Bill Text: IA HF2263 | 2023-2024 | 90th General Assembly | Enrolled

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Bill Title: A bill for an act relating to the insurance commissioner's authority concerning insurance producers, business entity producers, and preneed sellers, continuing care retirement facilities, and continuing care retirement programs. (Formerly HSB 554.) Effective date: 07/01/2024.

Spectrum: Committee Bill

Status: (Passed) 2024-04-10 - Signed by Governor. H.J. 773. [HF2263 Detail]

Download: Iowa-2023-HF2263-Enrolled.html

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House File 2263 - Enrolled
House File 2263
AN ACT
RELATING TO THE INSURANCE COMMISSIONER’S AUTHORITY CONCERNING
INSURANCE PRODUCERS, BUSINESS ENTITY PRODUCERS, AND
PRENEED SELLERS, CONTINUING CARE RETIREMENT FACILITIES, AND
CONTINUING CARE RETIREMENT PROGRAMS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 505.17, subsection 1, paragraph a, Code
2024, is amended to read as follows:
a. Information, records, and documents utilized for the
purpose of, or in the course of, investigation, regulation,
or examination of an insurance company , or insurance holding
company, an individual insurance producer, or a business entity
producer received by the division from some other governmental
entity which treats such information, records, and documents
as confidential, are confidential and shall not be disclosed
by the division and are not subject to subpoena. Such
information, records, and documents do not constitute a public
record under chapter 22 .
Sec. 2. Section 522B.11, subsection 1, paragraph q, Code
2024, is amended to read as follows:
q. Is the subject of an order of the securities
administrator of this state or any other state, province,

House File 2263, p. 2
district, or territory, denying, suspending, revoking,
or otherwise taking action against a registration as a
broker-dealer, agent, investment adviser, or investment adviser
representative issued by any of the following:
(1) The securities administrator of this state or any other
state, province, district, or territory.
(2) The federal securities and exchange commission.
(3) The financial industry regulatory authority .
Sec. 3. Section 523A.807, subsection 3, paragraph a, Code
2024, is amended to read as follows:
a. Payment of a civil penalty of not more than one thousand
dollars for each violation, but not exceeding an aggregate of
ten thousand dollars during any six-month period, except that
if the commissioner finds that the person knew or reasonably
should have known that the person was in violation of such
provisions a section or rules adopted pursuant thereto to a
section , the penalty shall be not more than five thousand
dollars for each violation, but and not exceeding exceed an
aggregate of fifty thousand dollars during any six-month
period. The commissioner shall assess the penalty on the
employer of an individual and not on the individual, if
the commissioner finds that the violations committed by the
individual were directed, encouraged, condoned, ignored, or
ratified by the individual’s employer. Any civil penalties
collected under this subsection shall be deposited as provided
in section 505.7 .
Sec. 4. Section 523D.1, subsections 2, 3, 4, 8, and 9, Code
2024, are amended to read as follows:
2. “Continuing care” means housing together with a continuum
of supportive services, home health services, nursing services,
medical services, or other health related services, furnished
to a resident, regardless of whether or not the lodging and
services are provided at the same location, together with
housing for residents that elect to live in a facility of
a provider, with or without other periodic charges, and
pursuant to one or more contracts effective for the life of the
resident or a period in excess of one year, including mutually
cancelable contracts, and in consideration of an entrance fee.

House File 2263, p. 3
3. “Continuing care retirement community” means a facility or
program which provides continuing care to residents other than
residents related by consanguinity or affinity to the person
furnishing their care.
4. “Entrance fee” means an initial or deferred transfer to
a provider of a sum of money or other property made or promised
to be made as full or partial consideration for acceptance of
a specified individual in into a facility or a program if the
amount exceeds either of the following:
a. Five thousand dollars.
b. The sum of the regular periodic charges for six months
of residency .
8. “Provider” means a person undertaking through a lease or
other type of agreement to provide care in or from a continuing
care retirement community or senior adult congregate living
facility, even if that person does not own the facility.
9. “Resident” means an individual, sixty years of age or
older, entitled to receive care in from a continuing care
retirement community or a senior adult congregate living
facility.
Sec. 5. Section 523D.1, Code 2024, is amended by adding the
following new subsection:
NEW SUBSECTION . 7A. “Program” means an organized set of
measures or activities undertaken by a provider to provide
continuing care services to an individual.
Sec. 6. Section 523D.2, Code 2024, is amended to read as
follows:
523D.2 Application of chapter.
This chapter applies to a provider who executes a contract
to provide continuing care or senior adult congregate living
services in a facility or program , or extend extends the term
of an existing contract to provide continuing care or senior
adult congregate living services in a facility or program , if
the contract requires or permits the payment of an entrance fee
to a person, and any of the following apply:
1. The facility or program is or will be located in this
state.
2. The provider or a person acting on the provider’s behalf
solicits the contract within this state for a facility or

House File 2263, p. 4
program located in this state and the person to be provided
with continuing care or senior adult congregate living services
under the contract resides within this state at the time of the
solicitation.
Sec. 7. Section 523D.2A, unnumbered paragraph 1, Code 2024,
is amended to read as follows:
On or before March 1 of each year, a provider shall
file a certification with the commissioner in a manner and
according to requirements established by the commissioner. The
certification shall be accompanied by a one hundred dollar
administrative fee which fee shall be deposited as provided in
section 505.7 . The certification shall attest that according
to the best knowledge and belief of the attesting party,
the facility or program administered by the provider is in
compliance with the provisions of this chapter , including
rules adopted by the commissioner or orders issued by the
commissioner as authorized under this chapter . The attesting
person may be any of the following:
Sec. 8. Section 523D.3, subsection 1, paragraph c,
unnumbered paragraph 1, Code 2024, is amended to read as
follows:
With respect to each person covered by paragraph “b” , and
if the facility or program will be managed on a day-to-day
basis by a person identified pursuant to paragraph “b” , or with
respect to the proposed manager, the following information:
Sec. 9. Section 523D.3, subsection 1, paragraphs f, h, and
k, Code 2024, are amended to read as follows:
f. The services provided or proposed to be provided under
contracts for continuing care or senior adult congregate living
services at the facility , including the extent to which medical
care is furnished. The disclosure statement shall clearly
state which services are included in basic contracts and which
services are made available at or by the facility at extra
charge.
h. The provisions which have been made or will be made,
if any, to provide reserve funding or security to enable the
provider to fully perform its obligations under contracts to
provide continuing care or senior adult congregate living
services at the facility , including the establishment of escrow

House File 2263, p. 5
accounts, trusts, or reserve funds, together with the manner in
which the funds will be invested and the names and experience
of persons who will make the investment decisions.
k. Other material information concerning the facility ,
program, or the provider required by the division of insurance
or which the provider wishes to include.
Sec. 10. Section 523D.6, subsection 1, paragraphs b, c, f,
g, h, j, k, m, and p, Code 2024, are amended to read as follows:
b. The name and address of the facility or facilities , or
of the program .
c. The If a prospective resident elects to reside in housing
at the facility of a provider, the identification of the living
unit which the prospective resident will occupy.
f. A statement of the policy of the facility or program with
regard to any health or financial conditions upon which the
provider may require the resident to relinquish the resident’s
space in the designated facility or program .
g. A statement of the policy of the facility or program with
regard to the health and financial conditions required for a
person to continue as a resident or an enrollee in a program .
h. A statement of the policy of the facility or program with
regard to the conditions under which the resident is permitted
to remain in the facility or program
in the event of financial
difficulties affecting the resident.
j. A statement of the policy of the facility or program
with regard to changes in accommodations and a description
of the procedures to be followed by the provider when the
provider temporarily or permanently changes the resident’s
accommodations within the facility or program , transfers the
resident from one level of care to another, or transfers the
resident to another health facility or program .
k. A description in clear and understandable language, in at
least ten point type, of the terms governing the refund of any
portion of the entrance fee in the event of discharge by the
provider, or cancellation by the resident, and a statement that
the provider shall not dismiss or discharge a resident from
a facility or program prior to the expiration of a resident
contract without just cause and sixty days written notice of
intent to cancel. The notice of dismissal or discharge shall

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only be given upon a good faith determination that just cause
exists, and the notice shall be given in writing, signed by the
medical director, if any, and the administrator of the facility
or program . In an emergency situation only such notice as is
reasonable under the circumstances is required.
m. A description of the facility’s or program’s policies
and procedures for handling grievances between the provider and
residents.
p. A statement that if a resident dies or through illness,
injury, or incapacity is precluded from becoming a resident
under the terms of the contract before occupying the living
unit , or precluded from commencing a continuing care services
program under the terms of the contract , the contract is
automatically rescinded and the resident or the resident’s
legal representative shall receive a full refund of all
payments of money or transferred property to the facility
or program , except those costs specifically incurred by the
facility or program at the request of the resident or program
enrollee and set forth in writing in a separate addendum,
signed by both parties to the contract.
Sec. 11. Section 523D.6, subsection 2, Code 2024, is amended
to read as follows:
2. Cancellation. The contract required by this section
shall state the terms under which the contract can be canceled
by the provider , or the resident, or a program enrollee,
including a statement of the refund rights of a resident,
or a program enrollee, and shall include a completed,
easily detachable form in duplicate, captioned “Notice
of Cancellation”, as an attachment, in ten point boldface
type, containing the following information and statements in
substantially the following form and language:
NOTICE OF CANCELLATION
........
Date contract was executed.
........
Date disclosure statement was provided
to resident or program enrollee .
You may rescind and cancel your contract, without any penalty
or obligation, within three business days of the date the

House File 2263, p. 7
contract was executed or within thirty days after the date
you received the disclosure statement required by Iowa Code
section 523D.3 , whichever is later. You are not required to
move into the facility or commence continuing care services
from the program before the expiration of this cancellation
period. However, if you do, the provider may retain the
reasonable value of care and services actually provided to you,
the resident, prior to your vacating the provider’s facility
or terminating continuing care services from the program . If
you cancel this contract and you have already moved into the
provider’s facility, you must vacate your living unit within
ten days after receipt by the provider of your cancellation
notice.
If you cancel this contract, any payments of money or
transfers of property you made to the provider must be returned
as soon as reasonably possible by the provider following
receipt by the provider of your cancellation notice, and any
security interest arising out of the transaction is canceled,
except that, as stated above, the provider may retain the
reasonable value of care and services actually provided to you
prior to your vacating the provider’s facility or terminating
continuing care services from the program .
To cancel this contract, mail by certified mail or hand
deliver a signed and dated copy of this cancellation notice
or any other written notice clearly indicating your intent to
cancel the contract, or send a telegram, to ........ (name
of provider) at ........ (address of provider’s place of
business). Your cancellation is effective upon mailing by
certified mail, when transmitted by telegraph, or when actual
notice is given to the provider, whichever is earlier.
I hereby cancel this contract.
......
(Date)
............
(Resident’s signature)
Sec. 12. Section 523D.7, subsection 1, paragraphs a and b,
Code 2024, are amended to read as follows:
a. Enters into a contract to provide continuing care or
senior adult congregate living services at a facility without

House File 2263, p. 8
having first delivered a disclosure statement meeting the
requirements of this chapter to the person contracting for
continuing care or senior adult congregate living services and
to the person’s personal representative if one is appointed by
the person.
b. Enters into a contract to provide continuing care or
senior adult congregate living services at a facility with a
person who has relied on a disclosure statement which contains
any untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements made,
in light of the circumstances under which they are made, not
misleading.
______________________________ ______________________________
PAT GRASSLEY AMY SINCLAIR
Speaker of the House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2263, Ninetieth General Assembly.
______________________________
MEGHAN NELSON
Chief Clerk of the House
Approved _______________, 2024 ______________________________
KIM REYNOLDS
Governor