§ 508C.18A — Notice to policyholders — summary of chapter and disclosure

Iowa § 508C.18A

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 508C: IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION

Text

1. a. A member insurer shall not deliver a policy or contract in Iowa to the policy owner,
§508C.18A, IOWA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION 22
contract owner, certificate holder, or enrollee unless a summary document describing the
general purposes and current provisions of this chapter and containing a disclosure in
compliance with subsection 2 is delivered to the policy owner, contract owner, certificate
holder, or enrollee at the same time.
b. Thesummarydocumentshallalsobeavailableuponrequestbyapolicyowner,contract
owner, certificate holder, or enrollee.
c. The distribution, delivery, contents, or interpretation of the summary document does
not guarantee that either the policy or contract, or the policy owner, the contract owner,
certificate holder, or enrollee, is covered in the event of the impairment or insolvency of a
member insurer.
d. The summary document shall be revised by the association and approved by the
commissioner as amendments to this chapter may require. Failure to receive a summary
document does not give the insurance policy or contract owner, certificate holder, enrollee,
or insured any greater rights than those stated in this chapter.
2. The summary document prepared pursuant to this section shall contain a clear and
conspicuous disclosure on its face. The commissioner shall establish the form and content of
the disclosure which shall do all of the following:
a. State the name and address of the association and the Iowa insurance division.
b. Prominently warn the policy or contract owner, certificate holder, or enrollee that the
association may not cover the policy or contract or, if coverage is available, it will be subject
tosubstantiallimitationsandexclusionsandconditionedoncontinuedresidenceinthisstate.
c. Statethetypesofinsurancepoliciesandcontractsforwhichtheassociationwillprovide
coverage.
d. State that the member insurer and the member insurer’s agents are prohibited by
law from using the existence of the association for the purpose of sales, solicitation, or
inducement to purchase any form of insurance or health maintenance organization coverage.
e. State that the policy owner, contract owner, certificate holder, or enrollee should not
rely on coverage from the association when selecting an insurer or health maintenance
organization.
f. Explain rights available and procedures for filing a complaint to allege a violation of any
provisions of this chapter.
g. Provide other information as directed by the commissioner, including but not limited
to sources for information about the financial condition of a member insurer provided that
the information is not proprietary and is subject to disclosure under chapter 22.
3. Amemberinsurershallretainevidenceofcompliancewiththeprovisionsofthissection
for as long as the policy or contract for which the notice is given remains in effect.