(1)
Purpose and definitions.
a.
Purpose. The purpose of this rule is to clarify the authorized
methods of delivery for notices of cancellation, nonrenewal or termination by
an insurer, issuer, employer, group policyholder, or carrier, so as to
implement the various policyholder protections intended by Iowa Code sections
509B.5,
513B.5,
514D.3,
515.125
and 515.129A and chapter 505B.
b.
Definitions. As used in Iowa Code section
505B.1
and this rule:
"Commissioner" means the Iowa insurance
commissioner or insurance division.
"Notice of cancellation, nonrenewal or
termination" means:
1. Notice
of termination of an insurance policy at the end of a term or before the
termination date;
2. Notice of a
decision or intention not to renew a policy; and
3. For purposes of notices required by Iowa
Code sections
509B.5,
513B.5,
514D.3,
515.125
and
515.129A
and chapter 505B, "notice of cancellation, nonrenewal or termination" includes
but is not limited to the following:
* An employer's or group policyholder's notification to
employees or members of the termination or substantial modification of the
continuation of an employer group accident or health policy pursuant to Iowa
Code section
509B.5;
* A carrier's advance notice to all affected small employers,
participants, and beneficiaries of its decision to discontinue offering a
particular type of small group health insurance plan pursuant to Iowa Code
section
513B.5(1)
"e"(2);
* An insurance company's notice of termination of an
individual accident and sickness policy, pursuant to rules promulgated pursuant
to Iowa Code section
514D.3;
* An insurance company's notice of forfeiture, suspension,
cancellation, or intention not to renew, pursuant to Iowa Code section
515.125;
or
* An insurance company's notice of cancellation of personal
lines policies or contracts pursuant to Iowa Code section
515.129A.
(2)
Scope. This rule shall
apply to all insurance companies holding a certificate of authority to transact
the business of insurance under the provisions of Iowa Code chapters 508, 512B,
515, and 520.
(3)
Delivery. For any notice of cancellation, nonrenewal or
termination by an insurer, employer, group policyholder, or carrier to be
effective, an insurer, employer, group policyholder, or carrier must, within
the time frame established by law, deliver the notice to the person to whom
notice is required to be provided either in person or by mail through the U.S.
Postal Service to the last-known address of the person to whom notice is
required to be provided. The use of U.S. Postal Service Intelligent
Mail® fulfills any requirement in the Iowa Code
sections cited in this subrule for certified mail or certificate of mailing as
proof of mailing.
(4)
Electronic transmissions. Notwithstanding the requirements of
subrule 35.9(3), if an insurer, issuer,
employer, group policyholder, or
carrier receives, pursuant to 191-subrule 4.21(4), approval from the
commissioner of a manner of electronic delivery of a notice of cancellation,
nonrenewal or termination of a policy, the approved manner shall satisfy the
notice requirements of Iowa Code sections
509B.5,
513B.5,
514D.3,
515.125
and
515.129A and chapter 505B.
This rule is intended to implement Iowa Code chapters 505B,
509B, 513B, 514D, and 515.
Notes
Iowa Admin. Code r. 191-35.9
Amended by
IAB
May 27, 2015/Volume XXXVII, Number 24, effective
7/1/2015
Amended by
IAB
February 17, 2016/Volume XXXVIII, Number 17, effective
3/23/2016
Amended by
IAB
March 14, 2018/Volume XL, Number 19, effective
4/18/2018
Amended by
IAB
June 1, 2022/Volume XLIV, Number 24, effective
7/6/2022
