Senate File 346 - Introduced
SENATE FILE 346
BY COMMITTEE ON COMMERCE
(SUCCESSOR TO SSB 1130)
A BILL FOR
1 An Act relating to various matters under the purview of
2 the insurance division of the department of commerce,
3 providing fees, making an appropriation, and resolving
4 inconsistencies.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 DIVISION I
2 UNIFORM SECURITIES
3 Section 1. Section 502.304A, subsection 3, paragraph g,
4 Code 2021, is amended to read as follows:
5 g. The issuer must pay to the administrator a fee of one
6 hundred dollars established by the administrator by rule and
7 is not required to pay the filing fee set forth in section
8 502.305, subsection 2.
9 Sec. 2. Section 502.304A, subsection 5, Code 2021, is
10 amended to read as follows:
11 5. Agent registration. In connection with an offering
12 registered under this section, a person may be registered as
13 an agent of the issuer under section 502.402 by the filing of
14 an application by the issuer with the administrator for the
15 registration of the person as an agent of the issuer and the
16 paying of a fee of ten dollars established by the administrator
17 by rule. Notwithstanding any other provision of this chapter,
18 the registration of the agent shall be effective until
19 withdrawn by the issuer or until the securities registered
20 pursuant to the registration statement have all been sold,
21 whichever occurs first. The registration of an agent shall
22 become effective when ordered by the administrator or on the
23 fifth business day after the agent’s application has been
24 filed with the administrator, whichever occurs first, and the
25 administrator shall not impose further conditions upon the
26 registration of the agent. However, the administrator may
27 deny, revoke, suspend, or withdraw the registration of the
28 agent at any time as provided in section 502.412. An agent
29 registered solely pursuant to this section is entitled to sell
30 only securities registered under this section.
31 Sec. 3. Section 502.321G, Code 2021, is amended to read as
32 follows:
33 502.321G Fees.
34 The administrator shall charge a nonrefundable filing fee of
35 two hundred fifty dollars established by the administrator by
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1 rule for a registration statement filed by an offeror. The fee
2 shall be deposited as provided in section 505.7.
3 Sec. 4. Section 502.410, Code 2021, is amended to read as
4 follows:
5 502.410 Filing fees.
6 1. Broker-dealers. A person shall pay a fee of two hundred
7 dollars established by the administrator by rule when initially
8 filing an application for registration as a broker-dealer
9 and a fee of two hundred dollars when filing a renewal of
10 registration as a broker-dealer. If the filing results in a
11 denial or withdrawal, the administrator shall retain the fee.
12 2. Agents. The fee for an individual is forty dollars
13 when filing an application for registration as an agent, a
14 fee of forty dollars when filing a renewal of registration
15 as an agent, and a fee of forty dollars when or filing for a
16 change of registration as an agent shall be established by the
17 administrator by rule. Of each forty-dollar fee collected, ten
18 dollars twenty-five percent is appropriated to the securities
19 investor education and financial literacy training fund
20 established under section 502.601, subsection 5. If the filing
21 results in a denial or withdrawal, the administrator shall
22 retain the fee.
23 3. Investment advisers. A person shall pay a fee of one
24 hundred dollars established by the administrator by rule when
25 filing an application for registration as an investment adviser
26 and a fee of one hundred dollars when filing a renewal of
27 registration as an investment adviser. If the filing results
28 in a denial or withdrawal, the administrator shall retain the
29 fee.
30 4. Investment adviser representatives.
31 a. The fee for an individual is thirty dollars when filing
32 an application for registration as an investment adviser
33 representative, a fee of thirty dollars when filing a renewal
34 of registration as an investment adviser representative, and a
35 fee of thirty dollars or when filing a change of registration
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1 as an investment adviser representative shall be the amount
2 established by the administrator by rule. If the filing
3 results in a denial or withdrawal, the administrator shall
4 retain the fee.
5 b. However, an An investment adviser representative is shall
6 not be required to pay a filing fee if the investment adviser
7 is a sole proprietorship or the substantial equivalent, and the
8 investment adviser representative is the same individual as the
9 investment adviser.
10 5. Federal covered investment advisers. A federal covered
11 investment adviser required to file a notice under section
12 502.405 shall pay an initial fee of one hundred dollars and
13 an annual notice fee of one hundred dollars in an amount
14 established by the administrator by rule.
15 6. Payment. A person required to pay a filing or notice
16 fee under this section may transmit the fee through or to a
17 designee as a permitted by the administrator by rule or by
18 order provides issued by the administrator under this chapter.
19 7. Deposit of fees. Except as otherwise provided in
20 subsection 2, fees collected under this section shall be
21 deposited as provided in section 505.7.
22 DIVISION II
23 INSURANCE
24 Sec. 5. Section 505.30, subsection 2, Code 2021, is amended
25 to read as follows:
26 2. The commissioner may collect a reasonable fee,
27 established by the commissioner by rule, each time service of
28 process is made on the commissioner as set forth in subsection
29 1 or as otherwise allowed by law. A fee collected by the
30 commissioner under this subsection shall be used and is
31 appropriated to the insurance division to offset the costs
32 of the commissioner acting as agent or attorney for service
33 of process. The party to a proceeding requesting service of
34 process is entitled to recover the fee paid pursuant to this
35 subsection and any rules adopted under this section as costs if
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1 the party prevails in the proceeding.
2 Sec. 6. Section 507A.4, subsection 9, Code 2021, is amended
3 by striking the subsection and inserting in lieu thereof the
4 following:
5 9. Transactions involving a multiple employer welfare
6 arrangement as defined in section 3 of the federal Employee
7 Retirement Income Security Act of 1974, 29 U.S.C. §1002,
8 paragraph 40, or a multiple employer welfare arrangement formed
9 as an association health plan pursuant to 29 C.F.R. pt. 2510
10 that complies with chapter 513D.
11 Sec. 7. Section 507B.7, Code 2021, is amended to read as
12 follows:
13 507B.7 Cease and desist orders Orders and penalties.
14 1. If, after hearing, the commissioner determines that a
15 person has engaged in an unfair method of competition or an
16 unfair or deceptive act or practice, the commissioner shall
17 reduce the findings to writing and shall issue and cause to
18 be served upon the person charged with the violation a copy
19 of such findings, an order requiring such person to cease
20 and desist from engaging in such method of competition, act,
21 or practice, and the commissioner may at the commissioner’s
22 discretion order any one or more of the following:
23 a. Payment of a civil penalty of not more than one thousand
24 dollars for each act or violation of this subtitle, but not
25 to exceed an aggregate of ten thousand dollars, unless the
26 person knew or reasonably should have known the person was in
27 violation of this subtitle, in which case the penalty shall be
28 not more than five thousand dollars for each act or violation,
29 but not to exceed an aggregate penalty of fifty thousand
30 dollars in any one six-month period. If the commissioner finds
31 that a violation of this subtitle was directed, encouraged,
32 condoned, ignored, or ratified by the employer of the person or
33 by an insurer, the commissioner shall also assess a penalty to
34 the employer or insurer.
35 b. Suspension or revocation of the license of a person as
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1 defined in section 507B.2, subsection 1, if the person knew or
2 reasonably should have known the person was in violation of
3 this subtitle.
4 c. Payment of interest at the rate of ten percent per
5 annum if the commissioner finds that the insurer failed to
6 pay interest as required under section 507B.4, subsection 3,
7 paragraph “p”.
8 2. Until the expiration of the time allowed under section
9 507B.8 for filing a petition for review if no such petition has
10 been duly filed within such time, or, if a petition for review
11 has been filed within such time, then until the transcript of
12 the record in the proceeding has been filed in the district
13 court, the commissioner may at any time, upon such notice and
14 in such manner as the commissioner may deem proper, modify
15 or set aside in whole or in part any order issued by the
16 commissioner under this section.
17 3. After the expiration of the time allowed for filing
18 such a petition for review if no such petition has been duly
19 filed within such time, the commissioner may at any time, after
20 notice and opportunity for hearing, reopen and alter, modify,
21 or set aside, in whole or in part, any order issued by the
22 commissioner under this section, whenever in the commissioner’s
23 opinion conditions of fact or of law have so changed as
24 to require such action, or if the public interest shall so
25 require.
26 4. Any person who violates a cease and desist an order
27 of the commissioner, and while such order is in effect, may,
28 after notice and hearing and upon order of the commissioner,
29 be subject at the discretion of the commissioner to any one or
30 more of the following:
31 a. A monetary penalty of not more than ten thousand dollars
32 for each and every act or violation. A penalty collected
33 under this lettered paragraph shall be deposited as provided
34 in section 505.7.
35 b. Suspension or revocation of such person’s license.
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1 Sec. 8. Section 507E.2A, subsection 2, Code 2021, is amended
2 to read as follows:
3 2. “Insurer” includes an insurer means any corporation,
4 association, partnership, or individual engaged in the business
5 of insurance, including but not limited to a corporation,
6 association, partnership, or individual that issues a policy
7 of workers’ compensation, a self-insured business for purposes
8 of workers’ compensation liability, or a group or self-insured
9 plan as described in section 87.4. “Insurer” does not include
10 a person required to be licensed to sell, solicit, or negotiate
11 insurance pursuant to chapter 522B.
12 Sec. 9. Section 507E.8, Code 2021, is amended to read as
13 follows:
14 507E.8 Law enforcement authority.
15 1. An individual employed by the division and designated as
16 a peace officer shall be considered a law enforcement officer
17 as that term is defined in section 80B.3, and shall exercise
18 the powers of a law enforcement officer as follows:
19 a. For purposes of an arrest resulting from a criminal
20 violation of any provision of the Code subject to the
21 jurisdiction of the commissioner established as a result of
22 an investigation pursuant to this chapter, an insurance fraud
23 bureau investigator shall have the authority and status of a
24 law enforcement officer pursuant to section 80B.3, subsection
25 3.
26 b. While conducting an investigation or engaged in an
27 assignment authorized by this chapter or ordered by the
28 commissioner.
29 c. To protect life if a public offense is committed in the
30 presence of the peace officer.
31 d. While providing assistance to a law enforcement agency or
32 another law enforcement officer.
33 e. While providing assistance at the request of a member of
34 the public.
35 2. The laws Laws applicable to an arrest of an individual
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1 by a law enforcement officer of the state shall apply to an
2 insurance fraud bureau investigator individual employed by
3 the division and designated as a peace officer. An insurance
4 fraud bureau investigator individual employed by the division
5 and designated as a peace officer shall have the power to
6 execute arrest warrants and search warrants, serve subpoenas
7 issued for the examination, investigation, and trial of all
8 offenses identified through the course of an investigation
9 conducted pursuant to this section, and arrest upon probable
10 cause without warrant a person found in the act of committing
11 a violation of a provision of this chapter or a law of this
12 state.
13 Sec. 10. Section 508E.2, subsection 14, Code 2021, is
14 amended to read as follows:
15 14. “Viatical settlement broker” means a person, including
16 a life insurance producer as provided for in section 508E.3,
17 who, working exclusively on behalf of a viator and for a fee,
18 commission, or other valuable consideration, offers or attempts
19 to negotiate viatical settlement contracts between a viator
20 and one or more viatical settlement providers or one or more
21 viatical settlement brokers. Notwithstanding the manner in
22 which the viatical settlement broker is compensated, a viatical
23 settlement broker is deemed to represent only the viator,
24 and not the insurer or the viatical settlement provider, and
25 owes a fiduciary duty to the viator to act according to the
26 viator’s instructions and in the best interest of the viator.
27 “Viatical settlement broker” does not include an attorney,
28 certified public accountant, or a financial planner accredited
29 by a nationally recognized accreditation agency who is retained
30 to represent the viator and whose compensation is not paid
31 directly or indirectly by the viatical settlement provider or
32 purchaser.
33 Sec. 11. Section 508E.3, subsections 2 and 3, Code 2021, are
34 amended to read as follows:
35 2. An application for a viatical settlement provider
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1 or viatical settlement broker license shall be made to the
2 commissioner by the applicant on a form prescribed by the
3 commissioner, and the application shall be accompanied by a
4 fee of not more than one hundred dollars as provided by rules
5 adopted by the commissioner.
6 3. A viatical settlement provider or viatical settlement
7 broker license term shall be three years and the license
8 may be renewed upon payment of a renewal fee of not more
9 than one hundred dollars as provided by rules adopted by the
10 commissioner. A failure to pay the fee by the renewal date
11 shall result in expiration of the license.
12 Sec. 12. Section 509.1, subsection 9, Code 2021, is amended
13 to read as follows:
14 9. A policy of group health insurance coverage issued to an
15 associated health plan a multiple employer welfare arrangement
16 pursuant to section 513D.1 chapter 513D that is subject to
17 regulation by the commissioner.
18 Sec. 13. Section 509.19, subsection 2, paragraph d, Code
19 2021, is amended to read as follows:
20 d. A multiple employer welfare arrangement, as defined
21 in section 3 of the federal Employee Retirement Income
22 Security Act of 1974, 29 U.S.C. §1002(40), paragraph 40,
23 or a multiple employer welfare arrangement formed as an
24 association health plan pursuant to 29 C.F.R. pt. 2510,
25 that meets the requirements of section 507A.4, subsection 9,
26 paragraph “a” chapter 513D.
27 Sec. 14. Section 509A.15, subsection 1, paragraph a,
28 unnumbered paragraph 1, Code 2021, is amended to read as
29 follows:
30 Within ninety calendar days following the end of a fiscal
31 year, the governing body of a self-insurance plan of a
32 political subdivision or a school corporation shall file wit