House File 2489 - Introduced HOUSE FILE 2489 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HF 2112) A BILL FOR An Act concerning choice of automobile glass replacement or 1 repair facilities under automobile liability insurance 2 policies and requiring a study of automobile glass 3 replacement or repair insurance claims processing 4 procedures. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5190HV (2) 83 av/nh

H.F. 2489 Section 1. NEW SECTION . 516B.4 Automobile glass replacement 1 or repair —— prohibited activities. 2 1. An insurer transacting business in this state, 3 including its producers and adjusters, that issues or renews 4 an automobile liability policy shall not, individually or with 5 others, directly or indirectly, do any of the following: 6 a. Require that an insured under the policy use a particular 7 company or location for providing automobile glass replacement, 8 glass repair services, or glass products insured, in whole or 9 in part, unless specified under the terms of the policy. 10 b. Engage in any act or practice of intimidation, coercion, 11 or threat for or against an insured to use a particular company 12 or location to provide automobile glass replacement, glass 13 repair services, or glass products insured, in whole or in 14 part, under the terms of the policy. 15 2. This section does not require an insurer to pay more for 16 automobile glass replacement, glass repair services, or glass 17 products than the price that is reasonable within the market 18 of the local area where the replacement or repair is being 19 performed. 20 3. This section does not prohibit an insurer from agreeing 21 to pay the full cost of glass replacement or repair, less any 22 deductible under the terms of the policy. 23 Sec. 2. AUTOMOBILE GLASS REPLACEMENT OR REPAIR INSURANCE 24 CLAIMS PROCESSING —— STUDY. The commissioner of insurance, 25 in conjunction with the attorney general, the Iowa insurance 26 institute, the independent glass association, the Iowa 27 retail federation, insurers, automobile glass third-party 28 administrators, and any other interested parties, shall conduct 29 a review of automobile glass replacement or repair insurance 30 claims processing procedures and shall submit a report 31 summarizing that review to the general assembly by January 15, 32 2011. 33 EXPLANATION 34 This bill relates to automobile glass repair and replacement 35 -1- LSB 5190HV (2) 83 av/nh 1/ 2

H.F. 2489 under automobile liability policies issued or renewed in this 1 state. 2 New Code section 516B.4 prohibits an automobile liability 3 insurer from requiring an insured to use a particular company 4 or location for providing automobile glass replacement, glass 5 repair services, or glass products pursuant to the policy 6 unless specified under the terms of the policy. An insurer 7 is not required to pay more than the market price for such 8 services. 9 The bill also requires the commissioner of insurance, in 10 conjunction with the attorney general and other specified 11 groups, to conduct a review of automobile glass replacement 12 or repair insurance claims processing procedures in the state 13 and to provide a report summarizing that review to the general 14 assembly by January 15, 2011. 15 -2- LSB 5190HV (2) 83 av/nh 2/ 2