Insurers have through Sept. 4, 2015 to comment on proposed rules in Iowa amending requirements regarding notification to policyholders of the cancellation, non-renewal, or termination of an insurance policy.
As reported in an earlier Advisory, insurers in Iowa are allowed to transmit policy documents electronically, expect for notices of cancellation, non-renewal, or termination of coverage. The latest proposal, following legislative action earlier this year, would allow insurers to request a waiver from that restriction.
To gain approval of a waiver, a proposed method of electronic notification would have to provide for the intended recipient's consent to have termination notices sent electronically and allow for verification of receipt by the intended recipient. The insurer would have to maintain notices of consent, transmission, and receipt of the notices.
Under the proposal, Iowa's insurance commissioner could, upon request by an insurer, maintain the confidentiality of information related to termination notices if the release of documents or materials would disclose trade secrets.
A hearing on the proposed rules is scheduled for Sept. 3 in Des Moines; the proposed effective date for the rules is Nov. 4, 2015.
AAIS Advisory notices are posted periodically to announce AAIS product developments, and to provide news items that are relevant to our program users. Advisory notices are news summaries that paraphrase documents which should be consulted directly for complete, authoritative information.