SF2196 • 2026

A bill for an act relating to a waiting period before settling motor vehicle insurance claims.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: WEBSTER
Last action: 2026-02-17
Official status: Subcommittee recommends amendment and passage.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act relating to a waiting period before settling motor vehicle insurance claims.

What This Bill Does

A bill for an act relating to a waiting period before settling motor vehicle insurance claims.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-02-17 Iowa Legislature
Subcommittee recommends amendment and passage.
2026-02-16 Iowa Legislature
Subcommittee Meeting: 02/17/2026 8:00AM Room 315.
2026-02-10 Iowa Legislature
Subcommittee: Webster, Blake, and Dickey. S.J. 244 .
2026-02-09 Iowa Legislature
Rereferred to Commerce. S.J. 221 .
2026-02-09 Iowa Legislature
Subcommittee: Webster, Guth, and Staed. S.J. 225 .
2026-02-04 Iowa Legislature
Introduced, referred to State Government. S.J. 197 .

Official Summary Text

A bill for an act relating to a waiting period before settling motor vehicle insurance claims.

Current Bill Text

Read the full stored bill text

Senate

File

2196

-

Introduced

SENATE

FILE

2196

BY

WEBSTER

A

BILL

FOR

An

Act

relating

to

a

waiting

period

before

settling

motor

1

vehicle

insurance

claims.

2

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

3

TLSB

6676XS

(2)

91

th/ns

S.F.

2196

Section

1.

Section

507B.4,

subsection

3,

paragraph

j,

Code

1

2026,

is

amended

by

adding

the

following

new

subparagraph:

2

NEW

SUBPARAGRAPH

.

(16)

Failing

to

wait

at

least

seventy-two

3

hours

before

settling

or

attempting

to

settle

a

motor

vehicle

4

claim

as

required

in

section

507B.10.

5

Sec.

2.

NEW

SECTION

.

507B.10

Waiting

period

before

settling

6

motor

vehicle

claims.

7

1.

An

insurer

shall

not

settle

or

attempt

to

settle

a

motor

8

vehicle

claim

during

the

first

seventy-two

hours

after

the

9

occurrence

of

the

event

giving

rise

to

the

claim.

10

2.

An

insurer’s

duty

to

promptly

settle

a

claim

is

tolled

11

during

the

mandatory

waiting

period

described

in

subsection

1.

12

EXPLANATION

13

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

14

the

explanation’s

substance

by

the

members

of

the

general

assembly.

15

This

bill

prohibits

an

insurer

from

settling

or

attempting

16

to

settle

a

motor

vehicle

claim

during

the

first

72

hours

after

17

the

occurrence

of

the

event

giving

rise

to

the

claim.

An

18

insurer’s

duty

to

promptly

settle

a

claim

is

tolled

during

the

19

mandatory

waiting

period.

20

A

person

who

violates

a

provision

of

the

bill

is

subject

21

to

entry

of

a

cease

and

desist

order,

may

be

ordered

by

the

22

commissioner

of

insurance

to

pay

a

civil

penalty

ranging

from

23

$1,000

to

$50,000

under

Code

section

507B.7,

and

if

the

person

24

has

a

license

to

operate

the

person’s

business,

the

license

is

25

subject

to

suspension

or

revocation.

26

-1-

LSB

6676XS

(2)

91

th/ns

1/

1