HF3255 Bill Summary

• Supplemental appropriations of $1,347,000 in fiscal year 2023 to the Department of Commerce for financial services ($300,000), insurance ($525,000), enforcement and examinations ($522,000), and base funding for licensing disqualification programs across multiple agencies.

• Expands Commerce Fraud Bureau authority to investigate offenses with nexus to insurance-related or financial crimes (not just insurance fraud), and transfers $870,000 to the insurance fraud prevention account for five additional peace officers with a base of $811,000 ongoing.

• Reforms insurance examination processes by limiting examination duration to 18 months, requiring informal resolution attempts, establishing multistate exam protocols, extending examination cost billing timelines to 60 days, and mandating annual legislative reporting on pending market conduct exams.

• Creates licensing disqualification and preliminary application process allowing individuals with criminal records to obtain advance determinations of license eligibility before full application, with applicable fees and state licensor reporting requirements.

• Establishes new law (60B.335) protecting federal home loan bank rights regarding collateral pledged by insurer-members during delinquency proceedings and modifies insurance rebate and incentive restrictions to clarify permissible value-added products and services.