Bill Text: IA SF2104 | 2013-2014 | 85th General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: A bill for an act relating to the regulation of insurance company holding systems and providing assessments and penalties. (Formerly SSB 3090.) Effective 7-1-14.

Spectrum: Committee Bill

Status: (Passed) 2014-03-26 - Signed by Governor. S.J. 650. [SF2104 Detail]

Download: Iowa-2013-SF2104-Enrolled.html

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Senate File 2104
AN ACT
RELATING TO THE REGULATION OF INSURANCE COMPANY HOLDING SYSTEMS
AND PROVIDING ASSESSMENTS AND PENALTIES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 521A.1, subsection 3, Code 2014, is
amended to read as follows:
3. “Control” , including controlling, controlled by, and
under common control with, shall mean the possession, direct
or indirect, of the power to direct or cause the direction
of the management and policies of a person, whether through
the ownership of voting securities, by contract other than
a commercial contract for goods or nonmanagement services,
or otherwise, unless the power is solely the result of an
official position with or a corporate office held by the
person. Control shall be presumed to exist if any person,
directly or indirectly, owns, controls, holds with the power
to vote, or holds proxies representing, ten percent or more of
the voting securities of any other person. This presumption
may be rebutted by a showing made in the manner provided in
section 521A.3, subsections 1 through 5, inclusive, or section
521A.4, subsection 11, whichever is applicable, that control
does not exist in fact. The commissioner may determine, after
furnishing all persons in interest notice and opportunity to
be heard and making specific findings of fact to support the
determination, that control exists in fact, notwithstanding the
absence of a presumption to that effect.
Sec. 2. Section 521A.1, Code 2014, is amended by adding the
following new subsections:
NEW SUBSECTION . 4A. “Enterprise risk” means any activity,
circumstance, event, or series of events involving one or more

Senate File 2104, p. 2
affiliates of an insurer that, if not remedied promptly, is
likely to have a material adverse effect upon the financial
condition or liquidity of the insurer or its insurance holding
company system as a whole, including but not limited to
anything that would cause the insurer’s risk-based capital to
fall into a company-action-level event as set forth in section
521E.3 for insurers or section 521F.4 for health organizations,
or would cause the insurer to be in hazardous financial
condition pursuant to 191 IAC ch 110.
NEW SUBSECTION . 9A. “Supervisory college” means a temporary
or permanent forum for communication and cooperation between
regulators charged with supervision of an insurer or its
affiliates.
Sec. 3. Section 521A.3, subsection 1, paragraph a, Code
2014, is amended to read as follows:
a. No person other than the issuer shall make a tender offer
for or a request or invitation for tenders of, or enter into
any agreement to exchange securities for, seek to acquire, or
acquire, in the open market or otherwise, any voting security
of a domestic insurer if, after the consummation thereof,
such person would, directly or indirectly, or by conversion
or by exercise of any right to acquire, be in control of such
insurer, and no person shall enter into an agreement to merge
with or otherwise to acquire control of a domestic insurer
unless, at the time any such offer, request, or invitation is
first made or any such agreement is entered into, or prior to
the acquisition of such securities if no offer or agreement is
involved, such person has first filed with the commissioner
and has sent to such insurer, and such insurer has sent to its
shareholders, a statement containing the information required
by this section and such offer, request, invitation, agreement
or acquisition has been approved by the commissioner in the
manner hereinafter prescribed.
Sec. 4. Section 521A.3, subsection 1, Code 2014, is amended
by adding the following new paragraph:
NEW PARAGRAPH . 0b. For purposes of this section, any
controlling person of a domestic insurer seeking to divest its
controlling interest in the domestic insurer, in any manner,
shall file with the commissioner, with a copy to the insurer,
confidential notice of its proposed divestiture at least thirty
days prior to the cessation of control. The commissioner
shall determine those instances in which the party seeking to
divest or to acquire a controlling interest in an insurer,

Senate File 2104, p. 3
shall be required to file for and obtain approval of the
transaction. The information shall remain confidential until
the conclusion of the transaction unless the commissioner, in
the commissioner’s discretion, determines that confidential
treatment will interfere with enforcement of this section. If
the statement referred to in paragraph “a” is otherwise filed,
this paragraph “0b” shall not apply.
Sec. 5. Section 521A.3, subsection 2, paragraph a,
unnumbered paragraph 1, Code 2014, is amended to read as
follows:
The statement to be filed with the commissioner hereunder
shall be made under oath or affirmation and shall contain the
following information :
Sec. 6. Section 521A.3, subsection 2, paragraph a, Code
2014, is amended by adding the following new subparagraphs:
NEW SUBPARAGRAPH . (012) An agreement by the person required
to file the statement referred to in subsection 1 that the
person will provide the annual report specified in section
521A.4, subsection 11A for so long as control exists.
NEW SUBPARAGRAPH . (0012) An acknowledgment by the person
required to file the statement referred to in subsection 1
that the person and all subsidiaries within its control in
the insurance holding company system will provide information
to the commissioner upon request as necessary to evaluate
enterprise risk to the insurer.
Sec. 7. Section 521A.3, subsection 4, paragraph a, Code
2014, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH . (6) The merger or other acquisition of
control is not likely to be hazardous or prejudicial to the
insurance-buying public.
Sec. 8. Section 521A.3, subsection 4, paragraph b, Code
2014, is amended to read as follows:
b. The public hearing referred to in paragraph “a” shall be
held within thirty days after the commissioner has determined
that the statement required by subsection 1 is filed has
been completed and contains all the required information set
forth in subsection 2 , and at least twenty days’ notice of
the public hearing shall be given by the commissioner to the
person filing the statement and to the domestic insurer . Not
less than seven days’ notice of the public hearing shall be
given by the person filing the statement to the insurer and to
such other persons as may be designated by the commissioner.
The commissioner shall make a determination within thirty

Senate File 2104, p. 4
days after the conclusion of the hearing. At the hearing,
the person filing the statement, the insurer, any person to
whom notice of hearing was sent, and any other person whose
interests may be affected shall have the right to present
evidence, examine and cross-examine witnesses, and offer oral
and written arguments and in connection therewith shall be
entitled to conduct discovery proceedings in the same manner as
is presently allowed in the district court of this state. All
discovery proceedings shall be concluded not later than three
days prior to the commencement of the public hearing.
Sec. 9. Section 521A.3, subsection 4, Code 2014, is amended
by adding the following new paragraph:
NEW PARAGRAPH . 0c. If the proposed merger or other
acquisition of control will require the approval of more than
one commissioner, the public hearing referred to in paragraph
“a” may be held on a consolidated basis upon request of the
person filing the statement referred to in subsection 1.
Such person may file the statement referred to in subsection
1 with the national association of insurance commissioners
within five days of making the request for a public hearing.
The commissioner may opt out of a consolidated hearing, and
shall provide notice to the applicant of the opt-out within
ten days of the receipt of the statement referred to in
subsection 1. A hearing conducted on a consolidated basis
shall be public and shall be held within the United States
before the commissioners of the states in which the insurers
are domiciled. Such commissioners shall hear and receive
evidence. The commissioner may attend such hearing in person
or by telecommunication.
Sec. 10. Section 521A.4, subsection 2, Code 2014, is amended
by adding the following new paragraphs:
NEW PARAGRAPH . 0e. If requested by the commissioner, the
insurer shall include financial statements of or within an
insurance holding company system, including all affiliates.
Financial statements may include but are not limited to annual
audited financial statements filed with the United States
securities and exchange commission pursuant to the federal
Securities Act of 1933, as amended, or the federal Securities
Exchange Act of 1934, as amended. An insurer required to file
financial statements pursuant to this paragraph may satisfy the
request by providing the commissioner with the most recently
filed financial statements of the parent corporation that have
been filed with the United States securities and exchange

Senate File 2104, p. 5
commission.
NEW PARAGRAPH . 00e. Statements that the insurer’s board of
directors oversees corporate governance and internal controls
and that the insurer’s officers or senior management have
approved, implemented, and continue to maintain and monitor
corporate governance and internal control procedures.
NEW PARAGRAPH . f. Any other information required by the
commissioner by rule or by regulation.
Sec. 11. Section 521A.4, subsection 11, Code 2014, is
amended to read as follows:
11. Disclaimer. Any person may file with the commissioner
a disclaimer of affiliation with any authorized insurer or such
a disclaimer may be filed by such insurer or any member of an
insurance holding company system. The disclaimer shall fully
disclose all material relationships and basis for affiliation
between such person and such insurer as well as the basis for
disclaiming such affiliation. After a disclaimer has been
filed, the insurer shall be relieved of any duty to register or
report under this section which may arise out of the insurer’s
relationship with such person unless and until the commissioner
disallows such a disclaimer. The commissioner shall disallow
such a disclaimer only after furnishing all parties in interest
with notice and opportunity to be heard and after making
specific findings of fact to support such disallowance. A
disclaimer of affiliation shall be deemed to have been granted
unless the commissioner, within thirty days following receipt
of a complete disclaimer, notifies the filing party that the
disclaimer is disallowed. In the event of disallowance, the
disclaiming party may request an administrative hearing, which
shall be granted. The disclaiming party shall be relieved of
its duty to register under this section if approval of the
disclaimer has been granted by the commissioner, or if the
disclaimer is deemed to have been granted.
Sec. 12. Section 521A.4, Code 2014, is amended by adding the
following new subsection:
NEW SUBSECTION . 11A. Enterprise risk report. The ultimate
controlling person of every insurer subject to registration
shall also file an annual enterprise risk report. The report
shall, to the best of the ultimate controlling person’s
knowledge and belief, identify the material risks within the
insurance holding company system that could pose enterprise
risk to the insurer. The report shall be filed with the lead
state commissioner of the insurance holding company system as

Senate File 2104, p. 6
determined by the procedures within the financial analysis
handbook adopted by the national association of insurance
commissioners.
Sec. 13. Section 521A.4, subsection 12, Code 2014, is
amended to read as follows:
12. Violations. The failure to file a registration
statement or a summary of the registration statement or an
enterprise risk report required by this section within the time
specified for the filing is a violation of this section .
Sec. 14. Section 521A.5, subsection 1, paragraph a, Code
2014, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH . (02) Agreements for cost-sharing
services and management shall include such provisions as
required by rule issued by the commissioner.
Sec. 15. Section 521A.5, subsection 1, paragraph b,
subparagraph (5), Code 2014, is amended by striking the
subparagraph.
Sec. 16. Section 521A.5, subsection 1, paragraph c, Code
2014, is amended to read as follows:
c. A domestic insurer and a person in its holding company
system shall not enter into any of the following transactions,
unless the domestic insurer notifies the commissioner in
writing of its intention to enter into the transaction at least
thirty days prior to entering into the transaction or within a
shorter time permitted by the commissioner and the commissioner
has not disapproved of the transaction within the time period:
(1) All reinsurance pooling agreements.
(1) (2) All reinsurance agreements or modifications to such
agreements in which the reinsurance premium or a change in the
insurer’s liabilities , or the projected reinsurance premium
or a change in the insurer’s liabilities in any of the next
three years, equals or exceeds five percent of the insurer’s
surplus as regards policyholders, as of the next preceding
December 31, including those agreements which may require as
consideration the transfer of assets from an insurer to a
nonaffiliate, if an agreement or understanding exists between
the insurer and nonaffiliate that any portion of such assets
will be transferred to one or more affiliates of the insurer.
(2) (3) All management agreements, service contracts, tax
allocation agreements, guarantees, and all other cost-sharing
arrangements involving at least one-half of one percent of the
insurer’s surplus as of the next preceding December 31 . A
guarantee which is quantifiable as to amount is not subject to

Senate File 2104, p. 7
the notice requirements of this paragraph “c” unless it exceeds
the lesser of one-half of one percent of the insurer’s admitted
assets or ten percent of surplus as regards policyholders as of
the next preceding December 31. Further, all guarantees which
are not quantifiable as to amount are subject to the notice
requirements of this paragraph “c” .
(4) Direct or indirect acquisitions or investments in a
person that controls the insurer or in an affiliate of the
insurer in an amount which, together with its present holdings
in such investments, exceeds two and one-half percent of
the insurer’s surplus to policyholders. Direct or indirect
acquisitions or investments in subsidiaries acquired pursuant
to section 521A.2 or authorized under any other section of this
chapter, or in nonsubsidiary insurance affiliates that are
subject to the provisions of this chapter, are exempt from this
subparagraph.
(3) (5) Any material transactions specified by rule which
the commissioner determines may adversely affect the interests
of the domestic insurer’s policyholders.
Sec. 17. Section 521A.5, Code 2014, is amended by adding the
following new subsection:
NEW SUBSECTION . 4. Management of domestic insurers subject
to registration.
a. Notwithstanding the control of a domestic insurer by any
person, the officers and directors of the insurer shall not
thereby be relieved of any obligation or liability to which
they would otherwise be subject by law, and the insurer shall
be managed so as to assure its separate operating identity
consistent with this chapter.
b. Nothing in this section shall preclude a domestic insurer
from having or sharing a common management, or cooperative or
joint use of personnel, property, or services with one or more
other persons under arrangements meeting the standards of this
section.
c. Not less than one-third of the directors of a domestic
insurer, and not less than one-third of the members of each
committee of the board of directors of any domestic insurer,
shall be persons who are not officers or employees of the
insurer or of any entity controlling, controlled by, or under
common control with the insurer and who are not beneficial
owners of a controlling interest in the voting stock of the
insurer or entity. At least one such person must be included
in any quorum for the transaction of business at any meeting

Senate File 2104, p. 8
of the board of directors or any committee of the board of
directors.
d. The board of directors of a domestic insurer shall
establish one or more committees comprised solely of directors
who are not officers or employees of the insurer or of any
entity controlling, controlled by, or under common control with
the insurer and who are not beneficial owners of a controlling
interest in the voting stock of the insurer or any such entity.
The committee or committees shall have responsibility for
recommending or nominating candidates for director for election
by shareholders or policyholders, evaluating the performance
of officers deemed to be principal officers of the insurer,
and recommending to the board of directors the selection and
compensation of the principal officers.
e. The provisions of paragraphs “c” and “d” shall not apply
to a domestic insurer if the person controlling the insurer,
such as an insurer, a mutual insurance holding company, or
a publicly held corporation, has a board of directors and
committees of the board of directors that meet the requirements
of paragraphs “c” and “d” with respect to such controlling
entity.
f. An insurer may make application to the commissioner
for a waiver from the requirements of this subsection if
the insurer’s annual direct written and assumed premium,
excluding premiums reinsured with the federal crop insurance
corporation and federal flood program, is less than three
hundred million dollars. An insurer may also make application
to the commissioner for a waiver from the requirements of this
subsection based upon unique circumstances. The commissioner
may consider various factors including but not limited to
the type of business entity, volume of business written,
availability of qualified board members, or the ownership or
organizational structure of the entity.
Sec. 18. Section 521A.6, Code 2014, is amended to read as
follows:
521A.6 Examination.
1. Power of commissioner. Subject to the limitation
contained in this section and in addition to the powers
which the commissioner has under chapter 507 relating to the
examination of insurers, the commissioner may also order an
insurer registered under section 521A.4 to produce records,
books, or other information papers in the possession of the
insurer or its affiliates as reasonably necessary to ascertain

Senate File 2104, p. 9
the financial condition of the insurer or to determine
compliance with this chapter . If the insurer fails to comply
with the order, the commissioner may examine the affiliates
to obtain the information shall have the power to examine any
insurer registered under section 521A.4 and its affiliates to
ascertain the financial condition of the insurer, including
the enterprise risk to the insurer by the ultimate controlling
party, or by any entity or combination of entities within the
insurance holding company system, or by the insurance holding
company system on a consolidated basis .
2. Access to books and records —— penalty.
a. The commissioner may order an insurer registered under
section 521A.4 to produce records, books, or other information
papers in the possession of the insurer or its affiliates as
reasonably necessary or to determine compliance with this
chapter.
b. To determine compliance with this chapter, the
commissioner may order any insurer registered under section
521A.4 to produce information not in the possession of the
insurer if the insurer can obtain access to such information
pursuant to a contractual relationship, statutory obligation,
or other method. In the event the insurer cannot obtain the
information requested by the commissioner, the insurer shall
provide the commissioner a detailed explanation of the reason
that the insurer cannot obtain the information and the identity
of the holder of the information. Whenever it appears to the
commissioner that the detailed explanation is without merit,
the commissioner may require, after notice and hearing, the
insurer to pay a penalty of five hundred dollars for each day’s
delay, or may suspend or revoke the insurer’s certificate of
authority.
3. Compelling production. In the event the insurer fails
to comply with an order, the commissioner shall have the power
to examine the affiliates to obtain the information. The
commissioner shall also have the power to issue subpoenas, to
administer oaths, and to examine under oath any person for
purposes of determining compliance with this section. Upon
the failure or refusal of any person to obey a subpoena, the
commissioner may petition a court of competent jurisdiction,
and upon proper showing, the court may enter an order
compelling the witness to appear and testify or produce
documentary evidence. Failure to obey the court order shall
be punishable as contempt of court. Every person shall be

Senate File 2104, p. 10
obliged to attend as a witness at the place specified in the
subpoena, when subpoenaed, anywhere within the state. Such
a person shall be entitled to the same fees and mileage, if
claimed, as a witness in district court, which fees, mileage,
and actual expense, if any, necessarily incurred in securing
the attendance of witnesses, and their testimony, shall be
itemized and charged against, and be paid by, the company being
examined.
2. 4. Use of consultants. The commissioner may retain at
the registered insurer’s expense such attorneys, actuaries,
accountants and other experts not otherwise a part of the
commissioner’s staff as shall be reasonably necessary to assist
in the conduct of the examination under subsection 1 , 2, or 3
of this section . Any persons so retained shall be under the
direction and control of the commissioner and shall act in a
purely advisory capacity.
3. 5. Expenses. Each registered insurer producing for
examination records, books and papers pursuant to subsection 1 ,
2, or 3 of this section shall be liable for and shall pay the
expense of such examination in accordance with section 507.7 .
Sec. 19. NEW SECTION . 521A.6A Supervisory colleges.
1. Power of commissioner. 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:
a. Initiating the establishment of a supervisory college.
b. Clarifying the membership and participation of other
supervisors in the supervisory college.
c. Clarifying the functions of the supervisory college and
the role of other regulators, including the establishment of a
group-wide supervisor.
d. Coordinating the ongoing activities of the supervisory
college, including planning meetings, supervisory activities,
and processes for information sharing.
e. Establishing a crisis management plan.
2. Selection of group-wide supervisor. In the event a
group-wide supervisor is established for a supervisory college
as described in subsection 1, the commissioner is authorized,

Senate File 2104, p. 11
but not required, to act as the group-wide supervisor. In
order to determine whether the commissioner or another chief
insurance regulatory official is the appropriate group-wide
supervisor, the commissioner shall, in cooperation with other
supervisors, consider the following factors and the relative
scale of each:
a. The extent to which the insurance holding company
system’s insurance operations are domiciled in Iowa.
b. The location where the insurance holding company system
is based or the place of domicile of the insurance holding
company system’s ultimate controlling person.
c. The locations of the insurance holding company system’s
executive offices.
d. The locations of origin of the insurance business of the
insurance holding company system.
e. The locations of the assets and liabilities of the
insurance holding company system.
f. The locations of the business operations and activities
of the insurance holding company system.
g. Whether another chief insurance regulatory official is
acting or seeking to act as the lead group-wide supervisor
under a regulatory system that the commissioner determines to
be either of the following:
(1) Substantially similar to that provided under the laws of
the state of Iowa.
(2) Otherwise sufficient in terms of provision of
group-wide supervision, enterprise risk analysis, and
cooperation with other chief insurance regulatory officials.
h. Whether a chief insurance regulatory official acting
or seeking to act as the lead group-wide supervisor provides
the commissioner with reasonably reciprocal recognition and
cooperation.
3. Commissioner as group-wide supervisor. If the
commissioner is the group-wide supervisor as described in
subsection 2, the commissioner is authorized to engage in
conducting and coordinating any of the following group-wide
supervision activities:
a. Assessing the enterprise risks within the international
insurance group in accordance with the “own risk and solvency
assessments” requirements of chapter 522.
b. Requesting from any member of an international insurance
group subject to the commissioner’s supervision information
necessary and appropriate to assess enterprise risk in

Senate File 2104, p. 12
accordance with chapter 522.
c. Communicating with other insurance regulatory officials
regarding members within the international insurance group and
sharing relevant information, subject to the confidentiality
provisions of section 521A.7, through supervisory colleges as
set forth in this section.
d. Other group-wide supervisory activities as considered
appropriate by the commissioner and as defined by the
commissioner by rule.
4. Expenses —— assessment. Each registered insurer
subject to this section shall be liable for and shall pay the
reasonable expenses of the commissioner’s participation in a
supervisory college in accordance with subsection 5, including
reasonable travel expenses. For purposes of this section,
a supervisory college may be convened as either a temporary
or permanent forum for communication and cooperation between
the regulators charged with the supervision of the insurer or
its affiliates, and the commissioner may establish a regular
assessment to the insurer for the payment of these expenses.
5. Supervisory college. In order to assess the business
strategy, financial position, legal and regulatory position,
risk exposure, risk management and governance processes,
and as part of the examination of individual insurers
in accordance with section 521A.6, the commissioner may
participate in a supervisory college with other regulators
charged with supervision of an insurer or its affiliates,
including other state, federal, and international regulatory
agencies. The commissioner may enter into agreements in
accordance with section 521A.7, subsection 3, providing the
basis for cooperation between the commissioner and the other
regulatory agencies, and the activities of the supervisory
college. Nothing in this section shall delegate to the
supervisory college the authority of the commissioner to
regulate or supervise the insurer or its affiliates within the
commissioner’s jurisdiction.
Sec. 20. Section 521A.7, Code 2014, is amended to read as
follows:
521A.7 Confidential treatment.
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
pursuant to sections 521A.4 and 521A.5 , shall be given

Senate File 2104, p. 13
confidential treatment and shall not be subject to subpoena
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.
2. Neither the commissioner nor any person who received
documents, materials, or other information while acting under
the authority of the commissioner or with whom such documents,
materials, or other information are shared pursuant to this
chapter shall be permitted or required to testify in any
private civil action concerning any confidential documents,
materials, or other information subject to subsection 1.
3. In order to assist in the performance of the
commissioner’s duties, the commissioner:
a. May share documents, materials, or other information,
including the confidential and privileged documents, materials,
or information subject to subsection 1, with other state,
federal, and international regulatory agencies, with the
national association of insurance commissioners and its
affiliates and subsidiaries, and with state, federal, and
international law enforcement authorities, including members
of any supervisory college described in section 521A.6A,
provided that the recipient agrees in writing to maintain
the confidentiality and privileged status of the document,
material, or other information, and has verified in writing the
legal authority to maintain confidentiality.
b. Notwithstanding paragraph “a” , the commissioner may only
share confidential and privileged documents, materials, or
information filed pursuant to section 521A.4, subsection 11A,
with commissioners of states having statutes or regulations
substantially similar to subsection 1 of this section and who
have agreed in writing not to disclose such information.
c. May receive documents, materials, or information,
including otherwise confidential and privileged documents,
materials, or information from the national association of
insurance commissioners and its affiliates and subsidiaries and
from regulatory and law enforcement officials of other foreign

Senate File 2104, p. 14
or domestic jurisdictions, and shall maintain as confidential
or privileged any document, material, or information received
with notice or the understanding that it is confidential or
privileged under the laws of the jurisdiction that is the
source of the document, material, or information.
d. Shall enter into written agreements with the national
association of insurance commissioners governing sharing and
use of information provided pursuant to this chapter consistent
with this subsection that shall do all of the following:
(1) Specify procedures and protocols regarding the
confidentiality and security of information shared with
the national association of insurance commissioners and
subsidiaries pursuant to this chapter, including procedures
and protocols for sharing by the association with other state,
federal, or international regulators.
(2) Specify that ownership of information shared with
the national association of insurance commissioners and its
affiliates and subsidiaries pursuant to this chapter remains
with the commissioner and the association’s use of the
information is subject to the direction of the commissioner.
(3) Require prompt notice to be given to an insurer whose
confidential information in the possession of the national
association of insurance commissioners pursuant to this chapter
is subject to a request or subpoena to the association for
disclosure or production.
(4) Require the national association of insurance
commissioners and its affiliates and subsidiaries to consent to
intervention by an insurer in any judicial or administrative
action in which the association and its affiliates and
subsidiaries may be required to disclose confidential
information about the insurer shared with the association and
its affiliates and subsidiaries pursuant to this chapter.
4. The sharing of information by the commissioner pursuant
to this chapter shall not constitute a delegation of regulatory
authority or rulemaking, and the commissioner is solely
responsible for the administration, execution, and enforcement
of the provisions of this chapter.
5. No waiver of any applicable privilege or claim of
confidentiality in the documents, materials, or information
shall occur as a result of disclosure to the commissioner
under this section or as a result of sharing as authorized in
subsection 3.
6. Documents, materials, or other information in the

Senate File 2104, p. 15
possession or control of the national association of insurance
commissioners pursuant to this chapter shall be confidential
by law and privileged, shall not be subject to chapter 22,
shall not be subject to subpoena, and shall not be subject
to discovery or admissible in evidence in any private civil
action.
______________________________
PAM JOCHUM
President of the Senate
______________________________
KRAIG PAULSEN
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 2104, Eighty-fifth General Assembly.
______________________________
MICHAEL E. MARSHALL
Secretary of the Senate
Approved _______________, 2014
______________________________
TERRY E. BRANSTAD
Governor