Bill Text: IA SSB1168 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for an act relating to the duties and responsibilities of insurance producers under insurance policies or contracts.
Spectrum: Unknown
Status: (N/A - Dead) 2013-02-13 - Judiciary: Hogg Chair,Horn, and Schneider. [SSB1168 Detail]
Download: Iowa-2013-SSB1168-Introduced.html
Senate
Study
Bill
1168
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
HOGG)
A
BILL
FOR
An
Act
relating
to
the
duties
and
responsibilities
of
insurance
1
producers
under
insurance
policies
or
contracts.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
522B.1,
Code
2013,
is
amended
by
adding
1
the
following
new
subsections:
2
NEW
SUBSECTION
.
7A.
“Intended
beneficiary”
means
a
person
3
who
is
not
listed
as
a
beneficiary
of
an
insurance
policy
or
4
contract
in
the
records
of
the
insurer.
5
NEW
SUBSECTION
.
12A.
“Policy
owner”
means
the
person
who
6
is
identified
as
the
legal
owner
of
an
insurance
policy
or
7
contract
under
the
terms
of
the
insurance
policy
or
contract,
8
or
who
is
otherwise
vested
with
legal
title
to
the
insurance
9
policy
or
contract
through
a
valid
assignment
completed
in
10
accordance
with
the
terms
of
the
insurance
policy
or
contract
11
and
is
properly
recorded
as
the
legal
owner
of
the
policy
or
12
contract
in
the
records
of
the
insurer.
“Policy
owner”
does
13
not
include
a
person
who
has
a
mere
beneficial
interest
in
an
14
insurance
policy
or
contract.
15
Sec.
2.
Section
522B.11,
subsection
7,
Code
2013,
is
amended
16
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
17
following:
18
7.
a.
Unless
otherwise
specified
in
this
chapter,
the
19
duties
and
responsibilities
of
an
insurance
producer
are
20
limited
to
using
reasonable
care,
diligence,
and
judgment
in
21
procuring
the
insurance
requested
of
the
insurance
producer
by
22
the
policy
owner.
23
b.
An
insurance
producer
has
no
duty
to
change
the
24
beneficiary
of
an
insurance
policy
or
contract
unless
clear
25
written
evidence
of
the
policy
owner’s
intent
to
name
an
26
intended
beneficiary
as
a
beneficiary
of
the
policy
or
contract
27
is
presented
to
the
insurance
producer
or
insurer
in
the
manner
28
required
by
the
policy
or
contract,
prior
to
the
payment
of
any
29
insurance
benefits
under
the
policy
or
contract.
Such
evidence
30
shall
be
provided
in
the
same
manner
as
a
claim
for
benefits
31
under
the
policy
or
contract.
32
c.
An
insurance
producer
is
not
in
the
business
of
supplying
33
information
to
others
and
has
no
duty
to
provide
advice
or
34
information
unless
the
insurance
producer
holds
oneself
out
as
35
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an
insurance
specialist,
consultant,
or
counselor
and
receives
1
compensation
for
consultation
and
advice
apart
from
commissions
2
paid
by
an
insurer.
3
d.
An
insurance
producer
may
agree
to
accept
additional
4
duties
and
responsibilities
not
specified
in
this
chapter.
Any
5
agreement
by
an
insurance
producer
to
accept
such
additional
6
duties
and
responsibilities
shall
be
in
writing
and
signed
by
7
the
insurance
producer
and
the
policy
owner.
8
e.
The
general
assembly
declares
that
the
holdings
of
9
Langwith
v.
Am.
Nat’l
Gen.
Ins.
Co.,
793
N.W.2d
215
(Iowa
2010)
10
and
Pitts
v.
Farm
Bureau
Life
Ins.
Co.,
818
N.W.2d
91
(Iowa
11
2012)
are
abrogated
to
the
extent
that
they
impose
higher
or
12
greater
duties
and
responsibilities
on
insurance
producers
than
13
those
set
forth
in
this
subsection.
14
EXPLANATION
15
This
bill
relates
to
the
duties
and
responsibilities
of
16
insurance
producers
licensed
under
Code
chapter
522B.
17
The
bill
provides
that
an
“intended
beneficiary”
of
an
18
insurance
policy
or
contract
is
a
person
who
is
not
listed
as
19
a
beneficiary
in
the
insurer’s
records.
A
“policy
owner”
is
20
defined
as
the
person
who
is
identified
as
the
legal
owner
of
21
an
insurance
policy
or
contract
under
the
terms
of
the
policy
22
or
contract,
or
who
is
otherwise
vested
with
legal
title
to
23
the
policy
or
contract
through
a
valid
assignment
completed
24
in
accordance
with
the
terms
of
the
policy
or
contract
and
is
25
properly
recorded
as
the
legal
owner
in
the
records
of
the
26
insurer.
“Policy
owner”
does
not
include
a
person
who
has
a
27
mere
beneficial
interest
in
an
insurance
policy
or
contract.
28
The
bill
provides
that
unless
otherwise
specified
in
Code
29
chapter
522B,
the
duties
and
responsibilities
of
an
insurance
30
producer
are
limited
to
using
reasonable
care,
diligence,
31
and
judgment
in
procuring
the
insurance
requested
by
the
32
policy
owner.
An
insurance
producer
has
no
duty
to
change
the
33
beneficiary
of
an
insurance
policy
or
contract
unless
clear
34
written
evidence
of
such
intent
is
presented
to
the
insurance
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producer
or
insurer
in
the
manner
required
in
the
policy
or
1
contract,
prior
to
the
payment
of
insurance
benefits.
The
2
evidence
must
be
provided
in
the
same
manner
as
a
claim
for
3
benefits.
4
The
bill
provides
that
an
insurance
producer
is
not
in
the
5
business
of
providing
information
to
others
and
has
no
duty
to
6
provide
advice
or
information
unless
the
insurance
producer
7
holds
oneself
out
as
an
insurance
specialist,
consultant,
8
or
counselor
and
receives
compensation
for
consultation
9
and
advice
apart
from
commissions
paid
by
an
insurer.
An
10
insurance
producer
may
agree
to
accept
additional
duties
and
11
responsibilities
pursuant
to
a
written
agreement
signed
by
the
12
insurance
producer
and
the
policy
owner.
13
The
bill
declares
the
intent
of
the
general
assembly
to
14
abrogate
the
holdings
of
two
recent
cases
decided
by
the
Iowa
15
supreme
court
to
the
extent
that
those
holdings
impose
higher
16
or
greater
duties
and
responsibilities
on
insurance
producers
17
than
those
set
forth
in
the
bill.
18
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