SF 2037 (LSB 5477SS (2) 83)

SENATE FILE 2037

BY  KETTERING

A BILL FOR

An Act relating to unfair insurance trade practices involving losses requiring replacement items and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 507B.4, subsection 9, Code 2009, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  p.  Failing, when a loss requires replacement of items and the replacement items do not reasonably match in quality, color, or size, to replace all items in the area so as to conform to a reasonably uniform appearance. This provision applies to both interior and exterior losses. The insured shall not bear the cost of complying with this provision over any applicable deductible.
EXPLANATION
   This bill requires an insurer to replace all items in the area to conform to a reasonably uniform appearance when a loss requires replacement of items and the replacement items do not reasonably match in quality, color, or size. Failure to do so is an unfair insurance trade practice. The provision applies to interior and exterior losses and the insured shall not bear the cost of compliance with this provision in excess of any applicable deductible.
   A violation of this provision may result in a cease and desist order, suspension or revocation of licenses, and assessment of civil penalties.