Iowa Senate Bill SF2153

Iowa 2023-2024 Regular Session

• Introduced: 1/30/24

Caption

A bill for an act relating to the insurance commissioner's authority concerning insurance producers, business entity producers, and preneed sellers.(Formerly SSB 3081.)

Impact

This legislation modifies several key areas of existing insurance law, particularly relating to the confidentiality of information collected during investigations and regulatory activities concerning insurance entities. Notably, it specifies that the insurance commissioner can assess penalties against employers for violations committed by employees, thereby holding business entities accountable for any infractions that their staff may commit. By clearly defining the parameters of confidentiality, the bill seeks to protect sensitive information from public disclosure and subpoena.

Summary

Senate File 2153, also known as SF2153, seeks to expand the insurance commissioner's authority in Iowa regarding matters related to insurance producers, business entity producers, and preneed sellers. The bill aims to enhance regulatory oversight and compliance by amending existing laws to include provisions about confidentiality of certain records and to introduce civil penalties for violations. The goal is to ensure that information managed by the insurance division remains confidential and aligns with similar protections provided by other governmental entities.

Contention

While the primary focus of SF2153 appears to be on increasing compliance within the insurance sector, it may raise some concerns regarding the balance between regulation and the transparency expected in business practices. Stakeholders, particularly those in the insurance industry, might express differing opinions on whether the proposed penalties are adequate or excessively punitive. Additionally, there could be debates on how this bill might affect the accessibility of insurance information for consumers and whether it might inadvertently shield unethical practices in the industry.