Text: HF02308                           Text: HF02310
Text: HF02300 - HF02399                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

House File 2309

Partial Bill History

Bill Introduced: H.J. 326
Complete Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 507B.7, subsection 1, Code 1999, is
  1  2 amended to read as follows:
  1  3    1.  If, after such hearing, the commissioner shall
  1  4 determine that the person charged has engaged in an unfair
  1  5 method of competition or an unfair or deceptive act or
  1  6 practice, the commissioner shall reduce the findings to
  1  7 writing and shall issue and cause to be served upon the person
  1  8 charged with the violation a copy of such findings, an order
  1  9 requiring such person to cease and desist from engaging in
  1 10 such method of competition, act or practice and if the act or
  1 11 practice is a violation of section 507B.4, or 507B.5, or
  1 12 507B.10, the commissioner may at the commissioner's discretion
  1 13 order any one or more of the following:
  1 14    a.  Payment of a civil penalty of not more than one
  1 15 thousand dollars for each act or violation, but not to exceed
  1 16 an aggregate of ten thousand dollars, unless the person knew
  1 17 or reasonably should have known the person was in violation of
  1 18 section 507B.4, or 507B.5, or 507B.10, in which case the
  1 19 penalty shall be not more than five thousand dollars for each
  1 20 act or violation, but not to exceed an aggregate penalty of
  1 21 fifty thousand dollars in any one six-month period.  The
  1 22 commissioner shall, if the commissioner finds the violations
  1 23 of section 507B.4, or 507B.5, or 507B.10 were directed,
  1 24 encouraged, condoned, ignored, or ratified by the employer of
  1 25 the person or by an insurer, also assess a fine to the
  1 26 employer or insurer.
  1 27    b.  Suspension or revocation of the license of a person as
  1 28 defined in section 507B.2, subsection 1, if the person knew or
  1 29 reasonably should have known the person was in violation of
  1 30 section 507B.4, or section 507B.5, or 507B.10.
  1 31    Sec. 2.  NEW SECTION.  507B.10  AUTOMOBILE INSURANCE
  1 32 POLICIES – AFTERMARKET CRASH PARTS PROVISIONS – NOTICE
  1 33 REQUIRED.
  1 34    1.  A person shall not deliver an automobile insurance
  1 35 policy in this state that pays benefits based on the cost of
  2  1 aftermarket crash parts, as defined in section 537B.4, or that
  2  2 requires the insured to pay the difference between the cost of
  2  3 original equipment manufacturer parts and the cost of
  2  4 aftermarket crash parts unless the policy includes in a
  2  5 prominent location and typeface a notice which contains and is
  2  6 limited to the following language:  
  2  7                             NOTICE
  2  8               PAYMENT FOR AFTERMARKET CRASH PARTS
  2  9    Physical damage coverage under this policy includes payment
  2 10 for aftermarket crash parts.  If you repair the vehicle using
  2 11 more expensive original equipment manufacturer (OEM) parts,
  2 12 you may pay the difference.  Any warranties applicable to
  2 13 these replacement parts are provided by the manufacturer or
  2 14 distributor of these parts rather than the manufacturer of
  2 15 your vehicle.
  2 16    2.  The notice required in subsection 1 may be provided on
  2 17 a separate form or may be printed prominently on the
  2 18 declaration page of the policy.  The notice shall be provided
  2 19 in conjunction with all new policies issued.  Notice may be
  2 20 provided at the time of application for the policy but shall
  2 21 not be provided later than the time of delivery of the new
  2 22 policy.  A person may inform an applicant that the insurance
  2 23 division of the department of commerce requires the notice
  2 24 required by this section.
  2 25    3.  A violation of this section is an unfair or deceptive
  2 26 act or practice under this chapter.  
  2 27                           EXPLANATION
  2 28    This bill creates new Code section 507B.10 which requires
  2 29 automobile insurers to provide notice to insureds if the
  2 30 automobile policy issued by the insurer pays benefits based on
  2 31 the cost of aftermarket crash parts or requires the insured to
  2 32 pay the difference between the cost of original equipment
  2 33 manufacturer parts and the cost of aftermarket crash parts.
  2 34 The notice may be provided on a separate form or may be
  2 35 printed prominently on the declaration page of the policy.
  3  1 The bill requires that the notice be provided in conjunction
  3  2 with all new policies issued and that such notice be provided
  3  3 not later than the time of delivery of the new policy.
  3  4    A violation of the bill is an unfair or deceptive act or
  3  5 practice under Code chapter 507B.  The commissioner of
  3  6 insurance has the power to investigate into the affairs of
  3  7 insurers in order to determine whether such person has been or
  3  8 is engaged in any unfair or deceptive act or practice.
  3  9 Pursuant to the bill, the commissioner may, after hearing,
  3 10 require the violator to cease and desist, require the violator
  3 11 to pay a civil penalty of up to $1,000 for a violation or up
  3 12 to $5,000 for a known violation, or suspend or revoke the
  3 13 person's license to sell insurance.  
  3 14 LSB 5888YH 78
  3 15 nh/cf/24.1

Text: HF02308                           Text: HF02310
Text: HF02300 - HF02399                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

Comments about this site or page? webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.

Last update: Fri Feb 25 03:35:23 CST 2000
URL: /DOCS/GA/78GA/Legislation/HF/02300/HF02309/000216.html
jhf