Bill Text: IA HF316 | 2023-2024 | 90th General Assembly | Enrolled
Bill Title: A bill for an act relating to value-added products or services offered by insurers or producers. (Formerly HSB 135.) Effective date: 07/01/2023.
Spectrum: Committee Bill
Status: (Passed) 2023-04-27 - Signed by Governor. H.J. 916. [HF316 Detail]
Download: Iowa-2023-HF316-Enrolled.html
House
File
316
-
Enrolled
House
File
316
AN
ACT
RELATING
TO
VALUE-ADDED
PRODUCTS
OR
SERVICES
OFFERED
BY
INSURERS
OR
PRODUCERS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
507B.4,
subsection
2,
Code
2023,
is
amended
to
read
as
follows:
2.
a.
For
purposes
of
subsection
3
,
paragraphs
“k”
,
“l”
,
and
“m”
,
“personal
lines
property
and
casualty
insurance”
means
insurance
sold
to
individuals
and
families
primarily
for
noncommercial
purposes
as
provided
in
chapter
522B
.
b.
For
purposes
of
subsection
3,
paragraph
“i”
,
subparagraph
(2),
subparagraph
division
(d),
“customer”
means
a
policyholder,
potential
policyholder,
certificate
holder,
potential
certificate
holder,
an
insured,
potential
insured,
or
an
applicant.
Sec.
2.
Section
507B.4,
subsection
3,
paragraph
i,
subparagraph
(2),
unnumbered
paragraph
1,
Code
2023,
is
amended
to
read
as
follows:
Nothing
in
paragraph
“g”
or
subparagraph
Subparagraphs
(1)
of
this
and
(3),
and
paragraph
“i”
“g”
,
shall
not
be
construed
as
including
within
the
definition
of
to
include
any
of
the
following
practices
in
the
definition
of
unfair
discrimination
or
rebates
any
of
the
following
practices
:
Sec.
3.
Section
507B.4,
subsection
3,
paragraph
i,
subparagraph
(2),
Code
2023,
is
amended
by
adding
the
following
new
subparagraph
division:
House
File
316,
p.
2
NEW
SUBPARAGRAPH
DIVISION
.
(d)
The
offer
or
provision,
at
no
or
reduced
cost,
by
an
insurer
or
producer
by
or
through
an
employee,
affiliate,
or
third-party
representative,
of
a
value-added
product
or
service
that
is
not
specified
in
the
policy
of
insurance
if
the
value-added
product
or
service
that
is
offered
or
provided
meets
all
of
the
following
criteria:
(i)
The
product
or
service
relates
to
the
policy
of
insurance.
(ii)
The
product
or
service
is
designed
primarily
to
accomplish
at
least
one
of
the
following:
(A)
Provide
loss
mitigation
or
loss
control.
(B)
Reduce
the
customer’s
claim
costs
or
claim
settlement
costs.
(C)
Provide
the
customer
with
education
regarding
liability
risks,
or
the
risk
of
loss
to
persons
or
property.
(D)
Monitor
or
assess
risk,
identify
sources
of
risk,
or
develop
strategies
for
eliminating
or
reducing
risk.
(E)
Enhance
the
customer’s
health.
(F)
Enhance
the
customer’s
financial
wellness
through
education
or
financial
planning
services.
(G)
Provide
the
customer
with
post-loss
services.
(H)
Incentivize
behavioral
changes
to
improve
the
health
of,
or
to
reduce
the
risk
of
death
or
disability
of,
a
customer.
(I)
Assist
in
the
administration
of
employee
or
retiree
benefit
insurance
coverage.
(iii)
The
cost
to
the
insurer
or
producer
offering
or
providing
the
product
or
service
to
a
customer
must
be
reasonable
in
comparison
to
the
customer’s
premiums
and
insurance
coverage
for
the
policy
class.
(iv)
If
the
insurer
or
producer
provides
the
product
or
service
offered,
the
insurer
or
producer
shall
ensure
that
the
customer
is
provided
with
contact
information
for
customer
service
or
technical
support
personnel
who
can
assist
the
customer
with
questions
regarding
the
product
or
service.
(v)
The
availability
of
the
value-added
product
or
service
shall
be
based
on
documented
objective
criteria
and
the
value-added
product
or
service
must
be
offered
to
all
customers
in
a
nondiscriminatory
manner.
The
documented
objective
House
File
316,
p.
3
criteria
shall
be
maintained
by
the
insurer
or
producer
and
provided
to
the
commissioner
upon
request.
If
an
insurer
or
producer
does
not
have
sufficient
documented
objective
criteria,
but
has
a
good-faith
belief
that
the
product
or
service
meets
the
criteria
under
subparagraph
subdivision
(ii),
the
insurer
or
producer
may
offer
or
provide
the
product
or
service
in
a
nondiscriminatory
manner
to
customers
as
part
of
a
pilot
program
or
a
test
program
for
up
to
one
year.
Prior
to
launching
the
pilot
program
or
test
program,
the
insurer
or
producer
must
notify
the
commissioner.
If
the
commissioner
does
not
object
to
the
pilot
program
or
test
program
within
twenty-one
calendar
days
from
the
date
of
notice,
the
insurer
or
producer
may
proceed
with
the
pilot
program
or
test
program.
(vi)
The
commissioner
may
adopt
rules
pursuant
to
chapter
17A
to
administer
this
subparagraph
division.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
316,
Ninetieth
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2023
______________________________
KIM
REYNOLDS
Governor
