Text: HF02333 Text: HF02335 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 507B.4, Code 2003, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 15. AUTOMOBILE REPAIR FACILITY OWNERSHIP.
1 4 Ownership or receipt of any financial benefit by a person from
1 5 an automobile repair facility or any other form of direct or
1 6 indirect consideration from any individual or entity for
1 7 referring insureds to that individual or entity or their
1 8 designee for vehicle repairs covered under the automobile
1 9 comprehensive coverage, property damage coverage, or
1 10 automobile collision coverage of a commercial or noncommercial
1 11 policy of automobile insurance issued by the person. For the
1 12 purposes of this subsection, "financial benefit" means
1 13 receiving any commission or gratuity, discount on repair
1 14 costs, free repairs, employment by a repair facility, or
1 15 similar benefit.
1 16 EXPLANATION
1 17 This bill provides that it is an unfair method of
1 18 competition or a deceptive act or practice for a person
1 19 engaged in the business of insurance to own or receive any
1 20 financial benefit from an automobile repair facility or any
1 21 other form of direct or indirect consideration from any
1 22 individual or entity for referring an insured to that
1 23 individual or entity or their designee for vehicle repairs
1 24 covered under the automobile comprehensive coverage, property
1 25 damage coverage, or automobile collision coverage of a
1 26 commercial or noncommercial policy of automobile insurance
1 27 issued by the person. For the purposes of the bill, a
1 28 "person" to whom this provision applies includes any
1 29 individual, corporation, association, partnership, fraternal
1 30 beneficiary association, and other legal entity engaged in the
1 31 business of insurance in this state. For the purposes of the
1 32 bill, "financial benefit" means receiving any commission or
1 33 gratuity, discount on repair costs, free repairs, employment
1 34 by a repair facility, or similar benefit.
1 35 A violation of the bill is punishable by a civil penalty of
2 1 not more than $1,000 for each act or violation, but not to
2 2 exceed an aggregate of $10,000, unless the person knew or
2 3 reasonably should have known the person was in violation of
2 4 the bill, in which case the penalty shall not exceed $5,000
2 5 for each act or violation, and not be more than $50,000 in the
2 6 aggregate. A violation of the bill may also result in the
2 7 suspension or revocation of the violator's license.
2 8 LSB 5405YH 80
2 9 av/cf/24
Text: HF02333 Text: HF02335 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 2004 Cornell College and League of Women Voters of Iowa
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: Wed Mar 3 03:30:20 CST 2004
URL: /DOCS/GA/80GA/Legislation/HF/02300/HF02334/040224.html
jhf