Bill Text: IA HSB554 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to the insurance commissioner's authority concerning insurance producers, business entity producers, and preneed sellers.(See HF 2263.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-02-01 - Committee report approving bill, renumbered as HF 2263. [HSB554 Detail]
Download: Iowa-2023-HSB554-Introduced.html
House
Study
Bill
554
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
INSURANCE
AND
FINANCIAL
SERVICES
BILL)
A
BILL
FOR
An
Act
relating
to
the
insurance
commissioner’s
authority
1
concerning
insurance
producers,
business
entity
producers,
2
and
preneed
sellers.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
505.17,
subsection
1,
paragraph
a,
Code
1
2024,
is
amended
to
read
as
follows:
2
a.
Information,
records,
and
documents
utilized
for
the
3
purpose
of,
or
in
the
course
of,
investigation,
regulation,
4
or
examination
of
an
insurance
company
,
or
insurance
holding
5
company,
an
individual
insurance
producer,
or
a
business
entity
6
producer
received
by
the
division
from
some
other
governmental
7
entity
which
treats
such
information,
records,
and
documents
8
as
confidential,
are
confidential
and
shall
not
be
disclosed
9
by
the
division
and
are
not
subject
to
subpoena.
Such
10
information,
records,
and
documents
do
not
constitute
a
public
11
record
under
chapter
22
.
12
Sec.
2.
Section
522B.11,
subsection
1,
paragraph
q,
Code
13
2024,
is
amended
to
read
as
follows:
14
q.
Is
the
subject
of
an
order
of
the
securities
15
administrator
of
this
state
or
any
other
state,
province,
16
district,
or
territory,
denying,
suspending,
revoking,
17
or
otherwise
taking
action
against
a
registration
as
a
18
broker-dealer,
agent,
investment
adviser,
or
investment
adviser
19
representative
issued
by
any
of
the
following:
20
(1)
The
securities
administrator
of
this
state
or
any
other
21
state,
province,
district,
or
territory.
22
(2)
The
federal
securities
and
exchange
commission.
23
(3)
The
financial
industry
regulatory
authority
.
24
Sec.
3.
Section
523A.807,
subsection
3,
paragraph
a,
Code
25
2024,
is
amended
to
read
as
follows:
26
a.
Payment
of
a
civil
penalty
of
not
more
than
one
thousand
27
dollars
for
each
violation,
but
not
exceeding
an
aggregate
of
28
ten
thousand
dollars
during
any
six-month
period,
except
that
29
if
the
commissioner
finds
that
the
person
knew
or
reasonably
30
should
have
known
that
the
person
was
in
violation
of
such
31
provisions
a
section
or
rules
adopted
pursuant
thereto
to
a
32
section
,
the
penalty
shall
be
not
more
than
five
thousand
33
dollars
for
each
violation,
but
and
not
exceeding
exceed
an
34
aggregate
of
fifty
thousand
dollars
during
any
six-month
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S.F.
_____
H.F.
_____
period.
The
commissioner
shall
assess
the
penalty
on
the
1
employer
of
an
individual
and
not
on
the
individual,
if
2
the
commissioner
finds
that
the
violations
committed
by
the
3
individual
were
directed,
encouraged,
condoned,
ignored,
or
4
ratified
by
the
individual’s
employer.
Any
civil
penalties
5
collected
under
this
subsection
shall
be
deposited
as
provided
6
in
section
505.7
.
7
EXPLANATION
8
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
9
the
explanation’s
substance
by
the
members
of
the
general
assembly.
10
This
bill
relates
to
the
insurance
commissioner’s
authority
11
concerning
insurance
producers,
business
entity
producers,
and
12
preneed
sellers.
13
Under
current
law,
confidential
information
includes
14
the
information,
records,
and
documents
utilized
for
the
15
investigation,
regulation,
or
examination
of
an
insurance
16
company
or
insurance
holding
company.
The
bill
also
applies
17
to
the
confidential
information
of
an
individual
insurance
18
producer
or
a
business
entity
producer.
Such
information,
19
records,
and
documents
are
confidential,
and
shall
not
be
20
disclosed
by
the
insurance
division
and
are
not
subject
to
21
subpoena.
22
Current
law
permits
the
commissioner
to
place
on
probation,
23
or
suspend,
revoke,
or
refuse
to
issue
or
renew
an
insurance
24
producer’s
license,
or
levy
a
civil
penalty,
if
the
25
insurance
producer
is
the
subject
of
an
order
of
a
securities
26
administrator.
The
bill
includes
an
insurance
producer
that
is
27
the
subject
of
an
order
of
the
federal
securities
and
exchange
28
commission
or
the
financial
industry
regulatory
authority.
29
The
penalty
for
a
violation
of
Code
chapter
523A
shall
be
a
30
civil
penalty
of
not
more
than
$1,000
for
each
violation,
not
31
to
exceed
an
aggregate
of
$10,000
during
any
six-month
period,
32
except
if
the
commissioner
finds
that
the
person
knew
or
33
reasonably
should
have
known
that
the
person
was
in
violation
34
of
specific
laws
or
rules
related
to
cemetery
and
funeral
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