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U.S. Treasuries Bill, Insurance Data Security Act Clear Iowa Senate, Go to Governor

Friday, April 9, 2021

One of the Federation’s top priority bills is heading to Governor Kim Reynolds' desk. The Senate unanimously approved HF 236 Wednesday. The measure would revise Iowa Code 511.8 to allow Iowa-domiciled insurance companies and associations to invest otherwise idle cash proceeds into short term loans (repurchase agreements) to reputable counterparties which are backed by safe, highly-liquid U.S. Treasuries of any maturity date.  Currently, this move is only allowed for Treasuries that mature in 270 days or less. The bill unanimously passed the House in February.

Also on Wednesday the Senate unanimously passed the Iowa Insurance Division's (IID) Insurance Data Security Act, (HF 719). The bill is based on NAIC model legislation, but was revised to ensure carriers wouldn't face significant administrative issues. The final version included changes related to exclusivity, materiality, HIPAA, and consumer notification requirements.

Both HF 236 and HF 719 now go to Governor Kim Reynolds for consideration.