Read the full stored bill text
Senate
File
2233
-
Introduced
SENATE
FILE
2233
BY
WEBSTER
A
BILL
FOR
An
Act
relating
to
insurer’s
requests
for
information
and
1
claim
timelines,
and
property
and
casualty
insurer’s
loss
2
calculations,
adjustments,
payments
of
claims,
and
policy
3
terms.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
5777XS
(2)
91
nls/ko
S.F.
2233
Section
1.
Section
507B.4,
subsection
3,
Code
2026,
is
1
amended
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
w.
Insured
——
requests
for
information.
3
Refusing
to
provide
requested
information
to
an
insured
in
4
accordance
with
section
507B.4D
on
the
basis
that
the
requested
5
information
is
privileged,
if
the
information
is
later
6
determined
not
to
be
privileged.
7
Sec.
2.
NEW
SECTION
.
507B.4D
Insured
——
requests
for
8
information.
9
1.
As
used
in
this
section,
unless
the
context
otherwise
10
requires:
11
a.
“Insured”
means
a
person
covered
under
an
insurance
12
policy.
13
b.
“Insurer”
means
a
person
licensed
to
transact
the
14
business
of
insurance
in
this
state.
15
c.
“Person”
means
an
individual,
corporation,
limited
16
liability
company,
business
trust,
estate,
trust,
partnership
17
or
association,
or
any
other
legal
entity.
18
2.
Except
as
provided
under
subsection
3,
an
insurer
shall
19
provide,
within
fifteen
calendar
days
of
receipt
of
a
request,
20
the
following
information
to
an
insured
if
requested
by
the
21
insured:
22
a.
A
certified
copy
of
the
insured’s
insurance
policy.
23
b.
A
copy
of
a
claim
application
filed
by
the
insured.
24
c.
The
name
and
contact
information
of
any
person
involved
25
on
the
insurer’s
behalf
with
a
claim
filed
by
the
insured.
26
d.
An
accounting
of
the
amount
paid
on
a
claim
filed
by
the
27
insured.
28
e.
An
accounting
of
the
reserve
set
on
a
claim
filed
by
the
29
insured.
30
f.
A
copy
of
internal
communications,
notes,
or
memos
31
related
to
a
claim
filed
by
the
insured,
including
internal
32
communications,
notes,
or
memos
of
a
third-party
administrator
33
or
independent
adjusting
firm.
34
g.
A
copy
of
communications
related
to
a
claim
filed
by
the
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insured
between
the
insurer
and
any
other
party.
1
h.
A
copy
of
all
information
in
the
possession
of
the
2
insurer
related
to
a
claim
filed
by
the
insured,
including
3
information
submitted
by
the
insured
to
the
insurer,
and
4
information
the
insurer
independently
gathered.
5
i.
Other
information
required
to
be
provided
to
an
insured
6
upon
request
pursuant
to
rules
adopted
by
the
commissioner.
7
3.
An
insurer
shall
not
be
required
to
provide
privileged
8
information
to
an
insured.
If
an
insurer
refuses
to
provide
9
information
to
an
insured
on
the
basis
that
the
information
10
is
privileged,
the
insurer
shall
provide
the
insured
with
a
11
written
explanation
for
the
basis
of
the
privilege.
If
the
12
information
is
later
determined
not
to
be
privileged,
the
13
insurer’s
prior
refusal
to
provide
the
requested
information
14
shall
constitute
an
unfair
method
of
competition
and
unfair
or
15
deceptive
act
or
practice
under
section
507B.4.
16
Sec.
3.
NEW
SECTION
.
507B.4E
Insurance
policies
——
17
prohibited
deadlines
and
statutes
of
limitation.
18
An
insurer
shall
not
include
any
of
the
following
in
an
19
insurance
policy:
20
1.
A
deadline
for
an
insured
to
provide
notice
of
a
loss
21
to
the
insurer
if
the
insured
could
not
have
reasonably
known
22
about
the
loss,
and
the
insurer
will
not
be
prejudiced
by
a
23
delay
in
notice.
24
2.
If
the
insurance
policy
provides
for
replacement
cost,
25
a
deadline
for
the
insured
to
recover
the
depreciation
amount
26
that
is
less
than
one
year
from
the
date
that
the
insurer
made
27
the
most
recent
actual
cash
value
payment
to
the
insured.
An
28
insurer
shall
provide
written
notice
to
the
insured
of
the
29
deadline
for
the
insured
to
recover
the
depreciation
amount
30
no
later
than
ninety
calendar
days
prior
to
the
date
of
the
31
deadline.
32
3.
Language
that
imposes
a
statute
of
limitations
for
an
33
insured
to
file
a
lawsuit
against
the
insurer
for
wrongfully
34
denying
a
claim
submitted
by
the
insured
to
less
than
five
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years
from
the
date
of
the
loss
that
is
the
subject
of
the
claim
1
that
the
insurer
denied,
or
less
than
two
years
from
the
date
2
of
the
denial
of
the
claim,
whichever
is
later.
An
insurer
3
shall
provide
written
notice
to
the
insured
of
the
statute
of
4
limitations
deadline
for
the
insured
to
file
a
lawsuit
related
5
to
a
denied
claim
no
later
than
ninety
calendar
days
prior
to
6
the
date
of
the
deadline.
7
Sec.
4.
NEW
SECTION
.
515.116
Loss
calculations
——
property
8
insurance
claims.
9
1.
Definitions.
As
used
in
this
section,
unless
the
context
10
otherwise
requires:
11
a.
“Actual
cash
value”
means
the
replacement
cost
of
12
property
at
the
time
of
the
loss,
less
depreciation,
if
13
any.
If
the
replacement
cost
of
property
at
the
time
of
the
14
loss,
less
depreciation,
cannot
be
ascertained,
a
person
may
15
determine
the
actual
cash
value
of
property
using
the
market
16
value,
diminished
value,
or
other
evidence
or
information
to
17
determine
the
actual
cash
value
of
property
at
the
time
of
the
18
loss.
19
b.
“Commissioner”
means
the
commissioner
of
insurance.
20
c.
“Insurance
policy”
means
a
property
insurance
policy
21
issued
by
an
insurer.
22
d.
“Insured”
means
a
named
insured
covered
under
an
23
insurance
policy.
24
e.
“Insurer”
means
a
person
to
whom
the
commissioner
of
25
insurance
has
issued
a
property
insurance
producer
license.
26
f.
“Line
of
sight”
means
any
location
a
reasonable
person
27
would
stand,
on
the
ground
or
any
floor
of
an
insured’s
damaged
28
structure,
to
view,
without
obstruction
or
the
use
of
aerial
29
tools
or
technology,
the
damaged
area
of
the
interior
or
30
exterior
of
the
damaged
structure
from
a
reasonable
distance.
31
“Line
of
sight”
is
not
limited
to
a
view
of
the
insured’s
32
damaged
structure
from
the
location
at
which
the
damage
33
occurred.
34
g.
“Reasonable
distance”
means,
for
exterior
repair
or
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replacement,
a
vantage
point
approximately
thirty
feet
from
1
where
the
repair
or
replacement
is
to
occur.
A
“reasonable
2
distance”
for
interior
repair
or
replacement
means
a
vantage
3
point
approximately
five
feet
from
where
the
repair
or
4
replacement
is
to
occur.
Based
on
a
particular
property,
5
“reasonable
distance”
may
be
determined
to
be
greater
than
or
6
less
than
thirty
feet
for
exterior
repair,
or
greater
than
or
7
less
than
five
feet
for
interior
repair.
8
h.
“Reasonably
similar
appearance”
means
if,
within
a
9
line
of
sight,
a
person
viewing
the
repaired
or
replaced
10
property
would
find
the
property
to
resemble
the
property’s
11
preloss
condition,
or
would
find
the
repaired
or
replaced
12
property
indistinguishable
from
the
remaining
original
13
property.
Whether
a
replacement
results
in
a
reasonably
14
similar
appearance
is
a
fact-specific
determination
made
15
on
a
case-by-case
basis
considering
the
totality
of
the
16
circumstances.
17
2.
Replacement
cost.
For
an
insurance
policy
providing
for
18
the
adjustment
and
settlement
of
first-party
losses
based
on
19
replacement
cost,
all
of
the
following
shall
apply:
20
a.
When
a
loss
requires
repair
or
replacement
of
a
product
21
or
part,
consequential
physical
damage
incurred
during
the
22
repair
or
replacement
of
the
product
or
part
shall
be
included
23
in
the
calculation
of
loss.
The
insured
shall
not
be
required
24
to
pay
for
betterment
or
other
costs,
except
for
any
applicable
25
deductible.
26
b.
(1)
When
a
loss
requires
repair
or
replacement
of
a
27
product
or
part,
the
insurer
shall
repair
or
replace
as
much
28
of
the
product
or
part
as
is
necessary
to
achieve
a
reasonably
29
similar
appearance.
30
(2)
An
insurer
shall
have
the
burden
to
prove
that
a
31
proposed
repair
or
replacement
of
a
product
or
part
will
32
achieve
a
reasonably
similar
appearance,
after
the
insurer
33
conducts
a
comparison
of
the
original
product
or
part
to
the
34
proposed
repair
or
replacement
product
or
part.
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(3)
As
necessary
to
determine
whether
a
proposed
repair
1
or
replacement
will
achieve
a
reasonably
similar
appearance,
2
an
insurer
may
compel
an
insured
to
complete
the
repair
or
3
replacement
at
the
expense
of
the
insurer.
The
insured
shall
4
not
bear
any
cost
over
the
insured’s
applicable
deductible,
if
5
any.
6
(4)
An
insurer
that
includes,
in
an
insurance
policy
7
providing
for
the
adjustment
and
settlement
of
first-party
8
losses
based
on
replacement
cost,
an
endorsement
that
excludes
9
or
limits
the
requirement
for
a
repair
or
replacement
product
10
or
part
to
achieve
a
reasonably
similar
appearance
shall
not
11
be
subject
to
subparagraphs
(1)
through
(3),
provided
the
12
endorsement
meets
all
of
the
following
requirements:
13
(a)
The
endorsement
is
approved
by
the
commissioner.
14
(b)
The
endorsement
is
listed
in
the
insurance
policy
15
declarations
page.
16
(c)
The
endorsement
results
in
a
premium
discount
for
the
17
insured.
18
(d)
The
endorsement
includes
a
disclosure
statement,
19
in
twelve
point
or
larger
bold
font,
informing
the
insured
20
that
the
insured
is
forfeiting
the
rights
provided
under
21
subparagraphs
(1)
through
(3).
22
(e)
The
endorsement
is
signed
by
the
insured.
23
c.
(1)
When
a
loss
requires
repair
or
replacement
of
a
24
building,
the
insurer
shall
repair
or
replace
as
much
of
the
25
building
as
is
necessary
to
bring
the
building
into
compliance
26
with
the
building
code
adopted
by
the
jurisdiction
in
which
27
the
damaged
building
is
located.
If
the
jurisdiction
has
not
28
adopted
a
building
code,
the
insurer
shall
repair
or
replace
as
29
much
of
the
building
as
is
necessary
to
bring
the
building
into
30
compliance
with
the
state
building
code.
The
insured
shall
31
not
bear
the
cost
of
betterment
or
any
cost
except
for
the
32
applicable
deductible,
if
any.
33
(2)
An
insurer
that
includes,
in
an
insurance
policy
34
providing
for
the
adjustment
and
settlement
of
first-party
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losses
based
on
replacement
cost,
an
endorsement
that
excludes
1
or
limits
the
requirement
for
a
repair
or
replacement
of
a
2
building
to
comply
with
the
building
code
adopted
by
the
3
jurisdiction
in
which
the
damaged
building
is
located
or
the
4
state
building
code
shall
not
be
subject
to
subparagraph
5
(1)
provided
the
endorsement
meets
all
of
the
following
6
requirements:
7
(a)
The
endorsement
is
approved
by
the
commissioner.
8
(b)
The
endorsement
is
listed
in
the
insurance
policy
9
declarations
page.
10
(c)
The
endorsement
results
in
a
premium
discount
for
the
11
insured.
12
(d)
The
endorsement
includes
a
disclosure
statement,
13
in
twelve
point
or
larger
bold
font,
informing
the
insured
14
that
the
insured
is
forfeiting
the
rights
provided
under
15
subparagraph
(1).
16
(e)
The
endorsement
is
signed
by
the
insured.
17
d.
(1)
The
insurance
policy
shall
not
include
a
roof
18
payment
schedule,
or
a
similar
provision,
intended
to
reduce
19
the
insurer’s
liability
for
damage
to
roof
surfaces
or
to
20
property
otherwise
insured
at
a
replacement
cost.
21
(2)
An
insurer
that
includes,
in
an
insurance
policy
22
providing
for
the
adjustment
and
settlement
of
first-party
23
losses
based
on
replacement
cost,
an
endorsement
that
excludes
24
or
limits
the
insurer’s
liability
for
damage
to
roof
surfaces
25
or
to
property
otherwise
insured
at
a
replacement
cost
shall
26
not
be
subject
to
subparagraph
(1),
provided
the
endorsement
27
meets
all
of
the
following
requirements:
28
(a)
The
endorsement
is
approved
by
the
commissioner.
29
(b)
The
endorsement
is
listed
in
the
insurance
policy
30
declarations
page.
31
(c)
The
endorsement
results
in
a
premium
discount
for
the
32
insured.
33
(d)
The
endorsement
includes
a
disclosure
statement,
34
in
twelve
point
or
larger
bold
font,
informing
the
insured
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that
the
insured
is
forfeiting
the
rights
provided
under
1
subparagraph
(1).
2
(e)
The
endorsement
is
signed
by
the
insured.
3
e.
The
replacement
cost
of
damaged
property
shall
be
4
calculated
based
on
the
replacement
cost
on
the
date
that
the
5
damaged
property
is
repaired
or
replaced.
6
3.
Actual
cash
value.
For
an
insurance
policy
providing
7
for
adjustment
and
settlement
of
first-party
losses
based
on
8
actual
cash
value,
if
the
actual
cash
value
of
a
claim
is
9
not
calculated
as
the
replacement
cost
less
depreciation,
10
the
insurer
shall
provide
a
copy
of
the
claim
file
worksheet
11
detailing
all
deductions
for
depreciation
and
a
detailed
12
written
explanation
that
describes
the
manner
in
which
13
depreciation
was
calculated
and
the
actual
cash
value
14
determined.
15
4.
Total
loss.
For
property
covered
by
an
insurance
16
policy
that
is
wholly
destroyed
or
damaged
and
cannot
be
17
repaired,
or
the
cost
of
repair
exceeds
the
value
of
the
18
property,
the
insurer
shall
pay
the
insured
the
limit
of
the
19
insurance
policy.
The
insurer
shall
not
withhold
the
cost
of
20
depreciation
or
the
insured’s
deductible.
21
5.
Cosmetic
damage.
22
a.
An
insurance
policy
shall
not
include
a
provision
that
23
requires
covered
property
damage
to
satisfy
certain
criteria
in
24
order
to
exclude
or
limit
the
insurer’s
liability
for
cosmetic
25
or
nonfunctional
damages.
26
b.
An
insurer
that
includes
an
endorsement
insurance
policy
27
that
establishes
criteria
that
covered
property
must
satisfy
28
in
order
for
the
insured
to
receive
cosmetic
or
nonfunctional
29
damages
shall
not
be
subject
to
this
subsection
provided
the
30
endorsement
meets
all
of
the
following
requirements:
31
(1)
The
endorsement
is
approved
by
the
commissioner.
32
(2)
The
endorsement
is
listed
in
the
insurance
policy
33
declarations
page.
34
(3)
The
endorsement
results
in
a
premium
discount
for
the
35
-7-
LSB
5777XS
(2)
91
nls/ko
7/
15
S.F.
2233
insured.
1
(4)
The
endorsement
includes
a
disclosure
statement,
in
2
twelve
point
or
larger
bold
font,
informing
the
insured
that
3
the
insured
is
forfeiting
the
rights
provided
under
paragraph
4
“a”
.
5
(5)
The
endorsement
is
signed
by
the
insured.
6
Sec.
5.
NEW
SECTION
.
515.117
Adjustment
and
payment
of
7
claims.
8
1.
Definitions.
As
used
in
this
section,
unless
the
context
9
otherwise
requires:
10
a.
“Commissioner”
means
the
commissioner
of
insurance.
11
b.
“Insurance
policy”
means
a
property
insurance
policy
12
issued
by
an
insurer.
13
c.
“Insured”
means
a
named
insured
covered
under
an
14
insurance
policy.
15
d.
“Insurer”
means
a
person
to
whom
the
commissioner
of
16
insurance
has
issued
a
property
insurance
producer
license.
17
2.
Acknowledgment
of
claim.
No
later
than
fifteen
business
18
days
after
the
date
an
insurer
receives
notice
of
a
claim,
19
or
notice
that
a
claim
has
been
received
by
an
agent
of
the
20
insurer,
the
insurer
shall
do
all
of
the
following:
21
a.
Provide
acknowledgment
to
the
insured
that
the
claim
has
22
been
received.
If
the
acknowledgment
is
not
made
in
writing,
23
the
insurer
shall
make
a
record
specifying
the
date,
manner,
24
and
content
of
the
acknowledgment.
25
b.
Commence
review
or
investigation
of
the
claim
as
26
necessary.
27
c.
Request
that
the
insured
provide
any
item,
statement,
28
or
form
related
to
the
claim,
including
any
proof
of
loss
form
29
required
by
the
insurer,
necessary
for
review
or
investigation
30
of
the
claim.
The
insurer
shall
provide
the
insured
with
any
31
form
or
instruction
necessary
for
the
insured
to
provide
such
32
item,
statement,
or
form.
The
insurer
may
request
additional
33
items,
statements,
or
forms
related
to
the
claim
during
the
34
course
of
the
review
or
investigation.
35
-8-
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5777XS
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15
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2233
3.
Communications.
An
insurer
shall
reply
within
fifteen
1
business
days
from
the
date
of
receipt
to
a
communication
2
from
an
insured
to
which
an
insured
would
reasonably
expect
3
a
response
from
the
insurer.
The
insurer’s
response
shall
4
address
all
material
parts
of
the
insured’s
communication.
5
4.
Acceptance
or
denial
of
claim.
6
a.
Except
as
provided
by
paragraph
“b”
,
an
insurer
shall
7
notify
an
insured
in
writing
of
the
acceptance
or
denial
of
8
a
claim
no
later
than
thirty
calendar
days
from
the
date
of
9
receipt
of
a
properly
completed
proof
of
loss
form.
10
b.
If
there
is
a
reasonable
basis,
supported
by
specific
11
evidence,
for
an
insurer
to
believe
that
an
insured
12
fraudulently
caused
or
contributed
to
a
claim,
an
insurer
shall
13
do
all
of
the
following:
14
(1)
Notify
the
insured,
no
later
than
thirty
calendar
days
15
from
the
date
of
receipt
of
a
properly
completed
proof
of
loss
16
form,
of
the
reason
additional
time
is
required
to
investigate
17
the
claim.
18
(2)
Notify
the
insured
every
thirty
calendar
days
following
19
the
notice
under
subparagraph
(1)
of
the
reason
additional
time
20
is
required
to
investigate
the
claim.
21
(3)
Within
a
reasonable
amount
of
time
after
completing
an
22
investigation
of
the
claim
and
making
a
determination
whether
23
the
insured
fraudulently
caused
or
contributed
to
the
claim,
24
notify
the
insured
of
the
acceptance
or
denial
of
the
claim.
25
c.
If
any
part
of
a
claim
is
denied
by
an
insurer,
the
26
notice
required
by
paragraph
“a”
or
paragraph
“b”
,
subparagraph
27
(3),
must
include
a
complete
and
detailed
explanation
of
the
28
reason
for
the
denial
and
include
a
citation
to
applicable
29
insurance
policy
language
or
law
that
is
the
basis
for
the
30
denial.
If
a
denial
of
a
claim,
in
part
or
in
full,
is
based
31
on
a
written
report
or
other
documentation
of
the
claim
by
the
32
insurer
or
by
an
agent
of
the
insurer,
the
written
report
or
33
other
documentation
shall
be
provided
to
the
insured.
34
5.
Inspection
of
damaged
property.
35
-9-
LSB
5777XS
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15
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2233
a.
If,
prior
to
an
insurer
accepting
or
denying
a
claim,
1
inspection
of
damaged
property
that
is
the
subject
of
a
claim
2
is
required,
the
insurer
shall
schedule
and
complete
the
3
inspection
no
later
than
thirty
calendar
days
from
the
date
of
4
receipt
of
a
properly
completed
proof
of
loss
form.
5
b.
An
insurer
shall
complete
an
inspection
of
damaged
6
property
within
the
time
limit
under
paragraph
“a”
unless
7
an
act
of
nature
prevents
the
insurer
from
completing
the
8
inspection.
If
an
inspection
is
delayed
the
insurer
shall
9
notify
the
insured
within
the
time
limit
under
paragraph
“a”
,
10
and
every
thirty
calendar
days
thereafter
until
an
inspection
11
is
completed,
of
the
reason
the
inspection
is
delayed
or
12
continuing
to
be
delayed.
13
6.
Claim
payment.
14
a.
Except
as
otherwise
provided
by
this
section,
if
an
15
insurer
accepts
liability
for
all
or
part
of
a
claim,
the
16
insurer
shall
pay
the
portion
of
the
claim
for
which
liability
17
has
been
accepted
not
later
than
ten
business
days
after
the
18
date
liability
was
accepted.
19
b.
If
payment
of
all
or
part
of
a
claim
is
conditioned
on
20
the
performance
of
an
act
by
the
insured,
the
insurer
shall
pay
21
the
portion
of
the
claim
for
which
liability
has
been
accepted
22
not
later
than
ten
business
days
after
the
act
is
performed
by
23
the
insured.
24
c.
This
subsection
shall
not
apply
if,
through
litigation,
25
arbitration,
mediation,
or
appraisal,
it
is
discovered
that
any
26
of
the
following
are
true:
27
(1)
The
damaged
property
that
is
the
subject
of
a
claim
does
28
not
belong
to
the
insured
that
filed
the
claim,
such
that
the
29
insured
did
not
suffer
any
loss.
30
(2)
The
insured’s
insurance
policy
does
not
provide
31
coverage
for
the
damaged
property
that
is
the
subject
of
a
32
claim.
33
(3)
The
claim
is
otherwise
invalid.
34
7.
Penalties.
35
-10-
LSB
5777XS
(2)
91
nls/ko
10/
15
S.F.
2233
a.
If
an
insurer
that
accepts
all
or
part
of
a
claim
1
violates
subsection
4,
5,
or
6,
the
insurer
shall
be
liable
2
for,
in
an
action
brought
by
an
insured
against
the
insurer
3
in
which
the
insured
prevails,
the
portion
of
the
claim
for
4
which
the
insurer
accepted
liability
plus
simple
interest
at
5
an
annual
rate
of
eighteen
percent
on
the
portion
of
the
claim
6
not
adjusted
or
paid
pursuant
to
this
section,
the
insured’s
7
cost
of
litigation,
including
reasonable
attorney
fees,
and
8
any
other
damages
provided
by
law.
Simple
interest
on
a
claim
9
shall
begin
accruing
on
the
date
of
the
insurer’s
violation
and
10
shall
accrue
until
the
date
the
underlying
claim
and
interest
11
is
paid
in
full
by
the
insurer.
12
b.
This
subsection
shall
not
be
construed
to
prevent
or
13
replace
an
award
of
prejudgment
interest
or
any
other
damages
14
as
provided
by
law.
15
8.
Public
adjusters.
16
a.
An
insurer
shall
not
include
a
provision
in
an
insurance
17
policy
that
prohibits
an
insured
from
contracting
with
a
public
18
adjuster.
19
b.
For
purposes
of
this
subsection,
“public
adjuster”
means
20
the
same
as
defined
in
section
522C.2.
21
EXPLANATION
22
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
23
the
explanation’s
substance
by
the
members
of
the
general
assembly.
24
This
bill
relates
to
insurer’s
requests
for
information
25
and
claim
timelines,
and
property
and
casualty
insurer’s
loss
26
calculations,
adjustments,
payments
of
claims,
and
policy
27
terms.
28
Under
the
bill,
an
insurer
shall
provide
to
an
insured,
29
within
15
days
of
receipt
of
a
request,
copies
of
requested
30
documents,
the
name
and
contact
information
of
a
person
31
involved
on
the
insurer’s
behalf
with
a
claim,
an
accounting
of
32
the
amount
paid
and
reserve
set
on
a
claim,
or
other
required
33
information
as
detailed
by
the
bill.
The
insurer
is
not
34
required
to
provide
privileged
information,
but
must
provide
35
-11-
LSB
5777XS
(2)
91
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11/
15
S.F.
2233
to
the
insured
a
written
explanation
for
the
basis
of
the
1
privilege.
If
the
information
is
later
determined
not
to
be
2
privileged,
the
insurer’s
prior
refusal
constitutes
an
unfair
3
method
of
competition
and
unfair
or
deceptive
act
or
practice.
4
The
bill
makes
a
conforming
change
to
Code
section
507B.4(3).
5
An
insurer
shall
not
include
in
a
policy
a
deadline
for
an
6
insured
to
provide
notice
of
a
loss
if
the
insured
could
not
7
have
reasonably
known
about
the
loss
and
the
insurer
will
not
8
be
prejudiced
by
a
delay.
If
a
policy
provides
for
replacement
9
cost,
an
insurer
shall
not
include
a
deadline
for
the
insured
10
to
recover
the
depreciation
amount
that
is
less
than
one
year
11
from
the
insurer’s
most
recent
actual
cash
value
payment
to
12
the
insured,
and
shall
notify
the
insured
of
such
deadline
no
13
later
than
90
days
prior
to
the
deadline.
An
insurer
shall
14
not
include
in
a
policy
language
that
imposes
a
statute
of
15
limitations
for
an
insured
to
sue
the
insurer
for
wrongfully
16
denying
a
claim
to
less
than
five
years
from
the
date
of
the
17
loss,
or
two
years
from
the
denial
of
the
claim,
whichever
is
18
later,
and
shall
notify
the
insured
of
such
deadline
no
later
19
than
90
days
prior
to
the
deadline.
20
For
a
policy
providing
for
replacement
cost
for
property,
21
and
the
loss
requires
repair
or
replacement
of
a
product
or
22
part,
consequential
physical
damage
shall
be
included
in
the
23
calculation
of
loss,
the
insured
shall
not
be
required
to
pay
24
for
betterment
or
costs
other
than
an
applicable
deductible,
25
and
the
insurer
shall
repair
or
replace
as
much
of
the
26
property
necessary
to
achieve
a
reasonably
similar
appearance
27
as
detailed
by
the
bill.
“Reasonably
similar
appearance”
28
is
defined
by
the
bill.
If
the
loss
requires
repair
or
29
replacement
of
a
building,
the
insurer
shall
repair
or
replace
30
as
much
of
the
building
necessary
to
bring
the
building
into
31
compliance
with
the
local
or
state
building
code,
and
the
32
insured
shall
not
be
required
to
pay
for
betterment
or
costs
33
other
than
an
applicable
deductible.
The
requirement
that
an
34
insurer
bring
a
building
into
compliance
with
a
local
or
state
35
-12-
LSB
5777XS
(2)
91
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12/
15
S.F.
2233
building
code
may
be
waived
pursuant
to
an
endorsement
in
a
1
policy
as
detailed
by
the
bill.
2
A
policy
shall
not
include
a
roof
payment
schedule
or
3
a
similar
provision,
or
a
provision
that
requires
covered
4
property
damage
to
satisfy
certain
criteria
in
order
to
exclude
5
or
limit
the
insurer’s
liability
for
cosmetic
or
nonfunctional
6
damages,
unless
an
endorsement
providing
otherwise
is
included
7
in
a
policy
as
detailed
by
the
bill.
8
The
replacement
cost
of
damaged
property
shall
be
calculated
9
based
on
the
date
the
damaged
property
is
repaired
or
replaced.
10
For
a
policy
providing
for
actual
cash
value
for
a
claim,
11
and
the
actual
cash
value
is
not
calculated
as
the
replacement
12
cost
less
depreciation,
the
insurer
shall
provide
the
insured
13
a
copy
of
the
claim
file
worksheet
and
an
explanation
of
the
14
calculation
of
depreciation
and
determination
of
the
actual
15
cash
value.
“Actual
cash
value”
is
defined
by
the
bill.
16
For
property
covered
by
a
policy
that
is
wholly
destroyed
or
17
damaged
and
cannot
be
repaired,
or
is
too
expensive
to
repair,
18
the
insurer
shall
pay
the
limit
of
the
policy
and
shall
not
19
withhold
the
cost
of
depreciation
or
the
deductible.
20
The
bill
requires
an
insurer
to,
within
15
days
of
receiving
21
notice
of
a
claim,
acknowledge
receipt
of
the
claim
to
the
22
insured,
commence
review
or
investigation
of
the
claim,
23
and
request
from
the
insured
any
item,
statement,
or
form
24
related
to
the
claim.
An
insurer
shall
reply
within
15
days
25
to
a
communication
from
an
insured
to
which
an
insured
would
26
reasonably
expect
a
response,
and
shall
address
all
material
27
parts
of
the
insured’s
communication.
28
An
insurer
shall
notify
an
insured
of
the
acceptance
or
29
denial
of
a
claim
no
later
than
30
days
from
the
date
of
receipt
30
of
a
properly
completed
proof
of
loss
form.
If
an
insurer
31
believes
an
insured
fraudulently
caused
or
contributed
to
a
32
claim,
the
insurer
shall
notify
the
insured
within
30
days
of
33
receiving
a
proof
of
loss
form
of
the
reason
additional
time
is
34
required
to
investigate
the
claim,
notify
the
insured
every
30
35
-13-
LSB
5777XS
(2)
91
nls/ko
13/
15
S.F.
2233
calendar
days
thereafter
of
the
continuing
reason
additional
1
time
is
required,
and,
within
a
reasonable
amount
of
time
after
2
completing
an
investigation
and
a
determination
whether
the
3
insured
fraudulently
caused
or
contributed
to
the
claim,
notify
4
the
insured
of
the
acceptance
or
denial
of
the
claim.
5
If
part
of
a
claim
is
denied
by
an
insurer,
the
notice
6
must
include
an
explanation
of
the
reason
for
the
denial
and
7
a
citation
to
applicable
policy
language
or
law
that
is
the
8
basis
for
the
denial.
If
a
denial
is
based
on
a
written
report
9
or
other
documentation,
the
report
or
documentation
shall
be
10
provided
to
the
insured.
11
If,
prior
to
accepting
or
denying
a
claim,
inspection
of
12
damaged
property
under
a
claim
is
required,
the
insurer
shall
13
schedule
and
complete
the
inspection
within
30
days
of
receipt
14
of
a
proof
of
loss
form.
The
inspection
may
only
be
delayed
if
15
an
act
of
nature
reasonably
prevents
the
inspection,
in
which
16
case
the
insurer
shall
notify
the
insured
of
the
reason
for
17
delay.
18
If
an
insurer
accepts
liability
for
all
or
part
of
a
claim,
19
the
insurer
shall
pay
the
accepted
portion
of
the
claim
within
20
10
days.
If
payment
is
conditioned
on
the
performance
of
an
21
act
by
the
insured,
the
insurer
shall
pay
the
portion
for
which
22
liability
has
been
accepted
within
10
days
of
the
act
being
23
performed.
Payment
of
a
claim
shall
not
be
required
if
it
is
24
discovered
that
the
damaged
property
does
not
belong
to
the
25
insured,
the
policy
does
not
provide
coverage
for
the
damaged
26
property,
or
the
claim
is
otherwise
invalid.
27
An
insurer
that
violates
the
bill
and
has
accepted
all
or
28
part
of
a
claim
is
liable
for,
in
an
action
brought
by
an
29
insured
in
which
the
insured
prevails,
the
portion
of
the
claim
30
for
which
the
insurer
accepted
liability
plus
simple
interest
31
at
an
annual
rate
of
18
percent,
the
insured’s
reasonable
32
attorney
fees,
costs
of
litigation,
and
any
other
damages
33
provided
by
law.
The
bill
shall
not
be
construed
to
prevent
or
34
replace
an
award
of
prejudgment
interest
or
any
other
damages
35
-14-
LSB
5777XS
(2)
91
nls/ko
14/
15
S.F.
2233
as
provided
by
law.
1
An
insurer
shall
not
include
a
provision
in
a
policy
that
2
prohibits
an
insured
from
contracting
with
a
public
adjuster.
3
-15-
LSB
5777XS
(2)
91
nls/ko
15/
15