Bill Text: IA HF2236 | 2017-2018 | 87th General Assembly | Enrolled
Bill Title: A bill for an act relating to service of process made on the commissioner of insurance as the agent or attorney for service of process for regulated individuals and entities and resolving inconsistencies. (Formerly HSB 582.) Effective 7-1-18.
Sponsorship: Committee Bill
Status: (Passed) 2018-03-21 - Signed by Governor. H.J. 652. [HF2236 Detail]
Download: Iowa-2017-HF2236-Enrolled.html
House File 2236 - Enrolled
HOUSE FILE
BY COMMITTEE ON COMMERCE
(SUCCESSOR TO HSB 582)
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A BILL FOR
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House File 2236
AN ACT
RELATING TO SERVICE OF PROCESS MADE ON THE COMMISSIONER
OF INSURANCE AS THE AGENT OR ATTORNEY FOR SERVICE OF PROCESS
FOR REGULATED INDIVIDUALS AND ENTITIES AND RESOLVING
INCONSISTENCIES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 502.611, Code 2018, is amended to read
as follows:
502.611 Service of process.
1. Signed consent to service of process. A consent to
service of process required by this chapter must be signed
and filed in the form required by a rule or order under this
chapter. A consent appointing the administrator the as a
person's agent for service of process in a noncriminal action
or proceeding against the person, or the person's successor or
personal representative under this chapter or a rule adopted
or order issued under this chapter after the consent is filed,
has the same force and validity as if the service of process
were made personally on the person filing the consent. A
person that has filed a consent complying with this subsection
in connection with a previous application for registration or
notice filing need not file an additional consent.
2. Conduct constituting appointment of agent for service of
process. If a person, including a nonresident of this state,
engages in an act, practice, or course of business prohibited
or made actionable by this chapter or a rule adopted or order
issued under this chapter and the person has not filed a
consent to service of process under subsection 1, the act,
practice, or course of business constitutes the appointment of
the administrator as the person's agent for service of process
in a noncriminal action or proceeding against the person or the
person's successor or personal representative.
3. Procedure for service of process. Service If service of
process is made on the administrator under subsection 1 or 2
may it shall be made by providing a copy of the process to the
office of the administrator as provided in section 505.30, but
it is not effective unless all of the following apply:
a. The plaintiff, which may be the administrator, shall
promptly sends send notice of the service of process and a
copy of the service of process, return receipt requested, by
certified mail to the defendant or respondent at the address
set forth in the consent to service of process or, if a consent
to service of process has not been filed, at to the defendant's
or respondent's last known address, or takes other reasonable
steps to give notice principal place of business.
b. The plaintiff files shall file an affidavit of compliance
with this subsection in the action or proceeding on or before
the return day of the service of process, if any, or within
the time that the court, or the administrator in a proceeding
before the administrator, allows.
4. Service of process in an administrative proceedings
proceeding or civil actions action by administrator. Service of
process pursuant to subsection 3 may be used in a proceeding
before the administrator or by the administrator in a civil
action in which the administrator is the moving party.
5. Opportunity to defend. If process is served under
subsection 3, the court, or the administrator in a proceeding
before the administrator, shall order continuances as are
necessary or appropriate to afford the defendant or respondent
reasonable opportunity to defend.
Sec. 2. Section 505.30, Code 2018, is amended to read as
follows:
505.30 Service of process == fee made on the commissioner as
agent or attorney for service of process == rules and fee.
1. The commissioner of insurance, pursuant to may adopt
rules adopted pursuant to chapter 17A, setting forth procedures
related to service of process made on the commissioner as
agent or attorney for service of process for an individual or
entity within the jurisdiction of the commissioner. The rules
shall apply when the individual or entity is required by law
to appoint the commissioner to serve, is required by law to
consent to have the commissioner serve, is deemed by law to
have appointed or to have consented to have the commissioner
serve, or elects to appoint or consents to have the
commissioner serve as agent or attorney for service of process.
2. The commissioner may collect a reasonable fee each
time service of process is served made on the commissioner
as allowed by law set forth in subsection 1 or as otherwise
allowed by law. Fees A fee collected by the commissioner
under this section subsection shall be used and are is
appropriated to the insurance division to offset the costs
of receiving such service of process the commissioner acting
as agent or attorney for service of process. The party to a
proceeding causing requesting service of process is entitled to
recover this the fee paid pursuant to this subsection and any
rules adopted under this section as costs if the party prevails
in the proceeding.
3. The commissioner shall maintain for ninety days a record
of each service of process made on the commissioner pursuant
to this section, including the date each service of process
is made on the commissioner, the date each service of process
is forwarded by mail by the commissioner to the defendant
or respondent, and the date each certificate of service is
submitted electronically to the court. The records may be
maintained electronically.
Sec. 3. Section 507A.5, Code 2018, is amended to read as
follows:
507A.5 Proscribed acts binding on insurer.
1. No A person or insurer shall not directly or indirectly
perform any of the acts act of doing an insurance business as
defined in this chapter except as provided by and in accordance
with the specific authorization by statute. However, should
any an unauthorized person or insurer perform any an act of
doing an insurance business as set forth in this chapter, it
shall be equivalent to and shall constitute an irrevocable
appointment by such person or insurer, binding upon the
person, the person's executor or administrator, or successor
in interest if a corporation, of the commissioner of insurance
or the commissioner's successor in office, to be the true and
lawful attorney upon whom may be served all lawful process in
any action, suit or proceeding in any court arising out of
doing an insurance business in this state or instituted by
or on behalf of an insured or beneficiary arising out of any
such acts an act of doing an insurance business, except in an
action, suit, or proceeding by the commissioner of insurance
or by the state. Any An act of doing an insurance business by
any an unauthorized person or insurer shall be signification of
its agreement that such service of process is of the same legal
force and validity as personal service of process in this state
upon such person or insurer.
2. Service of process made upon the commissioner as the
attorney for service of process shall be made by delivering to
and leaving with the commissioner of insurance or some person
in apparent charge of the commissioner's office two copies
thereof and the payment to the commissioner of such fees as
may be prescribed by law as provided in section 505.30. The
commissioner of insurance shall forthwith forward by certified
mail one of the copies of such process to the defendant at the
last known principal place of business and shall keep a record
of all process so served. Such service of process shall be
sufficient to provide notice if all of the following apply:
a. A The plaintiff or plaintiff's attorney sends a copy of
the service of process is sent by certified mail within ten
days thereafter by certified mail by plaintiff or plaintiff's
attorney to the defendant at the defendant's last known
principal place of business.
b. The defendant's receipt or a receipt issued by the post
office showing the name of the sender of the letter certified
mail and the name and address of the person to whom the letter
certified mail is addressed and an affidavit by the plaintiff
or plaintiff's attorney showing a attesting to compliance
herewith with this subsection are filed with the clerk of the
court in which such the action is pending on or before the date
the defendant is required to appear or within such further time
as the court may allow.
3. Service of process in any such action, suit, or
proceeding shall in addition to the manner as provided in
this chapter be valid if served made upon any a person within
this state who, in this state on behalf of such insurer,
is soliciting insurance, making, issuing, or delivering
any contract of insurance, or collecting or receiving any
premium, membership fee, assessment, or other consideration for
insurance, and if all of the following apply:
a. A The plaintiff or plaintiff's attorney sends a copy
of such service of process is sent by certified mail within
ten days thereafter by certified mail by the plaintiff or
plaintiff's attorney to the defendant at the defendant's last
known principal place of business of the defendant.
b. The defendant's receipt, or the a receipt issued by
the post office showing the name of the sender of the letter
certified mail and the name and address of the person to whom
the letter certified mail is addressed, and an affidavit of by
the plaintiff or plaintiff's attorney showing a attesting to
compliance herewith with this subsection are filed with the
clerk of the court in which such action is pending on or before
the date the defendant is required to appear or within such
further time as the court may allow.
4. No A plaintiff shall not be entitled to a judgment by
default under this chapter until the expiration of thirty
days from the date of the filing of on which the plaintiff or
plaintiff's attorney files the affidavit of compliance.
5. Nothing in this section shall limit or abridge the right
to serve any process, notice, or demand upon any insurer in any
other manner now or hereafter permitted by law.
Sec. 4. Section 508E.3, subsection 7, Code 2018, is amended
to read as follows:
7. The commissioner shall not issue a license to a
nonresident applicant unless a written designation of an
agent for service of process is filed and maintained with the
commissioner or the applicant has filed with the commissioner
the applicant's written irrevocable consent that any action
against the applicant may be commenced against the applicant by
service of process on the commissioner. If an applicant files
such consent, service of process made on the commissioner as
the agent for service of process shall be made as provided in
section 505.30.
Sec. 5. Section 511.28, Code 2018, is amended to read as
follows:
511.28 Service of process.
Any notice or process, with three copies of the notice
or process, may be mailed to the commissioner at Des Moines,
Iowa, in a certified mail letter addressed to the commissioner
by the commissioner's official title. The commissioner
shall acknowledge service on behalf of the defendant foreign
insurance company by writing, giving the date of receipt of
the notice or process, and shall return the notice or process
in a certified mail letter to the clerk of the court in which
the suit is pending, addressed to the clerk by the clerk's
official title, and shall also mail a copy, with a copy of the
commissioner's acknowledgment of service written thereon, in a
certified mail letter addressed to the person or corporation
named or designated by such company in the written instrument.
Notice or process received prior to 10 a.m. shall be forwarded
the same working day. Notice or process received after 10 a.m.
shall be forwarded the next working day. A fee of fifteen
dollars must accompany the request for notice or process.
Service of process made on the commissioner as the agent for
service of process shall be made as provided in section 505.30.
Sec. 6. Section 512B.33, Code 2018, is amended to read as
follows:
512B.33 Service of process.
1. A society authorized to do business in this state shall
file in the office of the commissioner a power of attorney
and an agreement in writing that service of process in any
action or proceeding against the society may be served on the
commissioner and shall be of the same legal force and validity
as if served upon the society, and that the authority shall
continue in force so long as any liability remains outstanding
in this state. Copies A copy of the power of attorney,
certified by the commissioner, shall be deemed sufficient
evidence of the appointment and shall be admitted in evidence
with the same force and effect as the original.
2. Service of process shall only be made upon the
commissioner, or if absent, upon the person in charge of
the commissioner's office made on the commissioner as the
agent for service of process shall be made as provided in
section 505.30. Service shall be made in triplicate and shall
constitute sufficient service upon the society. When legal
process against a society is served upon the commissioner, the
commissioner shall promptly forward one of the duplicate copies
by registered mail, prepaid, directed to the secretary or
corresponding officer of the society. A society shall not be
required to file its answer, pleading, or defense in less than
thirty days from the date of mailing the copy of the service
to a society the commissioner sends a copy of the service of
process to the society by certified mail as provided in section
505.30. Legal process shall not be served made upon a society
except in the manner provided in this section.
Sec. 7. Section 514.2A, Code 2018, is amended to read as
follows:
514.2A Service of process.
A nonprofit health service corporation authorized to
do business in this state shall file in the office of the
commissioner a power of attorney and an agreement in writing
that service of process in any action or proceeding against
the corporation may be served made on the commissioner and
shall be of the same legal force and validity as if served made
upon the corporation, and that the authority shall continue
in force so long as any liability remains outstanding in this
state. Copies A copy of the power of attorney, certified by
the commissioner, shall be deemed sufficient evidence of the
appointment and shall be admitted in evidence with the same
force and effect as the original. Service of process made on
the commissioner as the attorney for service of process shall
be made as provided in section 505.30.
Sec. 8. Section 515.77, Code 2018, is amended to read as
follows:
515.77 Service of process.
Any notice or service of process, with three copies of the
notice or process, may be mailed to the commissioner at Des
Moines, Iowa, in a certified mail letter addressed to the
commissioner by the commissioner's official title made on the
commissioner as agent for service of process shall be made as
provided in section 505.30. The commissioner shall acknowledge
service on behalf of the defendant foreign insurance company by
writing, giving the date of receipt of the notice or process,
and shall return the notice or process in a certified mail
letter to the clerk of the court in which the suit is pending,
addressed to the clerk by the clerk's official title, and
shall also mail a copy, with a copy of the commissioner's
acknowledgment of service written thereon, in a certified
mail letter addressed to the person or corporation named or
designated by such company in the written instrument. Notice
or process received prior to 10:00 a.m. shall be forwarded the
same working day. Notice or process received after 10:00 a.m.
shall be forwarded the next working day. A fee of fifteen
dollars must accompany the request for notice or process.
Sec. 9. Section 515E.3, Code 2018, is amended to read as
follows:
515E.3 Risk retention groups organized in this state.
To be organized as a risk retention group in this state,
the group must be organized and licensed as a liability
insurance company authorized by the insurance laws of this
state. Except as provided elsewhere in this chapter, a risk
retention group organized in this state must comply with all
of the laws, rules, and requirements applicable to a liability
insurers insurer organized in this state. Additionally, a
risk retention group organized in this state must comply with
section 515E.4. These requirements do not exempt a risk
retention groups group from a duty imposed by any other law or
rule of the state. Before it may offer insurance in any state,
each a risk retention group shall also submit for approval to
the commissioner of insurance of this state a plan of operation
or a feasibility study, and revisions of the plan or study,
within ten days of any change. The name under which a risk
retention group may be chartered and licensed shall be a brief
description of its membership followed by the phrase "risk
retention group" and, unless its membership consists solely of
insurers, shall not include the terms "insurance", "mutual",
"reciprocal", or any similar term. All A risk retention groups
group chartered in this state shall file with the division
and the national association of insurance commissioners an
annual statement blank prepared in accordance with instructions
prescribed by the commissioner. All financial information
reflected in the annual statement shall be kept and prepared in
accordance with accounting practices and procedures prescribed
by the commissioner. The commissioner may adopt by reference
the annual statement handbook and the accounting practices and
procedures manual of the national association of insurance
commissioners.
A risk retention group organized in this state shall file
in the office of the commissioner a power of attorney and an
agreement in writing that service of process in any action
or proceeding against the society may be served made on the
commissioner and shall be of the same legal force and validity
as if served made upon the society, and that the authority
shall continue in force so long as any liability remains
outstanding in this state. Copies of the power of attorney,
certified by the commissioner, shall be deemed sufficient
evidence of the appointment and shall be admitted in evidence
with the same force and effect as the original. Service of
process made on the commissioner as the attorney for service of
process shall be made as provided in section 505.30.
Sec. 10. Section 516E.12, Code 2018, is amended to read as
follows:
516E.12 Service of process.
The commissioner shall be the agent attorney for service of
process upon a provider, a service company, or a third=party
administrator and, or an issuer of a reimbursement insurance
policy. Service of process made on the commissioner as the
agent for service of process shall be made as provided in
section 505.30.
Sec. 11. Section 520.6, Code 2018, is amended to read as
follows:
520.6 Manner of service Service of process.
Three copies of such process shall be served and the
commissioner of insurance shall file one copy, forward one copy
to said attorney, and return one copy with the commissioner's
admission of service. Service of process made on the
commissioner as the agent for service of process shall be made
as provided in section 505.30.
Sec. 12. Section 521A.3, subsection 7, Code 2018, is amended
to read as follows:
7. Jurisdiction == consent to service of process. The
district court is hereby vested with jurisdiction over every
a person that is not a resident, is not domiciled, or is
not authorized to do business in this state who that files
a statement with the commissioner under this section, and
over all actions involving such the person arising out of
violations of this section, and each such the person shall be
deemed to have performed acts equivalent to and constituting
an appointment by such a the person of the commissioner to be
the person's true and lawful attorney upon whom may be served
made all lawful process, notice, or demand in any action, suit,
or proceeding arising out of violations a violation of this
section. Copies A copy of all such lawful process, notice, or
demand shall be served made on the commissioner as the attorney
for service of process as provided in section 505.30 and
transmitted by registered or certified mail by the commissioner
to such person at the person's last known address.
Sec. 13. NEW SECTION. 521B.107 Service of process made on
the commissioner as the agent for service of process.
Service of process made on the commissioner as the agent for
service of process shall be made as provided in section 505.30.
Sec. 14. NEW SECTION. 521C.13 Service of process made on
the commissioner as the agent for service of process.
Service of process made on the commissioner as the agent for
service of process shall be made as provided in section 505.30.
Sec. 15. NEW SECTION. 523A.802A Service of process made on
the commissioner as the agent for service of process.
Service of process made on the commissioner as the agent for
service of process shall be made as provided in section 505.30.
Sec. 16. Section 523C.20, Code 2018, is amended to read as
follows:
523C.20 Consent to service of process.
If a person engages in conduct subject to regulation under
this chapter, the conduct shall constitute the appointment
of the commissioner of insurance as the person's attorney
to receive service of any lawful process in a noncriminal
proceeding against the person, a successor, or personal
representative, which grows out of that conduct, with the same
force and validity as if served made personally. Service of
process made on the commissioner as the attorney for service of
process shall be made as provided in section 505.30.
Sec. 17. Section 523C.21, Code 2018, is amended to read as
follows:
523C.21 Service of process.
The commissioner shall be the agent for service of process
upon a service company. Service of process made on the
commissioner as the agent for service of process shall be made
as provided in section 505.30.
Sec. 18. Section 523I.102, subsection 1, Code 2018, is
amended to read as follows:
1. "Authorized to do business within this state" means a
person licensed, registered, or subject to regulation by an
agency of the state of Iowa or who has filed a consent to
service of process with the commissioner for purposes of this
chapter.
LINDA UPMEYER
CHARLES SCHNEIDE
CARMINE BOAL
KIM REYNOLDS
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