SF 42 (LSB 1808XS (1) 85)

SENATE FILE 42

BY  ZAUN

A BILL FOR

An Act requesting establishment of an interim study committee on automobile insurance direct repair programs.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  INTERIM STUDY COMMITTEE —— AUTOMOBILE INSURANCE DIRECT REPAIR PROGRAMS.
   1.  The legislative council is requested to establish an interim study committee to study direct repair programs used by some automobile insurance companies to provide repairs for the insurance company’s claimants. The study shall include but is not limited to a review and analysis of the use of such direct repair programs by the automobile insurance industry in Iowa and the effect of the use of such programs on automotive body repair shops, insurance costs, and Iowa consumers. In addition to legislative members, the membership of the interim study committee shall include the following public members:
   a.  Three consumers, one designated by the insurance consumer advocate, one designated by the Iowa citizen action network, and one designated by abate of Iowa, incorporated.
   b.  Four members who represent automotive body repair shops in the state, two designated by the national federation of independent business, and two designated by the association of business and industry.
   c.  Four members from the automobile insurance industry designated by the federation of Iowa insurers.
   2.  The committee shall meet twice during the 2013 legislative interim and shall submit findings and any recommendations in a report to the general assembly by January 1, 2014.
EXPLANATION
   This bill requests that the legislative council establish an interim study committee to study direct repair programs used by some automobile insurance companies to provide repairs for the insurance company’s claimants. The study shall include a review and analysis of the use of such programs in Iowa and their effect on automotive body repair shops, insurance costs, and Iowa consumers. In addition to legislative members, the membership of the committee shall include 11 public members designated by specified entities.
   The committee shall meet twice during the 2013 legislative interim and submit its findings and any recommendations to the general assembly by January 1, 2014.