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Key Federation Priorities Survive Iowa's Second Legislative Funnel

Monday, April 5, 2021

Several priority bills for the Federation survived last week’s second funnel deadline, making them eligible for consideration for the remainder of the Iowa legislative session. They include:

  • U.S. Treasuries (SF 320 and HF 236): These identical measures would rework a key provision in Iowa Code 511.8, providing more investment flexibility for Iowa-domiciled insurance companies and associations. The bills would allow such companies to reinvest cash reserves into U.S. Treasuries that mature beyond 270 days. Currently, this option is only available for U.S. Treasuries that mature in 270 days or less. 
  • Insurance Data Security Act (SF 553 and HF 719): The Iowa Insurance Division (IID) proposed these twin bills, which were based on NAIC model legislation and later revised to ensure they wouldn't create significant administrative hurdles for carriers. Those changes related to exclusivity, materiality, and HIPAA.
  • Smart Contracts and Distributed Ledger Technology (SF 541): While Iowa Code already allows digital records and recognizes electronically signed contracts, this bill would expand that provision to distributed ledger technology and smart contracts. The measure passed the Senate on March 9, and an amended version passed the House last Monday, March 29. It now goes back to the Senate which will consider the amended bill.
  • Insurance Omnibus (HF 838): This IID-backed bill includes a Federation-supported amendment addressing minimum interest rates to the deferred annuity standard nonforfeiture law. The amendment is based on NAIC model language. HF 838 also includes an amendment by Commerce Committee Chair Shannon Lundgren (R-Peosta). It would require the Legislative Council to appoint an interim committee to study health insurance mandates, including fiscal impacts on the state, carriers, and patient premiums. The House passed the amended measure in late March, and the Senate referred it to the Ways & Means Committee for further consideration. 
  • Elder Financial Exploitation (SF 583 and HF 839): Another IID proposal, these companion bills would grant the division authority to investigate elder financial exploitation and allow broker-dealers and investment advisers to file a report if they suspect such violations. It would also require IID to submit an annual report to the governor and the legislature. Both the House and Senate bill were placed on the Unfinished Business calendar, saving them from the funnel deadline.