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House File 502 - 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.2A, subsection 2, Code 2021, is amended
2to read as follows:
32. “Insurer” includes an insurer means any corporation,
4association, partnership, or individual engaged in the business
5of insurance, including but not limited to a corporation,
6association, partnership, or individual that issues a policy
7of workers’ compensation, a self-insured business for purposes
8of workers’ compensation liability, or a group or self-insured
9plan as described in section 87.4. “Insurer” does not include
10a person required to be licensed to sell, solicit, or negotiate
11insurance pursuant to chapter 522B.
12 Sec. 9. Section 507E.8, Code 2021, is amended to read as
13follows:
14507E.8 Law enforcement authority.
151. An individual employed by the division and designated as
16a peace officer shall be considered a law enforcement officer
17as that term is defined in section 80B.3, and shall exercise
18the powers of a law enforcement officer as follows:
19a. For purposes of an arrest resulting from a criminal
20violation of any provision of the Code subject to the
21jurisdiction of the commissioner established as a result of
22an investigation pursuant to this chapter, an insurance fraud
23bureau investigator shall have the authority and status of a
24law enforcement officer pursuant to section 80B.3, subsection
253.
26b. While conducting an investigation or engaged in an
27assignment authorized by this chapter or ordered by the
28commissioner.
29c. To protect life if a public offense is committed in the
30presence of the peace officer.
31d. While providing assistance to a law enforcement agency or
32another law enforcement officer.
33e. While providing assistance at the request of a member of
34the public.
352. The laws Laws applicable to an arrest of an individual
-6-1 by a law enforcement officer of the state shall apply to an
2insurance fraud bureau investigator individual employed by
3the division and designated as a peace officer. An insurance
4fraud bureau investigator individual employed by the division
5and designated as a peace officer shall have the power to
6execute arrest warrants and search warrants, serve subpoenas
7issued for the examination, investigation, and trial of all
8offenses identified through the course of an investigation
9conducted pursuant to this section, and arrest upon probable
10cause without warrant a person found in the act of committing
11a violation of a provision of this chapter or a law of this
12state.
13 Sec. 10. Section 508E.2, subsection 14, Code 2021, is
14amended to read as follows:
1514. “Viatical settlement broker” means a person, including
16a life insurance producer as provided for in section 508E.3,
17who, working exclusively on behalf of a viator and for a fee,
18commission, or other valuable consideration, offers or attempts
19to negotiate viatical settlement contracts between a viator
20and one or more viatical settlement providers or one or more
21viatical settlement brokers. Notwithstanding the manner in
22which the viatical settlement broker is compensated, a viatical
23settlement broker is deemed to represent only the viator,
24and not the insurer or the viatical settlement provider, and
25owes a fiduciary duty to the viator to act according to the
26viator’s instructions and in the best interest of the viator.
27“Viatical settlement broker” does not include an attorney,
28certified public accountant, or a financial planner accredited
29by a nationally recognized accreditation agency who is retained
30to represent the viator and whose compensation is not paid
31directly or indirectly by the viatical settlement provider or
32purchaser.
33 Sec. 11. Section 508E.3, subsections 2 and 3, Code 2021, are
34amended to read as follows:
352. An application for a viatical settlement provider
-7-1or viatical settlement broker license shall be made to the
2commissioner by the applicant on a form prescribed by the
3commissioner, and the application shall be accompanied by a
4fee of not more than one hundred dollars as provided by rules
5adopted by the commissioner.
63. A viatical settlement provider or viatical settlement
7broker license term shall be three years and the license
8may be renewed upon payment of a renewal fee of not more
9than one hundred dollars as provided by rules adopted by the
10commissioner. A failure to pay the fee by the renewal date
11shall result in expiration of the license.
12 Sec. 12. Section 509.1, subsection 9, Code 2021, is amended
13to read as follows:
149. A policy of group health insurance coverage issued to an
15associated health plan a multiple employer welfare arrangement
16 pursuant to section 513D.1 chapter 513D that is subject to
17regulation by the commissioner.
18 Sec. 13. Section 509.19, subsection 2, paragraph d, Code
192021, is amended to read as follows:
20d. A multiple employer welfare arrangement, as defined
21in section 3 of the federal Employee Retirement Income
22Security Act of 1974, 29 U.S.C. §1002(40), paragraph 40,
23or a multiple employer welfare arrangement formed as an
24association health plan pursuant to 29 C.F.R. pt.2510,
25that meets the requirements of section 507A.4, subsection 9,
26paragraph “a” chapter 513D.
27 Sec. 14. Section 509A.15, subsection 1, paragraph a,
28unnumbered paragraph 1, Code 2021, is amended to read as
29follows:
30Within ninety calendar days following the end of a fiscal
31year, the governing body of a self-insurance plan of a
32political subdivision or a school corporation shall file with
33the commissioner of insurance a certificate of compliance,
34actuarial opinion, and an annual financial report. The
35filing shall be accompanied by a fee of one hundred dollars
-8-1 established by the commissioner by rule. A penalty of fifteen
2dollars per day late fee established by the commissioner
3by rule shall be assessed for failure to comply with the
4ninety-day ninety-calendar-day filing requirement, except that
5the commissioner may waive the penalty late fee upon a showing
6that special circumstances exist which justify the waiver. The
7certificate shall be signed and dated by the appropriate public
8official representing the governing body, and shall certify the
9following:
10 Sec. 15. Section 510.21, Code 2021, is amended to read as
11follows:
12510.21 Certificate of registration required Certificates —
13 registration and renewal.
14A person shall not act as or represent oneself to be a
15third-party administrator in this state, other than an adjuster
16licensed in this state for the kinds of business for which
17the person is acting as a third-party administrator, unless
18the person holds a current certificate of registration as
19a third-party administrator issued by the commissioner of
20insurance. A certificate of registration as a third-party
21administrator is renewable shall be renewed every three
22years. Failure to hold a current certificate subjects the
23 of registration shall subject a third-party administrator to
24the sanctions set out in section 507B.7. The An application
25for a certificate of registration shall be accompanied by a
26filing fee as established by the commissioner by rule. A
27 certificate of registration shall be issued by the commissioner
28to a third-party administrator unless the commissioner,
29after due notice and hearing, determines that the third-party
30administrator is not competent, trustworthy, financially
31responsible, or of good personal and business reputation, or
32has had a previous an application for an insurance license
33denied for cause within the preceding five years.
34An application for registration shall be accompanied by a
35filing fee of one hundred dollars. After notice and hearing,
-9-1the commissioner may impose any or all of the sanctions set out
2in section 507B.7, upon finding that either the third-party
3administrator violated any of the requirements of sections
4510.12 through 510.20 and this section, or the third-party
5administrator is not competent, trustworthy, financially
6responsible, or of good personal and business reputation.
7 If the commissioner denies an application for registration
8or renewal, a written notice that specifies the reasons for
9the denial or nonrenewal shall be provided to the applicant.
10Pursuant to chapter 17A, upon the applicant’s request, the
11commissioner shall grant the applicant a hearing on the denial
12or nonrenewal.
13 Sec. 16. Section 510.23, Code 2021, is amended by striking
14the section and inserting in lieu thereof the following:
15510.23 Violations and penalties.
161. If, after hearing, the commissioner determines that
17a third-party administrator has violated this chapter, or
18chapter 507B, the commissioner may order any one or more of the
19sanctions or penalties set out in section 507B.7.
202. If, after hearing, the commissioner determines that a
21person has aided and abetted a third-party administrator in
22commission of a violation of this chapter, or chapter 507B,
23the commissioner may order any one or more of the sanctions or
24penalties set out in section 507B.7.
253. If, after hearing, the commissioner determines that
26a third-party administrator is not competent, trustworthy,
27financially responsible, or of good personal and business
28reputation, the commissioner may order any one or more of the
29sanctions and penalties set out in section 507B.7.
30 Sec. 17. Section 511.24, Code 2021, is amended to read as
31follows:
32511.24 Fees from domestic Domestic and foreign companies —
33 fees.
34When not otherwise provided, a foreign or domestic life
35insurance company doing business in this state shall pay to the
-10-1commissioner of insurance the following fees a fee, established
2by the commissioner by rule, for all of the following:
31. For filing an application to do business, or an
4application to renew a certificate of authority, fifty dollars.
52. For issuing a certificate of authority to do business in
6this state, or for renewing a certificate, fifty dollars.
73. For filing amended articles of incorporation, fifty
8dollars.
94. For issuing an amended certificate of authority,
10twenty-five dollars.
115. For affixing the official seal to any paper filed with
12the division, ten dollars.
13 Sec. 18. Section 512B.24, Code 2021, is amended to read as
14follows:
15512B.24 Reports Annual statement.
16Reports shall be filed in accordance with this section.
171. A society transacting business in this state shall, on or
18before March 1 annually, unless for cause shown the time has
19been extended by the commissioner, shall annually file with the
20commissioner a true statement of its the society’s financial
21condition, transactions, and affairs for the preceding calendar
22year and shall pay a fee of fifty dollars established by the
23commissioner by rule. The statement may be in general form and
24content as approved by the national association of insurance
25commissioners for fraternal benefit societies and shall be
26supplemented by additional information as adopted by rule of
27the commissioner.
282. As part of the a society’s annual statement, a the
29 society shall, on or before March 1, file with the commissioner
30of insurance a valuation of its the society’s certificates
31in force on the last preceding December 31. However, the
32commissioner may, for cause shown, extend the time for filing
33the valuation for not more than two consecutive calendar
34months. The valuation shall be done completed in accordance
35 compliance with the standards specified in section 512B.23.
-11-1The valuation and underlying data shall be certified by a
2qualified actuary or, at the expense of the society, verified
3by the actuary of the department of insurance of the state of
4domicile of the society.
53. A society failing to file the society’s annual statement
6in the form and within the time provided by compliance with
7 this section shall forfeit one hundred dollars for each day
8during which the default continues, and, upon notice by the
9commissioner to that effect, the society’s authority to do
10business in this state shall cease while during the duration of
11 the default continues.
12 Sec. 19. Section 512B.25, Code 2021, is amended to read as
13follows:
14512B.25 Annual license — renewal.
15The authority of a society to transact business in this
16state may be renewed annually. A society’s license terminates
17 to transact business in this state shall terminate on the
18first day of June following the issuance or the renewal of
19the society’s license. A society shall submit annually on
20or before March 1 a completed application for renewal of its
21license. For each license or renewal the society shall pay
22the commissioner a fee of fifty dollars established by the
23commissioner by rule. A society that fails to timely file an
24application for renewal shall pay an administrative penalty
25of five hundred dollars to the treasurer of state for deposit
26as provided in section 505.7 a late fee as established by the
27commissioner by rule. A duly certified copy or duplicate
28of the a society’s license is prima facie evidence that the
29licensee is a fraternal benefit society within the meaning of
30this chapter.
31 Sec. 20. Section 513D.1, Code 2021, is amended by striking
32the section and inserting in lieu thereof the following:
33513D.1 Multiple employer welfare arrangements and association
34health plans.
351. As used in this chapter, unless the context otherwise
-12-1requires:
2a. “Association health plan” or “AHP” means a multiple
3employer welfare arrangement formed as an association health
4plan pursuant to 29 C.F.R. pt.2510.
5b. “Commissioner” means the commissioner of insurance.
6c. “Multiple employer welfare arrangement” or “MEWA” means a
7multiple employer welfare arrangement as defined in section 3
8of the federal Employee Retirement Income Security Act of 1974,
929 U.S.C. §1002, paragraph 40.
102. An AHP or MEWA that offers a plan to, or maintains a
11group health plan for, any resident of this state shall be
12subject to the jurisdiction of the commissioner and shall
13comply with all of the following requirements:
14a. The AHP or MEWA must be administered by an insurer
15authorized to do the business of insurance in this state or
16an authorized third-party administrator that holds a current
17certificate of registration pursuant to section 510.21.
18b. The AHP or MEWA must be established by a trade,
19industry, or professional association of employers that has a
20constitution or bylaws, is organized and maintained in good
21faith, and has membership stability as defined by rules adopted
22by the commissioner.
23c. The AHP or MEWA must register with the commissioner and
24obtain and maintain a certificate of registration issued by the
25commissioner.
26d. The AHP or MEWA shall comply with all rules and solvency
27standards established by rules adopted by the commissioner.
283. An AHP or MEWA that does not meet the solvency standards
29pursuant to subsection 2, paragraph “d”, shall be subject to
30chapter 507C.
314. An AHP or MEWA that meets all of the requirements of
32subsection 2 shall not be considered any of the following:
33a. An insurance company or association of whatever kind or
34character under section 432.1.
35b. A member of the Iowa individual health benefit
-13-1reinsurance association pursuant to section 513C.10, subsection
21.
3c. A member insurer of the Iowa life and health insurance
4guaranty association pursuant to section 508C.5.
55. An AHP or MEWA that is registered with the commissioner
6pursuant to subsection 2, paragraph “c”, shall annually file
7with the commissioner on or before March 1 a copy of the report
8required to be filed by the AHP or MEWA with the United States
9department of labor pursuant to 29 C.F.R. §2520.101-2.
106. An AHP or MEWA that is registered with the commissioner
11pursuant to subsection 2, paragraph “c”, shall annually file
12with the commissioner a report on or before March 1 for the
13preceding calendar year. The annual report shall contain the
14information and be in a form and manner as prescribed by the
15commissioner.
167. A foreign or domestic AHP or MEWA doing business in the
17state shall pay fees as prescribed by the commissioner unless
18otherwise provided by law.
198. A MEWA that is recognized as tax-exempt under Internal
20Revenue Code section 501(c)(9) and that is registered with the
21commissioner prior to January 1, 2018, shall not be considered
22an AHP unless the MEWA affirmatively elects to be treated as
23an AHP.
24 Sec. 21. Section 513D.2, subsection 1, Code 2021, is amended
25to read as follows:
261. The commissioner of insurance shall adopt rules, as
27necessary, pursuant to chapter 17A to administer this chapter.
28 Sec. 22. Section 514G.103, subsection 10, Code 2021, is
29amended to read as follows:
3010. “Independent review entity organization” means a review
31entity organization certified by the commissioner pursuant to
32section 514G.110, subsection 4.
33 Sec. 23. Section 514G.110, subsections 4, 5, 6, 7, 8, and 9,
34Code 2021, are amended to read as follows:
354. Qualifications of independent review entities
-14-1 organizations. The commissioner shall maintain a list of
2qualified independent review entities organizations that are
3certified by the commissioner. Independent review entities
4 organizations shall be recertified by the commissioner every
5two years in order to remain on the list. In order to be
6certified, an independent review entity organization shall meet
7all of the following criteria:
8a. Have on staff, or contract with, a qualified, licensed
9health care professional in an appropriate field for
10determining an insured’s functional or cognitive impairment who
11can conduct an independent review.
12(1) In order to be qualified, a licensed health care
13professional who is a physician shall hold a current
14certification by a recognized American medical specialty
15board in a specialty appropriate for determining an insured’s
16functional or cognitive impairment.
17(2) In order to be qualified, a licensed health care
18professional who is not a physician shall hold a current
19certification in the specialty in which that person is
20licensed, by a recognized American specialty board in a
21specialty appropriate for determining an insured’s functional
22or cognitive impairment.
23b. Ensure that any licensed health care professional who
24conducts an independent review has no history of disciplinary
25actions or sanctions, including but not limited to the loss
26of staff privileges or any participation restrictions taken
27or pending by any hospital or state or federal government
28regulatory agency.
29c. Ensure that the independent review entity organization
30 or any of its employees, agents, or licensed health care
31professionals utilized does not receive compensation of any
32type that is dependent on the outcome of a review.
33d. Ensure that the independent review entity organization
34 or any of its employees, agents, or licensed health care
35professionals utilized are not in any manner related to,
-15-1employed by, or affiliated with the insured or with a person
2who previously provided medical care to the insured.
3e. Ensure that an independent review entity organization
4 or any of its employees, agents, or licensed health care
5professionals utilized is not a subsidiary of, or owned or
6controlled by, an insurer or by a trade association of insurers
7of which the insurer is a member.
8f. Have a quality assurance program on file with the
9commissioner that ensures the timeliness and quality of reviews
10performed, the qualifications and independence of the licensed
11health care professionals who perform the reviews, and the
12confidentiality of the review process.
13g. Have on staff or contract with a licensed health care
14practitioner, as defined in section 514G.103, subsection 3, who
15is qualified to certify that an individual is chronically ill
16for purposes of a qualified long-term care insurance contract.
175. Independent review process. The independent review
18process shall be conducted as follows:
19a. Within three business days of receiving a notice from the
20commissioner of the certification of a request for independent
21review or receipt of a denial of an insurer’s appeal from such
22a certification, the insurer shall do all of the following:
23(1) Select an independent review entity organization from
24the list certified by the commissioner and notify the insured
25in writing of the name, address, and telephone number of the
26selected independent review entity selected organization. The
27selected independent review entity selected organization shall
28utilize a licensed health care professional with qualifications
29appropriate to the benefit trigger determination that is under
30review.
31(2) Notify the independent review entity organization
32 that it has been selected to conduct an independent review
33of a benefit trigger determination and provide sufficient
34descriptive information to enable the independent review entity
35 organization to provide licensed health care professionals who
-16-1will be qualified to conduct the review.
2(3) Provide the commissioner with a copy of the notices sent
3to the insured and to the selected independent review entity
4selected organization.
5b. Within three business days of receiving a notice from
6an insurer that it has been selected to conduct an independent
7review, the independent review entity organization shall do one
8of the following:
9(1) Accept its selection as the independent review entity
10 organization, designate a qualified licensed health care
11professional to perform the independent review, and provide
12notice of that designation to the insured and the insurer,
13including a brief description of the health care professional’s
14qualifications and the reasons that person is qualified to
15determine whether the insured’s benefit trigger has been met.
16A copy of this notice shall be sent to the commissioner via
17facsimile. The independent review entity organization is not
18required to disclose the name of the health care professional
19selected.
20(2) Decline its selection as the independent review entity
21 organization or, if the independent review entity organization
22 does not have a licensed health care professional who is
23qualified to conduct the independent review available, request
24additional time from the commissioner to have a qualified
25licensed health care professional certified, and provide
26notice to the insured, the insurer, and the commissioner.
27The commissioner shall notify the independent review entity
28 organization, the insured, and the insurer of how to proceed
29within three business days of receipt of such notice from the
30independent review entity organization.
31c. An insured may object to the independent review entity
32 organization selected by the insurer or to the licensed
33health care professional designated by the independent review
34entity organization to conduct the review by filing a notice
35of objection along with reasons for the objection, with the
-17-1commissioner within ten days of receipt of a notice sent by the
2independent review entity organization pursuant to paragraph
3“b”. The commissioner shall consider the insured’s objection
4and shall notify the insured, the insurer, and the independent
5review entity organization of the commissioner’s decision to
6sustain or deny the objection within two business days of
7receipt of the objection.
8d. Within five business days of receiving a notice from
9the independent review entity organization accepting its
10selection or within five business days of receiving a denial
11of an objection to the independent review entity organization
12 selected, whichever is later, the insured may submit any
13information or documentation in support of the insured’s claim
14to both the independent review entity organization and the
15insurer.
16e. Within fifteen days of receiving a notice from the
17independent review entity organization accepting its selection
18or within three business days of receipt of a denial of
19an objection to the independent review entity organization
20 selected, whichever is later, an insurer shall do all of the
21following:
22(1) Provide the independent review entity organization
23 with any information submitted to the insurer by the insured
24in support of the insured’s internal appeal of the insurer’s
25benefit trigger determination.
26(2) Provide the independent review entity organization with
27any other relevant documents used by the insurer in making its
28benefit trigger determination.
29(3) Provide the insured and the commissioner with
30confirmation that the information required under subparagraphs
31(1) and (2) has been provided to the independent review entity
32 organization, including the date the information was provided.
33f. The independent review entity organization shall not
34commence its review until fifteen days after the selection of
35the independent review entity organization is final including
-18-1the resolution of any objection made pursuant to paragraph
2“c”. During this time period, the insurer may consider any
3information provided by the insured pursuant to paragraph
4“d” and overturn or affirm the insurer’s benefit trigger
5determination based on such information. If the insurer
6overturns its benefit trigger determination, the independent
7review process shall immediately cease.
8g. In conducting a review, the independent review
9entity organization shall consider only the information
10and documentation provided to the independent review entity
11 organization pursuant to paragraphs “d” and “e”.
12h. The independent review entity organization shall submit
13its decision as soon as possible, but not later than thirty
14days from the date the independent review entity organization
15 receives the information required under paragraphs “d” and “e”,
16whichever is received later. The decision shall include a
17description of the basis for the decision and the date of the
18benefit trigger determination to which the decision relates.
19The independent review entity organization, for good cause,
20may request an extension of time from the commissioner to file
21its decision. A copy of the decision shall be mailed to the
22insured, the insurer, and the commissioner.
23i. All medical records submitted for use by the independent
24review entity organization shall be maintained as confidential
25records as required by applicable state and federal laws. The
26commissioner shall keep all information obtained during the
27independent review process confidential pursuant to section
28505.8, subsection 8, except that the commissioner may share
29some information obtained as provided under section 505.8,
30subsection 8, and as required by this chapter and rules adopted
31pursuant to this chapter.
32j. If an insured dies before completion of the independent
33review, the review shall continue to completion if there
34is potential liability of an insurer to the estate of the
35insured or to a provider for rendering qualified long-term care
-19-1services to the insured.
26. Costs. All reasonable fees and costs of the independent
3review entity incurred organization in conducting an
4independent review under this section shall be paid by the
5insurer.
67. Immunity. An independent review entity organization that
7conducts a review under this section is not liable for damages
8arising from determinations made during the review. Immunity
9does not apply to any act or omission made by an independent
10review entity organization in bad faith or that involves gross
11negligence.
128. Effect of independent review decision.
13a. The review decision by the independent review entity
14 organization conducting the review is binding on the insurer.
15b. The independent review process set forth in this section
16shall not be considered a contested case under chapter 17A.
17c. An insured may appeal the review decision by the
18independent review entity organization conducting the review
19by filing a petition for judicial review in the district court
20in the county in which the insured resides. The petition for
21judicial review shall be filed within fifteen business days
22after the issuance of the review decision by the independent
23review organization. The petition shall name the insured
24as the petitioner and the insurer as the respondent. The
25petitioner shall not name the independent review entity
26 organization as a party. The commissioner shall not be named
27as a respondent unless the insured alleges action or inaction
28by the commissioner under the standards articulated under
29section 17A.19, subsection 10. Allegations made against the
30commissioner under section 17A.19, subsection 10, must be
31stated with particularity. The commissioner may, upon motion,
32intervene in a judicial review proceeding brought pursuant to
33this paragraph. The findings of fact by the independent review
34entity organization conducting the review are conclusive and
35binding on appeal.
-20- 1d. An insurer shall not be subject to any penalties,
2sanctions, or damages for complying in good faith with a review
3decision rendered by an independent review entity organization
4 pursuant to this section.
5e. Nothing contained in this section or in section 514G.109
6shall be construed to limit the right of an insurer to assert
7any rights an insurer may have under a long-term care insurance
8policy related to:
9(1) An insured’s misrepresentation.
10(2) Changes in the insured’s benefit eligibility.
11(3) Terms, conditions, and exclusions contained in the
12policy, other than failure to meet the benefit trigger.
13f. The requirements of this section and section 514G.109 are
14not applicable to a group long-term care insurance policy that
15is governed by the federal Employee Retirement Income Security
16Act of 1974, as codified at 29 U.S.C. §100 §1001 et seq.
17g. The provisions of this section and section 514G.109
18are in lieu of and supersede any other third-party review
19requirement contained in chapter 514J or in any other provision
20of law.
21h. The insured may bring an action in the district court
22in the county in which the insured resides to enforce the
23review decision of the independent review entity organization
24 conducting the review or the decision of the court on appeal.
259. Receipt of notice. Notice required by this section shall
26be deemed received within five days after the date of mailing.
27 Sec. 24. Section 515.147, Code 2021, is amended to read as
28follows:
29515.147 Fees.
30Fees, established by the commissioner of insurance by rule,
31 shall be paid to the commissioner of insurance for deposit as
32provided in section 505.7 as follows for all of the following:
331. For filing an application to do business, including all
34documents submitted in connection with the application, by a
35foreign or domestic company, or for filing an application for
-21-1renewed authority, fifty dollars.
22. For issuing to a foreign or domestic company a
3certificate of authority to do business or a renewed
4certificate of authority, fifty dollars.
53. For filing amended articles of incorporation, fifty
6dollars.
74. For issuing an amended certificate of authority,
8twenty-five dollars.
95. For affixing the official seal to any paper filed with
10the division, ten dollars.
11 Sec. 25. Section 515A.2, subsection 1, Code 2021, is amended
12by adding the following new paragraph:
13 NEW PARAGRAPH. 0a. “Commissioner” means the commissioner
14of insurance.
15 Sec. 26. Section 515A.6, subsection 1, paragraph c, Code
162021, is amended to read as follows:
17c. Licenses issued pursuant to this section shall remain
18in effect for three years unless sooner suspended or revoked
19by the commissioner. The fee for the license fee shall be one
20hundred dollars established by the commissioner by rule.
21 Sec. 27. Section 515A.6, subsection 7, Code 2021, is amended
22to read as follows:
237. Notwithstanding any other provision of the Code law to
24the contrary, the commissioner of insurance shall provide for
25a hearing in a proceeding involving a workers’ compensation
26insurance rate filing by a licensed rating organization
27in accordance with the provisions of this subsection and
28rules promulgated by the commissioner of insurance pursuant
29to chapter 17A. Except as otherwise provided herein, the
30provisions of this subsection shall not be subject to the
31requirements of chapter 17A. The procedures for such hearing
32shall be as follows:
33a. The commissioner shall provide notice of the filing of
34the proposed rates at least thirty days before the effective
35date of the proposed rates by publishing a notice on the
-22-1internet site of the insurance division of the department of
2commerce.
3b. A public hearing shall be held on the proposed rates by
4the commissioner of insurance if within fifteen days of the
5date of publication a workers’ compensation policyholder or an
6established organization with one or more workers’ compensation
7policyholders among its members files a written demand with the
8commissioner of insurance for a hearing on the proposed rates.
9c. The commissioner of insurance shall hold the hearing
10within twenty days after receipt of the written demand for a
11hearing and shall give not less than ten days written notice of
12the time and place of the hearing to the person or association
13filing the demand, to the rating organization, and to any other
14person requesting such notice.
15d. At any such hearing, the rating organization shall
16bear the burden of proof to support the proposed rates by a
17preponderance of the evidence. The person or association
18requesting the hearing, and any other person admitted as a
19party to the proceeding, shall be given the opportunity to
20respond and introduce evidence and arguments on all the issues
21involved.
22e. Within fifteen days after the start of the hearing, the
23commissioner of insurance will shall approve or disapprove
24the proposed rates and specify the reasons therefor. The
25commissioner of insurance may suspend or postpone the effective
26date of the proposed rates pending the hearing and written
27decision thereon.
28f. Judicial review of the decision of the commissioner of
29insurance on such rates may be sought in accordance with the
30provisions of chapter 17A.
31g. Absent a request for a hearing as provided in paragraph
32“b”, the commissioner shall issue an order approving or
33disapproving the proposed rates.
34h. The waiting period for a workers’ compensation insurance
35rate filing shall commence no earlier than the date that notice
-23-1of the insurance rate filing is published.
2 Sec. 28. Section 515A.10, Code 2021, is amended to read as
3follows:
4515A.10 Advisory organizations.
51. Every group, association or other organization of
6insurers, whether located within or outside of this state,
7which assists insurers which make their own filings or rating
8organizations in rate making, by the collection and furnishing
9of loss or expense statistics, or by the submission of
10recommendations, but which does not make filings under this
11chapter, shall be known as an advisory organization.
122. An advisory organization shall not provide a service
13relating to this chapter, and an insurer shall not utilize
14the services of an advisory organization for such purposes
15unless the advisory organization has obtained a license under
16subsection 3.
172. 3. Every An advisory organization applying for a license
18 shall file include with its application to the commissioner all
19of the following:
20a. A copy of its constitution, its articles of agreement
21or association or its certificate of incorporation and of its
22bylaws, rules and regulations governing its activities.
23b. A list of its members.
24c. The name and address of a resident of this state upon
25whom notices or orders of the commissioner or process issued at
26the commissioner’s direction may be served.
27d. An agreement that the commissioner may examine such
28advisory organization in accordance with the provisions of
29section 515A.12.
30e. A fee established by the commissioner by rule.
313. 4. If, after a hearing, the commissioner finds that
32the furnishing of such information or assistance involves an
33advisory organization has engaged in any act or practice which
34is unfair, or unreasonable, or otherwise inconsistent with the
35provisions in violation of this chapter, the commissioner may
-24-1issue a written an order specifying in what respects such act
2or practice is unfair or unreasonable or otherwise inconsistent
3with the provisions of this chapter, and requiring the
4discontinuance of such act or practice advisory organization to
5cease and desist such act or practice. The commissioner may,
6at any time after hearing, revoke or suspend the license of an
7advisory organization which does not comply with this chapter.
84. 5. No insurer which makes its own filings nor any rating
9organization shall support its filings by statistics or adopt
10rate making recommendations, furnished to it by an advisory
11organization which has not complied with this section or with
12an order of the commissioner involving such statistics or
13recommendations issued under subsection 3 4 of this section.
14If the commissioner finds such insurer or rating organization
15to be in violation of this subsection the commissioner may
16issue an order requiring the discontinuance of such violation.
176. A license issued under this section shall remain in
18effect for three years unless sooner suspended or revoked by
19the commissioner.
20 Sec. 29. Section 515D.4, subsection 2, paragraph a, Code
212021, is amended to read as follows:
22a. The named insured or any operator who either resides
23in the same household or customarily operates an automobile
24insured under the policy has that person’s driver’s license
25suspended or revoked during the policy term or, if the policy
26is a renewal, during its term or the one hundred eighty days
27immediately preceding its effective date. any of the following:
28(1) The term of the policy.
29(2) The term of a renewal policy.
30(3) Within one hundred eighty calendar days immediately
31preceding the effective date of a renewal of the policy.
32 Sec. 30. Section 515D.4, subsection 3, Code 2021, is amended
33to read as follows:
343. This section shall not apply to any policy or coverage
35which has been in effect less than sixty calendar days at the
-25-1time notice of cancellation is mailed or delivered by the
2insurer unless it is a renewal policy. This section shall not
3apply to the nonrenewal of a policy.
4 Sec. 31. Section 515D.5, Code 2021, is amended to read as
5follows:
6515D.5 Delivery of notice.
71. a. Notwithstanding the provisions of section 515.129A,
8a notice of cancellation of a policy shall not be effective
9unless mailed or delivered by the insurer to the named insured
10at least thirty calendar days prior to the effective date of
11cancellation, or, where the cancellation is for nonpayment of
12premium notwithstanding the provisions of section 515.129A,
13at least ten calendar days prior to the date of cancellation.
14A post office department certificate of mailing to the named
15insured at the address shown in the policy shall be proof
16of receipt of such mailing. Unless the reason accompanies
17the notice of cancellation, the notice shall state that upon
18written request of the named insured, mailed or delivered to
19the insurer not less than fifteen calendar days prior to the
20date of cancellation, the insurer will state the reason for
21cancellation together with notification of the right to a
22hearing before the commissioner within fifteen calendar days as
23provided in this chapter.
24b. When the reason does not accompany the notice of
25cancellation, the insurer shall, upon receipt of a timely
26request by the named insured, state in writing the reason
27for cancellation. A statement of reason shall be mailed or
28delivered to the named insured within five calendar days after
29receipt of a request.
302. A notice of exclusion of a person under a policy pursuant
31to section 515D.4, is not effective unless written notice
32is mailed or delivered to the named insured at least twenty
33calendar days prior to the effective date of the exclusion.
34The written notice shall state the reason for the exclusion,
35together with notification of the right to a hearing before
-26-1the commissioner pursuant to section 515D.10 within fifteen
2calendar days of receipt or delivery of a statement of reason
3as provided in this section.
4 Sec. 32. Section 515D.6, Code 2021, is amended to read as
5follows:
6515D.6 Prohibited reasons for nonrenewal.
71. No insurer shall refuse to renew a policy solely because
8of age, residence, sex, race, color, creed, or occupation of
9an insured.
102. No insurer shall require a physical examination of a
11policyholder as a condition for renewal solely on the basis of
12age or other arbitrary reason. In the event that an insurer
13requires a physical examination of a policyholder, the burden
14of proof in establishing reasonable and sufficient grounds for
15such requirement shall rest with the insurer and the expenses
16incident to such examination shall be borne by the insurer.
17 Sec. 33. Section 515D.7, Code 2021, is amended to read as
18follows:
19515D.7 Notice of intent.
201. Notwithstanding the provisions of sections 515.125,
21515.128, 515.129B, and 515.129C, an insurer shall not fail to
22renew a policy except by notice to the insured as provided
23in this chapter. A notice of intention not to renew shall
24not be effective unless mailed or delivered by the insurer
25to the named insured at least thirty calendar days prior to
26the expiration date of the policy. A post office department
27certificate of mailing to the named insured at the address
28shown in the policy shall be proof of receipt of such mailing.
29Unless the reason accompanies the notice of intent not to
30renew, the notice shall state that, upon written request of
31the named insured, mailed or delivered to the insurer not less
32than thirty calendar days prior to the expiration date of the
33policy, the insurer will state the reason for nonrenewal.
342. When the reason does not accompany the notice of intent
35not to renew, the insurer shall, upon receipt of a timely
-27-1request by the named insured, state in writing the reason
2for nonrenewal, together with notification of the right to a
3hearing before the commissioner within fifteen calendar days
4as provided herein. A statement of reason shall be mailed or
5delivered to the named insured within ten days after receipt
6of a request.
73. This section shall not apply:
8a. If the insurer has manifested its willingness to renew.
9b. If the insured fails to pay any premium due or any
10advance premium required by the insurer for renewal.
11c. If the insured is transferred from an insurer to
12an affiliate for future coverage as a result of a merger,
13acquisition, or company restructuring and if the transfer
14results in the same or broader coverage.
15 Sec. 34. Section 515D.10, Code 2021, is amended to read as
16follows:
17515D.10 Hearing before commissioner.
18Any named insured who has received a statement of reason
19for cancellation, or of reason for an insurer’s intent not
20to renew a policy, may, within fifteen calendar days of the
21receipt or delivery of a statement of reason, request a hearing
22before the commissioner of insurance. The purpose of this
23hearing shall be limited to establishing the existence of the
24proof or evidence used stated by the insurer in as its reason
25for cancellation or intent not to renew. The burden of proof
26of the reason for cancellation or intent not to renew shall
27be upon the insurer. Other than the sharing of information
28required by this chapter and the rules adopted pursuant to
29the provisions of this chapter, the commissioner shall keep
30confidential the information obtained from the insured or in
31the hearing process, pursuant to section 505.8, subsection 8.
32The commissioner of insurance shall adopt rules for carrying
33out pursuant to chapter 17A to implement the provisions of this
34section.
35 Sec. 35. Section 515F.2, Code 2021, is amended by adding the
-28-1following new unnumbered paragraph:
2 NEW UNNUMBERED PARAGRAPH. As used in this chapter, unless
3the context otherwise requires:
4 Sec. 36. Section 515F.2, Code 2021, is amended by adding the
5following new subsection:
6 NEW SUBSECTION. 2A. “Commissioner” means the commissioner
7of insurance.
8 Sec. 37. Section 515F.8, subsection 3, paragraph a, Code
92021, is amended by adding the following new subparagraph:
10 NEW SUBPARAGRAPH. (7) A license fee as established by the
11commissioner by rule.
12 Sec. 38. Section 515F.8, subsection 3, paragraph d, Code
132021, is amended to read as follows:
14d. Duration. A license issued under this section shall
15remain in effect for one year three years unless the license
16is suspended or revoked. The commissioner may, at any time
17after hearing, revoke or suspend the license of an advisory
18organization which does not comply with the requirements and
19standards of this chapter.
20 Sec. 39. Section 515F.32, Code 2021, is amended by adding
21the following new unnumbered paragraph:
22 NEW UNNUMBERED PARAGRAPH. As used in this subchapter,
23unless the context otherwise requires:
24 Sec. 40. Section 515F.32, subsection 3, Code 2021, is
25amended to read as follows:
263. “Insurer” includes all companies or associations licensed
27to transact insurance business in this state under chapters
28515, 518, and 518A, reciprocal insurers issued a certificate
29of authority pursuant to chapter 520, and companies or
30associations admitted or seeking to be admitted to do business
31in this state under any of those chapters, notwithstanding any
32provision of the Code to the contrary.
33 Sec. 41. Section 515F.36, subsection 2, paragraph a,
34subparagraphs (1) and (2), Code 2021, are amended to read as
35follows:
-29- 1(1) American property casualty insurance association.
2(2) Property casualty insurers association of America
3 National association of mutual insurance companies.
4 Sec. 42. NEW SECTION. 515F.39 Cancellation or nonrenewal
5— FAIR notice.
6If basic property insurance coverage is canceled or not
7renewed other than for nonpayment of a premium pursuant to
8section 515.125, 515.126, 515.127, 515.128, 518.23, or 518A.29,
9the insurer shall notify the named insured that the named
10insured may be eligible for basic property insurance through
11the FAIR plan. The notice shall accompany the notice of
12cancellation or the intent not to renew.
13 Sec. 43. Section 515I.4, subsection 1, paragraph a, Code
142021, is amended to read as follows:
15a. Capital and surplus or its equivalent under the laws of
16the insurer’s domiciliary jurisdiction which equals the greater
17of either greatest of the following:
18(1) The minimum capital and surplus requirements under the
19laws of this state.
20(2) Fifteen million dollars.
21(3) The risk-based capital level requirements pursuant to
22chapter 521E.
23 Sec. 44. Section 520.12, subsection 2, Code 2021, is amended
24to read as follows:
252. A reciprocal or interinsurance insurer shall submit
26annually, on or before March 1, a completed application for
27renewal of the insurer’s certificate of authority. An insurer
28that fails to timely file an application for renewal shall pay
29an administrative fee of five hundred dollars to the treasurer
30of state for deposit as provided in section 505.7 to the
31commissioner of insurance as established by the commissioner of
32insurance by rule.
33 Sec. 45. Section 521.18, Code 2021, is amended to read as
34follows:
35521.18 Articles of merger or consolidation — filing fees
-30-1and approval.
2A company filing a plan to merge or consolidate under the
3provisions of this chapter shall file its articles of merger
4or consolidation with the commission for its approval. The
5fee for filing articles of merger or consolidation with
6the commission is fifty dollars shall be established by the
7commissioner by rule.
8 Sec. 46. Section 522.9, subsection 1, Code 2021, is amended
9to read as follows:
101. If an insurer fails, without just cause, to file an
11own risk and solvency assessment summary report by the filing
12date stipulated to the commissioner pursuant to section 522.5,
13subsection 1, paragraph “c”, the commissioner shall, after
14notice and hearing, impose a penalty of five hundred dollars
15for each calendar day after the stipulated date that the
16summary report is not filed. The penalties shall be collected
17by the commissioner and deposited in the general fund of the
18state pursuant to section 505.7. The maximum penalty which may
19be imposed under this section is fifty thousand dollars.
20 Sec. 47. Section 522A.5, Code 2021, is amended to read as
21follows:
22522A.5 Fees Counter employee — license fee.
23The fee for a counter employee license shall be fifty dollars
24per counter employee established by the commissioner by rule.
25In no case shall any combined fees exceed one thousand dollars
26in any calendar year for any one rental company or limited
27license or licensee or renewal license. The fees collected
28under this section shall be deposited as provided in section
29505.7.
30 Sec. 48. Section 522B.5, subsection 1, paragraph c, Code
312021, is amended to read as follows:
32c. The individual has paid the license fee of fifty dollars
33 established by the commissioner by rule.
34 Sec. 49. Section 522E.4, subsection 1, paragraph c, Code
352021, is amended to read as follows:
-31- 1c. An application fee of the lesser of fifty dollars per
2each endorsee at a location of the vendor or five hundred
3dollars per location valid for a three-year period and, for
4each three-year period thereafter, a renewal fee in the same
5amount. A maximum fee of five thousand dollars shall apply
6for licensure of a portable electronics vendor with multiple
7locations established by the commissioner by rule. The fees
8collected shall be deposited as provided in section 505.7.
9DIVISION III
10CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SALES
11 Sec. 50. Section 523A.204, subsections 1 and 2, Code 2021,
12are amended to read as follows:
131. A preneed seller shall file an annual report with the
14commissioner not later than April 1 of each year an annual
15report 15 on a form prescribed by the commissioner.
162. A preneed seller filing an annual report shall pay a
17filing fee of ten dollars established by the commissioner by
18rule per purchase agreement sold during the year covered by
19the report. Duplicate filing fees are not required for the
20same purchase agreement. If a purchase agreement has multiple
21sellers, the filing fee shall be paid by the preneed seller
22actually providing the merchandise and services.
23 Sec. 51. Section 523A.204, Code 2021, is amended by adding
24the following new subsection:
25 NEW SUBSECTION. 4. The commissioner may impose a late
26fee, established by the commissioner by rule, for each day
27after April 15 that a preneed seller fails to file the preneed
28seller’s annual report. The maximum late fee that may be
29imposed under this subsection is five hundred dollars. The fee
30shall be collected by the commissioner and deposited pursuant
31to section 505.7.
32 Sec. 52. Section 523A.501, subsections 7 and 8, Code 2021,
33are amended to read as follows:
347. A preneed seller’s license expires shall expire annually
35on April 15 30. If the a preneed seller has filed a complete
-32-1 an annual report pursuant to section 523A.204, subsection 1,
2 and paid the required fees as required in section 523A.204, the
3commissioner shall renew the preneed seller’s license until
4April 15 30 of the following year.
58. The commissioner may by rule create or accept a
6multijurisdiction preneed seller’s license. If the preneed
7seller’s license is issued by another jurisdiction, the rules
8shall require the filing of an application or notice form and
9payment of the applicable filing fee of fifty dollars for an
10application established by the commissioner by rule. The
11application or notice form utilized and the effective dates and
12terms of the license may vary from the provisions set forth in
13this section.
14 Sec. 53. Section 523A.502, subsection 5, Code 2021, is
15amended to read as follows:
165. A sales license shall expire annually on April 15 30. If
17the a sales agent has filed a substantially complete an annual
18report as required in pursuant to section 523A.502A, subsection
191, and has fulfilled the continuing education requirements
20pursuant to subsection 6, the commissioner shall renew the
21sales agent’s sales license until April 15 30 of the following
22year.
23 Sec. 54. Section 523A.502A, subsection 1, Code 2021, is
24amended to read as follows:
251. A No later than April 15, a sales agent shall file an
26annual report with the commissioner not later than April 1
27of each year an annual report on a form prescribed by the
28commissioner describing each purchase agreement sold by the
29sales agent during the year. An annual report must be filed
30whether or not sales were made a sales agent sold any purchase
31agreements during the year and even if the whether or not a
32 sales agent is no longer still an agent of a preneed seller or
33is still licensed by the commissioner.
34 Sec. 55. Section 523A.502A, Code 2021, is amended by adding
35the following new subsection:
-33-1 NEW SUBSECTION. 3. The commissioner may impose a late fee,
2established by the commissioner by rule, for each day after
3April 15 that a sales agent fails to file the sales agent’s
4annual report. The maximum late fee that may be imposed
5pursuant to this section is five hundred dollars. The fee
6shall be collected by the commissioner and deposited pursuant
7to section 505.7.
8 Sec. 56. Section 523A.601, subsection 4, Code 2021, is
9amended by striking the subsection and inserting in lieu
10thereof the following:
114. All purchase agreements, including a purchase agreement
12delivered or executed by electronic means, must have a sales
13agent identified. A purchase agreement, including a purchase
14agreement delivered or executed by electronic means, shall
15be reviewed by the sales agent identified and named in the
16purchase agreement pursuant to subsection 1, paragraph “a”, and
17signed by the purchaser and seller. If the purchase agreement
18is for mortuary science services as “mortuary science” is
19defined in section 156.1, the purchase agreement must also be
20signed by a person licensed to deliver funeral services.
21 Sec. 57. Section 523A.807, subsection 3, unnumbered
22paragraph 1, Code 2021, is amended to read as follows:
23If the commissioner finds that a person has violated section
24523A.201, 523A.202, 523A.203, 523A.204, 523A.207, 523A.401,
25523A.402, 523A.403, 523A.404, 523A.405, 523A.501, or 523A.502,
26or 523A.502A, or any rule adopted pursuant thereto, the
27commissioner may order any or all of the following:
28 Sec. 58. Section 523A.812, Code 2021, is amended to read as
29follows:
30523A.812 Insurance division regulatory fund.
31The insurance division may authorize the creation of a
32special revenue fund in the state treasury, to be known as the
33insurance division regulatory fund. The commissioner shall
34allocate annually from the filing fees paid pursuant to section
35523A.204, two dollars an amount established by the commissioner
-34-1by rule for each purchase agreement reported on a preneed
2seller’s annual report filed pursuant to section 523A.204 for
3deposit to the regulatory fund. The remainder of the fees
4collected pursuant to section 523A.204 shall be deposited
5as provided in section 505.7. The commissioner shall also
6allocate annually the examination fees paid pursuant to section
7523A.814 and any examination expense reimbursement for deposit
8to the regulatory fund. The moneys in the regulatory fund
9shall be retained in the fund. The moneys are appropriated
10and, subject to authorization by the commissioner, may be used
11to pay examiners, examination expenses, investigative expenses,
12the expenses of mediation ordered by the commissioner, consumer
13education expenses, the expenses of a toll-free telephone
14line to receive consumer complaints, and the expenses of
15receiverships established under section 523A.811. If the
16commissioner determines that funding is not otherwise available
17to reimburse the expenses of a person who receives title
18to a cemetery subject to chapter 523I, pursuant to such
19a receivership, the commissioner shall use moneys in the
20regulatory fund as necessary to preserve, protect, restore,
21and maintain the physical integrity of that cemetery and to
22satisfy claims or demands for cemetery merchandise, funeral
23merchandise, and funeral services based on purchase agreements
24which the commissioner determines are just and outstanding.
25An annual allocation to the regulatory fund shall not be
26imposed if the current balance of the fund exceeds five hundred
27thousand dollars.
28 Sec. 59. Section 523A.814, Code 2021, is amended to read as
29follows:
30523A.814 Examination fee.
31In addition to the filing fee paid pursuant to section
32523A.204, subsection 2, a seller filing an annual report
33shall pay an examination fee in the amount of five dollars
34 established by the commissioner by rule for each purchase
35agreement subject to a filing fee that is sold between July 1,
-35-12005, and December 31, 2007, and in the amount of ten dollars
2for each purchase agreement subject to a filing fee that is
3sold after December 31, 2007.
4DIVISION IV
5RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS
6 Sec. 60. Section 523C.3, subsection 2, Code 2021, is amended
7to read as follows:
82. The application shall be accompanied by all of the
9following:
10a. A license fee in the amount of five hundred dollars
11 established by the commissioner by rule.
12b. If applicable, a fee in the amount of fifty dollars
13 established by the commissioner by rule for each motor vehicle
14service contract form submitted in an application as provided
15in subsection 1, paragraph “f”.
16 Sec. 61. Section 523C.4, subsection 3, paragraphs a, b, and
17c, Code 2021, are amended to read as follows:
18a. A license renewal fee in the amount of five hundred
19dollars established by the commissioner by rule.
20b. If applicable, a fee in the amount of three percent
21 percentage established by the commissioner by rule of the
22aggregate amount of payments the licensee received for the sale
23or issuance of residential service contracts in this state
24during the preceding fiscal year, provided that such fee shall
25be no less than one hundred dollars and no greater than fifty
26thousand dollars.
27c. If applicable, a fee in the amount of fifty dollars
28 established by the commissioner by rule for each motor
29vehicle service contract form submitted in a with the renewal
30application pursuant to subsection 2, and as provided in
31section 523C.3, subsection 1, paragraph “f”.
32 Sec. 62. Section 523C.24, subsection 2, Code 2021, is
33amended to read as follows:
342. The commissioner shall deposit in the service company
35oversight fund an amount equal to one-third of all licensing,
-36-1examination, renewal, and inspection fees collected under this
2chapter, provided that the maximum amount of fees deposited
3in the fund each fiscal year shall not exceed five hundred
4thousand dollars an amount established by the commissioner by
5rule. Any remaining fees collected under this chapter and
6not deposited in the service company oversight fund shall be
7deposited as provided in section 505.7.
8DIVISION V
9RETIREMENT FACILITIES
10 Sec. 63. Section 523D.2A, unnumbered paragraph 1, Code
112021, is amended to read as follows:
12On or before March 1 of each year, a provider shall
13file a certification with the commissioner in a manner and
14according to in compliance with requirements established by the
15commissioner by rule. The certification shall be accompanied
16by a one hundred dollar administrative fee which fee in an
17amount established by the commissioner by rule and shall be
18deposited as provided in section 505.7. The certification
19shall attest that according to the best knowledge and belief of
20the attesting party, the facility administered by the provider
21is in compliance with the provisions of this chapter, including
22rules adopted by the commissioner or and orders issued by the
23commissioner as authorized under this chapter. The attesting
24person may be any of the following:
25DIVISION VI
26IOWA CEMETERY ACT
27 Sec. 64. Section 523I.102, subsection 6, Code 2021, is
28amended by adding the following new paragraph:
29 NEW PARAGRAPH. d. A cemetery under the jurisdiction and
30control of a cemetery commission pursuant to section 331.325,
31subsection 3, paragraph “c”.
32 Sec. 65. Section 523I.213, Code 2021, is amended to read as
33follows:
34523I.213 Insurance division’s enforcement fund.
35A special revenue fund in the state treasury, to be known as
-37-1the insurance division’s enforcement fund, is created under the
2authority of the commissioner. The commissioner shall allocate
3annually from the examination fees paid pursuant to section
4523I.808, an amount not exceeding fifty thousand dollars, for
5 deposit to all examination fees collected pursuant to section
6523I.808 in the insurance division’s enforcement fund. The
7moneys in the enforcement fund shall be retained in the fund.
8The moneys are appropriated and, subject to authorization by
9the commissioner, shall be used to pay examiners, examination
10expenses, investigative expenses, the expenses of consumer
11education, compliance, and education programs for filers and
12other regulated persons, and educational or compliance program
13materials, the expenses of a toll-free telephone line for
14consumer complaints, and the expenses of receiverships of
15perpetual care cemeteries established under section 523I.212.
16 Sec. 66. Section 523I.301, subsections 1 and 2, Code 2021,
17are amended to read as follows:
181. A cemetery shall disclose, prior to the sale of interment
19rights, whether opening and closing of the interment space is
20 services are included in the purchase of the interment rights.
21If opening and closing services are not included in the sale of
22interment rights and the cemetery offers opening and closing
23services, the cemetery must disclose that the price for this
24service opening and closing services is subject to change
25and must disclose the current prices for opening and closing
26services provided by the cemetery.
272. The cemetery shall fully disclose all fees required for
28interment, entombment, or inurnment, or disinterment of human
29remains.
30 Sec. 67. Section 523I.309, subsection 6, Code 2021, is
31amended to read as follows:
326. A cemetery may shall disinter and relocate remains
33interred in the cemetery for the purpose of correcting an error
34made by the cemetery after obtaining a disinterment permit
35as required by section 144.34, unless the interested parties
-38-1have a written agreement directing otherwise. The cemetery
2shall bear the costs of the disinterment and relocation. The
3cemetery shall provide written notice describing the error
4to the commissioner and to the person who has the right to
5control the interment, relocation, or disinterment of the
6remains erroneously interred, by restricted certified mail at
7the person’s last known address and sixty days prior to the
8disinterment. The notice shall include the location where the
9disinterment will occur and the location of the new interment
10space. A cemetery is not civilly or criminally liable for an
11erroneously made interment that is corrected in compliance
12with this subsection unless the error was the result of gross
13negligence or intentional misconduct.
14 Sec. 68. Section 523I.808, Code 2021, is amended to read as
15follows:
16523I.808 Examination Annual report — examination fee.
17An examination fee, established by the commissioner by rule,
18for each certificate of internment rights issued during the
19time period covered by the report shall be submitted with the a
20perpetual care cemetery’s annual report in an amount equal to
21five dollars for each certificate of interment rights issued
22during the time period covered by the report filed pursuant to
23section 523I.813. The cemetery may charge the examination fee
24directly to the purchaser of the interment rights.
25 Sec. 69. Section 523I.813, subsection 3, Code 2021, is
26amended by striking the subsection and inserting in lieu
27thereof the following:
283. The commissioner may assess a late fee, established
29by the commissioner by rule, for each day after the date on
30which a perpetual care cemetery’s annual report is due that the
31perpetual care cemetery fails to file the report. The late fee
32shall be collected by the commissioner and deposited pursuant
33to section 505.7.
34DIVISION VII
35STATE INNOVATION WAIVER
-39-1 Sec. 70. NEW SECTION. 505.18A State innovation waivers.
21. The commissioner of insurance may develop by rule
3a state innovation waiver pursuant to section 1332 of the
4federal Patient Protection and Affordable Care Act, Pub.L. No.
5111-148.
62. The commissioner of insurance may submit an application
7on behalf of the state to the United States secretary of health
8and human services and the United States secretary of the
9treasury for the state innovation waiver developed pursuant to
10subsection 1.
113. If a state innovation waiver submitted pursuant to
12subsection 2 is approved by the United States secretary of
13health and human services and the United States secretary of
14the treasury, the commissioner of insurance may implement the
15state innovation waiver in a manner consistent with applicable
16state and federal law.
174. The commissioner of insurance may adopt emergency
18rules under section 17A.4, subsection 3, and section 17A.5,
19subsection 2, paragraph “b”, to implement the provisions of
20this section and the rules shall be effective immediately upon
21filing unless a later date is specified in the rules. Any
22rules adopted in accordance with this section shall also be
23published as a notice of intended action as provided in section
2417A.4.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
28This bill relates to various matters under the purview of the
29insurance division of the department of commerce. The bill is
30organized into seven divisions.
31DIVISION I — UNIFORM SECURITIES. Code section 502.304A
32(expedited registration by filing for small issuers) is amended
33to provide that an issuer, and a person registering as an
34agent of the issuer, must pay the administrator a registration
35fee established by the administrator, rather than the set
-40-1fee amounts of $100 (issuer) and $10 (person registering as
2an agent) required by current law. Code section 502.321G
3(fees) is amended to change the nonrefundable fee for a
4registration statement filed by an offeror from $250 to an
5amount established by the administrator.
6Code section 502.410 (filing fees) is amended to change
7the broker-dealer filing fee for an application or renewal
8registration from $200 to an amount established by the
9administrator. In addition, the filing fee for registration
10or renewal as an agent is amended from $40 to an amount
11established by the administrator. Of the agent registration
12fees collected, 25 percent are appropriated to the securities
13investor education and financial literacy training fund.
14Current law provides that $10 of every $40 fee collected
15goes to the fund. The filing fee for an investment adviser
16application or renewal registration is amended from $100 to
17an amount established by the administrator. The bill also
18amends the filing fees for an investment adviser representative
19application, renewal registration, and change of registration
20from $30 to an amount established by the administrator. A
21federal covered investment adviser must pay an initial fee
22and an annual notice fee in an amount established by the
23administrator, rather than the $100 fee required under current
24law.
25DIVISION II — INSURANCE. The bill amends Code section
26505.30 (service of process on the commissioner) to specify
27that the commissioner of insurance (commissioner) may set a
28reasonable fee for service made on the commissioner.
29The bill amends Code section 507A.4 (transactions where law
30not applicable) and provides that Code chapter 507A does not
31apply to a multiple employer welfare arrangement (MEWA) or a
32MEWA formed as an association health plan (AHP) that meets the
33requirements of Code chapter 513D. The bill strikes current
34Code section 513D.1 (association health plans) and replaces it
35with new provisions which detail the requirements for MEWAs and
-41-1AHPs that offer a plan to, or that maintain a group health plan
2for, any resident of Iowa. “AHP” and “MEWA” are defined in the
3bill.
4The bill details the requirements of the annual filings with
5the commissioner required of registered AHPs and MEWAs. The
6bill provides that a MEWA that is recognized as tax-exempt
7under Internal Revenue Code section 501(c)(9), and that is
8registered with the commissioner prior to January 1, 2018,
9shall not be considered an AHP unless the MEWA affirmatively
10elects to be treated as an AHP. The bill makes conforming
11changes to Code section 513D.2 (rules and enforcement).
12Code section 507B.7 (cease and desist orders) is amended
13to provide that a person who violates any order of the
14commissioner, rather than just a cease and desist order as is
15in current law, may, after notice and hearing be subject to a
16monetary penalty and suspension or revocation of the person’s
17license.
18The bill broadens the definition of “insurer” in Code
19section 507E.2A (definitions) to include any corporation,
20association, partnership, or individual engaged in the business
21of insurance, including but not limited to a corporation,
22association, partnership, or individual that issues a policy
23of workers’ compensation, a self-insured business for purposes
24of workers’ compensation liability, or a group or self-insured
25plan. The bill specifically excludes a person required to be
26licensed to sell, solicit, or negotiate insurance pursuant to
27Code chapter 522B from the definition.
28Code section 507E.8 (law enforcement authority) is amended
29by the bill to specify that an individual who is employed by
30the insurance division and is designated as a peace officer
31shall be considered a law enforcement officer and shall
32exercise the powers of a law enforcement officer as detailed
33in the bill.
34The bill amends Code section 508E.3 (license requirements)to
35change the application and renewal fees for a viatical
-42-1settlement provider and a viatical settlement broker from $100
2to an amount established by the administrator.
3Code section 509A.15 (certification of self-insurance plans
4— exemption) is amended to change the filing fee for the end
5of fiscal year filing of a governing body of a self-insurance
6plan of a political subdivision or a school corporation from
7$100 to an amount established by the commissioner. The current
8$15 per day penalty for late filings is changed to a late fee
9established by the commissioner.
10The bill makes conforming changes to Code section 510.21
11(certificate of registration) and also requires that an
12application for registration as a third-party administrator be
13accompanied by a filing fee as established by the commissioner.
14Current law does not require submission of a filing fee.
15The bill strikes and replaces Code section 510.23 (unfair
16competition or unfair and deceptive acts or practices
17prohibited) and makes third-party administrators that violate
18Code chapter 507B or 510 subject to the sanctions and penalties
19set out in Code section 507B.7. Third-party administrators are
20subject to Code chapter 507B under current law.
21Code section 511.24 (fees from domestic and foreign
22companies) is amended to change specific dollar amounts for
23certain filing fees for foreign or domestic life insurance
24companies to fee amounts determined by the commissioner.
25The bill makes conforming changes to Code section 512B.24
26(reports) and requires that the annual filing by fraternal
27benefit societies be accompanied by a fee established by the
28commissioner, rather than $50 as required by current law.
29The bill makes conforming changes to Code section 512B.25
30(annual license — renewal) and requires that for each license
31or renewal application a fraternal benefit society submit a fee
32established by the commissioner, rather than $50 as required by
33current law. The bill also changes the current administrative
34penalty of $500 for a late renewal filing to a late fee as
35established by the commissioner.
-43- 1The bill makes conforming changes to Code chapter 514G
2(long-term care insurance) and amends the Code chapter
3to change the terminology throughout the Code chapter
4from “independent review entity” to “independent review
5organization”.
6Code section 515.147 (fees) is amended to change filing
7fees for certain filings from specific dollar amounts to fees
8determined by the commissioner. The bill makes conforming
9changes to and amends Code section 515A.10 to provide more
10specific requirements related to licensing requirements, fees,
11and penalties for advisory organizations.
12The bill amends Code section 515F.8 (licensing advisory
13organizations) to require licensing advisory organizations
14to submit a fee, determined by the commissioner, with their
15application for a license, and makes the license effective for
16three years, rather than the one year under current law.
17Code section 515F.32 is amended to add reciprocal insurers
18to the definition of “insurer”. Code section 515F.36 is
19amended to change the makeup of the membership of the governing
20committee that administers the FAIR plan. The bill creates a
21new requirement that if basic property insurance coverage is
22canceled or not renewed other than for nonpayment of a premium
23pursuant to Code section 515.125, 515.126, 515.127, 515.128,
24518.23, or 518A.29, the insurer must notify the named insured
25that they may be eligible for basic property insurance through
26the FAIR plan, and the notice must accompany the notice of
27cancellation or the intent not to renew.
28The bill amends Code section 515I.4 (requirements for
29eligible surplus lines insurers) to allow a nonadmitted
30insurer seeking to qualify as an eligible surplus line insurer
31the option of demonstrating that the nonadmitted insurer
32has capital and surplus under the laws of the nonadmitted
33insurer’s domiciliary that equal the risk-based capital level
34requirements required by Iowa law. Current law requires the
35nonadmitted insurer to demonstrate that the nonadmitted insurer
-44-1has capital and surplus under the laws of the nonadmitted
2insurer’s domiciliary that equal the greater of the minimum
3capital and surplus required under the laws of this state, or
4$15 million.
5Code section 520.12 (certificate of authority — renewal —
6penalties) is amended to change the annual renewal fee for a
7reciprocal or interinsurance insurer from $500 to be submitted
8to the treasurer of state, to an administrative fee as
9established by the commissioner to be paid to the commissioner.
10The bill amends Code section 521.18 (articles of merger
11or consolidation) to change the fee for specific companies
12to file a plan to merge or consolidate from $50 to an amount
13established by the commissioner.
14Code section 522.9 (penalties) is amended to allow the
15commissioner to deposit penalties that have been collected due
16to insurers’ failure to file a timely own risk and solvency
17assessment summary report pursuant to Code section 505.7.
18Current law requires the commissioner to deposit the penalties
19into the general fund of the state.
20Code section 522A.5 (counter employee — license fee) is
21amended to change the license fee for a counter employee from
22$50 to an amount established by the commissioner, and removes
23the cap of $1,000 per calendar year for all combined fees paid
24by any one rental company.
25The bill amends Code section 522B.5 (application for
26license) to change the application fee for a resident insurance
27producer license from $50 to an amount established by the
28commissioner.
29Code section 522E.4 (application and fees) is amended to
30change the application fee for a portable electronics insurance
31license from a variable dollar amount to an amount established
32by the commissioner. The bill also removes the $5,000 cap
33on the total application fees that can be charged for the
34licensure of a portable electronics vendor with multiple
35locations.
-45- 1The bill makes conforming changes to Code sections 508E.2
2(definitions), 509.1(9) (form of policy), 509.19(2) (claims
3and premium disclosures), 515A.2 (definitions), 515A.6
4(rating organizations), 515A.10 (advisory organizations),
5515D.4 (notice of cancellation — reasons), 515D.5 (delivery
6of notice), 515D.6 (prohibited reasons), 515D.7 (notice of
7intent), 515D.10 (hearing before commissioner), and 515F.2
8(definitions).
9DIVISION III — CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL
10SALES. The bill amends Code section 523A.204 (preneed seller
11annual reporting requirements) to require preneed sellers to
12file an annual report by April 15 rather than the current date
13of April 1. The bill changes the filing fee for the report
14from $10 to an amount established by the commissioner. The
15bill allows the commissioner to impose a late fee for each
16day the report is late, up to a maximum of $500. The fee is
17to be collected by the commissioner and deposited pursuant to
18Code section 505.7. Code section 523A.501 (preneed sellers —
19licenses) is amended to specify that preneed sellers’ licenses
20expire annually on April 30, rather than the current expiration
21date of April 15. The bill changes the filing fee for a
22multijurisdictional preneed seller’s license that is issued by
23another jurisdiction from $50 to an amount established by the
24commissioner.
25The bill amends Code section 523A.502 (sales agents —
26licenses) to specify that sales agents’ licenses expire
27annually on April 30, rather than the current expiration date
28of April 15, and an agent must have fulfilled continuing
29education requirements to qualify for renewal. Code section
30523A.502A (sales agent annual reporting requirements) is
31amended to require sales agents to file an annual report by
32April 15, rather than the current date of April 1. The bill
33allows the commissioner to impose a late fee for each day that
34the annual 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.
2The bill strikes and replaces Code section 523A.601
3(disclosures) and requires that all purchase agreements,
4including those delivered or executed by electronic means,
5identify a sales agent. Purchase agreements must also be
6reviewed by the sales agent and signed by the purchaser and
7seller. If a purchase agreement is for mortuary science
8services, the purchase agreement must also be signed by a
9person licensed to deliver funeral services.
10The bill amends Code section 523A.812 (insurance division
11regulatory fund) to allocate an amount established by the
12commissioner to the regulatory fund from the filing fees for
13each purchase agreement reported on a preneed seller’s annual
14report. Current law requires the commissioner to allocate
15$2 from each filing fee to the regulatory fund. The bill
16also removes the prohibition on an annual allocation to the
17regulatory fund if the current balance exceeds $500,000.
18Code section 523A.814 (examination fee) is amended to change
19the examination fee for a seller’s annual report from $5,
20or other set dollar amount, to an amount established by the
21commissioner.
22The bill makes conforming changes to Code section 523A.807
23(prosecutions for violations of law).
24DIVISION IV — RESIDENTIAL AND MOTOR VEHICLE SERVICE
25CONTRACTS. Code section 523C.3 (application for license)
26is amended to change the $500 fee for an application for
27a service company license to a fee established by the
28commissioner. The current fee of $50 for each motor vehicle
29service contract form submitted with an application is also
30changed to a fee as established by the commissioner. Code
31section 523C.4 (license expiration and renewal) is amended to
32change the license renewal fee of $500 to a fee established
33by the commissioner. The bill amends the fee, based on the
34aggregate amount of payments a licensee received for the sale
35or issuance of residential service contracts in this state
-47-1during the preceding fiscal year, from 3 percent per contract
2to a percentage established by the commissioner by rule, and
3also removes the minimum and maximum dollar amount of fees
4that a licensee is required to submit. In addition, the bill
5amends the fee for each motor vehicle service contract form
6submitted with an application from $50 to a fee established by
7the commissioner.
8Code section 523C.24 (service company oversight fund) is
9amended to allow the commissioner to establish the amount
10deposited in the service company oversight fund from all
11licensing, examination, renewal, and inspection fees collected
12under Code chapter 523C. The bill also removes the current
13$500,000 maximum cap on fees that may be deposited in the fund
14each fiscal year.
15DIVISION V — RETIREMENT FACILITIES. Code section 523D.2A
16is amended to change the administrative fee submitted by a
17provider with its certification filing from $100 to an amount
18established by the commissioner.
19DIVISION VI — IOWA CEMETERY ACT. Code section 523I.102
20(definitions) is amended to exclude specific cemeteries, under
21the jurisdiction and control of a cemetery commission that
22has jurisdiction and control over pioneer cemeteries, from
23the definition of “cemetery” for purposes of Code chapter
24523I. Code section 523I.213 (insurance division’s enforcement
25fund) is amended to remove the cap on the allocation to the
26insurance division’s enforcement fund of examination fees paid
27by perpetual cemeteries with their annual report. The bill
28requires the commissioner to deposit all of the examination
29fees in the enforcement fund.
30Code section 523I.301 (disclosure requirements — prices
31and fees) is amended to require cemeteries to disclose, prior
32to the sale of interment rights, whether opening and closing
33services are included in the purchase price. The bill also
34requires cemeteries to disclose all fees associated with
35disinterment services.
-48- 1Code section 523I.309 (interment, relocation, or
2disinterment of remains) is amended to require cemeteries
3to disinter and relocate remains interred in a cemetery for
4the purpose of correcting an error made by the cemetery,
5unless the interested parties have a written agreement
6directing otherwise. The cemetery must bear all costs of the
7disinterment and relocation. Current law permits, but does not
8require, a cemetery to disinter and relocate such remains, and
9the cemetery is not required to bear the cost of disinterment
10and relocation.
11The bill amends Code section 523I.808 (examination fee) to
12require an examination fee, established by the commissioner,
13for each certificate of interment rights issued during the
14period covered by a perpetual care cemetery’s annual report.
15Under current law, the fee is $5 per certificate.
16The bill amends Code section 523I.813 (annual report by
17perpetual care cemeteries) to allow, rather than to require,
18the commissioner to impose a late penalty on a perpetual care
19cemetery that fails to timely file its annual report.
20DIVISION VII — STATE INNOVATION WAIVER. The bill
21authorizes the commissioner to develop by rule a state
22innovation waiver (waiver) pursuant to section 1332 of the
23federal Patient Protection and Affordable Care Act, Pub.L. No.
24111-148, and to submit an application on behalf of the state
25to the United States secretary of health and human services
26and the United States secretary of the treasury (secretaries)
27for the waiver. If a waiver is approved by the secretaries,
28the commissioner is authorized to implement the waiver in a
29manner consistent with applicable state and federal law. The
30bill authorizes the commissioner to adopt emergency rules
31to implement the waiver and the rules are to be effective
32immediately upon filing unless a later date is specified in the
33rules. Any rules that are adopted must also be published as a
34notice of intended action.
-49-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.2A, subsection 2, Code 2021, is amended
2to read as follows:
32. “Insurer” includes an insurer means any corporation,
4association, partnership, or individual engaged in the business
5of insurance, including but not limited to a corporation,
6association, partnership, or individual that issues a policy
7of workers’ compensation, a self-insured business for purposes
8of workers’ compensation liability, or a group or self-insured
9plan as described in section 87.4. “Insurer” does not include
10a person required to be licensed to sell, solicit, or negotiate
11insurance pursuant to chapter 522B.
12 Sec. 9. Section 507E.8, Code 2021, is amended to read as
13follows:
14507E.8 Law enforcement authority.
151. An individual employed by the division and designated as
16a peace officer shall be considered a law enforcement officer
17as that term is defined in section 80B.3, and shall exercise
18the powers of a law enforcement officer as follows:
19a. For purposes of an arrest resulting from a criminal
20violation of any provision of the Code subject to the
21jurisdiction of the commissioner established as a result of
22an investigation pursuant to this chapter, an insurance fraud
23bureau investigator shall have the authority and status of a
24law enforcement officer pursuant to section 80B.3, subsection
253.
26b. While conducting an investigation or engaged in an
27assignment authorized by this chapter or ordered by the
28commissioner.
29c. To protect life if a public offense is committed in the
30presence of the peace officer.
31d. While providing assistance to a law enforcement agency or
32another law enforcement officer.
33e. While providing assistance at the request of a member of
34the public.
352. The laws Laws applicable to an arrest of an individual
-6-1 by a law enforcement officer of the state shall apply to an
2insurance fraud bureau investigator individual employed by
3the division and designated as a peace officer. An insurance
4fraud bureau investigator individual employed by the division
5and designated as a peace officer shall have the power to
6execute arrest warrants and search warrants, serve subpoenas
7issued for the examination, investigation, and trial of all
8offenses identified through the course of an investigation
9conducted pursuant to this section, and arrest upon probable
10cause without warrant a person found in the act of committing
11a violation of a provision of this chapter or a law of this
12state.
13 Sec. 10. Section 508E.2, subsection 14, Code 2021, is
14amended to read as follows:
1514. “Viatical settlement broker” means a person, including
16a life insurance producer as provided for in section 508E.3,
17who, working exclusively on behalf of a viator and for a fee,
18commission, or other valuable consideration, offers or attempts
19to negotiate viatical settlement contracts between a viator
20and one or more viatical settlement providers or one or more
21viatical settlement brokers. Notwithstanding the manner in
22which the viatical settlement broker is compensated, a viatical
23settlement broker is deemed to represent only the viator,
24and not the insurer or the viatical settlement provider, and
25owes a fiduciary duty to the viator to act according to the
26viator’s instructions and in the best interest of the viator.
27“Viatical settlement broker” does not include an attorney,
28certified public accountant, or a financial planner accredited
29by a nationally recognized accreditation agency who is retained
30to represent the viator and whose compensation is not paid
31directly or indirectly by the viatical settlement provider or
32purchaser.
33 Sec. 11. Section 508E.3, subsections 2 and 3, Code 2021, are
34amended to read as follows:
352. An application for a viatical settlement provider
-7-1or viatical settlement broker license shall be made to the
2commissioner by the applicant on a form prescribed by the
3commissioner, and the application shall be accompanied by a
4fee of not more than one hundred dollars as provided by rules
5adopted by the commissioner.
63. A viatical settlement provider or viatical settlement
7broker license term shall be three years and the license
8may be renewed upon payment of a renewal fee of not more
9than one hundred dollars as provided by rules adopted by the
10commissioner. A failure to pay the fee by the renewal date
11shall result in expiration of the license.
12 Sec. 12. Section 509.1, subsection 9, Code 2021, is amended
13to read as follows:
149. A policy of group health insurance coverage issued to an
15associated health plan a multiple employer welfare arrangement
16 pursuant to section 513D.1 chapter 513D that is subject to
17regulation by the commissioner.
18 Sec. 13. Section 509.19, subsection 2, paragraph d, Code
192021, is amended to read as follows:
20d. A multiple employer welfare arrangement, as defined
21in section 3 of the federal Employee Retirement Income
22Security Act of 1974, 29 U.S.C. §1002(40), paragraph 40,
23or a multiple employer welfare arrangement formed as an
24association health plan pursuant to 29 C.F.R. pt.2510,
25that meets the requirements of section 507A.4, subsection 9,
26paragraph “a” chapter 513D.
27 Sec. 14. Section 509A.15, subsection 1, paragraph a,
28unnumbered paragraph 1, Code 2021, is amended to read as
29follows:
30Within ninety calendar days following the end of a fiscal
31year, the governing body of a self-insurance plan of a
32political subdivision or a school corporation shall file with
33the commissioner of insurance a certificate of compliance,
34actuarial opinion, and an annual financial report. The
35filing shall be accompanied by a fee of one hundred dollars
-8-1 established by the commissioner by rule. A penalty of fifteen
2dollars per day late fee established by the commissioner
3by rule shall be assessed for failure to comply with the
4ninety-day ninety-calendar-day filing requirement, except that
5the commissioner may waive the penalty late fee upon a showing
6that special circumstances exist which justify the waiver. The
7certificate shall be signed and dated by the appropriate public
8official representing the governing body, and shall certify the
9following:
10 Sec. 15. Section 510.21, Code 2021, is amended to read as
11follows:
12510.21 Certificate of registration required Certificates —
13 registration and renewal.
14A person shall not act as or represent oneself to be a
15third-party administrator in this state, other than an adjuster
16licensed in this state for the kinds of business for which
17the person is acting as a third-party administrator, unless
18the person holds a current certificate of registration as
19a third-party administrator issued by the commissioner of
20insurance. A certificate of registration as a third-party
21administrator is renewable shall be renewed every three
22years. Failure to hold a current certificate subjects the
23 of registration shall subject a third-party administrator to
24the sanctions set out in section 507B.7. The An application
25for a certificate of registration shall be accompanied by a
26filing fee as established by the commissioner by rule. A
27 certificate of registration shall be issued by the commissioner
28to a third-party administrator unless the commissioner,
29after due notice and hearing, determines that the third-party
30administrator is not competent, trustworthy, financially
31responsible, or of good personal and business reputation, or
32has had a previous an application for an insurance license
33denied for cause within the preceding five years.
34An application for registration shall be accompanied by a
35filing fee of one hundred dollars. After notice and hearing,
-9-1the commissioner may impose any or all of the sanctions set out
2in section 507B.7, upon finding that either the third-party
3administrator violated any of the requirements of sections
4510.12 through 510.20 and this section, or the third-party
5administrator is not competent, trustworthy, financially
6responsible, or of good personal and business reputation.
7 If the commissioner denies an application for registration
8or renewal, a written notice that specifies the reasons for
9the denial or nonrenewal shall be provided to the applicant.
10Pursuant to chapter 17A, upon the applicant’s request, the
11commissioner shall grant the applicant a hearing on the denial
12or nonrenewal.
13 Sec. 16. Section 510.23, Code 2021, is amended by striking
14the section and inserting in lieu thereof the following:
15510.23 Violations and penalties.
161. If, after hearing, the commissioner determines that
17a third-party administrator has violated this chapter, or
18chapter 507B, the commissioner may order any one or more of the
19sanctions or penalties set out in section 507B.7.
202. If, after hearing, the commissioner determines that a
21person has aided and abetted a third-party administrator in
22commission of a violation of this chapter, or chapter 507B,
23the commissioner may order any one or more of the sanctions or
24penalties set out in section 507B.7.
253. If, after hearing, the commissioner determines that
26a third-party administrator is not competent, trustworthy,
27financially responsible, or of good personal and business
28reputation, the commissioner may order any one or more of the
29sanctions and penalties set out in section 507B.7.
30 Sec. 17. Section 511.24, Code 2021, is amended to read as
31follows:
32511.24 Fees from domestic Domestic and foreign companies —
33 fees.
34When not otherwise provided, a foreign or domestic life
35insurance company doing business in this state shall pay to the
-10-1commissioner of insurance the following fees a fee, established
2by the commissioner by rule, for all of the following:
31. For filing an application to do business, or an
4application to renew a certificate of authority, fifty dollars.
52. For issuing a certificate of authority to do business in
6this state, or for renewing a certificate, fifty dollars.
73. For filing amended articles of incorporation, fifty
8dollars.
94. For issuing an amended certificate of authority,
10twenty-five dollars.
115. For affixing the official seal to any paper filed with
12the division, ten dollars.
13 Sec. 18. Section 512B.24, Code 2021, is amended to read as
14follows:
15512B.24 Reports Annual statement.
16Reports shall be filed in accordance with this section.
171. A society transacting business in this state shall, on or
18before March 1 annually, unless for cause shown the time has
19been extended by the commissioner, shall annually file with the
20commissioner a true statement of its the society’s financial
21condition, transactions, and affairs for the preceding calendar
22year and shall pay a fee of fifty dollars established by the
23commissioner by rule. The statement may be in general form and
24content as approved by the national association of insurance
25commissioners for fraternal benefit societies and shall be
26supplemented by additional information as adopted by rule of
27the commissioner.
282. As part of the a society’s annual statement, a the
29 society shall, on or before March 1, file with the commissioner
30of insurance a valuation of its the society’s certificates
31in force on the last preceding December 31. However, the
32commissioner may, for cause shown, extend the time for filing
33the valuation for not more than two consecutive calendar
34months. The valuation shall be done completed in accordance
35 compliance with the standards specified in section 512B.23.
-11-1The valuation and underlying data shall be certified by a
2qualified actuary or, at the expense of the society, verified
3by the actuary of the department of insurance of the state of
4domicile of the society.
53. A society failing to file the society’s annual statement
6in the form and within the time provided by compliance with
7 this section shall forfeit one hundred dollars for each day
8during which the default continues, and, upon notice by the
9commissioner to that effect, the society’s authority to do
10business in this state shall cease while during the duration of
11 the default continues.
12 Sec. 19. Section 512B.25, Code 2021, is amended to read as
13follows:
14512B.25 Annual license — renewal.
15The authority of a society to transact business in this
16state may be renewed annually. A society’s license terminates
17 to transact business in this state shall terminate on the
18first day of June following the issuance or the renewal of
19the society’s license. A society shall submit annually on
20or before March 1 a completed application for renewal of its
21license. For each license or renewal the society shall pay
22the commissioner a fee of fifty dollars established by the
23commissioner by rule. A society that fails to timely file an
24application for renewal shall pay an administrative penalty
25of five hundred dollars to the treasurer of state for deposit
26as provided in section 505.7 a late fee as established by the
27commissioner by rule. A duly certified copy or duplicate
28of the a society’s license is prima facie evidence that the
29licensee is a fraternal benefit society within the meaning of
30this chapter.
31 Sec. 20. Section 513D.1, Code 2021, is amended by striking
32the section and inserting in lieu thereof the following:
33513D.1 Multiple employer welfare arrangements and association
34health plans.
351. As used in this chapter, unless the context otherwise
-12-1requires:
2a. “Association health plan” or “AHP” means a multiple
3employer welfare arrangement formed as an association health
4plan pursuant to 29 C.F.R. pt.2510.
5b. “Commissioner” means the commissioner of insurance.
6c. “Multiple employer welfare arrangement” or “MEWA” means a
7multiple employer welfare arrangement as defined in section 3
8of the federal Employee Retirement Income Security Act of 1974,
929 U.S.C. §1002, paragraph 40.
102. An AHP or MEWA that offers a plan to, or maintains a
11group health plan for, any resident of this state shall be
12subject to the jurisdiction of the commissioner and shall
13comply with all of the following requirements:
14a. The AHP or MEWA must be administered by an insurer
15authorized to do the business of insurance in this state or
16an authorized third-party administrator that holds a current
17certificate of registration pursuant to section 510.21.
18b. The AHP or MEWA must be established by a trade,
19industry, or professional association of employers that has a
20constitution or bylaws, is organized and maintained in good
21faith, and has membership stability as defined by rules adopted
22by the commissioner.
23c. The AHP or MEWA must register with the commissioner and
24obtain and maintain a certificate of registration issued by the
25commissioner.
26d. The AHP or MEWA shall comply with all rules and solvency
27standards established by rules adopted by the commissioner.
283. An AHP or MEWA that does not meet the solvency standards
29pursuant to subsection 2, paragraph “d”, shall be subject to
30chapter 507C.
314. An AHP or MEWA that meets all of the requirements of
32subsection 2 shall not be considered any of the following:
33a. An insurance company or association of whatever kind or
34character under section 432.1.
35b. A member of the Iowa individual health benefit
-13-1reinsurance association pursuant to section 513C.10, subsection
21.
3c. A member insurer of the Iowa life and health insurance
4guaranty association pursuant to section 508C.5.
55. An AHP or MEWA that is registered with the commissioner
6pursuant to subsection 2, paragraph “c”, shall annually file
7with the commissioner on or before March 1 a copy of the report
8required to be filed by the AHP or MEWA with the United States
9department of labor pursuant to 29 C.F.R. §2520.101-2.
106. An AHP or MEWA that is registered with the commissioner
11pursuant to subsection 2, paragraph “c”, shall annually file
12with the commissioner a report on or before March 1 for the
13preceding calendar year. The annual report shall contain the
14information and be in a form and manner as prescribed by the
15commissioner.
167. A foreign or domestic AHP or MEWA doing business in the
17state shall pay fees as prescribed by the commissioner unless
18otherwise provided by law.
198. A MEWA that is recognized as tax-exempt under Internal
20Revenue Code section 501(c)(9) and that is registered with the
21commissioner prior to January 1, 2018, shall not be considered
22an AHP unless the MEWA affirmatively elects to be treated as
23an AHP.
24 Sec. 21. Section 513D.2, subsection 1, Code 2021, is amended
25to read as follows:
261. The commissioner of insurance shall adopt rules, as
27necessary, pursuant to chapter 17A to administer this chapter.
28 Sec. 22. Section 514G.103, subsection 10, Code 2021, is
29amended to read as follows:
3010. “Independent review entity organization” means a review
31entity organization certified by the commissioner pursuant to
32section 514G.110, subsection 4.
33 Sec. 23. Section 514G.110, subsections 4, 5, 6, 7, 8, and 9,
34Code 2021, are amended to read as follows:
354. Qualifications of independent review entities
-14-1 organizations. The commissioner shall maintain a list of
2qualified independent review entities organizations that are
3certified by the commissioner. Independent review entities
4 organizations shall be recertified by the commissioner every
5two years in order to remain on the list. In order to be
6certified, an independent review entity organization shall meet
7all of the following criteria:
8a. Have on staff, or contract with, a qualified, licensed
9health care professional in an appropriate field for
10determining an insured’s functional or cognitive impairment who
11can conduct an independent review.
12(1) In order to be qualified, a licensed health care
13professional who is a physician shall hold a current
14certification by a recognized American medical specialty
15board in a specialty appropriate for determining an insured’s
16functional or cognitive impairment.
17(2) In order to be qualified, a licensed health care
18professional who is not a physician shall hold a current
19certification in the specialty in which that person is
20licensed, by a recognized American specialty board in a
21specialty appropriate for determining an insured’s functional
22or cognitive impairment.
23b. Ensure that any licensed health care professional who
24conducts an independent review has no history of disciplinary
25actions or sanctions, including but not limited to the loss
26of staff privileges or any participation restrictions taken
27or pending by any hospital or state or federal government
28regulatory agency.
29c. Ensure that the independent review entity organization
30 or any of its employees, agents, or licensed health care
31professionals utilized does not receive compensation of any
32type that is dependent on the outcome of a review.
33d. Ensure that the independent review entity organization
34 or any of its employees, agents, or licensed health care
35professionals utilized are not in any manner related to,
-15-1employed by, or affiliated with the insured or with a person
2who previously provided medical care to the insured.
3e. Ensure that an independent review entity organization
4 or any of its employees, agents, or licensed health care
5professionals utilized is not a subsidiary of, or owned or
6controlled by, an insurer or by a trade association of insurers
7of which the insurer is a member.
8f. Have a quality assurance program on file with the
9commissioner that ensures the timeliness and quality of reviews
10performed, the qualifications and independence of the licensed
11health care professionals who perform the reviews, and the
12confidentiality of the review process.
13g. Have on staff or contract with a licensed health care
14practitioner, as defined in section 514G.103, subsection 3, who
15is qualified to certify that an individual is chronically ill
16for purposes of a qualified long-term care insurance contract.
175. Independent review process. The independent review
18process shall be conducted as follows:
19a. Within three business days of receiving a notice from the
20commissioner of the certification of a request for independent
21review or receipt of a denial of an insurer’s appeal from such
22a certification, the insurer shall do all of the following:
23(1) Select an independent review entity organization from
24the list certified by the commissioner and notify the insured
25in writing of the name, address, and telephone number of the
26selected independent review entity selected organization. The
27selected independent review entity selected organization shall
28utilize a licensed health care professional with qualifications
29appropriate to the benefit trigger determination that is under
30review.
31(2) Notify the independent review entity organization
32 that it has been selected to conduct an independent review
33of a benefit trigger determination and provide sufficient
34descriptive information to enable the independent review entity
35 organization to provide licensed health care professionals who
-16-1will be qualified to conduct the review.
2(3) Provide the commissioner with a copy of the notices sent
3to the insured and to the selected independent review entity
4selected organization.
5b. Within three business days of receiving a notice from
6an insurer that it has been selected to conduct an independent
7review, the independent review entity organization shall do one
8of the following:
9(1) Accept its selection as the independent review entity
10 organization, designate a qualified licensed health care
11professional to perform the independent review, and provide
12notice of that designation to the insured and the insurer,
13including a brief description of the health care professional’s
14qualifications and the reasons that person is qualified to
15determine whether the insured’s benefit trigger has been met.
16A copy of this notice shall be sent to the commissioner via
17facsimile. The independent review entity organization is not
18required to disclose the name of the health care professional
19selected.
20(2) Decline its selection as the independent review entity
21 organization or, if the independent review entity organization
22 does not have a licensed health care professional who is
23qualified to conduct the independent review available, request
24additional time from the commissioner to have a qualified
25licensed health care professional certified, and provide
26notice to the insured, the insurer, and the commissioner.
27The commissioner shall notify the independent review entity
28 organization, the insured, and the insurer of how to proceed
29within three business days of receipt of such notice from the
30independent review entity organization.
31c. An insured may object to the independent review entity
32 organization selected by the insurer or to the licensed
33health care professional designated by the independent review
34entity organization to conduct the review by filing a notice
35of objection along with reasons for the objection, with the
-17-1commissioner within ten days of receipt of a notice sent by the
2independent review entity organization pursuant to paragraph
3“b”. The commissioner shall consider the insured’s objection
4and shall notify the insured, the insurer, and the independent
5review entity organization of the commissioner’s decision to
6sustain or deny the objection within two business days of
7receipt of the objection.
8d. Within five business days of receiving a notice from
9the independent review entity organization accepting its
10selection or within five business days of receiving a denial
11of an objection to the independent review entity organization
12 selected, whichever is later, the insured may submit any
13information or documentation in support of the insured’s claim
14to both the independent review entity organization and the
15insurer.
16e. Within fifteen days of receiving a notice from the
17independent review entity organization accepting its selection
18or within three business days of receipt of a denial of
19an objection to the independent review entity organization
20 selected, whichever is later, an insurer shall do all of the
21following:
22(1) Provide the independent review entity organization
23 with any information submitted to the insurer by the insured
24in support of the insured’s internal appeal of the insurer’s
25benefit trigger determination.
26(2) Provide the independent review entity organization with
27any other relevant documents used by the insurer in making its
28benefit trigger determination.
29(3) Provide the insured and the commissioner with
30confirmation that the information required under subparagraphs
31(1) and (2) has been provided to the independent review entity
32 organization, including the date the information was provided.
33f. The independent review entity organization shall not
34commence its review until fifteen days after the selection of
35the independent review entity organization is final including
-18-1the resolution of any objection made pursuant to paragraph
2“c”. During this time period, the insurer may consider any
3information provided by the insured pursuant to paragraph
4“d” and overturn or affirm the insurer’s benefit trigger
5determination based on such information. If the insurer
6overturns its benefit trigger determination, the independent
7review process shall immediately cease.
8g. In conducting a review, the independent review
9entity organization shall consider only the information
10and documentation provided to the independent review entity
11 organization pursuant to paragraphs “d” and “e”.
12h. The independent review entity organization shall submit
13its decision as soon as possible, but not later than thirty
14days from the date the independent review entity organization
15 receives the information required under paragraphs “d” and “e”,
16whichever is received later. The decision shall include a
17description of the basis for the decision and the date of the
18benefit trigger determination to which the decision relates.
19The independent review entity organization, for good cause,
20may request an extension of time from the commissioner to file
21its decision. A copy of the decision shall be mailed to the
22insured, the insurer, and the commissioner.
23i. All medical records submitted for use by the independent
24review entity organization shall be maintained as confidential
25records as required by applicable state and federal laws. The
26commissioner shall keep all information obtained during the
27independent review process confidential pursuant to section
28505.8, subsection 8, except that the commissioner may share
29some information obtained as provided under section 505.8,
30subsection 8, and as required by this chapter and rules adopted
31pursuant to this chapter.
32j. If an insured dies before completion of the independent
33review, the review shall continue to completion if there
34is potential liability of an insurer to the estate of the
35insured or to a provider for rendering qualified long-term care
-19-1services to the insured.
26. Costs. All reasonable fees and costs of the independent
3review entity incurred organization in conducting an
4independent review under this section shall be paid by the
5insurer.
67. Immunity. An independent review entity organization that
7conducts a review under this section is not liable for damages
8arising from determinations made during the review. Immunity
9does not apply to any act or omission made by an independent
10review entity organization in bad faith or that involves gross
11negligence.
128. Effect of independent review decision.
13a. The review decision by the independent review entity
14 organization conducting the review is binding on the insurer.
15b. The independent review process set forth in this section
16shall not be considered a contested case under chapter 17A.
17c. An insured may appeal the review decision by the
18independent review entity organization conducting the review
19by filing a petition for judicial review in the district court
20in the county in which the insured resides. The petition for
21judicial review shall be filed within fifteen business days
22after the issuance of the review decision by the independent
23review organization. The petition shall name the insured
24as the petitioner and the insurer as the respondent. The
25petitioner shall not name the independent review entity
26 organization as a party. The commissioner shall not be named
27as a respondent unless the insured alleges action or inaction
28by the commissioner under the standards articulated under
29section 17A.19, subsection 10. Allegations made against the
30commissioner under section 17A.19, subsection 10, must be
31stated with particularity. The commissioner may, upon motion,
32intervene in a judicial review proceeding brought pursuant to
33this paragraph. The findings of fact by the independent review
34entity organization conducting the review are conclusive and
35binding on appeal.
-20- 1d. An insurer shall not be subject to any penalties,
2sanctions, or damages for complying in good faith with a review
3decision rendered by an independent review entity organization
4 pursuant to this section.
5e. Nothing contained in this section or in section 514G.109
6shall be construed to limit the right of an insurer to assert
7any rights an insurer may have under a long-term care insurance
8policy related to:
9(1) An insured’s misrepresentation.
10(2) Changes in the insured’s benefit eligibility.
11(3) Terms, conditions, and exclusions contained in the
12policy, other than failure to meet the benefit trigger.
13f. The requirements of this section and section 514G.109 are
14not applicable to a group long-term care insurance policy that
15is governed by the federal Employee Retirement Income Security
16Act of 1974, as codified at 29 U.S.C. §100 §1001 et seq.
17g. The provisions of this section and section 514G.109
18are in lieu of and supersede any other third-party review
19requirement contained in chapter 514J or in any other provision
20of law.
21h. The insured may bring an action in the district court
22in the county in which the insured resides to enforce the
23review decision of the independent review entity organization
24 conducting the review or the decision of the court on appeal.
259. Receipt of notice. Notice required by this section shall
26be deemed received within five days after the date of mailing.
27 Sec. 24. Section 515.147, Code 2021, is amended to read as
28follows:
29515.147 Fees.
30Fees, established by the commissioner of insurance by rule,
31 shall be paid to the commissioner of insurance for deposit as
32provided in section 505.7 as follows for all of the following:
331. For filing an application to do business, including all
34documents submitted in connection with the application, by a
35foreign or domestic company, or for filing an application for
-21-1renewed authority, fifty dollars.
22. For issuing to a foreign or domestic company a
3certificate of authority to do business or a renewed
4certificate of authority, fifty dollars.
53. For filing amended articles of incorporation, fifty
6dollars.
74. For issuing an amended certificate of authority,
8twenty-five dollars.
95. For affixing the official seal to any paper filed with
10the division, ten dollars.
11 Sec. 25. Section 515A.2, subsection 1, Code 2021, is amended
12by adding the following new paragraph:
13 NEW PARAGRAPH. 0a. “Commissioner” means the commissioner
14of insurance.
15 Sec. 26. Section 515A.6, subsection 1, paragraph c, Code
162021, is amended to read as follows:
17c. Licenses issued pursuant to this section shall remain
18in effect for three years unless sooner suspended or revoked
19by the commissioner. The fee for the license fee shall be one
20hundred dollars established by the commissioner by rule.
21 Sec. 27. Section 515A.6, subsection 7, Code 2021, is amended
22to read as follows:
237. Notwithstanding any other provision of the Code law to
24the contrary, the commissioner of insurance shall provide for
25a hearing in a proceeding involving a workers’ compensation
26insurance rate filing by a licensed rating organization
27in accordance with the provisions of this subsection and
28rules promulgated by the commissioner of insurance pursuant
29to chapter 17A. Except as otherwise provided herein, the
30provisions of this subsection shall not be subject to the
31requirements of chapter 17A. The procedures for such hearing
32shall be as follows:
33a. The commissioner shall provide notice of the filing of
34the proposed rates at least thirty days before the effective
35date of the proposed rates by publishing a notice on the
-22-1internet site of the insurance division of the department of
2commerce.
3b. A public hearing shall be held on the proposed rates by
4the commissioner of insurance if within fifteen days of the
5date of publication a workers’ compensation policyholder or an
6established organization with one or more workers’ compensation
7policyholders among its members files a written demand with the
8commissioner of insurance for a hearing on the proposed rates.
9c. The commissioner of insurance shall hold the hearing
10within twenty days after receipt of the written demand for a
11hearing and shall give not less than ten days written notice of
12the time and place of the hearing to the person or association
13filing the demand, to the rating organization, and to any other
14person requesting such notice.
15d. At any such hearing, the rating organization shall
16bear the burden of proof to support the proposed rates by a
17preponderance of the evidence. The person or association
18requesting the hearing, and any other person admitted as a
19party to the proceeding, shall be given the opportunity to
20respond and introduce evidence and arguments on all the issues
21involved.
22e. Within fifteen days after the start of the hearing, the
23commissioner of insurance will shall approve or disapprove
24the proposed rates and specify the reasons therefor. The
25commissioner of insurance may suspend or postpone the effective
26date of the proposed rates pending the hearing and written
27decision thereon.
28f. Judicial review of the decision of the commissioner of
29insurance on such rates may be sought in accordance with the
30provisions of chapter 17A.
31g. Absent a request for a hearing as provided in paragraph
32“b”, the commissioner shall issue an order approving or
33disapproving the proposed rates.
34h. The waiting period for a workers’ compensation insurance
35rate filing shall commence no earlier than the date that notice
-23-1of the insurance rate filing is published.
2 Sec. 28. Section 515A.10, Code 2021, is amended to read as
3follows:
4515A.10 Advisory organizations.
51. Every group, association or other organization of
6insurers, whether located within or outside of this state,
7which assists insurers which make their own filings or rating
8organizations in rate making, by the collection and furnishing
9of loss or expense statistics, or by the submission of
10recommendations, but which does not make filings under this
11chapter, shall be known as an advisory organization.
122. An advisory organization shall not provide a service
13relating to this chapter, and an insurer shall not utilize
14the services of an advisory organization for such purposes
15unless the advisory organization has obtained a license under
16subsection 3.
172. 3. Every An advisory organization applying for a license
18 shall file include with its application to the commissioner all
19of the following:
20a. A copy of its constitution, its articles of agreement
21or association or its certificate of incorporation and of its
22bylaws, rules and regulations governing its activities.
23b. A list of its members.
24c. The name and address of a resident of this state upon
25whom notices or orders of the commissioner or process issued at
26the commissioner’s direction may be served.
27d. An agreement that the commissioner may examine such
28advisory organization in accordance with the provisions of
29section 515A.12.
30e. A fee established by the commissioner by rule.
313. 4. If, after a hearing, the commissioner finds that
32the furnishing of such information or assistance involves an
33advisory organization has engaged in any act or practice which
34is unfair, or unreasonable, or otherwise inconsistent with the
35provisions in violation of this chapter, the commissioner may
-24-1issue a written an order specifying in what respects such act
2or practice is unfair or unreasonable or otherwise inconsistent
3with the provisions of this chapter, and requiring the
4discontinuance of such act or practice advisory organization to
5cease and desist such act or practice. The commissioner may,
6at any time after hearing, revoke or suspend the license of an
7advisory organization which does not comply with this chapter.
84. 5. No insurer which makes its own filings nor any rating
9organization shall support its filings by statistics or adopt
10rate making recommendations, furnished to it by an advisory
11organization which has not complied with this section or with
12an order of the commissioner involving such statistics or
13recommendations issued under subsection 3 4 of this section.
14If the commissioner finds such insurer or rating organization
15to be in violation of this subsection the commissioner may
16issue an order requiring the discontinuance of such violation.
176. A license issued under this section shall remain in
18effect for three years unless sooner suspended or revoked by
19the commissioner.
20 Sec. 29. Section 515D.4, subsection 2, paragraph a, Code
212021, is amended to read as follows:
22a. The named insured or any operator who either resides
23in the same household or customarily operates an automobile
24insured under the policy has that person’s driver’s license
25suspended or revoked during the policy term or, if the policy
26is a renewal, during its term or the one hundred eighty days
27immediately preceding its effective date. any of the following:
28(1) The term of the policy.
29(2) The term of a renewal policy.
30(3) Within one hundred eighty calendar days immediately
31preceding the effective date of a renewal of the policy.
32 Sec. 30. Section 515D.4, subsection 3, Code 2021, is amended
33to read as follows:
343. This section shall not apply to any policy or coverage
35which has been in effect less than sixty calendar days at the
-25-1time notice of cancellation is mailed or delivered by the
2insurer unless it is a renewal policy. This section shall not
3apply to the nonrenewal of a policy.
4 Sec. 31. Section 515D.5, Code 2021, is amended to read as
5follows:
6515D.5 Delivery of notice.
71. a. Notwithstanding the provisions of section 515.129A,
8a notice of cancellation of a policy shall not be effective
9unless mailed or delivered by the insurer to the named insured
10at least thirty calendar days prior to the effective date of
11cancellation, or, where the cancellation is for nonpayment of
12premium notwithstanding the provisions of section 515.129A,
13at least ten calendar days prior to the date of cancellation.
14A post office department certificate of mailing to the named
15insured at the address shown in the policy shall be proof
16of receipt of such mailing. Unless the reason accompanies
17the notice of cancellation, the notice shall state that upon
18written request of the named insured, mailed or delivered to
19the insurer not less than fifteen calendar days prior to the
20date of cancellation, the insurer will state the reason for
21cancellation together with notification of the right to a
22hearing before the commissioner within fifteen calendar days as
23provided in this chapter.
24b. When the reason does not accompany the notice of
25cancellation, the insurer shall, upon receipt of a timely
26request by the named insured, state in writing the reason
27for cancellation. A statement of reason shall be mailed or
28delivered to the named insured within five calendar days after
29receipt of a request.
302. A notice of exclusion of a person under a policy pursuant
31to section 515D.4, is not effective unless written notice
32is mailed or delivered to the named insured at least twenty
33calendar days prior to the effective date of the exclusion.
34The written notice shall state the reason for the exclusion,
35together with notification of the right to a hearing before
-26-1the commissioner pursuant to section 515D.10 within fifteen
2calendar days of receipt or delivery of a statement of reason
3as provided in this section.
4 Sec. 32. Section 515D.6, Code 2021, is amended to read as
5follows:
6515D.6 Prohibited reasons for nonrenewal.
71. No insurer shall refuse to renew a policy solely because
8of age, residence, sex, race, color, creed, or occupation of
9an insured.
102. No insurer shall require a physical examination of a
11policyholder as a condition for renewal solely on the basis of
12age or other arbitrary reason. In the event that an insurer
13requires a physical examination of a policyholder, the burden
14of proof in establishing reasonable and sufficient grounds for
15such requirement shall rest with the insurer and the expenses
16incident to such examination shall be borne by the insurer.
17 Sec. 33. Section 515D.7, Code 2021, is amended to read as
18follows:
19515D.7 Notice of intent.
201. Notwithstanding the provisions of sections 515.125,
21515.128, 515.129B, and 515.129C, an insurer shall not fail to
22renew a policy except by notice to the insured as provided
23in this chapter. A notice of intention not to renew shall
24not be effective unless mailed or delivered by the insurer
25to the named insured at least thirty calendar days prior to
26the expiration date of the policy. A post office department
27certificate of mailing to the named insured at the address
28shown in the policy shall be proof of receipt of such mailing.
29Unless the reason accompanies the notice of intent not to
30renew, the notice shall state that, upon written request of
31the named insured, mailed or delivered to the insurer not less
32than thirty calendar days prior to the expiration date of the
33policy, the insurer will state the reason for nonrenewal.
342. When the reason does not accompany the notice of intent
35not to renew, the insurer shall, upon receipt of a timely
-27-1request by the named insured, state in writing the reason
2for nonrenewal, together with notification of the right to a
3hearing before the commissioner within fifteen calendar days
4as provided herein. A statement of reason shall be mailed or
5delivered to the named insured within ten days after receipt
6of a request.
73. This section shall not apply:
8a. If the insurer has manifested its willingness to renew.
9b. If the insured fails to pay any premium due or any
10advance premium required by the insurer for renewal.
11c. If the insured is transferred from an insurer to
12an affiliate for future coverage as a result of a merger,
13acquisition, or company restructuring and if the transfer
14results in the same or broader coverage.
15 Sec. 34. Section 515D.10, Code 2021, is amended to read as
16follows:
17515D.10 Hearing before commissioner.
18Any named insured who has received a statement of reason
19for cancellation, or of reason for an insurer’s intent not
20to renew a policy, may, within fifteen calendar days of the
21receipt or delivery of a statement of reason, request a hearing
22before the commissioner of insurance. The purpose of this
23hearing shall be limited to establishing the existence of the
24proof or evidence used stated by the insurer in as its reason
25for cancellation or intent not to renew. The burden of proof
26of the reason for cancellation or intent not to renew shall
27be upon the insurer. Other than the sharing of information
28required by this chapter and the rules adopted pursuant to
29the provisions of this chapter, the commissioner shall keep
30confidential the information obtained from the insured or in
31the hearing process, pursuant to section 505.8, subsection 8.
32The commissioner of insurance shall adopt rules for carrying
33out pursuant to chapter 17A to implement the provisions of this
34section.
35 Sec. 35. Section 515F.2, Code 2021, is amended by adding the
-28-1following new unnumbered paragraph:
2 NEW UNNUMBERED PARAGRAPH. As used in this chapter, unless
3the context otherwise requires:
4 Sec. 36. Section 515F.2, Code 2021, is amended by adding the
5following new subsection:
6 NEW SUBSECTION. 2A. “Commissioner” means the commissioner
7of insurance.
8 Sec. 37. Section 515F.8, subsection 3, paragraph a, Code
92021, is amended by adding the following new subparagraph:
10 NEW SUBPARAGRAPH. (7) A license fee as established by the
11commissioner by rule.
12 Sec. 38. Section 515F.8, subsection 3, paragraph d, Code
132021, is amended to read as follows:
14d. Duration. A license issued under this section shall
15remain in effect for one year three years unless the license
16is suspended or revoked. The commissioner may, at any time
17after hearing, revoke or suspend the license of an advisory
18organization which does not comply with the requirements and
19standards of this chapter.
20 Sec. 39. Section 515F.32, Code 2021, is amended by adding
21the following new unnumbered paragraph:
22 NEW UNNUMBERED PARAGRAPH. As used in this subchapter,
23unless the context otherwise requires:
24 Sec. 40. Section 515F.32, subsection 3, Code 2021, is
25amended to read as follows:
263. “Insurer” includes all companies or associations licensed
27to transact insurance business in this state under chapters
28515, 518, and 518A, reciprocal insurers issued a certificate
29of authority pursuant to chapter 520, and companies or
30associations admitted or seeking to be admitted to do business
31in this state under any of those chapters, notwithstanding any
32provision of the Code to the contrary.
33 Sec. 41. Section 515F.36, subsection 2, paragraph a,
34subparagraphs (1) and (2), Code 2021, are amended to read as
35follows:
-29- 1(1) American property casualty insurance association.
2(2) Property casualty insurers association of America
3 National association of mutual insurance companies.
4 Sec. 42. NEW SECTION. 515F.39 Cancellation or nonrenewal
5— FAIR notice.
6If basic property insurance coverage is canceled or not
7renewed other than for nonpayment of a premium pursuant to
8section 515.125, 515.126, 515.127, 515.128, 518.23, or 518A.29,
9the insurer shall notify the named insured that the named
10insured may be eligible for basic property insurance through
11the FAIR plan. The notice shall accompany the notice of
12cancellation or the intent not to renew.
13 Sec. 43. Section 515I.4, subsection 1, paragraph a, Code
142021, is amended to read as follows:
15a. Capital and surplus or its equivalent under the laws of
16the insurer’s domiciliary jurisdiction which equals the greater
17of either greatest of the following:
18(1) The minimum capital and surplus requirements under the
19laws of this state.
20(2) Fifteen million dollars.
21(3) The risk-based capital level requirements pursuant to
22chapter 521E.
23 Sec. 44. Section 520.12, subsection 2, Code 2021, is amended
24to read as follows:
252. A reciprocal or interinsurance insurer shall submit
26annually, on or before March 1, a completed application for
27renewal of the insurer’s certificate of authority. An insurer
28that fails to timely file an application for renewal shall pay
29an administrative fee of five hundred dollars to the treasurer
30of state for deposit as provided in section 505.7 to the
31commissioner of insurance as established by the commissioner of
32insurance by rule.
33 Sec. 45. Section 521.18, Code 2021, is amended to read as
34follows:
35521.18 Articles of merger or consolidation — filing fees
-30-1and approval.
2A company filing a plan to merge or consolidate under the
3provisions of this chapter shall file its articles of merger
4or consolidation with the commission for its approval. The
5fee for filing articles of merger or consolidation with
6the commission is fifty dollars shall be established by the
7commissioner by rule.
8 Sec. 46. Section 522.9, subsection 1, Code 2021, is amended
9to read as follows:
101. If an insurer fails, without just cause, to file an
11own risk and solvency assessment summary report by the filing
12date stipulated to the commissioner pursuant to section 522.5,
13subsection 1, paragraph “c”, the commissioner shall, after
14notice and hearing, impose a penalty of five hundred dollars
15for each calendar day after the stipulated date that the
16summary report is not filed. The penalties shall be collected
17by the commissioner and deposited in the general fund of the
18state pursuant to section 505.7. The maximum penalty which may
19be imposed under this section is fifty thousand dollars.
20 Sec. 47. Section 522A.5, Code 2021, is amended to read as
21follows:
22522A.5 Fees Counter employee — license fee.
23The fee for a counter employee license shall be fifty dollars
24per counter employee established by the commissioner by rule.
25In no case shall any combined fees exceed one thousand dollars
26in any calendar year for any one rental company or limited
27license or licensee or renewal license. The fees collected
28under this section shall be deposited as provided in section
29505.7.
30 Sec. 48. Section 522B.5, subsection 1, paragraph c, Code
312021, is amended to read as follows:
32c. The individual has paid the license fee of fifty dollars
33 established by the commissioner by rule.
34 Sec. 49. Section 522E.4, subsection 1, paragraph c, Code
352021, is amended to read as follows:
-31- 1c. An application fee of the lesser of fifty dollars per
2each endorsee at a location of the vendor or five hundred
3dollars per location valid for a three-year period and, for
4each three-year period thereafter, a renewal fee in the same
5amount. A maximum fee of five thousand dollars shall apply
6for licensure of a portable electronics vendor with multiple
7locations established by the commissioner by rule. The fees
8collected shall be deposited as provided in section 505.7.
9DIVISION III
10CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SALES
11 Sec. 50. Section 523A.204, subsections 1 and 2, Code 2021,
12are amended to read as follows:
131. A preneed seller shall file an annual report with the
14commissioner not later than April 1 of each year an annual
15report 15 on a form prescribed by the commissioner.
162. A preneed seller filing an annual report shall pay a
17filing fee of ten dollars established by the commissioner by
18rule per purchase agreement sold during the year covered by
19the report. Duplicate filing fees are not required for the
20same purchase agreement. If a purchase agreement has multiple
21sellers, the filing fee shall be paid by the preneed seller
22actually providing the merchandise and services.
23 Sec. 51. Section 523A.204, Code 2021, is amended by adding
24the following new subsection:
25 NEW SUBSECTION. 4. The commissioner may impose a late
26fee, established by the commissioner by rule, for each day
27after April 15 that a preneed seller fails to file the preneed
28seller’s annual report. The maximum late fee that may be
29imposed under this subsection is five hundred dollars. The fee
30shall be collected by the commissioner and deposited pursuant
31to section 505.7.
32 Sec. 52. Section 523A.501, subsections 7 and 8, Code 2021,
33are amended to read as follows:
347. A preneed seller’s license expires shall expire annually
35on April 15 30. If the a preneed seller has filed a complete
-32-1 an annual report pursuant to section 523A.204, subsection 1,
2 and paid the required fees as required in section 523A.204, the
3commissioner shall renew the preneed seller’s license until
4April 15 30 of the following year.
58. The commissioner may by rule create or accept a
6multijurisdiction preneed seller’s license. If the preneed
7seller’s license is issued by another jurisdiction, the rules
8shall require the filing of an application or notice form and
9payment of the applicable filing fee of fifty dollars for an
10application established by the commissioner by rule. The
11application or notice form utilized and the effective dates and
12terms of the license may vary from the provisions set forth in
13this section.
14 Sec. 53. Section 523A.502, subsection 5, Code 2021, is
15amended to read as follows:
165. A sales license shall expire annually on April 15 30. If
17the a sales agent has filed a substantially complete an annual
18report as required in pursuant to section 523A.502A, subsection
191, and has fulfilled the continuing education requirements
20pursuant to subsection 6, the commissioner shall renew the
21sales agent’s sales license until April 15 30 of the following
22year.
23 Sec. 54. Section 523A.502A, subsection 1, Code 2021, is
24amended to read as follows:
251. A No later than April 15, a sales agent shall file an
26annual report with the commissioner not later than April 1
27of each year an annual report on a form prescribed by the
28commissioner describing each purchase agreement sold by the
29sales agent during the year. An annual report must be filed
30whether or not sales were made a sales agent sold any purchase
31agreements during the year and even if the whether or not a
32 sales agent is no longer still an agent of a preneed seller or
33is still licensed by the commissioner.
34 Sec. 55. Section 523A.502A, Code 2021, is amended by adding
35the following new subsection:
-33-1 NEW SUBSECTION. 3. The commissioner may impose a late fee,
2established by the commissioner by rule, for each day after
3April 15 that a sales agent fails to file the sales agent’s
4annual report. The maximum late fee that may be imposed
5pursuant to this section is five hundred dollars. The fee
6shall be collected by the commissioner and deposited pursuant
7to section 505.7.
8 Sec. 56. Section 523A.601, subsection 4, Code 2021, is
9amended by striking the subsection and inserting in lieu
10thereof the following:
114. All purchase agreements, including a purchase agreement
12delivered or executed by electronic means, must have a sales
13agent identified. A purchase agreement, including a purchase
14agreement delivered or executed by electronic means, shall
15be reviewed by the sales agent identified and named in the
16purchase agreement pursuant to subsection 1, paragraph “a”, and
17signed by the purchaser and seller. If the purchase agreement
18is for mortuary science services as “mortuary science” is
19defined in section 156.1, the purchase agreement must also be
20signed by a person licensed to deliver funeral services.
21 Sec. 57. Section 523A.807, subsection 3, unnumbered
22paragraph 1, Code 2021, is amended to read as follows:
23If the commissioner finds that a person has violated section
24523A.201, 523A.202, 523A.203, 523A.204, 523A.207, 523A.401,
25523A.402, 523A.403, 523A.404, 523A.405, 523A.501, or 523A.502,
26or 523A.502A, or any rule adopted pursuant thereto, the
27commissioner may order any or all of the following:
28 Sec. 58. Section 523A.812, Code 2021, is amended to read as
29follows:
30523A.812 Insurance division regulatory fund.
31The insurance division may authorize the creation of a
32special revenue fund in the state treasury, to be known as the
33insurance division regulatory fund. The commissioner shall
34allocate annually from the filing fees paid pursuant to section
35523A.204, two dollars an amount established by the commissioner
-34-1by rule for each purchase agreement reported on a preneed
2seller’s annual report filed pursuant to section 523A.204 for
3deposit to the regulatory fund. The remainder of the fees
4collected pursuant to section 523A.204 shall be deposited
5as provided in section 505.7. The commissioner shall also
6allocate annually the examination fees paid pursuant to section
7523A.814 and any examination expense reimbursement for deposit
8to the regulatory fund. The moneys in the regulatory fund
9shall be retained in the fund. The moneys are appropriated
10and, subject to authorization by the commissioner, may be used
11to pay examiners, examination expenses, investigative expenses,
12the expenses of mediation ordered by the commissioner, consumer
13education expenses, the expenses of a toll-free telephone
14line to receive consumer complaints, and the expenses of
15receiverships established under section 523A.811. If the
16commissioner determines that funding is not otherwise available
17to reimburse the expenses of a person who receives title
18to a cemetery subject to chapter 523I, pursuant to such
19a receivership, the commissioner shall use moneys in the
20regulatory fund as necessary to preserve, protect, restore,
21and maintain the physical integrity of that cemetery and to
22satisfy claims or demands for cemetery merchandise, funeral
23merchandise, and funeral services based on purchase agreements
24which the commissioner determines are just and outstanding.
25An annual allocation to the regulatory fund shall not be
26imposed if the current balance of the fund exceeds five hundred
27thousand dollars.
28 Sec. 59. Section 523A.814, Code 2021, is amended to read as
29follows:
30523A.814 Examination fee.
31In addition to the filing fee paid pursuant to section
32523A.204, subsection 2, a seller filing an annual report
33shall pay an examination fee in the amount of five dollars
34 established by the commissioner by rule for each purchase
35agreement subject to a filing fee that is sold between July 1,
-35-12005, and December 31, 2007, and in the amount of ten dollars
2for each purchase agreement subject to a filing fee that is
3sold after December 31, 2007.
4DIVISION IV
5RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS
6 Sec. 60. Section 523C.3, subsection 2, Code 2021, is amended
7to read as follows:
82. The application shall be accompanied by all of the
9following:
10a. A license fee in the amount of five hundred dollars
11 established by the commissioner by rule.
12b. If applicable, a fee in the amount of fifty dollars
13 established by the commissioner by rule for each motor vehicle
14service contract form submitted in an application as provided
15in subsection 1, paragraph “f”.
16 Sec. 61. Section 523C.4, subsection 3, paragraphs a, b, and
17c, Code 2021, are amended to read as follows:
18a. A license renewal fee in the amount of five hundred
19dollars established by the commissioner by rule.
20b. If applicable, a fee in the amount of three percent
21 percentage established by the commissioner by rule of the
22aggregate amount of payments the licensee received for the sale
23or issuance of residential service contracts in this state
24during the preceding fiscal year, provided that such fee shall
25be no less than one hundred dollars and no greater than fifty
26thousand dollars.
27c. If applicable, a fee in the amount of fifty dollars
28 established by the commissioner by rule for each motor
29vehicle service contract form submitted in a with the renewal
30application pursuant to subsection 2, and as provided in
31section 523C.3, subsection 1, paragraph “f”.
32 Sec. 62. Section 523C.24, subsection 2, Code 2021, is
33amended to read as follows:
342. The commissioner shall deposit in the service company
35oversight fund an amount equal to one-third of all licensing,
-36-1examination, renewal, and inspection fees collected under this
2chapter, provided that the maximum amount of fees deposited
3in the fund each fiscal year shall not exceed five hundred
4thousand dollars an amount established by the commissioner by
5rule. Any remaining fees collected under this chapter and
6not deposited in the service company oversight fund shall be
7deposited as provided in section 505.7.
8DIVISION V
9RETIREMENT FACILITIES
10 Sec. 63. Section 523D.2A, unnumbered paragraph 1, Code
112021, is amended to read as follows:
12On or before March 1 of each year, a provider shall
13file a certification with the commissioner in a manner and
14according to in compliance with requirements established by the
15commissioner by rule. The certification shall be accompanied
16by a one hundred dollar administrative fee which fee in an
17amount established by the commissioner by rule and shall be
18deposited as provided in section 505.7. The certification
19shall attest that according to the best knowledge and belief of
20the attesting party, the facility administered by the provider
21is in compliance with the provisions of this chapter, including
22rules adopted by the commissioner or and orders issued by the
23commissioner as authorized under this chapter. The attesting
24person may be any of the following:
25DIVISION VI
26IOWA CEMETERY ACT
27 Sec. 64. Section 523I.102, subsection 6, Code 2021, is
28amended by adding the following new paragraph:
29 NEW PARAGRAPH. d. A cemetery under the jurisdiction and
30control of a cemetery commission pursuant to section 331.325,
31subsection 3, paragraph “c”.
32 Sec. 65. Section 523I.213, Code 2021, is amended to read as
33follows:
34523I.213 Insurance division’s enforcement fund.
35A special revenue fund in the state treasury, to be known as
-37-1the insurance division’s enforcement fund, is created under the
2authority of the commissioner. The commissioner shall allocate
3annually from the examination fees paid pursuant to section
4523I.808, an amount not exceeding fifty thousand dollars, for
5 deposit to all examination fees collected pursuant to section
6523I.808 in the insurance division’s enforcement fund. The
7moneys in the enforcement fund shall be retained in the fund.
8The moneys are appropriated and, subject to authorization by
9the commissioner, shall be used to pay examiners, examination
10expenses, investigative expenses, the expenses of consumer
11education, compliance, and education programs for filers and
12other regulated persons, and educational or compliance program
13materials, the expenses of a toll-free telephone line for
14consumer complaints, and the expenses of receiverships of
15perpetual care cemeteries established under section 523I.212.
16 Sec. 66. Section 523I.301, subsections 1 and 2, Code 2021,
17are amended to read as follows:
181. A cemetery shall disclose, prior to the sale of interment
19rights, whether opening and closing of the interment space is
20 services are included in the purchase of the interment rights.
21If opening and closing services are not included in the sale of
22interment rights and the cemetery offers opening and closing
23services, the cemetery must disclose that the price for this
24service opening and closing services is subject to change
25and must disclose the current prices for opening and closing
26services provided by the cemetery.
272. The cemetery shall fully disclose all fees required for
28interment, entombment, or inurnment, or disinterment of human
29remains.
30 Sec. 67. Section 523I.309, subsection 6, Code 2021, is
31amended to read as follows:
326. A cemetery may shall disinter and relocate remains
33interred in the cemetery for the purpose of correcting an error
34made by the cemetery after obtaining a disinterment permit
35as required by section 144.34, unless the interested parties
-38-1have a written agreement directing otherwise. The cemetery
2shall bear the costs of the disinterment and relocation. The
3cemetery shall provide written notice describing the error
4to the commissioner and to the person who has the right to
5control the interment, relocation, or disinterment of the
6remains erroneously interred, by restricted certified mail at
7the person’s last known address and sixty days prior to the
8disinterment. The notice shall include the location where the
9disinterment will occur and the location of the new interment
10space. A cemetery is not civilly or criminally liable for an
11erroneously made interment that is corrected in compliance
12with this subsection unless the error was the result of gross
13negligence or intentional misconduct.
14 Sec. 68. Section 523I.808, Code 2021, is amended to read as
15follows:
16523I.808 Examination Annual report — examination fee.
17An examination fee, established by the commissioner by rule,
18for each certificate of internment rights issued during the
19time period covered by the report shall be submitted with the a
20perpetual care cemetery’s annual report in an amount equal to
21five dollars for each certificate of interment rights issued
22during the time period covered by the report filed pursuant to
23section 523I.813. The cemetery may charge the examination fee
24directly to the purchaser of the interment rights.
25 Sec. 69. Section 523I.813, subsection 3, Code 2021, is
26amended by striking the subsection and inserting in lieu
27thereof the following:
283. The commissioner may assess a late fee, established
29by the commissioner by rule, for each day after the date on
30which a perpetual care cemetery’s annual report is due that the
31perpetual care cemetery fails to file the report. The late fee
32shall be collected by the commissioner and deposited pursuant
33to section 505.7.
34DIVISION VII
35STATE INNOVATION WAIVER
-39-1 Sec. 70. NEW SECTION. 505.18A State innovation waivers.
21. The commissioner of insurance may develop by rule
3a state innovation waiver pursuant to section 1332 of the
4federal Patient Protection and Affordable Care Act, Pub.L. No.
5111-148.
62. The commissioner of insurance may submit an application
7on behalf of the state to the United States secretary of health
8and human services and the United States secretary of the
9treasury for the state innovation waiver developed pursuant to
10subsection 1.
113. If a state innovation waiver submitted pursuant to
12subsection 2 is approved by the United States secretary of
13health and human services and the United States secretary of
14the treasury, the commissioner of insurance may implement the
15state innovation waiver in a manner consistent with applicable
16state and federal law.
174. The commissioner of insurance may adopt emergency
18rules under section 17A.4, subsection 3, and section 17A.5,
19subsection 2, paragraph “b”, to implement the provisions of
20this section and the rules shall be effective immediately upon
21filing unless a later date is specified in the rules. Any
22rules adopted in accordance with this section shall also be
23published as a notice of intended action as provided in section
2417A.4.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
28This bill relates to various matters under the purview of the
29insurance division of the department of commerce. The bill is
30organized into seven divisions.
31DIVISION I — UNIFORM SECURITIES. Code section 502.304A
32(expedited registration by filing for small issuers) is amended
33to provide that an issuer, and a person registering as an
34agent of the issuer, must pay the administrator a registration
35fee established by the administrator, rather than the set
-40-1fee amounts of $100 (issuer) and $10 (person registering as
2an agent) required by current law. Code section 502.321G
3(fees) is amended to change the nonrefundable fee for a
4registration statement filed by an offeror from $250 to an
5amount established by the administrator.
6Code section 502.410 (filing fees) is amended to change
7the broker-dealer filing fee for an application or renewal
8registration from $200 to an amount established by the
9administrator. In addition, the filing fee for registration
10or renewal as an agent is amended from $40 to an amount
11established by the administrator. Of the agent registration
12fees collected, 25 percent are appropriated to the securities
13investor education and financial literacy training fund.
14Current law provides that $10 of every $40 fee collected
15goes to the fund. The filing fee for an investment adviser
16application or renewal registration is amended from $100 to
17an amount established by the administrator. The bill also
18amends the filing fees for an investment adviser representative
19application, renewal registration, and change of registration
20from $30 to an amount established by the administrator. A
21federal covered investment adviser must pay an initial fee
22and an annual notice fee in an amount established by the
23administrator, rather than the $100 fee required under current
24law.
25DIVISION II — INSURANCE. The bill amends Code section
26505.30 (service of process on the commissioner) to specify
27that the commissioner of insurance (commissioner) may set a
28reasonable fee for service made on the commissioner.
29The bill amends Code section 507A.4 (transactions where law
30not applicable) and provides that Code chapter 507A does not
31apply to a multiple employer welfare arrangement (MEWA) or a
32MEWA formed as an association health plan (AHP) that meets the
33requirements of Code chapter 513D. The bill strikes current
34Code section 513D.1 (association health plans) and replaces it
35with new provisions which detail the requirements for MEWAs and
-41-1AHPs that offer a plan to, or that maintain a group health plan
2for, any resident of Iowa. “AHP” and “MEWA” are defined in the
3bill.
4The bill details the requirements of the annual filings with
5the commissioner required of registered AHPs and MEWAs. The
6bill provides that a MEWA that is recognized as tax-exempt
7under Internal Revenue Code section 501(c)(9), and that is
8registered with the commissioner prior to January 1, 2018,
9shall not be considered an AHP unless the MEWA affirmatively
10elects to be treated as an AHP. The bill makes conforming
11changes to Code section 513D.2 (rules and enforcement).
12Code section 507B.7 (cease and desist orders) is amended
13to provide that a person who violates any order of the
14commissioner, rather than just a cease and desist order as is
15in current law, may, after notice and hearing be subject to a
16monetary penalty and suspension or revocation of the person’s
17license.
18The bill broadens the definition of “insurer” in Code
19section 507E.2A (definitions) to include any corporation,
20association, partnership, or individual engaged in the business
21of insurance, including but not limited to a corporation,
22association, partnership, or individual that issues a policy
23of workers’ compensation, a self-insured business for purposes
24of workers’ compensation liability, or a group or self-insured
25plan. The bill specifically excludes a person required to be
26licensed to sell, solicit, or negotiate insurance pursuant to
27Code chapter 522B from the definition.
28Code section 507E.8 (law enforcement authority) is amended
29by the bill to specify that an individual who is employed by
30the insurance division and is designated as a peace officer
31shall be considered a law enforcement officer and shall
32exercise the powers of a law enforcement officer as detailed
33in the bill.
34The bill amends Code section 508E.3 (license requirements)to
35change the application and renewal fees for a viatical
-42-1settlement provider and a viatical settlement broker from $100
2to an amount established by the administrator.
3Code section 509A.15 (certification of self-insurance plans
4— exemption) is amended to change the filing fee for the end
5of fiscal year filing of a governing body of a self-insurance
6plan of a political subdivision or a school corporation from
7$100 to an amount established by the commissioner. The current
8$15 per day penalty for late filings is changed to a late fee
9established by the commissioner.
10The bill makes conforming changes to Code section 510.21
11(certificate of registration) and also requires that an
12application for registration as a third-party administrator be
13accompanied by a filing fee as established by the commissioner.
14Current law does not require submission of a filing fee.
15The bill strikes and replaces Code section 510.23 (unfair
16competition or unfair and deceptive acts or practices
17prohibited) and makes third-party administrators that violate
18Code chapter 507B or 510 subject to the sanctions and penalties
19set out in Code section 507B.7. Third-party administrators are
20subject to Code chapter 507B under current law.
21Code section 511.24 (fees from domestic and foreign
22companies) is amended to change specific dollar amounts for
23certain filing fees for foreign or domestic life insurance
24companies to fee amounts determined by the commissioner.
25The bill makes conforming changes to Code section 512B.24
26(reports) and requires that the annual filing by fraternal
27benefit societies be accompanied by a fee established by the
28commissioner, rather than $50 as required by current law.
29The bill makes conforming changes to Code section 512B.25
30(annual license — renewal) and requires that for each license
31or renewal application a fraternal benefit society submit a fee
32established by the commissioner, rather than $50 as required by
33current law. The bill also changes the current administrative
34penalty of $500 for a late renewal filing to a late fee as
35established by the commissioner.
-43- 1The bill makes conforming changes to Code chapter 514G
2(long-term care insurance) and amends the Code chapter
3to change the terminology throughout the Code chapter
4from “independent review entity” to “independent review
5organization”.
6Code section 515.147 (fees) is amended to change filing
7fees for certain filings from specific dollar amounts to fees
8determined by the commissioner. The bill makes conforming
9changes to and amends Code section 515A.10 to provide more
10specific requirements related to licensing requirements, fees,
11and penalties for advisory organizations.
12The bill amends Code section 515F.8 (licensing advisory
13organizations) to require licensing advisory organizations
14to submit a fee, determined by the commissioner, with their
15application for a license, and makes the license effective for
16three years, rather than the one year under current law.
17Code section 515F.32 is amended to add reciprocal insurers
18to the definition of “insurer”. Code section 515F.36 is
19amended to change the makeup of the membership of the governing
20committee that administers the FAIR plan. The bill creates a
21new requirement that if basic property insurance coverage is
22canceled or not renewed other than for nonpayment of a premium
23pursuant to Code section 515.125, 515.126, 515.127, 515.128,
24518.23, or 518A.29, the insurer must notify the named insured
25that they may be eligible for basic property insurance through
26the FAIR plan, and the notice must accompany the notice of
27cancellation or the intent not to renew.
28The bill amends Code section 515I.4 (requirements for
29eligible surplus lines insurers) to allow a nonadmitted
30insurer seeking to qualify as an eligible surplus line insurer
31the option of demonstrating that the nonadmitted insurer
32has capital and surplus under the laws of the nonadmitted
33insurer’s domiciliary that equal the risk-based capital level
34requirements required by Iowa law. Current law requires the
35nonadmitted insurer to demonstrate that the nonadmitted insurer
-44-1has capital and surplus under the laws of the nonadmitted
2insurer’s domiciliary that equal the greater of the minimum
3capital and surplus required under the laws of this state, or
4$15 million.
5Code section 520.12 (certificate of authority — renewal —
6penalties) is amended to change the annual renewal fee for a
7reciprocal or interinsurance insurer from $500 to be submitted
8to the treasurer of state, to an administrative fee as
9established by the commissioner to be paid to the commissioner.
10The bill amends Code section 521.18 (articles of merger
11or consolidation) to change the fee for specific companies
12to file a plan to merge or consolidate from $50 to an amount
13established by the commissioner.
14Code section 522.9 (penalties) is amended to allow the
15commissioner to deposit penalties that have been collected due
16to insurers’ failure to file a timely own risk and solvency
17assessment summary report pursuant to Code section 505.7.
18Current law requires the commissioner to deposit the penalties
19into the general fund of the state.
20Code section 522A.5 (counter employee — license fee) is
21amended to change the license fee for a counter employee from
22$50 to an amount established by the commissioner, and removes
23the cap of $1,000 per calendar year for all combined fees paid
24by any one rental company.
25The bill amends Code section 522B.5 (application for
26license) to change the application fee for a resident insurance
27producer license from $50 to an amount established by the
28commissioner.
29Code section 522E.4 (application and fees) is amended to
30change the application fee for a portable electronics insurance
31license from a variable dollar amount to an amount established
32by the commissioner. The bill also removes the $5,000 cap
33on the total application fees that can be charged for the
34licensure of a portable electronics vendor with multiple
35locations.
-45- 1The bill makes conforming changes to Code sections 508E.2
2(definitions), 509.1(9) (form of policy), 509.19(2) (claims
3and premium disclosures), 515A.2 (definitions), 515A.6
4(rating organizations), 515A.10 (advisory organizations),
5515D.4 (notice of cancellation — reasons), 515D.5 (delivery
6of notice), 515D.6 (prohibited reasons), 515D.7 (notice of
7intent), 515D.10 (hearing before commissioner), and 515F.2
8(definitions).
9DIVISION III — CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL
10SALES. The bill amends Code section 523A.204 (preneed seller
11annual reporting requirements) to require preneed sellers to
12file an annual report by April 15 rather than the current date
13of April 1. The bill changes the filing fee for the report
14from $10 to an amount established by the commissioner. The
15bill allows the commissioner to impose a late fee for each
16day the report is late, up to a maximum of $500. The fee is
17to be collected by the commissioner and deposited pursuant to
18Code section 505.7. Code section 523A.501 (preneed sellers —
19licenses) is amended to specify that preneed sellers’ licenses
20expire annually on April 30, rather than the current expiration
21date of April 15. The bill changes the filing fee for a
22multijurisdictional preneed seller’s license that is issued by
23another jurisdiction from $50 to an amount established by the
24commissioner.
25The bill amends Code section 523A.502 (sales agents —
26licenses) to specify that sales agents’ licenses expire
27annually on April 30, rather than the current expiration date
28of April 15, and an agent must have fulfilled continuing
29education requirements to qualify for renewal. Code section
30523A.502A (sales agent annual reporting requirements) is
31amended to require sales agents to file an annual report by
32April 15, rather than the current date of April 1. The bill
33allows the commissioner to impose a late fee for each day that
34the annual 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.
2The bill strikes and replaces Code section 523A.601
3(disclosures) and requires that all purchase agreements,
4including those delivered or executed by electronic means,
5identify a sales agent. Purchase agreements must also be
6reviewed by the sales agent and signed by the purchaser and
7seller. If a purchase agreement is for mortuary science
8services, the purchase agreement must also be signed by a
9person licensed to deliver funeral services.
10The bill amends Code section 523A.812 (insurance division
11regulatory fund) to allocate an amount established by the
12commissioner to the regulatory fund from the filing fees for
13each purchase agreement reported on a preneed seller’s annual
14report. Current law requires the commissioner to allocate
15$2 from each filing fee to the regulatory fund. The bill
16also removes the prohibition on an annual allocation to the
17regulatory fund if the current balance exceeds $500,000.
18Code section 523A.814 (examination fee) is amended to change
19the examination fee for a seller’s annual report from $5,
20or other set dollar amount, to an amount established by the
21commissioner.
22The bill makes conforming changes to Code section 523A.807
23(prosecutions for violations of law).
24DIVISION IV — RESIDENTIAL AND MOTOR VEHICLE SERVICE
25CONTRACTS. Code section 523C.3 (application for license)
26is amended to change the $500 fee for an application for
27a service company license to a fee established by the
28commissioner. The current fee of $50 for each motor vehicle
29service contract form submitted with an application is also
30changed to a fee as established by the commissioner. Code
31section 523C.4 (license expiration and renewal) is amended to
32change the license renewal fee of $500 to a fee established
33by the commissioner. The bill amends the fee, based on the
34aggregate amount of payments a licensee received for the sale
35or issuance of residential service contracts in this state
-47-1during the preceding fiscal year, from 3 percent per contract
2to a percentage established by the commissioner by rule, and
3also removes the minimum and maximum dollar amount of fees
4that a licensee is required to submit. In addition, the bill
5amends the fee for each motor vehicle service contract form
6submitted with an application from $50 to a fee established by
7the commissioner.
8Code section 523C.24 (service company oversight fund) is
9amended to allow the commissioner to establish the amount
10deposited in the service company oversight fund from all
11licensing, examination, renewal, and inspection fees collected
12under Code chapter 523C. The bill also removes the current
13$500,000 maximum cap on fees that may be deposited in the fund
14each fiscal year.
15DIVISION V — RETIREMENT FACILITIES. Code section 523D.2A
16is amended to change the administrative fee submitted by a
17provider with its certification filing from $100 to an amount
18established by the commissioner.
19DIVISION VI — IOWA CEMETERY ACT. Code section 523I.102
20(definitions) is amended to exclude specific cemeteries, under
21the jurisdiction and control of a cemetery commission that
22has jurisdiction and control over pioneer cemeteries, from
23the definition of “cemetery” for purposes of Code chapter
24523I. Code section 523I.213 (insurance division’s enforcement
25fund) is amended to remove the cap on the allocation to the
26insurance division’s enforcement fund of examination fees paid
27by perpetual cemeteries with their annual report. The bill
28requires the commissioner to deposit all of the examination
29fees in the enforcement fund.
30Code section 523I.301 (disclosure requirements — prices
31and fees) is amended to require cemeteries to disclose, prior
32to the sale of interment rights, whether opening and closing
33services are included in the purchase price. The bill also
34requires cemeteries to disclose all fees associated with
35disinterment services.
-48- 1Code section 523I.309 (interment, relocation, or
2disinterment of remains) is amended to require cemeteries
3to disinter and relocate remains interred in a cemetery for
4the purpose of correcting an error made by the cemetery,
5unless the interested parties have a written agreement
6directing otherwise. The cemetery must bear all costs of the
7disinterment and relocation. Current law permits, but does not
8require, a cemetery to disinter and relocate such remains, and
9the cemetery is not required to bear the cost of disinterment
10and relocation.
11The bill amends Code section 523I.808 (examination fee) to
12require an examination fee, established by the commissioner,
13for each certificate of interment rights issued during the
14period covered by a perpetual care cemetery’s annual report.
15Under current law, the fee is $5 per certificate.
16The bill amends Code section 523I.813 (annual report by
17perpetual care cemeteries) to allow, rather than to require,
18the commissioner to impose a late penalty on a perpetual care
19cemetery that fails to timely file its annual report.
20DIVISION VII — STATE INNOVATION WAIVER. The bill
21authorizes the commissioner to develop by rule a state
22innovation waiver (waiver) pursuant to section 1332 of the
23federal Patient Protection and Affordable Care Act, Pub.L. No.
24111-148, and to submit an application on behalf of the state
25to the United States secretary of health and human services
26and the United States secretary of the treasury (secretaries)
27for the waiver. If a waiver is approved by the secretaries,
28the commissioner is authorized to implement the waiver in a
29manner consistent with applicable state and federal law. The
30bill authorizes the commissioner to adopt emergency rules
31to implement the waiver and the rules are to be effective
32immediately upon filing unless a later date is specified in the
33rules. Any rules that are adopted must also be published as a
34notice of intended action.
-49-ko/rn