House File 441

                                       HOUSE FILE       
                                       BY  HEATON


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to insurance coverage for the diminution in value
  2    of certain damaged automobiles.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1564HH 80
  5 av/cf/24

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
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