Commerce Committee – Week 7, 2020

FLOOR ACTION: 

SF 2131 – Reinsurance collateral requirements 

SF 2131 is a recommendation from the Iowa Insurance Division (IID). It puts Iowa among the first states to adopt necessary federal provisions. All states have five years to act to reduce reinsurance collateral requirements for certified non-U.S. licensed reinsurers that are licensed and domiciled in qualified jurisdictions or face potential federal preemption by the Federal Insurance Office under the federal Dodd-Frank Wall Street Reform and Consumer Protection Act. In exchange, the European Union and the United Kingdom will not impose local presence requirements on U.S. firms operating in the EU and the UK, and effectively must defer to U.S. group capital regulation for U.S. entities of EU-based and UK-based firms. The bill puts Iowa ahead in the insurance market, and alleviates concerns of insurance companies in the state, as well as for carriers looking to domicile in Iowa.
[2/25: 50-0]

SF 2132 – Life insurance companies legal reserve requirements

SF 2132 modifies the Iowa Code definition of highly effective hedging transactions to match the National Association of Insurance Commissioners accounting guidance. The companion bill is HF 2212
[2/24: 48-0 (Absent: Feenstra, Shipley)] 

SF 2137 – Mortgage extension filing requirements 

SF 2137 modifies a requirement that a mortgage extension agreement be filed in the same way as the original instrument (a.k.a. “ancient mortgages”). Currently, a mortgage (which is the underlying collateral for a debt instrument or promissory note) is enforceable for either 20 years or 10 years beyond any stated maturity in the debt instrument, as long as the extension is filed of record. The bill does not change any timeframes, but allows that the signing of the original mortgage authorizes the lender to file the extension on behalf of the borrower. This is compatible with real estate law by establishing the same procedure for extending financing statements under the Iowa Uniform Commercial Code. It will make loan administration for mortgages much easier for both financial institutions and borrowers.
[2/25: 50-0]

SF 2196 – Extension of Iowa Cell Siting Act

SF 2196 extends the future repeal date of the Iowa Cell Siting Act from July 1, 2022, to July 1, 2025. The extension is effective upon enactment.
[2/24: 50-0]

SF 2198 – Notification requirements for open-end credit accounts

SF 2198 modifies notification requirements for an open-end credit account to mirror federal regulations. A creditor may make a change in the terms of an open-end credit account applying to any balance incurred after the effective date of the change, only if the creditor delivers or mails to the consumer a written disclosure of the change at least 60 days before the effective date of the change.
[2/25: 50-0]