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House
File
986
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HOUSE
FILE
986
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
911)
(SUCCESSOR
TO
HSB
256)
(As
Amended
and
Passed
by
the
House
April
24,
2025
)
A
BILL
FOR
An
Act
relating
to
matters
under
the
purview
of
the
department
1
of
insurance
and
financial
services,
the
utilities
2
commission,
and
the
department
of
transportation,
including
3
financial
literacy
and
exploitation,
tax
confidentiality,
4
health
insurance
rates,
health
savings
accounts,
insurer
5
withdrawals,
property
insurance,
service
contracts,
the
6
Iowa
individual
health
benefit
reinsurance
association,
and
7
the
Iowa
cemetery
Act,
motor
vehicle
financial
liability
8
coverage,
and
including
penalties
and
effective
date
9
provisions.
10
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
11
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986
DIVISION
I
1
FINANCIAL
LITERACY
AND
FINANCIAL
EXPLOITATION
2
Section
1.
Section
502.410,
subsection
2,
Code
2025,
is
3
amended
to
read
as
follows:
4
2.
Agents.
The
fee
for
an
individual
is
forty
dollars
5
when
filing
an
application
for
registration
as
an
agent,
a
fee
6
of
forty
dollars
when
filing
a
renewal
of
registration
as
an
7
agent,
and
a
fee
of
forty
dollars
when
filing
for
a
change
of
8
registration
as
an
agent.
Of
each
forty-dollar
fee
collected,
9
ten
dollars
is
appropriated
to
the
securities
investor
10
education
and
financial
literacy
training
fund
established
11
under
financial
literacy
and
investor
education
fund
created
12
in
section
502.601,
subsection
5
546.14,
and
ten
dollars
is
13
appropriated
to
the
financial
exploitation
prevention
fund
14
created
in
section
546.15
.
If
the
filing
results
in
a
denial
15
or
withdrawal,
the
administrator
shall
retain
the
fee.
16
Sec.
2.
Section
502.601,
subsection
4,
Code
2025,
is
amended
17
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
18
following:
19
4.
Financial
literacy
and
investor
education.
Initiatives
20
involving
financial
literacy
and
investor
education
shall
21
comply
with
the
initiatives
in
section
546.14,
subsection
1,
22
and
section
546.15,
subsection
1.
23
Sec.
3.
Section
502.601,
subsection
5,
Code
2025,
is
amended
24
by
striking
the
subsection.
25
Sec.
4.
Section
505.7,
subsection
3,
Code
2025,
is
amended
26
to
read
as
follows:
27
3.
Forty
percent
of
the
nonexamination
Nonexamination
28
revenues
payable
to
the
division
of
insurance
or
the
department
29
of
revenue
in
connection
with
the
regulation
of
insurance
30
companies
or
other
entities
subject
to
the
regulatory
31
jurisdiction
of
the
division
shall
be
deposited
in
the
commerce
32
revolving
fund
created
in
section
546.12
and
shall
be
subject
33
to
annual
appropriation
to
the
division
for
its
operations
34
and
is
also
subject
to
expenditure
under
subsection
6
.
The
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remaining
nonexamination
revenues
payable
to
the
division
of
1
insurance
or
the
department
of
revenue
shall
be
deposited
in
2
the
general
fund
of
the
state.
3
Sec.
5.
Section
505.8,
subsection
17,
Code
2025,
is
amended
4
to
read
as
follows:
5
17.
a.
The
commissioner
shall
utilize
the
senior
health
6
insurance
information
program
to
assist
in
the
dissemination
7
of
objective
and
noncommercial
educational
material
and
to
8
raise
awareness
of
prudent
consumer
choices
in
considering
the
9
purchase
of
various
insurance
products
designed
for
the
health
10
care
needs
of
older
Iowans.
11
b.
A
senior
health
insurance
information
program
fund
12
is
created
in
the
state
treasury
under
the
control
of
the
13
commissioner
and
moneys
in
the
fund
are
appropriated
to
the
14
division
for
the
purposes
specified
in
paragraph
“a”
.
15
c.
Notwithstanding
any
law
to
the
contrary,
moneys
shall
be
16
deposited
into
the
senior
health
insurance
information
fund
as
17
follows:
18
(1)
Any
appropriation
made
by
the
general
assembly
from
the
19
general
fund
for
the
purpose
of
paragraph
“a”
.
20
(2)
Any
moneys
available
to
and
obtained
or
accepted
by
the
21
division
from
the
federal
government
for
deposit
in
the
senior
22
health
insurance
information
fund.
23
(3)
Any
other
moneys
or
grants
secured
by
the
division
that
24
align
with
the
purpose
of
paragraph
“a”
.
25
d.
Notwithstanding
section
12C.7,
subsection
2,
interest
or
26
earnings
on
moneys
deposited
in
the
senior
health
information
27
program
fund
shall
be
credited
to
the
senior
health
information
28
program
fund.
Notwithstanding
section
8.33,
moneys
in
the
29
senior
health
information
program
fund
that
remain
unencumbered
30
or
unobligated
at
the
close
of
a
fiscal
year
shall
not
revert
31
but
shall
remain
available
for
expenditure
for
the
purposes
32
designated.
33
Sec.
6.
Section
546.2,
subsection
4,
Code
2025,
is
amended
34
by
adding
the
following
new
paragraph:
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NEW
PARAGRAPH
.
g.
To
identify
and
coordinate
appropriate
1
opportunities
for
collaboration
under
sections
546.14
and
2
546.15
with
the
chief
administrative
officers
of
each
division
3
and
each
chief
administrative
officer’s
respective
regulated
4
entities.
5
Sec.
7.
NEW
SECTION
.
546.14
Financial
literacy
and
investor
6
education
fund.
7
1.
The
director
shall
develop
and
implement
financial
8
literacy
and
investor
education
initiatives
for
the
public
by
9
providing
education
on
financial
topics,
including
but
not
10
limited
to
the
topics
required
to
be
offered
and
taught
for
11
grades
nine
through
twelve
under
section
256.11,
subsection
5,
12
paragraph
“k”
,
subparagraph
(1).
13
2.
A
financial
literacy
and
investor
education
fund
is
14
created
in
the
state
treasury
under
the
control
of
the
director
15
for
the
purposes
specified
in
subsection
1.
The
fund
shall
16
consist
of
any
moneys
appropriated
to
the
fund
by
the
general
17
assembly
and
any
other
moneys
available
and
obtained
or
18
accepted
by
the
department
for
placement
in
the
fund
including
19
all
of
the
following:
20
a.
Moneys
appropriated
to
the
fund
pursuant
to
section
21
502.410,
subsection
2.
22
b.
Notwithstanding
any
provision
of
law
to
the
contrary,
23
the
director
may,
at
the
director’s
discretion,
transfer
up
to
24
two
hundred
fifty
thousand
dollars
from
the
commerce
revolving
25
fund
created
in
section
546.12
to
complete
the
objectives
under
26
subsection
1.
27
c.
Notwithstanding
any
provision
of
law
to
the
contrary,
28
any
moneys
received
by
the
department
by
reason
of
civil
29
penalties
assessed
pursuant
to
chapter
502
may
be
deposited
30
in
the
financial
literacy
and
investor
education
fund
at
the
31
discretion
of
the
director.
32
d.
The
director
may
collaborate
with
organizations
with
an
33
interest
in
financial
literacy
and
investor
education.
The
34
director
may
accept
a
grant
or
donation
to
be
placed
in
the
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financial
literacy
and
investor
education
fund.
1
3.
Notwithstanding
any
provision
of
law
to
the
contrary,
2
moneys
in
the
financial
literacy
and
investor
education
fund
3
may
be
transferred
to
the
financial
exploitation
prevention
4
fund
in
section
546.15
at
the
discretion
of
the
director.
5
4.
Notwithstanding
section
12C.7,
subsection
2,
interest
or
6
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
7
Notwithstanding
section
8.33,
moneys
appropriated
in
this
8
section
that
remain
unencumbered
or
unobligated
at
the
close
of
9
a
fiscal
year
shall
not
revert
but
shall
remain
available
for
10
expenditure
for
the
purposes
designated.
11
Sec.
8.
NEW
SECTION
.
546.15
Financial
exploitation
12
prevention
fund.
13
1.
The
director
shall
develop
and
implement
initiatives
to
14
accomplish
all
of
the
following:
15
a.
Educate
the
public
on
financial
exploitation.
16
b.
Assist
individuals
who
are
known,
suspected,
or
potential
17
victims
of
financial
exploitation.
18
c.
Conduct
investigations,
refer
investigations
to
other
law
19
enforcement,
and
assist
in
the
prosecution
of
persons
involved
20
in
financial
exploitation.
21
2.
A
financial
exploitation
prevention
fund
is
created
22
in
the
state
treasury
under
the
control
of
the
director
and
23
consists
of
any
moneys
appropriated
to
the
fund
by
the
general
24
assembly
for
the
purposes
of
subsection
1,
and
any
other
moneys
25
available
and
obtained
or
accepted
by
the
department
for
26
placement
in
the
fund
including
all
of
the
following:
27
a.
Moneys
appropriated
to
the
fund
pursuant
to
section
28
502.410,
subsection
2.
29
b.
Notwithstanding
any
provision
of
law
to
the
contrary,
the
30
director
may,
at
the
director’s
discretion,
transfer
up
to
two
31
hundred
fifty
thousand
dollars
from
the
commerce
revolving
fund
32
to
complete
the
objectives
of
this
section.
33
c.
Notwithstanding
any
provision
of
law
to
the
contrary,
34
any
moneys
received
by
the
department
as
a
result
of
civil
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penalties
assessed
pursuant
to
chapter
502
may
be
placed
into
1
the
financial
exploitation
prevention
fund
at
the
discretion
of
2
the
director.
3
d.
The
director
may
collaborate
with
organizations
with
an
4
interest
in
financial
exploitation
prevention
and
education.
5
e.
The
director
may
accept
a
grant
or
donation
to
be
placed
6
in
the
financial
exploitation
prevention
fund.
7
3.
Notwithstanding
section
12C.7,
subsection
2,
interest
or
8
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
9
Notwithstanding
section
8.33,
moneys
appropriated
in
this
10
section
that
remain
unencumbered
or
unobligated
at
the
close
of
11
a
fiscal
year
shall
not
revert
but
shall
remain
available
for
12
expenditure
for
the
purposes
designated.
13
4.
a.
All
investigation
files,
investigation
reports,
14
and
all
other
investigative
information
in
the
possession
of
15
the
department
pursuant
to
this
section
shall
be
confidential
16
records
under
chapter
22,
except
as
specifically
provided
in
17
this
section,
and
shall
not
be
subject
to
release
by
discovery,
18
subpoena,
or
other
means
of
legal
compulsion
until
opened
for
19
public
inspection
by
the
department,
or
upon
the
consent
of
20
the
department,
or
until
a
court
of
competent
jurisdiction
21
determines,
after
notice
to
the
department
and
hearing,
22
that
the
department
will
not
be
unnecessarily
hindered
in
23
accomplishing
the
purposes
of
this
section
if
opened
for
public
24
inspection.
Investigative
information
in
the
possession
of
25
the
department
may
be
disclosed,
in
the
director’s
discretion,
26
to
appropriate
regulatory
or
law
enforcement
agencies
within
27
the
state,
another
state,
the
District
of
Columbia,
or
another
28
territory
or
country.
29
b.
The
director
may
share
documents,
materials,
or
other
30
information,
including
confidential
and
privileged
documents,
31
materials,
or
other
information,
with
any
person
provided
32
that
the
recipient
agrees
to
maintain
the
confidential
33
and
privileged
status
of
the
document,
material,
or
other
34
information
pursuant
to
Iowa
law.
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c.
The
director
may
receive
documents,
materials,
or
other
1
information,
including
confidential
and
privileged
documents,
2
materials,
or
other
information
from
any
person
and
shall
3
maintain
as
confidential
and
privileged
any
document,
material,
4
or
other
information
received
with
notice
or
the
understanding
5
that
it
is
confidential
or
privileged
under
the
laws
of
the
6
jurisdiction
that
is
the
source
of
the
document,
material,
or
7
other
information.
8
d.
The
director
may
enter
into
an
agreement
governing
the
9
sharing
and
use
of
documents,
materials,
or
other
information
10
consistent
with
this
section.
11
e.
An
investigator
or
other
staff
member
of
the
department
12
shall
not
be
subject
to
subpoena
in
a
civil
action
concerning
13
any
matter
of
which
the
department
investigator
or
other
staff
14
member
has
knowledge
pursuant
to
a
pending
or
continuing
15
investigation
conducted
by
the
department
pursuant
to
this
16
chapter.
17
Sec.
9.
TRANSFER
OF
MONEYS.
On
the
effective
date
of
this
18
division
of
this
Act,
any
unencumbered
and
unobligated
moneys
19
remaining
in
the
securities
investor
education
and
financial
20
literacy
training
fund
created
in
section
502.601
shall
be
21
transferred
to
the
financial
literacy
and
investor
education
22
fund
created
in
section
546.14,
as
enacted
in
this
division
of
23
this
Act.
24
DIVISION
II
25
TAX
ON
GROSS
PREMIUMS
——
CONFIDENTIALITY
26
Sec.
10.
Section
432.1,
Code
2025,
is
amended
by
adding
the
27
following
new
subsection:
28
NEW
SUBSECTION
.
7.
a.
A
tax
return
filed
under
this
29
section
shall
not
be
subject
to
inspection
under
chapter
22.
30
It
shall
be
unlawful
for
any
present
or
former
officer
or
31
employee
of
the
state
to
willfully
or
recklessly
publish
any
32
tax
return
filed
under
this
section.
A
person
who
violates
33
this
paragraph
shall
be
guilty
of
a
serious
misdemeanor
and,
in
34
addition
to
any
other
penalty,
shall
be
dismissed
from
state
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office
or
discharged
from
state
employment.
1
b.
This
section
shall
not
be
construed
to
prohibit
the
2
department
of
revenue
from
turning
over
information
and
tax
3
returns
in
the
department
of
revenue’s
possession
pursuant
4
to
this
subsection
to
duly
authorized
officers
of
the
United
5
States,
or
tax
officials
of
other
states,
pursuant
to
an
6
agreement
between
the
commissioner
of
insurance
and
any
of
the
7
following:
8
(1)
The
secretary
of
the
treasury
of
the
United
States,
or
9
the
secretary’s
delegate.
10
(2)
The
commissioner
of
insurance
of
another
state.
11
Sec.
11.
Section
432.1A,
Code
2025,
is
amended
by
adding
the
12
following
new
subsection:
13
NEW
SUBSECTION
.
8.
a.
A
tax
return
filed
under
this
14
section
shall
not
be
subject
to
inspection
under
chapter
22.
15
It
shall
be
unlawful
for
any
present
or
former
officer
or
16
employee
of
the
state
to
willfully
or
recklessly
publish
any
17
tax
return
filed
under
this
section.
A
person
who
violates
18
this
paragraph
shall
be
guilty
of
a
serious
misdemeanor
and,
in
19
addition
to
any
other
penalty,
shall
be
dismissed
from
state
20
office
or
discharged
from
state
employment.
21
b.
This
section
shall
not
be
construed
to
prohibit
the
22
department
of
revenue
from
turning
over
information
and
23
tax
returns
in
the
department’s
possession
pursuant
to
this
24
subsection
to
duly
authorized
officers
of
the
United
States,
or
25
tax
officials
of
other
states,
pursuant
to
an
agreement
between
26
the
commissioner
of
insurance
and
any
of
the
following:
27
(1)
The
secretary
of
the
treasury
of
the
United
States,
or
28
the
secretary’s
delegate.
29
(2)
The
commissioner
of
insurance
of
another
state.
30
DIVISION
III
31
HEALTH
INSURANCE
RATE
INCREASES
——
PUBLIC
HEARINGS
32
Sec.
12.
Section
505.19,
subsection
2,
Code
2025,
is
amended
33
to
read
as
follows:
34
2.
The
commissioner
shall
may
hold
a
public
hearing
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at
the
time
a
carrier
files
for
proposed
health
insurance
1
rate
increases
exceeding
the
average
annual
health
spending
2
growth
rate
as
provided
in
subsection
1
,
prior
to
approval
or
3
disapproval
of
the
proposed
rate
increases
for
that
carrier
by
4
the
commissioner.
5
DIVISION
IV
6
HEALTH
SAVINGS
ACCOUNTS
AND
QUALIFIED
HIGH-DEDUCTIBLE
HEALTH
7
PLANS
——
COST-SHARING
8
Sec.
13.
NEW
SECTION
.
509.3B
Health
savings
accounts
and
9
qualified
high-deductible
health
plans
——
cost-sharing.
10
If
a
copayment,
coinsurance,
or
deductible
paid
as
11
cost-sharing
by
an
enrollee
under
this
chapter
may
result
in
12
the
enrollee
becoming
ineligible
for
a
health
savings
account
13
associated
with
the
enrollee’s
qualified
high-deductible
14
health
plan
under
section
223
of
the
Internal
Revenue
Code,
15
the
cost-sharing
shall
apply
only
to
the
enrollee’s
qualified
16
high-deductible
health
plan
after
the
enrollee
satisfies
the
17
enrollee’s
minimum
deductible,
except
for
items
or
services
18
determined
to
be
preventive
care
under
section
223(c)(2)(C)
of
19
the
Internal
Revenue
Code.
20
Sec.
14.
NEW
SECTION
.
514A.3C
Health
savings
accounts
and
21
qualified
high-deductible
health
plans
——
cost-sharing.
22
If
a
copayment,
coinsurance,
or
deductible
paid
as
23
cost-sharing
by
an
enrollee
under
this
chapter
may
result
in
24
the
enrollee
becoming
ineligible
for
a
health
savings
account
25
associated
with
the
enrollee’s
qualified
high-deductible
26
health
plan
under
section
223
of
the
Internal
Revenue
Code,
27
the
cost-sharing
shall
apply
only
to
the
enrollee’s
qualified
28
high-deductible
health
plan
after
the
enrollee
satisfies
the
29
enrollee’s
minimum
deductible,
except
for
items
or
services
30
determined
to
be
preventive
care
under
section
223(c)(2)(C)
of
31
the
Internal
Revenue
Code.
32
DIVISION
V
33
INSURANCE
COMPANY
WITHDRAWAL
REQUIREMENTS
34
Sec.
15.
NEW
SECTION
.
505.36
Insurer
——
withdrawal
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requirements.
1
1.
Definitions.
As
used
in
this
section,
unless
the
context
2
otherwise
requires:
3
a.
“Commissioner”
means
the
commissioner
of
insurance.
4
b.
“Insurer”
means
an
insurance
company,
an
affiliate
of
5
an
insurance
company,
or
other
legal
entity
authorized
to
6
engage
in
the
business
of
insurance
in
this
state,
including
7
a
reciprocal
exchange,
an
interinsurance
exchange,
and
a
8
lloyd’s
plan.
“Insurer”
does
not
include
an
eligible
surplus
9
lines
insurer
under
chapter
515I,
a
county
mutual
insurance
10
association
under
chapter
518,
a
state
mutual
insurance
11
association
under
chapter
518A,
an
entity
offering
health
12
coverage,
or
an
entity
offering
accident
and
sickness
coverage.
13
2.
Exemption.
This
section
shall
not
apply
to
a
transfer
of
14
business
from
one
insurer
to
another
insurer
if
the
insurer
to
15
whom
the
business
is
being
transferred
is
all
of
the
following:
16
a.
Within
the
same
insurance
holding
company
system
as
the
17
insurer
from
whom
business
is
being
transferred.
18
b.
Authorized
to
engage
in
the
business
of
insurance
in
this
19
state.
20
c.
Not
a
reciprocal
or
interinsurance
exchange,
a
lloyd’s
21
plan,
a
state
mutual
insurance
association,
or
a
county
mutual
22
insurance
association.
23
3.
Withdrawal
plan
required.
An
insurer
shall
file
a
24
withdrawal
plan
with
the
commissioner
in
any
of
the
following
25
circumstances:
26
a.
The
insurer
intends
to
reduce
the
insurer’s
total
annual
27
premium
volume
in
the
state
by
fifty
percent
or
more.
28
b.
For
an
insurer
whose
premiums
for
the
immediately
29
preceding
year
are
greater
than
one
tenth
of
one
percent
of
the
30
total
direct
premiums
written
in
this
state
by
all
insurers
31
for
that
line
of
business
in
the
four
most
recent
quarters
of
32
published
data
on
the
division’s
internet
site,
the
insurer
33
intends
to
reduce
the
insurer’s
total
annual
premium
in
the
34
state
in
a
line
of
insurance
by
seventy-five
percent
or
more.
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c.
For
any
line
of
business
with
annual
premiums
greater
1
than
twenty
thousand
dollars,
the
insurer
intends
to
reduce
the
2
insurer’s
total
annual
premium
volume
in
the
state
in
a
line
of
3
private
passenger
automobile
insurance,
homeowners
insurance,
4
or
dwelling
property
insurance
by
fifty
percent
or
more.
5
4.
Withdrawal
plan.
6
a.
A
withdrawal
plan
filed
under
this
section
shall
provide
7
for
all
of
the
following:
8
(1)
The
insurer
fulfilling
all
contractual
obligations.
9
(2)
The
insurer
providing
service
to
all
policyholders
and
10
claimants.
11
(3)
The
insurer
meeting
all
statutory
obligations,
12
including
but
not
limited
to
payment
of
assessments
to
the
13
guaranty
fund
and
participation
in
an
assigned
risk
plan.
14
b.
A
withdrawal
plan
filed
pursuant
to
this
section
shall,
15
at
a
minimum,
include
all
of
the
following:
16
(1)
The
date
on
which
the
insurer
proposes
to
commence
17
execution
of
the
withdrawal
plan,
and
the
date
on
which
18
execution
of
the
withdrawal
plan
will
be
completed.
19
(2)
The
reason
for
withdrawal
for
each
line
of
insurance.
20
(3)
Each
policy
form
by
number,
and
all
of
the
following
21
information:
22
(a)
The
total
number
of
policyholders.
23
(b)
The
total
amount
of
premiums
impacted
for
each
line
of
24
insurance.
25
(4)
The
total
number
of
insurance
producers
impacted
for
26
each
line
of
insurance.
27
(5)
A
copy
of
the
notification
the
insurer
will
provide
to
28
each
impacted
insurance
producer.
29
(6)
A
copy
of
the
notification
or
nonrenewal
the
insurer
30
will
provide
to
each
impacted
policyholder.
31
(7)
Details
regarding
the
insurer’s
fulfillment
of
32
contractual
obligations
to
the
insurer’s
policyholders
during
33
the
withdrawal.
34
(8)
Whether
replacement
coverage
will
be
provided
to
a
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policyholder
and,
if
so,
the
insurer
shall
provide
all
of
the
1
following:
2
(a)
The
insurer’s
relationship
with
the
replacing
insurer.
3
(b)
The
underwriting
requirements
and
rates
that
will
be
4
used
to
underwrite
the
policyholder.
5
(9)
An
estimate
of
the
percentage
of
the
Iowa
market
6
affected
by
withdrawal.
7
(10)
Any
third-party
contracts
that
provide
for
continuity
8
of
coverage
for
policyholders.
9
(11)
A
list
of
the
lines
of
insurance
that
the
insurer
will
10
continue
to
offer
in
the
state.
11
5.
Commissioner
approval.
12
a.
Except
as
provided
in
paragraph
“b”
,
the
commissioner
13
shall
approve
a
withdrawal
plan
that
has
been
determined
to
14
meet
all
of
the
following
requirements:
15
(1)
The
withdrawal
plan
provides
a
minimum
of
one
hundred
16
eighty
calendar
days’
notice
to
the
commissioner.
17
(2)
The
withdrawal
plan
includes
notice
to
policyholders
as
18
required
by
chapter
515.
19
(3)
The
withdrawal
plan
complies
with
subsection
4.
20
b.
If
the
commissioner
finds
that
a
withdrawal
plan
does
21
not
comply
with
paragraph
“a”
,
the
commissioner
may
modify,
22
restrict,
limit,
or
deny
the
withdrawal
plan.
23
c.
An
insurer
may
request
a
hearing
within
thirty
calendar
24
days
of
the
commissioner’s
decision
to
modify,
restrict,
limit,
25
or
deny
the
insurer’s
withdrawal
plan.
A
hearing
under
this
26
paragraph
shall
be
held
within
sixty
calendar
days
of
the
27
insurer’s
request
unless
a
later
date
is
agreed
to
by
the
28
insurer
and
the
commissioner,
or
permitted
by
the
commissioner
29
for
good
cause.
30
6.
Resumption
of
writing
insurance
after
withdrawal.
An
31
insurer
that
withdraws
from
writing
all
lines
of
insurance
32
in
the
state
shall
not,
without
prior
approval
of
the
33
commissioner,
resume
writing
insurance
in
the
state
for
a
34
minimum
of
five
years
from
the
date
of
completion
of
the
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insurer’s
withdrawal.
1
7.
Remedies.
A
violation
of
this
section
shall
constitute
2
an
unfair
method
of
competition
and
unfair
or
deceptive
act
or
3
practice
under
section
507B.4.
4
8.
Rules.
The
commissioner
may
adopt
rules
pursuant
5
to
chapter
17A
as
necessary
to
administer
and
enforce
this
6
section.
7
Sec.
16.
Section
507B.4,
subsection
3,
Code
2025,
is
amended
8
by
adding
the
following
new
paragraph:
9
NEW
PARAGRAPH
.
v.
Improper
withdrawal
of
an
10
insurer.
Failure
of
an
insurer
to
comply
with
section
11
505.36.
As
used
in
this
paragraph,
“insurer”
means
the
same
as
12
defined
in
section
505.36,
subsection
1.
13
DIVISION
VI
14
SERVICE
COMPANIES,
SERVICE
CONTRACTS,
AND
LICENSES
15
Sec.
17.
Section
507B.4,
subsection
3,
Code
2025,
is
amended
16
by
adding
the
following
new
paragraph:
17
NEW
PARAGRAPH
.
v.
Service
contracts.
Failure
of
a
person
18
in
the
business
of
service
contracts
to
comply
with
chapter
19
523C.
20
Sec.
18.
Section
523C.1,
Code
2025,
is
amended
by
adding
the
21
following
new
subsections:
22
NEW
SUBSECTION
.
1A.
“Communicating
in
a
verifiable
manner”
23
means
communication
by
in-person
delivery,
email,
or,
if
there
24
is
an
auditable
record
of
the
communication,
by
telephone.
25
NEW
SUBSECTION
.
6A.
“Person”
means
an
individual
or
a
26
business
entity.
27
NEW
SUBSECTION
.
12A.
“Service
contract
holder”
means
the
28
original
purchaser
of
a
service
contract
or
the
successor
in
29
interest
or
transferee
entitled
to
services
under
the
service
30
contract.
31
NEW
SUBSECTION
.
12B.
“Substitute
part”
means
a
part
that
is
32
not
issued
by
the
original
part
manufacturer,
including
but
not
33
limited
to
a
remanufactured
part,
an
aftermarket
part,
and
a
34
part
obtained
from
a
salvage
yard.
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NEW
SUBSECTION
.
12C.
“Support
services”
means
a
person
that
1
provides
services
that
support,
or
a
person
that
works
under
2
the
direction
of,
a
licensed
service
company
in
connection
with
3
the
issuance,
offer
for
sale,
sale,
or
administration
of
a
4
service
contract
in
this
state,
including
but
not
limited
to
a
5
person
that
provides
marketing,
administrative,
or
technical
6
support
to
a
service
company.
7
Sec.
19.
Section
523C.1,
subsection
4,
Code
2025,
is
amended
8
to
read
as
follows:
9
4.
“Motor
vehicle”
means
any
vehicle
that
is
self-propelled
10
vehicle
and
subject
to
registration
under
chapter
321
.
11
Sec.
20.
Section
523C.2,
Code
2025,
is
amended
by
striking
12
the
section
and
inserting
in
lieu
thereof
the
following:
13
523C.2
License
required.
14
1.
A
person
that
shall
be
contractually
obligated
to
the
15
service
contract
holder
under
the
terms
of
the
service
contract
16
shall
not
directly
or
indirectly
issue,
offer
for
sale,
or
17
sell
a
motor
vehicle
service
contract
or
residential
service
18
contract
in
this
state
unless
the
person
is
a
licensed
service
19
company.
20
2.
This
chapter
shall
not
apply
to
any
person
that
provides
21
support
services.
A
service
company
that
utilizes
support
22
services
shall
ensure
the
support
services’
compliance
with
the
23
issuance,
offer
for
sale,
or
sale
of
a
service
contract
under
24
this
chapter.
25
3.
A
service
company
shall
maintain
a
license
for
the
26
duration
of
time
that
the
service
company
is
contractually
27
obligated
to
a
service
contract
holder
under
the
terms
of
a
28
service
contract.
29
4.
A
service
company
shall
report
to
the
commissioner
30
within
thirty
calendar
days
any
material
change
to
the
31
information
submitted
by
the
service
company
in
the
service
32
company’s
initial
license
application,
or
license
renewal
33
application,
including
a
change
in
the
service
company’s
34
contact
information,
ownership,
officers
or
directors
directly
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responsible
for
the
provider’s
service
contract
business,
1
or
any
other
change
that
substantially
affects
the
service
2
company’s
operations
in
the
state.
3
5.
A
service
company
shall
report
to
the
commissioner
any
4
administrative
action
taken
against
the
service
company
in
5
another
jurisdiction
within
thirty
calendar
days
of
the
final
6
disposition.
The
report
shall
include
a
copy
of
the
order,
7
consent
to
the
order,
and
other
relevant
legal
documents.
8
6.
Within
thirty
calendar
days
of
the
initial
pretrial
9
hearing
date,
a
service
company
shall
report
to
the
10
commissioner
a
criminal
prosecution
in
any
jurisdiction
of
an
11
owner
with
more
than
a
ten
percent
ownership
stake,
an
officer,
12
or
a
director
directly
responsible
for
the
service
contract
13
business
of
the
service
company,
for
an
offense
involving
14
dishonesty
or
a
false
statement
including
but
not
limited
15
to
fraud,
theft,
misappropriation
of
funds,
falsification
16
of
documents,
deceptive
acts
or
practices,
or
other
related
17
offenses.
The
report
shall
include
a
copy
of
the
initial
18
complaint
filed,
the
order
resulting
from
the
hearing,
and
any
19
other
relevant
legal
documents.
20
Sec.
21.
Section
523C.3,
Code
2025,
is
amended
by
striking
21
the
section
and
inserting
in
lieu
thereof
the
following:
22
523C.3
Application
for
license.
23
1.
Application
for
a
license
as
a
service
company
24
shall
be
filed
with
the
commissioner
on
a
form
approved
25
by
the
commissioner
and
shall
include
all
of
the
following
26
information:
27
a.
The
name
and
principal
address
of
the
applicant.
28
b.
The
state
of
incorporation
of
the
applicant.
29
c.
The
name
and
address
of
the
applicant’s
registered
agent
30
for
service
of
process
in
Iowa.
31
d.
The
legal
name
of
all
of
the
following:
32
(1)
Each
owner
of
the
service
company
that
has
a
greater
33
than
ten
percent
ownership
stake
in
the
service
company.
34
(2)
Each
officer
of
the
service
company.
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Each
director
directly
responsible
for
the
business
of
1
the
service
company.
2
e.
A
certificate
of
good
standing
for
the
applicant
issued
3
by
the
secretary
of
state
and
dated
not
more
than
thirty
4
calendar
days
from
the
date
of
the
application.
5
f.
Evidence
of
compliance
with
section
523C.5.
6
g.
A
copy
of
each
motor
vehicle
service
contract
form
to
be
7
used,
issued,
or
offered
for
sale
in
this
state
by
the
service
8
company.
9
h.
A
copy
of
each
residential
service
contract
form
to
be
10
used,
issued,
or
offered
for
sale
in
this
state
by
the
service
11
company.
12
i.
A
national
association
of
insurance
commissioners’
13
biographical
affidavit
and
the
verification
of
the
biographical
14
affidavit
for
the
chief
executive
officer
and
chief
financial
15
officer
of
the
service
company,
or
for
the
individuals
in
16
the
equivalent
positions.
The
service
company
shall
use
a
17
third-party
vendor
from
a
list
of
vendors
approved
by
the
18
commissioner
to
verify
the
biographical
affidavits.
The
19
service
company
shall
pay
all
costs
associated
with
the
20
required
verifications.
21
j.
A
list
of
any
disciplinary
actions
taken
against
the
22
service
company,
or
any
of
the
service
company’s
owners,
23
officers,
or
directors
directly
responsible
for
the
provider’s
24
service
contract
business,
in
the
immediately
preceding
ten
25
years
by
a
regulatory
agency
or
state
attorney
general
in
any
26
jurisdiction.
27
2.
The
application
shall
be
accompanied
by
all
of
the
28
following:
29
a.
A
license
fee
in
the
amount
of
five
hundred
dollars.
30
b.
A
fee
in
the
amount
of
thirty-five
dollars
for
each
motor
31
vehicle
service
contract
form
provided
pursuant
to
subsection
32
1,
paragraph
“g”
.
33
3.
If
the
application
for
a
service
company
license
contains
34
the
information
under
subsection
1,
is
accompanied
by
the
fees
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under
subsection
2,
and
the
commissioner
has
not
denied
the
1
application
pursuant
to
section
523C.9,
the
commissioner
shall
2
issue
the
license
to
the
applicant.
3
4.
Fees
collected
under
this
section
shall
be
deposited
4
into
the
service
company
oversight
fund
as
provided
in
section
5
523C.24.
6
Sec.
22.
Section
523C.4,
Code
2025,
is
amended
by
striking
7
the
section
and
inserting
in
lieu
thereof
the
following:
8
523C.4
License
expiration
and
renewal.
9
1.
A
license
issued
under
this
chapter
shall
be
valid
for
a
10
period
of
one
year.
A
license
that
is
not
renewed
prior
to
the
11
expiration
date
shall
be
deemed
expired.
Prior
to
a
license
12
expiration
date,
and
if
a
renewal
application
was
submitted
at
13
least
fourteen
calendar
days
prior
to
the
license
expiration
14
date,
the
commissioner
may
extend
the
renewal
period
for
an
15
additional
thirty
calendar
days.
16
2.
An
application
for
license
renewal
shall
include
the
17
information
required
for
an
initial
license
as
described
in
18
section
523C.3,
subsection
1,
paragraphs
“a”
through
“f”
,
19
and
a
list
of
each
service
contract
form
the
service
company
20
continues
to
use,
offer
for
sale,
or
issue
in
the
state,
21
including
the
service
contract
form
name,
number,
and
the
date
22
the
form
was
last
revised.
23
3.
The
license
renewal
application
shall
be
accompanied
by
24
all
of
the
following:
25
a.
A
license
renewal
fee
in
the
amount
of
two
hundred
26
dollars.
27
b.
A
fee
in
the
amount
of
three
percent
of
the
aggregate
28
amount
of
payments
the
service
company
received
for
the
sale
29
or
issuance
of
residential
service
contracts
in
this
state
30
during
the
period
beginning
on
the
date
the
service
company’s
31
license
was
issued
until
the
date
of
the
service
company’s
32
renewal
filing,
provided
that
such
fee
shall
be
no
less
than
33
one
hundred
dollars
and
no
greater
than
fifty
thousand
dollars.
34
c.
A
fee
in
the
amount
of
thirty-five
dollars
for
each
motor
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vehicle
service
contract
form
filed
with
the
commissioner
that
1
the
service
company
continues
to
use,
offer
for
sale,
or
issue
2
in
the
state.
3
d.
The
number
of
motor
vehicle
service
contracts
and
the
4
number
of
residential
service
contracts
issued
during
the
5
immediately
preceding
calendar
year
by
the
service
company
in
6
this
state.
7
e.
The
number
of
motor
vehicle
service
contracts
and
the
8
number
of
residential
service
contracts
canceled
during
the
9
immediately
preceding
calendar
year
by
the
service
company
in
10
this
state.
11
f.
The
total
dollar
amount
of
refunds
issued
to
service
12
contract
holders
by
the
service
company
during
the
immediately
13
preceding
calendar
year
for
canceled
motor
vehicle
service
14
contracts
in
this
state,
and
the
total
dollar
amount
of
refunds
15
issued
to
service
contract
holders
by
the
service
company
16
during
the
immediately
preceding
calendar
year
for
canceled
17
residential
service
contracts
in
this
state.
18
g.
The
total
dollar
amount
of
motor
vehicle
service
contract
19
fees,
and
the
total
dollar
amount
of
residential
service
20
contract
fees,
collected
during
the
immediately
preceding
21
calendar
year
by
the
service
company
for
contracts
sold
in
this
22
state.
23
h.
The
number
of
claims
filed
with
the
service
company
24
for
motor
vehicle
service
contracts
in
this
state
during
25
the
immediately
preceding
calendar
year,
and
the
number
of
26
claims
filed
with
the
service
company
for
residential
service
27
contracts
in
this
state
during
the
immediately
preceding
28
calendar
year.
29
i.
The
total
dollar
amount
of
claims
paid
by
the
service
30
company
for
motor
vehicle
service
contracts
sold
by
the
service
31
company
in
this
state
during
the
immediately
preceding
calendar
32
year,
and
the
total
dollar
amount
of
claims
paid
by
the
service
33
company
for
residential
service
contracts
sold
by
the
service
34
company
in
this
state
during
the
immediately
preceding
calendar
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year.
1
j.
The
total
number
of
claims
during
the
immediately
2
preceding
calendar
year
for
motor
vehicle
service
contracts
3
in
this
state
that
did
not
result
in
repair,
replacement,
4
payment,
or
other
thing
of
value
to
the
service
contract
5
holder
by
the
service
company,
and
the
total
number
of
claims
6
during
the
immediately
preceding
calendar
year
for
residential
7
service
contracts
in
this
state
that
did
not
result
in
repair,
8
replacement,
payment,
or
other
thing
of
value
to
the
service
9
contract
holder
by
the
service
company.
10
k.
The
total
number
of
written
complaints
regarding
motor
11
vehicle
service
contracts
received
by
the
service
company
12
during
the
immediately
preceding
calendar
year,
and
the
13
total
number
of
written
complaints
regarding
residential
14
service
contracts
received
by
the
service
company
during
the
15
immediately
preceding
calendar
year,
including
complaints
16
received
directly
from
a
consumer,
indirectly
on
behalf
of
a
17
consumer
from
a
third
party
other
than
a
regulatory
agency,
and
18
from
a
regulatory
agency.
19
l.
The
number
of
lawsuits
filed
by
a
third
party
or
a
20
regulatory
agency,
against
the
service
company
during
the
21
immediately
preceding
calendar
year
regarding
service
contracts
22
issued,
offered
for
sale,
or
sold
by
the
service
company.
23
4.
If
the
license
renewal
application
complies
with
this
24
section,
and
the
commissioner
has
not
refused
to
renew
the
25
license
pursuant
to
section
523C.9,
the
commissioner
shall
26
renew
the
license.
If
the
commissioner
refuses
renewal
of
a
27
license
pursuant
to
section
523C.9,
the
refusal
shall
be
in
28
writing
setting
forth
the
grounds
for
the
refusal.
29
5.
If
a
service
company
submits
a
license
renewal
30
application
after
the
license
has
expired,
the
service
company
31
shall
pay
a
reinstatement
fee
of
eight
hundred
dollars,
and
32
applicable
fees
pursuant
to
subsection
3.
33
6.
a.
A
service
company
whose
license
has
expired,
and
is
34
not
within
an
additional
thirty-day
extension
period
granted
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by
the
commissioner
pursuant
to
section
523C.4,
subsection
1,
1
shall
not
offer,
extend,
or
renew
a
service
contract
until
the
2
service
company’s
license
has
been
renewed,
or
the
service
3
company
has
been
issued
a
new
license.
4
b.
If,
at
the
time
a
service
contract
is
issued
or
sold
in
5
this
state,
the
service
company
has
an
expired
license
that
is
6
not
within
an
additional
thirty-day
extension
period
granted
7
by
the
commissioner
pursuant
to
section
523C.4,
subsection
1,
8
the
service
contract
may
be
canceled
at
the
discretion
of
the
9
service
contract
holder.
If
a
service
contract
holder
chooses
10
to
cancel
a
service
contract,
the
full
purchase
price
of
the
11
service
contract,
less
any
claims
paid,
shall
be
refunded
to
12
the
service
contract
holder
within
thirty
calendar
days.
A
ten
13
percent
penalty
shall
be
added
each
month
to
the
refund
if
the
14
refund
is
not
paid
to
the
service
contract
holder
within
the
15
thirty
calendar
days.
16
Sec.
23.
Section
523C.7,
Code
2025,
is
amended
by
striking
17
the
section
and
inserting
in
lieu
thereof
the
following:
18
523C.7
Disclosure
to
service
contract
holders
——
contract
19
form
——
required
provisions.
20
1.
A
service
contract
shall
not
be
issued,
sold,
or
offered
21
for
sale
in
this
state
unless
the
service
company
does
all
of
22
the
following:
23
a.
Provides
a
receipt
for
the
purchase
of
the
service
24
contract
to
the
service
contract
holder.
25
b.
Provides
a
complete
sample
copy
of
the
service
contract
26
to
the
consumer
prior
to
purchase.
A
service
company
may
27
comply
with
this
paragraph
by
providing
the
consumer
with
a
28
complete
electronic
sample
copy
of
the
service
contract,
or
29
directing
the
consumer
to
a
complete
sample
copy
of
the
service
30
contract
at
an
internet
site.
A
paper
copy
of
the
sample
31
service
contract
shall
be
provided
upon
the
request
of
the
32
consumer
at
the
expense
of
the
service
company.
33
c.
Provides
a
fully
executed
paper
or
electronic
copy
of
34
the
service
contract
to
the
service
contract
holder
within
ten
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calendar
days
of
the
date
the
service
contract
holder
purchased
1
the
service
contract.
A
paper
copy
of
the
executed
service
2
contract
shall
be
provided
to
the
service
contract
holder
upon
3
request
of
the
service
contract
holder
at
the
expense
of
the
4
service
company.
5
2.
A
service
contract
issued,
sold,
or
offered
for
sale
6
in
the
state
shall
comply
with
all
of
the
following,
as
7
applicable:
8
a.
A
service
contract
shall
be
written
in
clear,
9
understandable
language
in
at
least
ten
point
type.
10
b.
(1)
A
service
contract
insured
by
a
reimbursement
11
insurance
policy
as
provided
in
section
523C.5,
subsection
1,
12
shall
include
a
statement
in
substantially
the
following
form:
13
Obligations
of
the
service
company
under
this
service
contract
14
are
guaranteed
under
a
reimbursement
insurance
policy.
If
the
15
service
company
fails
to
pay
or
provide
service
on
a
claim
16
within
sixty
days
after
proof
of
loss
has
been
filed
with
17
the
service
company,
the
service
contract
holder
is
entitled
18
to
make
a
claim
directly
against
the
reimbursement
insurance
19
policy.
20
(2)
A
service
contract
insured
by
a
reimbursement
insurance
21
policy
shall
conspicuously
state
the
name
and
address
of
the
22
issuer
of
the
reimbursement
insurance
policy
for
that
service
23
contract.
A
claim
against
a
reimbursement
insurance
policy
24
shall
also
include
a
claim
for
return
of
any
refund
due
in
25
accordance
with
paragraphs
“m”
and
“n”
.
26
c.
A
service
contract
not
insured
under
a
reimbursement
27
insurance
policy
shall
contain
a
statement
in
substantially
the
28
following
form:
29
Obligations
of
the
service
company
under
this
service
contract
30
are
backed
by
the
full
faith
and
credit
of
the
service
company
31
and
are
not
guaranteed
under
a
reimbursement
insurance
policy.
32
d.
A
service
contract
shall
state
the
name
and
address
of
33
the
service
company
obligated
to
perform
services
under
the
34
contract,
and
shall
conspicuously
identify
the
service
company,
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any
third-party
administrator,
and
the
service
contract
holder
1
to
the
extent
that
the
name
and
address
of
the
service
contract
2
holder
has
been
furnished.
The
identities
of
such
parties
3
shall
not
be
required
to
be
printed
on
the
contract
in
advance
4
and
may
be
added
to
the
contract
at
the
time
of
sale.
5
e.
A
service
contract
shall
clearly
state
the
total
purchase
6
price
of
the
service
contract
and
the
terms
under
which
the
7
service
contract
is
sold.
The
total
purchase
price
shall
not
8
be
required
to
be
printed
on
the
contract
in
advance
and
may
be
9
added
to
the
contract
at
the
time
of
sale.
10
f.
If
prior
approval
of
repair
work
is
required,
a
service
11
contract
shall
conspicuously
describe
the
procedure
for
12
obtaining
prior
approval
and
for
making
a
claim,
including
a
13
toll-free
telephone
number
for
claim
service,
and
the
procedure
14
for
obtaining
emergency
repairs
performed
outside
of
normal
15
business
hours.
16
g.
A
service
contract
shall
clearly
state
any
waiting
period
17
applicable
to
coverage
under
the
service
contract,
and
the
date
18
on
which
coverage
begins.
19
h.
A
service
contract
shall
clearly
state
the
existence
of
20
any
deductible
amount.
21
i.
A
service
contract
shall
specify
the
merchandise
22
or
services,
or
both,
to
be
provided
and
any
limitations,
23
exceptions,
or
exclusions.
24
j.
A
service
contract
shall
clearly
state
the
conditions
on
25
which
the
use
of
substitute
parts
or
services
will
be
allowed.
26
Such
conditions
shall
comply
with
applicable
state
and
federal
27
laws.
28
k.
A
service
contract
shall
clearly
state
any
terms,
29
restrictions,
or
conditions
governing
the
transferability
of
30
the
service
contract.
31
l.
A
service
contract
shall
clearly
state
the
instructions
32
for
cancellation
of
the
service
contract
by
the
service
33
contract
holder.
Cancellation
instructions
shall
include
all
34
necessary
information
for
a
service
contract
holder
to
complete
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a
cancellation.
Cancellation
instructions
shall
include
the
1
phone
number,
email
address,
or
mailing
address
necessary
for
2
the
cancellation
of
the
service
contract,
as
well
as
any
other
3
information
that
the
service
contract
holder
must
use
to
cancel
4
the
contract.
A
service
company
shall
accept
cancellation
of
a
5
service
contract
from
a
service
contract
holder
by
telephone,
6
email,
or
mail,
or
any
other
cost-effective
and
accessible
7
method
of
communication.
The
method
of
cancellation
utilized
8
by
a
service
company
for
the
cancellation
of
a
service
contract
9
shall
be
as
accessible
as
the
method
utilized
by
the
service
10
company
for
the
service
contract
holder
to
enter
into
the
11
service
contract.
12
m.
A
service
contract
shall
clearly
state
the
terms
and
13
conditions
governing
the
cancellation
of
the
contract
prior
14
to
the
termination
or
expiration
date
of
the
contract
by
the
15
service
company
or
the
service
contract
holder.
If
the
service
16
company
cancels
the
contract,
the
service
company
shall
mail
a
17
written
notice
of
termination
to
the
service
contract
holder
at
18
least
fifteen
calendar
days
before
the
date
of
the
termination.
19
Prior
notice
of
cancellation
by
the
service
company
shall
not
20
be
required
if
the
reason
for
cancellation
is
nonpayment
of
the
21
purchase
price,
a
material
misrepresentation
by
the
service
22
contract
holder
to
the
service
company
or
the
support
services
23
for
the
service
company,
or
a
substantial
breach
of
duty
by
the
24
service
contract
holder
relating
to
the
covered
product
or
use
25
of
the
covered
product.
The
notice
of
cancellation
shall
state
26
the
effective
date
of
the
cancellation
and
the
reason
for
the
27
cancellation.
If
a
service
contract
is
canceled
by
the
service
28
company
for
any
reason
other
than
nonpayment
of
the
purchase
29
price,
the
service
company
shall
refund
the
service
contract
30
holder
in
an
amount
equal
to
one
hundred
percent
of
the
31
unearned
purchase
price
paid,
calculated
on
a
pro
rata
basis
32
based
upon
elapsed
time
or
mileage,
less
any
claims
paid.
The
33
service
company
may
also
charge
a
reasonable
administrative
fee
34
in
an
amount
no
greater
than
ten
percent
of
the
total
purchase
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price.
A
ten
percent
penalty
shall
be
added
each
month
to
the
1
refund
if
the
refund
is
not
paid
to
the
service
contract
holder
2
within
thirty
calendar
days.
3
n.
(1)
A
service
contract
shall
permit
the
original
4
service
contract
holder
who
purchased
the
contract
to
cancel
5
the
service
contract
within
at
least
thirty
calendar
days
of
6
the
effective
date
of
the
service
contract,
provided
no
claims
7
have
been
paid
under
the
service
contract,
or
within
a
longer
8
period
of
time
as
permitted
under
the
service
contract.
If
9
a
claim
has
not
been
paid
under
the
service
contract
prior
10
to
cancellation
by
the
service
contract
holder,
the
service
11
contract
is
void
and
the
full
purchase
price
of
the
service
12
contract
shall
be
refunded
to
the
service
contract
holder.
A
13
ten
percent
penalty
shall
be
added
each
month
to
a
refund
if
14
the
refund
is
not
paid
to
the
service
contract
holder
within
15
thirty
calendar
days,
unless
the
service
contract
holder
fails
16
to
provide
the
information
required
by
the
service
contract
to
17
complete
the
cancellation.
18
(2)
If
the
service
contract
holder
cancels
the
service
19
contract
in
violation
of
subparagraph
(1),
the
service
company
20
shall
refund
the
service
contract
holder
an
amount
equal
to
one
21
hundred
percent
of
the
unearned
purchase
price
paid,
calculated
22
on
a
pro
rata
basis
based
upon
elapsed
time
or
mileage,
23
less
any
claims
paid.
The
service
company
may
also
charge
a
24
reasonable
administrative
fee
in
an
amount
no
greater
than
ten
25
percent
of
the
total
purchase
price.
A
ten
percent
penalty
26
shall
be
added
each
month
to
a
refund
if
the
refund
is
not
paid
27
to
the
service
contract
holder
within
thirty
calendar
days
of
28
the
service
contract
cancellation
request,
unless
the
service
29
contract
holder
fails
to
provide
the
information
required
in
30
the
service
contract
to
complete
the
cancellation.
31
o.
A
service
contract
shall
set
forth
all
obligations
32
and
duties
of
the
service
contract
holder,
including
but
not
33
limited
to
the
duty
to
protect
against
any
further
damage,
and
34
the
obligation
to
follow
an
owner’s
manual
and
to
perform,
or
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have
performed,
all
required
service
or
maintenance.
1
p.
A
service
contract
shall
clearly
state
if
the
contract
2
covers
or
excludes
consequential
damages
and
preexisting
3
conditions,
if
applicable.
A
service
contract
may,
but
is
not
4
required
to,
cover
damage
resulting
from
rust,
corrosion,
or
5
damage
caused
by
a
part
or
system
not
covered
under
the
service
6
contract.
7
q.
A
service
contract
shall
clearly
state
the
service
call
8
fee,
if
any,
charged
to
the
service
contract
holder.
9
r.
A
service
contract
shall
state
the
name
and
address
of
10
the
commissioner,
the
current
toll-free
telephone
number
of
the
11
division,
and
a
statement
that
a
consumer
may
file
a
complaint
12
with
the
division,
including
by
filing
a
complaint
on
the
13
division’s
internet
site.
14
s.
If
a
residential
service
contract
relates
to
heating,
15
cooling,
plumbing,
or
electrical
service,
and
the
claim
being
16
made
by
the
service
contract
holder
is
essential
to
the
health
17
and
safety
of
the
service
contract
holder
or,
if
applicable,
18
the
service
contract
holder’s
family,
the
service
company
shall
19
ensure
all
of
the
following:
20
(1)
Repair
or
replacement
of
the
essential
good
commences
21
within
forty-eight
hours
after
the
report
of
the
claim,
and
is
22
completed
as
soon
as
reasonably
practicable.
23
(2)
If
the
service
company
determines
that
the
service
24
company
cannot
complete
a
repair,
replacement,
or
service
25
within
three
calendar
days
after
the
report
of
the
claim,
26
the
service
contract
holder
may
seek
an
outside
provider
to
27
complete
the
repair,
replacement,
or
service.
The
service
28
company
shall
cover
reasonable
costs
associated
with
a
repair,
29
replacement,
or
service
completed
by
an
outside
service
30
provider
up
to
the
maximum
dollar
amount
covered
by
the
service
31
contract.
32
(3)
Notice
is
provided
to
the
service
contract
holder
if
a
33
repair
cannot
practicably
be
completed
within
three
calendar
34
days
after
the
report
of
the
claim.
The
service
company
shall
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provide
a
status
report
to
the
service
contract
holder
by
1
communicating
in
a
verifiable
manner
as
soon
as
practicable,
2
but
no
later
than
three
calendar
days
after
the
date
of
the
3
report
of
the
claim.
The
status
report
must
include
all
of
the
4
following:
5
(a)
A
list
of
all
required
repairs,
replacements,
or
6
services
and
the
estimated
cost
to
the
service
contract
holder.
7
(b)
The
primary
reason
the
required
repair,
replacement,
or
8
service
will
take
longer
than
three
calendar
days,
including
9
the
status
of
all
parts
required
for
the
repair,
replacement,
10
or
service.
11
(c)
The
current
estimated
length
of
time
to
complete
the
12
repair,
replacement,
or
service.
13
(d)
The
telephone
number
of
the
service
company
in
the
14
event
the
service
contract
holder
or
the
commissioner
wants
15
to
make
an
inquiry
concerning
the
claim,
and
a
commitment
by
16
the
service
company
to
respond
to
an
inquiry
no
later
than
one
17
business
day
after
the
date
the
inquiry
is
received.
18
(e)
A
statement
that
if
the
service
contract
holder
is
not
19
satisfied
with
the
manner
in
which
the
service
company
handles
20
the
claim
under
the
terms
of
service
contract,
the
service
21
contract
holder
may
file
a
complaint
with
the
division
pursuant
22
to
paragraph
“r”
.
23
(f)
A
notice
to
the
service
contract
holder
that
the
24
service
contract
holder
may
seek
an
outside
service
provider
25
to
complete
the
repair,
replacement,
or
service,
and
that
the
26
service
company
will
cover
reasonable
costs
associated
with
a
27
repair,
replacement,
or
service
completed
by
an
outside
service
28
provider
up
to
the
maximum
dollar
amount
covered
by
the
service
29
contract.
30
Sec.
24.
NEW
SECTION
.
523C.8
Service
contract
forms
——
31
fees.
32
1.
A
service
company
shall
file
with
the
division
an
33
accurate
copy
of
each
service
contract
form
prior
to
using
the
34
service
contract
form
for
the
sale
of
a
service
contract
in
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this
state.
1
2.
At
the
time
of
filing
each
motor
vehicle
service
contract
2
form
with
the
division
a
service
company
shall
pay
a
fee
in
the
3
amount
of
thirty-five
dollars
for
each
motor
vehicle
service
4
contract
form.
5
3.
Notwithstanding
section
523C.7,
a
service
company
may
6
continue
to
use
a
service
contract
form
that
is
noncompliant
7
with
this
chapter
until
June
30,
2026,
provided
no
changes
are
8
made
to
the
service
contract
form
and
the
service
contract
form
9
was
filed
with
the
division
in
2024.
10
Sec.
25.
Section
523C.9,
Code
2025,
is
amended
by
striking
11
the
section
and
inserting
in
lieu
thereof
the
following:
12
523C.9
License
denial,
nonrenewal,
suspension,
or
revocation.
13
1.
The
commissioner
may
suspend
or
revoke
the
license
of,
14
deny
an
application
for
a
license
from,
or
refuse
to
renew
the
15
license
of,
a
service
company,
or
may
levy
a
civil
penalty
as
16
provided
in
section
523C.13
against
a
service
company,
for
any
17
of
the
following
reasons:
18
a.
The
service
company
violated
this
chapter,
a
lawful
19
order,
regulation,
or
subpoena.
20
b.
The
service
company
failed
to
pay
a
final
judgment
21
rendered
against
the
service
company
in
this
state
within
sixty
22
calendar
days
after
the
date
the
judgment
became
final.
23
c.
The
service
company,
without
just
cause,
refused
24
to
perform,
or
negligently
or
incompetently
performed,
a
25
service
required
to
be
performed
under
the
service
company’s
26
service
contracts
and
the
refusal,
or
negligent
or
incompetent
27
performance,
has
occurred
with
such
frequency
as
to
indicate
28
the
general
business
practices
of
the
service
company
are
29
negligent
or
incompetent,
as
determined
by
the
commissioner.
30
d.
The
service
company
violated
section
523C.13.
31
e.
The
service
company
failed
to
demonstrate
financial
32
responsibility
pursuant
to
section
523C.5,
if
applicable.
33
f.
The
service
company
failed
to
maintain
a
corporate
34
certificate
of
good
standing
with
the
secretary
of
state.
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g.
The
service
company
provided
incorrect,
misleading,
1
incomplete,
or
materially
untrue
information
in
the
service
2
company’s
license
application.
3
h.
The
service
company
obtained
or
attempted
to
obtain
a
4
license
through
misrepresentation
or
fraud.
5
i.
The
service
company
improperly
withheld,
misappropriated,
6
or
converted
any
money
or
property
received
in
the
course
of
7
business
as
a
service
company.
8
j.
The
service
company
intentionally
misrepresented
the
9
terms
of
an
actual
or
proposed
service
contract.
10
k.
Within
the
immediately
preceding
ten
years,
an
owner,
11
officer,
or
director
of
the
service
company
has
been
convicted
12
of
a
criminal
offense
involving
any
aspect
of
a
business
13
involving
securities,
commodities,
investments,
franchises,
14
insurance,
banking,
or
finance.
15
l.
An
owner,
officer,
or
director
of
the
service
company
16
has
been
convicted
of
a
criminal
offense
involving
dishonesty
17
or
a
false
statement,
including
but
not
limited
to
fraud,
18
theft,
misappropriation
of
funds,
falsification
of
documents,
19
deceptive
acts
or
practices,
or
other
related
offenses.
20
m.
The
service
company
admitted
to
committing,
or
was
found
21
to
have
committed,
any
unfair
trade
practice
or
fraud.
22
n.
The
service
company
used
fraudulent,
coercive,
23
or
dishonest
practices,
or
demonstrated
incompetence,
24
untrustworthiness,
or
financial
irresponsibility,
in
conducting
25
business
in
this
state
or
any
other
state.
26
o.
The
service
company
had
a
service
company
license
or
its
27
equivalent,
denied,
suspended,
or
revoked
in
any
other
state,
28
province,
district,
or
territory.
29
p.
The
service
company
failed,
or
refused,
to
cooperate
in
30
an
investigation
conducted
by
the
commissioner
of
insurance.
31
2.
If
the
commissioner
suspends
or
revokes
the
license
of,
32
denies
the
application
for
licensure
of,
or
refuses
to
renew
33
the
license
of,
a
service
company
pursuant
to
this
section,
the
34
commissioner
shall
notify
the
service
company,
in
writing,
and
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provide
the
reason
for
the
suspension,
revocation,
denial,
or
1
nonrenewal.
The
licensee
or
applicant
may
request
a
hearing
2
on
the
suspension,
revocation,
nonrenewal,
or
denial,
and
a
3
hearing
shall
be
conducted
according
to
section
507B.6.
4
Sec.
26.
Section
523C.12,
Code
2025,
is
amended
to
read
as
5
follows:
6
523C.12
Optional
examination
Examinations
.
7
The
commissioner
,
or
a
the
commissioner’s
designee
,
of
8
the
commissioner
may
make
an
examination
of
the
books
and
9
records
of
a
service
company,
including
records
involving
10
communications
with
service
contract
holders,
copies
of
11
contracts
and
records
of
claims
and
expenditures,
and
12
verify
its
records
related
to
the
service
company’s
assets,
13
liabilities,
and
reserves.
The
actual
costs
of
the
examination
14
shall
be
borne
by
the
service
company.
The
costs
of
an
15
examination
under
this
section
shall
not
exceed
an
amount
equal
16
to
ten
percent
of
the
service
company’s
reported
net
income
17
associated
with
doing
business
in
the
state
in
the
previous
18
immediately
preceding
fiscal
year.
19
Sec.
27.
Section
523C.13,
Code
2025,
is
amended
by
striking
20
the
section
and
inserting
in
lieu
thereof
the
following:
21
523C.13
Prohibited
acts
or
practices
——
penalty
——
violations
22
——
contracts
voided.
23
1.
A
service
company,
or
the
service
company’s
support
24
services,
that
offers
service
contracts
for
sale
in
this
state,
25
shall
not,
directly
or
indirectly,
represent
in
any
manner,
26
whether
by
written
solicitation
or
telemarketing,
a
false,
27
deceptive,
or
misleading
statement
with
respect
to
any
of
the
28
following:
29
a.
The
service
company’s
affiliation
with
a
motor
vehicle
30
manufacturer
or
importer.
31
b.
The
validity
or
expiration
of
a
warranty.
32
c.
A
motor
vehicle
service
contract
holder’s
coverage
33
under
a
motor
vehicle
service
contract,
including
statements
34
suggesting
that
the
service
contract
holder
must
purchase
a
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new
service
contract
in
order
to
maintain
coverage
under
the
1
existing
service
contract
or
warranty.
2
d.
Descriptions
of
the
service
contract
as
a
“policy”.
3
2.
A
licensed
service
company
which
offers
service
4
contracts
for
sale
in
this
state
shall
not,
directly
or
5
indirectly,
do
any
of
the
following:
6
a.
Fail
to
complete,
or
fail
to
ensure
the
completion
of,
a
7
repair,
maintenance,
replacement,
service,
or
indemnification
8
of
expenses
associated
with
a
covered
claim
within
a
reasonable
9
period
of
time.
10
b.
Create
or
use
any
advertising
that
does
not
include
the
11
name
of
the
licensed
service
company.
12
c.
Use
any
method
of
marketing
that
may
induce
the
purchase
13
of
a
service
contract
through
force,
fear,
or
threats,
whether
14
explicit
or
implied.
15
d.
Create
or
use
any
service
contract
marketing
materials
16
that
contain
incorrect
or
misleading
information.
17
e.
Use,
offer
for
sale,
or
issue
in
this
state
a
service
18
contract
form
that
has
not
been
submitted
as
part
of
a
license
19
application
pursuant
to
section
523C.3,
as
part
of
a
license
20
application
renewal
pursuant
to
section
523C.4,
or
submitted
21
to
the
division
during
the
service
company’s
current
license
22
period.
23
3.
The
commissioner
may
adopt
rules
pursuant
to
24
chapter
17A
that
regulate
service
contracts
to
prohibit
25
misrepresentation,
false
advertising,
defamation,
boycotts,
26
coercion,
intimidation,
false
statements
and
entries,
and
27
unfair
discrimination
or
practices.
If
the
commissioner
finds
28
that
a
person
has
violated
rules
adopted
under
this
section,
29
the
commissioner
may
order
any
or
all
of
the
following:
30
a.
Payment
of
a
civil
penalty
of
not
more
than
one
thousand
31
dollars
for
each
act
or
violation,
not
to
exceed
an
aggregate
32
of
ten
thousand
dollars,
unless
the
person
knew
or
reasonably
33
should
have
known
the
person
was
in
violation
of
this
section,
34
in
which
case
the
civil
penalty
shall
be
not
more
than
five
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thousand
dollars
for
each
act
or
violation,
not
to
exceed
an
1
aggregate
of
fifty
thousand
dollars
in
any
one
consecutive
2
six-month
period.
If
the
commissioner
finds
a
violation
of
3
this
section
was
directed,
encouraged,
condoned,
ignored,
4
or
ratified
by
the
employer
of
the
person
the
commissioner
5
may
assess
the
penalty
to
the
employer
and
not
the
person.
6
Any
civil
penalties
collected
under
this
subsection
shall
be
7
deposited
as
provided
in
section
505.7.
8
b.
Suspension
or
revocation
of
the
person’s
license,
if
the
9
person
knew
or
reasonably
should
have
known
the
person
was
in
10
violation
of
this
section.
11
4.
A
violation
of
this
chapter
shall
constitute
an
unlawful
12
practice
pursuant
to
section
714.16.
13
5.
A
person
shall
not
engage,
directly
or
indirectly,
in
any
14
unfair
method
of
competition,
or
an
unfair
or
deceptive
act
or
15
practice,
in
the
business
of
service
contracts.
Any
violation
16
of
this
chapter
constitutes
an
unfair
method
of
competition,
17
or
an
unfair
or
deceptive
act
or
practice.
If,
after
hearing,
18
the
commissioner
determines
that
a
person
has
engaged
in
an
19
unfair
method
of
competition
or
an
unfair
or
deceptive
act
or
20
practice,
the
provisions
of
sections
507B.6
through
507B.8
21
shall
apply.
22
Sec.
28.
Section
523C.22,
Code
2025,
is
amended
to
read
as
23
follows:
24
523C.22
Claim
procedures.
25
A
licensed
service
company
shall
promptly
provide
a
written
26
explanation
to
the
service
contract
holder,
describing
the
27
reasons
for
denying
a
claim
or
for
the
offer
of
a
compromise
28
settlement,
based
on
all
relevant
facts
or
legal
requirements
29
and
referring
to
applicable
provisions
of
the
service
contract.
30
The
written
explanation
shall
provide
instructions
to
the
31
service
contract
holder
on
the
process
for
an
appeal,
second
32
review,
arbitration,
or
similar
provisions
included
in
the
33
contract,
as
well
as
information
on
how
to
file
a
complaint
34
with
the
division,
including
the
internet
site
on
which
to
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locate
the
division’s
complaint
form.
1
Sec.
29.
Section
523C.23,
subsection
1,
paragraph
c,
Code
2
2025,
is
amended
by
striking
the
paragraph.
3
Sec.
30.
Section
523C.23,
subsection
2,
Code
2025,
is
4
amended
to
read
as
follows:
5
2.
Except
as
provided
in
section
523C.19
,
a
A
proceeding
6
instituted
under
this
chapter
shall
be
conducted
pursuant
to
7
chapter
17A
and
rules
adopted
by
the
commissioner
pursuant
to
8
chapter
17A
.
9
Sec.
31.
NEW
SECTION
.
523C.25
Confidentiality.
10
1.
Notwithstanding
chapter
22,
the
commissioner
shall
11
maintain
the
confidentiality
of
information
submitted
to
the
12
division
or
obtained
by
the
division
in
the
course
of
an
13
investigation,
examination,
or
inquiry
pursuant
to
this
chapter
14
or
the
commissioner’s
licensing
authority,
including
all
notes,
15
work
papers,
or
other
documents.
Information
obtained
by
16
the
commissioner
in
the
course
of
investigating
a
complaint
17
or
inquiry
may,
at
the
discretion
of
the
commissioner,
be
18
provided
to
the
service
company
that
is
the
subject
of
the
19
complaint
or
inquiry
and
the
consumer
who
filed
the
complaint
20
or
inquiry,
without
waiving
the
confidentiality
afforded
to
21
the
commissioner
or
to
any
other
person
by
this
section.
The
22
commissioner
may
disclose
or
release
information
that
is
23
otherwise
confidential
under
this
subsection
in
the
course
of
24
an
administrative
or
judicial
proceeding.
25
2.
Notwithstanding
subsection
1,
if
the
commissioner
26
determines
that
it
is
necessary
in
the
public
interest,
the
27
commissioner
may
share
information
with
other
regulatory
28
authorities
or
government
agencies,
or
may
publish
service
29
company-related
data
or
information
collected
under
this
30
chapter.
Such
information
may
be
redacted
so
that
neither
31
personally
identifiable
information
nor
service
company
32
identifiable
information
is
made
available.
33
Sec.
32.
Section
714.16,
subsection
2,
Code
2025,
is
amended
34
by
adding
the
following
new
paragraph:
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NEW
PARAGRAPH
.
r.
It
is
an
unlawful
practice
for
a
person
1
to
violate
chapter
523C.
2
Sec.
33.
REPEAL.
Section
523C.19,
Code
2025,
is
repealed.
3
DIVISION
VII
4
IOWA
INDIVIDUAL
HEALTH
BENEFIT
REINSURANCE
ASSOCIATION
——
5
MEMBERSHIP
6
Sec.
34.
Section
513C.10,
subsection
1,
paragraph
a,
Code
7
2025,
is
amended
to
read
as
follows:
8
a.
All
persons
that
provide
health
benefit
plans
in
this
9
state
including
insurers
providing
accident
and
sickness
10
insurance
under
chapter
509
,
514
,
or
514A
,
whether
on
an
11
individual
or
group
basis;
fraternal
benefit
societies
12
providing
hospital,
medical,
or
nursing
benefits
under
chapter
13
512B
;
and
health
maintenance
organizations,
other
entities
14
providing
health
insurance
or
health
benefits
subject
to
state
15
insurance
regulation,
and
all
other
insurers
as
designated
16
by
the
board
of
directors
of
the
Iowa
comprehensive
health
17
insurance
association
with
the
approval
of
the
commissioner
18
shall
be
members
of
the
association.
Notwithstanding
any
other
19
provision
of
this
chapter
to
the
contrary,
the
state
of
Iowa,
20
the
state
board
of
regents,
and
any
institution
governed
by
the
21
state
board
of
regents
pursuant
to
section
262.7,
shall
not
be
22
members
of
the
association.
23
DIVISION
VIII
24
IOWA
CEMETERY
ACT
——
EXAMINATIONS,
CARE
FUNDS,
AND
ANNUAL
25
REPORTS
26
Sec.
35.
Section
523I.213A,
subsection
1,
Code
2025,
is
27
amended
to
read
as
follows:
28
1.
The
commissioner
or
the
commissioner’s
designee
may
29
conduct
an
examination
under
this
chapter
of
any
cemetery
as
30
often
as
the
commissioner
deems
appropriate.
If
a
cemetery
31
has
a
trust
arrangement,
the
The
commissioner
shall
conduct
an
32
examination
of
every
cemetery
with
a
trust
arrangement
not
less
33
than
once
every
five
years
,
unless
the
cemetery
is
owned
or
34
operated
by
a
governmental
subdivision
.
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986
Sec.
36.
Section
523I.810,
Code
2025,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
10.
Notwithstanding
subsection
9,
a
3
cemetery
owned
or
operated
by
a
governmental
subdivision
shall
4
not
be
required
to
establish
a
reasonable
repayment
schedule,
5
provided
that
the
distribution
of
the
care
funds
are
used
in
6
compliance
with
section
523I.811.
7
Sec.
37.
Section
523I.813,
subsection
1,
Code
2025,
is
8
amended
to
read
as
follows:
9
1.
A
perpetual
care
cemetery
shall
file
an
annual
report
at
10
the
end
of
each
reporting
period
of
the
cemetery.
A
cemetery
11
owned
or
operated
by
a
governmental
subdivision
shall
not
be
12
required
to
file
an
annual
report.
13
DIVISION
IX
14
MOTOR
VEHICLE
FINANCIAL
LIABILITY
COVERAGE
15
Sec.
38.
Section
321.20,
subsection
1,
Code
2025,
is
amended
16
by
adding
the
following
new
paragraph:
17
NEW
PARAGRAPH
.
g.
If
the
vehicle
is
a
motor
vehicle,
the
18
owner
shall
certify
on
the
application
that
financial
liability
19
coverage
is
in
effect
for
the
motor
vehicle
pursuant
to
section
20
321.20B
and
provide
a
copy
of
the
proof
of
financial
liability
21
coverage
card
issued
for
the
motor
vehicle,
a
description
of
22
the
financial
liability
coverage
as
noted
on
the
proof
of
23
financial
liability
coverage
card,
or
other
documentation
24
acceptable
to
the
department.
This
paragraph
does
not
apply
25
to
a
motor
vehicle
excluded
from
the
requirements
of
section
26
321.20B.
27
Sec.
39.
Section
321.20B,
subsection
4,
paragraph
c,
Code
28
2025,
is
amended
by
striking
the
paragraph.
29
Sec.
40.
Section
321.20B,
subsection
5,
paragraph
b,
Code
30
2025,
is
amended
by
striking
the
paragraph
and
inserting
in
31
lieu
thereof
the
following:
32
b.
Issue
a
citation
to
the
driver.
33
Sec.
41.
Section
321.20B,
Code
2025,
is
amended
by
adding
34
the
following
new
subsections:
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NEW
SUBSECTION
.
5A.
An
owner
or
driver
cited
for
or
charged
1
with
a
violation
of
subsection
1
who
produces
to
the
clerk
of
2
court
prior
to
the
date
of
the
person’s
court
appearance
proof
3
that
financial
liability
coverage
was
in
effect
for
the
motor
4
vehicle
at
the
time
the
person
was
stopped,
or
if
the
driver
5
is
not
the
owner
of
the
motor
vehicle,
proof
that
financial
6
liability
coverage
was
in
effect
for
the
driver
with
respect
7
to
the
motor
vehicle
being
driven
at
the
time
the
driver
was
8
stopped
in
the
same
manner
as
if
the
motor
vehicle
were
owned
9
by
the
driver,
shall
be
given
a
receipt
indicating
that
proof
10
was
provided,
and
the
citation
or
charge
shall
be
dismissed
by
11
the
court.
Upon
dismissal,
the
court
or
clerk
of
court
shall
12
assess
the
costs
of
the
action
against
the
defendant.
13
NEW
SUBSECTION
.
5B.
A
person
convicted
of
a
violation
of
14
subsection
1
is
guilty
of
a
simple
misdemeanor
punishable
as
15
a
scheduled
violation
under
section
805.8A,
subsection
14,
16
paragraph
“f”
.
17
Sec.
42.
Section
321.30,
Code
2025,
is
amended
by
adding
the
18
following
new
subsection:
19
NEW
SUBSECTION
.
4.
The
department
or
the
county
treasurer
20
shall
refuse
registration
of
a
motor
vehicle
if
the
owner
21
does
not
provide
satisfactory
proof
that
financial
liability
22
coverage
is
in
effect
for
the
motor
vehicle
pursuant
to
section
23
321.20B.
This
subsection
does
not
apply
to
a
motor
vehicle
24
excluded
from
the
requirements
of
section
321.20B.
25
Sec.
43.
Section
321.40,
Code
2025,
is
amended
by
adding
the
26
following
new
subsection:
27
NEW
SUBSECTION
.
11.
A
form
for
certification
of
financial
28
liability
coverage
pursuant
to
section
321.20B
shall
accompany
29
each
renewal
statement
sent
to
the
owner
of
a
motor
vehicle
30
under
this
section.
The
county
treasurer
shall
refuse
to
renew
31
the
registration
of
a
motor
vehicle
if
the
applicant
does
not
32
submit
satisfactory
proof
of
financial
liability
coverage
in
33
effect
for
the
motor
vehicle
pursuant
to
section
321.20B.
This
34
subsection
does
not
apply
to
a
motor
vehicle
excluded
from
the
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requirements
of
section
321.20B.
1
Sec.
44.
Section
805.8A,
subsection
14,
paragraph
f,
Code
2
2025,
is
amended
to
read
as
follows:
3
f.
Proof
of
financial
responsibility.
If,
in
connection
with
4
a
motor
vehicle
accident,
a
person
is
charged
and
found
guilty
5
of
a
violation
of
section
321.20B,
subsection
1
,
the
scheduled
6
fine
is
six
hundred
forty-five
dollars;
otherwise,
the
7
scheduled
fine
for
a
violation
of
section
321.20B,
subsection
8
1
,
is
three
hundred
twenty-five
dollars.
9
(1)
The
scheduled
fine
for
a
violation
of
section
321.20B,
10
subsection
1,
is
as
follows:
11
(a)
If
the
violation
occurred
in
connection
12
with
a
motor
vehicle
accident
.
.
.
.
.
.
.
.
.
.
.
.
$645.
13
(b)
If
the
violation
did
not
occur
in
connection
14
with
a
motor
vehicle
accident
.
.
.
.
.
.
.
.
.
.
.
.
$325.
15
(c)
For
a
second
violation
within
five
years,
the
scheduled
16
fine
under
subparagraph
division
(a)
or
(b),
as
applicable,
17
shall
be
doubled.
18
(d)
For
a
third
or
subsequent
violation
within
five
years,
19
the
scheduled
fine
under
subparagraph
division
(a)
or
(b),
as
20
applicable,
shall
be
tripled.
21
(2)
Notwithstanding
section
805.12
,
fines
collected
22
pursuant
to
this
paragraph
shall
be
submitted
to
the
state
23
court
administrator
and
distributed
fifty
percent
to
the
victim
24
compensation
fund
established
in
section
915.94
,
twenty-five
25
percent
to
the
county
in
which
such
fine
is
imposed,
and
26
twenty-five
percent
to
the
general
fund
of
the
state.
27
Sec.
45.
EFFECTIVE
DATE.
The
following
take
effect
December
28
1,
2028:
29
1.
The
section
of
this
division
of
this
Act
enacting
section
30
321.20,
subsection
1,
paragraph
“g”.
31
2.
The
section
of
this
division
of
this
Act
enacting
section
32
321.30,
subsection
4.
33
3.
The
section
of
this
division
of
this
Act
enacting
section
34
321.40,
subsection
11.
35
-35-
HF
986
(3)
91
nls/ko/md
35/
35