Bill Text: IA HF2394 | 2015-2016 | 86th General Assembly | Enrolled
Bill Title: A bill for an act relating to various matters involving insurance and the insurance division of the department of commerce, and including penalties and applicability provisions. (Formerly HSB 537)
Sponsorship: Committee Bill
Status: (Enrolled - Dead) 2016-05-04 - Sent to Governor. H.J. 999. [HF2394 Detail]
Download: Iowa-2015-HF2394-Enrolled.html
House File 2394 - Enrolled
HOUSE FILE
BY COMMITTEE ON COMMERCE
(SUCCESSOR TO HSB 537)
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A BILL FOR
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House File 2394
AN ACT
RELATING TO VARIOUS MATTERS INVOLVING INSURANCE AND THE
INSURANCE DIVISION OF THE DEPARTMENT OF COMMERCE, AND
INCLUDING PENALTIES AND APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 16.91, subsection 3, Code 2016, is
amended to read as follows:
3. With the approval of the authority board the division
and its board shall consult with the insurance division of
the department of commerce in developing a guaranty contract
acceptable to the secondary market and developing any other
feature of the program with which the insurance division may
have special expertise. The insurance division shall establish
the amount for a loss reserve fund. Except as provided in this
subsection, the Iowa title guaranty program is not subject to
the jurisdiction of or regulation by the insurance division or
the commissioner of insurance.
Sec. 2. Section 502.305, subsection 2, Code 2016, is amended
to read as follows:
2. Filing. Except as provided in subsection 10 section
502.302, subsection 3, and section 502.304A, subsection 3,
paragraph "g", a person who files a registration statement
or a notice filing shall pay a filing fee of one=tenth of
one percent of the proposed aggregate sales price of the
securities to be offered to persons in this state pursuant to
the registration statement or notice filing. However, except
as provided in subsection 10, section 502.302, subsection 1,
paragraph "a", and section 502.304A, subsection 3, paragraph
"g", the annual filing fee shall not be less than fifty dollars
or more than one thousand dollars as prescribed by rules
adopted pursuant to chapter 17A. The administrator shall
retain the filing fee even if the notice filing is withdrawn or
the registration is withdrawn, denied, suspended, revoked, or
abandoned. The fees collected under this subsection shall be
deposited as provided in section 505.7. The administrator may
adopt rules requiring a filing to be made electronically. The
rules may provide for such electronic filing either directly
with the administrator or with a designee of the administrator.
The rules may require that the filer pay any reasonable costs
charged by the designee of the administrator for processing the
filings and that the filer submit any fees paid through the
designee.
Sec. 3. Section 502.305, subsection 10, Code 2016, is
amended by striking the subsection.
Sec. 4. Section 502.306, subsection 1, paragraph a, Code
2016, is amended to read as follows:
a. The registration statement as of its effective date
or before the effective date in the case of an order denying
effectiveness, an amendment under section 502.305, subsection
10, as of its effective date, or a report under section
502.305, subsection 9, is incomplete in a material respect or
contains a statement that, in the light of the circumstances
under which it was made, was false or misleading with respect
to a material fact.
Sec. 5. NEW SECTION. 507E.3A Fraudulent sales practices ==
penalty.
1. A person commits a class "D" felony if the person, with
the intent to defraud another person in connection with any
sale, solicitation, or negotiation of insurance in this state,
willfully does any of the following:
a. Employs any deception, device, scheme, or artifice to
defraud.
b. Misrepresents, conceals, or suppresses any material fact.
c. Engages in any act, practice, or course of business which
operates as a fraud or deceit upon any person.
2. Notwithstanding subsection 1, a person commits a class
"C" felony if the person violates subsection 1, and such
violation results in a loss of more than ten thousand dollars.
Sec. 6. NEW SECTION. 514K.2 Health carrier disclosures ====
public internet sites.
1. A carrier that provides small group health coverage
pursuant to chapter 513B or individual health coverage pursuant
to chapter 513C and that offers for sale a policy, contract,
or plan that covers the essential health benefits required
pursuant to section 1302 of the federal Patient Protection and
Affordable Care Act, Pub. L. No. 111=148, and its implementing
regulations, shall provide to each of its enrollees at the
time of enrollment, and shall make available to prospective
enrollees and enrollees, insurance producers licensed under
chapter 522B, and the general public, on the carrier's
internet site, all of the following information in a clear and
understandable form for use in comparing policies, contracts,
and plans, and coverage and premiums:
a. Any items or services, including prescription drugs, that
have a coinsurance requirement where the cost=sharing required
depends on the cost of the item or service.
b. The specific prescription drugs available on the
carrier's formulary, the specific prescription drugs covered
when furnished by a physician or clinic, and any clinical
prerequisites or prior authorization requirements for coverage
of the drugs.
c. How medications will specifically be included in or
excluded from the deductible, including a description of all
out=of=pocket costs that may not apply to the deductible for a
prescription drug.
2. A carrier that provides a summary of benefits and
coverage to its enrollees in accordance with 26 C.F.R.
{54.9815=2715, 29 C.F.R. {2590.715=2715, and 45 C.F.R.
{147.200 is deemed to be in compliance with this section
unless the commissioner of insurance determines that these
federal regulations, or the successors to any of these federal
regulations, fail to require the information required pursuant
to this section in a clear and understandable form.
Sec. 7. Section 521A.1, Code 2016, is amended by adding the
following new subsections:
NEW SUBSECTION. 5A. "Group=wide supervisor" means a
regulatory official who is authorized, and who is determined
or acknowledged by the commissioner pursuant to section
521A.6B to have sufficient significant contacts with an
internationally active insurance group, to engage in conducting
and coordinating group=wide supervision of the internationally
active insurance group.
NEW SUBSECTION. 7A. "Internationally active insurance group"
means an insurance holding company system that includes an
insurer registered under section 521A.4 and that meets all of
the following criteria:
a. The insurance holding company system has premiums written
in at least three countries.
b. The percentage of gross premiums written outside the
United States is at least ten percent of the insurance holding
company system's total gross written premiums.
c. Based on a three=year rolling average, the total assets
of the insurance holding company system are at least fifty
billion dollars or the total gross written premiums of the
insurance holding company system are at least ten billion
dollars.
Sec. 8. Section 521A.6A, subsection 1, unnumbered paragraph
1, Code 2016, is amended to read as follows:
With respect to any insurer registered under section
521A.4 and in accordance with subsection 3 of this section,
the commissioner shall have the power to participate in a
supervisory college for any domestic insurer that is part
of an insurance holding company system with international
operations in order to determine compliance by the insurer with
this chapter. The powers of the commissioner with respect
to supervisory colleges include but are not limited to the
following:
Sec. 9. Section 521A.6A, subsections 2 and 3, Code 2016, are
amended by striking the subsections.
Sec. 10. NEW SECTION. 521A.6B Group=wide supervision of
internationally active insurance groups.
1. a. The commissioner may act as the group=wide supervisor
of an internationally active insurance group in accordance with
the provisions of this section. However, the commissioner may
authorize another regulatory official to act as the group=wide
supervisor where the internationally active insurance group
meets any of the following conditions:
(1) Does not have substantial insurance operations in the
United States.
(2) Has substantial insurance operations in the United
States, but not in Iowa.
(3) Has substantial insurance operations in the United
States and in Iowa, but the commissioner has determined
pursuant to the factors set forth in subsections 2 and 6 that
another regulatory official is the appropriate group=wide
supervisor.
b. In response to a request from an insurance holding
company system that does not otherwise qualify as an
internationally active insurance group, the commissioner may
make a determination of or acknowledge a group=wide supervisor
for such an insurance holding company system pursuant to this
section.
2. a. In cooperation with other state, federal, and
international regulatory agencies, the commissioner shall
identify a single group=wide supervisor for an internationally
active insurance group. The commissioner may determine that
the commissioner is the appropriate group=wide supervisor
for an internationally active insurance group that conducts
substantial insurance operations concentrated in this state,
or the commissioner may acknowledge that a regulatory official
from another jurisdiction is the appropriate group=wide
supervisor for the internationally active insurance group. In
making a determination or acknowledgment under this paragraph
"a", the commissioner shall consider the following factors:
(1) The place of domicile of the insurers within the
internationally active insurance group that hold the largest
share of the group's written premiums, assets, or liabilities.
(2) The place of domicile of the top=tiered insurers in the
insurance holding company system of the internationally active
insurance group.
(3) The location of the executive offices or largest
operational offices of the internationally active insurance
group.
(4) Whether another regulatory official is acting as
or is seeking to act as the group=wide supervisor of the
internationally active insurance group under a regulatory
system that the commissioner determines to be either of the
following:
(a) Substantially similar to the system of regulation
provided under the laws of this state.
(b) Otherwise sufficient in terms of providing for
group=wide supervision, enterprise risk analysis, and
cooperation with other regulatory officials.
(5) Whether another regulatory official acting as
or seeking to act as the group=wide supervisor for the
internationally active insurance group provides the
commissioner with reasonably reciprocal recognition and
cooperation.
b. Notwithstanding paragraph "a", even if the commissioner
is identified pursuant to this subsection as the group=wide
supervisor of an internationally active insurance group,
the commissioner may determine that it is appropriate to
acknowledge another regulatory official to serve as the
group=wide supervisor of the internationally active insurance
group.
c. The acknowledgment of a group=wide supervisor pursuant
to this subsection shall be made after consideration of the
factors listed in paragraph "a", subparagraphs (1) through
(5), and shall be made in cooperation with and subject to the
acknowledgment of other regulatory officials involved with
supervision of members of the internationally active insurance
group, and in consultation with the internationally active
insurance group.
3. Notwithstanding any other provision of law, when another
regulatory official is acting as the group=wide supervisor of
an internationally active insurance group, the commissioner
shall acknowledge that regulatory official as the group=wide
supervisor of the internationally active insurance group.
However, the commissioner shall make a new determination or
acknowledgment as to the appropriate group=wide supervisor for
the internationally active insurance group in the event that a
material change in the internationally active insurance group
results in either of the following:
a. The internationally active insurance group's insurers
domiciled in Iowa holding the largest share of the group's
premiums, assets, or liabilities.
b. Iowa being the place of domicile of the top=tiered
insurers in the insurance holding company system of the
internationally active insurance group.
4. Pursuant to section 521A.6, the commissioner is
authorized to collect from any insurer registered pursuant to
section 521A.4 all information necessary to determine whether
it is appropriate for the commissioner to act as the group=wide
supervisor of an internationally active insurance group or
to acknowledge another regulatory official to act as the
group=wide supervisor of the internationally active insurance
group. Prior to issuing a determination or acknowledgment
pursuant to this section, the commissioner shall notify the
insurer registered pursuant to section 521A.4 and the ultimate
controlling person within the internationally active insurance
group of the pending determination or acknowledgment. The
insurer and the internationally active insurance group shall
have not less than thirty days to provide the commissioner with
additional information pertinent to the commissioner's pending
determination or acknowledgment. The commissioner shall
publish the identity of the internationally active insurance
groups that the commissioner has determined are subject to
group=wide supervision by the commissioner.
5. If a determination is made that the commissioner is the
appropriate group=wide supervisor for an internationally active
insurance group, the commissioner is authorized to engage in
any of the following group=wide supervision activities:
a. Assessing the enterprise risks within the internationally
active insurance group to ensure all of the following:
(1) That the material financial condition and liquidity
risks to members of the internationally active insurance group
that are engaged in the business of insurance are identified
by management.
(2) That reasonable and effective mitigation measures are
in place.
b. Requesting, from any member of an internationally active
insurance group subject to the commissioner's group=wide
supervision, information necessary and appropriate to assess
enterprise risk, including but not limited to information about
the members of the internationally active insurance group
regarding all of the following:
(1) Governance, risk assessment, and management.
(2) Capital adequacy.
(3) Material intercompany transactions.
c. Coordinating and, through the authority of the
regulatory officials of the jurisdictions where members of
the internationally active insurance group are domiciled,
compelling the development and implementation of reasonable
measures designed to ensure that the internationally active
insurance group is able to timely recognize and mitigate
enterprise risks to members of the internationally active
insurance group that are engaged in the business of insurance.
d. Communicating with other state, federal, and
international regulatory agencies for members within the
internationally active insurance group and sharing relevant
information, subject to the confidentiality provisions of
section 521A.7, through supervisory colleges as set forth in
section 521A.6A or otherwise.
e. Entering into agreements with or obtaining documentation
from any insurer registered under section 521A.4, any member
of an internationally active insurance group, and any other
state, federal, or international regulatory agency for members
of the internationally active insurance group, that provides
the basis for or otherwise clarifies the commissioner's role as
group=wide supervisor of an internationally active insurance
group, including provisions for resolving disputes with other
regulatory officials. Such agreements or documentation shall
not serve as evidence in any proceeding that any insurer or
person within an insurance company holding company system not
domiciled or incorporated in this state is doing business in
this state or is otherwise subject to jurisdiction in this
state.
f. Other activities of group=wide supervision, consistent
with the authority and purposes set forth in this section, as
considered necessary by the commissioner.
6. If the commissioner acknowledges that another regulatory
official from a jurisdiction that is not accredited by the
national association of insurance commissioners is the
group=wide supervisor of an internationally active insurance
group, the commissioner may reasonably cooperate through a
supervisory college or otherwise, with group=wide supervision
undertaken by that regulatory official provided that all of the
following occur:
a. The commissioner's cooperation is in compliance with the
laws of this state.
b. The regulatory official acknowledged as the group=wide
supervisor of the internationally active insurance group also
recognizes and cooperates with the commissioner's activities
as a group=wide supervisor for other internationally active
insurance groups, where applicable. If such recognition and
cooperation is not reasonably reciprocal, the commissioner may
refuse recognition and cooperation to that regulatory official.
7. The commissioner is authorized to enter into agreements
with or obtain documentation from any insurer registered under
section 521A.4, any affiliate of the insurer, and any other
state, federal, or international regulatory agency for members
of the internationally active insurance group, that provides
the basis for or otherwise clarifies another regulatory
official's role as group=wide supervisor of an internationally
active insurance group.
8. An insurer registered under section 521A.4 that is
subject to this section shall be liable for and shall pay the
reasonable expenses of the commissioner's participation in
the administration of this section, including the engagement
of attorneys, actuaries, accountants, and other experts not
otherwise a part of the commissioner's staff and all reasonable
travel expenses. Any persons so retained shall be under the
direction and control of the commissioner and shall act in a
purely advisory capacity.
9. The commissioner shall adopt rules pursuant to chapter
17A to administer this section.
Sec. 11. Section 521A.7, subsection 1, Code 2016, is amended
to read as follows:
1. All information, documents, and copies thereof obtained
by or disclosed to the commissioner or any other person in
the course of an examination or investigation made pursuant
to section 521A.6 or 521A.6A, and all information reported
or provided to the commissioner pursuant to sections 521A.4
and, 521A.5, 521A.6A, and 521A.6B, shall be given confidential
treatment and, shall not be subject to subpoena, shall not be
subject to discovery or admissible in evidence in a private
civil action, and shall not be made public by the commissioner
or any other person, except to insurance departments of other
states, without the prior written consent of the insurer to
which it pertains unless the commissioner, after giving the
insurer and its affiliates who would be affected thereby,
notice and opportunity to be heard, determines that the
interests of policyholders, shareholders, or the public will
be served by the publication thereof, in which event the
commissioner may publish all or any part thereof in such
manner as the commissioner may deem appropriate. However, the
commissioner is authorized to use the information, documents,
or copies obtained by, disclosed to, or reported or provided
to the commissioner as described in this subsection, in the
furtherance of any regulatory or legal action brought as a part
of the commissioner's official duties.
Sec. 12. Section 523I.808, Code 2016, is amended to read as
follows:
523I.808 Examination fee.
An examination fee shall be submitted with the cemetery's
annual report in an amount equal to five dollars for each
certificate of interment rights issued during the fiscal year
time period covered by the report. The cemetery may charge
the examination fee directly to the purchaser of the interment
rights.
Sec. 13. Section 523I.813, subsections 1 and 2, Code 2016,
are amended to read as follows:
1. A perpetual care cemetery shall file an annual report at
the end of each fiscal year reporting period of the cemetery.
2. The report shall be filed with the commissioner within
four months following the end of the cemetery's fiscal year
reporting period in the form required by the commissioner.
Sec. 14. APPLICABILITY. The following provision of this Act
is applicable to health insurance policies, contracts, or plans
that are delivered, issued for delivery, continued, or renewed
on or after January 1, 2017:
1. The section of this Act enacting section 514K.2.
LINDA UPMEYER
Speaker of the House
PAM JOCHUM
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2394, Eighty=sixth General Assembly.
CARMINE BOAL
Chief Clerk of the House
Approved , 2016
TERRY E. BRANSTAD
Governor
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