Iowa 2025-2026 Regular Session

Iowa House Bill HSB256

Introduced
2/25/25  

Caption

A bill for an act relating to matters under the purview of the department of insurance and financial services including financial literacy and exploitation, tax confidentiality, health insurance rates, health savings accounts, insurer withdrawals, property insurance, and service contracts, and including penalties.(See HF 911, HF 986.)

Impact

One of the significant impacts of HSB256 is the establishment of two new funds: the Financial Literacy and Investor Education Fund and the Financial Exploitation Prevention Fund. The bill allocates $10 from each agent registration fee to these funds, which will be utilized for educational initiatives and to assist victims of financial exploitation. Moreover, the bill introduces penalties for violations related to insurance practices, aiming to enhance compliance and consumer protection.

Summary

House Study Bill 256 (HSB256) is designed to address a wide array of issues pertaining to the Department of Insurance and Financial Services. Key provisions include enhancing financial literacy and preventing financial exploitation, improving tax confidentiality for insurers, regulating health insurance rates, and setting new standards for health savings accounts. The bill aims to create a structured framework to better educate the public about financial matters and provide protective measures for vulnerable populations against financial fraud.

Contention

Debate around HSB256 highlights the tension between increasing regulatory oversight and the potential for stifling innovation within the insurance sector. While supporters laud the efforts to bolster financial education and prevent exploitation, some critics are concerned that stringent regulations could negatively impact service providers, particularly smaller companies. They argue that additional requirements may lead to increased operational costs and decrease market competition.

Companion Bills

IA HF911

Replaced by A bill for an act relating to matters under the purview of the department of insurance and financial services including financial literacy and exploitation, tax confidentiality, health insurance rates, health savings accounts, insurer withdrawals, property insurance, and service contracts, and including penalties.(Formerly HSB 256; See HF 986.)

IA SSB1194

Related A bill for an act relating to matters under the purview of the department of insurance and financial services including financial literacy and exploitation, tax confidentiality, health insurance rates, health savings accounts, insurer withdrawals, property insurance, and service contracts, and including penalties.

IA HF986

Replaced by A bill for an act relating to matters under the purview of the department of insurance and financial services, the utilities commission, and the department of transportation, including financial literacy and exploitation, tax confidentiality, health insurance rates, health savings accounts, insurer withdrawals, property insurance, service contracts, the Iowa individual health benefit reinsurance association, and the Iowa cemetery Act, motor vehicle financial liability coverage, and including penalties and effective date provisions. (Formerly HF 911, HSB 256.)

Previously Filed As

IA HF566

A bill for an act relating to bodies of the state governmental structure under the purview of the department of health and human services. (Formerly HF 386.)

IA HSB554

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

IA HSB601

A bill for an act relating to money transmission services, providing penalties, and including effective date and retroactive applicability provisions.(See HF 2262.)

IA HSB653

A bill for an act relating to the transition of behavioral health services from a mental health and disability services system to a behavioral health service system, and the transfer of disability services to the division of aging and disability services of the department of health and human services, making appropriations, and including effective date provisions.(See HF 2509, HF 2673.)

IA HF386

A bill for an act relating to bodies of the state governmental structure under the purview of the department of health and human services.(See HF 566.)

IA HSB539

A bill for an act relating to the use of genetic information provided to an insurer that offers health insurance, disability insurance, life insurance, or long-term care insurance.

IA HSB606

A bill for an act relating to the investment of funds by life insurance companies and associations.(See HF 2405.)

IA HF2509

A bill for an act relating to the transition of behavioral health services from a mental health and disability services system to a behavioral health service system, and the transfer of disability services to the division of aging and disability services of the department of health and human services, making appropriations, and including effective date provisions.(Formerly HSB 653; See HF 2673.)

IA SF424

A bill for an act relating to captive insurance companies, and including applicability provisions.(See SF 509, SF 549.)

IA SSB3138

A bill for an act relating to the use of genetic information provided to an insurer that offers health insurance, disability insurance, life insurance, or long-term care insurance.(See SF 2360.)

Similar Bills

IA HF986

A bill for an act relating to matters under the purview of the department of insurance and financial services, the utilities commission, and the department of transportation, including financial literacy and exploitation, tax confidentiality, health insurance rates, health savings accounts, insurer withdrawals, property insurance, service contracts, the Iowa individual health benefit reinsurance association, and the Iowa cemetery Act, motor vehicle financial liability coverage, and including penalties and effective date provisions. (Formerly HF 911, HSB 256.)

IA SSB1194

A bill for an act relating to matters under the purview of the department of insurance and financial services including financial literacy and exploitation, tax confidentiality, health insurance rates, health savings accounts, insurer withdrawals, property insurance, and service contracts, and including penalties.

IA HF911

A bill for an act relating to matters under the purview of the department of insurance and financial services including financial literacy and exploitation, tax confidentiality, health insurance rates, health savings accounts, insurer withdrawals, property insurance, and service contracts, and including penalties.(Formerly HSB 256; See HF 986.)

IA SF619

A bill for an act relating to the natural hazard mitigation financing program, the disaster recovery housing assistance program, the disaster recovery new housing program, post-loss assignment of benefits, the licensing and regulation of adjusters, appraisers, and umpires, and the Iowa economic emergency fund, and providing penalties, making appropriations, and including effective date and applicability provisions. (Formerly SF 591, SSB 1188.) Effective date: 04/22/2025, 07/01/2025. Applicability date: Conditional, 01/01/2024.

IA HSB246

A bill for an act relating to the natural hazard mitigation financing program, the disaster recovery housing assistance program, the disaster recovery new housing program, post-loss assignment of benefits, the licensing and regulation of adjusters, appraisers, and umpires, and the Iowa economic emergency fund, and providing penalties, making appropriations, and including effective date and retroactive applicability provisions.(See HF 957, HF 982, HF 1012.)

IA SSB1188

A bill for an act relating to the natural hazard mitigation financing program, the disaster recovery housing assistance program, the disaster recovery new housing program, post-loss assignment of benefits, the licensing and regulation of adjusters, appraisers, and umpires, and the Iowa economic emergency fund, and providing penalties, making appropriations, and including effective date and retroactive applicability provisions.(See SF 591, SF 619.)

IA HF982

A bill for an act relating to the natural hazard mitigation financing program, the disaster recovery housing assistance program, the disaster recovery new housing program, post-loss assignment of benefits, the licensing and regulation of adjusters, appraisers, and umpires, and the Iowa economic emergency fund, and providing penalties, making appropriations, and including effective date and retroactive applicability provisions.(Formerly HF 957, HSB 246; See HF 1012.)

IA HF1012

A bill for an act relating to the natural hazard mitigation financing program, the disaster recovery housing assistance program, the disaster recovery new housing program, post-loss assignment of benefits, the licensing and regulation of adjusters, appraisers, and umpires, and the Iowa economic emergency fund, and providing penalties, making appropriations, and including effective date and retroactive applicability provisions.(Formerly HF 982, HF 957, HSB 246.)