Relating to the insurance fraud bureau, criminal history checks for licenses granted by the insurance division, and resolving inconsistencies

The bill does not apply to current Iowa producers in good standing. The bill authorizes the commissioner to require a state and national criminal history check on each applicant that applies for an initial license in Iowa as a resident insurance producer, an initial license or an additional line of authority under a nonresident insurance producer license if a state and national criminal history check has not already been completed, an initial license as a viatical settlement provider or a viatical settlement broker in the state, and an initial license as a public adjuster in the state. In addition, the commissioner may require a state and national criminal history check for a producer, a public adjuster, or a viatical settlement provider or viatical settlement broker that applies for a renewal, reinstatement, or reissuance of a license that has been revoked or suspended. The bill provides that by submitting fingerprints an applicant is authorizing the commissioner to submit the fingerprints to the department of public safety for a state criminal history check and for submission to the federal bureau of investigation for a national criminal history check. The applicant is also authorizing the commissioner to receive the results of the state and national criminal history check. The bill authorizes the commissioner to contract with a third-party vendor for the collection and submission of applicants’ fingerprints. The commissioner may agree to reasonable fees to be charged by the vendor and may require the fee to be paid by an applicant directly to the third-party vendor. The bill provides that the results of an applicant’s criminal history check are not a public record under Code chapter 22. An applicant’s fingerprints and criminal history check are only subject to a subpoena issued in a criminal action or investigation, shall be confidential by law and privileged, and are not subject to discovery or admissible in a private civil action. The bill requires any person operating as either a viatical settlement provider or viatical settlement broker to be licensed and no longer allows an exception for a life insurance producer licensed for at least one year as a resident producer in this state, or the producer’s home state, to operate as a viatical settlement broker. The bill no longer permits a license to be issued to a legal entity, as is currently allowed by law, to operate as either a viatical settlement provider or viatical settlement broker.