| 1 | 1 | | House File 1012 - Introduced HOUSE FILE 1012 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 982) (SUCCESSOR TO HF 957) (SUCCESSOR TO HSB 246) A BILL FOR An Act relating to the natural hazard mitigation financing 1 program, the disaster recovery housing assistance program, 2 the disaster recovery new housing program, post-loss 3 assignment of benefits, the licensing and regulation 4 of adjusters, appraisers, and umpires, and the Iowa 5 economic emergency fund, and providing penalties, making 6 appropriations, and including effective date and retroactive 7 applicability provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 TLSB 1094HW (1) 91 nls/ko |
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| 3 | 3 | | H.F. 1012 DIVISION I 1 NATURAL HAZARD MITIGATION FINANCING PROGRAM 2 Section 1. NEW SECTION . 16.230 Definitions. 3 1. Department means the department of homeland security 4 and emergency management. 5 2. Fund means the natural hazard mitigation revolving loan 6 fund created in section 29D.4. 7 3. Loan recipient means the same as defined in section 8 29D.2. 9 4. Program means the natural hazard mitigation financing 10 program created in section 29D.3. 11 5. Project means the same as defined in section 29D.2. 12 Sec. 2. NEW SECTION . 16.231 Funds and accounts program 13 funds and accounts not part of state general fund. 14 1. The department, in consultation with the authority, 15 may establish and maintain funds or accounts determined to 16 be necessary to carry out the purposes of chapter 29D and 17 shall provide for the funding, administration, investment, 18 restrictions, and disposition of the funds and accounts. 19 Any moneys appropriated to the department and the authority 20 for purposes of paying the costs and expenses associated 21 with the administration of the program shall be administered 22 as determined by the department in consultation with the 23 authority. 24 2. The funds or accounts held by the department or the 25 authority, or a trustee acting on behalf of the department or 26 the authority pursuant to a trust agreement related to the 27 program, shall not be considered part of the general fund of 28 the state, are not subject to appropriation for any other 29 purpose by the general assembly, and in determining a general 30 fund balance shall not be included in the general fund of the 31 state, but shall remain in the funds and accounts maintained 32 by the department or the authority, or a trustee pursuant to a 33 trust agreement. Funds and accounts held by the department or 34 the authority, or a trustee acting on behalf of the department 35 -1- LSB 1094HW (1) 91 nls/ko 1/ 103 |
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| 5 | 5 | | H.F. 1012 or the authority pursuant to a trust agreement related to the 1 program, are separate dedicated funds and accounts under the 2 administration and control of the department in consultation 3 with the authority. 4 Sec. 3. NEW SECTION . 16.232 Program funding bonds and 5 notes. 6 1. The authority shall cooperate with the department in the 7 creation, administration, and financing of the program. 8 2. The authority may issue bonds and notes for the purpose 9 of funding the fund and the state matching funds required 10 pursuant to the federal Robert T. Stafford Disaster Relief 11 and Emergency Assistance Act, Pub. L. No. 93-288, as amended, 12 42 U.S.C. 5121 et seq. The authority may enter into one or 13 more loan agreements or purchase agreements with one or more 14 bondholders or noteholders containing the terms and conditions 15 of the repayment of, and the security for, each bond or note. 16 The authority and each bondholder or noteholder, or a trustee 17 agent designated by the authority, may enter into an agreement 18 to provide for any of the following: 19 a. That the proceeds of the bond or note and the investments 20 of the proceeds may be received, held, and disbursed by the 21 authority or by a trustee or agent designated by the authority. 22 b. That the bondholder or noteholder, or a trustee or 23 agent designated by the authority, may collect, invest, and 24 apply the amount payable under the loan agreement or any other 25 instruments securing the debt obligations under the loan 26 agreement. 27 c. That the bondholder or noteholder may enforce the 28 remedies provided in the loan agreement or other instruments on 29 the bondholders or noteholders behalf without the appointment 30 or designation of a trustee. If there is a default in the 31 principal of, or interest on, the bond or note or in the 32 performance of any agreement contained in the loan agreement or 33 other instrument, the payment or performance may be enforced in 34 accordance with the loan agreement or other instrument. 35 -2- LSB 1094HW (1) 91 nls/ko 2/ 103 |
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| 7 | 7 | | H.F. 1012 d. Other terms and conditions as deemed necessary or 1 appropriate by the authority. 2 3. Chapter 16, except to the extent inconsistent with this 3 section, shall apply to bonds or notes issued, and powers 4 granted to the authority, under this section. Section 16.28, 5 subsection 4, shall not apply to this section. 6 4. All bonds or notes issued by the authority in connection 7 with the program are exempt from taxation by this state and the 8 interest on the bonds or notes is exempt from state income tax. 9 Sec. 4. NEW SECTION . 16.233 Security reserve funds 10 pledges nonliability. 11 1. The authority may provide in the resolution, trust 12 agreement, or other instrument authorizing the issuance of 13 bonds or notes pursuant to chapter 29D that the principal of, 14 premium, and interest on the bonds or notes are payable from 15 any of the following and may pledge the same to the authoritys 16 bonds or notes: 17 a. The income and receipts or other moneys derived from the 18 projects financed with the proceeds of the bonds or notes. 19 b. The income and receipts or other moneys derived from 20 designated projects whether or not the projects are financed in 21 whole or in part with the proceeds of the bonds or notes. 22 c. The amounts on deposit in the fund. 23 d. The amounts payable to the authority by loan recipients 24 pursuant to loan agreements with loan recipients. 25 e. Any other funds or accounts established by the authority 26 in connection with the program or the sale and issuance of the 27 authoritys bonds or notes. 28 2. The authority may establish reserve funds to secure 29 one or more issues of its bonds or notes. The authority may 30 deposit in a reserve fund established under this subsection 31 the proceeds of the sale of the authoritys bonds or notes and 32 other moneys which are made available from any other source. 33 3. It is the intention of the general assembly that a pledge 34 made in respect of bonds or notes shall be valid and binding 35 -3- LSB 1094HW (1) 91 nls/ko 3/ 103 |
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| 9 | 9 | | H.F. 1012 from the time the pledge is made, that the moneys or property 1 so pledged and received after the pledge by the authority 2 shall immediately be subject to the lien of the pledge without 3 physical delivery or further act, and that the lien of the 4 pledge shall be valid and binding as against all parties having 5 claims of any kind in tort, contract, or otherwise against 6 the authority whether or not the parties have notice of the 7 lien. Neither the resolution, trust agreement, nor any other 8 instrument by which a pledge is created needs to be recorded or 9 filed under the Iowa uniform commercial code, chapter 554, to 10 be valid, binding, or effective against the parties. 11 4. Neither the members of the authority nor persons 12 executing the bonds or notes are liable personally on the bonds 13 or notes or are subject to personal liability or accountability 14 by reason of the issuance of the bonds or notes. 15 5. The bonds or notes issued by the authority are not 16 an indebtedness or other liability of the state or of a 17 political subdivision of the state within the meaning of any 18 constitutional or statutory debt limitations but are special 19 obligations of the authority, and are payable solely from 20 the income and receipts or other funds or property of the 21 authority, and the amounts on deposit in the revolving loan 22 funds, and the amounts payable to the authority under the 23 authoritys loan agreements with loan recipients to the extent 24 that the amounts are designated in the resolution, trust 25 agreement, or other instrument of the authority authorizing the 26 issuance of the bonds or notes as being available as security 27 for such bonds or notes. The authority shall not pledge the 28 faith or credit of the state or of a political subdivision of 29 the state to the payment of any bonds or notes. The issuance 30 of any bonds or notes by the authority does not directly, 31 indirectly, or contingently obligate the state or a political 32 subdivision of the state to apply moneys from, or levy or 33 pledge any form of taxation to the payment of the bonds or 34 notes. 35 -4- LSB 1094HW (1) 91 nls/ko 4/ 103 |
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| 11 | 11 | | H.F. 1012 Sec. 5. NEW SECTION . 29D.1 Short title. 1 This chapter shall be known and may be cited as the Natural 2 Hazard Mitigation Financing Program . 3 Sec. 6. NEW SECTION . 29D.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. Authority means the Iowa finance authority created in 7 section 16.1A. 8 2. Cost means all costs or indebtedness incurred by a loan 9 recipient and determined by the department as reasonable and 10 necessary for carrying out all work necessary or incidental to 11 the accomplishment of a project. 12 3. Department means the department of homeland security 13 and emergency management. 14 4. Director means the director of the department of 15 homeland security and emergency management. 16 5. Eligible entity means a person that is eligible under 17 the STORM Act to receive a loan under the program. 18 6. Fund means the natural hazard mitigation revolving loan 19 fund created in section 29D.4. 20 7. Loan recipient means an eligible entity that has 21 received a loan from the fund. 22 8. Municipality means a city, county, sanitary district, 23 state agency, or other governmental body or corporation, or any 24 combination of two or more governmental bodies or corporations 25 acting jointly, in connection with a project. 26 9. Private entity means a corporation, limited liability 27 company, trust, estate, partnership, association, or any 28 other legal entity or a legal representative, agent, officer, 29 employee, or assignee of such entity. Private entity does not 30 include any of the following: 31 a. An individual, municipality, or city utility as that term 32 is defined in section 362.2. 33 b. A public water supply system as defined in section 34 455B.171. 35 -5- LSB 1094HW (1) 91 nls/ko 5/ 103 |
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| 13 | 13 | | H.F. 1012 c. A qualified entity as defined in section 384.84, 1 subsection 2. 2 10. Program means the natural hazard mitigation financing 3 program created in section 29D.3. 4 11. a. Project means an activity or set of activities, 5 in accordance with the limitations set forth in the STORM Act, 6 that mitigate the impact of natural hazards, including but not 7 limited to: 8 (1) Drought and prolonged episodes of intense heat. 9 (2) Severe storms, including tornadoes, windstorms, and 10 severe winter storms. 11 (3) Wildfires. 12 (4) Earthquakes. 13 (5) Flooding. 14 (6) Shoreline erosion. 15 (7) High water levels. 16 (8) Storm surges. 17 b. Project may include but is not limited to any of the 18 following: 19 (1) The construction, repair, or replacement of a 20 nonfederal levee or other flood control structure, provided 21 that the administrator of the federal emergency management 22 agency, in consultation with the United States army corps of 23 engineers, if appropriate, requires an eligible entity to 24 determine that such levee or other flood control structure is 25 designed, constructed, and maintained in accordance with sound 26 engineering practices and standards equivalent to the purpose 27 for which such levee or structure is intended. 28 (2) Zoning and land use planning changes. 29 (3) Establishing and enforcing building codes. 30 12. Safeguarding tomorrow through ongoing risk mitigation 31 Act , or STORM Act , means the federal Robert T. Stafford 32 Disaster Relief and Emergency Assistance Act, Pub. L. No. 33 93-288, as amended, 42 U.S.C. 5121 et seq. 34 Sec. 7. NEW SECTION . 29D.3 Natural hazard mitigation 35 -6- LSB 1094HW (1) 91 nls/ko 6/ 103 |
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| 15 | 15 | | H.F. 1012 financing program. 1 1. The natural hazard mitigation financing program is 2 created for the purpose of making loans available to eligible 3 entities to finance all or part of the costs of a project. 4 2. The program shall be a joint and cooperative undertaking 5 of the department and the authority. The department and 6 the authority may enter into any agreements, documents, 7 instruments, certificates, data, or information as necessary 8 for the operation, administration, and financing of the program 9 consistent with this chapter, chapter 16, subchapter X, part 10 11, the STORM Act, the rules promulgated under chapter 17A by 11 the department in consultation with the authority, and any 12 other applicable federal or state laws. The authority and the 13 department may act to conform the program to the applicable 14 guidance and regulations adopted by the federal emergency 15 management agency. 16 Sec. 8. NEW SECTION . 29D.4 Natural hazard mitigation 17 revolving loan fund. 18 1. A natural hazard mitigation revolving loan fund is 19 created in the state treasury under the control of the 20 department in consultation with the authority. The revolving 21 loan fund is a separate dedicated fund under the administration 22 and control of the department in consultation with the 23 authority and shall be subject to section 16.31. Moneys 24 on deposit in the revolving loan fund shall be invested by 25 the treasurer of state in cooperation with the department, 26 in consultation with the authority, and the income from the 27 investments shall be credited to and deposited in the revolving 28 loan fund. 29 2. a. The fund shall consist of moneys appropriated by 30 the general assembly, moneys received by the fund through the 31 federal emergency management agency and the STORM Act, moneys 32 received as repayment of loan principal and interest from loans 33 paid for by the fund, and all other moneys received by the fund 34 from any other source. Notwithstanding section 8.33, moneys in 35 -7- LSB 1094HW (1) 91 nls/ko 7/ 103 |
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| 17 | 17 | | H.F. 1012 the fund that remain unencumbered or unobligated at the close 1 of the fiscal year shall not revert but shall remain available 2 for expenditure for the purposes designated. Notwithstanding 3 section 12C.7, subsection 2, interest or earnings on moneys in 4 the fund shall be credited to the fund. 5 b. Moneys in the fund are appropriated to the department to 6 provide loans to eligible entities pursuant to section 29D.9, 7 and for administration of the program as permitted under the 8 STORM Act. Moneys in the fund shall not be used to provide a 9 loan to a private entity for the acquisition of real property. 10 Moneys in the fund shall not be considered part of the general 11 fund of the state subject to appropriation for any other 12 purpose by the general assembly, and in determining a general 13 fund balance, shall not be included in the general fund of 14 the state subject to section 16.31, insofar as section 16.31 15 complies with the STORM Act. 16 Sec. 9. NEW SECTION . 29D.5 Director powers and duties. 17 The director shall do all of the following: 18 1. Process and review each intended use plan application 19 to determine if the intended use plan application meets the 20 eligibility requirements promulgated by the department by rule, 21 and approve or deny the application. 22 2. Process and review all documents relating to the 23 planning, design, construction, and operation of each project. 24 3. Prepare and process, in coordination with the authority, 25 documents relating to the administration of the program. 26 4. Prepare an annual budget for administration of the 27 program. 28 5. Receive program fees as determined in conjunction with 29 the authority. 30 6. Perform other acts and assume other duties and 31 responsibilities necessary for the administration of the 32 program and compliance with the STORM Act. 33 Sec. 10. NEW SECTION . 29D.6 Intended use plans 34 capitalization grants accounting. 35 -8- LSB 1094HW (1) 91 nls/ko 8/ 103 |
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| 19 | 19 | | H.F. 1012 1. For the fiscal year beginning July 1, 2025, and each 1 fiscal year thereafter, the department may prepare and deliver 2 intended use plans to, and enter into capitalization grant 3 agreements with, the administrator of the federal emergency 4 management agency under the terms and conditions set forth 5 in the STORM Act and federal regulations adopted pursuant to 6 the STORM Act, and may accept capitalization grants for the 7 fund in accordance with payment schedules established by the 8 administrator. All payments from the administrator shall be 9 deposited into the fund. 10 2. The department, in consultation with the authority, 11 shall establish fiscal controls and accounting procedures 12 during appropriate accounting periods for payments received for 13 deposit into, and disbursements made from, the fund, and to 14 fund balances at the beginning and end of an accounting period. 15 Sec. 11. NEW SECTION . 29D.7 Authority loan application 16 review and approval. 17 1. The department and the authority shall review each 18 loan application to determine if the applicant is an eligible 19 entity and qualifies for a loan pursuant to eligibility 20 requirements established by rule promulgated by the department 21 and the authority, and in accordance with the intended use plan 22 applications approved by the director under section 29D.6. 23 2. The authority, in cooperation with the department, shall 24 determine the interest rate and repayment terms for each loan 25 made under the program and the authority shall enter into a 26 loan agreement with each loan recipient in compliance with 27 the Clean Water Act as defined in section 455B.291, the Safe 28 Drinking Water Act as defined in section 455B.291, the STORM 29 Act, and any other applicable state or federal law. 30 3. The authority may charge loan recipients fees and assess 31 costs as deemed necessary by the authority for the continued 32 operation of the program. Fees and costs collected pursuant 33 to this subsection shall be deposited in the fund described in 34 section 29D.4. 35 -9- LSB 1094HW (1) 91 nls/ko 9/ 103 |
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| 21 | 21 | | H.F. 1012 Sec. 12. NEW SECTION . 29D.8 Loans to eligible entities. 1 1. Moneys deposited in the fund shall be used for the 2 primary purpose of making loans to eligible entities to finance 3 eligible costs of projects in accordance with the intended 4 use plans prepared and delivered to the administrator of the 5 federal emergency management system by the department under 6 section 29D.6. The loan recipients and the purpose and amount 7 of the loans shall be determined by the director, in compliance 8 with the STORM Act and other applicable federal law, and any 9 resolution, agreement, indenture, or other document of the 10 authority, and rules adopted by the authority relating to any 11 bonds, notes, or other obligations issued for the program which 12 may be applicable to the loan. 13 2. Notwithstanding any provision of this chapter to the 14 contrary, moneys received under the federal American Recovery 15 and Reinvestment Act of 2009, Pub. L. No. 111-5, and deposited 16 in the fund may be used in any manner permitted or required by 17 applicable federal law. 18 Sec. 13. NEW SECTION . 29D.9 Rules. 19 The department, in consultation with the authority, shall 20 adopt rules pursuant to chapter 17A to administer this chapter. 21 Sec. 14. Section 422.7, subsection 2, Code 2025, is amended 22 by adding the following new paragraph: 23 NEW PARAGRAPH . u. Natural hazard mitigation financing 24 program bonds pursuant to section 16.232, subsection 4. 25 Sec. 15. CODE EDITOR DIRECTIVE. The Code editor shall 26 designate sections 16.230 through 16.233, as enacted in this 27 division of this Act, as part 11 of chapter 16, subchapter X, 28 entitled Natural Hazard Mitigation Financing Program. 29 DIVISION II 30 DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM 31 Sec. 16. Section 16.57B, subsection 1, paragraph a, Code 32 2025, is amended to read as follows: 33 a. Disaster-affected home means a primary residence 34 that is destroyed or damaged due to a natural disaster that 35 -10- LSB 1094HW (1) 91 nls/ko 10/ 103 |
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| 23 | 23 | | H.F. 1012 occurs on or after June 16, 2021, and the primary residence 1 is located in a county that is the subject of a state of 2 disaster emergency proclamation by the governor that authorizes 3 disaster recovery housing assistance. The state of disaster 4 emergency proclamation shall specify if disaster recovery 5 housing assistance is available to homeowners, renters, or both 6 homeowners and renters. 7 Sec. 17. Section 16.57B, subsection 1, Code 2025, is amended 8 by adding the following new paragraph: 9 NEW PARAGRAPH . 0b. Financial assistance means assistance 10 provided only from the funds, rights, and assets legally 11 available to the authority pursuant to this chapter and 12 includes but is not limited to assistance in the form of 13 grants, loans, and forgivable loans. 14 Sec. 18. Section 16.57B, subsection 2, paragraph a, 15 subparagraph (1), Code 2025, is amended to read as follows: 16 (1) A disaster recovery housing assistance fund is created 17 within the authority. The moneys in the fund shall be used by 18 the authority for the development and operation of a forgivable 19 loan and grant program for to award financial assistance to 20 homeowners and renters with disaster-affected homes, and for 21 the eviction prevention program pursuant to section 16.57C . 22 Sec. 19. Section 16.57B, subsection 2, paragraph c, Code 23 2025, is amended to read as follows: 24 c. The authority shall not use more than five percent of the 25 moneys in deposited into the fund on July 1 of a fiscal year 26 under paragraph b for purposes of administrative costs and 27 other program support during the fiscal year . 28 Sec. 20. Section 16.57B, subsection 3, paragraph a, Code 29 2025, is amended to read as follows: 30 a. The authority shall establish and administer a disaster 31 recovery housing assistance program and shall use moneys in the 32 fund to award forgivable loans financial assistance to eligible 33 homeowners and grants to eligible renters of disaster-affected 34 homes. Moneys in the fund may be expended following a state 35 -11- LSB 1094HW (1) 91 nls/ko 11/ 103 |
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| 25 | 25 | | H.F. 1012 of disaster emergency proclamation by the governor pursuant 1 to section 29C.6 that authorizes disaster recovery housing 2 assistance. The governor, by state of disaster emergency 3 proclamation, shall specify if disaster recovery housing 4 assistance is available to homeowners, renters, or both 5 homeowners and renters. 6 Sec. 21. Section 16.57B, subsections 4, 5, 6, and 7, Code 7 2025, are amended to read as follows: 8 4. Registration required . To be considered for a forgivable 9 loan or grant under the program, a A homeowner or renter must 10 may register for the disaster case advocacy program established 11 pursuant to section 29C.20B . The disaster case manager may 12 refer the homeowner or renter to the appropriate local program 13 administrator. 14 5. Homeowners. 15 a. To be eligible for a forgivable loan financial assistance 16 under the program, all of the following requirements shall 17 apply: 18 (1) The homeowners disaster-affected home must have 19 sustained damage greater than the damage that is covered by the 20 homeowners property and casualty insurance policy insuring the 21 home plus any other state or federal disaster-related financial 22 assistance that the homeowner is eligible to receive. 23 (2) A local official must either deem the disaster-affected 24 home suitable for rehabilitation or damaged beyond reasonable 25 repair. 26 (3) The disaster-affected home is not eligible for buyout by 27 the county or city where the disaster-affected home is located, 28 or the disaster-affected home is eligible for a buyout by the 29 county or city where the disaster-affected home is located, 30 but the homeowner is requesting a forgivable loan financial 31 assistance for the repair or rehabilitation of the homeowners 32 disaster-affected home in lieu of a buyout. 33 (4) Assistance Financial assistance under the program must 34 not duplicate benefits provided by any local, state, or federal 35 -12- LSB 1094HW (1) 91 nls/ko 12/ 103 |
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| 27 | 27 | | H.F. 1012 disaster recovery assistance program. 1 b. If a homeowner is referred to the authority or to a 2 local program administrator by the disaster case manager of 3 the homeowner, the The authority may award a forgivable loan 4 financial assistance to the eligible homeowner for any of the 5 following purposes: 6 (1) Repair or rehabilitation of the disaster-affected home. 7 The disaster-affected home to be repaired or rehabilitated 8 shall not be located in a one-hundred-year floodplain. 9 (2) (a) Down payment assistance on the purchase of 10 replacement housing, and the cost of reasonable repairs to be 11 performed on the replacement housing to render the replacement 12 housing decent, safe, sanitary, and in good repair. 13 (b) Replacement housing shall not be located in a 14 one-hundred-year floodplain. 15 (c) For purposes of this subparagraph, decent, safe, 16 sanitary, and in good repair means the same as described in 24 17 C.F.R. 5.703. 18 c. The authority shall determine the interest rate for the 19 any financial assistance awarded in the form of a loan or a 20 forgivable loan. 21 d. If a homeowner who has been awarded a loan or a 22 forgivable loan sells a disaster-affected home or replacement 23 housing for which the homeowner received the loan or forgivable 24 loan prior to the end of the loan term, the remaining principal 25 on the loan or forgivable loan shall be due and payable 26 pursuant to rules adopted by the authority. 27 6. Renters. 28 a. To be eligible for a grant financial assistance under the 29 program, all of the following requirements shall apply: 30 (1) A local program administrator either deems 31 the disaster-affected home of the renter suitable for 32 rehabilitation but unsuitable for current short-term 33 habitation, or the disaster-affected home is damaged beyond 34 reasonable repair. 35 -13- LSB 1094HW (1) 91 nls/ko 13/ 103 |
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| 29 | 29 | | H.F. 1012 (2) Assistance Financial assistance under the program must 1 not duplicate benefits provided by any local, state, or federal 2 disaster recovery assistance program. 3 b. If a renter is referred to the authority or to a 4 local program administrator by the disaster case manager of 5 the renter, the The authority may award a grant financial 6 assistance to the eligible renter to provide short-term 7 financial assistance for the payment of rent for replacement 8 housing. 9 7. Report. On or before January 31 of each year, or as part 10 of the annual report under section 16.7 , the authority shall 11 submit a report to the general assembly that identifies all of 12 the following for the calendar year immediately preceding the 13 year of the report: 14 a. The date of each state of disaster emergency proclamation 15 by the governor that authorized disaster recovery housing 16 assistance under this section , and if disaster recovery housing 17 assistance was made available to homeowners, renters, or both 18 homeowners and renters . 19 b. The total number of forgivable loans and grants financial 20 assistance awards awarded. 21 c. The total number of forgivable loans financial assistance 22 awards , and the amount of each loan financial assistance award 23 awarded for repair or rehabilitation. 24 d. The total number of forgivable loans financial assistance 25 awards , and the amount of each loan financial assistance 26 award , awarded for down payment assistance on the purchase of 27 replacement housing and the cost of reasonable repairs to be 28 performed on the replacement housing to render the replacement 29 housing decent, safe, sanitary, and in good repair. 30 e. The total number of grants, and the amount of each grant, 31 awarded for rental assistance. 32 f. The total number of loans, forgivable loans , and grants 33 awarded in each county in which at least one homeowner or 34 renter has been awarded a loan, forgivable loan , or grant. 35 -14- LSB 1094HW (1) 91 nls/ko 14/ 103 |
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| 31 | 31 | | H.F. 1012 g. Each local program administrator involved in the 1 administration of the program. 2 h. The total amount of loan and forgivable loan principal 3 repaid. 4 Sec. 22. Section 16.57D, subsections 1 and 2, Code 2025, are 5 amended to read as follows: 6 1. Establish the maximum loan, forgivable loan , and grant 7 amounts awarded under the program. 8 2. Establish the terms of any loan or forgivable loan 9 provided under the program. 10 DIVISION III 11 DISASTER RECOVERY NEW HOUSING PROGRAM 12 Sec. 23. Section 422.7, Code 2025, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 45. a. Subtract, to the extent included, 15 the amount of any qualifying state disaster recovery new 16 housing grant issued to an individual or business by the 17 economic development authority. 18 b. For purposes of this subsection, qualifying state 19 disaster recovery new housing grant means an award of a state 20 disaster recovery new housing grant that was applied for 21 between August 20, 2024, and December 31, 2024, and approved 22 and issued by the economic development authority. 23 Sec. 24. Section 422.35, Code 2025, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 14. a. Subtract, to the extent included, 26 the amount of any qualifying state disaster recovery new 27 housing grant issued to a business by the economic development 28 authority. 29 b. For purposes of this subsection, qualifying state 30 disaster recovery new housing grant means an award of a state 31 disaster recovery new housing grant that was applied for 32 between August 20, 2024, and December 31, 2024, and approved 33 and issued by the economic development authority. 34 Sec. 25. EFFECTIVE DATE. This division of this Act, being 35 -15- LSB 1094HW (1) 91 nls/ko 15/ 103 |
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| 33 | 33 | | H.F. 1012 deemed of immediate importance, takes effect upon enactment. 1 Sec. 26. RETROACTIVE APPLICABILITY. This division of this 2 Act applies retroactively to tax years beginning on or after 3 January 1, 2024. 4 DIVISION IV 5 POST-LOSS ASSIGNMENT OF BENEFITS RESIDENTIAL CONTRACTOR 6 Sec. 27. Section 507B.4, subsection 3, Code 2025, is amended 7 by adding the following new paragraph: 8 NEW PARAGRAPH . v. Post-loss assignment of benefits. Any 9 violation of section 515.137A by a residential contractor. 10 Sec. 28. Section 515.137A, subsection 2, Code 2025, is 11 amended by adding the following new paragraphs: 12 NEW PARAGRAPH . 0b. Catastrophic disaster includes a major 13 disaster declaration by the president of the United States or a 14 state of disaster emergency proclamation by the governor. 15 NEW PARAGRAPH . 00b. Consumer advocate means a consumer 16 advocate appointed pursuant to section 505.8, subsection 6, 17 paragraph b , subparagraph (1). 18 NEW PARAGRAPH . 000b. Post-loss assignment means any 19 instrument by which post-loss benefits, rights, or duties of 20 a named insured under a residential property and casualty 21 insurance policy are assigned or transferred to a residential 22 contractor. The post-loss assignment must only assign the 23 insurance proceeds a named insured is entitled to receive 24 from the named insureds insurer for the repair, replacement 25 construction, or reconstruction of the named insureds 26 property. 27 Sec. 29. Section 515.137A, subsections 3, 4, and 5, Code 28 2025, are amended by striking the subsections and inserting in 29 lieu thereof the following: 30 3. A residential contractor shall be prohibited from all of 31 the following under a post-loss assignment by a named insured 32 to the residential contractor: 33 a. Rebating or offering to rebate any portion of the named 34 insureds insurance deductible as an inducement for the named 35 -16- LSB 1094HW (1) 91 nls/ko 16/ 103 |
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| 35 | 35 | | H.F. 1012 insured to purchase a good or service. 1 b. Imposing an administrative fee on the named insured 2 for canceling the post-loss assignment, or imposing a fee to 3 process the insurance check or to interact with the named 4 insureds mortgage company. 5 c. Acting as a public adjuster without being licensed under 6 chapter 522C. 7 d. Receiving payments from the named insureds insurer 8 that are unrelated to the repair, replacement construction, 9 or reconstruction work on the covered insureds property, 10 including but not limited to all of the following: 11 (1) Additional living expenses. 12 (2) Loss of use. 13 4. a. A post-loss assignment must include all of the 14 following: 15 (1) An itemized description of the work to be performed. 16 (2) An itemized description of the materials, labor, and 17 fees for the work to be performed. 18 (3) A total itemized amount to be paid for the work to be 19 performed. 20 (4) A statement that the residential contractor has made 21 no assurances that the claimed loss will be fully covered by 22 the named insureds insurance contract and shall include the 23 following notice in capitalized fourteen point type: 24 YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER 25 YOUR INSURANCE POLICY. PLEASE READ AND UNDERSTAND THIS 26 DOCUMENT BEFORE SIGNING. 27 THE ITEMIZED DESCRIPTION OF THE WORK TO BE DONE SHOWN IN THIS 28 ASSIGNMENT FORM HAS NOT BEEN AGREED TO BY THE INSURER. THE 29 INSURER HAS THE RIGHT TO PAY ONLY FOR THE COST TO REPAIR OR 30 REPLACE DAMAGED PROPERTY CAUSED BY A COVERED PERIL. POST-LOSS 31 ASSIGNMENTS ARE SUBJECT TO THE AUTHORITY OF THE IOWA INSURANCE 32 DIVISION. YOU MAY FILE A COMPLAINT WITH THE DIVISION ON THE 33 DIVISIONS INTERNET SITE OR CALL THE DIVISION AT (telephone 34 number). 35 -17- LSB 1094HW (1) 91 nls/ko 17/ 103 |
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| 36 | 36 | | |
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| 37 | 37 | | H.F. 1012 (5) In capitalized fourteen point type and located in the 1 immediate proximity of the space reserved in the assignment for 2 the signature of the named insured, the following notice: 3 YOU MAY CANCEL THIS POST-LOSS ASSIGNMENT FOR ANY REASON 4 WITHOUT PENALTY WITHIN FIVE (5) BUSINESS DAYS FROM THE LATER OF 5 THE DATE THE POST-LOSS ASSIGNMENT IS FULLY EXECUTED OR THE DATE 6 ON WHICH YOU RECEIVE A COPY OF THE FULLY EXECUTED POST-LOSS 7 ASSIGNMENT. IF MAILED, THE CANCELLATION MUST BE POSTMARKED 8 BEFORE THE FIVE (5) BUSINESS DAY DEADLINE. 9 YOU MUST CANCEL THE POST-LOSS ASSIGNMENT IN WRITING AND 10 THE CANCELLATION MUST BE DELIVERED TO (name and address 11 of residential contractor as provided by the residential 12 contractor). IF THE ASSIGNEE HAS NOT BEGUN SUBSTANTIALLY 13 PERFORMING WORK ON THE PROPERTY, YOU MAY CANCEL THIS POST-LOSS 14 ASSIGNMENT WITHOUT PENALTY AFTER AT LEAST THIRTY (30) CALENDAR 15 DAYS AFTER THE DATE WORK ON THE PROPERTY IS SCHEDULED TO 16 COMMENCE, OR AFTER AT LEAST THIRTY (30) CALENDAR DAYS AFTER 17 THE POST-LOSS ASSIGNMENT IS FULLY EXECUTED IF THE POST-LOSS 18 ASSIGNMENT DOES NOT CONTAIN A COMMENCEMENT DATE. 19 IF YOU CANCEL THIS POST-LOSS ASSIGNMENT, THE RESIDENTIAL 20 CONTRACTOR HAS UP TO TEN (10) BUSINESS DAYS TO RETURN ALL 21 PAYMENTS OR DEPOSITS YOU HAVE MADE. 22 (6) A provision that requires the assignee to indemnify and 23 hold harmless the assignor from liabilities, damages, losses, 24 and costs, including but not limited to attorney fees related 25 to the loss claim. 26 b. A post-loss assignment shall not impair the interest of 27 a mortgagee listed on the declarations page of the property and 28 casualty insurance policy that is the subject of the post-loss 29 assignment. All mortgagees shall be named as a co-payee for 30 the payment of benefits under a property and casualty insurance 31 policy covering residential real estate. 32 c. A post-loss assignment shall only authorize a residential 33 contractor to be named as a co-payee, along with the named 34 insured and all mortgagees, for the payment of benefits under 35 -18- LSB 1094HW (1) 91 nls/ko 18/ 103 |
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| 38 | 38 | | |
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| 39 | 39 | | H.F. 1012 a property and casualty insurance policy covering residential 1 real estate. 2 d. A post-loss assignment shall not prevent or inhibit 3 an insurer from communicating with the named insured or a 4 mortgagee listed on the declarations page of the property and 5 casualty insurance policy that is the subject of the post-loss 6 assignment. 7 e. An electronic copy of the fully executed post-loss 8 assignment shall be provided to the insurer of the residential 9 real estate, the named insured, and all mortgagees of the 10 damaged residential real estate within five business days after 11 execution of the post-loss assignment. A paper copy shall be 12 provided to the insurer, a named insured, and any mortgagee of 13 the damaged residential real estate within five business days 14 of a request by the insurer, the named insured, or a mortgagee. 15 f. A residential contractor named in a post-loss assignment 16 must cooperate with the insurer of the damaged residential 17 real estate in a claim investigation by providing documents 18 and records requested by the insurer and complying with each 19 post-loss duty included in the named insureds insurance 20 policy. 21 5. a. A named insured shall have the right to cancel a 22 post-loss assignment without penalty or fee under all of the 23 following circumstances: 24 (1) For any reason within five business days from the 25 date on which the named insured receives a copy of the fully 26 executed post-loss agreement. 27 (2) The assignee has not substantially performed work on 28 the property that is the subject of the post-loss assignment at 29 least thirty calendar days after the date work on the property 30 was scheduled to commence. 31 (3) The assignee has not begun substantial work on the 32 property that is the subject of the post-loss assignment at 33 least thirty calendar days after the date the insured received 34 a fully executed copy of the executed post-loss assignment and 35 -19- LSB 1094HW (1) 91 nls/ko 19/ 103 |
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| 40 | 40 | | |
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| 41 | 41 | | H.F. 1012 the post-loss assignment does not contain a commencement date. 1 b. The cancellation shall be made in writing. Within ten 2 business days of the date of the written cancellation, the 3 residential contractor shall tender to the named insured, the 4 landowner, or the possessor of the real estate, all payments, 5 partial payments, or deposits that have been made by such 6 person. 7 6. Any written contract, repair estimate, or work order 8 prepared by a residential contractor to provide goods or 9 services to be paid from the proceeds of a property and 10 casualty insurance policy pursuant to a post-loss assignment 11 shall include, in capitalized fourteen point type, the notice 12 as provided in section 103A.71, subsection 4, paragraph a , 13 which shall be signed by the named insured, and sent to the 14 named insureds insurer prior to payment to the residential 15 contractor of proceeds under the applicable insurance policy. 16 7. For a minimum of seventy-two hours following a 17 catastrophic disaster, a residential contractor shall 18 not enter into a contract with an insured that includes a 19 post-loss assignment. If the commissioner deems the severity 20 of the catastrophic disaster to have placed people under 21 duress, the commissioner shall immediately dispatch the 22 consumer advocate and other personnel to the disaster area to 23 provide consumer guidance. If, after a public hearing, the 24 commissioner determines that, due to the scope and severity 25 of the catastrophic disaster, additional time is necessary to 26 safely deploy additional consumer protection resources, the 27 commissioner may extend the time period that a residential 28 contractor shall not enter into a contract with an insured that 29 includes a post-loss assignment for an additional seventy-two 30 hours. 31 8. A post-loss assignment entered into with a residential 32 contractor shall be void if the residential contractor violates 33 this section. 34 9. A violation of this section by a residential contractor 35 -20- LSB 1094HW (1) 91 nls/ko 20/ 103 |
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| 42 | 42 | | |
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| 43 | 43 | | H.F. 1012 shall be an unfair practice pursuant to section 507B.4. 1 10. If any provision of this section or the application 2 thereof to any person or circumstance is held invalid, the 3 invalidity does not affect other provisions or applications 4 of this section which can be given effect without the invalid 5 provision or application, and to this end the provisions of 6 this section are severable. 7 DIVISION V 8 PUBLIC, INDEPENDENT, AND STAFF ADJUSTERS 9 Sec. 30. Section 507B.4, subsection 3, Code 2025, is amended 10 by adding the following new paragraph: 11 NEW PARAGRAPH . v. Adjuster financial responsibility. 12 Failure of an adjuster to comply with section 522C.7. 13 Sec. 31. Section 522B.5A, subsection 2, paragraphs c and e, 14 Code 2025, are amended to read as follows: 15 c. A renewal, reinstatement, or reissuance of a license 16 if the license of a producer has been revoked or suspended 17 pursuant to section 522B.11 , the license of a public an 18 adjuster has been revoked or suspended pursuant to section 19 522C.6 522C.13 , or the license of a viatical settlement 20 provider or viatical settlement broker has been revoked or 21 suspended pursuant to section 508E.4 . 22 e. An initial license as a public an adjuster in this state. 23 Sec. 32. Section 522C.1, Code 2025, is amended to read as 24 follows: 25 522C.1 Purpose. 26 The purpose of this chapter is to govern the qualifications 27 and procedures for licensing public adjusters in this state, 28 and to specify the duties of and restrictions on public 29 adjusters, including limitation of such licensure to assisting 30 insureds only with first-party claims. 31 Sec. 33. Section 522C.2, Code 2025, is amended by striking 32 the section and inserting in lieu thereof the following: 33 522C.2 Definitions. 34 As used in this chapter, unless the context otherwise 35 -21- LSB 1094HW (1) 91 nls/ko 21/ 103 |
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| 44 | 44 | | |
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| 45 | 45 | | H.F. 1012 requires: 1 1. Adjuster means a public adjuster, an independent 2 adjuster, or a licensed staff adjuster. A person that acts as 3 an adjuster solely for a crop hail insurance or a multiperil 4 crop insurance claim shall not be subject to this chapter. 5 2. Amount of loss means the monetary amount determined to 6 be necessary to properly repair or replace damage related to a 7 covered peril, and is limited to all applicable coverages for 8 covered items associated with the claim. 9 3. Business entity means a corporation, association, 10 partnership, limited liability company, limited liability 11 partnership, or any other legal entity. 12 4. a. Catastrophic disaster means an event that results 13 in all of the following: 14 (1) A large number of deaths or injuries. 15 (2) Extensive damage or destruction of facilities that 16 provide and sustain human needs. 17 (3) An overwhelming demand on state and local response 18 resources and mechanisms. 19 (4) A severe long-term effect on general economic activity. 20 (5) A severe effect on state, local, and private sector 21 capabilities to commence and sustain disaster response 22 activities. 23 b. Catastrophic disaster includes a major disaster 24 declaration by the president of the United States or a state of 25 disaster emergency proclamation by the governor. 26 5. Commissioner means the commissioner of insurance. 27 6. Consumer advocate means a consumer advocate appointed 28 pursuant to section 505.8, subsection 6, paragraph b , 29 subparagraph (1). 30 7. Disciplinary matter means but is not limited to a 31 person who is the subject of an investigation, complaint, or 32 pending administrative action in this state or any other state. 33 8. Financial interest means but is not limited to a fee, 34 commission, or other valuable consideration. 35 -22- LSB 1094HW (1) 91 nls/ko 22/ 103 |
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| 46 | 46 | | |
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| 47 | 47 | | H.F. 1012 9. First-party claim means a claim filed by a named 1 insured under an insurance policy against which the claim is 2 made. 3 10. Home state means the District of Columbia, or any 4 state or territory of the United States in which an adjuster 5 maintains the adjusters principal place of residence or 6 principal place of business. 7 11. Independent adjuster means a person who does all of 8 the following: 9 a. Contracts for compensation with insurers or 10 self-insurers, and is treated by the insurer or self-insurer as 11 an independent contractor and not as an employee as that term 12 is described in 26 C.F.R. 31.3121(d)(1). 13 b. Investigates, negotiates, or settles property, 14 casualty, or workers compensation claims for insurers or for 15 self-insurers. 16 12. Insured means a person covered under an insurance 17 policy against which a claim is made. 18 13. NAIC means the national association of insurance 19 commissioners. 20 14. NIPR gateway means the communication network developed 21 and operated by the national insurance producer registry that 22 links state insurance regulators with regulated entities to 23 facilitate the electronic exchange of adjuster information, 24 including but not limited to license applications, license 25 renewals, appointments, and terminations. 26 15. Person means an individual or a business entity. 27 16. Producer database means the national database of 28 insurance producers maintained by the NAIC. 29 17. Public adjuster means a person who, for compensation 30 or other thing of value, does any of the following: 31 a. Acts for or aids an insured in negotiating or affecting 32 the settlement of a first-party claim for loss or damage to 33 real or personal property of an insured. 34 b. Advertises for employment as a public adjuster of 35 -23- LSB 1094HW (1) 91 nls/ko 23/ 103 |
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| 48 | 48 | | |
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| 49 | 49 | | H.F. 1012 first-party insurance claims or otherwise solicits business or 1 represents to the public that the person is a public adjuster 2 of first-party insurance claims for loss or damage to real or 3 personal property of an insured. 4 c. Directly or indirectly solicits business investigating 5 or adjusting losses, or advising an insured about first-party 6 claims for loss or damage to real or personal property of the 7 insured. 8 18. Reinstatement means the reinstatement of a suspended 9 license which was suspended in connection with a disciplinary 10 matter, and that has not expired or been terminated during the 11 suspension period. 12 19. Reissuance means the issuance of a new license 13 following the revocation of a license, the suspension and 14 subsequent termination of a license, or the forfeiture of a 15 license in connection with a disciplinary matter. 16 20. Staff adjuster means a person who is directly employed 17 by an insurer or self-insurer to investigate, negotiate, or 18 settle property, casualty, or workers compensation claims. 19 21. Uniform business entity application means the most 20 recent version of NAICs uniform application for business 21 entity license and registration. 22 22. Uniform individual application means the most recent 23 version of NAICs uniform application for individual adjuster 24 or apprentice license and registration. 25 Sec. 34. Section 522C.3, Code 2025, is amended by striking 26 the section and inserting in lieu thereof the following: 27 522C.3 Authority of the commissioner. 28 The commissioner may adopt rules pursuant to chapter 17A as 29 necessary to administer and enforce this chapter, which may 30 include but are not limited to all of the following: 31 1. Advertising standards. 32 2. Continuing education requirements for licensees. 33 3. Contracts between public adjusters and insureds. 34 4. Required disclosures by licensees. 35 -24- LSB 1094HW (1) 91 nls/ko 24/ 103 |
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| 50 | 50 | | |
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| 51 | 51 | | H.F. 1012 5. Examinations for licensure. 1 6. Exemptions. 2 7. License bonds, and errors and omissions insurance 3 requirements. 4 8. License requirements and exclusions. 5 9. Prohibited practices. 6 10. Record retention requirements. 7 11. Reporting requirements. 8 12. Requirements and limitations on fees charged by public 9 adjusters. 10 13. Standards for reasonableness of payment. 11 14. Standards of conduct. 12 15. Penalties. 13 Sec. 35. Section 522C.4, Code 2025, is amended by striking 14 the section and inserting in lieu thereof the following: 15 522C.4 License required. 16 1. A person shall not act as, or represent that the person 17 is, a public adjuster or an independent adjuster in this state 18 unless the person is licensed under this chapter. 19 2. A license as an adjuster shall not be required of any of 20 the following: 21 a. A staff adjuster; however, staff adjusters shall comply 22 with all other provisions of this chapter not including section 23 522C.7. 24 b. An attorney licensed to practice law in the state when 25 acting within their professional capacity as an attorney. 26 c. A person employed only for the purpose of obtaining facts 27 surrounding a loss, or furnishing technical assistance to a 28 licensed adjuster, including but not limited to a photographer, 29 estimator, private investigator, engineer, and handwriting 30 expert. 31 Sec. 36. Section 522C.5, Code 2025, is amended by striking 32 the section and inserting in lieu thereof the following: 33 522C.5 Application for license. 34 1. A person applying for an adjuster license shall complete 35 -25- LSB 1094HW (1) 91 nls/ko 25/ 103 |
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| 52 | 52 | | |
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| 53 | 53 | | H.F. 1012 a uniform individual application or a uniform business entity 1 application through the NIPR gateway or as otherwise prescribed 2 by the commissioner. 3 2. To determine an applicants eligibility for licensure, 4 the commissioner may require a criminal history check pursuant 5 to section 522B.5A. 6 Sec. 37. NEW SECTION . 522C.5A Individual applicants 7 resident adjuster. 8 Prior to approving an individuals application for a 9 resident adjuster license, the commissioner shall find that the 10 applicant meets all of the following requirements: 11 1. This state is the applicants home state. 12 2. The applicant has not committed any act that is a ground 13 for denial, suspension, or revocation of a license under 14 section 522C.13. 15 3. The applicant has the requisite character and competence 16 to be licensed as an adjuster, as may be determined by the 17 commissioner. 18 4. The applicant is financially responsible pursuant to 19 section 522C.7. 20 5. The applicant has paid all fees required under this 21 chapter. 22 6. The applicant maintains an office in the applicants home 23 state with public access by reasonable appointment or regular 24 business hours. 25 7. The applicant is at least eighteen years of age. 26 8. The applicant successfully passed the adjuster 27 examination pursuant to section 522C.8. 28 9. The applicant submitted contracts and any subsequent 29 contract modification to the commissioner for review and 30 approval prior to use. A contract that has been filed is 31 deemed to be approved unless disapproved or additional 32 information is requested by the commissioner within thirty 33 calendar days of receipt of the filing by the commissioner. 34 10. The applicant has obtained any necessary authority from 35 -26- LSB 1094HW (1) 91 nls/ko 26/ 103 |
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| 54 | 54 | | |
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| 55 | 55 | | H.F. 1012 the secretary of state to transact business in this state. 1 Sec. 38. NEW SECTION . 522C.5B Individual applicants 2 nonresident adjuster. 3 Before approving a nonresident applicants application for 4 a nonresident adjuster license, the commissioner shall find 5 that the nonresident applicant meets all of the following 6 requirements: 7 1. The nonresident applicant has not committed any act that 8 is a ground for denial, suspension, or revocation of a license 9 under section 522C.13. 10 2. The nonresident applicant is licensed as a resident 11 adjuster and in good standing in the nonresident applicants 12 home state. If the nonresident applicants resident license 13 in the nonresident applicants home state terminates for any 14 reason, a license issued to a nonresident applicant under this 15 section shall become inactive, unless the termination is due to 16 the nonresident applicant being issued a new resident adjuster 17 license in the nonresident applicants home state and the home 18 state has reciprocity with this state. 19 3. The nonresident applicant has submitted a request for 20 licensure to the division in a form and manner prescribed by 21 the commissioner. 22 4. The nonresident applicant has the requisite character 23 and competence to be licensed as an adjuster, as may be 24 determined by the commissioner. 25 5. The nonresident applicant is financially responsible 26 pursuant to section 522C.7. 27 6. The nonresident applicant has paid all fees required 28 under this chapter. 29 7. The nonresident applicant has obtained any necessary 30 authority from the Iowa secretary of state to transact business 31 in this state. 32 8. The nonresident applicant filed contracts with the 33 commissioner for review and approval prior to use. A contract 34 that has been filed is deemed to be approved unless disapproved 35 -27- LSB 1094HW (1) 91 nls/ko 27/ 103 |
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| 56 | 56 | | |
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| 57 | 57 | | H.F. 1012 or additional information is requested by the commissioner 1 within thirty calendar days of receipt of the filing by the 2 commissioner. 3 9. The nonresident applicant successfully passed the 4 adjuster examination pursuant to section 522C.8. 5 Sec. 39. NEW SECTION . 522C.5C Business applicants 6 resident public adjuster or independent adjuster. 7 Prior to approving a business entitys application for a 8 license for a resident public adjuster or resident independent 9 adjuster, the commissioner shall find that the business entity 10 meets all of the following requirements: 11 1. The business entity has designated an individual 12 adjuster licensed in this state to be responsible for the 13 business entitys compliance with the insurance laws and 14 administrative rules of this state. 15 2. The business entity has not committed any act that is a 16 ground for denial, suspension, or revocation of a license under 17 section 522C.13. 18 3. The business entity has the requisite character and 19 competence to be licensed as an adjuster, as may be determined 20 by the commissioner. 21 4. The business entity is financially responsible pursuant 22 to section 522C.7. 23 5. The business entity has paid all fees required under this 24 chapter. 25 6. The business entity maintains an office in the 26 business entitys home state with public access by reasonable 27 appointment or regular business hours. 28 7. The business entity submitted contracts and any 29 subsequent contract modification to the commissioner for review 30 and approval prior to use. A contract that has been filed 31 is deemed to be approved unless disapproved or additional 32 information is requested by the commissioner within thirty 33 calendar days of receipt of the filing by the commissioner. 34 8. The business entity has obtained any necessary authority 35 -28- LSB 1094HW (1) 91 nls/ko 28/ 103 |
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| 58 | 58 | | |
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| 59 | 59 | | H.F. 1012 from the Iowa secretary of state to transact business in this 1 state. 2 Sec. 40. NEW SECTION . 522C.5D Business applicants 3 nonresident business entity. 4 Before approving a nonresident business entitys application 5 for a nonresident public adjuster license or a nonresident 6 independent adjuster license, the commissioner shall find that 7 the nonresident business entity meets all of the following 8 requirements: 9 1. The nonresident business applicant has designated an 10 individual adjuster licensed in this state to be responsible 11 for the nonresident business applicants compliance with the 12 insurance laws and administrative rules of this state. 13 2. The nonresident business applicant has not committed any 14 act that is a ground for denial, suspension, or revocation of a 15 license under section 522C.13. 16 3. The nonresident business applicant has the requisite 17 character and competence to be licensed as an adjuster, as may 18 be determined by the commissioner. 19 4. The nonresident business applicant is financially 20 responsible pursuant to section 522C.7. 21 5. The nonresident business applicant has paid all fees 22 required under this chapter. 23 6. The nonresident business applicant maintains an office 24 in the nonresident business applicants home state with public 25 access by reasonable appointment or regular business hours. 26 7. The nonresident business applicant submitted contracts 27 and any subsequent contract modification to the commissioner 28 for review and approval prior to use. A contract that has been 29 filed is deemed to be approved unless disapproved or additional 30 information is requested by the commissioner within thirty 31 calendar days of receipt of the filing by the commissioner. 32 8. The nonresident business applicant has obtained any 33 necessary authority from the Iowa secretary of state to 34 transact business in this state. 35 -29- LSB 1094HW (1) 91 nls/ko 29/ 103 |
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| 60 | 60 | | |
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| 61 | 61 | | H.F. 1012 Sec. 41. Section 522C.6, Code 2025, is amended by striking 1 the section and inserting in lieu thereof the following: 2 522C.6 Fees license issuance, renewal, or reinstatement, 3 and examination. 4 Fees for a license as an adjuster shall be as follows: 5 1. Any applicable fee for a criminal history check pursuant 6 to section 522B.5A. 7 2. The fee for issuance or renewal of an adjuster license is 8 fifty dollars for a consecutive twenty-four-month period. 9 3. The fee for reinstatement of an adjuster license is fifty 10 dollars. 11 4. The fee for a reinstatement or reissuance of an adjuster 12 license due to a disciplinary action under section 522C.15 is 13 one hundred dollars. 14 5. The commissioner may charge a reasonable fee for the 15 compilation and production of adjuster licensing records. 16 6. The fee for an examination under section 522C.8 may 17 be set by a third-party testing service under contract with 18 the division to administer the examination. The fee must be 19 approved by the division. 20 7. Fees shall be paid electronically through the NIPR 21 gateway. 22 Sec. 42. NEW SECTION . 522C.7 Financial responsibility. 23 1. Prior to issuance of a license under section 522C.5A, 24 522C.5B, 522C.5C, or 522C.5D, an applicant shall secure 25 evidence of financial responsibility through a surety bond 26 as prescribed by the commissioner. The surety bond shall be 27 executed and issued by an insurer authorized to issue surety 28 bonds in this state and meet the following requirements: 29 a. The surety bond shall be a minimum of fifty thousand 30 dollars. 31 b. The surety bond shall be in favor of the state and 32 specifically authorize recovery by the commissioner on behalf 33 of any person in this state who sustains damages as the result 34 of an adjusters erroneous act, failure to act, fraud, or 35 -30- LSB 1094HW (1) 91 nls/ko 30/ 103 |
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| 62 | 62 | | |
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| 63 | 63 | | H.F. 1012 unfair or deceptive act or practice under section 507B.4. 1 c. The surety bond shall not be terminated without prior 2 written notice filed with the division a minimum of thirty 3 calendar days prior to termination. 4 2. The division may request that an adjuster provide 5 evidence of financial responsibility at any time the division 6 deems relevant. 7 3. An adjuster shall immediately notify the division if the 8 adjusters evidence of financial responsibility terminates in 9 violation of subsection 1, paragraph c , or becomes impaired, 10 and the adjusters license shall become inactive until the 11 adjuster provides the division with evidence of financial 12 responsibility. 13 Sec. 43. NEW SECTION . 522C.8 Examination. 14 1. An individual applying for a license under this chapter 15 shall pass a written examination, unless exempt pursuant to 16 section 522C.9. The examination shall test the knowledge of 17 the individual concerning the duties and responsibilities of 18 an adjuster and the insurance laws and administrative rules 19 of this state, and shall be conducted as prescribed by the 20 division. 21 2. Each individual applying for examination shall remit the 22 examination fee under section 522C.6. 23 3. An individual who fails to appear for a scheduled 24 examination, or who fails to pass the examination, may reapply 25 for examination and must remit the required fee to be scheduled 26 for another examination. 27 4. The results of an examination shall be valid to submit 28 for licensure for ninety calendar days after the date of the 29 examination. 30 Sec. 44. NEW SECTION . 522C.9 Examination exemption. 31 1. An individual who applies for a nonresident license 32 under this chapter and who was previously a licensed adjuster 33 in another state that required an examination that included 34 Iowa-specific statutes and administrative rules shall not be 35 -31- LSB 1094HW (1) 91 nls/ko 31/ 103 |
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| 64 | 64 | | |
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| 65 | 65 | | H.F. 1012 required to apply for examination under section 522C.8. 1 2. An individual who relocates to this state and who was a 2 licensed adjuster in another state that required an examination 3 that included Iowa-specific statutes and administrative rules 4 shall not be required to apply for examination under section 5 522C.8 if the individual submits an application for a resident 6 adjuster license under section 522C.5A within ninety calendar 7 days of establishing legal residency, and any of the following 8 apply: 9 a. The individual is currently a licensed adjuster in the 10 state from which the applicant relocated. 11 b. The state from which the applicant relocated issues 12 a certification that the applicant is licensed and in good 13 standing. 14 c. The producer database records of the state from which 15 the applicant relocated, or records maintained by the NAIC or 16 a NAIC affiliate or subsidiary, indicate that the adjuster 17 is currently licensed or had been licensed, and is in good 18 standing. 19 Sec. 45. NEW SECTION . 522C.10 Public adjuster and insured 20 contract for services. 21 1. a. A public adjuster shall not provide services to an 22 insured until a written contract with the insured has been 23 executed on a form filed with and approved by the commissioner 24 pursuant to section 522C.5A, subsection 9, section 522C.5B, 25 subsection 8, section 522C.5C, subsection 7, or section 26 522C.5D, subsection 7. The contract must have a heading that 27 indicates the contract is a public adjuster contract and must 28 contain all of the following: 29 (1) The full name, address, telephone number, and license 30 number of the public adjuster presenting and negotiating the 31 contract and, if applicable, the full name, address, telephone 32 number, and license number of the business entity the public 33 adjuster is associated with. 34 (2) The insureds full name, street address, insurance 35 -32- LSB 1094HW (1) 91 nls/ko 32/ 103 |
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| 66 | 66 | | |
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| 67 | 67 | | H.F. 1012 company name, and, if known or upon notification, the insurance 1 policy number and claim number. 2 (3) A description of the insureds loss claim and the 3 address at which the loss is located, if applicable. 4 (4) A description of services to be provided by the public 5 adjuster on behalf of the insured. 6 (5) A signature of the public adjuster and of the insured, 7 and the date the public adjuster and the insured each signed 8 the contract. 9 (6) An attestation that the public adjuster has a surety 10 bond pursuant to section 522C.7. 11 (7) An explanation of the amount payable to the public 12 adjuster, and how the amount is calculated, which may include 13 any of the following: 14 (a) If an hourly rate, the contract shall state the hourly 15 rate and how the rate is applied to the hours of service 16 provided by the public adjuster to calculate the amount 17 payable. 18 (b) If a flat fee, the contract must state the exact amount 19 payable to the public adjuster. 20 (c) If a percentage of settlement, the contract must state 21 the exact percentage applied to the settlement on the claim. 22 (d) If any other consideration, the contract must detail how 23 the amount payable is calculated or determined. 24 (8) A public adjuster may charge a reasonable fee that shall 25 not exceed any of the following: 26 (a) Fifteen percent of all claim payments approved by 27 the insurer for any noncatastrophic disaster insurance claim 28 settlement. 29 (b) Ten percent of all claim payments approved by the 30 insurer for any catastrophic disaster insurance claim 31 settlement. 32 (9) That compensation for any reopened or supplemental 33 claim may not exceed the limitations set forth in the contract. 34 (10) That the insured has the right to agree to or reject 35 -33- LSB 1094HW (1) 91 nls/ko 33/ 103 |
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| 68 | 68 | | |
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| 69 | 69 | | H.F. 1012 a loss settlement even if the public adjuster objects to the 1 insureds decision. 2 (11) The initial expenses of the public adjuster that will 3 be reimbursed from the proceeds of the claim payment shall be 4 specified by expense type, with reimbursement estimates set 5 forth in the contract. Any additional expenses for which the 6 public adjuster requests reimbursement shall be disclosed in 7 writing to the insured, and must be approved by the insured 8 prior to reimbursement. 9 (12) A statement that the public adjuster shall not render 10 services or perform acts that constitute the practice of law. 11 (13) A statement that the public adjuster shall not act on 12 behalf of or aid any person in negotiation or settlement of a 13 claim related to bodily injury, death, or noneconomic damages. 14 (14) The process for rescinding the contract, including 15 the date by which rescission of the contract by the public 16 adjuster or the insured must occur. The public adjuster 17 shall provide notice of the insureds rights under chapter 18 555A, and the insured may rescind the contract as provided in 19 chapter 555A. A contract shall not be construed to prevent an 20 insured from pursuing a civil remedy after the revocation or 21 cancellation period. If the insured rescinds the contract, 22 anything of value given by the insured shall be returned to the 23 insured within fifteen business days following receipt of the 24 cancellation notice by the public adjuster. 25 b. A contract provision shall not be redacted in a copy of 26 the contract submitted to the commissioner. Such redaction 27 shall constitute a violation of this chapter, and shall be 28 subject to penalties under sections 522C.13 and 522C.14. 29 2. If the insurer, no later than five calendar days 30 after the date on which the insureds loss is reported to 31 the insurer, either pays or commits in writing to pay to the 32 insured the policy limit of the insureds insurance policy, the 33 public adjuster shall: 34 a. Inform the insured that the total amount of loss claimed 35 -34- LSB 1094HW (1) 91 nls/ko 34/ 103 |
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| 70 | 70 | | |
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| 71 | 71 | | H.F. 1012 by the insured may not be agreed to by the insurer. 1 b. Only be entitled to reasonable compensation from the 2 insured for services provided on behalf of the insured based on 3 the time spent on the claim, and the expenses incurred by the 4 public adjuster, until the date the insurer pays the claim or 5 provides the insured with a written commitment that the insurer 6 will pay the claim. 7 3. A public adjuster contract shall not contain a provision 8 that does any of the following: 9 a. Allows the public adjusters percentage of a settlement 10 to be collected if money is still due from an insurer, or that 11 allows the public adjuster to collect the entire percentage 12 of a settlement from any single payment issued by an insurer 13 rather than as a percentage of each payment issued by the 14 insurer. 15 b. Requires or permits the insured to authorize an insurer 16 to issue a check only in the name of the public adjuster. 17 c. Imposes collection costs or late fees. 18 d. Allows the public adjusters compensation to be increased 19 based on the fact that a claim is litigated. 20 e. Precludes either an insured or the public adjuster from 21 pursuing civil remedies. 22 f. Restricts an insureds right to initiate or maintain 23 direct communication with the insureds attorney or insurer, 24 with the insurers adjuster or attorney, or any other person 25 regarding settlement of the insureds claim. 26 g. Grants the public adjuster power of attorney or limited 27 power of attorney of the insured. 28 h. Requires the insured to use a particular business entity 29 or individual for the reconstruction, repair, or restoration of 30 the insureds damaged property. 31 4. Prior to execution of the contract, the public adjuster 32 shall review the terms of the contract with the insured 33 and provide the insured with a separate disclosure document 34 regarding the claim process that shall include the following: 35 -35- LSB 1094HW (1) 91 nls/ko 35/ 103 |
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| 72 | 72 | | |
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| 73 | 73 | | H.F. 1012 DISCLOSURE DOCUMENT 1 REGARDING THE CLAIM PROCESS 2 1. PROPERTY INSURANCE POLICIES OBLIGATE THE INSURED TO 3 PRESENT A CLAIM TO THE INSUREDS INSURER FOR CONSIDERATION. 4 THERE ARE THREE TYPES OF ADJUSTERS THAT MAY BE INVOLVED IN THAT 5 PROCESS. THE THREE TYPES ARE AS FOLLOWS: 6 (A) STAFF ADJUSTER IS DEFINED IN IOWA CODE SECTION 522C.2. 7 A STAFF ADJUSTER IS EMPLOYED BY THE INSURER. THEY WILL NOT 8 CHARGE THE INSURED A FEE. 9 (B) INDEPENDENT ADJUSTER IS DEFINED IN IOWA CODE SECTION 10 522C.2. AN INDEPENDENT ADJUSTER IS CONTRACTED BY THE INSURER 11 TO REPRESENT THE INSURER. THEY WILL NOT CHARGE THE INSURED A 12 FEE. 13 (C) PUBLIC ADJUSTER IS DEFINED IN IOWA CODE SECTION 14 522C.2. A PUBLIC ADJUSTER IS NOT AN EMPLOYEE OR REPRESENTATIVE 15 OF THE INSURER. THEY ARE HIRED BY THE INSURED TO ASSIST IN THE 16 PREPARATION, PRESENTATION, AND SETTLEMENT OF A CLAIM. 17 2. THE INSURED IS NOT REQUIRED TO HIRE A PUBLIC ADJUSTER 18 TO HELP THE INSURED MEET THE INSUREDS OBLIGATIONS UNDER THE 19 INSUREDS POLICY, BUT HAS THE RIGHT TO DO SO. 20 3. THE INSURED HAS THE RIGHT TO INITIATE DIRECT 21 COMMUNICATIONS WITH THE INSUREDS ATTORNEY, THE INSUREDS 22 INSURANCE COMPANY, THE INSURANCE COMPANYS STAFF ADJUSTER OR 23 INDEPENDENT ADJUSTER, THE INSURANCE COMPANYS ATTORNEY, OR ANY 24 OTHER PERSON REGARDING THE SETTLEMENT OF THE INSUREDS CLAIM. 25 4. THE INSURED MAY BE RESPONSIBLE FOR ANY AMOUNT PAYABLE TO 26 A PUBLIC ADJUSTER RELATED TO ANY PORTION OF A CLAIM THAT WAS 27 PREVIOUSLY PAID IN PART, IN FULL, OR SETTLED BY THE INSURER 28 PRIOR TO A CONTRACT BEING ENTERED INTO BETWEEN THE PUBLIC 29 ADJUSTER AND THE INSURED. 30 5. THE AMOUNT PAYABLE TO A PUBLIC ADJUSTER, WHICH CAN 31 INCLUDE A SALARY, FEE, COMMISSION, OR OTHER CONSIDERATION AS 32 OUTLINED IN THE CONTRACT, IS THE OBLIGATION OF THE INSURED, NOT 33 THE INSURER. 34 6. THE INSURED MAY FILE A COMPLAINT WITH THE IOWA INSURANCE 35 -36- LSB 1094HW (1) 91 nls/ko 36/ 103 |
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| 74 | 74 | | |
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| 75 | 75 | | H.F. 1012 DIVISION BY CALLING (877) 955-1212 OR VISITING IID.IOWA.GOV. 1 5. An original copy of a completed contract shall be 2 provided to the public adjuster and to the insured. The 3 commissioner may inspect the original contract in possession of 4 the public adjuster at any time without prior notice. 5 6. Within seventy-two hours of executing a contract with an 6 insured under this section, the public adjuster shall provide 7 the insureds insurer a notification letter, which has been 8 signed by the insured, authorizing the public adjuster to 9 represent the insureds interest. The insurer shall verify 10 that the public adjuster is currently licensed with the 11 division. 12 7. A contract between a public adjuster and an insured 13 executed on a form in violation of subsection 1, paragraph a , 14 shall not be enforceable in this state. 15 Sec. 46. NEW SECTION . 522C.11 Adjusters standards of 16 conduct. 17 1. A public adjuster shall serve with objectivity and 18 complete loyalty to the interest of the insured. A public 19 adjuster shall render to the insured in good faith information, 20 counsel, and service, that in the opinion of the public 21 adjuster will best serve the insureds insurance claim needs 22 and interest. These duties extend to the claims process and 23 include providing timely responses to both the insurer and the 24 insured. 25 2. For a minimum of seventy-two hours following a 26 catastrophic disaster, to allow time for the commissioner 27 to safely deploy consumer protection resources, a public 28 adjuster shall not, in person or by telephone, directly offer 29 to contract, attempt to offer to contract, or enter into an 30 adjuster contract with an insured unless the offer to contract, 31 the attempt to offer to contract, or entering into a contract 32 is initiated by a consumer. If the commissioner deems the 33 severity of the catastrophic disaster to have placed people 34 under duress, the commissioner shall immediately dispatch the 35 -37- LSB 1094HW (1) 91 nls/ko 37/ 103 |
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| 76 | 76 | | |
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| 77 | 77 | | H.F. 1012 consumer advocate and other personnel to the disaster area to 1 provide consumer guidance. If, after a public hearing, the 2 commissioner determines that, due to the scope and severity 3 of the catastrophic disaster, additional time is necessary to 4 safely deploy additional consumer protection resources, the 5 commissioner may extend the time period that a public adjuster 6 shall not offer to contract, attempt to offer to contract, or 7 enter into a contract for an additional seventy-two hours. 8 3. A public adjuster shall not solicit between the hours 9 of 8:00 p.m. and 9:00 a.m. Solicitation shall include but is 10 not limited to a door-to-door sale as that term is defined in 11 section 555A.1. 12 4. A public adjuster, or an independent adjuster, shall not 13 permit an unlicensed employee or representative of the public 14 adjuster or independent adjuster, nor any person associated 15 with a claim, to conduct business for which a license is 16 required under this chapter. 17 5. An adjuster shall not have a direct or indirect financial 18 interest in any aspect of a claim other than the amount payable 19 pursuant to the written contract with an insured under section 20 522C.10. 21 6. An adjuster shall not acquire any interest in salvage of 22 property. 23 7. An adjuster shall not undertake the adjustment of any 24 claim if the adjuster is not competent and knowledgeable as 25 to the terms and conditions of the insurance coverage, or if 26 the loss or coverage otherwise exceeds the adjusters current 27 expertise. 28 8. An independent adjuster or public adjuster shall 29 maintain all documentation relating to all estimates and 30 coverage determinations for a minimum of five years from the 31 date of completion of a settlement. 32 9. An adjuster shall not knowingly make any false oral or 33 written material statements regarding any person engaged in the 34 business of insurance, or any other adjuster, to an insured who 35 -38- LSB 1094HW (1) 91 nls/ko 38/ 103 |
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| 78 | 78 | | |
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| 79 | 79 | | H.F. 1012 is a client or potential client. 1 10. a. An adjuster shall not reasonably act, or fail to 2 act, in any manner that obstructs or prevents an insurer or 3 adjuster from timely conducting an inspection of any part of 4 an insureds property for which there is a claim for loss or 5 damage. 6 b. If a public adjuster is unavailable after reasonable 7 request by an insurer, resulting in delay of the insurers 8 timely inspection of the property, the insured shall allow 9 the insurer to have access to the property without the 10 participation or presence of the public adjuster to facilitate 11 the insurers prompt inspection of the loss or damage. 12 11. An adjuster shall respond to an inquiry from an insurer 13 or an insured regarding a claim within fifteen business days 14 of the date of the inquiry unless good cause exists for delay. 15 The adjuster shall reply within fifteen business days to all 16 pertinent communications from the insured, the insurer, or a 17 representative of the insured or the insurer that reasonably 18 suggest that a response is expected. 19 12. Upon receiving notification of a claim, an insurer shall 20 provide necessary claim forms, instructions, and reasonable 21 assistance within fifteen business days of notification of the 22 claim so that first-party claimants can comply with the policy 23 conditions and the insurers reasonable requirements. 24 13. An adjuster shall not act as an appraiser and as an 25 adjuster on the same claim. 26 14. An adjuster shall not act as an umpire and as an 27 adjuster on the same claim. 28 15. A public adjuster shall not enter into a contract or 29 accept a power of attorney or limited power of attorney for an 30 insured. 31 16. a. An independent adjuster shall not act as an 32 independent adjuster and a public adjuster on the same claim. 33 b. A public adjuster shall not act as a public adjuster and 34 an independent adjuster on the same claim. 35 -39- LSB 1094HW (1) 91 nls/ko 39/ 103 |
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| 80 | 80 | | |
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| 81 | 81 | | H.F. 1012 17. A staff adjuster may be licensed as a public adjuster 1 or as an independent adjuster, but shall be prohibited from 2 providing services as an independent adjuster or a public 3 adjuster while employed as a staff adjuster. 4 18. A public adjuster shall not agree to, or reject, any 5 loss settlement without the insureds express knowledge and 6 written consent. 7 19. An adjuster shall not engage in any act or practice 8 that is a conflict of interest. A conflict of interest shall 9 include but is not limited to the following: 10 a. A direct or indirect financial interest with a person 11 responsible for the reconstruction, repair, or restoration of 12 damaged property that is the subject of a claim, or with a 13 person involved in resolving a claim valuation dispute. 14 b. A direct or indirect financial interest, or other 15 valuable consideration regardless of form or amount paid to an 16 adjuster in exchange for referring an insured to an appraiser, 17 umpire, construction company, contractor, salvage company, or 18 attorney. 19 c. Being an owner, employee, agent, investor, or having 20 other financial interest in a business entity responsible for 21 the reconstruction, repair, or restoration of damaged property 22 that is the subject of a claim, or having an immediate family 23 member who is an owner, employee, agent, or investor in a 24 business entity responsible for the reconstruction, repair, 25 or restoration of a damaged property that is the subject of a 26 claim. 27 d. Entering into a written or verbal contract, or formal 28 or informal agreement, with any person that compromises the 29 adjusters duty of loyalty to the insured. 30 e. Using claim information obtained in the course of a claim 31 investigation for commercial purposes including marketing or 32 advertising for the benefit of the adjuster. 33 20. A public adjuster shall not file a complaint with 34 the division on behalf of an insured without the insureds 35 -40- LSB 1094HW (1) 91 nls/ko 40/ 103 |
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| 82 | 82 | | |
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| 83 | 83 | | H.F. 1012 knowledge and written consent. 1 21. An adjuster shall not represent, directly or 2 indirectly, that damage has occurred at a property unless the 3 adjuster has inspected the damaged areas of the property. 4 22. An adjuster shall produce a detailed written estimate to 5 repair or replace covered damages and provide a copy to both 6 the insured and the insurer in a timely manner. 7 23. A public adjuster shall not offer to pay an insureds 8 deductible, or claim that the insureds deductible will be 9 waived, as an inducement to use the services of the public 10 adjuster. 11 24. An adjuster shall respond reasonably promptly to 12 inquiries by the division. 13 25. A public adjuster shall provide a detailed invoice for 14 completed services to an insured prior to requesting payment 15 for services pursuant to a contract under section 522C.10. 16 26. Funds received or held by a public adjuster on behalf of 17 an insured toward the settlement of a claim shall be: 18 a. Held in a fiduciary capacity. 19 b. Deposited by the adjuster into one or more separate 20 noninterest-bearing fiduciary trust accounts in a financial 21 institution licensed to do business in this state no later 22 than the close of the second business day from the date the 23 public adjuster received the funds, and either deposited in the 24 insureds name or in the name of the public adjuster as trustee 25 for the insured, to be held and administered as a trust account 26 for the benefit and protection of the insured. 27 c. Held separately from personal or nonbusiness funds. 28 d. Held separately from other business funds. 29 e. Listed specifically and separately, by the insureds name 30 and the amount in trust in the book of accounts and records of 31 the public adjuster. The book of accounts and records must 32 indicate the fiduciary nature of the account and any amounts 33 deposited or withdrawn. 34 f. Disbursed within thirty calendar days of receipt of an 35 -41- LSB 1094HW (1) 91 nls/ko 41/ 103 |
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| 84 | 84 | | |
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| 85 | 85 | | H.F. 1012 invoice by the public adjuster from a contractor that completed 1 work, if the public adjuster receives approval of the insured 2 that the work was satisfactorily completed. 3 27. A public adjuster shall comply with all applicable local 4 ordinances. 5 28. An adjuster who fails to comply with this section shall 6 be subject to penalties under sections 522C.13 and 522C.14. 7 Sec. 47. NEW SECTION . 522C.12 Adjusters records. 8 1. An adjuster shall have a continuing duty to keep, at 9 the adjusters place of business, usual and customary records 10 pertaining to transactions undertaken by the adjuster. All 11 such records shall be kept available and open for inspection 12 by the division at any time during regular business hours; 13 however, the division is not entitled to inspect any records 14 prepared in anticipation of litigation or that are subject to 15 any privilege recognized in chapter 622. The records shall be 16 maintained for a minimum of five years from the date of the 17 adjuster transaction. 18 2. An adjuster who fails to comply with this section shall 19 be subject to penalties under sections 522C.13 and 522C.14. 20 Sec. 48. NEW SECTION . 522C.13 License denial, nonrenewal, 21 suspension, or revocation. 22 1. The division may place on probation, suspend, revoke, or 23 refuse to issue or renew an adjusters license, and may levy a 24 civil penalty as provided in section 522C.14, for one or more 25 of the following causes: 26 a. The adjuster provided incorrect, misleading, incomplete, 27 or materially untrue information in a license application. 28 b. The adjuster violated an insurance law, regulation, 29 subpoena, or order of the commissioner or of a commissioner of 30 another state. 31 c. The adjuster obtained or attempted to obtain a license 32 through misrepresentation or fraud. 33 d. The adjuster improperly withheld, misappropriated, or 34 converted money or property received in the course of doing 35 -42- LSB 1094HW (1) 91 nls/ko 42/ 103 |
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| 86 | 86 | | |
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| 87 | 87 | | H.F. 1012 business. 1 e. The adjuster was convicted of a felony. 2 f. The adjuster admitted to, or was found to have committed, 3 any unfair trade practice or fraud. 4 g. The adjuster used fraudulent, coercive, or dishonest 5 practices, or demonstrated incompetence, untrustworthiness, or 6 financial irresponsibility, or was a source of injury or loss 7 in the conduct of business in this state or elsewhere. 8 h. The adjuster had any professional license, or its 9 equivalent, denied, suspended, or revoked in this state or any 10 other state, province, district, or territory. 11 i. The adjuster forged anothers name to any document 12 related to the adjusters work as an adjuster. 13 j. The adjuster improperly used notes or any other reference 14 material to complete an examination for an adjuster license. 15 k. The adjuster knowingly negotiated as an adjuster with an 16 individual or business entity who is not, but is required to 17 be, licensed as an adjuster, appraiser, or umpire. 18 l. The adjuster failed to comply with an administrative or 19 court order imposing a child support obligation. 20 m. The adjuster failed to comply with an administrative 21 or court order related to repayment of loans to the college 22 student aid commission. 23 n. The adjuster failed to pay state income tax or to comply 24 with any administrative or court order directing payment of 25 state income tax. 26 o. The adjuster failed or refused to cooperate in 27 an investigation conducted by the commissioner or the 28 commissioners designee. 29 p. The adjuster intentionally misrepresented the terms of an 30 actual or proposed contract for services. 31 2. If the commissioner does not renew an adjusters license 32 or denies an application for a license, the commissioner shall 33 notify the adjuster or applicant and advise, in writing, of 34 the reason for the nonrenewal of the license or denial of 35 -43- LSB 1094HW (1) 91 nls/ko 43/ 103 |
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| 88 | 88 | | |
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| 89 | 89 | | H.F. 1012 the application for a license. The adjuster or applicant 1 may request a hearing on the nonrenewal or denial by filing 2 a written request for a hearing within thirty calendar days 3 from the date of notice of the nonrenewal or denial. A hearing 4 shall be conducted according to section 522C.15. 5 3. The license of a business entity may be suspended, 6 revoked, placed on probation, or refused if the commissioner 7 finds, after hearing, that an individual adjusters violation 8 was known or should have been known by a licensed partner, 9 officer, or manager of the business entity and the violation 10 was not reported to the commissioner and corrective action was 11 not taken. 12 4. The license of a nonresident adjuster shall be 13 immediately inactive if the nonresident adjuster is placed on 14 probation, suspended, revoked, refused, or denied licensure in 15 any other state. The nonresident adjuster shall have seven 16 calendar days to alert the commissioner that the nonresident 17 adjuster has been placed on probation, suspended, revoked, 18 refused, nonrenewed, or denied licensure in another state. 19 Failure to meet the reporting deadline shall be a violation of 20 this section. 21 5. In addition to, or in lieu of, denial, probation, 22 suspension, or revocation of a license under this section, an 23 adjuster, after hearing, may be subject to a civil penalty as 24 provided in section 522C.14. 25 6. The commissioner may enforce this chapter, may conduct 26 an investigation of any suspected violation of this chapter, 27 and may impose any penalty or remedy authorized by this chapter 28 against any person who is under investigation for, or charged 29 with, a violation of this chapter even if the persons license 30 has been surrendered or has lapsed by operation of law. 31 7. a. All complaint files, investigation files, 32 investigation reports, and other investigative information 33 in the possession of the commissioner or the commissioners 34 agents that relates to adjuster discipline shall be privileged 35 -44- LSB 1094HW (1) 91 nls/ko 44/ 103 |
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| 90 | 90 | | |
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| 91 | 91 | | H.F. 1012 and confidential, and shall not be subject to discovery, 1 subpoena, or other means of legal compulsion for release to a 2 person other than the adjuster, and shall not be admissible in 3 evidence in a judicial or administrative proceeding other than 4 a proceeding involving adjuster discipline. A final written 5 decision of the commissioner in a disciplinary proceeding shall 6 be a public record. 7 b. Investigative information in the possession of the 8 commissioner or the commissioners agents that relates to 9 adjuster discipline may be disclosed, at the commissioners 10 discretion. The commissioner may share documents, materials, 11 or other information, including confidential and privileged 12 documents and materials subject to this subsection, with other 13 state, federal, and international regulatory agencies, with 14 NAIC, its affiliates or subsidiaries, and with state, federal, 15 and international law enforcement authorities, provided 16 that the recipient agrees to maintain the confidentiality 17 and privileged status of the document, material, or other 18 information. 19 c. If the investigative information in the possession of the 20 commissioner or the commissioners agents indicates a crime has 21 been committed, the information shall be reported to the proper 22 law enforcement agency. 23 8. a. Pursuant to section 17A.19, subsection 6, upon an 24 appeal by the adjuster, the commissioner shall transmit the 25 entire record of the contested case to the reviewing court. 26 b. Notwithstanding section 17A.19, subsection 6, if a 27 waiver of privilege has been involuntary and evidence has been 28 received at a disciplinary hearing, the court shall issue 29 an order to withhold the identity of the individual whose 30 privilege was waived. 31 Sec. 49. NEW SECTION . 522C.14 Civil and criminal penalties. 32 1. a. Upon a determination by the commissioner after a 33 hearing conducted pursuant to chapter 17A that an adjuster has 34 violated a provision of this chapter, the commissioner shall 35 -45- LSB 1094HW (1) 91 nls/ko 45/ 103 |
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| 92 | 92 | | |
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| 93 | 93 | | H.F. 1012 reduce the findings of the hearing to writing and deliver a 1 copy of the findings to the adjuster. 2 b. Upon a determination by the commissioner that an adjuster 3 has engaged, is engaging, or is about to engage in any act or 4 practice constituting a violation of this chapter or a rule 5 adopted or order issued under this chapter, the commissioner 6 may take the following actions: 7 (1) Issue an order requiring the adjuster to cease and 8 desist from engaging in the conduct resulting in the violation. 9 (2) Assess a civil penalty against the adjuster of not more 10 than one thousand dollars for each violation of this chapter, 11 not to exceed an aggregate of ten thousand dollars. 12 (3) If the adjuster knew or reasonably should have known 13 the adjuster was in violation of this chapter, assess a 14 civil penalty of not more than five thousand dollars for each 15 violation of this chapter, not to exceed an aggregate penalty 16 of fifty thousand dollars in any one six-month period. 17 (4) (a) Issue a summary order, including a brief statement 18 of findings of fact, conclusions of law, and policy reasons for 19 the decision, and directing the adjuster to cease and desist 20 from engaging in the act or practice or to take affirmative 21 action as is necessary in the judgment of the commissioner to 22 comply with the requirements of this chapter. 23 (b) An adjuster may contest a summary order by filing, 24 within thirty calendar days from the date of the issuance of 25 the summary order, a written request for a contested case 26 proceeding and hearing as provided in chapter 17A and in 27 accordance with rules adopted by the commissioner. Section 28 17A.18A shall be inapplicable to a summary order issued under 29 this subsection. If a hearing is not requested within thirty 30 calendar days from the date of issuance of the summary order, 31 the summary order shall become final by operation of law. A 32 summary order shall remain effective from the date of issuance 33 until the date the order becomes final by operation of law, 34 or is modified or overturned by a presiding officer or court 35 -46- LSB 1094HW (1) 91 nls/ko 46/ 103 |
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| 94 | 94 | | |
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| 95 | 95 | | H.F. 1012 following a request for hearing. 1 (c) An adjuster violating a summary order issued under this 2 subsection shall be deemed in contempt of the summary order. 3 The commissioner may petition the district court to enforce the 4 order as certified by the commissioner. The district court 5 shall find the adjuster in contempt of the order if the court 6 finds, after conducting a hearing, that the adjuster is not 7 in compliance with the order. The court may assess a civil 8 penalty against the adjuster and may issue further orders as 9 the court deems appropriate. 10 c. In addition to any other penalty under this section, 11 if the commissioner finds that a violation of this chapter 12 was directed, encouraged, condoned, ignored, or ratified by 13 the employer of the adjuster, the commissioner shall assess a 14 penalty to the employer. Penalties under this paragraph may be 15 retained by the commissioner under section 505.7, subsection 9. 16 2. a. A person acting as an adjuster without proper 17 licensure, or an adjuster who willfully violates any provision 18 of this chapter or an order issued under this chapter, is 19 guilty of a class D felony. If the violation results in a 20 loss of more than ten thousand dollars, the person or adjuster 21 is guilty of a class C felony. 22 b. An adjuster who steals, converts, or misappropriates 23 funds that should be held in trust under section 522C.11, is 24 guilty of a class D felony. If the violation results in a 25 loss of more than ten thousand dollars, the adjuster is guilty 26 of a class C felony. 27 c. The commissioner may refer such evidence as is available 28 concerning a violation of this chapter, or of any rule adopted 29 or order issued under this chapter, or of the failure of a 30 person to comply with the licensing requirements of this 31 chapter, to the attorney general or the proper county attorney 32 who may institute the appropriate criminal proceedings under 33 this chapter. 34 d. This chapter does not limit the power of the state to 35 -47- LSB 1094HW (1) 91 nls/ko 47/ 103 |
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| 96 | 96 | | |
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| 97 | 97 | | H.F. 1012 punish any person for conduct that constitutes a crime under 1 any other statute. 2 3. Any contract regulated by this chapter that is entered 3 into by an insured with a person who is not a licensed public 4 adjuster in this state shall be void. If a contract is void, 5 the insured is not liable for the payment for any past services 6 rendered, or future services to be rendered, by that person. 7 Sec. 50. NEW SECTION . 522C.15 Reinstatement or reissuance 8 of a license after disciplinary matters forfeiture in lieu of 9 compliance. 10 1. a. A person licensed as an adjuster under this chapter 11 whose license has been revoked or suspended by order, or who 12 forfeited a license in connection with a disciplinary matter, 13 may apply to the commissioner for reinstatement or reissuance 14 in accordance with the terms of the order of revocation or 15 suspension, or the order accepting the forfeiture, and submit 16 to a criminal history check under section 522B.5A. 17 b. Proceedings for reinstatement or reissuance shall be 18 initiated by the applicant who shall file with the commissioner 19 an application for reinstatement or reissuance after 20 disciplinary action. An applicant shall not be eligible for 21 reinstatement or reissuance until the applicant satisfies the 22 requirements under section 522C.5, 522C.5A, 522C.5B, 522C.5C, 23 or 522C.5D, as applicable, and the examination requirements 24 under section 522C.8. An applicant may also be required to 25 submit a new or renewal adjuster application under section 26 522C.5A, 522C.5B, 522C.5C, or 522C.5D, as applicable. 27 c. An application for reinstatement or reissuance shall 28 allege facts which, if established, are sufficient to enable 29 the commissioner to determine that the basis of revocation, 30 suspension, or forfeiture of the applicants license no longer 31 exists, and must disclose if the applicant has engaged in 32 any conduct listed as a cause for licensing action that was 33 not included in the order for suspension, revocation, or 34 forfeiture. 35 -48- LSB 1094HW (1) 91 nls/ko 48/ 103 |
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| 98 | 98 | | |
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| 99 | 99 | | H.F. 1012 d. An application for reinstatement or reissuance shall 1 allege facts which, if established, are sufficient to enable 2 the commissioner to determine that it is in the public 3 interest for the application to be granted. The commissioner 4 may determine that it is not in the public interest if the 5 applicant has engaged in any conduct listed as a cause for 6 licensing action that was not included in the order for 7 suspension, revocation, or forfeiture, or if the applicant does 8 not have the character and fitness to be a licensed adjuster 9 in this state. 10 e. The burden of proof to establish facts identified in 11 paragraphs c and d shall be on the applicant. 12 f. An adjuster may request reinstatement of a suspended 13 license prior to the end of the suspension term. 14 g. Unless otherwise provided by law, if an order of 15 revocation or suspension did not establish terms on which 16 reinstatement or reissuance may occur, or if the license 17 was forfeited, an initial application for reinstatement or 18 reissuance shall not be made until at least one year from the 19 date of the order of the suspension, revocation, or acceptance 20 of the forfeiture of a license. 21 2. All proceedings on an application for reinstatement or 22 reissuance, including preliminary and ancillary matters, shall 23 be held in accordance with chapter 17A. The application shall 24 be docketed in the original case in which the original license 25 was suspended, revoked, or forfeited, if the case exists. 26 3. An order of reinstatement or reissuance shall be based 27 on a written decision which incorporates findings of fact 28 and conclusions of law. An order granting an application 29 for reinstatement or reissuance may impose such terms and 30 conditions as the commissioner or the commissioners designee 31 deems appropriate, and may include one or more penalties 32 provided under section 522C.14. The order shall be a public 33 record and may be disseminated in compliance with chapter 22. 34 4. If an adjusters ordered suspension period ends prior to 35 -49- LSB 1094HW (1) 91 nls/ko 49/ 103 |
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| 100 | 100 | | |
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| 101 | 101 | | H.F. 1012 the adjusters license expiration date and the adjuster applies 1 for reinstatement prior to the license expiration date and 2 meets all applicable requirements, the division shall reinstate 3 the license as soon as practicable but no earlier than the end 4 of the suspension period if the division, after a complete 5 review, determines the license should be reinstated. 6 5. If an adjusters license is suspended beyond the 7 adjusters license expiration date, whether due to an ordered 8 suspension time period or failure to apply for reinstatement 9 prior to expiration, the adjuster must apply for reissuance. 10 6. A submission of voluntary forfeiture of a license 11 shall be made in writing to the commissioner. Forfeiture of 12 a license is effective on the date of submission unless a 13 contested case proceeding is pending on the date of submission. 14 If a contested case proceeding is pending, the forfeiture 15 shall become effective upon conditions as ordered by the 16 commissioner. A forfeiture made during the pendency of a 17 contested case proceeding shall be considered a disciplinary 18 action and shall be published in the same manner as is 19 applicable to any other form of disciplinary order. 20 7. The commissioner shall not be prohibited from denying an 21 application for reinstatement or reissuance, or from bringing 22 an additional immediate action, if an adjuster has engaged in 23 an additional violation of chapter 507B or 522C, or otherwise 24 failed to meet all applicable requirements. 25 8. This section shall not apply to reinstatement of an 26 expired license or issuance of a new license that is not in 27 connection with a disciplinary matter. 28 Sec. 51. NEW SECTION . 522C.16 Suspension for failure to 29 pay child support or state debt. 30 1. The commissioner shall deny an adjusters application 31 for license issuance, renewal, reinstatement, or reissuance; 32 suspend a current license; or revoke a currently suspended 33 license, upon receipt of a certificate of noncompliance from 34 the child support recovery unit pursuant to chapter 252J, 35 -50- LSB 1094HW (1) 91 nls/ko 50/ 103 |
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| 102 | 102 | | |
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| 103 | 103 | | H.F. 1012 or upon receipt of a certificate of noncompliance from the 1 centralized collection unit of the department of revenue 2 pursuant to chapter 272D. 3 2. Upon receipt of a certificate of noncompliance under 4 subsection 1, the commissioner shall issue a notice to the 5 adjuster that the division will, unless the certificate of 6 noncompliance is withdrawn, deny the adjusters application 7 for license issuance, renewal, reinstatement, or reissuance, 8 suspend the adjusters current license, or revoke the 9 adjusters currently suspended license, thirty calendar days 10 after the date the notice is mailed. Notice shall be sent 11 to the adjusters last known address by restricted certified 12 mail, return receipt requested, or in accordance with the 13 divisions rules for service. The notice shall contain all of 14 the following: 15 a. A statement that the commissioner intends to deny 16 the adjusters application for license issuance, renewal, 17 reinstatement, or reissuance; suspend the adjusters current 18 license; or revoke the adjusters currently suspended license 19 in thirty calendar days unless the certificate of noncompliance 20 is withdrawn. 21 b. A statement that the adjuster must contact the agency 22 that issued the certificate of noncompliance to request a 23 withdrawal. 24 c. A statement that the adjuster does not have a right to 25 a hearing before the division, but that the adjuster may file 26 an application for a hearing in district court pursuant to 27 section 252J.9 or 272D.9, as applicable, and that the filing 28 of an application by the adjuster will stay the proceedings of 29 the division. 30 d. A copy of the certificate of noncompliance. 31 3. An adjuster shall keep the commissioner informed of all 32 actions taken by the district court or the issuing agency in 33 connection with a certificate of noncompliance. Within seven 34 calendar days of filing or issuance, an adjuster shall provide 35 -51- LSB 1094HW (1) 91 nls/ko 51/ 103 |
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| 104 | 104 | | |
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| 105 | 105 | | H.F. 1012 to the commissioner a copy of all applications filed with the 1 district court pursuant to an application or hearing, all 2 court orders entered in such action, and all withdrawals of a 3 certificate of noncompliance. 4 4. If an applicant or licensed adjuster timely files an 5 application for hearing in district court and the division 6 is notified of the filing, the commissioners denial, 7 suspension, or revocation proceedings shall be stayed until 8 the division is notified by the district court, the issuing 9 agency, the licensee, or the applicant of the resolution of 10 the application. Upon receipt of a court order lifting the 11 stay or otherwise directing the commissioner to proceed, the 12 commissioner shall continue with the intended action described 13 in the notice. 14 5. If the commissioner does not receive a withdrawal of 15 the certificate of noncompliance from the issuing agency, or a 16 notice from a clerk of court, the issuing agency, the licensee, 17 or the applicant that an application for hearing has been filed 18 within thirty calendar days after the notice is issued, the 19 commissioner shall deny the adjusters application for license 20 issuance, renewal, reinstatement, or reissuance; suspend a 21 current license; or revoke a currently suspended license. 22 6. Upon receipt of a withdrawal of a certificate of 23 noncompliance from the issuing agency, suspension or revocation 24 proceedings shall halt and the named adjuster shall be notified 25 that the proceedings have halted. If the adjusters license 26 has already been suspended, the adjuster must apply for 27 reinstatement in accordance with section 522C.15, and the 28 license shall be reinstated if the adjuster is otherwise in 29 compliance with this chapter. If the adjusters application 30 for licensure was stayed, application processing shall resume. 31 All fees required for license renewal, reinstatement, or 32 reissuance must be paid by the adjuster, and all continuing 33 education requirements shall be satisfied, before the 34 adjusters license is renewed or reinstated after a license 35 -52- LSB 1094HW (1) 91 nls/ko 52/ 103 |
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| 106 | 106 | | |
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| 107 | 107 | | H.F. 1012 suspension or revocation under this chapter. 1 7. The commissioner shall notify an adjuster in writing 2 through regular first class mail, or such other means as the 3 commissioner deems appropriate under the circumstances, within 4 ten calendar days of the effective date of the suspension or 5 revocation of the adjusters license, and shall also notify the 6 adjuster when the adjusters license is reinstated following 7 the commissioners receipt of a withdrawal of the certificate 8 of noncompliance. 9 8. Notwithstanding any provision of law to the contrary, the 10 division may share information with the child support recovery 11 unit or the centralized collection unit of the department of 12 revenue for the sole purpose of identifying adjusters subject 13 to enforcement under chapter 252J or 272D. 14 Sec. 52. NEW SECTION . 522C.17 Severability. 15 If any provision of this chapter or the application thereof 16 to any person or circumstance is held invalid, the invalidity 17 does not affect other provisions or applications of this 18 chapter which can be given effect without the invalid provision 19 or application, and to this end the provisions of this chapter 20 are severable. 21 DIVISION VI 22 LICENSING AND REGULATION OF APPRAISERS AND UMPIRES 23 Sec. 53. Section 522B.5A, subsection 2, paragraph c, Code 24 2025, is amended to read as follows: 25 c. A renewal, reinstatement, or reissuance of a license 26 if the license of a producer has been revoked or suspended 27 pursuant to section 522B.11 , the license of a public adjuster 28 has been revoked or suspended pursuant to section 522C.6 29 522C.13 , or the license of a viatical settlement provider 30 or viatical settlement broker has been revoked or suspended 31 pursuant to section 508E.4 , or the license of an appraiser or 32 an umpire has been revoked or suspended pursuant to section 33 522F.20 . 34 Sec. 54. Section 522B.5A, subsection 2, Code 2025, is 35 -53- LSB 1094HW (1) 91 nls/ko 53/ 103 |
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| 108 | 108 | | |
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| 109 | 109 | | H.F. 1012 amended by adding the following new paragraphs: 1 NEW PARAGRAPH . f. An initial license as an appraiser in 2 this state. 3 NEW PARAGRAPH . g. An initial license as an umpire in this 4 state. 5 Sec. 55. NEW SECTION . 522F.1 Definitions. 6 As used in this chapter, unless the context otherwise 7 requires: 8 1. Adjuster means a person licensed pursuant to chapter 9 522C. 10 2. Amount of loss means the monetary amount determined to 11 be necessary to properly repair or replace damage related to a 12 covered peril, and is limited to all applicable coverages for 13 covered items associated with the claim. 14 3. Appraiser means a person licensed as an appraiser 15 pursuant to section 522F.4. 16 4. Appraiser list means a list, maintained by the 17 division, of all appraisers licensed by the division. 18 5. Claimant means a person who makes a first-party claim 19 under a policy of property and casualty insurance. 20 6. Commissioner means the commissioner of insurance. 21 7. Disciplinary matter means an individual is the subject 22 of an investigation, complaint, pending administrative action, 23 or other such action in any state. 24 8. First-party claim means a claim filed by a named 25 insured under an insurance policy against which a claim is 26 made. 27 9. Good cause means a legally sufficient reason including 28 but not limited to any of the following: 29 a. A conflict of interest. 30 b. A lack of independence or an inability to competently or 31 promptly carry out the duties required under this chapter. 32 c. Any other reason that would reasonably be expected to 33 impair an appraisal. 34 10. Immediate family means an individuals parent, 35 -54- LSB 1094HW (1) 91 nls/ko 54/ 103 |
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| 110 | 110 | | |
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| 111 | 111 | | H.F. 1012 sibling, child, grandchild, spouse, spouses of the individuals 1 children, or parents of the individuals spouse. 2 11. Insured means a person covered under an insurance 3 policy against which a claim is made. 4 12. Insurer means a person engaged in the business of 5 insurance and regulated under chapter 507A, 508, 512B, 515, or 6 520. 7 13. NIPR gateway means the communication network developed 8 and operated by the national insurance producer registry that 9 links state insurance regulators with regulated entities to 10 facilitate the electronic exchange of adjuster information, 11 including but not limited to license applications, license 12 renewals, appointments, and terminations. 13 14. Party means an insurer or a claimant, including an 14 employee, contractor, and other representative of an insurer 15 or claimant. 16 15. Person means an individual or a business entity. 17 16. Reinstatement means the reinstatement of a suspended 18 license which was suspended in connection with a disciplinary 19 matter, and that has not expired or been terminated during the 20 suspension period. 21 17. Reissuance means the issuance of a new license 22 following the revocation of a license, the suspension and 23 subsequent termination of a license, or the forfeiture of a 24 license in connection with a disciplinary matter. 25 18. Umpire means a person licensed as an umpire pursuant 26 to section 522F.9. 27 19. Umpire list means a list, maintained by the division, 28 of all umpires licensed by the division. 29 Sec. 56. NEW SECTION . 522F.2 Rules. 30 The commissioner may adopt rules pursuant to chapter 17A to 31 administer this chapter. 32 Sec. 57. NEW SECTION . 522F.3 Appraisers license 33 eligibility. 34 1. A person shall not act as, or represent that the person 35 -55- LSB 1094HW (1) 91 nls/ko 55/ 103 |
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| 112 | 112 | | |
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| 113 | 113 | | H.F. 1012 is, an appraiser in this state unless the person is licensed 1 under this chapter. A person that acts as an appraiser in this 2 state solely for a crop hail or multiperil crop insurance claim 3 shall not be subject to this chapter. 4 2. A person applying for an appraiser license shall submit 5 an application on a uniform individual application or a uniform 6 business entity application in the form and manner prescribed 7 by the commissioner. 8 3. To be eligible for licensure under this chapter, a person 9 shall meet all of the following criteria: 10 a. Have experience or training in building construction, 11 repair, or estimating property damage. 12 b. Unless waived by the commissioner based on the persons 13 other professional qualifications, have a minimum of three 14 years experience as any of the following: 15 (1) A professional engineer licensed under chapter 542B or 16 similarly licensed in another state. 17 (2) An architect licensed under chapter 544A or similarly 18 licensed in another state. 19 (3) An adjuster licensed under chapter 522C or similarly 20 licensed in another state. 21 (4) A residential contractor as defined in section 103A.71. 22 (5) A contractor registered under chapter 91C or similarly 23 registered in another state. 24 c. Pass a written examination as prescribed by the division. 25 The examination shall test the knowledge of a person concerning 26 the appraisal process, the duties and responsibilities of an 27 appraiser, and the insurance laws and rules of this state. 28 Examination results shall be valid for ninety calendar days 29 from the date of examination. 30 d. Have the requisite character and competence, as 31 determined by the division. 32 4. To determine an applicants eligibility for licensure, 33 the commissioner may require a criminal history check pursuant 34 to section 522B.5A. 35 -56- LSB 1094HW (1) 91 nls/ko 56/ 103 |
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| 114 | 114 | | |
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| 115 | 115 | | H.F. 1012 Sec. 58. NEW SECTION . 522F.4 Appraisers licensure, 1 license renewal, and fees. 2 1. A person who meets the requirements under section 522F.3, 3 unless otherwise denied licensure pursuant to section 522F.20, 4 shall be issued an appraiser license that is valid for two 5 years from the date of issue. 6 2. Any applicable fee for a criminal history check pursuant 7 to section 522B.5A. 8 3. The fee for an initial appraiser license, or renewal of 9 an appraiser license, shall be fifty dollars for a two-year 10 license. 11 4. The fee for reinstatement of an expired appraiser license 12 shall be one hundred dollars. 13 5. The fee for a reinstatement or reissuance of an appraiser 14 license suspended or revoked due to a disciplinary action shall 15 be one hundred dollars. 16 6. An appraisers license shall contain the licensees 17 name, business address, appraisal license number, the date of 18 issuance, the expiration date, and any other information the 19 division deems necessary. 20 7. An appraiser licensed under this chapter shall be 21 required to complete continuing education requirements, as 22 prescribed by the division, to be eligible for license renewal 23 or reinstatement. 24 8. An appraiser licensed under this chapter shall inform 25 the division, in the manner and form specified by the division, 26 of a change of legal name or business address within thirty 27 calendar days of the change. Failure to timely inform the 28 division may result in a penalty as specified in section 29 522F.20. 30 9. The division shall publish an appraiser list on the 31 divisions internet site in a manner readily available to the 32 public. The appraiser list shall include all of the following 33 information for each licensed appraiser: 34 a. The business telephone number, business mailing address, 35 -57- LSB 1094HW (1) 91 nls/ko 57/ 103 |
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| 116 | 116 | | |
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| 117 | 117 | | H.F. 1012 business email address, and the county and state of residence 1 of the appraiser as provided to the division by the appraiser 2 for licensure. 3 b. The appraisers area of training or expertise. 4 c. The date of the appraisers initial licensure and the 5 date the license expires. 6 10. Prior to approving a business entitys application for 7 a license as an appraiser, the commissioner shall find that the 8 business entity has designated an individual appraiser licensed 9 in this state to be responsible for the business entitys 10 compliance with the insurance laws and rules of this state. 11 Sec. 59. NEW SECTION . 522F.5 Appraiser license 12 reinstatement not related to disciplinary action. 13 1. An appraiser may apply for reinstatement of an expired 14 license up to one year after the license expiration date 15 by submitting a request through the NIPR gateway, paying a 16 reinstatement fee and a license renewal fee, and submitting 17 evidence to the division that the appraiser met the continuing 18 education requirements under section 522F.4. An appraiser who 19 fails to apply for license reinstatement within one year of the 20 date of expiration of the appraisers license must apply for 21 a new license. 22 2. An appraiser who surrendered a license, not in connection 23 with a disciplinary matter, and stated an intent to exit the 24 appraiser business may file a request with the division to 25 reactivate the appraiser license. The request must be received 26 by the division within ninety calendar days of the date the 27 appraisers license was placed on inactive status. The request 28 shall be granted if the former appraiser is otherwise eligible 29 to receive an appraiser license. If the appraisers request to 30 reactivate the license is not received within ninety calendar 31 days of the date the appraisers license was placed on inactive 32 status, the appraiser must apply for a new license. 33 3. An appraiser whose license is suspended, revoked, 34 or forfeited in connection with a disciplinary matter, or 35 -58- LSB 1094HW (1) 91 nls/ko 58/ 103 |
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| 118 | 118 | | |
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| 119 | 119 | | H.F. 1012 forfeited in lieu of compliance, shall not be eligible for 1 reinstatement under this section and must follow the procedures 2 in section 522F.22. 3 Sec. 60. NEW SECTION . 522F.6 Appraisers payment. 4 1. Each party to an appraisal shall be responsible for the 5 following: 6 a. The partys own appraisers fees and expenses. 7 b. An equal share of all reasonable and necessary fees and 8 expenses incurred by an umpire, if necessary. 9 c. An equal share of all reasonable and necessary costs 10 incurred in the course of conducting the appraisal. 11 2. a. An appraiser shall not charge any party on a basis 12 dependent on the outcome of the written itemized award, or 13 charge in a manner that relies on a barter arrangement, gift, 14 favor, or in-kind exchange. 15 b. Prior to the conclusion of an appraisal process via 16 final settlement or issuance of a written itemized award by 17 an umpire, an appraiser shall not require, demand, or accept 18 any fee, retainer, compensation, deposit, or other type 19 of consideration, unless the loss is being handled by the 20 appraiser on a time-plus-expense basis. 21 3. An appraiser shall not charge, and is not entitled to, 22 a fee, compensation, deposit, or other type of consideration 23 if the appraiser abandons the appraisal prior to the umpire 24 issuing a written itemized award. 25 Sec. 61. NEW SECTION . 522F.7 Appraisers standards of 26 conduct. 27 1. An appraiser shall act with due diligence, including but 28 not limited to demonstrating accuracy, fairness, and timeliness 29 throughout an appraisal process. 30 2. a. (1) No later than five business days after being 31 hired by a party to an appraisal and before beginning work as 32 an appraiser, an appraiser shall disclose to all parties to the 33 appraisal any potential conflict of interest. 34 (2) An appraiser shall not engage in any act or practice 35 -59- LSB 1094HW (1) 91 nls/ko 59/ 103 |
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| 120 | 120 | | |
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| 121 | 121 | | H.F. 1012 that is a conflict of interest during the appraisal. 1 (3) If a conflict of interest arises after the start of the 2 appraisal process, an appraiser shall disclose the conflict of 3 interest to the parties and shall withdraw from the appraisal 4 process no more than five business days after the conflict of 5 interest arose. 6 b. A conflict of interest shall include but is not limited 7 to all of the following: 8 (1) An appraiser is a party to a lawsuit against any party 9 to an appraisal. 10 (2) An appraiser is a party to, or a member or employee 11 of a law firm that represents a party to, a current lawsuit 12 involving an insurer that is a party to the appraisal. 13 (3) An appraiser has personally investigated, prosecuted, 14 or advocated in connection with the appraisal. 15 (4) An appraiser has acted as counsel to any party to 16 an appraisal within the two years immediately preceding the 17 appraisal. 18 (5) An appraiser has a personal financial interest in the 19 outcome of the appraisal or any other significant interest 20 that could be substantially affected by the outcome of the 21 appraisal. 22 (6) A member of an appraisers immediate family is any of 23 the following: 24 (a) A party to the appraisal, or an officer, director, or 25 trustee of a party. 26 (b) A current employee of an appraiser or an adjuster to the 27 appraisal. 28 (c) A business entity licensed as an adjuster that adjusted 29 the loss at issue in the appraisal. 30 (d) Known to have an interest that could be substantially 31 affected by the outcome of the appraisal. 32 (e) An immediate family member that has a legally sufficient 33 reason that requires the appraiser to withdraw from the 34 appraisal. 35 -60- LSB 1094HW (1) 91 nls/ko 60/ 103 |
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| 122 | 122 | | |
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| 123 | 123 | | H.F. 1012 3. An appraiser shall postpone an appraisal for a reasonable 1 amount of time if any party demonstrates reasonable cause for 2 a postponement. The appraiser shall notify all parties if 3 the appraisal process is postponed. An appraisers failure 4 to timely notify all parties may result in a penalty under 5 sections 522F.20 and 522F.21. 6 4. In the course of an appraisal, an appraiser shall 7 consider all information provided by the parties and any 8 other reasonably available evidence that is material to the 9 appraisal. 10 5. In the course of an appraisal, an appraiser shall 11 carefully decide all issues submitted for determination of the 12 amount of loss and actual cash value. 13 6. In the course of an appraisal, an appraiser shall provide 14 all parties a fair and reasonable itemized written appraisal 15 detailing the amount of loss and actual cash value. 16 7. In the course of an appraisal, an appraiser shall ensure 17 the appraisers party is reasonably informed of all updates 18 throughout the appraisal process. 19 8. An appraiser shall not permit outside influence to affect 20 an appraisal. 21 9. An appraiser shall not allow a person other than the 22 umpire for the appraisal to determine differences between the 23 actual cash value and the amount of loss of each item on the 24 appraisal. 25 10. a. An appraiser shall not communicate directly or 26 indirectly with any of the following: 27 (1) An opposing party or representative of the opposing 28 party other than the opposing partys appraiser. 29 (2) The umpire, unless reasonable notice and opportunity 30 to participate in the communication is provided to an opposing 31 appraiser. 32 b. Notwithstanding paragraph a , an appraiser may 33 communicate with an opposing party or an umpire in order to do 34 any of the following: 35 -61- LSB 1094HW (1) 91 nls/ko 61/ 103 |
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| 124 | 124 | | |
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| 125 | 125 | | H.F. 1012 (1) Identify the partys counsel or experts. 1 (2) Discuss logistical matters, including the time and 2 place of a meeting or to make arrangements for the conduct 3 of the appraisal. The appraiser initiating contact with the 4 umpire shall promptly inform an opposing appraiser. 5 (3) If an opposing appraiser fails to participate in a 6 meeting or conference call after receiving reasonable notice 7 and opportunity to participate, or if all parties agree 8 in writing in advance of a meeting or conference call, an 9 appraiser may discuss a claim with the umpire. 10 11. An appraiser shall not act as, or have ever acted as, an 11 adjuster or umpire on the same claim. 12 12. An appraiser shall not withdraw or abandon an appraisal 13 unless compelled by unforeseen circumstances that would render 14 it impossible or impracticable for the appraiser to continue. 15 Sec. 62. NEW SECTION . 522F.8 Umpire license eligibility. 16 1. An individual shall not act as, or represent that the 17 individual is, an umpire in this state unless the individual 18 is licensed under this chapter. An individual that acts as an 19 umpire in this state solely for a crop hail or multiperil crop 20 insurance claim shall not be subject to this chapter. 21 2. An individual applying for an umpire license shall submit 22 an application on a uniform individual application in the form 23 and manner prescribed by the commissioner. 24 3. To be eligible for licensure under this chapter, an 25 individual shall meet all of the following criteria: 26 a. Unless waived by the commissioner based on the 27 individuals other professional qualifications, have a minimum 28 of three years experience as any of the following: 29 (1) A professional engineer licensed under chapter 542B or 30 similarly licensed in another state. 31 (2) An architect licensed under chapter 544A or similarly 32 licensed in another state. 33 (3) An adjuster licensed under chapter 522C or similarly 34 licensed in another state. 35 -62- LSB 1094HW (1) 91 nls/ko 62/ 103 |
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| 126 | 126 | | |
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| 127 | 127 | | H.F. 1012 (4) An appraiser licensed under this chapter or similarly 1 licensed in another state. 2 (5) An attorney licensed in this state, or another state, 3 with experience in first-party property damage litigation. 4 (6) An insurance regulator. 5 b. Pass a written examination as prescribed by the 6 division. The examination shall test the knowledge of the 7 individual concerning the appraisal process, the duties and 8 responsibilities of an umpire, and the insurance laws and rules 9 of this state. Examination results shall be valid for ninety 10 calendar days from the date of examination. 11 c. Have the requisite character and competence, as 12 determined by the division. 13 4. To determine an applicants eligibility for licensure, 14 the commissioner may require a criminal history check pursuant 15 to section 522B.5A. 16 Sec. 63. NEW SECTION . 522F.9 Umpires licensure, license 17 renewal, and fees. 18 1. An individual who meets the requirements of section 19 522F.8, unless otherwise denied licensure pursuant to section 20 522F.20, shall be issued an umpire license that is valid for 21 two years from the date of issue. 22 2. Any applicable fee for a criminal history check pursuant 23 to section 522B.5A. 24 3. The fee for an initial umpire license, or renewal of an 25 umpire license, shall be fifty dollars for a two-year license. 26 4. The fee for reinstatement of an expired umpire license 27 shall be one hundred dollars. 28 5. The fee for a reinstatement or reissuance of an umpire 29 license suspended or revoked due to a disciplinary action shall 30 be one hundred dollars. 31 6. An umpires license shall contain the licensees name, 32 business address, umpire license number, the date of issuance, 33 the expiration date, and any other information the division 34 deems necessary. 35 -63- LSB 1094HW (1) 91 nls/ko 63/ 103 |
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| 128 | 128 | | |
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| 129 | 129 | | H.F. 1012 7. An umpire licensed under this chapter shall be required 1 to complete continuing education requirements, as prescribed 2 by the division to be eligible for license renewal or 3 reinstatement. 4 8. An umpire licensed under this chapter shall inform the 5 division, in the manner and form specified by the division, 6 of a change of legal name or business address within thirty 7 calendar days of the change. Failure to timely inform the 8 division may result in a penalty as specified in sections 9 522F.20 and 522F.21. 10 9. The division shall publish an umpire list on the 11 divisions internet site in a manner that is readily available 12 to the public. The umpire list shall include all of the 13 following information for each licensed umpire: 14 a. The business telephone number, business mailing address, 15 business email address, and the county and state of residence 16 of the umpire as provided to the division by the umpire for 17 licensure. 18 b. The umpires area of training and expertise. 19 c. The date of the umpires initial licensure and the date 20 the license expires. 21 Sec. 64. NEW SECTION . 522F.10 Umpire license reinstatement 22 not related to disciplinary action. 23 1. An umpire may apply for reinstatement of an expired 24 license up to one year after the license expiration date 25 by submitting a request through the NIPR gateway, paying a 26 reinstatement fee, and submitting evidence to the division that 27 the umpire met the continuing education requirements under 28 section 522F.9. An umpire who fails to apply for license 29 reinstatement within one year of the date of expiration of the 30 umpires license must apply for a new license. 31 2. An umpire who surrendered a license, not in connection 32 with a disciplinary matter, and stated an intent to exit the 33 umpire business, may file a request with the division to 34 reactivate the umpire license. The request must be received 35 -64- LSB 1094HW (1) 91 nls/ko 64/ 103 |
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| 130 | 130 | | |
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| 131 | 131 | | H.F. 1012 by the division within ninety calendar days of the date the 1 umpires license was placed on inactive status. The request 2 shall be granted if the former umpire is otherwise eligible 3 to receive an umpire license. If the umpires request to 4 reactivate the umpires license is not received within ninety 5 calendar days of the date the license was placed on inactive 6 status, the umpire must apply for a new license. 7 3. An umpire whose license is suspended, revoked, or 8 forfeited in connection with a disciplinary matter, or 9 forfeited in lieu of compliance, shall not be eligible for 10 reinstatement under this section and must follow the procedures 11 in section 522F.22. 12 Sec. 65. NEW SECTION . 522F.11 Umpires payment. 13 1. In addition to the costs each party is responsible 14 for under section 522F.6, each party to an appraisal that 15 requires an umpire shall be responsible for an equal share of 16 all reasonable and necessary fees and expenses incurred by the 17 umpire. 18 2. If the parties settle before the appraisers direct the 19 umpire to begin work, the umpire shall not charge a fee. 20 3. An umpire shall not charge any party on a basis dependent 21 on the outcome of the written itemized award, or charge in a 22 manner that relies on a barter arrangement, gift, favor, or 23 in-kind exchange. 24 4. Prior to the conclusion of an appraisal process via 25 final settlement, or issuance of a written itemized award by 26 an umpire, an umpire shall not require, demand, or accept 27 any fee, retainer, compensation, deposit, or other type of 28 consideration, unless the loss is being handled by the umpire 29 on a time-plus-expense basis. 30 5. An umpire shall not charge, and is not entitled to, a 31 fee, compensation, deposit, or other type of consideration if 32 the umpire abandons the appraisal prior to the umpire issuing a 33 written itemized award. 34 Sec. 66. NEW SECTION . 522F.12 Umpires objections. 35 -65- LSB 1094HW (1) 91 nls/ko 65/ 103 |
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| 132 | 132 | | |
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| 133 | 133 | | H.F. 1012 A party or appraiser that objects for good cause to a 1 selected umpire within the time limit specified in section 2 522F.14, subsection 3, paragraph b , shall send the objection 3 to all parties involved in the appraisal and, if applicable, to 4 the judge who appointed the umpire from the umpire list under 5 section 522F.14, subsection 3, paragraph d . A copy of the 6 objection shall be sent to the division electronically in the 7 form and manner prescribed by the commissioner. The objection 8 shall include all of the following information: 9 1. The names of all parties involved in the dispute. 10 2. The name of the person submitting the objection. 11 3. The insurers claim number. 12 4. The name of the umpire that the party or appraiser 13 objects to. 14 5. An explanation of the good cause basis for the objection. 15 Sec. 67. NEW SECTION . 522F.13 Umpires standards of 16 conduct. 17 1. An umpire shall act with due diligence, including but 18 not limited to demonstrating accuracy, fairness, and timeliness 19 throughout an appraisal process. 20 2. a. (1) No later than three business days after being 21 hired by the parties to an appraisal and before beginning work 22 as an umpire to the appraisal, an umpire shall disclose to all 23 parties to the appraisal any potential conflict of interest. 24 If a conflict of interest exists, the umpire shall withdraw 25 from the appraisal. 26 (2) An umpire shall not engage in any act or practice that 27 is a conflict of interest during the appraisal. 28 (3) If a conflict of interest arises after the start of an 29 appraisal process, an umpire shall disclose the conflict of 30 interest to the parties and shall withdraw from the appraisal 31 process. 32 b. A conflict of interest shall include but is not limited 33 to the following: 34 (1) An umpire is a party to a lawsuit against any party to 35 -66- LSB 1094HW (1) 91 nls/ko 66/ 103 |
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| 134 | 134 | | |
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| 135 | 135 | | H.F. 1012 an appraisal. 1 (2) An umpire is a party to, or a member or employee of 2 a law firm that represents a party to, a current lawsuit 3 involving an insurer that is party to the appraisal. 4 (3) An umpire has a personal open claim involving an insurer 5 that is a party to the appraisal. 6 (4) An umpire has a personal bias or prejudice against a 7 party. 8 (5) An umpire has personally investigated, prosecuted, or 9 advocated in connection with the appraisal. 10 (6) An umpire has acted as counsel to any party to an 11 appraisal within the two years immediately preceding the 12 appraisal. 13 (7) An umpire has a personal financial interest in the 14 outcome of the appraisal or any other significant interest 15 that could be substantially affected by the outcome of the 16 appraisal. 17 (8) A member of an umpires immediate family is any of the 18 following: 19 (a) A party to the appraisal, or an officer, director, or 20 trustee of a party. 21 (b) A current employee of an appraiser or an adjuster to the 22 appraisal. 23 (c) A business entity licensed as an adjuster that adjusted 24 the loss at issue in the appraisal. 25 (d) Known to have an interest that could be substantially 26 affected by the outcome of the appraisal. 27 (e) An immediate family member that has a legally sufficient 28 reason that requires the umpire to withdraw from the appraisal. 29 3. Prior to beginning work as an umpire, an umpire shall 30 enter into a written contract with all parties to the appraisal 31 that requires the parties and the umpire to comply with this 32 section, and provides that each party shall pay costs as 33 required under section 522F.11. 34 4. An umpire shall not begin work on a claim until the 35 -67- LSB 1094HW (1) 91 nls/ko 67/ 103 |
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| 136 | 136 | | |
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| 137 | 137 | | H.F. 1012 umpire receives each appraisers differences in actual cash 1 value and amount of loss of each item of the claim, and written 2 approval from the parties for the umpire to begin work. 3 5. No later than three business days after receiving notice 4 of selection for an appraisal, an umpire shall send notice 5 to the parties and the appraisers that includes all of the 6 following: 7 a. A statement informing each party if the umpire is insured 8 by an insurer. 9 b. A statement informing each party of the partys 10 respective right to object to the umpire under section 522F.12. 11 6. An umpire shall address only issues in an appraisal that 12 the appraisers disagree on. 13 7. An umpire shall review all information submitted by the 14 appraisers and parties related to the dispute, including but 15 not limited to the itemized appraisals or estimates, supporting 16 documents, photographs, and diagrams. The umpire shall review 17 the differences between what each appraiser submitted and seek 18 agreement by the appraisers regarding the disputed issues. 19 8. An umpire shall allow each appraiser to a claim a fair 20 opportunity to present evidence and arguments regarding the 21 appraisal. 22 9. An umpire shall ask questions, or request documents or 23 other evidence, as the umpire deems necessary in the course of 24 an appraisal. 25 10. An umpire may accept either appraisers scope, 26 quantity, value, or cost regarding an item in dispute, or 27 develop an independent decision on each item in dispute. 28 11. An umpire shall decide all matters in an appraisal 29 fairly, and shall exercise independent judgment and integrity. 30 12. An umpire shall prepare and distribute a written 31 itemized award pursuant to section 522F.16. 32 13. An umpire shall not visit the claimants damaged 33 property without consent from all appraisers. 34 14. An umpire shall not withdraw or abandon an appraisal 35 -68- LSB 1094HW (1) 91 nls/ko 68/ 103 |
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| 138 | 138 | | |
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| 139 | 139 | | H.F. 1012 unless compelled by unforeseen circumstances that would render 1 it impossible or impracticable for the umpire to continue on a 2 claim. 3 15. An umpire shall not attend or participate in settlement 4 discussions unless requested to do so by all parties. 5 16. An umpire shall not permit outside influences to affect 6 an appraisal. 7 17. An umpire shall not delegate the umpires duty to decide 8 a claim to any other person. 9 18. Unless reasonable notice and opportunity to participate 10 in a communication is provided to an opposing party and the 11 opposing partys appraiser, an umpire shall not communicate, 12 directly or indirectly, with any party or appraiser regarding a 13 pending appraisal. 14 19. Unless reasonable notice and opportunity to participate 15 in a communication is provided to all parties, an umpire shall 16 not communicate, directly or indirectly, with any party, a 17 representative of any party, or any other person with a direct 18 or indirect interest in the claim, regarding an issue of fact 19 or law in the appraisal. 20 20. An umpire shall not act as, or have ever acted as, an 21 adjuster or appraiser on the same claim. 22 Sec. 68. NEW SECTION . 522F.14 Appraisal process. 23 1. This section provides for the appraisal process if all 24 of the following apply: 25 a. The claimants insurance policy is delivered, issued for 26 delivery, or renewed in this state. 27 b. The property that is the subject of the claimants 28 claim is located in this state, or the dispute is subject to 29 jurisdiction in this state. 30 c. A claimant gave proper notice to the claimants insurer 31 of a loss claim, and the claimant and insurer dispute the 32 actual cash value, or the amount of loss the insurer will pay, 33 for the claimants claim under the claimants policy. The 34 claimant and the insurer must both provide the other party with 35 -69- LSB 1094HW (1) 91 nls/ko 69/ 103 |
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| 140 | 140 | | |
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| 141 | 141 | | H.F. 1012 a scope of loss of a covered peril, including a list stating 1 separately the actual cash value and the amount of claimed loss 2 for each item. 3 d. The claimant or insurer demands in writing an appraisal 4 pursuant to the claimants policy. 5 2. Within twenty calendar days following either the 6 claimants or insurers receipt of the other partys written 7 demand for an appraisal, the claimant and the insurer 8 shall each select an appraiser from the appraiser list. 9 Upon selection, the appraiser shall attest in writing to 10 the selecting party that the appraiser is competent and 11 disinterested with regards to the appraisal in question. 12 3. a. Within fifteen calendar days of the selection of 13 appraisers pursuant to subsection 2, both appraisers shall 14 agree on an umpire from the umpire list. 15 b. A party or an appraiser may object to the agreed-upon 16 umpire for good cause pursuant to section 522F.12 no later 17 than five business days after the umpire has been selected. A 18 replacement umpire from the umpire list shall then be agreed 19 upon by both appraisers. 20 c. If both appraisers fail to agree on an umpire, either the 21 claimant or insurer shall immediately provide written notice 22 to the division, in the form and manner prescribed by the 23 division, and the division shall randomly select an umpire from 24 the umpire list and notify the parties. 25 d. If either appraiser requests that an umpire be selected 26 by a judge in the state in which the property that is the 27 subject of the claim is located, a judge shall give deference 28 to the randomly selected umpire from the umpire list by the 29 division unless either the claimant or the insurer provides 30 good cause for the judge to make an alternative selection from 31 the umpire list. 32 4. Within forty-five calendar days from the date the 33 umpire is selected, both appraisers shall appraise the loss, 34 stating separately the actual cash value and the amount of 35 -70- LSB 1094HW (1) 91 nls/ko 70/ 103 |
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| 142 | 142 | | |
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| 143 | 143 | | H.F. 1012 loss for each item. Each appraiser shall submit separately 1 the appraisers actual cash value and amount of loss of each 2 item, along with any supporting information, to the umpire. 3 Each appraiser shall also submit written authorization for the 4 umpire to commence the umpires work. 5 5. No later than forty-five calendar days after receipt of 6 the actual cash value and amount of loss under subsection 4, 7 the umpire shall prepare and provide to the parties and each 8 appraiser a written itemized award showing the actual cash 9 value and amount of loss. The written itemized award shall 10 include but is not limited to all of the following: 11 a. Contact information for each appraiser and the umpire. 12 b. The insureds policy number and the insureds claim 13 number. 14 c. The date of the insureds loss. 15 d. The type of covered peril that caused the loss. 16 e. The date the umpire commenced work. 17 f. The legal name of the insurer. 18 g. The physical address of the property on which the insured 19 made a claim. 20 h. The date of the umpires written itemized award. 21 i. (1) A description and itemization of the final written 22 itemized award by coverage type, including but not limited to: 23 (a) Coverage A dwelling. 24 (b) Coverage B other structures. 25 (c) Coverage C personal property. 26 (2) The description and itemization by coverage type shall 27 include contested items that have been resolved, sublimits, 28 and other disputed items. Items, including but not limited 29 to items with sublimits, shall be separately noted to avoid 30 ambiguity in the final written itemized award. 31 j. The signature of the umpire and at least one appraiser. 32 6. Prior to the umpire issuing the written itemized award, 33 the parties may agree to conclude the appraisal process when 34 the parties reach a final settlement. 35 -71- LSB 1094HW (1) 91 nls/ko 71/ 103 |
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| 144 | 144 | | |
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| 145 | 145 | | H.F. 1012 Sec. 69. NEW SECTION . 522F.15 Appraisal clause. 1 All property insurance policies delivered, issued for 2 delivery, continued, or renewed in this state on or after 3 January 1, 2026, shall contain an appraisal clause that 4 complies with this chapter. 5 Sec. 70. NEW SECTION . 522F.16 Appraisal award. 6 1. An appraiser and umpire shall act with due diligence in 7 achieving an appraisal award. 8 2. A insurers payment of an appraisal award to an insured 9 shall be subject to the limits of coverage, and other terms 10 and conditions of the insureds policy, including reductions 11 for deductibles and prior payments. Unless otherwise agreed 12 upon by the parties in writing, an appraisal award shall be 13 binding and paid by the insurer within sixty calendar days of 14 the written itemized award being submitted to the insurer. 15 3. An insurers motion to vacate an appraisal award for good 16 cause shall be filed within thirty calendar days from the date 17 the insurer receives the written itemized award in the court 18 of record. 19 Sec. 71. NEW SECTION . 522F.17 Reporting of actions. 20 1. An appraiser or umpire shall report to the commissioner 21 any administrative action taken against the appraiser or umpire 22 in another jurisdiction or by another administrative agency in 23 this state within thirty calendar days of the final disposition 24 of the matter. This report shall include a copy of the order, 25 consent to the order, and other relevant legal documents. 26 2. Within thirty calendar days of the initial pretrial 27 hearing date, an appraiser or umpire shall report to the 28 commissioner any criminal prosecution of the appraiser or 29 umpire taken in any jurisdiction. The report shall include a 30 copy of the initial complaint filed, the order resulting from 31 the hearing, and any other relevant legal documents. 32 3. An appraiser or umpire who willfully fails to comply with 33 this section is subject to penalty under section 522F.20. 34 Sec. 72. NEW SECTION . 522F.18 Records appraisers and 35 -72- LSB 1094HW (1) 91 nls/ko 72/ 103 |
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| 146 | 146 | | |
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| 147 | 147 | | H.F. 1012 umpires. 1 1. An appraiser or umpire shall have a continuing duty and 2 obligation to keep, at the appraisers or umpires place of 3 business, usual and customary records pertaining to appraisals 4 undertaken by the appraiser or umpire. All such records 5 shall be kept available for inspection by the commissioner or 6 the commissioners agent during regular business hours. The 7 commissioner or the commissioners agent shall not be entitled 8 to inspect any records prepared in anticipation of litigation 9 or that are subject to any privilege recognized in chapter 622. 10 Such records shall be maintained for a minimum of three years 11 following the date of final claim resolution. 12 2. An appraiser or umpire who willfully fails to comply with 13 this section is subject to penalty under section 522F.20. 14 Sec. 73. NEW SECTION . 522F.19 Hearings service of 15 process, attendance of witnesses, and production of documents. 16 1. Whenever the commissioner believes that a person has 17 been engaged, or is engaging, in a violation of this chapter 18 or a rule adopted or an order issued under this chapter, and 19 that a proceeding by the commissioner would be in the public 20 interest, the commissioner shall issue and serve upon the 21 person a statement of the charges and a notice of a hearing on 22 the charges to be held at the time and place set in the notice, 23 which shall not be less than ten business days after the date 24 of service of such notice. 25 2. At the time and place of such hearing, the person shall 26 have an opportunity to be heard and to show cause why an order 27 should not be made by the commissioner requiring the person to 28 cease and desist from the violation of the chapter, rule, or 29 order. Upon a showing of good cause, the commissioner shall 30 permit any person, by counsel or in person, to intervene, 31 appear, and be heard at such hearing. 32 3. A hearing under this section shall not be required to 33 observe formal rules of pleading or evidence. 34 4. The commissioner, at a hearing under this section, may 35 -73- LSB 1094HW (1) 91 nls/ko 73/ 103 |
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| 148 | 148 | | |
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| 149 | 149 | | H.F. 1012 administer oaths, examine and cross-examine witnesses, receive 1 oral and documentary evidence, and may subpoena witnesses, 2 compel their attendance, and require the production of books, 3 papers, records, correspondence, or other documents which the 4 commissioner deems relevant. The commissioner may, and upon 5 the request of any party shall, cause to be made a stenographic 6 record of the evidence and proceedings of a hearing under this 7 section. If no stenographic record is made and if a judicial 8 review is sought, the commissioner shall prepare a statement 9 of the evidence and proceeding for use on review. If a person 10 refuses to comply with a subpoena issued under this section, 11 or to testify to a matter for which the person may lawfully be 12 interrogated, the district court of Polk county or the district 13 court of the county where the person resides, on application of 14 the commissioner, may issue an order requiring such person to 15 comply with such subpoena or to testify. Failure of a person 16 to obey such order of the court may be punished by the court as 17 contempt. 18 5. Statements of charges, notices, orders, subpoenas, and 19 other processes of the commissioner under this chapter may be 20 served by anyone authorized by the commissioner, either in the 21 manner provided by law for service of process in civil actions, 22 or by mailing a copy by restricted certified mail to the person 23 affected by the statement, notice, order, subpoena, or other 24 process at the persons residence or principal office or place 25 of business. The verified return by the person serving the 26 statement, notice, order, subpoena, or other process, setting 27 forth the manner of such service, shall be proof of service, 28 and the return receipt for the statement, notice, order, 29 subpoena, or other process, mailed by restricted certified 30 mail, shall be proof of the service. 31 Sec. 74. NEW SECTION . 522F.20 License denial, nonrenewal, 32 or revocation penalties. 33 1. The division may place on probation, suspend, revoke, or 34 refuse to issue or renew an appraisers license or an umpires 35 -74- LSB 1094HW (1) 91 nls/ko 74/ 103 |
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| 150 | 150 | | |
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| 151 | 151 | | H.F. 1012 license, and may levy a civil penalty against an appraiser or 1 umpire as provided in section 522F.21, for one or more of the 2 following causes: 3 a. The appraiser or umpire provided incorrect, misleading, 4 incomplete, or materially untrue information in a license 5 application. 6 b. The appraiser or umpire violated an insurance law, 7 regulation, subpoena, or order of the commissioner or of a 8 commissioner of another state. 9 c. The appraiser or umpire obtained or attempted to obtain a 10 license through misrepresentation or fraud. 11 d. The appraiser or umpire improperly withheld, 12 misappropriated, or converted money or property received from 13 an insured in the course of doing business. 14 e. The appraiser or umpire was convicted of a felony. 15 f. The appraiser or umpire committed, or was found to have 16 committed, any unfair trade practice or fraud. 17 g. The appraiser or umpire used fraudulent, coercive, 18 or dishonest practices, or demonstrated incompetence, 19 untrustworthiness, or financial irresponsibility in the conduct 20 of business. 21 h. The appraiser or umpire had any professional license, or 22 its equivalent, denied, suspended, or revoked in this state or 23 any other state, province, district, or territory. 24 i. The appraiser or umpire forged anothers name to any 25 document related to an appraisal. 26 j. The appraiser or umpire improperly used notes or any 27 other reference material to complete an examination for an 28 appraisal license or umpire license. 29 k. The appraiser knowingly negotiated as an appraiser with 30 an individual who is not, but is required to be, licensed as an 31 appraiser during an appraisal. 32 l. The umpire knowingly acted as an umpire during the 33 conduct of an appraisal with an individual who is not, but is 34 required to be, licensed as an appraiser during an appraisal. 35 -75- LSB 1094HW (1) 91 nls/ko 75/ 103 |
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| 152 | 152 | | |
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| 153 | 153 | | H.F. 1012 m. The appraiser or umpire failed to comply with an 1 administrative or court order related to repayment of loans to 2 the college student aid commission. 3 n. The appraiser or umpire failed to pay state income tax or 4 comply with any administrative or court order directing payment 5 of state income tax. 6 o. The appraiser or umpire failed to comply with an 7 administrative or court order imposing a child support 8 obligation. 9 p. The appraiser or umpire failed or refused to cooperate 10 in an investigation conducted by the commissioner or the 11 commissioners designee. 12 q. The appraiser or umpire used an appraiser license 13 or umpire license for the principal purpose of procuring, 14 receiving, or forwarding appraisals, or placing or affecting 15 such appraisals, directly or indirectly, on or in connection 16 with the property of the licensee or the property of a 17 relative, employer, or employee of the licensee, or upon or in 18 connection with property for which the licensee or a relative, 19 employer, or employee of the licensee is an agent, custodian, 20 vendor, bailee, trustee, or payee. 21 2. If the commissioner does not renew a license or denies an 22 application for a license, the commissioner shall notify the 23 applicant, appraiser, or umpire in writing of the reason for 24 the nonrenewal of the license or denial of the application for 25 a license. The applicant, appraiser, or umpire may request a 26 hearing on the nonrenewal or denial. The applicant, appraiser, 27 or umpire shall have thirty calendar days from the date of 28 receipt of the notice to file a written request for a hearing. 29 A hearing shall be conducted according to section 522F.19. 30 3. The license of an umpire, an appraiser, or an appraiser 31 business entity may be suspended, revoked, placed on probation, 32 or refused if the commissioner finds, after hearing, that an 33 umpires, appraisers, or appraiser business entitys violation 34 was known or should have been known by a partner, officer, 35 -76- LSB 1094HW (1) 91 nls/ko 76/ 103 |
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| 154 | 154 | | |
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| 155 | 155 | | H.F. 1012 or manager of the business entity and the violation was not 1 reported to the commissioner and corrective action was not 2 taken. 3 4. In addition to, or in lieu of, denial, probation, 4 suspension, or revocation of a license under this section, an 5 appraiser or umpire, after hearing, may be subject to a civil 6 penalty as provided in section 522F.21. 7 5. The commissioner may enforce this chapter, may conduct 8 an investigation of any suspected violation of this chapter, 9 and may impose any penalty or remedy authorized by this chapter 10 against any person who is under investigation for, or charged 11 with, a violation of this chapter even if the persons license 12 has been surrendered or has lapsed by operation of law. 13 6. a. All complaint files, investigation files, 14 investigation reports, and other investigative information 15 in the possession of the commissioner or the commissioners 16 agents that relates to appraiser or umpire discipline shall 17 be privileged and confidential, and shall not be subject 18 to discovery, subpoena, or other means of legal compulsion 19 for release to a person other than the appraiser or umpire, 20 and shall not be admissible in evidence in a judicial or 21 administrative proceeding other than the proceeding involving 22 the appraiser or umpire discipline. A final written decision 23 of the commissioner in a disciplinary proceeding shall be a 24 public record. 25 b. Investigative information in the possession of the 26 commissioner or the commissioners agent that relates to 27 appraiser or umpire discipline may be disclosed at the 28 discretion of the commissioner. The commissioner may 29 share documents, materials, or other information, including 30 confidential and privileged documents, materials, or 31 information under this subsection with other state, federal, 32 and international regulatory agencies, with NAIC and its 33 affiliates or subsidiaries, and with state, federal, and 34 international law enforcement authorities, provided that the 35 -77- LSB 1094HW (1) 91 nls/ko 77/ 103 |
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| 156 | 156 | | |
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| 157 | 157 | | H.F. 1012 recipient agrees to maintain the confidentiality and privileged 1 status of the document, material, or other information. 2 c. If the investigative information in the possession of the 3 commissioner or the commissioners agents indicates a crime has 4 been committed, the information shall be reported to the proper 5 law enforcement agency. 6 7. a. Pursuant to section 17A.19, subsection 6, upon an 7 appeal by the appraiser or umpire, the commissioner shall 8 transmit the entire record of the contested case to the 9 reviewing court. 10 b. Notwithstanding section 17A.19, subsection 6, if a 11 waiver of privilege has been involuntary and evidence has been 12 received at a disciplinary hearing, the court shall issue 13 an order to withhold the identity of the individual whose 14 privilege was waived. 15 Sec. 75. NEW SECTION . 522F.21 Civil and criminal penalties. 16 1. a. Upon a determination by the commissioner, after 17 a hearing conducted pursuant to chapter 17A, that a person 18 violated this chapter, the commissioner shall reduce the 19 findings of the hearing to writing and deliver a copy of the 20 findings to the person. 21 b. Upon a determination by the commissioner that a person 22 has engaged, is engaging, or is about to engage in any act or 23 practice constituting a violation of this chapter or a rule 24 adopted or order issued under this chapter, the commissioner 25 may take the following actions: 26 (1) Issue an order requiring the person to cease and desist 27 from engaging in the conduct resulting in the violation. 28 (2) Assess a civil penalty against the person of not more 29 than one thousand dollars for each violation not to exceed an 30 aggregate of ten thousand dollars. 31 (3) If the person knew or reasonably should have known the 32 person was in violation of this chapter, assess a civil penalty 33 of not more than five thousand dollars for each violation 34 of this chapter not to exceed an aggregate penalty of fifty 35 -78- LSB 1094HW (1) 91 nls/ko 78/ 103 |
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| 158 | 158 | | |
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| 159 | 159 | | H.F. 1012 thousand dollars in any one six-month period. 1 (4) (a) Issue a summary order, including a brief statement 2 of findings of fact, conclusions of law, and policy reasons for 3 the decision, and directing the person to cease and desist from 4 engaging in the act or practice or to take affirmative action 5 as is necessary in the judgment of the commissioner to comply 6 with the requirements of this chapter. 7 (b) A person may contest a summary order by filing, 8 within thirty calendar days from the date of the issuance of 9 the summary order, a written request for a contested case 10 proceeding and hearing as provided in chapter 17A and in 11 accordance with rules adopted by the commissioner. Section 12 17A.18A shall be inapplicable to a summary order issued under 13 this subsection. If a hearing is not requested within thirty 14 calendar days from the date of issuance of the summary order, 15 the summary order shall become final by operation of law. A 16 summary order shall remain effective from the date of issuance 17 until the date the order becomes final by operation of law, 18 or is modified or overturned by a presiding officer or court 19 following a request for hearing. 20 (c) A person violating a summary order issued under this 21 subsection shall be deemed in contempt of the summary order. 22 The commissioner may petition the district court to enforce the 23 order as certified by the commissioner. The district court 24 shall find the person in contempt of the order if the court 25 finds, after conducting a hearing, that the person is not 26 in compliance with the order. The court may assess a civil 27 penalty against the person and may issue further orders as the 28 court deems appropriate. 29 c. In addition to any other penalty under this section, 30 if the commissioner finds that a violation of this chapter 31 was directed, encouraged, condoned, ignored, or ratified by 32 the employer of the appraiser or umpire, the commissioner 33 shall assess a penalty to the employer. Penalties under this 34 paragraph may be retained by the commissioner under the fund 35 -79- LSB 1094HW (1) 91 nls/ko 79/ 103 |
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| 160 | 160 | | |
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| 161 | 161 | | H.F. 1012 described in section 505.7, subsection 9. 1 2. a. A person acting as an appraiser or an umpire without 2 proper licensure, or an appraiser or an umpire who willfully 3 violates any provision of this chapter or an order issued 4 under this chapter, is guilty of a class D felony. If the 5 violation results in a loss of more than ten thousand dollars, 6 the appraiser or an umpire is guilty of a class C felony. 7 b. The commissioner may refer such evidence as is available 8 concerning a violation of this chapter, or of any rule adopted 9 or order issued under this chapter, or of the failure of a 10 person to comply with the licensing requirements of this 11 chapter, to the attorney general or the proper district 12 attorney who may institute the appropriate criminal proceedings 13 under this chapter. 14 c. This chapter shall not limit the power of the state to 15 punish any person for any conduct that constitutes a crime 16 under any other statute. 17 Sec. 76. NEW SECTION . 522F.22 Reinstatement or reissuance 18 of a license after disciplinary matters forfeiture in lieu of 19 compliance. 20 1. a. A person licensed under this chapter as an appraiser 21 or umpire whose license has been revoked or suspended by order, 22 or who forfeited a license in connection with a disciplinary 23 matter, may apply to the commissioner for reinstatement 24 or reissuance in accordance with the terms of the order 25 of revocation or suspension, or the order accepting the 26 forfeiture, and submit to a criminal history check under 27 section 522B.5A. 28 b. (1) Proceedings for reinstatement or reissuance 29 shall be initiated by the applicant who shall file with the 30 commissioner an application for reinstatement or reissuance 31 after disciplinary action. 32 (2) An appraiser shall not be eligible for reinstatement or 33 reissuance until the appraiser satisfies the requirements under 34 section 522F.3 and pays any required fees. An appraiser may be 35 -80- LSB 1094HW (1) 91 nls/ko 80/ 103 |
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| 162 | 162 | | |
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| 163 | 163 | | H.F. 1012 required to submit a new or renewal appraiser application under 1 section 522F.5. 2 (3) An umpire shall not be eligible for reinstatement or 3 reissuance until the umpire satisfies the requirements under 4 section 522F.8 and pays any required fees. An umpire may be 5 required to submit a new or renewal umpire application under 6 section 522F.10. 7 c. An application for reinstatement or reissuance shall 8 allege facts which, if established, are sufficient to enable 9 the commissioner to determine that the basis of revocation, 10 suspension, or forfeiture of the applicants license no longer 11 exists, and must disclose if the applicant has engaged in 12 any conduct listed as a cause for licensing action that was 13 not included in the order for suspension, revocation, or 14 forfeiture. 15 d. An application for reinstatement or reissuance shall 16 allege facts which, if established, are sufficient to enable 17 the commissioner to determine that it is in the public 18 interest for the application to be granted. The commissioner 19 may determine that it is not in the public interest if the 20 applicant has engaged in any conduct listed as a cause for 21 licensing action that was not included in the order for 22 suspension, revocation, or forfeiture, or if the applicant does 23 not have the character and fitness to be a licensed appraiser 24 or umpire in this state. 25 e. The burden of proof to establish facts identified in 26 paragraphs c and d shall be on the applicant. 27 f. A person licensed as an appraiser or an umpire may 28 request reinstatement of a suspended license prior to the end 29 of the suspension term. 30 g. Unless otherwise provided by law, if an order of 31 revocation or suspension did not establish terms upon which 32 reinstatement or reissuance may occur, or if the license 33 was forfeited, an initial application for reinstatement or 34 reissuance shall not be made until at least one year from the 35 -81- LSB 1094HW (1) 91 nls/ko 81/ 103 |
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| 164 | 164 | | |
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| 165 | 165 | | H.F. 1012 date of the order of the suspension, revocation, or acceptance 1 of the forfeiture of a license. 2 2. All proceedings upon the application for reinstatement 3 or reissuance, including preliminary and ancillary matters, 4 shall be held in accordance with chapter 17A. The application 5 shall be docketed in the original case in which the original 6 license was suspended, revoked, or forfeited, if the case 7 exists. 8 3. An order of reinstatement or reissuance shall be based 9 on a written decision which incorporates findings of fact 10 and conclusions of law. An order granting an application 11 for reinstatement or reissuance may impose such terms and 12 conditions as the commissioner or the commissioners designee 13 deems appropriate, which may include one or more penalties 14 provided under this chapter. The order shall be a public 15 record and may be disseminated in compliance with chapter 22. 16 4. If an appraisers or umpires ordered suspension period 17 ends prior to the appraisers or umpires license expiration 18 date and the appraiser or umpire applies for reinstatement 19 prior to the license expiration date and meets all applicable 20 requirements, the division shall reinstate the license as soon 21 as practicable but no earlier than the end of the suspension 22 period if the division, after a complete review, determines the 23 license should be reinstated. 24 5. If an appraisers or umpires license is suspended beyond 25 the appraisers or umpires license expiration date, whether 26 due to an ordered suspension time period or failure to apply 27 for reinstatement prior to expiration, the appraiser or umpire 28 must apply for reissuance. 29 6. A submission of voluntary forfeiture of a license 30 shall be made in writing to the commissioner. Forfeiture of 31 a license is effective upon the date of submission unless a 32 contested case proceeding is pending on the date of submission. 33 If a contested case proceeding is pending, the forfeiture shall 34 become effective upon conditions as required by order of the 35 -82- LSB 1094HW (1) 91 nls/ko 82/ 103 |
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| 166 | 166 | | |
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| 167 | 167 | | H.F. 1012 commissioner. A forfeiture made during the pendency of a 1 contested case proceeding shall be considered a disciplinary 2 action and shall be published in the same manner as is 3 applicable to any other form of disciplinary order. 4 7. The commissioner shall not be prohibited from denying 5 an application for reinstatement or reissuance, or bringing 6 an additional immediate action, if an appraiser or umpire 7 has engaged in an additional violation of chapter 507B or 8 this chapter or otherwise failed to meet all applicable 9 requirements. 10 8. This section shall not apply to reinstatement of an 11 expired license or issuance of a new license that is not in 12 connection with a disciplinary matter. 13 Sec. 77. NEW SECTION . 522F.23 Suspension for failure to 14 pay child support or state debt. 15 1. The commissioner shall deny an appraisers or umpires 16 application for license issuance, renewal, reinstatement, 17 or reissuance; suspend a current license; or revoke a 18 currently suspended license upon receipt of a certificate of 19 noncompliance from the child support recovery unit pursuant to 20 chapter 252J, or upon receipt of a certificate of noncompliance 21 from the centralized collection unit of the department of 22 revenue pursuant to chapter 272D. 23 2. Upon receipt of a certificate of noncompliance 24 under subsection 1, the commissioner shall issue a notice 25 to the appraiser or umpire that the division will, unless 26 the certificate of noncompliance is withdrawn, deny the 27 appraisers or umpires application for license issuance, 28 renewal, reinstatement, or reissuance, suspend the appraisers 29 or umpires current license, or revoke the appraisers or 30 umpires currently suspended license, thirty calendar days 31 after the date the notice is mailed. Notice shall be sent to 32 the appraisers or umpires last known address by restricted 33 certified mail, return receipt requested, or in accordance with 34 the divisions rules for service. The notice shall contain all 35 -83- LSB 1094HW (1) 91 nls/ko 83/ 103 |
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| 168 | 168 | | |
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| 169 | 169 | | H.F. 1012 of the following: 1 a. A statement that the commissioner intends to deny the 2 appraisers or umpires application for license issuance, 3 renewal, reinstatement, or reissuance; suspend the appraisers 4 or umpires current license; or revoke the appraisers or 5 umpires currently suspended license in thirty calendar days 6 unless the certificate of noncompliance is withdrawn. 7 b. A statement that the appraiser or umpire must contact the 8 agency that issued the certificate of noncompliance to request 9 a withdrawal. 10 c. A statement that the appraiser or umpire does not have a 11 right to a hearing before the division, but that the appraiser 12 or umpire may file an application for a hearing in district 13 court pursuant to section 252J.9 or 272D.9, as applicable, and 14 that the filing of an application by the appraiser or umpire 15 will stay the proceedings of the division. 16 d. A copy of the certificate of noncompliance. 17 3. An appraiser or umpire shall keep the commissioner 18 informed of all actions taken by the district court or 19 the issuing agency in connection with a certificate of 20 noncompliance. An appraiser or umpire shall provide to 21 the commissioner, within seven calendar days of filing or 22 issuance, a copy of all applications filed with the district 23 court pursuant to an application or hearing, all court orders 24 entered in such action, and all withdrawals of a certificate 25 of noncompliance. 26 4. If an applicant, appraiser, or umpire timely files an 27 application for hearing in district court and the division 28 is notified of the filing, the commissioners denial, 29 suspension, or revocation proceedings shall be stayed until 30 the division is notified by the district court, the issuing 31 agency, the licensee, or the applicant of the resolution of 32 the application. Upon receipt of a court order lifting the 33 stay or otherwise directing the commissioner to proceed, the 34 commissioner shall continue with the intended action described 35 -84- LSB 1094HW (1) 91 nls/ko 84/ 103 |
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| 170 | 170 | | |
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| 171 | 171 | | H.F. 1012 in the notice. 1 5. If the commissioner does not receive a withdrawal of 2 the certificate of noncompliance from the issuing agency, 3 or a notice from a clerk of court, the issuing agency, the 4 appraiser, the umpire, or the applicant that an application for 5 hearing has been filed within thirty calendar days after the 6 notice is issued, the commissioner shall deny the applicants, 7 appraisers, or umpires application for license issuance, 8 renewal, reinstatement, or reissuance; suspend a current 9 license; or revoke a currently suspended license. 10 6. Upon receipt of a withdrawal of a certificate of 11 noncompliance from the issuing agency, suspension or revocation 12 proceedings shall halt and the named appraiser or umpire 13 shall be notified that the proceedings have halted. If the 14 appraisers or umpires license has already been suspended, the 15 appraiser or umpire must apply for reinstatement in accordance 16 with section 522F.22, and the license shall be reinstated 17 if the appraiser or umpire is otherwise in compliance with 18 this chapter. If the appraisers or umpires application for 19 licensure was stayed, application processing shall resume. 20 All fees required for license renewal, reinstatement, or 21 reissuance must be paid by an appraiser or umpire, and all 22 continuing education requirements shall be satisfied, before 23 the appraisers or umpires license is renewed or reinstated 24 after a license suspension or revocation under this chapter. 25 7. The commissioner shall notify an appraiser or umpire 26 in writing through regular first class mail, or such other 27 means as the commissioner deems appropriate under the 28 circumstances, within ten calendar days of the effective date 29 of the suspension or revocation of the appraisers or umpires 30 license, and shall also notify the appraiser or umpire when the 31 appraisers or umpires license is reinstated following the 32 commissioners receipt of a withdrawal of the certificate of 33 noncompliance. 34 8. Notwithstanding any provision of law to the contrary, the 35 -85- LSB 1094HW (1) 91 nls/ko 85/ 103 |
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| 172 | 172 | | |
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| 173 | 173 | | H.F. 1012 division may share information with the child support recovery 1 unit or the centralized collection unit of the department of 2 revenue for the sole purpose of identifying appraisers or 3 umpires subject to enforcement under chapter 252J or 272D. 4 Sec. 78. NEW SECTION . 522F.24 Severability. 5 If any provision of this chapter or the application thereof 6 to any person or circumstance is held invalid, the invalidity 7 does not affect other provisions or applications of this 8 chapter which can be given effect without the invalid provision 9 or application, and to this end the provisions of this chapter 10 are severable. 11 Sec. 79. CODE EDITOR DIRECTIVE. The Code editor shall 12 divide chapter 522F into subchapters and shall designate 13 sections 522F.1 through 522F.2, as enacted in this division 14 of this Act, as subchapter I entitled General Provisions, 15 sections 522F.3 through 522F.7, as enacted in this division 16 of this Act, as subchapter II entitled Appraisers, sections 17 522F.8 through 522F.13, as enacted in this division of this 18 Act, as subchapter III entitled Umpires, sections 522F.14 19 through 522F.16, as enacted in this division of this Act, as 20 subchapter IV entitled Appraisals, sections 522F.17 through 21 522F.18, as enacted in this division of this Act, as subchapter 22 V entitled Duties of Licensees, and sections 522F.19 through 23 522F.23, as enacted in this division of this Act, as subchapter 24 VI entitled Hearings and Penalties. 25 DIVISION VII 26 IOWA ECONOMIC EMERGENCY FUND PROCLAMATION OF DISASTER 27 EMERGENCY 28 Sec. 80. Section 8.55, subsection 3, paragraph a, Code 2025, 29 is amended to read as follows: 30 a. Except as provided in paragraphs b , c , and d , 31 and f , the moneys in the Iowa economic emergency fund shall 32 only be used pursuant to an appropriation made by the general 33 assembly. An appropriation shall only be made for the fiscal 34 year in which the appropriation is made. The moneys shall 35 -86- LSB 1094HW (1) 91 nls/ko 86/ 103 |
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| 174 | 174 | | |
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| 175 | 175 | | H.F. 1012 only be appropriated by the general assembly for emergency 1 expenditures. 2 Sec. 81. Section 8.55, subsection 3, Code 2025, is amended 3 by adding the following new paragraph: 4 NEW PARAGRAPH . f. (1) For the fiscal year beginning July 5 1, 2026, and each fiscal year thereafter, there is appropriated 6 from the Iowa economic emergency fund to the department of 7 management ten percent of the maximum balance of the Iowa 8 economic emergency fund as calculated for the immediately 9 preceding fiscal year, or so much thereof as is necessary, to 10 be used for disaster response, disaster recovery activities, or 11 disaster aid to citizens. 12 (2) The appropriation in this paragraph is contingent upon 13 all of the following: 14 (a) The issuance of a proclamation of disaster emergency by 15 the governor under section 29C.6 during the fiscal year, which 16 proclamation covers the disaster for which the moneys will be 17 used. 18 (b) The appropriation occurs at the direction of the 19 governor, with the approval of the executive council. 20 (3) Subject to the approval of the governor, the department 21 of management may provide for an interdepartmental transfer of 22 moneys appropriated in this paragraph to another state entity 23 for the purposes specified in this paragraph, subject to the 24 notification and reporting requirements set forth in section 25 8.39, subsections 4 and 5, but notwithstanding the other 26 limitations and requirements of section 8.39. 27 (4) Moneys appropriated in this paragraph shall not 28 supplant other appropriated moneys. 29 Sec. 82. Section 29C.6, Code 2025, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 18. Direct an appropriation under section 32 8.55, subsection 3, paragraph f , with the approval of the 33 executive council. 34 DIVISION VIII 35 -87- LSB 1094HW (1) 91 nls/ko 87/ 103 |
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| 176 | 176 | | |
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| 177 | 177 | | H.F. 1012 IOWA ECONOMIC EMERGENCY FUND APPROPRIATIONS 1 Sec. 83. NUISANCE PROPERTY REMEDIATION ASSISTANCE FUND 2 FY 2024-2025. There is appropriated from the Iowa economic 3 emergency fund created in section 8.55 to the economic 4 development authority for the fiscal year beginning July 1, 5 2024, and ending June 30, 2025, the following amount, or so 6 much thereof as is necessary, to be used for the purposes 7 designated: 8 For deposit in the nuisance property remediation assistance 9 fund established in section 15.338: 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,000,000 11 Notwithstanding section 8.33, moneys appropriated in this 12 section that remain unencumbered or unobligated at the close of 13 the fiscal year shall not revert but shall remain available for 14 expenditure for the purposes designated until the close of the 15 succeeding fiscal year. 16 Sec. 84. DISASTER RECOVERY HOUSING ASSISTANCE FUND 17 FY 2024-2025. There is appropriated from the Iowa economic 18 emergency fund created in section 8.55 to the Iowa finance 19 authority for the fiscal year beginning July 1, 2024, and 20 ending June 30, 2025, the following amount, or so much thereof 21 as is necessary, to be used for the purposes designated: 22 For deposit in the disaster recovery housing assistance fund 23 created in section 16.57B: 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,600,000 25 Notwithstanding section 8.33, moneys appropriated in this 26 section that remain unencumbered or unobligated at the close of 27 the fiscal year shall not revert but shall remain available for 28 expenditure for the purposes designated until the close of the 29 succeeding fiscal year. 30 Sec. 85. EFFECTIVE DATE. This division of this Act, being 31 deemed of immediate importance, takes effect upon enactment. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanations substance by the members of the general assembly. 35 -88- LSB 1094HW (1) 91 nls/ko 88/ 103 |
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| 178 | 178 | | |
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| 179 | 179 | | H.F. 1012 This bill relates to the natural hazard mitigation financing 1 program, the disaster recovery housing assistance program, the 2 disaster recovery new housing program, post-loss assignments 3 of benefits, and the licensing and regulation of adjusters, 4 appraisers and umpires. 5 DIVISION I NATURAL HAZARD MITIGATION FINANCING PROGRAM. 6 The bill creates the natural hazard mitigation financing 7 program (program) for the purpose of making loans available 8 to eligible entities to finance all or part of the costs of a 9 project. Eligible entity and project are defined in the 10 bill. The program shall be a joint and cooperative undertaking 11 of the department of homeland security and emergency management 12 (HSEMD) and the Iowa finance authority (IFA). 13 The bill creates a natural hazard mitigation revolving loan 14 fund (fund) under the control of HSEMD, in consultation with 15 IFA, consisting of moneys and program funding as detailed in 16 the bill. 17 HSEMD, in consultation with IFA, may establish and maintain 18 funds or accounts necessary to carry out the purposes of the 19 bill. Any moneys appropriated to HSEMD and IFA for purposes 20 of paying the costs and expenses associated with the program 21 shall be administered as determined by IFA. The funds or 22 accounts are separate dedicated funds and accounts under the 23 administration and control of IFA, and shall not be considered 24 part of the general fund of the state, are not subject to 25 appropriation for any other purpose by the general assembly, 26 and in determining a general fund balance shall not be included 27 in the general fund of the state, but shall remain in the funds 28 and accounts maintained by HSEMD or IFA. IFA may provide for 29 the issuance of bonds or notes as detailed in the bill. 30 The duties of the director of HSEMD (director) are detailed 31 in the bill. 32 For the fiscal year beginning July 1, 2025, and each fiscal 33 year thereafter, HSEMD may prepare and deliver intended use 34 plans to, and enter into capitalization grant agreements with, 35 -89- LSB 1094HW (1) 91 nls/ko 89/ 103 |
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| 180 | 180 | | |
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| 181 | 181 | | H.F. 1012 the administrator of the United States federal emergency 1 management agency and may accept capitalization grants for the 2 fund. HSEMD, in consultation with IFA, shall establish fiscal 3 controls and accounting procedures for the fund. 4 HSEMD and IFA shall review each loan application to 5 determine if the applicant is an eligible entity and qualifies 6 for a loan. IFA, in cooperation with HSEMD, shall determine 7 the interest rate and repayment terms for each loan under the 8 program and shall enter into a loan agreement with each loan 9 recipient. IFA may charge loan recipients fees and assess 10 costs as necessary. 11 Moneys in the fund shall be used for the primary purpose of 12 making loans to eligible entities to finance eligible costs of 13 projects in accordance with the intended use plans. The loan 14 recipients and the purpose and amount of the loans shall be 15 determined by the director. 16 HSEMD, in consultation with IFA, shall adopt rules pursuant 17 to Code chapter 17A to administer the division of the bill. 18 The bill makes a conforming change to Code section 422.7. 19 DIVISION II DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM. 20 The bill requires a state of disaster emergency proclamation 21 by the governor that authorizes disaster recovery housing 22 assistance to specify if disaster recovery housing assistance 23 is available to homeowners, renters, or both homeowners and 24 renters. 25 The bill defines financial assistance as assistance 26 provided only from the funds, rights, and assets legally 27 available to IFA and includes but is not limited to assistance 28 in the form of grants, loans, and forgivable loans. 29 Under the bill, IFA shall not use more than 5 percent of the 30 moneys deposited into the disaster recovery housing assistance 31 fund for administrative and program costs. 32 Under current law, to be considered for financial assistance 33 under the disaster recovery housing assistance program, 34 a homeowner or renter must register for the disaster case 35 -90- LSB 1094HW (1) 91 nls/ko 90/ 103 |
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| 182 | 182 | | |
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| 183 | 183 | | H.F. 1012 advocacy program. Under the bill, a homeowner or renter is not 1 required to register for the advocacy program to be considered 2 for financial assistance under the disaster recovery housing 3 assistance program. 4 The bill makes conforming changes to Code section 16.57B. 5 DIVISION III DISASTER RECOVERY NEW HOUSING PROGRAM. The 6 bill defines qualifying state disaster recovery new housing 7 grant (grant) as an award of a state disaster recovery new 8 housing grant that was applied for between August 20, 2024, 9 and December 31, 2024, and approved and issued by the economic 10 development authority. A grant shall not be included in the 11 computation of net income for federal income tax purposes. 12 The division takes effect upon enactment and applies 13 retroactively to tax years beginning on or after January 1, 14 2024. 15 DIVISION IV POST-LOSS ASSIGNMENT OF BENEFITS 16 RESIDENTIAL CONTRACTOR. Under the bill, a violation of Code 17 section 515.137 is an unfair method of competition and unfair 18 or deceptive act or practice in the business of insurance. 19 The bill defines post-loss assignment (assignment). The 20 assignment must only assign the insurance proceeds a named 21 insured is entitled to receive from the named insureds insurer 22 for the repair, replacement construction, or reconstruction of 23 the named insureds property. 24 A residential contractor (contractor) shall not engage 25 in conduct prohibited by the bill under an assignment by a 26 named insured to the contractor under a property and casualty 27 insurance policy. 28 An assignment must include an itemized description 29 containing the information detailed in the bill. 30 An assignment shall not impair the interest of a mortgagee, 31 and all mortgagees shall be named as a co-payee for the payment 32 of benefits. An assignment shall only authorize a contractor 33 to be named as a co-payee, along with the named insured and all 34 mortgagees, for the payment of benefits. An assignment shall 35 -91- LSB 1094HW (1) 91 nls/ko 91/ 103 |
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| 184 | 184 | | |
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| 185 | 185 | | H.F. 1012 not prevent or inhibit an insurer from communicating with the 1 named insured or a mortgagee. 2 An electronic copy of a fully executed assignment shall 3 be provided to a named insured and all mortgagees of the 4 damaged residential real estate within five business days after 5 execution. A contractor named in an assignment must cooperate 6 with the insurer in a claim investigation. 7 A named insured shall have the right to cancel an assignment 8 without penalty or fee under the circumstances detailed in the 9 bill. 10 Any written contract, repair estimate, or work order 11 prepared by a contractor to provide goods or services pursuant 12 to an assignment shall include notice as provided in the bill 13 which shall be signed by the named insured and sent to the 14 named insureds insurer prior to payment. 15 For at least 72 hours following a catastrophic disaster, a 16 residential contractor shall not enter into a contract with 17 an insured that includes an assignment. If the severity of 18 the catastrophic disaster has placed people under duress, as 19 determined by the commissioner, the commissioner shall dispatch 20 the consumer advocate and personnel to provide consumer 21 guidance. The commissioner may extend the 72-hour period by an 22 additional 72 hours after public hearing. 23 An assignment entered into with a contractor shall be void if 24 the contractor violates the bill. 25 DIVISION V PUBLIC, INDEPENDENT, AND STAFF ADJUSTERS. The 26 bill makes conforming changes to Code sections 507B.4, 522B.5A, 27 and 522C.1. 28 Under current law, the commissioner of insurance 29 (commissioner) shall adopt rules as necessary to administer and 30 enforce Code chapter 522C. Under the bill, the commissioner 31 may adopt such rules. 32 Under the bill, a person shall not act as, or represent that 33 the person is, a public adjuster or an independent adjuster 34 unless the person is licensed. A license as an adjuster is 35 -92- LSB 1094HW (1) 91 nls/ko 92/ 103 |
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| 186 | 186 | | |
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| 187 | 187 | | H.F. 1012 not required for a staff adjuster, an attorney when acting 1 within their professional capacity as an attorney, or a person 2 employed only for the purpose of obtaining facts surrounding a 3 loss or to furnish technical assistance to a licensed adjuster. 4 A person applying for an adjuster license shall complete an 5 application as described in the bill. The commissioner may 6 require a criminal history check for the applicant. 7 Prior to approving an application for a resident adjuster 8 license, a nonresident adjuster license, or a business entitys 9 or nonresident business entitys application for a license for 10 a resident public adjuster or resident independent adjuster, 11 the commissioner shall find that the applicant meets the 12 requirements detailed in the bill. 13 If the commissioner does not renew a license or denies 14 an application for a license, the commissioner shall notify 15 the applicant or licensee and advise of the reason for the 16 nonrenewal or denial. Within 30 calendar days of the date of 17 the notice, the licensee or applicant may request a hearing on 18 the nonrenewal or denial. 19 Application fees for a license as an adjuster are detailed 20 in the bill. The fee for an examination may be set by a 21 third-party testing service and must be approved by the 22 division of insurance (division). 23 Prior to issuance of a license, an applicant shall secure 24 evidence of financial responsibility (responsibility) through 25 a surety bond (bond) as prescribed by the commissioner. The 26 bond shall be executed and issued by an insurer authorized 27 to issue bonds, and must meet the requirements of the 28 bill. The division may request that an adjuster provide 29 evidence of responsibility at any time. An adjuster shall 30 immediately notify the division if the adjusters evidence 31 of responsibility terminates or becomes impaired, and the 32 adjusters license shall become inactive. 33 An individual applying for a license shall pass a written 34 examination, unless exempt, as described in the bill. 35 -93- LSB 1094HW (1) 91 nls/ko 93/ 103 |
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| 188 | 188 | | |
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| 189 | 189 | | H.F. 1012 A public adjuster shall not provide services to an insured 1 until a written contract with the insured has been executed. 2 The contract must meet all of the requirements detailed in the 3 bill. No provisions in the contract shall be redacted in a 4 copy of the contract submitted to the commissioner. 5 If the insurer, no later than five calendar days after the 6 date on which the insureds loss is reported, either pays 7 or commits in writing to pay the policy limits, the public 8 adjuster shall inform the insured that the total amount of 9 loss claimed by the insured may not be paid by the insured, 10 and the adjuster is only entitled to reasonable compensation 11 from the insured. Prior to execution of a contract, the public 12 adjuster shall review the terms of the contract with the 13 insured and provide a separate disclosure document that meets 14 the requirements detailed in the bill. 15 An original copy of a completed contract shall be provided to 16 the public adjuster and kept by the insured. Within 72 hours 17 of entering a contract with an insured, the public adjuster 18 shall provide the insureds insurer a notification letter. A 19 contract between a public adjuster and an insured executed in 20 violation of the bill shall not be enforceable. 21 The required standards of conduct for, and duties of, an 22 adjuster are detailed in the bill. An adjuster who fails 23 to comply with the standards and duties shall be subject to 24 penalties. 25 The division may place on probation, suspend, revoke, or 26 refuse to issue or renew an adjusters license, and may levy 27 a civil penalty for any of the reasons enumerated in the 28 bill. If the commissioner does not renew a license or denies 29 an application for a license, the commissioner shall notify 30 the adjuster or applicant and advise of the reason for the 31 nonrenewal or denial. The adjuster or applicant may request a 32 hearing within 30 days from the date of the notice. 33 The commissioner may conduct an investigation of any 34 suspected violation of the bill and may impose a penalty or 35 -94- LSB 1094HW (1) 91 nls/ko 94/ 103 |
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| 190 | 190 | | |
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| 191 | 191 | | H.F. 1012 remedy against any person who is under investigation for, or 1 charged with, a violation even if the persons license has been 2 surrendered or has lapsed by operation of law. 3 All complaint files, investigation files, other 4 investigation reports, and other investigative information in 5 the possession of the commissioner that relates to adjuster 6 discipline are privileged and confidential, and may only be 7 disclosed as described in the bill. On appeal by the adjuster, 8 the commissioner shall transmit the entire record of the 9 contested case to the reviewing court. 10 Upon a determination by the commissioner, after a hearing, 11 that an adjuster has violated a provision of the bill, 12 the commissioner shall reduce the findings of the hearing 13 to writing and deliver a copy to the adjuster. Upon a 14 determination by the commissioner that an adjuster has engaged 15 in any act or practice constituting a violation of the bill, 16 the commissioner may take any of the civil actions described 17 in the bill. 18 A person acting as an adjuster without proper licensure, 19 or an adjuster who willfully violates any provision of, or 20 order issued under, Code chapter 522C is guilty of a class 21 D felony. When the violation results in a loss of more 22 than $10,000, the person or adjuster is guilty of a class C 23 felony. 24 An adjuster who steals, converts, or misappropriates funds 25 that should be held in trust in a fiduciary capacity is guilty 26 of a class D felony. When the violation results in a loss 27 of more than $10,000, the adjuster is guilty of a class C 28 felony. 29 A class D felony is punishable by confinement for no more 30 than five years and a fine of at least $1,025 but not more than 31 $10,245. A class C felony is punishable by confinement for 32 no more than 10 years and a fine of at least $1,370 but not more 33 than $13,660. 34 The commissioner may refer evidence concerning violations of 35 -95- LSB 1094HW (1) 91 nls/ko 95/ 103 |
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| 192 | 192 | | |
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| 193 | 193 | | H.F. 1012 the bill to the attorney general or the county attorney who may 1 institute criminal proceedings. 2 Any contract that is entered into by an insured with a person 3 who is not a licensed public adjuster shall be void, and the 4 insured is not liable for the payment of any past or future 5 services by the person under that contract or otherwise. 6 An adjuster whose license has been revoked or suspended, 7 or who forfeited a license, may apply to the commissioner for 8 reinstatement or reissuance and submit to a criminal history 9 check. An applicant shall not be eligible for reinstatement 10 or reissuance until the applicant satisfies the requirements 11 detailed in the bill. 12 An application for reinstatement or reissuance shall allege 13 facts as required by the bill, and the burden of proof is on 14 the adjuster to establish such facts. An adjuster may request 15 reinstatement of a suspended license prior to the end of the 16 suspension term. If an order of revocation or suspension did 17 not establish terms on which reinstatement or reissuance may 18 occur, or if the license was forfeited, an initial application 19 for reinstatement or reissuance shall not be made until at 20 least one year from the date of the order. All proceedings on 21 the application for reinstatement or reissuance shall be held 22 in accordance with Code chapter 17A. 23 If an adjusters ordered suspension period ends prior to 24 the adjusters license expiration date, and the adjuster 25 applies for reinstatement and meets all requirements, the 26 division shall reinstate the license as soon as practicable 27 but no earlier than the end of the suspension period. If an 28 adjusters license is suspended beyond the adjusters license 29 expiration date, the adjuster must apply for reissuance. A 30 submission of voluntary forfeiture of a license shall be made 31 to the commissioner pursuant to the requirements detailed in 32 the bill. 33 The commissioner may deny an application for reinstatement 34 or reissuance, or bring an additional immediate action, if an 35 -96- LSB 1094HW (1) 91 nls/ko 96/ 103 |
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| 194 | 194 | | |
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| 195 | 195 | | H.F. 1012 adjuster has engaged in an additional violation of Code chapter 1 507B or 522C. 2 The commissioner shall deny an adjusters application for 3 license issuance, renewal, reinstatement, or reissuance; 4 suspend a current license; or revoke a currently suspended 5 license, upon receipt of a certificate of noncompliance from 6 the child support recovery unit or the centralized collection 7 unit of the department of revenue. 8 DIVISION VI LICENSING AND REGULATION OF APPRAISERS 9 AND UMPIRES. Under the bill, the commissioner may require a 10 criminal history check on an applicant that applies for an 11 initial license as an appraiser, or an umpire; or a renewal, 12 reinstatement, or reissuance of a license if the license of 13 an appraiser or an umpire has been revoked or suspended. The 14 commissioner may adopt rules to administer this division of the 15 bill. 16 Under the bill, a person shall not act as, or represent that 17 the person is, an appraiser or an umpire unless the person is 18 licensed. 19 A person applying for an appraiser or umpire license shall 20 submit an application prescribed by the commissioner. To be 21 eligible for licensure under the bill, a person shall meet all 22 of the criteria detailed in the bill. A person who meets the 23 requirements for licensure, unless otherwise denied licensure 24 pursuant to the bill, shall be issued an appraiser license or 25 an umpire license that is valid for two years. Applicable fees 26 are detailed in the bill. 27 An appraisers license and an umpires license shall contain 28 the information described in the bill. An appraiser and an 29 umpire shall be required to complete continuing education 30 requirements, as prescribed by the division, to be eligible for 31 license renewal or reinstatement. 32 An appraiser and an umpire shall inform the division of a 33 change of legal name or business address within 30 calendar 34 days of the change. Failure to timely inform the division may 35 -97- LSB 1094HW (1) 91 nls/ko 97/ 103 |
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| 196 | 196 | | |
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| 197 | 197 | | H.F. 1012 result in a penalty. 1 The division shall publish an appraiser list and an umpire 2 list on the divisions internet site, and include all required 3 information as detailed in the bill. 4 Prior to approving a business entitys application for a 5 license as an appraiser, the commissioner shall find that the 6 business entity has designated an individual appraiser to be 7 responsible for the business entitys compliance with the 8 insurance laws and rules. 9 An appraiser or an umpire may apply for reinstatement of an 10 expired license up to one year after the license expiration 11 date by meeting the requirements of the bill. An appraiser or 12 an umpire who fails to apply for license reinstatement within 13 one year must apply for a new license. An appraiser or an 14 umpire who surrendered a license and stated an intent to exit 15 the appraiser business may file a request to reactivate the 16 license within 90 calendar days of the date the license was 17 placed on inactive status. 18 Each party to an appraisal shall be responsible for the 19 partys own appraisers fees and expenses, an equal share of 20 all reasonable and necessary fees and expenses incurred by an 21 umpire, and an equal share of all reasonable and necessary 22 costs incurred in the course of conducting the appraisal. An 23 appraiser or an umpire shall not charge any party on a basis 24 dependent on the outcome of the written itemized award, or 25 charge in a manner that relies on a barter arrangement, gift, 26 favor, or in-kind exchange. Prior to the conclusion of an 27 appraisal process, an appraiser or umpire shall not require, 28 demand, or accept any fee unless the loss is being handled 29 by the appraiser or umpire on a time-plus-expense basis. An 30 appraiser or umpire shall not charge a fee if the appraiser or 31 umpire abandons the appraisal prior to the umpire issuing a 32 written itemized award. 33 The required standards of conduct for, and duties of, an 34 appraiser and an umpire are detailed in the bill. An appraiser 35 -98- LSB 1094HW (1) 91 nls/ko 98/ 103 |
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| 198 | 198 | | |
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| 199 | 199 | | H.F. 1012 or umpire who fails to comply with the standards and duties 1 shall be subject to penalties. 2 The process for an appraisal is detailed in the bill. The 3 claimant and the insurer must both provide the other party with 4 a list stating separately the actual cash value and the amount 5 of claimed loss for each item at issue. Within 20 calendar 6 days of receipt of a written demand for an appraisal, the 7 claimant and the insurer shall each select an appraiser from 8 the appraiser list. Upon selection, the appraiser shall attest 9 that the appraiser is competent and disinterested with regards 10 to the appraisal. 11 Within 15 calendar days of the selection of appraisers, both 12 appraisers shall agree on an umpire from the umpire list. A 13 party or an appraiser may object to the umpire for good cause 14 no later than five business days after the umpire has been 15 selected. A replacement umpire shall then be selected by both 16 appraisers from the umpire list. If both appraisers fail to 17 agree on an umpire, the division shall randomly select an 18 umpire from the umpire list and notify the parties. If either 19 appraiser requests that an umpire be selected by a judge, a 20 judge shall give deference to the randomly selected umpire from 21 the umpire list by the division unless either the claimant 22 or the insurer provides good cause for the judge to make an 23 alternative selection. 24 Within 45 calendar days from the date the umpire is 25 selected, both appraisers shall appraise the loss and submit 26 the appraisers actual cash value and amount of loss of each 27 item to the umpire. Each appraiser shall also submit written 28 authorization for the umpire to commence work. No later than 29 45 calendar days after receipt of the actual cash value and 30 amount of loss, the umpire shall prepare and provide to the 31 parties and each appraiser a written itemized award showing the 32 actual cash value and amount of loss. 33 All property insurance policies delivered, issued for 34 delivery, continued, or renewed in this state on or after 35 -99- LSB 1094HW (1) 91 nls/ko 99/ 103 |
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| 200 | 200 | | |
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| 201 | 201 | | H.F. 1012 January 1, 2026, shall contain an appraisal clause that 1 complies with the bill. 2 An appraiser and umpire shall act with due diligence in 3 achieving an appraisal award. A insurers payment of an 4 appraisal award to an insured shall be subject to applicable 5 policy terms and conditions, limits, and deductibles. Unless 6 otherwise agreed on by the parties, an appraisal award shall be 7 binding and paid by the insurer within 60 calendar days of the 8 award being submitted to the insurer. 9 An appraiser or umpire shall report to the commissioner any 10 administrative action taken against the appraiser or umpire 11 within 30 calendar days of the final disposition. Within 12 30 calendar days of the initial pretrial hearing date, an 13 appraiser or umpire shall report to the commissioner any 14 criminal prosecution of the appraiser or umpire. An appraiser 15 or umpire who willfully fails to comply with such requirements 16 is subject to penalty. 17 An appraiser or umpire has a continuing duty and obligation 18 to keep usual and customary records pertaining to appraisals 19 in accordance with the requirements of the bill. An appraiser 20 or umpire who willfully fails to comply with such requirements 21 is subject to penalty. 22 Whenever the commissioner believes that a person has been 23 engaged or is engaging in a violation of the bill, and that a 24 proceeding by the commissioner would be in the public interest, 25 the commissioner shall issue and serve a statement of the 26 charges and a notice of a hearing. 27 The division may place on probation, suspend, revoke, 28 or refuse to issue or renew an appraisers license or an 29 umpires license, and may levy a civil penalty for any of 30 the causes detailed in the bill. If the commissioner does 31 not renew a license or denies an application for a license, 32 the commissioner shall notify the applicant, appraiser, or 33 umpire and advise of the reason for nonrenewal or denial. The 34 applicant, appraiser, or umpire may request a hearing within 35 -100- LSB 1094HW (1) 91 nls/ko 100/ 103 |
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| 202 | 202 | | |
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| 203 | 203 | | H.F. 1012 30 calendar days from the date of the notice. A hearing shall 1 be conducted pursuant to the requirements detailed in the 2 bill. The license of an umpire, an appraiser, or an appraiser 3 business entity may be suspended, revoked, placed on probation, 4 or refused if the commissioner finds that an umpires, 5 appraisers, or appraiser business entitys violation was known 6 or should have been known by a partner, officer, or manager of 7 the business entity and the violation was not reported to the 8 commissioner and corrective action was not taken. 9 In addition to, or in lieu of, denial, probation, 10 suspension, or revocation of a license, an appraiser or umpire 11 may be subject to a civil penalty. The commissioner may 12 conduct an investigation and may enforce the provisions of the 13 bill. 14 All investigative information in the possession of the 15 commissioner that relates to appraiser or umpire discipline 16 is privileged and confidential, and may only be disclosed as 17 described in the bill. On appeal by the appraiser or umpire, 18 the commissioner shall transmit the entire record of the 19 contested case to the reviewing court. Upon a determination by 20 the commissioner, after hearing, that an appraiser or umpire 21 has violated a provision of the bill, the commissioner shall 22 reduce the findings of the hearing to writing and deliver 23 a copy of the findings to the appraiser or umpire, and the 24 commissioner may take any of the actions described in the bill. 25 A person acting as an appraiser or an umpire without proper 26 licensure, or an appraiser or an umpire who willfully violates 27 any provision of, or an order issued under, the bill is guilty 28 of a class D felony. When the violation results in a loss of 29 more than $10,000, the person or adjuster is guilty of a class 30 C felony. 31 A class D felony is punishable by confinement for no more 32 than five years and a fine of at least $1,025 but not more than 33 $10,245. A class C felony is punishable by confinement for 34 no more than 10 years and a fine of at least $1,370 but not more 35 -101- LSB 1094HW (1) 91 nls/ko 101/ 103 |
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| 204 | 204 | | |
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| 205 | 205 | | H.F. 1012 than $13,660. 1 The commissioner may refer such evidence concerning 2 violations of the bill, or of the failure of a person to comply 3 with the licensing requirements under the bill, to the attorney 4 general or the district attorney who may institute criminal 5 proceedings. 6 An appraiser or an umpire whose license has been revoked or 7 suspended by order, or who forfeited a license, may apply to 8 the commissioner for reinstatement or reissuance, and submit to 9 a criminal history check. 10 All proceedings on the application for reinstatement or 11 reissuance shall be held in accordance with Code chapter 17A. 12 An order of reinstatement or reissuance shall be based on a 13 written decision, and may impose such terms and conditions as 14 the commissioner deems appropriate. 15 If an appraisers or an umpires ordered suspension period 16 ends prior to the appraisers or umpires license expiration 17 date and the adjuster applies for reinstatement and meets all 18 applicable requirements, the division shall reinstate the 19 license as soon as practicable but no earlier than the end 20 of the suspension period. If an appraisers or an umpires 21 license is suspended beyond the license expiration date, the 22 appraiser or umpire must apply for reissuance. A submission of 23 voluntary forfeiture of a license shall be made in writing to 24 the commissioner. 25 The commissioner may deny an application for reinstatement 26 or reissuance, or bring an additional immediate action, if an 27 appraiser or an umpire has engaged in additional violations. 28 The commissioner shall deny an appraisers or umpires 29 application for license issuance, renewal, reinstatement, 30 or reissuance; suspend a current license; or revoke a 31 currently suspended license, upon receipt of a certificate 32 of noncompliance from the child support recovery unit or the 33 centralized collection unit of the department of revenue. 34 DIVISION VII IOWA ECONOMIC EMERGENCY FUND PROCLAMATION 35 -102- LSB 1094HW (1) 91 nls/ko 102/ 103 |
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| 206 | 206 | | |
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| 207 | 207 | | H.F. 1012 OF DISASTER EMERGENCY. Under current law, moneys in the 1 Iowa economic emergency fund may only be used pursuant to 2 an appropriation by the general assembly, including for 3 purposes of reducing or preventing an overdraft on or deficit 4 in the general fund of the state. Each fiscal year, the 5 bill appropriates up to 10 percent of the maximum balance 6 of the Iowa economic emergency fund, as calculated for the 7 immediately preceding fiscal year, to the department of 8 management (DOM) for disaster response, disaster recovery 9 activities, or disaster aid to citizens, at the direction of 10 the governor, with the approval of the executive council, 11 following a proclamation of disaster emergency. The bill 12 allows DOM, subject to approval of the governor, to provide for 13 an interdepartmental transfer of the moneys to another state 14 entity for the purposes specified. Such a transfer is subject 15 to provisions under current law requiring prior notification 16 of appropriations committee and subcommittee chairpersons and 17 subsequent reporting to the legislative fiscal committee, 18 but is not otherwise subject to the other limitations and 19 requirements of Code section 8.39. 20 DIVISION VIII IOWA ECONOMIC EMERGENCY FUND 21 APPROPRIATIONS. For FY 2024-2025, there is appropriated from 22 the Iowa economic emergency fund to the economic development 23 authority for deposit in the nuisance property remediation 24 assistance fund $2 million. For FY 2024-2025, there is 25 appropriated from the Iowa economic emergency fund to the Iowa 26 finance authority for deposit in the disaster recovery housing 27 assistance program fund $11.6 million. This division of the 28 bill takes effect upon enactment. 29 -103- LSB 1094HW (1) 91 nls/ko 103/ 103 |
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