House File 2122 - Introduced



                                       HOUSE FILE       
                                       BY  QUIRK


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

                                      A BILL FOR

  1 An Act prohibiting insurers from requiring repair businesses to
  2    buy parts and supplies from specified sellers and providing
  3    penalties.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5107YH 82
  6 av/sc/14

PAG LIN



  1  1    Section 1.  Section 507B.4, Code Supplement 2007, is
  1  2 amended by adding the following new subsection:
  1  3    NEW SUBSECTION.  9A.  UNFAIR REPAIR PRACTICES.  Requiring a
  1  4 repair business that performs repairs, on behalf of an
  1  5 insurer, to the property of an insured or beneficiary to buy
  1  6 supplies and parts from a seller or list of sellers specified
  1  7 by the insurer.  An insured, beneficiary, or repair business
  1  8 may submit a written, documented complaint to the commissioner
  1  9 alleging a violation of this subsection.
  1 10                           EXPLANATION
  1 11    This bill prohibits an insurer from requiring repair
  1 12 businesses that perform repairs, on behalf of the insurer, to
  1 13 the property of an insured or beneficiary to buy supplies and
  1 14 parts from a seller or list of sellers specified by the
  1 15 insurer.
  1 16    The bill defines such practices of insurers or their agents
  1 17 as prohibited unfair methods of competition and unfair or
  1 18 deceptive acts or practices in the business of insurance.  An
  1 19 insured, beneficiary, or repair business may submit a written,
  1 20 documented complaint to the commissioner of insurance alleging
  1 21 a violation of the bill's provisions.
  1 22    Pursuant to Code section 507B.7, a violation of the bill is
  1 23 punishable by a civil penalty assessed by the commissioner of
  1 24 insurance of not more than $1,000 for each act or violation,
  1 25 but not to exceed an aggregate of $10,000, unless the person
  1 26 knew or reasonably should have known the person was in
  1 27 violation of the bill, in which case the penalty shall not
  1 28 exceed $5,000 for each act or violation, and not be more than
  1 29 $50,000 in the aggregate.  A violation of the bill may also
  1 30 result in the suspension or revocation of the violator's
  1 31 license.
  1 32 LSB 5107YH 82
  1 33 av/sc/14