Senate File 2037 - Introduced SENATE FILE 2037 BY KETTERING A BILL FOR An Act relating to unfair insurance trade practices involving 1 losses requiring replacement items and providing penalties. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5477SS (2) 83 av/nh

S.F. 2037 Section 1. Section 507B.4, subsection 9, Code 2009, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . p. Failing, when a loss requires replacement 3 of items and the replacement items do not reasonably match in 4 quality, color, or size, to replace all items in the area so as 5 to conform to a reasonably uniform appearance. This provision 6 applies to both interior and exterior losses. The insured 7 shall not bear the cost of complying with this provision over 8 any applicable deductible. 9 EXPLANATION 10 This bill requires an insurer to replace all items in the 11 area to conform to a reasonably uniform appearance when a loss 12 requires replacement of items and the replacement items do not 13 reasonably match in quality, color, or size. Failure to do so 14 is an unfair insurance trade practice. The provision applies 15 to interior and exterior losses and the insured shall not bear 16 the cost of compliance with this provision in excess of any 17 applicable deductible. 18 A violation of this provision may result in a cease and 19 desist order, suspension or revocation of licenses, and 20 assessment of civil penalties. 21 -1- LSB 5477SS (2) 83 av/nh 1/ 1