Iowa House Bill HSB554

Iowa 2023-2024 Regular Session

• Introduced: 1/11/24
• Refer: 1/11/24

Caption

A bill for an act relating to the insurance commissioner's authority concerning insurance producers, business entity producers, and preneed sellers.(See HF 2263.)

Impact

One of the significant impacts of HSB554 is the modification of civil penalties associated with violations under Code chapter 523A, which governs standards for preneed sellers and funeral services. The bill establishes a clearer framework where penalties for violations could be set at a maximum of $1,000 for each offense, while an aggregate cap of $10,000 for a six-month period is also introduced. In cases where the commissioner finds willful violations, penalties can escalate to $5,000 per violation, capped at $50,000 within a similar timeframe, thereby increasing accountability among insurance producers.

Summary

House Study Bill 554 seeks to amend existing legislation related to the insurance commissioner’s authority particularly concerning insurance producers, business entity producers, and preneed sellers. The bill expands the definition of confidential information to include data relevant to individual insurance producers and business entities, ensuring that such information remains undisclosed by the insurance division and not subject to subpoena. This move aims to strengthen the privacy and protection of sensitive information in the insurance sector.

Contention

Discussions around HSB554 have unearthed points of contention primarily concerning the scope of the insurance commissioner's powers. Critics argue that expanding the definition of confidential information could hinder transparency and accountability, particularly in cases where public access to certain records is necessary for consumer protection. Additionally, the legislative discourse suggests there are varying opinions on whether the proposed penalties are sufficiently rigorous to deter misconduct within the insurance field, posing concerns about the effectiveness of regulatory oversight.