Bill Text: IA HSB537 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill relating to various matters involving insurance and the insurance division of the department of commerce, and including penalties.
Spectrum: Unknown
Status: (Introduced - Dead) 2016-02-15 - Voted - Commerce. [HSB537 Detail]
Download: Iowa-2015-HSB537-Introduced.html
House
Study
Bill
537
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
COMMERCE/INSURANCE
DIVISION
BILL)
A
BILL
FOR
An
Act
relating
to
various
matters
involving
insurance
and
1
the
insurance
division
of
the
department
of
commerce,
and
2
including
penalties.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5203XD
(5)
86
av/nh
S.F.
_____
H.F.
_____
Section
1.
Section
502.305,
subsection
2,
Code
2016,
is
1
amended
to
read
as
follows:
2
2.
Filing.
Except
as
provided
in
subsection
10
section
3
502.302,
subsection
3,
and
section
502.304A,
subsection
3
,
4
paragraph
“g”
,
a
person
who
files
a
registration
statement
5
or
a
notice
filing
shall
pay
a
filing
fee
of
one-tenth
of
6
one
percent
of
the
proposed
aggregate
sales
price
of
the
7
securities
to
be
offered
to
persons
in
this
state
pursuant
to
8
the
registration
statement
or
notice
filing.
However,
except
9
as
provided
in
subsection
10
,
section
502.302,
subsection
1
,
10
paragraph
“a”
,
and
section
502.304A,
subsection
3
,
paragraph
11
“g”
,
the
annual
filing
fee
shall
not
be
less
than
fifty
dollars
12
or
more
than
one
thousand
dollars
as
prescribed
by
rules
13
adopted
pursuant
to
chapter
17A
.
The
administrator
shall
14
retain
the
filing
fee
even
if
the
notice
filing
is
withdrawn
or
15
the
registration
is
withdrawn,
denied,
suspended,
revoked,
or
16
abandoned.
The
fees
collected
under
this
subsection
shall
be
17
deposited
as
provided
in
section
505.7
.
The
administrator
may
18
adopt
rules
requiring
a
filing
to
be
made
electronically.
The
19
rules
may
provide
for
such
electronic
filing
either
directly
20
with
the
administrator
or
with
a
designee
of
the
administrator.
21
The
rules
may
require
that
the
filer
pay
any
reasonable
costs
22
charged
by
the
designee
of
the
administrator
for
processing
the
23
filings
and
that
the
filer
submit
any
fees
paid
through
the
24
designee.
25
Sec.
2.
Section
502.305,
subsection
10,
Code
2016,
is
26
amended
by
striking
the
subsection.
27
Sec.
3.
Section
502.306,
subsection
1,
paragraph
a,
Code
28
2016,
is
amended
to
read
as
follows:
29
a.
The
registration
statement
as
of
its
effective
date
30
or
before
the
effective
date
in
the
case
of
an
order
denying
31
effectiveness,
an
amendment
under
section
502.305,
subsection
32
10
,
as
of
its
effective
date,
or
a
report
under
section
33
502.305,
subsection
9
,
is
incomplete
in
a
material
respect
or
34
contains
a
statement
that,
in
the
light
of
the
circumstances
35
-1-
LSB
5203XD
(5)
86
av/nh
1/
12
S.F.
_____
H.F.
_____
under
which
it
was
made,
was
false
or
misleading
with
respect
1
to
a
material
fact.
2
Sec.
4.
NEW
SECTION
.
507E.3A
Fraudulent
sales
practices
——
3
penalty.
4
1.
A
person
commits
a
class
“D”
felony
if
the
person,
with
5
the
intent
to
defraud
another
person
in
connection
with
any
6
sale,
solicitation,
or
negotiation
of
insurance
in
this
state,
7
willfully
does
any
of
the
following:
8
a.
Employs
any
deception,
device,
scheme,
or
artifice
to
9
defraud.
10
b.
Misrepresents,
conceals,
or
suppresses
any
material
fact.
11
c.
Engages
in
any
act,
practice,
or
course
of
business
which
12
operates
as
a
fraud
or
deceit
upon
any
person.
13
2.
Notwithstanding
subsection
1,
a
person
commits
a
class
14
“C”
felony
if
the
person
violates
subsection
1,
and
such
15
violation
results
in
a
loss
of
more
than
ten
thousand
dollars.
16
Sec.
5.
Section
521A.1,
Code
2016,
is
amended
by
adding
the
17
following
new
subsections:
18
NEW
SUBSECTION
.
5A.
“Group-wide
supervisor”
means
a
19
regulatory
official
who
is
authorized,
and
who
is
determined
20
or
acknowledged
by
the
commissioner
pursuant
to
section
21
521A.6B
to
have
sufficient
significant
contacts
with
an
22
internationally
active
insurance
group,
to
engage
in
conducting
23
and
coordinating
group-wide
supervision
of
the
internationally
24
active
insurance
group.
25
NEW
SUBSECTION
.
7A.
“Internationally
active
insurance
group”
26
means
an
insurance
holding
company
system
that
includes
an
27
insurer
registered
under
section
521A.4
and
that
meets
all
of
28
the
following
criteria:
29
a.
The
insurance
holding
company
system
has
premiums
written
30
in
at
least
three
countries.
31
b.
The
percentage
of
gross
premiums
written
outside
the
32
United
States
is
at
least
ten
percent
of
the
insurance
holding
33
company
system’s
total
gross
written
premiums.
34
c.
Based
on
a
three-year
rolling
average,
the
total
assets
35
-2-
LSB
5203XD
(5)
86
av/nh
2/
12
S.F.
_____
H.F.
_____
of
the
insurance
holding
company
system
are
at
least
fifty
1
billion
dollars
or
the
total
gross
written
premiums
of
the
2
insurance
holding
company
system
are
at
least
ten
billion
3
dollars.
4
Sec.
6.
Section
521A.6A,
subsection
1,
unnumbered
paragraph
5
1,
Code
2016,
is
amended
to
read
as
follows:
6
With
respect
to
any
insurer
registered
under
section
7
521A.4
and
in
accordance
with
subsection
3
of
this
section
,
8
the
commissioner
shall
have
the
power
to
participate
in
a
9
supervisory
college
for
any
domestic
insurer
that
is
part
10
of
an
insurance
holding
company
system
with
international
11
operations
in
order
to
determine
compliance
by
the
insurer
with
12
this
chapter
.
The
powers
of
the
commissioner
with
respect
13
to
supervisory
colleges
include
but
are
not
limited
to
the
14
following:
15
Sec.
7.
Section
521A.6A,
subsections
2
and
3,
Code
2016,
are
16
amended
by
striking
the
subsections.
17
Sec.
8.
NEW
SECTION
.
521A.6B
Group-wide
supervision
of
18
internationally
active
insurance
groups.
19
1.
a.
The
commissioner
may
act
as
the
group-wide
supervisor
20
of
an
internationally
active
insurance
group
in
accordance
with
21
the
provisions
of
this
section.
However,
the
commissioner
may
22
authorize
another
regulatory
official
to
act
as
the
group-wide
23
supervisor
where
the
internationally
active
insurance
group
24
meets
any
of
the
following
conditions:
25
(1)
Does
not
have
substantial
insurance
operations
in
the
26
United
States.
27
(2)
Has
substantial
insurance
operations
in
the
United
28
States,
but
not
in
Iowa.
29
(3)
Has
substantial
insurance
operations
in
the
United
30
States
and
in
Iowa,
but
the
commissioner
has
determined
31
pursuant
to
the
factors
set
forth
in
subsections
2
and
6
that
32
another
regulatory
official
is
the
appropriate
group-wide
33
supervisor.
34
b.
In
response
to
a
request
from
an
insurance
holding
35
-3-
LSB
5203XD
(5)
86
av/nh
3/
12
S.F.
_____
H.F.
_____
company
system
that
does
not
otherwise
qualify
as
an
1
internationally
active
insurance
group,
the
commissioner
may
2
make
a
determination
of
or
acknowledge
a
group-wide
supervisor
3
for
such
an
insurance
holding
company
system
pursuant
to
this
4
section.
5
2.
a.
In
cooperation
with
other
state,
federal,
and
6
international
regulatory
agencies,
the
commissioner
shall
7
identify
a
single
group-wide
supervisor
for
an
internationally
8
active
insurance
group.
The
commissioner
may
determine
that
9
the
commissioner
is
the
appropriate
group-wide
supervisor
10
for
an
internationally
active
insurance
group
that
conducts
11
substantial
insurance
operations
concentrated
in
this
state,
12
or
the
commissioner
may
acknowledge
that
a
regulatory
official
13
from
another
jurisdiction
is
the
appropriate
group-wide
14
supervisor
for
the
internationally
active
insurance
group.
In
15
making
a
determination
or
acknowledgment
under
this
paragraph
16
“a”
,
the
commissioner
shall
consider
the
following
factors:
17
(1)
The
place
of
domicile
of
the
insurers
within
the
18
internationally
active
insurance
group
that
hold
the
largest
19
share
of
the
group’s
written
premiums,
assets,
or
liabilities.
20
(2)
The
place
of
domicile
of
the
top-tiered
insurers
in
the
21
insurance
holding
company
system
of
the
internationally
active
22
insurance
group.
23
(3)
The
location
of
the
executive
offices
or
largest
24
operational
offices
of
the
internationally
active
insurance
25
group.
26
(4)
Whether
another
regulatory
official
is
acting
as
27
or
is
seeking
to
act
as
the
group-wide
supervisor
of
the
28
internationally
active
insurance
group
under
a
regulatory
29
system
that
the
commissioner
determines
to
be
either
of
the
30
following:
31
(a)
Substantially
similar
to
the
system
of
regulation
32
provided
under
the
laws
of
this
state.
33
(b)
Otherwise
sufficient
in
terms
of
providing
for
34
group-wide
supervision,
enterprise
risk
analysis,
and
35
-4-
LSB
5203XD
(5)
86
av/nh
4/
12
S.F.
_____
H.F.
_____
cooperation
with
other
regulatory
officials.
1
(5)
Whether
another
regulatory
official
acting
as
2
or
seeking
to
act
as
the
group-wide
supervisor
for
the
3
internationally
active
insurance
group
provides
the
4
commissioner
with
reasonably
reciprocal
recognition
and
5
cooperation.
6
b.
Notwithstanding
paragraph
“a”
,
even
if
the
commissioner
7
is
identified
pursuant
to
this
subsection
as
the
group-wide
8
supervisor
of
an
internationally
active
insurance
group,
9
the
commissioner
may
determine
that
it
is
appropriate
to
10
acknowledge
another
regulatory
official
to
serve
as
the
11
group-wide
supervisor
of
the
internationally
active
insurance
12
group.
13
c.
The
acknowledgment
of
a
group-wide
supervisor
pursuant
14
to
this
subsection
shall
be
made
after
consideration
of
the
15
factors
listed
in
paragraph
“a”
,
subparagraphs
(1)
through
16
(5),
and
shall
be
made
in
cooperation
with
and
subject
to
the
17
acknowledgment
of
other
regulatory
officials
involved
with
18
supervision
of
members
of
the
internationally
active
insurance
19
group,
and
in
consultation
with
the
internationally
active
20
insurance
group.
21
3.
Notwithstanding
any
other
provision
of
law,
when
another
22
regulatory
official
is
acting
as
the
group-wide
supervisor
of
23
an
internationally
active
insurance
group,
the
commissioner
24
shall
acknowledge
that
regulatory
official
as
the
group-wide
25
supervisor
of
the
internationally
active
insurance
group.
26
However,
the
commissioner
shall
make
a
new
determination
or
27
acknowledgment
as
to
the
appropriate
group-wide
supervisor
for
28
the
internationally
active
insurance
group
in
the
event
that
a
29
material
change
in
the
internationally
active
insurance
group
30
results
in
either
of
the
following:
31
a.
The
internationally
active
insurance
group’s
insurers
32
domiciled
in
Iowa
holding
the
largest
share
of
the
group’s
33
premiums,
assets,
or
liabilities.
34
b.
Iowa
being
the
place
of
domicile
of
the
top-tiered
35
-5-
LSB
5203XD
(5)
86
av/nh
5/
12
S.F.
_____
H.F.
_____
insurers
in
the
insurance
holding
company
system
of
the
1
internationally
active
insurance
group.
2
4.
Pursuant
to
section
521A.6,
the
commissioner
is
3
authorized
to
collect
from
any
insurer
registered
pursuant
to
4
section
521A.4
all
information
necessary
to
determine
whether
5
it
is
appropriate
for
the
commissioner
to
act
as
the
group-wide
6
supervisor
of
an
internationally
active
insurance
group
or
7
to
acknowledge
another
regulatory
official
to
act
as
the
8
group-wide
supervisor
of
the
internationally
active
insurance
9
group.
Prior
to
issuing
a
determination
or
acknowledgment
10
pursuant
to
this
section,
the
commissioner
shall
notify
the
11
insurer
registered
pursuant
to
section
521A.4
and
the
ultimate
12
controlling
person
within
the
internationally
active
insurance
13
group
of
the
pending
determination
or
acknowledgment.
The
14
insurer
and
the
internationally
active
insurance
group
shall
15
have
not
less
than
thirty
days
to
provide
the
commissioner
with
16
additional
information
pertinent
to
the
commissioner’s
pending
17
determination
or
acknowledgment.
The
commissioner
shall
18
publish
the
identity
of
the
internationally
active
insurance
19
groups
that
the
commissioner
has
determined
are
subject
to
20
group-wide
supervision
by
the
commissioner.
21
5.
If
a
determination
is
made
that
the
commissioner
is
the
22
appropriate
group-wide
supervisor
for
an
internationally
active
23
insurance
group,
the
commissioner
is
authorized
to
engage
in
24
any
of
the
following
group-wide
supervision
activities:
25
a.
Assessing
the
enterprise
risks
within
the
internationally
26
active
insurance
group
to
ensure
all
of
the
following:
27
(1)
That
the
material
financial
condition
and
liquidity
28
risks
to
members
of
the
internationally
active
insurance
group
29
that
are
engaged
in
the
business
of
insurance
are
identified
30
by
management.
31
(2)
That
reasonable
and
effective
mitigation
measures
are
32
in
place.
33
b.
Requesting,
from
any
member
of
an
internationally
active
34
insurance
group
subject
to
the
commissioner’s
group-wide
35
-6-
LSB
5203XD
(5)
86
av/nh
6/
12
S.F.
_____
H.F.
_____
supervision,
information
necessary
and
appropriate
to
assess
1
enterprise
risk,
including
but
not
limited
to
information
about
2
the
members
of
the
internationally
active
insurance
group
3
regarding
all
of
the
following:
4
(1)
Governance,
risk
assessment,
and
management.
5
(2)
Capital
adequacy.
6
(3)
Material
intercompany
transactions.
7
c.
Coordinating
and,
through
the
authority
of
the
8
regulatory
officials
of
the
jurisdictions
where
members
of
9
the
internationally
active
insurance
group
are
domiciled,
10
compelling
the
development
and
implementation
of
reasonable
11
measures
designed
to
ensure
that
the
internationally
active
12
insurance
group
is
able
to
timely
recognize
and
mitigate
13
enterprise
risks
to
members
of
the
internationally
active
14
insurance
group
that
are
engaged
in
the
business
of
insurance.
15
d.
Communicating
with
other
state,
federal,
and
16
international
regulatory
agencies
for
members
within
the
17
internationally
active
insurance
group
and
sharing
relevant
18
information,
subject
to
the
confidentiality
provisions
of
19
section
521A.7,
through
supervisory
colleges
as
set
forth
in
20
section
521A.6A
or
otherwise.
21
e.
Entering
into
agreements
with
or
obtaining
documentation
22
from
any
insurer
registered
under
section
521A.4,
any
member
23
of
an
internationally
active
insurance
group,
and
any
other
24
state,
federal,
or
international
regulatory
agency
for
members
25
of
the
internationally
active
insurance
group,
that
provides
26
the
basis
for
or
otherwise
clarifies
the
commissioner’s
role
as
27
group-wide
supervisor
of
an
internationally
active
insurance
28
group,
including
provisions
for
resolving
disputes
with
other
29
regulatory
officials.
Such
agreements
or
documentation
shall
30
not
serve
as
evidence
in
any
proceeding
that
any
insurer
or
31
person
within
an
insurance
company
holding
company
system
not
32
domiciled
or
incorporated
in
this
state
is
doing
business
in
33
this
state
or
is
otherwise
subject
to
jurisdiction
in
this
34
state.
35
-7-
LSB
5203XD
(5)
86
av/nh
7/
12
S.F.
_____
H.F.
_____
f.
Other
activities
of
group-wide
supervision,
consistent
1
with
the
authority
and
purposes
set
forth
in
this
section,
as
2
considered
necessary
by
the
commissioner.
3
6.
If
the
commissioner
acknowledges
that
another
regulatory
4
official
from
a
jurisdiction
that
is
not
accredited
by
the
5
national
association
of
insurance
commissioners
is
the
6
group-wide
supervisor
of
an
internationally
active
insurance
7
group,
the
commissioner
may
reasonably
cooperate
through
a
8
supervisory
college
or
otherwise,
with
group-wide
supervision
9
undertaken
by
that
regulatory
official
provided
that
all
of
the
10
following
occur:
11
a.
The
commissioner’s
cooperation
is
in
compliance
with
the
12
laws
of
this
state.
13
b.
The
regulatory
official
acknowledged
as
the
group-wide
14
supervisor
of
the
internationally
active
insurance
group
also
15
recognizes
and
cooperates
with
the
commissioner’s
activities
16
as
a
group-wide
supervisor
for
other
internationally
active
17
insurance
groups,
where
applicable.
If
such
recognition
and
18
cooperation
is
not
reasonably
reciprocal,
the
commissioner
may
19
refuse
recognition
and
cooperation
to
that
regulatory
official.
20
7.
The
commissioner
is
authorized
to
enter
into
agreements
21
with
or
obtain
documentation
from
any
insurer
registered
under
22
section
521A.4,
any
affiliate
of
the
insurer,
and
any
other
23
state,
federal,
or
international
regulatory
agency
for
members
24
of
the
internationally
active
insurance
group,
that
provides
25
the
basis
for
or
otherwise
clarifies
another
regulatory
26
official’s
role
as
group-wide
supervisor
of
an
internationally
27
active
insurance
group.
28
8.
An
insurer
registered
under
section
521A.4
that
is
29
subject
to
this
section
shall
be
liable
for
and
shall
pay
the
30
reasonable
expenses
of
the
commissioner’s
participation
in
31
the
administration
of
this
section,
including
the
engagement
32
of
attorneys,
actuaries,
accountants,
and
other
experts
not
33
otherwise
a
part
of
the
commissioner’s
staff
and
all
reasonable
34
travel
expenses.
Any
persons
so
retained
shall
be
under
the
35
-8-
LSB
5203XD
(5)
86
av/nh
8/
12
S.F.
_____
H.F.
_____
direction
and
control
of
the
commissioner
and
shall
act
in
a
1
purely
advisory
capacity.
2
9.
The
commissioner
shall
adopt
rules
pursuant
to
chapter
3
17A
to
administer
this
section.
4
Sec.
9.
Section
521A.7,
subsection
1,
Code
2016,
is
amended
5
to
read
as
follows:
6
1.
All
information,
documents,
and
copies
thereof
obtained
7
by
or
disclosed
to
the
commissioner
or
any
other
person
in
8
the
course
of
an
examination
or
investigation
made
pursuant
9
to
section
521A.6
or
521A.6A
,
and
all
information
reported
10
or
provided
to
the
commissioner
pursuant
to
sections
521A.4
11
and
,
521A.5
,
521A.6A,
and
521A.6B,
shall
be
given
confidential
12
treatment
and
,
shall
not
be
subject
to
subpoena
,
shall
not
be
13
subject
to
discovery
or
admissible
in
evidence
in
a
private
14
civil
action,
and
shall
not
be
made
public
by
the
commissioner
15
or
any
other
person,
except
to
insurance
departments
of
other
16
states,
without
the
prior
written
consent
of
the
insurer
to
17
which
it
pertains
unless
the
commissioner,
after
giving
the
18
insurer
and
its
affiliates
who
would
be
affected
thereby,
19
notice
and
opportunity
to
be
heard,
determines
that
the
20
interests
of
policyholders,
shareholders,
or
the
public
will
21
be
served
by
the
publication
thereof,
in
which
event
the
22
commissioner
may
publish
all
or
any
part
thereof
in
such
23
manner
as
the
commissioner
may
deem
appropriate.
However,
the
24
commissioner
is
authorized
to
use
the
information,
documents,
25
or
copies
obtained
by,
disclosed
to,
or
reported
or
provided
26
to
the
commissioner
as
described
in
this
subsection,
in
the
27
furtherance
of
any
regulatory
or
legal
action
brought
as
a
part
28
of
the
commissioner’s
official
duties.
29
Sec.
10.
Section
523I.808,
Code
2016,
is
amended
to
read
as
30
follows:
31
523I.808
Examination
fee.
32
An
examination
fee
shall
be
submitted
with
the
cemetery’s
33
annual
report
in
an
amount
equal
to
five
dollars
for
each
34
certificate
of
interment
rights
issued
during
the
fiscal
year
35
-9-
LSB
5203XD
(5)
86
av/nh
9/
12
S.F.
_____
H.F.
_____
time
period
covered
by
the
report.
The
cemetery
may
charge
1
the
examination
fee
directly
to
the
purchaser
of
the
interment
2
rights.
3
Sec.
11.
Section
523I.813,
subsections
1
and
2,
Code
2016,
4
are
amended
to
read
as
follows:
5
1.
A
perpetual
care
cemetery
shall
file
an
annual
report
at
6
the
end
of
each
fiscal
year
reporting
period
of
the
cemetery.
7
2.
The
report
shall
be
filed
with
the
commissioner
within
8
four
months
following
the
end
of
the
cemetery’s
fiscal
year
9
reporting
period
in
the
form
required
by
the
commissioner.
10
EXPLANATION
11
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
12
the
explanation’s
substance
by
the
members
of
the
general
assembly.
13
This
bill
relates
to
various
matters
involving
insurance
and
14
the
insurance
division
of
the
department
of
commerce.
15
UNIFORM
SECURITIES
ACT.
Code
section
502.305(2)
is
16
amended
to
provide
that
the
filing
fee
for
certain
securities
17
registration
filings
will
be
prescribed
by
rule
instead
of
18
pursuant
to
a
statutory
formula
based
on
the
proposed
aggregate
19
sales
price
of
the
securities
to
be
offered.
20
Code
section
502.305(10)
is
stricken,
eliminating
certain
21
requirements
for
amendments
to
registration
statements
when
22
securities
are
sold
in
the
state
in
excess
of
the
amount
23
registered
at
the
time
of
sale.
Code
section
502.306(1)(a)
is
24
amended
to
remove
a
cross-reference
to
the
stricken
subsection.
25
INSURANCE
FRAUD.
New
Code
section
507E.3A
provides
that
26
a
person
commits
a
class
“D”
felony
if
the
person,
with
27
intent
to
defraud
another
person
in
connection
with
any
28
sale,
solicitation,
or
negotiation
of
insurance,
willfully
29
employs
any
deception,
device,
scheme,
or
artifice
to
defraud;
30
misrepresents,
conceals,
or
suppresses
any
material
fact;
or
31
engages
in
any
act,
practice,
or
course
of
business
which
32
operates
as
a
fraud
or
deceit
upon
another
person.
A
person
33
who
commits
such
insurance
fraud
that
results
in
a
loss
of
more
34
than
$10,000
is
guilty
of
a
class
“C”
felony.
35
-10-
LSB
5203XD
(5)
86
av/nh
10/
12
S.F.
_____
H.F.
_____
A
class
“D”
felony
is
punishable
by
confinement
for
no
more
1
than
five
years
and
a
fine
of
at
least
$750
but
not
more
than
2
$7,500.
A
class
“C”
felony
is
punishable
by
confinement
for
no
3
more
than
10
years
and
a
fine
of
at
least
$1,000
but
not
more
4
than
$10,000.
5
INSURANCE
HOLDING
COMPANY
SYSTEMS.
Code
section
521A.1
is
6
amended
to
add
two
new
definitions.
Code
section
521A.1(5A)
7
defines
a
“group-wide
supervisor”
as
a
regulatory
official
8
who
is
authorized,
and
who
is
determined
or
acknowledged
by
9
the
commissioner
of
insurance
to
have
sufficient
significant
10
contacts
with
an
internationally
active
insurance
group,
to
11
engage
in
conducting
and
coordinating
group-wide
supervision
12
of
the
insurance
group.
Code
section
521A.1(7A)
defines
an
13
“internationally
active
insurance
group”
as
an
insurance
14
holding
company
system
that
includes
an
insurer
registered
to
15
do
business
in
this
state
that
is
a
member
of
an
insurance
16
holding
company
system
that
has
premiums
written
in
at
least
17
three
countries,
at
least
10
percent
of
gross
premiums
written
18
outside
the
United
States,
and
based
on
a
rolling
three-year
19
average
has
total
assets
of
at
least
$50
billion
or
total
gross
20
written
premiums
of
at
least
$10
billion.
21
Code
section
521A.6A
concerning
supervisory
colleges
22
is
amended
to
strike
subsections
(2)
and
(3)
relating
to
23
group-wide
supervisors.
Code
section
521A.6A(1)
is
amended
to
24
remove
an
internal
reference
to
subsection
(3).
25
New
Code
section
521A.6B
relates
to
group-wide
supervision
26
of
internationally
active
insurance
groups.
The
commissioner
27
may
act
as
the
group-wide
supervisor
of
an
internationally
28
active
insurance
group
in
accordance
with
the
provisions
of
29
the
new
section.
The
commissioner
may
also
authorize
another
30
regulatory
official
to
act
as
the
group-wide
supervisor
based
31
on
specified
criteria.
The
provision
requires
the
commissioner
32
to
consider
specific
factors
when
determining
whether
the
33
commissioner
or
another
regulatory
official
should
act
as
the
34
group-wide
supervisor.
The
commissioner
is
authorized
to
35
-11-
LSB
5203XD
(5)
86
av/nh
11/
12
S.F.
_____
H.F.
_____
collect
information
from
any
insurer
registered
in
the
state
1
as
a
member
of
an
insurance
holding
company
system
and
the
2
ultimate
controlling
person
within
the
internationally
active
3
insurance
group
as
necessary
for
the
commissioner
to
determine
4
or
acknowledge
who
should
be
the
group-wide
supervisor.
5
The
provision
allows
the
commissioner
to
engage
in
6
specified
activities
if
acting
as
a
group-wide
supervisor.
7
The
commissioner
may
also
acknowledge
that
another
regulatory
8
official
is
the
group-wide
supervisor
and
reasonably
cooperate
9
with
that
official
if
the
commissioner’s
cooperation
complies
10
with
Iowa
law
and
the
other
official
recognizes
and
cooperates
11
with
the
commissioner’s
activities
as
a
group-wide
supervisor
12
for
other
internationally
active
insurance
groups.
13
An
insurer
registered
in
this
state
pursuant
to
Code
chapter
14
521A
must
pay
the
reasonable
expenses
of
the
commissioner’s
15
participation
in
the
administration
of
new
Code
section
16
521A.6B,
including
the
engagement
of
experts
and
all
reasonable
17
travel
expenses.
The
commissioner
is
required
to
adopt
rules
18
pursuant
to
Code
chapter
17A
to
administer
the
new
provision.
19
Code
section
521A.7(1)
is
amended
to
provide
that
all
20
information
reported
or
provided
to
the
commissioner
pursuant
21
to
Code
section
521A.6A
and
new
Code
section
521A.6B
must
22
be
given
confidential
treatment,
shall
not
be
subject
to
23
subpoena,
shall
not
be
subject
to
discovery
or
admissible
in
24
evidence
in
a
private
civil
action,
and
shall
not
be
made
25
public
by
the
commissioner
or
any
other
person
except
under
26
specified
circumstances.
The
commissioner
is
authorized
to
27
use
such
information,
documents,
or
copies
in
the
furtherance
28
of
any
regulatory
or
legal
action
brought
as
part
of
the
29
commissioner’s
official
duties.
30
IOWA
CEMETERY
ACT.
Code
sections
521I.808
and
523I.813(1)
31
and
(2)
are
amended
to
delete
references
to
a
fiscal
year
32
relating
to
the
time
period
when
examination
fees
and
annual
33
reports
must
be
submitted
by
cemeteries
to
the
commissioner.
34
-12-
LSB
5203XD
(5)
86
av/nh
12/
12
