Read the full stored bill text
Senate
File
2383
-
Introduced
SENATE
FILE
2383
BY
COMMITTEE
ON
TRANSPORTATION
(SUCCESSOR
TO
SSB
3154)
A
BILL
FOR
An
Act
relating
to
standards
for
settlement
of
certain
motor
1
vehicle
insurance
claims.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
6159SV
(1)
91
th/ns
S.F.
2383
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
comply
with
section
3
507B.10.
4
Sec.
2.
NEW
SECTION
.
507B.10
Settled
motor
vehicle
5
insurance
claims
involving
aftermarket
crash
parts
or
original
6
equipment
manufacturer
parts.
7
1.
When
a
first-party,
partial-loss
claim
relating
to
a
8
motor
vehicle
is
settled
based
on
a
written
estimate
prepared
9
by
or
for
the
insurer
that
includes
payment
for
aftermarket
10
crash
parts,
the
property
insurer
shall
estimate
the
cost
of
11
repairs
and
pay
the
claim
based
only
on
the
cost
of
aftermarket
12
crash
parts
available
from
a
distributor
of
each
such
part
that
13
is
located
within
one
hundred
miles
of
the
repair
facility
14
designated
by
the
insured
to
make
the
repairs.
The
insurer
15
shall
pay
the
cost
of
any
modifications
which
may
become
16
necessary
when
repairs
are
made
using
aftermarket
crash
parts
17
or
parts
salvaged
from
the
crashed
vehicle.
18
2.
When
a
third-party,
partial-loss
claim
relating
to
a
19
motor
vehicle
is
settled
based
on
a
written
estimate
prepared
20
by
or
for
the
insurer,
the
liability
insurer
shall
estimate
21
the
cost
of
repairs
and
pay
the
claim
based
only
on
the
cost
22
of
new
original
equipment
manufacturer
parts
unless
all
of
the
23
following
occur:
24
a.
The
insurer
notifies
the
owner
of
the
owner’s
right
25
to
have
the
vehicle
repaired
based
on
the
cost
of
using
new
26
original
equipment
manufacturer
parts.
27
b.
The
motor
vehicle
owner
gives
express
consent
in
writing
28
that
aftermarket
crash
parts
or
parts
salvaged
from
the
crashed
29
vehicle
may
be
used.
30
c.
The
insurer
expressly
agrees
to
pay
the
cost
of
any
31
modifications
which
may
become
necessary
when
repairs
are
32
made
using
aftermarket
crash
parts
or
parts
salvaged
from
the
33
crashed
vehicle
and
expressly
agrees
to
defend
and
indemnify
34
the
owner
of
the
motor
vehicle
and
the
repair
facility
against
35
-1-
LSB
6159SV
(1)
91
th/ns
1/
3
S.F.
2383
any
claims
related
to
repairs
made
using
aftermarket
crash
1
parts
or
parts
salvaged
from
the
crashed
vehicle.
2
3.
As
used
in
this
section:
3
a.
“Aftermarket
crash
part”
means
as
defined
in
section
4
537B.4.
5
b.
“Motor
vehicle”
means
as
defined
in
section
321.1.
6
c.
“Repair
facility”
means
as
defined
in
section
537B.4.
7
EXPLANATION
8
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
9
the
explanation’s
substance
by
the
members
of
the
general
assembly.
10
This
bill
enacts
former
Iowa
administrative
code
provisions
11
relating
to
standards
for
settlement
of
certain
motor
vehicle
12
insurance
claims.
13
The
bill
requires
a
property
insurer
to
estimate
the
cost
of
14
repairs
for
a
motor
vehicle
and
pay
a
claim
based
only
on
the
15
cost
of
aftermarket
crash
parts
available
from
a
distributor
of
16
each
such
part
that
is
located
within
100
miles
of
the
repair
17
facility
when
a
first-party,
partial-loss
claim
relating
to
the
18
motor
vehicle
is
settled
based
on
a
written
estimate
prepared
19
by
or
for
the
insurer
that
includes
payment
for
aftermarket
20
crash
parts.
The
bill
requires
the
insurer
to
pay
the
cost
of
21
any
modifications
which
may
become
necessary
when
repairs
are
22
made
using
aftermarket
crash
parts
or
parts
salvaged
from
the
23
crashed
vehicle.
24
When
a
third-party,
partial-loss
claim
relating
to
a
motor
25
vehicle
is
settled
based
on
a
written
estimate
prepared
by
or
26
for
the
insurer,
the
bill
requires
the
liability
insurer
to
27
estimate
the
cost
of
repairs
and
pay
the
claim
based
only
on
28
the
cost
of
new
original
equipment
manufacturer
parts
unless
29
the
owner
of
the
motor
vehicle
gives
express
consent
to
use
30
aftermarket
crash
parts
or
parts
salvaged
from
the
crashed
31
vehicle
and
the
insurer
expressly
agrees
to
pay
the
cost
of
32
any
modifications
which
may
become
necessary
when
repairs
are
33
made
using
aftermarket
crash
parts
or
parts
salvaged
from
the
34
crashed
vehicle,
and
expressly
agrees
to
defend
and
indemnify
35
-2-
LSB
6159SV
(1)
91
th/ns
2/
3
S.F.
2383
the
owner
of
the
motor
vehicle
and
the
repair
facility
against
1
any
claims
related
to
such
repairs.
2
A
person
who
violates
a
provision
of
the
bill
is
subject
3
to
entry
of
a
cease
and
desist
order,
may
be
ordered
by
the
4
commissioner
of
insurance
to
pay
a
civil
penalty
ranging
from
5
$1,000
to
$50,000
under
Code
section
507B.7,
and
if
the
person
6
has
a
license
to
operate
the
person’s
business,
the
license
is
7
subject
to
suspension
or
revocation.
8
-3-
LSB
6159SV
(1)
91
th/ns
3/
3