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House Study Bill 135 - IntroducedA Bill ForAn Act 1relating to value-added products or services offered by
2insurers or producers.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 507B.4, subsection 2, Code 2023, is
2amended to read as follows:
32. a. For purposes of subsection 3, paragraphs “k”, “l”,
4and “m”, “personal lines property and casualty insurance” means
5insurance sold to individuals and families primarily for
6noncommercial purposes as provided in chapter 522B.
7b. For purposes of subsection 3, paragraph “i”, subparagraph
8(2), subparagraph division (d), “customer” means a policyholder,
9potential policyholder, certificate holder, potential
10certificate holder, an insured, potential insured, or an
11applicant.
12 Sec. 2. Section 507B.4, subsection 3, paragraph i,
13subparagraph (2), unnumbered paragraph 1, Code 2023, is amended
14to read as follows:
15Nothing in paragraph “g” or subparagraph Subparagraphs (1)
16of this and (3), and paragraph “i” “g”, shall not be construed
17as including within the definition of to include any of the
18following practices in the definition of unfair discrimination
19or rebates any of the following practices:
20 Sec. 3. Section 507B.4, subsection 3, paragraph i,
21subparagraph (2), Code 2023, is amended by adding the following
22new subparagraph division:
23 NEW SUBPARAGRAPH DIVISION. (d) The offer or provision, at
24no or reduced cost, by an insurer or producer by or through
25an employee, affiliate, or third-party representative, of a
26value-added product or service that is not specified in the
27policy of insurance if the value-added product or service that
28is offered or provided meets all of the following criteria:
29(i) The product or service relates to the policy of
30insurance.
31(ii) The product or service is designed primarily to
32accomplish at least one of the following:
33(A) Provide loss mitigation or loss control.
34(B) Reduce the customer’s claim costs or claim settlement
35costs.
-1- 1(C) Provide the customer with education regarding liability
2risks, or the risk of loss to persons or property.
3(D) Monitor or assess risk, identify sources of risk, or
4develop strategies for eliminating or reducing risk.
5(E) Enhance the customer’s health.
6(F) Enhance the customer’s financial wellness through
7education or financial planning services.
8(G) Provide the customer with post-loss services.
9(H) Incentivize behavioral changes to improve the health
10of, or to reduce the risk of death or disability of, a
11customer.
12(I) Assist in the administration of employee or retiree
13benefit insurance coverage.
14(iii) The cost to the insurer or producer offering or
15providing the product or service to a customer must be
16reasonable in comparison to the customer’s premiums and
17insurance coverage for the policy class.
18(iv) If the insurer or producer provides the product or
19service offered, the insurer or producer shall ensure that the
20customer is provided with contact information for customer
21service or technical support personnel who can assist the
22customer with questions regarding the product or service.
23(v) The availability of the value-added product or service
24shall be based on documented objective criteria and the
25value-added product or service must be offered to all customers
26in a nondiscriminatory manner. The documented objective
27criteria shall be maintained by the insurer or producer and
28provided to the commissioner upon request. If an insurer
29or producer does not have sufficient documented objective
30criteria, but has a good-faith belief that the product or
31service meets the criteria under subparagraph subdivision (ii),
32the insurer or producer may offer or provide the product or
33service in a nondiscriminatory manner to customers as part of
34a pilot program or a test program for up to one year. Prior
35to launching the pilot program or test program, the insurer or
-2-1producer must notify the commissioner. If the commissioner
2does not object to the pilot program or test program within
3twenty-one calendar days from the date of notice, the insurer
4or producer may proceed with the pilot program or test program.
5(vi) The commissioner may adopt rules pursuant to chapter
617A to administer this subparagraph division.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10This bill relates to value-added products or services
11offered by insurers or producers.
12The bill excludes value-added products or services (product
13or service) offered or provided (offered), at no or reduced
14cost, by an insurer or producer (insurer) that is not specified
15in the policy of insurance (policy) from the definition of
16unfair discrimination or of rebate under Code section 507B.4,
17if the product or service that is offered relates to the policy
18that is offered and is designed primarily to accomplish at
19least one of the criteria detailed in the bill.
20The cost to the insurer of offering the product or service to
21a customer must be reasonable in comparison to the customer’s
22premiums and insurance coverage for the policy class.
23“Customer” is defined in the bill as a policyholder, potential
24policyholder, certificate holder, potential certificate holder,
25an insured, a potential insured, or an applicant.
26If the insurer provides the product or service offered, the
27insurer shall ensure that the customer is provided with contact
28information for customer service or technical support personnel
29who can assist the customer with questions. The availability
30of the product or service shall be based on documented
31objective criteria and the product or service must be offered
32to all customers in a nondiscriminatory manner. The documented
33criteria shall be maintained by the insurer and provided to the
34commissioner of insurance upon request. If an insurer does
35not have sufficient objective criteria, but has a good-faith
-3-1belief that the product or service meets the criteria specified
2in the bill, the insurer may offer or provide the product or
3service in a nondiscriminatory manner to customers as part
4of a pilot or test program for up to one year. Prior to
5launching the pilot or test program, the insurer must notify
6the commissioner. If the commissioner does not object to the
7pilot or test program within 21 calendar days from the date of
8notice, the insurer may proceed with the pilot or test program.
9The commissioner of insurance may adopt rules to administer
10the section of the bill amending Code section 507B.4(3)(i)(2).
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2insurers or producers.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 507B.4, subsection 2, Code 2023, is
2amended to read as follows:
32. a. For purposes of subsection 3, paragraphs “k”, “l”,
4and “m”, “personal lines property and casualty insurance” means
5insurance sold to individuals and families primarily for
6noncommercial purposes as provided in chapter 522B.
7b. For purposes of subsection 3, paragraph “i”, subparagraph
8(2), subparagraph division (d), “customer” means a policyholder,
9potential policyholder, certificate holder, potential
10certificate holder, an insured, potential insured, or an
11applicant.
12 Sec. 2. Section 507B.4, subsection 3, paragraph i,
13subparagraph (2), unnumbered paragraph 1, Code 2023, is amended
14to read as follows:
15Nothing in paragraph “g” or subparagraph Subparagraphs (1)
16of this and (3), and paragraph “i” “g”, shall not be construed
17as including within the definition of to include any of the
18following practices in the definition of unfair discrimination
19or rebates any of the following practices:
20 Sec. 3. Section 507B.4, subsection 3, paragraph i,
21subparagraph (2), Code 2023, is amended by adding the following
22new subparagraph division:
23 NEW SUBPARAGRAPH DIVISION. (d) The offer or provision, at
24no or reduced cost, by an insurer or producer by or through
25an employee, affiliate, or third-party representative, of a
26value-added product or service that is not specified in the
27policy of insurance if the value-added product or service that
28is offered or provided meets all of the following criteria:
29(i) The product or service relates to the policy of
30insurance.
31(ii) The product or service is designed primarily to
32accomplish at least one of the following:
33(A) Provide loss mitigation or loss control.
34(B) Reduce the customer’s claim costs or claim settlement
35costs.
-1- 1(C) Provide the customer with education regarding liability
2risks, or the risk of loss to persons or property.
3(D) Monitor or assess risk, identify sources of risk, or
4develop strategies for eliminating or reducing risk.
5(E) Enhance the customer’s health.
6(F) Enhance the customer’s financial wellness through
7education or financial planning services.
8(G) Provide the customer with post-loss services.
9(H) Incentivize behavioral changes to improve the health
10of, or to reduce the risk of death or disability of, a
11customer.
12(I) Assist in the administration of employee or retiree
13benefit insurance coverage.
14(iii) The cost to the insurer or producer offering or
15providing the product or service to a customer must be
16reasonable in comparison to the customer’s premiums and
17insurance coverage for the policy class.
18(iv) If the insurer or producer provides the product or
19service offered, the insurer or producer shall ensure that the
20customer is provided with contact information for customer
21service or technical support personnel who can assist the
22customer with questions regarding the product or service.
23(v) The availability of the value-added product or service
24shall be based on documented objective criteria and the
25value-added product or service must be offered to all customers
26in a nondiscriminatory manner. The documented objective
27criteria shall be maintained by the insurer or producer and
28provided to the commissioner upon request. If an insurer
29or producer does not have sufficient documented objective
30criteria, but has a good-faith belief that the product or
31service meets the criteria under subparagraph subdivision (ii),
32the insurer or producer may offer or provide the product or
33service in a nondiscriminatory manner to customers as part of
34a pilot program or a test program for up to one year. Prior
35to launching the pilot program or test program, the insurer or
-2-1producer must notify the commissioner. If the commissioner
2does not object to the pilot program or test program within
3twenty-one calendar days from the date of notice, the insurer
4or producer may proceed with the pilot program or test program.
5(vi) The commissioner may adopt rules pursuant to chapter
617A to administer this subparagraph division.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10This bill relates to value-added products or services
11offered by insurers or producers.
12The bill excludes value-added products or services (product
13or service) offered or provided (offered), at no or reduced
14cost, by an insurer or producer (insurer) that is not specified
15in the policy of insurance (policy) from the definition of
16unfair discrimination or of rebate under Code section 507B.4,
17if the product or service that is offered relates to the policy
18that is offered and is designed primarily to accomplish at
19least one of the criteria detailed in the bill.
20The cost to the insurer of offering the product or service to
21a customer must be reasonable in comparison to the customer’s
22premiums and insurance coverage for the policy class.
23“Customer” is defined in the bill as a policyholder, potential
24policyholder, certificate holder, potential certificate holder,
25an insured, a potential insured, or an applicant.
26If the insurer provides the product or service offered, the
27insurer shall ensure that the customer is provided with contact
28information for customer service or technical support personnel
29who can assist the customer with questions. The availability
30of the product or service shall be based on documented
31objective criteria and the product or service must be offered
32to all customers in a nondiscriminatory manner. The documented
33criteria shall be maintained by the insurer and provided to the
34commissioner of insurance upon request. If an insurer does
35not have sufficient objective criteria, but has a good-faith
-3-1belief that the product or service meets the criteria specified
2in the bill, the insurer may offer or provide the product or
3service in a nondiscriminatory manner to customers as part
4of a pilot or test program for up to one year. Prior to
5launching the pilot or test program, the insurer must notify
6the commissioner. If the commissioner does not object to the
7pilot or test program within 21 calendar days from the date of
8notice, the insurer may proceed with the pilot or test program.
9The commissioner of insurance may adopt rules to administer
10the section of the bill amending Code section 507B.4(3)(i)(2).
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