Iowa Insurance Commissioner Sends 27 Recommendations to Governor

The Iowa Insurance Division wants to address complaints from consumers and have more control over long-term care insurance.
State Insurance Commissioner Susan Voss has made 27 recommendations in a report sent to Gov. Chet Culver this week. In June, the governor ordered Voss to look into long-term care after Iowans complained of denied claims and sharply rising rates.

Some of the proposals have already been put in place, while others will require legislative approval. One of the measures already in use is a requirement for more education for insurance agents who sell long-term care policies.

Voss said she wants to do a variety of things, from creating a Web site for seniors to reviewing the conduct of long-term insurers.

Other proposals include:

Creating a consumer protection unit, which would handle consumer complaints for all types of insurance.

Teaming with other state agencies to teach consumers about financial and long-term care issues.

Allowing seniors and their families to meet with state officials to give them input on insurance issues

Standardizing policy terminology and definitions.

Voss’ agency was asked during hearings this summer to create a stand-alone consumer advocacy office similar to the utilities’ advocacy system, but she said that wouldn’t work with an industry that is open to so much more competition.

Steve Ackerson, executive director of the Iowa Health Care Association, said he favors the creation of a consumer protection unit.

“I think it’s important for Iowans to have an avenue to register a complaint,” he said.

Steven Warnstadt, D-Sioux City, is chairman of the Iowa Senate Commerce Committee, which oversees the insurance division. He said lawmakers will likely be asked to consider new laws and make changes to existing ones.

“Obviously there’s going to be legislative intent to make sure consumers receive the proper protection,” he said.