ARC 0385D

ARC 0385D

INSURANCE DIVISION[191]

Adopted and Filed Emergency

Rulemaking related to contested cases

    The Insurance Division hereby adopts new Chapter 2506, “Contested Cases,” Iowa Administrative Code.

Legal Authority for Rulemaking

    This rulemaking is adopted under the authority provided in Iowa Code chapter 17A and 2026 Iowa Acts, Senate File 2463, section 5.

State or Federal Law Implemented

    This rulemaking implements, in whole or in part, Iowa Code chapter 17A and 2026 Iowa Acts, Senate File 2463, section 5.

Purpose and Summary

    This rulemaking modifies the Uniform Rules on Agency Procedure related to contested cases (7—Chapter 2506) to ensure that matters coming before the Division are governed by these administrative procedures and not the contested case provisions of 7—Chapter 2506. 

Reason for Adoption of Rulemaking Without
Prior Notice and Opportunity for Public Participation

    Pursuant to Iowa Code section 17A.4(3), the Division finds that notice and public participation are unnecessary or impractical because statute so provides. 2026 Iowa Acts, Senate File 2463, section 5, authorizes emergency rulemaking to provide for additions, exceptions, or amendments to the Uniform Rules on Agency Procedure.

Reason for Waiver of Normal Effective Date

    Pursuant to Iowa Code section 17A.5(2)“b”(1)(a), the Division also finds that the normal effective date of this rulemaking, 35 days after publication, should be waived and the rulemaking made effective on June 30, 2026, because 2026 Iowa Acts, Senate File 2463, section 5, authorizes emergency rulemaking to provide for additions, exceptions, or amendments to the Uniform Rules on Agency Procedure. The new Uniform Rules on Agency Procedure are effective as of January 13, 2026, which means there is an inconsistency between the contested case provisions of the Uniform Rules on Agency Procedure and the procedures that the Division requires to process the Division’s significant regulatory caseload. An earlier effective date will allow the Division to ensure any respondent coming before the Division has clear direction as to the appropriate procedural requirements.

Adoption of Rulemaking

    This rulemaking was adopted by Douglas Ommen, Iowa Insurance Commissioner, on June 3, 2026.

Concurrent Publication of Notice of Intended Action

    In addition to its adoption on an emergency basis, this rulemaking has been initiated through the normal rulemaking process and is published herein under Notice of Intended Action as ARC 0386D to allow for public comment.

Fiscal Impact

     This rulemaking has no fiscal impact to the State of Iowa.

Jobs Impact

    After analysis and review of this rulemaking, no impact on jobs has been found.

Waivers

    Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Division for a waiver of the discretionary provisions, if any, pursuant to 7—Chapter 2504.

Review by Administrative Rules Review Committee

    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

Effective Date

    This rulemaking will become effective on June 30, 2026.

    The following rulemaking action is adopted:

    ITEM 1.  Adopt the following new  191—Chapter 2506:

CHAPTER 2506

CONTESTED CASES

The Uniform Rules on Agency Procedure, 7—Chapters 2500 through 2506, are rules generally applicable to agencies pursuant to Iowa Code section 17A.24. Additions, exceptions, or amendments to the corresponding chapter are below.

191—2506.5(17A) Notice of hearing.

    2506.5(3) Timing of hearing. The hearing in a contested case shall be held within 90 days after the commencement of the contested case unless a continuance is granted by the presiding officer, or as otherwise permitted by law.

191—2506.13(17A) Discovery.

    2506.13(1) Discovery procedures. Discovery procedures applicable in civil actions are applicable in contested cases. Unless lengthened or shortened by these rules or by order of the presiding officer, time periods for compliance with discovery are as set forth in the Iowa Rules of Civil Procedure. No new discovery under Iowa Rules of Civil Procedure 1.509, 1.510, and 1.512 may be served within 40 days of the scheduled hearing. All discovery must be completed no later than 15 days before the prehearing conference.

    2506.13(5) Notice of discovery. Discovery is only permitted after a party has filed, pursuant to rule 7—2506.12(17A), a notice of discovery no later than 15 days after the filing of an answer unless extended by the presiding officer for good cause shown or by agreement of the parties. The notice of discovery shall be a general notice that the party is serving discovery. The notice should include a statement regarding the type of discovery being conducted and the due date.

    2506.13(6) Discovery responses. Parties must respond to discovery within 15 days of receipt unless the parties mutually agree there is good cause to lengthen the response period or by order of the presiding officer. Time periods for compliance with discovery may be lengthened or shortened by order of the presiding officer.

191—2506.17(17A) Continuances.

    2506.17(1)

    a.  Be made at the earliest possible time and no less than 14 days before the hearing, except in case of unanticipated emergencies or consent of all parties;

191—2506.26(17A) Final decision.

    2506.26(1) When the commissioner presides over the reception of evidence at the hearing, the commissioner’s decision is the final decision. When the commissioner does not preside over the reception of evidence, the presiding officer shall make a proposed decision. The proposed decision becomes the final decision of the agency when adopted by the commissioner or without further proceedings after the time provided in rule 7—2506.27(17A).

191—2506.32(17A) Summary cease and desist orders. When a statute authorizes action to be taken without a prior hearing, the commissioner’s order shall be sent to the last-known address of the party by return receipt requested unless the party is a licensee in which case the order shall be sent by restricted certified mail. The order shall include a brief statement of findings of fact, conclusions of law, and policy reasons for the decision; direct the person or insurer to cease and desist from engaging in the act or practice or to take other affirmative action as necessary, in the judgment of the commissioner, to comply with the statute; and state that the party will be afforded a contested case proceeding and a hearing if a request is filed with the commissioner within 30 days from the date that the order is issued unless a different time is specified by statute. The commissioner shall issue a notice of hearing no later than 30 days from the date of receipt of a timely request for a contested case proceeding and hearing. If a statute requires a hearing to be held following issuance of a summary order, the date and time of that hearing shall be set forth in the order. Summary orders shall remain effective during the pendency of proceedings.

191—2506.33(17A) Report by administrative law judge. Any administrative law judge serving as a presiding officer in a contested case shall report to the commissioner on a monthly basis all matters taken under advisement for longer than 60 days, together with an explanation of the reasons for the delay and an expected date of a proposed decision. A matter shall be reported when all hearings have been completed and the matter awaits the issuance of a proposed decision without further appearance of the parties or their attorneys, even though briefs or transcripts have been ordered but have not yet been filed. The report shall be due on the tenth day of each calendar month for the period ending with the last day of the preceding calendar month. The report shall be signed by the administrative law judge. All reports received will be filed with the division as records available for public inspection.

191—2506.34(17A) Settlement.

    2506.34(1) A party to a controversy that may culminate or has culminated in contested case proceedings may attempt settlement by complying with the procedures set forth in this subrule. No party shall be required to settle the controversy or contested case by submitting to settlement procedures.

    2506.34(2) Parties desiring settlement shall set forth in writing the various points of a proposed settlement, including findings of facts.

    2506.34(3) When signed by the parties and approved by the commissioner, a settlement shall represent final disposition of the matter.

    2506.34(4) When there is more than one party adverse to the division, a separate settlement between one party and the division is permissible.

    2506.34(5) A proposed settlement that is not accepted or signed by the parties and the commissioner shall not be admitted as evidence in the record of a contested case proceeding. Evidence of conduct or statements made in settlement negotiations likewise are not admissible. This rule does not require exclusion when the evidence is offered for another purpose, such as proving bias or prejudice of a witness, negating a contention of undue delay, or proving an effort to obstruct a criminal investigation or prosecution.

[Filed Emergency 6/3/26, effective 6/30/26]

[Published 6/24/26]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 6/24/26.