Senate File 619 - Enrolled Senate File 619 AN ACT RELATING TO THE NATURAL HAZARD MITIGATION FINANCING PROGRAM, THE DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM, THE DISASTER RECOVERY NEW HOUSING PROGRAM, POST-LOSS ASSIGNMENT OF BENEFITS, THE LICENSING AND REGULATION OF ADJUSTERS, APPRAISERS, AND UMPIRES, AND THE IOWA ECONOMIC EMERGENCY FUND, AND PROVIDING PENALTIES, MAKING APPROPRIATIONS, AND INCLUDING EFFECTIVE DATE AND APPLICABILITY PROVISIONS. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: DIVISION I NATURAL HAZARD MITIGATION FINANCING PROGRAM Section 1. NEW SECTION . 16.230 Definitions. 1. “Department” means the department of homeland security and emergency management. 2. “Fund” means the natural hazard mitigation revolving loan fund created in section 29D.4. 3. “Loan recipient” means the same as defined in section 29D.2. 4. “Program” means the natural hazard mitigation financing program created in section 29D.3. 5. “Project” means the same as defined in section 29D.2. Sec. 2. NEW SECTION . 16.231 Funds and accounts —— program funds and accounts not part of state general fund. 1. The department, in consultation with the authority, may establish and maintain funds or accounts determined to be necessary to carry out the purposes of chapter 29D and

Senate File 619, p. 2 shall provide for the funding, administration, investment, restrictions, and disposition of the funds and accounts. Any moneys appropriated to the department and the authority for purposes of paying the costs and expenses associated with the administration of the program shall be administered as determined by the department in consultation with the authority. 2. The funds or accounts held by the department or the authority, or a trustee acting on behalf of the department or the authority pursuant to a trust agreement related to the program, shall not be considered part of the general fund of the state, are not subject to appropriation for any other purpose by the general assembly, and in determining a general fund balance shall not be included in the general fund of the state, but shall remain in the funds and accounts maintained by the department or the authority, or a trustee pursuant to a trust agreement. Funds and accounts held by the department or the authority, or a trustee acting on behalf of the department or the authority pursuant to a trust agreement related to the program, are separate dedicated funds and accounts under the administration and control of the department in consultation with the authority. Sec. 3. NEW SECTION . 16.232 Program funding —— bonds and notes. 1. The authority shall cooperate with the department in the creation, administration, and financing of the program. 2. The authority may issue bonds and notes for the purpose of funding the fund and the state matching funds required pursuant to the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act, Pub. L. No. 93-288, as amended, 42 U.S.C. §5121 et seq. The authority may enter into one or more loan agreements or purchase agreements with one or more bondholders or noteholders containing the terms and conditions of the repayment of, and the security for, each bond or note. The authority and each bondholder or noteholder, or a trustee agent designated by the authority, may enter into an agreement to provide for any of the following: a. That the proceeds of the bond or note and the investments of the proceeds may be received, held, and disbursed by the

Senate File 619, p. 3 authority or by a trustee or agent designated by the authority. b. That the bondholder or noteholder, or a trustee or agent designated by the authority, may collect, invest, and apply the amount payable under the loan agreement or any other instruments securing the debt obligations under the loan agreement. c. That the bondholder or noteholder may enforce the remedies provided in the loan agreement or other instruments on the bondholder’s or noteholder’s behalf without the appointment or designation of a trustee. If there is a default in the principal of, or interest on, the bond or note or in the performance of any agreement contained in the loan agreement or other instrument, the payment or performance may be enforced in accordance with the loan agreement or other instrument. d. Other terms and conditions as deemed necessary or appropriate by the authority. 3. Chapter 16, except to the extent inconsistent with this section, shall apply to bonds or notes issued, and powers granted to the authority, under this section. Section 16.28, subsection 4, shall not apply to this section. 4. All bonds or notes issued by the authority in connection with the program are exempt from taxation by this state and the interest on the bonds or notes is exempt from state income tax. Sec. 4. NEW SECTION . 16.233 Security —— reserve funds —— pledges —— nonliability. 1. The authority may provide in the resolution, trust agreement, or other instrument authorizing the issuance of bonds or notes pursuant to chapter 29D that the principal of, premium, and interest on the bonds or notes are payable from any of the following and may pledge the same to the authority’s bonds or notes: a. The income and receipts or other moneys derived from the projects financed with the proceeds of the bonds or notes. b. The income and receipts or other moneys derived from designated projects whether or not the projects are financed in whole or in part with the proceeds of the bonds or notes. c. The amounts on deposit in the fund. d. The amounts payable to the authority by loan recipients pursuant to loan agreements with loan recipients.

Senate File 619, p. 4 e. Any other funds or accounts established by the authority in connection with the program or the sale and issuance of the authority’s bonds or notes. 2. The authority may establish reserve funds to secure one or more issues of its bonds or notes. The authority may deposit in a reserve fund established under this subsection the proceeds of the sale of the authority’s bonds or notes and other moneys which are made available from any other source. 3. It is the intention of the general assembly that a pledge made in respect of bonds or notes shall be valid and binding from the time the pledge is made, that the moneys or property so pledged and received after the pledge by the authority shall immediately be subject to the lien of the pledge without physical delivery or further act, and that the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority whether or not the parties have notice of the lien. Neither the resolution, trust agreement, nor any other instrument by which a pledge is created needs to be recorded or filed under the Iowa uniform commercial code, chapter 554, to be valid, binding, or effective against the parties. 4. Neither the members of the authority nor persons executing the bonds or notes are liable personally on the bonds or notes or are subject to personal liability or accountability by reason of the issuance of the bonds or notes. 5. The bonds or notes issued by the authority are not an indebtedness or other liability of the state or of a political subdivision of the state within the meaning of any constitutional or statutory debt limitations but are special obligations of the authority, and are payable solely from the income and receipts or other funds or property of the authority, and the amounts on deposit in the revolving loan funds, and the amounts payable to the authority under the authority’s loan agreements with loan recipients to the extent that the amounts are designated in the resolution, trust agreement, or other instrument of the authority authorizing the issuance of the bonds or notes as being available as security for such bonds or notes. The authority shall not pledge the faith or credit of the state or of a political subdivision of

Senate File 619, p. 5 the state to the payment of any bonds or notes. The issuance of any bonds or notes by the authority does not directly, indirectly, or contingently obligate the state or a political subdivision of the state to apply moneys from, or levy or pledge any form of taxation to the payment of the bonds or notes. Sec. 5. NEW SECTION . 29D.1 Short title. This chapter shall be known and may be cited as the “Natural Hazard Mitigation Financing Program” . Sec. 6. NEW SECTION . 29D.2 Definitions. As used in this chapter, unless the context otherwise requires: 1. “Authority” means the Iowa finance authority created in section 16.1A. 2. “Cost” means all costs or indebtedness incurred by a loan recipient and determined by the department as reasonable and necessary for carrying out all work necessary or incidental to the accomplishment of a project. 3. “Department” means the department of homeland security and emergency management. 4. “Director” means the director of the department of homeland security and emergency management. 5. “Eligible entity” means a person that is eligible under the STORM Act to receive a loan under the program. 6. “Fund” means the natural hazard mitigation revolving loan fund created in section 29D.4. 7. “Loan recipient” means an eligible entity that has received a loan from the fund. 8. “Municipality” means a city, county, sanitary district, state agency, or other governmental body or corporation, or any combination of two or more governmental bodies or corporations acting jointly, in connection with a project. 9. “Private entity” means a corporation, limited liability company, trust, estate, partnership, association, or any other legal entity or a legal representative, agent, officer, employee, or assignee of such entity. “Private entity” does not include any of the following: a. An individual, municipality, or city utility as that term is defined in section 362.2.

Senate File 619, p. 6 b. A public water supply system as defined in section 455B.171. c. A qualified entity as defined in section 384.84, subsection 2. 10. “Program” means the natural hazard mitigation financing program created in section 29D.3. 11. a. “Project” means an activity or set of activities, in accordance with the limitations set forth in the STORM Act, that mitigate the impact of natural hazards, including but not limited to: (1) Drought and prolonged episodes of intense heat. (2) Severe storms, including tornadoes, windstorms, and severe winter storms. (3) Wildfires. (4) Earthquakes. (5) Flooding. (6) Shoreline erosion. (7) High water levels. (8) Storm surges. b. “Project” may include but is not limited to any of the following: (1) The construction, repair, or replacement of a nonfederal levee or other flood control structure, provided that the administrator of the federal emergency management agency, in consultation with the United States army corps of engineers, if appropriate, requires an eligible entity to determine that such levee or other flood control structure is designed, constructed, and maintained in accordance with sound engineering practices and standards equivalent to the purpose for which such levee or structure is intended. (2) Zoning and land use planning changes. (3) Establishing and enforcing building codes. 12. “Safeguarding tomorrow through ongoing risk mitigation Act” , or “STORM Act” , means the federal Robert T. Stafford Disaster Relief and Emergency Assistance Act, Pub. L. No. 93-288, as amended, 42 U.S.C. §5121 et seq. Sec. 7. NEW SECTION . 29D.3 Natural hazard mitigation financing program. 1. The natural hazard mitigation financing program is

Senate File 619, p. 7 created for the purpose of making loans available to eligible entities to finance all or part of the costs of a project. 2. The program shall be a joint and cooperative undertaking of the department and the authority. The department and the authority may enter into any agreements, documents, instruments, certificates, data, or information as necessary for the operation, administration, and financing of the program consistent with this chapter, chapter 16, subchapter X, part 11, the STORM Act, the rules promulgated under chapter 17A by the department in consultation with the authority, and any other applicable federal or state laws. The authority and the department may act to conform the program to the applicable guidance and regulations adopted by the federal emergency management agency. Sec. 8. NEW SECTION . 29D.4 Natural hazard mitigation revolving loan fund. 1. A natural hazard mitigation revolving loan fund is created in the state treasury under the control of the department in consultation with the authority. The revolving loan fund is a separate dedicated fund under the administration and control of the department in consultation with the authority and shall be subject to section 16.31. Moneys on deposit in the revolving loan fund shall be invested by the treasurer of state in cooperation with the department, in consultation with the authority, and the income from the investments shall be credited to and deposited in the revolving loan fund. 2. a. The fund shall consist of moneys appropriated by the general assembly, moneys received by the fund through the federal emergency management agency and the STORM Act, moneys received as repayment of loan principal and interest from loans paid for by the fund, and all other moneys received by the fund from any other source. Notwithstanding section 8.33, moneys in the fund that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund. b. Moneys in the fund are appropriated to the department to

Senate File 619, p. 8 provide loans to eligible entities pursuant to section 29D.9, and for administration of the program as permitted under the STORM Act. Moneys in the fund shall not be used to provide a loan to a private entity for the acquisition of real property. Moneys in the fund shall not be considered part of the general fund of the state subject to appropriation for any other purpose by the general assembly, and in determining a general fund balance, shall not be included in the general fund of the state subject to section 16.31, insofar as section 16.31 complies with the STORM Act. Sec. 9. NEW SECTION . 29D.5 Director —— powers and duties. The director shall do all of the following: 1. Process and review each intended use plan application to determine if the intended use plan application meets the eligibility requirements promulgated by the department by rule, and approve or deny the application. 2. Process and review all documents relating to the planning, design, construction, and operation of each project. 3. Prepare and process, in coordination with the authority, documents relating to the administration of the program. 4. Prepare an annual budget for administration of the program. 5. Receive program fees as determined in conjunction with the authority. 6. Perform other acts and assume other duties and responsibilities necessary for the administration of the program and compliance with the STORM Act. Sec. 10. NEW SECTION . 29D.6 Intended use plans —— capitalization grants —— accounting. 1. For the fiscal year beginning July 1, 2025, and each fiscal year thereafter, the department may prepare and deliver intended use plans to, and enter into capitalization grant agreements with, the administrator of the federal emergency management agency under the terms and conditions set forth in the STORM Act and federal regulations adopted pursuant to the STORM Act, and may accept capitalization grants for the fund in accordance with payment schedules established by the administrator. All payments from the administrator shall be deposited into the fund.

Senate File 619, p. 9 2. The department, in consultation with the authority, shall establish fiscal controls and accounting procedures during appropriate accounting periods for payments received for deposit into, and disbursements made from, the fund, and to fund balances at the beginning and end of an accounting period. Sec. 11. NEW SECTION . 29D.7 Authority —— loan application review and approval. 1. The department and the authority shall review each loan application to determine if the applicant is an eligible entity and qualifies for a loan pursuant to eligibility requirements established by rule promulgated by the department and the authority, and in accordance with the intended use plan applications approved by the director under section 29D.6. 2. The authority, in cooperation with the department, shall determine the interest rate and repayment terms for each loan made under the program and the authority shall enter into a loan agreement with each loan recipient in compliance with the Clean Water Act as defined in section 455B.291, the Safe Drinking Water Act as defined in section 455B.291, the STORM Act, and any other applicable state or federal law. 3. The authority may charge loan recipients fees and assess costs as deemed necessary by the authority for the continued operation of the program. Fees and costs collected pursuant to this subsection shall be deposited in the fund described in section 29D.4. Sec. 12. NEW SECTION . 29D.8 Loans to eligible entities. 1. Moneys deposited in the fund shall be used for the primary purpose of making loans to eligible entities to finance eligible costs of projects in accordance with the intended use plans prepared and delivered to the administrator of the federal emergency management system by the department under section 29D.6. The loan recipients and the purpose and amount of the loans shall be determined by the director, in compliance with the STORM Act and other applicable federal law, and any resolution, agreement, indenture, or other document of the authority, and rules adopted by the authority relating to any bonds, notes, or other obligations issued for the program which may be applicable to the loan. 2. Notwithstanding any provision of this chapter to the

Senate File 619, p. 10 contrary, moneys received under the federal American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, and deposited in the fund may be used in any manner permitted or required by applicable federal law. Sec. 13. NEW SECTION . 29D.9 Rules. The department, in consultation with the authority, shall adopt rules pursuant to chapter 17A to administer this chapter. Sec. 14. Section 422.7, subsection 2, Code 2025, is amended by adding the following new paragraph: NEW PARAGRAPH . u. Natural hazard mitigation financing program bonds pursuant to section 16.232, subsection 4. Sec. 15. CODE EDITOR DIRECTIVE. The Code editor shall designate sections 16.230 through 16.233, as enacted in this division of this Act, as part 11 of chapter 16, subchapter X, entitled “Natural Hazard Mitigation Financing Program”. DIVISION II DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM Sec. 16. Section 16.57B, subsection 1, paragraph a, Code 2025, is amended to read as follows: a. “Disaster-affected home” means a primary residence that is destroyed or damaged due to a natural disaster that occurs on or after June 16, 2021, and the primary residence is located in a county that is the subject of a state of disaster emergency proclamation by the governor that authorizes disaster recovery housing assistance. The state of disaster emergency proclamation shall specify if disaster recovery housing assistance is available to homeowners, renters, or both homeowners and renters. Sec. 17. Section 16.57B, subsection 1, Code 2025, is amended by adding the following new paragraph: NEW PARAGRAPH . 0b. “Financial assistance” means assistance provided only from the funds, rights, and assets legally available to the authority pursuant to this chapter and includes but is not limited to assistance in the form of grants, loans, and forgivable loans. Sec. 18. Section 16.57B, subsection 2, paragraph a, subparagraph (1), Code 2025, is amended to read as follows: (1) A disaster recovery housing assistance fund is created within the authority. The moneys in the fund shall be used by

Senate File 619, p. 11 the authority for the development and operation of a forgivable loan and grant program for to award financial assistance to homeowners and renters with disaster-affected homes, and for the eviction prevention program pursuant to section 16.57C . Sec. 19. Section 16.57B, subsection 2, paragraph c, Code 2025, is amended to read as follows: c. The authority shall not use more than five percent of the moneys in deposited into the fund on July 1 of a fiscal year under paragraph “b” for purposes of administrative costs and other program support during the fiscal year . Sec. 20. Section 16.57B, subsection 3, paragraph a, Code 2025, is amended to read as follows: a. The authority shall establish and administer a disaster recovery housing assistance program and shall use moneys in the fund to award forgivable loans financial assistance to eligible homeowners and grants to eligible renters of disaster-affected homes. Moneys in the fund may be expended following a state of disaster emergency proclamation by the governor pursuant to section 29C.6 that authorizes disaster recovery housing assistance. The governor, by state of disaster emergency proclamation, shall specify if disaster recovery housing assistance is available to homeowners, renters, or both homeowners and renters. Sec. 21. Section 16.57B, subsections 4, 5, 6, and 7, Code 2025, are amended to read as follows: 4. Registration required . To be considered for a forgivable loan or grant under the program, a A homeowner or renter must may register for the disaster case advocacy program established pursuant to section 29C.20B . The disaster case manager may refer the homeowner or renter to the appropriate local program administrator. 5. Homeowners. a. To be eligible for a forgivable loan financial assistance under the program, all of the following requirements shall apply: (1) The homeowner’s disaster-affected home must have sustained damage greater than the damage that is covered by the homeowner’s property and casualty insurance policy insuring the home plus any other state or federal disaster-related financial

Senate File 619, p. 12 assistance that the homeowner is eligible to receive. (2) A local official must either deem the disaster-affected home suitable for rehabilitation or damaged beyond reasonable repair. (3) The disaster-affected home is not eligible for buyout by the county or city where the disaster-affected home is located, or the disaster-affected home is eligible for a buyout by the county or city where the disaster-affected home is located, but the homeowner is requesting a forgivable loan financial assistance for the repair or rehabilitation of the homeowner’s disaster-affected home in lieu of a buyout. (4) Assistance Financial assistance under the program must not duplicate benefits provided by any local, state, or federal disaster recovery assistance program. b. If a homeowner is referred to the authority or to a local program administrator by the disaster case manager of the homeowner, the The authority may award a forgivable loan financial assistance to the eligible homeowner for any of the following purposes: (1) Repair or rehabilitation of the disaster-affected home. The disaster-affected home to be repaired or rehabilitated shall not be located in a one-hundred-year floodplain. (2) (a) Down payment assistance on the purchase of replacement housing, and the cost of reasonable repairs to be performed on the replacement housing to render the replacement housing decent, safe, sanitary, and in good repair. (b) Replacement housing shall not be located in a one-hundred-year floodplain. (c) For purposes of this subparagraph, “decent, safe, sanitary, and in good repair” means the same as described in 24 C.F.R. §5.703. c. The authority shall determine the interest rate for the any financial assistance awarded in the form of a loan or a forgivable loan. d. If a homeowner who has been awarded a loan or a forgivable loan sells a disaster-affected home or replacement housing for which the homeowner received the loan or forgivable loan prior to the end of the loan term, the remaining principal on the loan or forgivable loan shall be due and payable

Senate File 619, p. 13 pursuant to rules adopted by the authority. 6. Renters. a. To be eligible for a grant financial assistance under the program, all of the following requirements shall apply: (1) A local program administrator either deems the disaster-affected home of the renter suitable for rehabilitation but unsuitable for current short-term habitation, or the disaster-affected home is damaged beyond reasonable repair. (2) Assistance Financial assistance under the program must not duplicate benefits provided by any local, state, or federal disaster recovery assistance program. b. If a renter is referred to the authority or to a local program administrator by the disaster case manager of the renter, the The authority may award a grant financial assistance to the eligible renter to provide short-term financial assistance for the payment of rent for replacement housing. 7. Report. On or before January 31 of each year, or as part of the annual report under section 16.7 , the authority shall submit a report to the general assembly that identifies all of the following for the calendar year immediately preceding the year of the report: a. The date of each state of disaster emergency proclamation by the governor that authorized disaster recovery housing assistance under this section , and if disaster recovery housing assistance was made available to homeowners, renters, or both homeowners and renters . b. The total number of forgivable loans and grants financial assistance awards awarded. c. The total number of forgivable loans financial assistance awards , and the amount of each loan financial assistance award awarded for repair or rehabilitation. d. The total number of forgivable loans financial assistance awards , and the amount of each loan financial assistance award , awarded for down payment assistance on the purchase of replacement housing and the cost of reasonable repairs to be performed on the replacement housing to render the replacement housing decent, safe, sanitary, and in good repair.

Senate File 619, p. 14 e. The total number of grants, and the amount of each grant, awarded for rental assistance. f. The total number of loans, forgivable loans , and grants awarded in each county in which at least one homeowner or renter has been awarded a loan, forgivable loan , or grant. g. Each local program administrator involved in the administration of the program. h. The total amount of loan and forgivable loan principal repaid. Sec. 22. Section 16.57D, subsections 1 and 2, Code 2025, are amended to read as follows: 1. Establish the maximum loan, forgivable loan , and grant amounts awarded under the program. 2. Establish the terms of any loan or forgivable loan provided under the program. DIVISION III DISASTER RECOVERY NEW HOUSING PROGRAM Sec. 23. Section 422.7, Code 2025, is amended by adding the following new subsection: NEW SUBSECTION . 45. a. Subtract, to the extent included, the amount of any qualifying state disaster recovery new housing grant issued to an individual or business by the economic development authority. b. For purposes of this subsection, “qualifying state disaster recovery new housing grant” means an award of a state disaster recovery new housing grant that was applied for between August 20, 2024, and December 31, 2024, and approved and issued by the economic development authority. c. This subsection is repealed January 1, 2028. Sec. 24. Section 422.35, Code 2025, is amended by adding the following new subsection: NEW SUBSECTION . 14. a. Subtract, to the extent included, the amount of any qualifying state disaster recovery new housing grant issued to a business by the economic development authority. b. For purposes of this subsection, “qualifying state disaster recovery new housing grant” means an award of a state disaster recovery new housing grant that was applied for between August 20, 2024, and December 31, 2024, and approved

Senate File 619, p. 15 and issued by the economic development authority. c. This subsection is repealed January 1, 2028. Sec. 25. EFFECTIVE DATE. This division of this Act, being deemed of immediate importance, takes effect upon enactment. Sec. 26. RETROACTIVE APPLICABILITY. This division of this Act applies retroactively to tax years beginning on or after January 1, 2024. DIVISION IV POST-LOSS ASSIGNMENT OF BENEFITS —— RESIDENTIAL CONTRACTOR Sec. 27. Section 507B.4, subsection 3, Code 2025, is amended by adding the following new paragraph: NEW PARAGRAPH . v. Post-loss assignment of benefits. Any violation of section 515.137A by a residential contractor. Sec. 28. Section 515.137A, subsection 2, Code 2025, is amended by adding the following new paragraphs: NEW PARAGRAPH . 0b. “Catastrophic disaster” includes a major disaster declaration by the president of the United States or a state of disaster emergency proclamation by the governor. NEW PARAGRAPH . 00b. “Consumer advocate” means a consumer advocate appointed pursuant to section 505.8, subsection 6, paragraph “b” , subparagraph (1). NEW PARAGRAPH . 000b. “Post-loss assignment” means any instrument by which post-loss benefits, rights, or duties of a named insured under a residential property and casualty insurance policy are assigned or transferred to a residential contractor. The post-loss assignment must only assign the insurance proceeds a named insured is entitled to receive from the named insured’s insurer for the repair, replacement construction, or reconstruction of the named insured’s property. Sec. 29. Section 515.137A, subsections 3, 4, and 5, Code 2025, are amended by striking the subsections and inserting in lieu thereof the following: 3. A residential contractor shall be prohibited from all of the following under a post-loss assignment by a named insured to the residential contractor: a. Rebating or offering to rebate any portion of the named insured’s insurance deductible as an inducement for the named insured to purchase a good or service.

Senate File 619, p. 16 b. Imposing an administrative fee on the named insured for canceling the post-loss assignment, or imposing a fee to process the insurance check or to interact with the named insured’s mortgage company. c. Acting as a public adjuster without being licensed under chapter 522C. d. Receiving payments from the named insured’s insurer that are unrelated to the repair, replacement construction, or reconstruction work on the covered insured’s property, including but not limited to all of the following: (1) Additional living expenses. (2) Loss of use. (3) Loss of business income. 4. a. A post-loss assignment must include all of the following: (1) An itemized description of the work to be performed. (2) An itemized description of the materials, labor, and fees for the work to be performed. (3) A total itemized amount to be paid for the work to be performed. (4) A statement that the residential contractor has made no assurances that the claimed loss will be fully covered by the named insured’s insurance contract and shall include the following notice in capitalized fourteen point type: YOU ARE AGREEING TO GIVE UP CERTAIN RIGHTS YOU HAVE UNDER YOUR INSURANCE POLICY. PLEASE READ AND UNDERSTAND THIS DOCUMENT BEFORE SIGNING. THE ITEMIZED DESCRIPTION OF THE WORK TO BE DONE SHOWN IN THIS ASSIGNMENT FORM HAS NOT BEEN AGREED TO BY THE INSURER. THE INSURER HAS THE RIGHT TO PAY ONLY FOR THE COST TO REPAIR OR REPLACE DAMAGED PROPERTY CAUSED BY A COVERED PERIL. POST-LOSS ASSIGNMENTS ARE SUBJECT TO THE AUTHORITY OF THE IOWA INSURANCE DIVISION. YOU MAY FILE A COMPLAINT WITH THE DIVISION ON THE DIVISION’S INTERNET SITE AT IID.IOWA.GOV OR CALL THE DIVISION AT (877) 955-1212. (5) In capitalized fourteen point type and located in the immediate proximity of the space reserved in the assignment for the signature of the named insured, the following notice: YOU MAY CANCEL THIS POST-LOSS ASSIGNMENT FOR ANY REASON

Senate File 619, p. 17 WITHOUT PENALTY WITHIN FIVE (5) BUSINESS DAYS FROM THE LATER OF THE DATE THE POST-LOSS ASSIGNMENT IS FULLY EXECUTED OR THE DATE ON WHICH YOU RECEIVE A COPY OF THE FULLY EXECUTED POST-LOSS ASSIGNMENT. IF MAILED, THE CANCELLATION MUST BE POSTMARKED BEFORE THE FIVE (5) BUSINESS DAY DEADLINE. YOU MUST CANCEL THE POST-LOSS ASSIGNMENT IN WRITING AND THE CANCELLATION MUST BE DELIVERED TO (name and address of residential contractor as provided by the residential contractor). IF THE ASSIGNEE HAS NOT BEGUN SUBSTANTIALLY PERFORMING WORK ON THE PROPERTY, YOU MAY CANCEL THIS POST-LOSS ASSIGNMENT WITHOUT PENALTY AFTER AT LEAST THIRTY (30) CALENDAR DAYS AFTER THE DATE WORK ON THE PROPERTY IS SCHEDULED TO COMMENCE, OR AFTER AT LEAST THIRTY (30) CALENDAR DAYS AFTER THE POST-LOSS ASSIGNMENT IS FULLY EXECUTED IF THE POST-LOSS ASSIGNMENT DOES NOT CONTAIN A COMMENCEMENT DATE. IF YOU CANCEL THIS POST-LOSS ASSIGNMENT, THE RESIDENTIAL CONTRACTOR HAS UP TO TEN (10) BUSINESS DAYS TO RETURN TO YOU ALL PAYMENTS OR DEPOSITS YOU HAVE MADE. (6) A provision that requires the assignee to indemnify and hold harmless the assignor from liabilities, damages, losses, and costs, including but not limited to attorney fees related to the loss claim. b. A post-loss assignment shall not impair the interest of a mortgagee listed on the declarations page of the property and casualty insurance policy that is the subject of the post-loss assignment. All mortgagees shall be named as a co-payee for the payment of benefits under a property and casualty insurance policy covering residential real estate. c. A post-loss assignment shall only authorize a residential contractor to be named as a co-payee, along with the named insured and all mortgagees, for the payment of benefits under a property and casualty insurance policy covering residential real estate. d. A post-loss assignment shall not prevent or inhibit an insurer from communicating with the named insured or a mortgagee listed on the declarations page of the property and casualty insurance policy that is the subject of the post-loss assignment. e. An electronic copy of the fully executed post-loss

Senate File 619, p. 18 assignment shall be provided to the insurer of the residential real estate, the named insured, and all mortgagees of the damaged residential real estate within five business days after execution of the post-loss assignment. A paper copy shall be provided to the insurer, a named insured, and any mortgagee of the damaged residential real estate within five business days of a request by the insurer, the named insured, or a mortgagee. f. A residential contractor named in a post-loss assignment must cooperate with the insurer of the damaged residential real estate in a claim investigation by providing documents and records requested by the insurer and complying with each post-loss duty included in the named insured’s insurance policy. 5. a. A named insured shall have the right to cancel a post-loss assignment without penalty or fee under all of the following circumstances: (1) For any reason within five business days from the date on which the named insured receives a copy of the fully executed post-loss agreement. (2) The assignee has not substantially performed work on the property that is the subject of the post-loss assignment at least thirty calendar days after the date work on the property was scheduled to commence. (3) The assignee has not begun substantial work on the property that is the subject of the post-loss assignment at least thirty calendar days after the date the insured received a fully executed copy of the executed post-loss assignment and the post-loss assignment does not contain a commencement date. b. The cancellation shall be made in writing. Within ten business days of the date of the written cancellation, the residential contractor shall tender to the named insured, the landowner, or the possessor of the real estate, all payments, partial payments, or deposits that have been made by such person. 6. Any written contract, repair estimate, or work order prepared by a residential contractor to provide goods or services to be paid from the proceeds of a property and casualty insurance policy pursuant to a post-loss assignment shall include, in capitalized fourteen point type, the notice