Text: HF00440 Text: HF00442 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 516B.4 RIGHT OF INSURED TO
1 2 COMPENSATION FOR DIMINUTION IN VALUE OF AUTOMOBILE.
1 3 When an insurance company elects to repair an automobile
1 4 that has sustained direct and accidental damage, the
1 5 automobile liability policy issued by the insurance company
1 6 for the automobile shall compensate the insured for the loss
1 7 that results from the diminution in market value of the
1 8 automobile that occurs after the automobile is damaged and
1 9 repaired.
1 10 For the purposes of this section, "diminution in market
1 11 value" means the actual or perceived loss in market or resale
1 12 value of an automobile as measured by the difference in the
1 13 market or resale value of the automobile immediately before
1 14 damage occurs and the market or resale value of the automobile
1 15 after being repaired, less any deductible.
1 16 EXPLANATION
1 17 This bill provides that when an insurance company elects to
1 18 repair an automobile that has been damaged, the automobile
1 19 liability policy must also compensate the insured for the loss
1 20 that results from the diminution in market or resale value
1 21 that occurs after the automobile is damaged and then repaired.
1 22 The bill defines "diminution in value" as the actual or
1 23 perceived loss in market or resale value of an automobile as
1 24 measured by the difference in the market or resale value of
1 25 the automobile immediately before damage occurs and the market
1 26 or resale value of the automobile after being repaired, less
1 27 any deductible.
1 28 LSB 1564HH 80
1 29 av/cf/24
Text: HF00440 Text: HF00442 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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