This bill aims to enhance consumer protection and regulatory oversight in Iowa's insurance and service contract sectors. It establishes a Financial Literacy and Investor Education Fund and a Financial Exploitation Prevention Fund, funded by fees from insurance agents. The bill modifies tax confidentiality laws to exempt certain tax returns from public inspection and imposes penalties for unauthorized disclosures. It also introduces new requirements for insurers planning to withdraw from the market, mandating a detailed withdrawal plan that outlines obligations to policyholders and a timeline for the process, subject to the commissioner's approval.

In addition to these provisions, the bill sets forth new regulations for service companies offering service contracts, including the requirement for licensed companies to provide clear, written contracts and timely responses to claims. It prohibits misleading statements regarding affiliations and warranties, and mandates that service contract holders receive written explanations for denied claims. The bill also allows service companies to use noncompliant forms until June 30, 2026, under specific conditions, and grants the commissioner authority to impose penalties for violations. Overall, the legislation seeks to improve transparency, accountability, 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