This bill introduces significant amendments to Iowa's insurance and financial services regulations, focusing on enhancing consumer protection and promoting financial literacy. It establishes two new funds: the Financial Literacy and Investor Education Fund and the Financial Exploitation Prevention Fund, which will be funded by agent registration fees and real estate broker application fees. The bill also modifies existing provisions regarding tax return confidentiality and insurer withdrawals, requiring insurers to submit detailed withdrawal plans to the commissioner of insurance. Additionally, it replaces the "securities investor education and financial literacy training fund" with the new financial literacy fund and introduces new definitions and requirements for health savings accounts and service contracts.

Moreover, the bill sets forth stricter regulations for service companies, mandating that they provide consumers with clear service contract samples before purchase and deliver fully executed copies within ten days. It also requires service companies to maintain licenses, report ownership changes, and comply with operational standards. The legislation prohibits deceptive practices in the marketing of service contracts and outlines penalties for violations, including civil penalties and potential license revocation. Overall, these changes aim to improve transparency, accountability, and consumer rights within the insurance and service contract sectors while fostering financial education and preventing exploitation.

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