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2454
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
SSB
3094)
(COMPANION
TO
HF
2232
BY
COMMITTEE
ON
COMMERCE)
A
BILL
FOR
An
Act
relating
to
life
insurance,
permissible
third
parties,
1
and
financial
exploitation
of
eligible
adults.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
502.806,
subsection
3,
paragraph
b,
Code
1
2026,
is
amended
to
read
as
follows:
2
b.
Fifteen
business
days
after
the
date
on
which
the
3
broker-dealer
or
investment
adviser
first
delayed
disbursement
4
of
the
funds
or
transaction,
unless
the
administrator
requests
5
the
broker-dealer
or
investment
adviser
to
extend
the
delay,
6
in
which
case
the
delay
shall
expire
no
more
than
twenty-five
7
business
days
after
the
date
on
which
the
broker-dealer
or
8
investment
adviser
first
delayed
the
disbursement
of
the
funds
9
or
the
transaction
extended
pursuant
to
paragraph
“c”
.
10
Sec.
2.
Section
502.806,
subsection
3,
Code
2026,
is
amended
11
by
adding
the
following
new
paragraphs:
12
NEW
PARAGRAPH
.
c.
If
the
internal
review
under
subsection
13
2,
paragraph
“d”
,
continues
to
support
the
broker-dealer,
14
investment
adviser,
or
qualified
individual’s
reasonable
belief
15
that
the
disbursement
or
transaction
will
likely
result
in
16
or
contribute
to
the
financial
exploitation
of
an
eligible
17
adult,
the
broker-dealer
or
investment
adviser
may
extend
the
18
delay
beyond
the
initial
delay
under
paragraph
“b”
for
no
more
19
than
twenty-five
business
days
after
the
date
on
which
the
20
broker-dealer
or
investment
adviser
first
delayed
disbursement
21
of
the
funds
or
transaction,
unless
extended
pursuant
to
22
paragraph
“d”
.
23
NEW
PARAGRAPH
.
d.
If
the
internal
review
under
subsection
24
2,
paragraph
“d”
,
continues
to
support
the
broker-dealer,
25
investment
adviser,
or
qualified
individual’s
reasonable
belief
26
that
the
disbursement
or
transaction
will
likely
result
in
or
27
contribute
to
the
financial
exploitation
of
an
eligible
adult,
28
the
broker-dealer
or
investment
adviser
may
extend
the
delay
29
beyond
the
delay
under
paragraph
“c”
for
no
more
than
fifty-five
30
business
days
after
the
date
on
which
the
broker-dealer
or
31
investment
adviser
first
delayed
disbursement
of
the
funds
or
32
transaction.
33
Sec.
3.
Section
507E.8,
subsection
1,
paragraphs
a
and
b,
34
Code
2026,
are
amended
to
read
as
follows:
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a.
For
purposes
of
an
arrest
resulting
from
a
criminal
1
violation
of
any
provision
of
the
Code
subject
to
the
2
jurisdiction
of
the
commissioner
established
as
a
result
of
an
3
investigation
pursuant
to
this
chapter
or
chapter
502
,
502A
,
4
507A
,
508,
523A
,
523C
,
523D
,
or
523I
.
5
b.
While
conducting
an
investigation
or
engaged
in
an
6
assignment
authorized
by
this
chapter
or
chapter
502
,
502A
,
7
507A
,
508,
523A
,
523C
,
523D
,
or
523I
.
8
Sec.
4.
NEW
SECTION
.
508.101
Definitions.
9
As
used
in
this
chapter,
unless
the
context
otherwise
10
requires:
11
1.
“Disbursement”
means
an
attempt
to
withdraw
money
or
12
access
a
benefit
from
a
life
insurance
policy,
an
annuity,
or
13
any
other
policy,
contract,
or
account,
irrespective
of
whether
14
the
request
is
classified
as
a
surrender,
loan,
withdrawal,
15
partial
withdrawal,
accelerated
benefit,
or
otherwise.
16
2.
“Eligible
adult”
means
the
same
as
defined
in
section
17
502.801.
18
3.
“Financial
exploitation”
means
the
same
as
defined
in
19
section
502.801.
20
4.
“Permissible
third
party”
means
any
of
the
following:
21
a.
An
individual
the
eligible
adult
previously
designated
22
who
may
be
contacted
about
the
eligible
adult’s
policy,
23
contract,
or
account.
24
b.
A
person
otherwise
permitted
pursuant
to
any
state
or
25
federal
law
or
rule
to
receive
the
notification
described
in
26
section
508.103.
27
5.
“Qualified
individual”
means
any
of
the
following:
28
a.
An
insurance
producer
who
has
completed
at
least
two
29
hours
of
continuing
education
focused
on
how
to
identify
30
suspected
or
attempted
exploitation
of
an
eligible
adult,
31
including
common
signs
indicating
the
financial
exploitation
of
32
an
eligible
adult,
and
how
to
provide
notification
regarding
33
the
suspected
or
attempted
exploitation
of
an
eligible
adult.
34
b.
An
individual
who
has
completed
training
pursuant
to
35
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section
508.105.
1
Sec.
5.
NEW
SECTION
.
508.102
Notification
to
commissioner.
2
1.
If
an
insurer
or
qualified
individual
reasonably
3
believes
financial
exploitation
of
an
eligible
adult
has
4
occurred,
was
attempted,
or
is
being
attempted,
the
insurer
5
or
qualified
individual
may
notify
the
commissioner
when
the
6
insurer
or
qualified
individual
makes
a
determination
that
7
financial
exploitation
may
have
occurred,
been
attempted,
or
8
is
being
attempted.
9
2.
An
insurer
or
qualified
individual
who,
acting
10
reasonably
and
in
good
faith,
makes
a
disclosure
of
information
11
to
the
commissioner
pursuant
to
this
chapter
or
under
chapter
12
507E
shall
be
immune
from
administrative
or
civil
liability
13
that
might
otherwise
arise
from
such
disclosure
or
from
a
14
failure
to
notify
the
eligible
adult
of
the
disclosure.
This
15
section
shall
not
abrogate
or
modify
any
existing
statutory
or
16
common
law
privileges
or
immunities.
17
Sec.
6.
NEW
SECTION
.
508.103
Notification
to
permissible
18
third
party.
19
1.
If
an
insurer
or
qualified
individual
reasonably
20
believes
financial
exploitation
of
an
eligible
adult
has
21
occurred,
was
attempted,
or
is
being
attempted,
the
insurer
22
or
qualified
individual
may
notify
a
permissible
third
party.
23
Notification
to
a
permissible
third
party
is
not
required
prior
24
to
the
insurer’s,
qualified
individual’s,
commissioner’s,
or
25
other
relevant
agency’s
review
or
investigation
into
financial
26
exploitation.
27
2.
An
insurer
or
qualified
individual
shall
not
notify
a
28
permissible
third
party
if
the
insurer
or
qualified
individual
29
reasonably
suspects
such
permissible
third
party
of
financial
30
exploitation
or
other
abuse
of
the
eligible
adult.
31
3.
An
eligible
adult
may
voluntarily
provide
to
an
insurer
32
contact
information
for
the
eligible
adult’s
permissible
third
33
parties.
An
insurer
or
qualified
individual
shall
not
be
held
34
administratively
or
civilly
liable
for
failing
to
request
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the
contact
information
for
the
eligible
adult’s
permissible
1
third
parties.
An
insurer
or
qualified
individual
who,
acting
2
reasonably
and
in
good
faith,
complies
with
this
section
shall
3
be
immune
from
administrative
or
civil
liability
that
may
4
arise
from
disclosing
the
eligible
adult’s
information
to
a
5
permissible
third
party.
6
Sec.
7.
NEW
SECTION
.
508.104
Disbursements
or
transactions
7
——
delay.
8
1.
If
an
insurer
or
qualified
individual
reasonably
9
believes
a
disbursement
or
transaction
is
likely
to
result
in,
10
or
contribute
to,
the
financial
exploitation
of
an
eligible
11
adult,
the
insurer
or
qualified
individual
may
initiate
an
12
internal
review
of
the
requested
disbursement
or
transaction.
13
2.
An
insurer
may
delay
a
disbursement
or
transaction
14
from
an
eligible
adult’s
policy,
contract,
or
account,
or
a
15
policy,
contract,
or
account
on
which
an
eligible
adult
is
a
16
beneficiary,
if
all
of
the
following
apply:
17
a.
The
insurer
or
qualified
individual
reasonably
believes,
18
after
initiating
an
internal
review
under
subsection
1,
that
19
the
requested
disbursement
or
transaction
will
likely
result
20
in
or
contribute
to
the
financial
exploitation
of
the
eligible
21
adult.
22
b.
Immediately,
but
in
no
event
more
than
seven
business
23
days
after
the
disbursement
or
transaction
is
delayed,
the
24
insurer
provides
written
notification
of
the
delay
and
the
25
reason
for
the
delay
to
all
persons
authorized
to
transact
26
business
on
the
policy,
contract,
or
account.
An
insurer
or
27
qualified
individual
shall
not
notify
a
person
authorized
to
28
transact
business
on
the
policy,
contract,
or
account
if
the
29
insurer
or
qualified
individual
reasonably
believes
the
person
30
has
committed
financial
exploitation,
attempted
financial
31
exploitation,
committed
or
attempted
insurance
fraud,
or
32
committed
or
attempted
other
abuse
of
the
eligible
adult.
33
c.
Within
seven
business
days
after
the
disbursement
or
34
transaction
is
delayed,
the
insurer
notifies
the
commissioner
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of
the
delay
and
provides
to
the
commissioner
the
reason
1
for
the
delay,
including
the
status
of
the
internal
review
2
initiated
under
subsection
1.
3
d.
The
insurer
continues
the
internal
review
of
the
4
suspected
or
attempted
financial
exploitation
of
the
eligible
5
adult,
as
necessary,
and
provides
the
commissioner
with
updates
6
upon
request.
7
3.
Any
delay
of
a
disbursement
or
transaction
authorized
by
8
this
section
will
expire
upon
the
first
to
occur
of
any
of
the
9
following:
10
a.
A
final
determination
by
the
insurer
that
the
11
disbursement
or
transaction
will
not
result
in
or
contribute
to
12
financial
exploitation
of
the
eligible
adult.
13
b.
Fifteen
business
days
after
the
date
on
which
the
insurer
14
first
delayed
disbursement
of
the
funds
or
the
transaction,
15
unless
extended
pursuant
to
paragraph
“c”
.
16
c.
Provided
the
internal
review
under
subsection
2,
17
paragraph
“d”
,
continues
to
support
the
insurer
or
qualified
18
individual’s
reasonable
belief
that
the
disbursement
or
19
transaction
will
likely
result
in
or
contribute
to
the
20
financial
exploitation
of
an
eligible
adult,
the
insurer
may
21
extend
the
delay
beyond
the
initial
delay
under
paragraph
“b”
22
for
no
more
than
twenty-five
business
days
after
the
date
on
23
which
the
insurer
first
delayed
disbursement
of
the
funds
or
24
the
transaction,
unless
extended
pursuant
to
paragraph
“d”
.
25
d.
Provided
the
internal
review
under
subsection
2,
26
paragraph
“d”
,
continues
to
support
the
insurer
or
qualified
27
individual’s
reasonable
belief
that
the
disbursement
or
28
transaction
will
likely
result
in
or
contribute
to
the
29
financial
exploitation
of
an
eligible
adult,
the
insurer
may
30
extend
the
delay
beyond
the
delay
under
paragraph
“c”
for
no
31
more
than
fifty-five
business
days
after
the
date
on
which
the
32
insurer
first
delayed
disbursement
of
the
funds
or
transaction.
33
4.
Notwithstanding
subsection
3,
upon
petition
of
the
34
commissioner,
the
insurer
who
initiated
a
delay
pursuant
to
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this
section,
or
another
interested
party,
a
court
of
competent
1
jurisdiction
may
enter
an
order
terminating,
extending,
or
2
modifying
the
delay
of
the
disbursement
or
transaction
and
may
3
order
any
other
protective
relief
deemed
necessary.
4
5.
The
commissioner
may
adopt
rules
pursuant
to
chapter
5
17A
regarding
the
form
and
manner
of
notifications
under
this
6
section.
7
6.
An
insurer
or
qualified
individual
who,
acting
8
reasonably
and
in
good
faith,
complies
with
the
requirements
9
of
this
section
or
chapter
507E
shall
be
immune
from
10
administrative
or
civil
liability
that
may
arise
from
a
delay
11
in
a
disbursement
or
transaction
initiated
pursuant
to
this
12
section.
13
Sec.
8.
NEW
SECTION
.
508.105
Training
requirements.
14
1.
An
insurer
shall
provide
training
to
supervisors
and
15
employees
employed
by
the
insurer
who
handle
or
advise
on
16
complaints,
possible
fraud,
and
investigations
no
later
than
17
June
30,
2027.
The
training
shall
include
instruction
on
all
18
of
the
following:
19
a.
Identifying
suspected
or
attempted
exploitation
20
of
an
eligible
adult,
including
common
signs
indicating
21
financial
exploitation
of
an
eligible
adult
and
how
to
provide
22
notification
regarding
the
suspected
or
attempted
exploitation
23
of
an
eligible
adult.
24
b.
Privacy
and
confidentiality
requirements.
25
2.
An
insurer
shall
provide
the
training
required
under
26
subsection
1
as
soon
as
reasonably
practicable
after
the
date
27
a
supervisor
or
employee
begins
employment
with
or
becomes
28
affiliated
or
associated
with
the
insurer,
but
no
later
than
29
one
year
after
that
date.
30
3.
An
insurer
shall
not
be
required
to
provide
training
31
under
this
section
to
a
qualified
individual
employed
by
the
32
insurer.
33
4.
The
commissioner
may
adopt
rules
pursuant
to
chapter
17A
34
specifying
the
content
and
method
of
training
required
under
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this
section.
1
Sec.
9.
NEW
SECTION
.
508.106
Records.
2
An
insurer
shall
provide
access
to
or
copies
of
records
3
that
are
relevant
to
the
suspected
or
attempted
financial
4
exploitation
of
an
eligible
adult
to
the
commissioner
and
5
to
law
enforcement,
either
as
part
of
a
referral
to
the
6
commissioner
or
law
enforcement,
or
upon
the
request
of
the
7
commissioner
or
law
enforcement
pursuant
to
an
investigation.
8
The
records
may
include
historical
records
as
well
as
records
9
relating
to
the
most
recent
transactions
and
disbursement
10
requests
from
the
policies,
contracts,
or
accounts
that
may
11
indicate
financial
exploitation
of
an
eligible
adult.
All
12
records
made
available
to
the
commissioner
or
law
enforcement
13
pursuant
to
this
section
shall
be
considered
confidential
14
public
records
under
chapter
22
and
shall
not
be
available
15
for
examination
by
the
public
pursuant
to
section
22.2.
This
16
section
shall
not
be
construed
to
limit
or
otherwise
impede
the
17
authority
of
the
commissioner
to
access
or
examine
the
books
18
and
records
of
insurers
as
otherwise
provided
by
law.
19
Sec.
10.
CODE
EDITOR
DIRECTIVE.
The
Code
editor
is
directed
20
to
designate
sections
508.1
through
508.39,
as
amended
by
21
this
Act,
as
subchapter
I
of
chapter
508
entitled
“General
22
Provisions”,
and
to
designate
sections
508.101
through
508.106,
23
as
enacted
by
this
Act,
as
subchapter
II
of
chapter
508
24
entitled
“Financial
Exploitation
of
Eligible
Adults”.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
relates
to
life
insurance,
permissible
third
29
parties,
and
financial
exploitation
of
eligible
adults.
30
Under
current
law,
a
delay
of
a
disbursement
or
transaction
31
involving
the
money,
assets,
or
property
of
an
eligible
adult
32
will
expire
upon
the
first
to
occur
of:
(1)
a
determination
by
33
the
broker-dealer
or
investment
adviser
that
the
disbursement
34
or
transaction
will
not
result
in
or
contribute
to
financial
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exploitation
of
the
eligible
adult,
or
(2)
15
days
after
the
1
first
delay,
unless
extended,
in
which
case
the
delay
shall
2
expire
no
more
than
25
days
after
the
date
the
disbursement
or
3
transaction
was
first
delayed.
Under
the
bill,
any
delay
of
a
4
disbursement
or
transaction
will
expire
upon
the
first
to
occur
5
of:
(1)
a
determination
by
the
broker-dealer
or
investment
6
adviser
that
the
disbursement
or
transaction
will
not
result
in
7
or
contribute
to
financial
exploitation,
or
(2)
15
days
after
8
the
date
the
broker-dealer
or
investment
adviser
first
delayed
9
the
disbursement
or
transaction,
unless
extended,
(3)
if
the
10
15-day
delay
is
extended,
25
days
after
the
date
of
the
initial
11
delay,
or
(4)
if
the
25-day
delay
is
extended,
55
days
after
12
the
date
of
the
initial
delay.
“Eligible
adult”
and
“qualified
13
individual”
are
defined
by
the
bill.
14
Under
the
bill,
if
an
insurer
or
qualified
individual
15
reasonably
believes
financial
exploitation
of
an
eligible
16
adult
has
occurred,
was
attempted,
or
is
being
attempted,
the
17
insurer
or
qualified
individual
may
notify
the
commissioner
of
18
insurance
(commissioner)
when
it
is
determined
that
financial
19
exploitation
may
have
occurred,
been
attempted,
or
is
being
20
attempted.
An
insurer
or
qualified
individual
who
makes
a
21
disclosure
of
information
to
the
commissioner
under
the
bill
22
or
under
Code
chapter
507E
shall
be
immune
from
administrative
23
or
civil
liability
for
failure
to
notify
the
eligible
adult
of
24
the
disclosure.
25
If
an
insurer
or
qualified
individual
reasonably
believes
26
financial
exploitation
of
an
eligible
adult
has
occurred,
was
27
attempted,
or
is
being
attempted,
the
insurer
or
qualified
28
individual
may
notify
a
permissible
third
party
designated
29
by
the
eligible
adult,
but
is
not
required
to,
prior
to
a
30
review
or
investigation
into
the
financial
exploitation.
An
31
insurer
or
qualified
individual
shall
not
notify
a
permissible
32
third
party
that
they
are
suspected
of
financial
exploitation
33
or
other
abuse
of
the
eligible
adult.
An
eligible
adult
34
may
voluntarily
provide
contact
information
for
permissible
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third
parties
to
an
insurer,
but
an
insurer
or
qualified
1
individual
shall
not
be
held
liable
for
failing
to
request
such
2
information.
3
An
insurer
or
qualified
individual
who,
acting
reasonably
4
and
in
good
faith,
complies
with
the
bill
shall
be
immune
5
from
administrative
or
civil
liability
that
may
arise
from
6
disclosing
the
eligible
adult’s
information
to
a
permissible
7
third
party.
8
If
an
insurer
or
qualified
individual
reasonably
believes
9
a
disbursement
or
transaction
is
likely
to
result
in,
or
10
contribute
to,
the
financial
exploitation
of
an
eligible
11
adult,
they
may
initiate
an
internal
review
of
the
requested
12
disbursement
or
transaction.
The
insurer
may
delay
a
13
disbursement
or
transaction
from
an
eligible
adult’s
policy,
14
contract,
or
account,
or
a
policy,
contract,
or
account
on
15
which
an
eligible
adult
is
a
beneficiary,
if
the
insurer
or
16
qualified
individual
reasonably
believes
the
disbursement
17
or
transaction
will
likely
result
in
or
contribute
to
the
18
financial
exploitation
of
an
eligible
adult;
the
insurer
19
provides
written
notification
of
the
delay
and
the
reason
for
20
the
delay
to
all
persons
authorized
to
transact
business
on
21
the
policy,
contract,
or
account,
except
if
such
person
is
22
reasonably
believed
to
have
committed
or
attempted
financial
23
exploitation,
insurance
fraud,
or
other
abuse
of
the
eligible
24
adult;
the
insurer
notifies
the
commissioner
of
the
delay
25
and
provides
the
reason
for
the
delay;
and
the
insurer
26
continues
the
internal
review
of
the
suspected
or
attempted
27
financial
exploitation
of
the
eligible
adult
and
provides
the
28
commissioner
with
updates
upon
request.
29
Delay
of
a
disbursement
or
transaction
will
expire
upon
30
the
first
to
occur
of
a
final
determination
by
the
insurer
31
that
the
disbursement
or
transaction
will
not
result
in
or
32
contribute
to
financial
exploitation,
15
days
after
the
date
on
33
which
the
insurer
first
delayed
disbursement
of
the
funds
or
34
the
transaction,
unless
extended,
25
business
days
after
the
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date
on
which
the
insurer
first
delayed
disbursement,
unless
1
extended,
or
55
days
after
the
date
on
which
the
insurer
first
2
delayed
disbursement.
Upon
petition
of
the
commissioner,
the
3
insurer,
or
another
interested
party,
a
court
of
competent
4
jurisdiction
may
enter
an
order
terminating,
extending,
or
5
modifying
the
delay
of
the
disbursement
or
transaction
and
may
6
order
any
other
protective
relief
necessary.
7
The
commissioner
may
adopt
rules
regarding
the
form
8
and
manner
of
notifications
under
the
bill.
An
insurer
or
9
qualified
individual
who
complies
with
the
requirements
of
the
10
bill
shall
be
immune
from
any
liability
that
may
arise
from
11
such
delay
in
a
disbursement
or
transaction.
12
An
insurer
shall
provide
training
to
supervisors
and
13
employees
employed
by
the
insurer,
except
employees
who
are
14
qualified
individuals,
who
handle
or
advise
on
complaints,
15
possible
fraud,
and
investigations
no
later
than
June
30,
16
2027.
The
training
shall
include
the
requirements
detailed
in
17
the
bill.
An
insurer
shall
provide
the
required
training
as
18
soon
as
reasonably
practicable,
but
at
least
within
one
year
19
after
the
date
a
supervisor
or
employee
begins
employment
with
20
or
becomes
affiliated
or
associated
with
the
insurer.
The
21
commissioner
may
adopt
rules
specifying
the
content
and
method
22
of
training.
23
An
insurer
shall
provide
access
to
or
copies
of
records
24
that
are
relevant
to
financial
exploitation
of
an
eligible
25
adult
to
the
commissioner
and
to
law
enforcement,
either
as
26
part
of
a
referral
or
upon
the
request
of
the
commissioner
or
27
law
enforcement
pursuant
to
an
investigation.
The
records
may
28
include
historical
records
as
well
as
records
relating
to
the
29
most
recent
financial
exploitation
of
an
eligible
adult.
All
30
records
made
available
to
the
commissioner
or
law
enforcement
31
shall
be
considered
confidential
public
records
and
shall
not
32
be
available
for
examination
by
the
public.
33
The
bill
makes
conforming
changes
to
Code
section
34
507E.8(1)(a)
and
(b)
(law
enforcement
authority).
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