Bill Summary – FastDemocracy

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                       AMY SINCLAIR
     Speaker of the House               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
Statutes affected: 
Introduced: 507B.4
Enrolled: 507B.4