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STATE OF IOWA
KIM REYNOLDS
GOVERNOR
April 09, 2026
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mi - . Secretary,
I hereby transmit:
House File 2232, an Act relating to life insurance, permissible third parties, and financial
exploitation of eligible adults.
Hie above House File is hereby approved on this date.
KîîtRe^iolZs
Governor oNL
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
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House File 2232
AN ACT
RELATING TO LIFE INSURANCE, PERMISSIBLE THIRD PARTIES, AND
FINANCIAL EXPLOITATION OF ELIGIBLE ADULTS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 502.806, subsection 3, paragraph b, Code
2026, is amended to read as follows:
b. Fifteen business days after the date on which the
broker-dealer or investment adviser first delayed disbursement
of the funds or transaction, unless th e administrator — r-e^ue-s-t-s-
th e broker-d e al e r or inv e stm e nt advis e r — to e xt e nd th e delay,
in which cas e — the delay shall e xpir e no mor e than tw e nty-fiv e
busin e ss days aft e r the dat e on which th e brok e r-d e al e r or
I n v es tm e nt advis e r — first delayed the disbursement of th e funds
er — th e tra-n s action extended pursuant to paragraph "c" .
Sec. 2. Section 502.806, subsection 3, Code 2026, is amended
by adding the following new paragraphs:
NEW PARAGRAPH , c. If the internal review under subsection
2, paragraph "d" , continues to support the broker-dealer,
investment adviser, or qualified individual's reasonable belief
that the disbursement or transaction will likely result in
or contribute to the financial exploitation of an eligible
adult, the broker-dealer or investment adviser may extend the
delay beyond the initial delay under paragraph "b" for no more
than twenty-five business days after the date on which the
broker-dealer or investment adviser first delayed disbursement
House File 2232, p. 2
of the funds or transaction, unless extended pursuant to
paragraph "d".
NEW PARAGRAPH . d. If the internal review under subsection
2, paragraph "d", continues to support the broker-dealer,
investment adviser, or qualified individual's reasonable belief
that the disbursement or transaction will likely result in or
contribute to the financial exploitation of an eligible adult,
the broker-dealer or investment adviser may extend the delay
beyond the delay under paragraph "c" for no more than fifty-five
business days after the date on which the broker-dealer or
investment adviser first delayed disbursement of the funds or
transaction .
Sec. 3. Section 507E.8, subsection 1, paragraphs a and b,
Code 2026, are amended to read as follows:
a. For purposes of an arrest resulting from a criminal
violation of any provision of the Code subject to the
jurisdiction of the commissioner established as a result of an
investigation pursuant to this chapter or chapter 502, 502A,
507A, 508, 523A, 523C, 523D, or 5231.
b. While conducting an investigation or engaged in an
assignment authorized by this chapter or chapter 502, 502A,
507A, 508, 523A, 523C, 523D, or 5231.
Sec. 4. NEW SECTION . 508.101 Definitions.
As used in this chapter, unless the context otherwise
requires :
1. "Disbursement" means an attempt to withdraw money or
access a benefit from a life insurance policy, an annuity, or
any other policy, contract, or account, irrespective of whether
the request is classified as a surrender, loan, withdrawal,
partial withdrawal, accelerated benefit, or otherwise.
2. "Eligible adult" means the same as defined in section
502.801.
3. "Financial exploitation" means the same as defined in
section 502.801.
4. "Permissible third party" means any of the following:
a. An individual the eligible adult previously designated
who may be contacted about the eligible adult's policy,
contract, or account.
House File 2232, p. 3
b. A person otherwise permitted pursuant to any state or
federal law or rule to receive the notification described in
section 508.103.
5. "Qualified individual" means any of the following:
a. An insurance producer who has completed at least two
hours of continuing education focused on how to identify
suspected or attempted exploitation of an eligible adult,
including common signs indicating the financial exploitation of
an eligible adult, and how to provide notification regarding
the suspected or attempted exploitation of an eligible adult.
b. An individual who has completed training pursuant to
section 508.105.
Sec. 5. NEW SECTION . 508.102 Notification to commissioner.
1. If an insurer or qualified individual reasonably
believes financial exploitation of an eligible adult has
occurred, was attempted, or is being attempted, the insurer
or qualified individual may notify the commissioner when the
insurer or qualified individual makes a determination that
financial exploitation may have occurred, been attempted, or
is being attempted.
2. An insurer or qualified individual who, acting
reasonably and in good faith, makes a disclosure of information
to the commissioner pursuant to this chapter or under chapter
507E shall be immune from administrative or civil liability
that might otherwise arise from such disclosure or from a
failure to notify the eligible adult of the disclosure. This
section shall not abrogate or modify any existing statutory or
common law privileges or immunities.
Sec. 6. NEW SECTION . 508.103 Notification to permissible
third party.
1. If an insurer or qualified individual reasonably
believes financial exploitation of an eligible adult has
occurred, was attempted, or is being attempted, the insurer
or qualified individual may notify a permissible third party.
Notification to a permissible third party is not required prior
to the insurer's, qualified individual's, commissioner's, or
other relevant agency's review or investigation into financial
exploitation .
2. An insurer or qualified individual shall not notify a
House File 2232, p. 4
permissible third party if the insurer or qualified individual
reasonably suspects such permissible third party of financial
exploitation or other abuse of the eligible adult.
3. An eligible adult may voluntarily provide to an insurer
contact information for the eligible adult's permissible third
parties. An insurer or qualified individual shall not be held
administratively or civilly liable for failing to request
the contact information for the eligible adult's permissible
third parties. An insurer or qualified individual who, acting
reasonably and in good faith, complies with this section shall
be immune from administrative or civil liability that may
arise from disclosing the eligible adult's information to a
permissible third party.
Sec. 7. NEW SECTION . 508.104 Disbursements or transactions
— delay.
1. If an insurer or qualified individual reasonably
believes a disbursement or transaction is likely to result in,
or contribute to, the financial exploitation of an eligible
adult, the insurer or qualified individual may initiate an
internal review of the requested disbursement or transaction.
2. An insurer may delay a disbursement or transaction
from an eligible adult's policy, contract, or account, or a
policy, contract, or account on which an eligible adult is a
beneficiary, if all of the following apply:
a. The insurer or qualified individual reasonably believes,
after initiating an internal review under subsection 1, that
the requested disbursement or transaction will likely result
in or contribute to the financial exploitation of the eligible
adult .
b. Immediately, but in no event more than seven business
days after the disbursement or transaction is delayed, the
insurer provides written notification of the delay and the
reason for the delay to all persons authorized to transact
business on the policy, contract, or account. An insurer or
qualified individual shall not notify a person authorized to
transact business on the policy, contract, or account if the
insurer or qualified individual reasonably believes the person
has committed financial exploitation, attempted financial
exploitation, committed or attempted insurance fraud, or
House File 2232, p. 5
committed or attempted other abuse of the eligible adult.
c. Within seven business days after the disbursement or
transaction is delayed, the insurer notifies the commissioner
of the delay and provides to the commissioner the reason
for the delay, including the status of the internal review
initiated under subsection 1.
d. The insurer continues the internal review of the
suspected or attempted financial exploitation of the eligible
adult, as necessary, and provides the commissioner with updates
upon request.
3. Any delay of a disbursement or transaction authorized by
this section will expire upon the first to occur of any of the
following :
a. A final determination by the insurer that the
disbursement or transaction will not result in or contribute to
financial exploitation of the eligible adult.
b. Fifteen business days after the date on which the insurer
first delayed disbursement of the funds or the transaction,
unless extended pursuant to paragraph "c".
c. Provided the internal review under subsection 2,
paragraph "d", continues to support the insurer or qualified
individual's reasonable belief that the disbursement or
transaction will likely result in or contribute to the
financial exploitation of an eligible adult, the insurer may
extend the delay beyond the initial delay under paragraph "b"
for no more than twenty-five business days after the date on
which the insurer first delayed disbursement of the funds or
the transaction, unless extended pursuant to paragraph "d".
d. Provided the internal review under subsection 2,
paragraph "d", continues to support the insurer or qualified
individual's reasonable belief that the disbursement or
transaction will likely result in or contribute to the
financial exploitation of an eligible adult, the insurer may
extend the delay beyond the delay under paragraph "c" for no
more than fifty-five business days after the date on which the
insurer first delayed disbursement of the funds or transaction.
4. Notwithstanding subsection 3, upon petition of the
commissioner, the insurer who initiated a delay pursuant to
this section, or another interested party, a court of competent
House File 2232, p. 6
jurisdiction may enter an order terminating, extending, or
modifying the delay of the disbursement or transaction and may
order any other protective relief deemed necessary.
5. The commissioner may adopt rules pursuant to chapter
17A regarding the form and manner of notifications under this
section .
6. An insurer or qualified individual who, acting
reasonably and in good faith, complies with the requirements
of this section or chapter 507E shall be immune from
administrative or civil liability that may arise from a delay
in a disbursement or transaction initiated pursuant to this
section .
Sec. 8. NEW SECTION . 508.105 Training requirements.
1. An insurer shall provide training to supervisors and
employees employed by the insurer who handle or advise on
complaints, possible fraud, and investigations no later than
June 30, 2027. The training shall include instruction on all
of the following:
a. Identifying suspected or attempted exploitation
of an eligible adult, including common signs indicating
financial exploitation of an eligible adult and how to provide
notification regarding the suspected or attempted exploitation
of an eligible adult.
b. Privacy and confidentiality requirements.
2. An insurer shall provide the training required under
subsection 1 as soon as reasonably practicable after the date
a supervisor or employee begins employment with or becomes
affiliated or associated with the insurer, but no later than
one year after that date.
3. An insurer shall not be required to provide training
under this section to a qualified individual employed by the
insurer .
4. The commissioner may adopt rules pursuant to chapter 17A
specifying the content and method of training required under
this section.
Sec. 9. NEW SECTION . 508.106 Records.
An insurer shall provide access to or copies of records
that are relevant to the suspected or attempted financial
exploitation of an eligible adult to the commissioner and
House File 2232, p. 7
to law enforcement, either as part of a referral to the
commissioner or law enforcement, or upon the request of the
commissioner or law enforcement pursuant to an investigation.
The records may include historical records as well as records
relating to the most recent transactions and disbursement
requests from the policies, contracts, or accounts that may
indicate financial exploitation of an eligible adult. All
records made available to the commissioner or law enforcement
pursuant to this section shall be considered confidential
public records under chapter 22 and shall not be available
for examination by the public pursuant to section 22.2. This
section shall not be construed to limit or otherwise impede the
authority of the commissioner to access or examine the books
and records of insurers as otherwise provided by law.
Sec. 10. CODE EDITOR DIRECTIVE. The Code editor is directed
to designate sections 508.1 through 508.39, as amended by
this Act, as subchapter I of chapter 508 entitled "General
Provisions", and to designate sections 508.101 through 508.106,
as enacted by this Act, as subchapter II of chapter 508
entitled "Financial Exploitation of Eligible Adults".
AT GRASSKEY
Speaker £f the House
AMY SINCLAIR
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2232, Ninety-first General Assembly.
MEGHAN NELSON
KIM REYNOLDS
Governor