House File 2263 - Enrolled
House File 2263
AN ACT
RELATING TO THE INSURANCE COMMISSIONER’S AUTHORITY CONCERNING
INSURANCE PRODUCERS, BUSINESS ENTITY PRODUCERS, AND
PRENEED SELLERS, CONTINUING CARE RETIREMENT FACILITIES, AND
CONTINUING CARE RETIREMENT PROGRAMS.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 505.17, subsection 1, paragraph a, Code
2 2024, is amended to read as follows:
3 a. Information, records, and documents utilized for the
4 purpose of, or in the course of, investigation, regulation,
5 or examination of an insurance company, or insurance holding
6 company, an individual insurance producer, or a business entity
7 producer received by the division from some other governmental
8 entity which treats such information, records, and documents
9 as confidential, are confidential and shall not be disclosed
10 by the division and are not subject to subpoena. Such
11 information, records, and documents do not constitute a public
12 record under chapter 22.
13 Sec. 2. Section 522B.11, subsection 1, paragraph q, Code
14 2024, is amended to read as follows:
15 q. Is the subject of an order of the securities
16 administrator of this state or any other state, province,
House File 2263, p. 2
17 district, or territory, denying, suspending, revoking,
18 or otherwise taking action against a registration as a
19 broker-dealer, agent, investment adviser, or investment adviser
20 representative issued by any of the following:
21 (1) The securities administrator of this state or any other
22 state, province, district, or territory.
23 (2) The federal securities and exchange commission.
24 (3) The financial industry regulatory authority.
25 Sec. 3. Section 523A.807, subsection 3, paragraph a, Code
26 2024, is amended to read as follows:
27 a. Payment of a civil penalty of not more than one thousand
28 dollars for each violation, but not exceeding an aggregate of
29 ten thousand dollars during any six-month period, except that
30 if the commissioner finds that the person knew or reasonably
31 should have known that the person was in violation of such
32 provisions a section or rules adopted pursuant thereto to a
33 section, the penalty shall be not more than five thousand
34 dollars for each violation, but and not exceeding exceed an
35 aggregate of fifty thousand dollars during any six-month
1 period. The commissioner shall assess the penalty on the
2 employer of an individual and not on the individual, if
3 the commissioner finds that the violations committed by the
4 individual were directed, encouraged, condoned, ignored, or
5 ratified by the individual’s employer. Any civil penalties
6 collected under this subsection shall be deposited as provided
7 in section 505.7.
8 Sec. 4. Section 523D.1, subsections 2, 3, 4, 8, and 9, Code
9 2024, are amended to read as follows:
10 2. “Continuing care” means housing together with a continuum
11 of supportive services, home health services, nursing services,
12 medical services, or other health related services, furnished
13 to a resident, regardless of whether or not the lodging and
14 services are provided at the same location, together with
15 housing for residents that elect to live in a facility of
16 a provider, with or without other periodic charges, and
17 pursuant to one or more contracts effective for the life of the
18 resident or a period in excess of one year, including mutually
19 cancelable contracts, and in consideration of an entrance fee.
House File 2263, p. 3
20 3. “Continuing care retirement community” means a facility or
21 program which provides continuing care to residents other than
22 residents related by consanguinity or affinity to the person
23 furnishing their care.
24 4. “Entrance fee” means an initial or deferred transfer to
25 a provider of a sum of money or other property made or promised
26 to be made as full or partial consideration for acceptance of
27 a specified individual in into a facility or a program if the
28 amount exceeds either of the following:
29 a. Five thousand dollars.
30 b. The sum of the regular periodic charges for six months
31 of residency.
32 8. “Provider” means a person undertaking through a lease or
33 other type of agreement to provide care in or from a continuing
34 care retirement community or senior adult congregate living
35 facility, even if that person does not own the facility.
1 9. “Resident” means an individual, sixty years of age or
2 older, entitled to receive care in from a continuing care
3 retirement community or a senior adult congregate living
4 facility.
5 Sec. 5. Section 523D.1, Code 2024, is amended by adding the
6 following new subsection:
7 NEW SUBSECTION. 7A. “Program” means an organized set of
8 measures or activities undertaken by a provider to provide
9 continuing care services to an individual.
10 Sec. 6. Section 523D.2, Code 2024, is amended to read as
11 follows:
12 523D.2 Application of chapter.
13 This chapter applies to a provider who executes a contract
14 to provide continuing care or senior adult congregate living
15 services in a facility or program, or extend extends the term
16 of an existing contract to provide continuing care or senior
17 adult congregate living services in a facility or program, if
18 the contract requires or permits the payment of an entrance fee
19 to a person, and any of the following apply:
20 1. The facility or program is or will be located in this
21 state.
22 2. The provider or a person acting on the provider’s behalf
23 solicits the contract within this state for a facility or
House File 2263, p. 4
24 program located in this state and the person to be provided
25 with continuing care or senior adult congregate living services
26 under the contract resides within this state at the time of the
27 solicitation.
28 Sec. 7. Section 523D.2A, unnumbered paragraph 1, Code 2024,
29 is amended to read as follows:
30 On or before March 1 of each year, a provider shall
31 file a certification with the commissioner in a manner and
32 according to requirements established by the commissioner. The
33 certification shall be accompanied by a one hundred dollar
34 administrative fee which fee shall be deposited as provided in
35 section 505.7. The certification shall attest that according
1 to the best knowledge and belief of the attesting party,
2 the facility or program administered by the provider is in
3 compliance with the provisions of this chapter, including
4 rules adopted by the commissioner or orders issued by the
5 commissioner as authorized under this chapter. The attesting
6 person may be any of the following:
7 Sec. 8. Section 523D.3, subsection 1, paragraph c,
8 unnumbered paragraph 1, Code 2024, is amended to read as
9 follows:
10 With respect to each person covered by paragraph “b”, and
11 if the facility or program will be managed on a day-to-day
12 basis by a person identified pursuant to paragraph “b”, or with
13 respect to the proposed manager, the following information:
14 Sec. 9. Section 523D.3, subsection 1, paragraphs f, h, and
15 k, Code 2024, are amended to read as follows:
16 f. The services provided or proposed to be provided under
17 contracts for continuing care or senior adult congregate living
18 services at the facility, including the extent to which medical
19 care is furnished. The disclosure statement shall clearly
20 state which services are included in basic contracts and which
21 services are made available at or by the facility at extra
22 charge.
23 h. The provisions which have been made or will be made,
24 if any, to provide reserve funding or security to enable the
25 provider to fully perform its obligations under contracts to
26 provide continuing care or senior adult congregate living
27 services at the facility, including the establishment of escrow
House File 2263, p. 5
28 accounts, trusts, or reserve funds, together with the manner in
29 which the funds will be invested and the names and experience
30 of persons who will make the investment decisions.
31 k. Other material information concerning the facility,
32 program, or the provider required by the division of insurance
33 or which the provider wishes to include.
34 Sec. 10. Section 523D.6, subsection 1, paragraphs b, c, f,
35 g, h, j, k, m, and p, Code 2024, are amended to read as follows:
1 b. The name and address of the facility or facilities, or
2 of the program.
3 c. The If a prospective resident elects to reside in housing
4 at the facility of a provider, the identification of the living
5 unit which the prospective resident will occupy.
6 f. A statement of the policy of the facility or program with
7 regard to any health or financial conditions upon which the
8 provider may require the resident to relinquish the resident’s
9 space in the designated facility or program.
10 g. A statement of the policy of the facility or program with
11 regard to the health and financial conditions required for a
12 person to continue as a resident or an enrollee in a program.
13 h. A statement of the policy of the facility or program with
14 regard to the conditions under which the resident is permitted
15 to remain in the facility or program in the event of financial
16 difficulties affecting the resident.
17 j. A statement of the policy of the facility or program
18 with regard to changes in accommodations and a description
19 of the procedures to be followed by the provider when the
20 provider temporarily or permanently changes the resident’s
21 accommodations within the facility or program, transfers the
22 resident from one level of care to another, or transfers the
23 resident to another health facility or program.
24 k. A description in clear and understandable language, in at
25 least ten point type, of the terms governing the refund of any
26 portion of the entrance fee in the event of discharge by the
27 provider, or cancellation by the resident, and a statement that
28 the provider shall not dismiss or discharge a resident from
29 a facility or program prior to the expiration of a resident
30 contract without just cause and sixty days written notice of
31 intent to cancel. The notice of dismissal or discharge shall
House File 2263, p. 6
32 only be given upon a good faith determination that just cause
33 exists, and the notice shall be given in writing, signed by the
34 medical director, if any, and the administrator of the facility
35 or program. In an emergency situation only such notice as is
1 reasonable under the circumstances is required.
2 m. A description of the facility’s or program’s policies
3 and procedures for handling grievances between the provider and
4 residents.
5 p. A statement that if a resident dies or through illness,
6 injury, or incapacity is precluded from becoming a resident
7 under the terms of the contract before occupying the living
8 unit, or precluded from commencing a continuing care services
9 program under the terms of the contract, the contract is
10 automatically rescinded and the resident or the resident’s
11 legal representative shall receive a full refund of all
12 payments of money or transferred property to the facility
13 or program, except those costs specifically incurred by the
14 facility or program at the request of the resident or program
15 enrollee and set forth in writing in a separate addendum,
16 signed by both parties to the contract.
17 Sec. 11. Section 523D.6, subsection 2, Code 2024, is amended
18 to read as follows:
19 2. Cancellation. The contract required by this section
20 shall state the terms under which the contract can be canceled
21 by the provider, or the resident, or a program enrollee,
22 including a statement of the refund rights of a resident,
23 or a program enrollee, and shall include a completed,
24 easily detachable form in duplicate, captioned “Notice
25 of Cancellation”, as an attachment, in ten point boldface
26 type, containing the following information and statements in
27 substantially the following form and language:
28 NOTICE OF CANCELLATION
29 ........
30 Date contract was executed.
31 ........
32 Date disclosure statement was provided
33 to resident or program enrollee.
34 You may rescind and cancel your contract, without any penalty
35 or obligation, within three business days of the date the
House File 2263, p. 7
1 contract was executed or within thirty days after the date
2 you received the disclosure statement required by Iowa Code
3 section 523D.3, whichever is later. You are not required to
4 move into the facility or commence continuing care services
5 from the program before the expiration of this cancellation
6 period. However, if you do, the provider may retain the
7 reasonable value of care and services actually provided to you,
8 the resident, prior to your vacating the provider’s facility
9 or terminating continuing care services from the program. If
10 you cancel this contract and you have already moved into the
11 provider’s facility, you must vacate your living unit within
12 ten days after receipt by the provider of your cancellation
13 notice.
14 If you cancel this contract, any payments of money or
15 transfers of property you made to the provider must be returned
16 as soon as reasonably possible by the provider following
17 receipt by the provider of your cancellation notice, and any
18 security interest arising out of the transaction is canceled,
19 except that, as stated above, the provider may retain the
20 reasonable value of care and services actually provided to you
21 prior to your vacating the provider’s facility or terminating
22 continuing care services from the program.
23 To cancel this contract, mail by certified mail or hand
24 deliver a signed and dated copy of this cancellation notice
25 or any other written notice clearly indicating your intent to
26 cancel the contract, or send a telegram, to ........ (name
27 of provider) at ........ (address of provider’s place of
28 business). Your cancellation is effective upon mailing by
29 certified mail, when transmitted by telegraph, or when actual
30 notice is given to the provider, whichever is earlier.
31 I hereby cancel this contract.
32 ......
33 (Date)
34 ............
35 (Resident’s signature)
1 Sec. 12. Section 523D.7, subsection 1, paragraphs a and b,
2 Code 2024, are amended to read as follows:
3 a. Enters into a contract to provide continuing care or
4 senior adult congregate living services at a facility without
House File 2263, p. 8
5 having first delivered a disclosure statement meeting the
6 requirements of this chapter to the person contracting for
7 continuing care or senior adult congregate living services and
8 to the person’s personal representative if one is appointed by
9 the person.
10 b. Enters into a contract to provide continuing care or
11 senior adult congregate living services at a facility with a
12 person who has relied on a disclosure statement which contains
13 any untrue statement of a material fact or omits to state a
14 material fact necessary in order to make the statements made,
15 in light of the circumstances under which they are made, not
16 misleading.
______________________________ ______________________________
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 2263, Ninetieth General Assembly.
______________________________
MEGHAN NELSON
Chief Clerk of the House
Approved _______________, 2024 ______________________________
KIM REYNOLDS
Governor
Statutes affected: Introduced: 505.17, 522B.11, 523A.807
Reprinted: 505.17, 522B.11, 523A.807, 523D.1, 523D.2, 523D.2A, 523D.3
Enrolled: 505.17, 522B.11, 523A.807, 523D.1, 523D.2, 523D.2A, 523D.3