner.
32Code section 522.9 (penalties) is amended to allow the
33commissioner to deposit penalties that have been collected due
34to insurers’ failure to file a timely own risk and solvency
35assessment summary report pursuant to Code section 505.7.
-45-1Current law requires the commissioner to deposit the penalties
2into the general fund of the state.
3Code section 522A.5 (counter employee — license fee) is
4amended to change the license fee for a counter employee from
5$50 to an amount established by the commissioner, and removes
6the cap of $1,000 per calendar year for all combined fees paid
7by any one rental company.
8The bill amends Code section 522B.5 (application for
9license) to change the application fee for a resident insurance
10producer license from $50 to an amount established by the
11commissioner.
12Code section 522E.4 (application and fees) is amended to
13change the application fee for a portable electronics insurance
14license from a variable dollar amount to an amount established
15by the commissioner. The bill also removes the $5,000 cap
16on the total application fees that can be charged for the
17licensure of a portable electronics vendor with multiple
18locations.
19The bill makes conforming changes to Code sections 508E.2
20(definitions), 509.1(9) (form of policy), 509.19(2) (claims
21and premium disclosures), 515A.2 (definitions), 515A.6
22(rating organizations), 515A.10 (advisory organizations),
23515D.4 (notice of cancellation — reasons), 515D.5 (delivery
24of notice), 515D.6 (prohibited reasons), 515D.7 (notice of
25intent), 515D.10 (hearing before commissioner), and 515F.2
26(definitions).
27DIVISION III — CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL
28SALES. The bill amends Code section 523A.204 (preneed seller
29annual reporting requirements) to require preneed sellers to
30file an annual report by April 15 rather than the current date
31of April 1. The bill changes the filing fee for the report
32from $10 to an amount established by the commissioner. The
33bill allows the commissioner to impose a late fee for each
34day the report is late, up to a maximum of $500. The fee is
35to be collected by the commissioner and deposited pursuant to
-46-1Code section 505.7. Code section 523A.501 (preneed sellers —
2licenses) is amended to specify that preneed sellers’ licenses
3expire annually on April 30, rather than the current expiration
4date of April 15. The bill changes the filing fee for a
5multijurisdictional preneed seller’s license that is issued by
6another jurisdiction from $50 to an amount established by the
7commissioner.
8The bill amends Code section 523A.502 (sales agents —
9licenses) to specify that sales agents’ licenses expire
10annually on April 30, rather than the current expiration date
11of April 15, and an agent must have fulfilled continuing
12education requirements to qualify for renewal. Code section
13523A.502A (sales agent annual reporting requirements) is
14amended to require sales agents to file an annual report by
15April 15, rather than the current date of April 1. The bill
16allows the commissioner to impose a late fee for each day that
17the annual report is late, up to a maximum of $500. The fee is
18to be collected by the commissioner and deposited pursuant to
19Code section 505.7.
20The bill strikes and replaces Code section 523A.601
21(disclosures) and requires that all purchase agreements,
22including those delivered or executed by electronic means,
23identify a sales agent. Purchase agreements must also be
24reviewed by the sales agent and signed by the purchaser and
25seller. If a purchase agreement is for mortuary science
26services, the purchase agreement must also be signed by a
27person licensed to deliver funeral services.
28The bill amends Code section 523A.812 (insurance division
29regulatory fund) to allocate an amount established by the
30commissioner to the regulatory fund from the filing fees for
31each purchase agreement reported on a preneed seller’s annual
32report. Current law requires the commissioner to allocate
33$2 from each filing fee to the regulatory fund. The bill
34also removes the prohibition on an annual allocation to the
35regulatory fund if the current balance exceeds $500,000.
-47- 1Code section 523A.814 (examination fee) is amended to change
2the examination fee for a seller’s annual report from $5,
3or other set dollar amount, to an amount established by the
4commissioner.
5The bill makes conforming changes to Code section 523A.807
6(prosecutions for violations of law).
7DIVISION IV — RESIDENTIAL AND MOTOR VEHICLE SERVICE
8CONTRACTS. Code section 523C.3 (application for license)
9is amended to change the $500 fee for an application for
10a service company license to a fee established by the
11commissioner. The current fee of $50 for each motor vehicle
12service contract form submitted with an application is also
13changed to a fee as established by the commissioner. Code
14section 523C.4 (license expiration and renewal) is amended to
15change the license renewal fee of $500 to a fee established
16by the commissioner. The bill amends the fee, based on the
17aggregate amount of payments a licensee received for the sale
18or issuance of residential service contracts in this state
19during the preceding fiscal year, from 3 percent per contract
20to a percentage established by the commissioner by rule, and
21also removes the minimum and maximum dollar amount of fees
22that a licensee is required to submit. In addition, the bill
23amends the fee for each motor vehicle service contract form
24submitted with an application from $50 to a fee established by
25the commissioner.
26Code section 523C.24 (service company oversight fund) is
27amended to allow the commissioner to establish the amount
28deposited in the service company oversight fund from all
29licensing, examination, renewal, and inspection fees collected
30under Code chapter 523C. The bill also removes the current
31$500,000 maximum cap on fees that may be deposited in the fund
32each fiscal year.
33DIVISION V — RETIREMENT FACILITIES. Code section 523D.2A
34is amended to change the administrative fee submitted by a
35provider with its certification filing from $100 to an amount
-48-1established by the commissioner.
2DIVISION VI — IOWA CEMETERY ACT. Code section 523I.102
3(definitions) is amended to exclude specific cemeteries, under
4the jurisdiction and control of a cemetery commission that
5has jurisdiction and control over pioneer cemeteries, from
6the definition of “cemetery” for purposes of Code chapter
7523I. Code section 523I.213 (insurance division’s enforcement
8fund) is amended to remove the cap on the allocation to the
9insurance division’s enforcement fund of examination fees paid
10by perpetual cemeteries with their annual report. The bill
11requires the commissioner to deposit all of the examination
12fees in the enforcement fund.
13Code section 523I.301 (disclosure requirements — prices
14and fees) is amended to require cemeteries to disclose, prior
15to the sale of interment rights, whether opening and closing
16services are included in the purchase price. The bill also
17requires cemeteries to disclose all fees associated with
18disinterment services.
19Code section 523I.309 (interment, relocation, or
20disinterment of remains) is amended to require cemeteries
21to disinter and relocate remains interred in a cemetery for
22the purpose of correcting an error made by the cemetery,
23unless the interested parties have a written agreement
24directing otherwise. The cemetery must bear all costs of
25the disinterment and relocation. Current law permits, but
26does not require, a cemetery to disinter and relocate such
27remains, and the cemetery is not required to bear the cost of
28disinterment and relocation. The bill also allows cemeteries
29to be held civilly and criminally liable for erroneously made
30interments. Current law exempts cemeteries from civil and
31criminal liability for erroneously made interments.
32The bill amends Code section 523I.808 (examination fee) to
33require an examination fee, established by the commissioner,
34for each certificate of interment rights issued during the
35period covered by a perpetual care cemetery’s annual report.
-49-1Under current law, the fee is $5 per certificate.
2The bill amends Code section 523I.813 (annual report by
3perpetual care cemeteries) to allow, rather than to require,
4the commissioner to impose a late penalty on a perpetual care
5cemetery that fails to timely file its annual report.
6DIVISION VII — STATE INNOVATION WAIVER. The bill
7authorizes the commissioner to develop by rule a state
8innovation waiver (waiver) pursuant to section 1332 of the
9federal Patient Protection and Affordable Care Act, Pub.L. No.
10111-148, and to submit an application on behalf of the state
11to the United States secretary of health and human services
12and the United States secretary of the treasury (secretaries)
13for the waiver. If a waiver is approved by the secretaries,
14the commissioner is authorized to implement the waiver in a
15manner consistent with applicable state and federal law. The
16bill authorizes the commissioner to adopt emergency rules
17to implement the waiver and the rules are to be effective
18immediately upon filing unless a later date is specified in the
19rules. Any rules that are adopted must also be published as a
20notice of intended action.
-50-ko/rn