This bill amends Iowa's laws concerning life insurance and the financial exploitation of eligible adults by introducing new provisions that allow broker-dealers and investment advisers to delay disbursements or transactions that may lead to financial exploitation. Specifically, it permits a delay of up to 15 business days, with the option to extend this delay for an additional 25 days if an internal review indicates potential exploitation. If further justification is found, the delay can be extended for an additional 55 days. The bill also defines key terms such as "eligible adult," "financial exploitation," and "permissible third party," while outlining the responsibilities of insurers and qualified individuals in reporting suspected exploitation.

Moreover, the bill provides immunity from civil or administrative liability for insurers and qualified individuals who report suspected financial exploitation in good faith. It mandates training for employees involved in handling complaints and investigations related to financial exploitation, ensuring they are prepared to identify and respond to such cases. Insurers are required to provide this training by June 30, 2027, and to grant access to relevant records to the commissioner and law enforcement while maintaining confidentiality. The bill also allows for court intervention in cases of delayed disbursement and empowers the commissioner to adopt rules regarding notification processes and employee training related to potential fraud.

Statutes affected:
Introduced: 502.806