The bill amends various sections of the Iowa Code concerning the Department of Insurance and Financial Services, with a focus on enhancing financial literacy, preventing exploitation, and improving consumer protection within the insurance and service contract sectors. Key provisions include the establishment of two new funds: the "financial literacy and investor education fund" and the "financial exploitation prevention fund," which will be funded by specific fees from agent registrations. The bill also introduces new requirements for insurers planning to withdraw from the market, necessitating a detailed withdrawal plan approved by the commissioner of insurance, and establishes a five-year waiting period for insurers that withdraw from all lines of insurance before they can resume operations.

Additionally, the bill enhances tax confidentiality by prohibiting the inspection of certain tax returns and introduces penalties for unauthorized publication. It mandates that service companies provide clear, written contracts to consumers, including specific disclosures and a fully executed copy within ten days of purchase. The legislation also outlines grounds for the denial or revocation of service company licenses and updates the examination process for service companies' records. Overall, these changes aim to improve regulatory oversight, protect consumers from financial exploitation, and ensure transparency in 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