Bills › 89th General Assembly
SSB 1183
Topics:Business & economyInsurance
Where it is now
- Done: IntroducedFebruary 10, 2021
- Done: SubcommitteeFebruary 10, 2021
- Done: Senate committeeFebruary 24, 2021
- Skipped: Passes the SenateContinued as SF 460
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Became SF 460 → Its progress continues under the new number. Go to SF 460 What’s a funnel?
What’s in it
This bill establishes the “Iowa Private Flood Insurance Act” to foster innovation in private flood insurance, allow insurers to test private flood insurance products in the market, and to provide consumers with more flood insurance options. “Private flood insurance” is defined in the bill as a personal lines or commercial policy issued by an insurer to provide coverage to the policyholder for the peril of flood. “Flood” is also defined in the bill. _____ substantially similar to the mortgage interest clause in a standard flood insurance policy (SFIP) issued under the NFIP, it advises the policyholder of the process for filing suit over a denied claim, it contains cancellation provisions as restrictive as the cancellation provisions in an SFIP issued under the NFIP, and all deductibles and policy limits are prominently displayed on the policy declarations page or the face page of the policy.
Read the full explanation
“Standard flood insurance policy” is defined in the bill as a private flood insurance policy that provides coverage that is at least equivalent to the coverage provided under a standard flood insurance policy issued under the national flood insurance program for the same type of property, including when considering deductibles, exclusions, and conditions offered by the insurer.25(c)(3)(iii)(A-D). An admitted insurer that writes private flood insurance must establish and file rates in compliance with all applicable provisions of Code chapter 515F and, as detailed in the bill, receive prior approval from the commissioner of insurance (commissioner) on form filings. An insurance producer must provide a written notice to an applicant for private flood insurance whose property is located in a special flood hazard area and is covered by flood insurance under the NFIP before the producer places private flood insurance with an insurer or an eligible surplus lines insurer for the applicant’s property. “Special flood hazard area” is defined in the bill. _____ applicant may be charged the full-risk rate and no longer qualify for a subsidized rate under the NFIP. §4012a(a) to be a period of continuous coverage. The commissioner is required to notify the Iowa Code editor upon the occurrence of this condition. The bill permits a surplus lines producer, after conducting a diligent search that confirms that the full amount of private flood insurance, or a specific type of private flood insurance, cannot be obtained from an insurer, to place a policy providing flood coverage with an eligible surplus lines insurer. The bill requires the surplus lines producer and the eligible surplus lines insurer to comply with the applicable provisions of Code chapter 515I. An insurer that writes private flood insurance may certify that a policy issued by the insurer meets or exceeds flood coverage provided under the NFIP by including language as specified in the bill on a declarations page or other policy documentation provided to a policyholder. The insurer may reference the certification in marketing materials, and communications with insurance producers, lending institutions, policyholders, and prospective policyholders. The requirements for renewal, nonrenewal, and cancellation of private flood insurance are detailed in the bill. _____ insurance producer, a lending institution, a policyholder, or a prospective policyholder commits an unfair or deceptive act or practice, and is subject to orders and penalties under Code chapter 507B. The bill requires that an admitted insurer, at least days prior to writing private flood insurance, notifies the commissioner and files a plan of operation and financial projections. An insurer must also notify the commissioner within days of exiting the private flood insurance market. An insurer that writes private flood insurance must comply with all applicable requirements of Code Title XIII, subtitle 1, and is subject to examination pursuant to Code chapter 507. The bill prohibits an insurer from refusing to issue or renew private flood insurance, or from canceling private flood insurance, based on an applicant’s or a policyholder’s age, sex, race, color, religion, national origin, marital status, income level, occupation, military status, or creed. An insurer may, however, limit the issuance of private flood insurance to individuals who have engaged in, or are engaged in, a particular profession or occupation, and may refuse to issue or renew private flood insurance due to a property’s exposure to flood. The commissioner may adopt rules pursuant to Code chapter 17A as necessary to administer the bill. The bill applies calendar days after the date of enactment to private flood insurance initially delivered, issued for delivery, continued, or renewed in this state on or after the date of enactment. The bill applies 180 calendar days after the date of enactment to private flood insurance that has been initially delivered, issued for delivery, continued, or renewed in this state prior to the date of enactment.
Changed since by amendment H-1114; see Amendments.
Senate subcommittee
Named February 10, 2021. On February 16, 2021 it recommended amendment and passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Iowa Code it changes
Creates§515J.1§515J.10§515J.11§515J.12§515J.13§515J.14§515J.15§515J.16§515J.2§515J.3§515J.4§515J.5§515J.6§515J.7§515J.8§515J.9
Lobbying
7 for · 0 against · 13 undecided · Who →
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89th General Assembly