Bill Text: IA HSB23 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to certificates of insurance, including penalties and effective date and applicability provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2017-02-08 - Committee report, recommending amendment and passage. H.J. 250. [HSB23 Detail]
Download: Iowa-2017-HSB23-Introduced.html
House
Study
Bill
23
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
COWNIE)
A
BILL
FOR
An
Act
relating
to
certificates
of
insurance,
including
1
penalties
and
effective
date
and
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
NEW
SECTION
.
515.115
Certificates
of
insurance
1
——
penalty.
2
1.
As
used
in
this
section,
unless
the
context
otherwise
3
requires:
4
a.
“Certificate
of
insurance”
means
a
document
or
5
instrument,
regardless
of
how
the
document
or
instrument
is
6
titled
or
described,
that
is
prepared
or
issued
by
an
insurer
7
or
insurance
producer
as
evidence
of
property
and
casualty
8
insurance
coverage.
“Certificate
of
insurance”
does
not
include
9
a
policy
of
insurance,
insurance
binder,
policy
endorsement,
or
10
automobile
insurance
identification
or
information
card.
11
b.
“Insurance
producer”
means
a
person
required
to
be
12
licensed
pursuant
to
chapter
522B
to
sell,
solicit,
or
13
negotiate
property
and
casualty
insurance.
14
c.
“Insurer”
means
a
property
and
casualty
insurance
company
15
regulated
under
this
chapter.
16
d.
“Person”
means
the
same
as
defined
in
section
4.1.
17
2.
a.
The
commissioner
of
insurance
shall
prohibit
the
use
18
of
a
certificate
of
insurance
form
if
the
form
is
either
of
the
19
following:
20
(1)
Unfair,
misleading,
or
deceptive,
or
violates
public
21
policy.
22
(2)
Violates
any
law,
including
any
rule
adopted
by
the
23
commissioner
of
insurance
pursuant
to
chapter
17A.
24
b.
A
certificate
of
insurance
is
not
a
policy
of
insurance
25
and
does
not
affirmatively
or
negatively
amend,
extend,
26
or
alter
the
coverage
afforded
by
the
policy
to
which
the
27
certificate
of
insurance
makes
reference.
A
certificate
of
28
insurance
shall
not
confer
on
any
person
new
or
additional
29
rights
beyond
what
the
referenced
policy
of
insurance
expressly
30
provides.
31
3.
a.
A
person
shall
not
do
any
of
the
following:
32
(1)
Prepare,
issue,
request,
or
require
the
issuance
of
a
33
certificate
of
insurance
that
contains
any
false
or
misleading
34
information
concerning
the
policy
of
insurance
to
which
the
35
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certificate
of
insurance
makes
reference.
1
(2)
Prepare,
issue,
request,
or
require
the
issuance
of
2
a
certificate
of
insurance
that
purports
to
affirmatively
or
3
negatively
amend,
extend,
or
alter
the
coverage
provided
by
the
4
policy
of
insurance
to
which
the
certificate
of
insurance
makes
5
reference.
6
b.
A
certificate
of
insurance
shall
not
warrant
that
the
7
policy
of
insurance
referenced
in
the
certificate
of
insurance
8
complies
with
the
insurance
or
indemnification
requirements
9
of
a
contract
and
the
inclusion
of
a
contract
number
or
10
description
within
a
certificate
of
insurance
shall
not
be
11
interpreted
as
warranting
compliance
with
such
requirements.
12
4.
A
person
is
entitled
to
notice
of
cancellation,
13
nonrenewal,
or
material
change
concerning
a
policy
of
insurance
14
or
to
any
similar
notice
concerning
a
policy
of
insurance
15
only
if
the
person
has
such
rights
to
notice
under
the
terms
16
of
the
policy
of
insurance
or
any
endorsement
to
the
policy
17
of
insurance.
The
terms
and
conditions
of
a
person’s
right
18
to
notice
are
governed
by
the
policy
of
insurance
or
the
19
endorsement
and
shall
not
be
altered
by
a
certificate
of
20
insurance.
21
5.
a.
The
provisions
of
this
section
are
applicable
to
all
22
certificates
of
insurance
issued
in
connection
with
property,
23
operations,
or
risks
located
in
this
state,
regardless
of
24
where
the
policyholder,
insurer,
insurance
producer,
or
person
25
requesting
or
requiring
the
issuance
of
a
certificate
of
26
insurance
is
located.
27
b.
A
certificate
of
insurance
or
any
other
document
or
28
correspondence
prepared,
issued,
requested,
or
required
in
29
violation
of
this
section
is
null
and
void.
30
6.
The
commissioner
of
insurance
may
do
all
of
the
31
following:
32
a.
Examine
and
investigate
the
activities
of
any
person
that
33
the
commissioner
reasonably
believes
has
been
or
is
engaged
in
34
an
act
or
practice
prohibited
under
this
section.
35
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b.
Enforce
the
provisions
of
this
section,
including
the
1
authority
to
issue
orders
to
cease
and
desist,
and
to
impose
a
2
penalty
in
an
amount
of
five
hundred
dollars
per
violation
to
3
be
collected
in
the
name
of
the
state
for
deposit
as
provided
4
in
section
505.7.
5
c.
Adopt
rules
pursuant
to
chapter
17A
to
administer
this
6
section.
7
Sec.
2.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
8
immediate
importance,
takes
effect
upon
enactment.
9
Sec.
3.
APPLICABILITY.
This
Act
applies
to
certificates
of
10
insurance
prepared,
issued,
requested,
or
required
beginning
11
ninety
days
after
the
effective
date
of
this
Act.
12
EXPLANATION
13
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
14
the
explanation’s
substance
by
the
members
of
the
general
assembly.
15
This
bill
relates
to
certificates
of
insurance
and
includes
16
penalties
and
effective
date
and
applicability
provisions.
17
The
bill
provides
that
a
“certificate
of
insurance”
is
a
18
document
or
instrument,
regardless
of
how
it
is
described,
that
19
is
prepared
or
issued
by
an
insurer
or
insurance
producer
as
20
evidence
of
property
and
casualty
insurance.
The
commissioner
21
of
insurance
is
directed
to
prohibit
the
use
of
a
certificate
22
of
insurance
that
is
unfair,
misleading,
or
deceptive,
or
that
23
violates
any
law
or
a
rule
adopted
by
the
commissioner.
24
A
certificate
of
insurance
is
not
a
policy
of
insurance
and
25
cannot
affirmatively
or
negatively
amend,
extend,
or
alter
26
coverage
or
confer
additional
rights
to
be
provided
by
an
27
insurance
policy.
28
The
bill
prohibits
a
person
from
preparing,
issuing,
29
requesting,
or
requiring
the
issuance
of
a
certificate
of
30
insurance
that
contains
false
or
misleading
information
31
about
the
policy
of
insurance
or
purports
to
affirmatively
or
32
negatively
amend,
extend,
or
alter
the
policy’s
coverage.
A
33
certificate
of
insurance
shall
not
warrant
that
the
policy
34
of
insurance
referenced
in
the
certificate
complies
with
the
35
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insurance
or
indemnification
requirements
of
a
contract
and
the
1
inclusion
of
a
contract
number
or
description
in
a
certificate
2
of
insurance
shall
not
be
interpreted
as
warranting
such
3
compliance.
4
A
person
is
entitled
to
notice
of
cancellation,
nonrenewal,
5
or
material
changes
in
an
insurance
policy
or
any
other
similar
6
notice
concerning
the
policy
only
if
the
person
has
such
rights
7
under
the
terms
of
the
policy
or
the
policy
endorsement.
These
8
rights
cannot
be
altered
by
a
certificate
of
insurance.
9
The
provisions
of
the
bill
are
applicable
to
all
10
certificates
of
insurance
issued
in
connection
with
property,
11
operations,
or
risks
located
in
this
state,
regardless
of
12
where
the
policyholder,
insurer,
insurance
producer,
or
person
13
requesting
or
requiring
the
issuance
of
a
certificate
of
14
insurance
is
located.
A
certificate
of
insurance
or
any
other
15
document
or
correspondence
prepared,
issued,
requested,
or
16
required
in
violation
of
the
bill’s
provisions
is
null
and
17
void.
18
The
commissioner
of
insurance
may
examine
and
investigate
19
the
activities
of
any
person
the
commissioner
reasonably
20
believes
has
been
or
is
engaged
in
an
act
or
practice
21
prohibited
under
the
bill;
enforce
the
provisions
of
the
bill
22
including
issuance
of
cease
and
desist
orders
and
imposition
of
23
a
penalty
of
$500
per
violation;
and
adopt
rules
pursuant
to
24
Code
chapter
17A
to
administer
the
bill.
25
The
bill
takes
effect
upon
enactment
and
is
applicable
26
to
certificates
of
insurance
prepared,
issued,
requested,
or
27
required
beginning
90
days
after
the
effective
date
of
the
28
bill.
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