Bill Text: IA HF2490 | 2023-2024 | 90th General Assembly | Enrolled
Bill Title: A bill for an act relating to the reorganization of county and state mutual insurance associations, nonrenewal notices for automobile insurance, and nonrenewal notices by county and state mutual insurance associations, and including effective date provisions. (Formerly HSB 652.) Effective date: 07/01/2024, 01/01/2025.
Spectrum: Committee Bill
Status: (Passed) 2024-05-01 - Signed by Governor. H.J. 937. [HF2490 Detail]
Download: Iowa-2023-HF2490-Enrolled.html
House
File
2490
-
Enrolled
House
File
2490
AN
ACT
RELATING
TO
THE
REORGANIZATION
OF
COUNTY
AND
STATE
MUTUAL
INSURANCE
ASSOCIATIONS,
NONRENEWAL
NOTICES
FOR
AUTOMOBILE
INSURANCE,
AND
NONRENEWAL
NOTICES
BY
COUNTY
AND
STATE
MUTUAL
INSURANCE
ASSOCIATIONS,
AND
INCLUDING
EFFECTIVE
DATE
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
515D.7,
subsection
1,
Code
2024,
is
amended
to
read
as
follows:
1.
Notwithstanding
the
provisions
of
sections
515.125
,
and
515.128
,
515.129B
,
and
515.129C
,
an
insurer
shall
not
fail
to
renew
a
policy
except
by
notice
to
the
insured
as
provided
House
File
2490,
p.
2
in
this
chapter
.
A
notice
of
intention
not
to
renew
shall
not
be
effective
unless
mailed
or
delivered
by
the
insurer
to
the
named
insured
at
least
thirty
calendar
days
prior
to
the
expiration
date
of
the
policy.
A
post
office
department
certificate
of
mailing
to
the
named
insured
at
the
address
shown
in
the
policy
shall
be
proof
of
receipt
of
such
mailing.
Unless
the
reason
accompanies
the
notice
of
intent
not
to
renew,
the
notice
shall
state
that,
upon
written
request
of
the
named
insured,
mailed
or
delivered
to
the
insurer
not
less
than
thirty
calendar
days
prior
to
the
expiration
date
of
the
policy,
the
insurer
will
state
the
reason
for
nonrenewal.
Sec.
2.
Section
515D.7,
Code
2024,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
1A.
Notwithstanding
the
provisions
of
sections
515.129B
and
515.129C,
an
insurer
shall
not
fail
to
renew
a
policy
except
by
notice
to
the
insured
as
provided
in
this
chapter.
A
notice
of
intention
not
to
renew
shall
not
be
effective
unless
mailed
or
delivered
by
the
insurer
to
the
named
insured
at
least
sixty
calendar
days
prior
to
the
expiration
date
of
the
policy.
A
post
office
department
certificate
of
mailing
to
the
named
insured
at
the
address
shown
in
the
policy
shall
be
proof
of
receipt
of
such
mailing.
Unless
the
reason
accompanies
the
notice
of
intent
not
to
renew,
the
notice
shall
state
that,
upon
written
request
of
the
named
insured,
mailed
or
delivered
to
the
insurer
not
less
than
sixty
calendar
days
prior
to
the
expiration
date
of
the
policy,
the
insurer
will
state
the
reason
for
nonrenewal.
Sec.
3.
Section
515G.1,
subsection
5,
Code
2024,
is
amended
to
read
as
follows:
5.
“Mutual
insurer”
means
a
domestic
mutual
property
and
casualty
insurance
company
organized
and
licensed
under
chapter
515
,
518,
or
518A
.
Sec.
4.
Section
518.23,
subsection
3,
Code
2024,
is
amended
to
read
as
follows:
3.
Nonrenewal
by
association.
A
notice
of
intention
not
to
renew
is
not
effective
unless
mailed
or
delivered
by
the
insurer
to
the
named
insured
at
least
thirty
sixty
days
prior
to
the
expiration
date
of
the
policy.
If
the
reason
does
not
House
File
2490,
p.
3
accompany
the
notice
of
nonrenewal,
the
association,
upon
receipt
of
a
timely
request
by
the
named
insured,
shall
provide
the
reason
for
the
nonrenewal
in
writing.
Sec.
5.
Section
518A.29,
subsection
3,
Code
2024,
is
amended
to
read
as
follows:
3.
Nonrenewal
by
association.
A
notice
of
intention
not
to
renew
is
not
effective
unless
mailed
or
delivered
by
the
insurer
to
the
named
insured
at
least
thirty
sixty
days
prior
to
the
expiration
date
of
the
policy.
If
the
reason
does
not
accompany
the
notice
of
nonrenewal,
the
association,
upon
receipt
of
a
timely
request
by
the
named
insured,
shall
provide
in
writing
the
reason
for
the
nonrenewal.
Sec.
6.
Section
521A.14,
subsection
1,
paragraph
a,
Code
2024,
is
amended
to
read
as
follows:
a.
For
purposes
of
this
section,
“domestic
mutual
insurance
company”
includes
a
company
qualified
and
licensed
in
this
state
pursuant
to
chapters
518
and
518A.
A
domestic
mutual
insurance
company,
upon
approval
of
the
commissioner,
may
reorganize
by
forming
an
insurance
holding
company
based
upon
a
mutual
plan
and
continuing
the
corporate
existence
of
the
reorganizing
insurance
company
as
a
stock
insurance
company.
The
commissioner,
after
a
public
hearing
as
provided
in
section
521A.3,
subsection
4
,
paragraph
“b”
,
if
satisfied
that
the
interests
of
the
policyholders
are
properly
protected
and
that
the
plan
of
reorganization
is
fair
and
equitable
to
the
policyholders,
may
approve
the
proposed
plan
of
reorganization
and
may
require
as
a
condition
of
approval
such
modifications
of
the
proposed
plan
of
reorganization
as
the
commissioner
finds
necessary
for
the
protection
of
the
policyholders’
interests.
The
commissioner
may
retain
consultants
as
provided
in
section
521A.3,
subsection
4
,
paragraph
“d”
.
A
reorganization
pursuant
to
this
section
is
subject
to
section
521A.3,
subsections
1,
2,
and
3
.
The
commissioner
shall
retain
jurisdiction
over
a
mutual
insurance
holding
company
organized
pursuant
to
this
section
to
assure
that
policyholder
interests
are
protected.
Sec.
7.
EFFECTIVE
DATE.
The
following
take
effect
January
1,
2025:
1.
The
sections
of
this
Act
amending
section
515D.7.
House
File
2490,
p.
4
2.
The
section
of
this
Act
amending
section
518.23.
3.
The
section
of
this
Act
amending
section
518A.29.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
AMY
SINCLAIR
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
2490,
Ninetieth
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2024
______________________________
KIM
REYNOLDS
Governor
