This bill introduces comprehensive reforms to Iowa's insurance and financial services sectors, focusing on enhancing consumer protection and promoting financial literacy. Key provisions include the establishment of two new funds: the financial literacy and investor education fund, funded by agent registration fees and civil penalties, and the financial exploitation prevention fund, aimed at educating the public about financial exploitation. The bill modifies existing laws regarding tax return confidentiality and outlines a detailed process for insurers wishing to withdraw from the market, requiring them to submit a withdrawal plan to the commissioner of insurance. Additionally, it replaces the "securities investor education and financial literacy training fund" with the new financial literacy and investor education fund and introduces public hearings for proposed health insurance rate increases.

The legislation also implements significant amendments related to service contracts and the regulation of service companies. It mandates that service companies provide consumers with a sample of the service contract prior to purchase and deliver a fully executed copy within ten days. The bill establishes clear language requirements for service contracts, outlines cancellation terms, and ensures timely responses to claims. Furthermore, it prohibits misleading statements by service companies regarding affiliations and warranties, and it requires written explanations for claim denials. The commissioner is granted authority to impose penalties for violations and maintain confidentiality during investigations. Overall, the bill aims to enhance regulatory oversight, transparency, and consumer protection within the insurance and service contract industries.

Statutes affected:
Introduced: 502.410, 502.601, 546.14, 505.7, 546.12, 432.1A, 505.19, 507B.4, 505.36, 523C.1, 523C.2, 523C.3, 523C.9, 523C.5, 523C.13, 523C.23, 714.16, 523C.19