Senate Study Bill 3101 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON BROWN) A BILL FOR An Act relating to motor vehicle body damage repairs performed 1 under a motor vehicle insurance policy and deceptive acts or 2 practices by motor vehicle insurers. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6155XC (3) 89 ko/rn

S.F. _____ Section 1. Section 507B.4, subsection 3, paragraph j, Code 1 2022, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (16) Failing to comply with section 3 537B.7, subsection 2. 4 Sec. 2. Section 507B.6, subsection 1, Code 2022, is amended 5 to read as follows: 6 1. Whenever the commissioner believes that any person has 7 been engaged or is engaging in this state in any unfair method 8 of competition or any unfair or deceptive act or practice 9 whether or not defined in section 507B.4 , 507B.4A , or 507B.5 , 10 or 537B.7, and that a proceeding by the commissioner in respect 11 to such method of competition or unfair or deceptive act or 12 practice would be in the public interest, the commissioner 13 shall issue and serve upon such the person a statement of the 14 charges in that respect and a notice of a hearing on such the 15 charges to . The hearing shall be held at a time and place fixed 16 in the notice, which shall not be less than ten days after the 17 date of the service of such the notice. 18 Sec. 3. Section 507B.12, subsection 1, Code 2022, is amended 19 to read as follows: 20 1. The commissioner may, after notice and hearing, 21 promulgate reasonable rules , as are necessary or proper to 22 identify specific methods of competition or acts or practices 23 which are prohibited by section 507B.4 , 507B.4A , or 507B.5 , 24 or 537B.7 but the rules shall not enlarge upon or extend the 25 provisions of such sections. Such rules shall be subject to 26 review in accordance with chapter 17A . 27 Sec. 4. NEW SECTION . 537B.7 Deceptive act or practice —— 28 insurer. 29 1. As used in this section: 30 a. “Claimant” means a person seeking body repair of a motor 31 vehicle whether that person is the insured person or a third 32 party making a claim against the insurer. 33 b. “Motor vehicle” means the same as defined in section 34 537B.4. 35 -1- LSB 6155XC (3) 89 ko/rn 1/ 2

S.F. _____ c. “Repair facility” means the same as defined in section 1 537B.4. 2 2. An insurer shall pay the amount to repair body damage 3 to a motor vehicle covered by a motor vehicle insurance policy 4 as calculated by the estimating system which the insurer 5 and the repair facility have agreed to use to determine the 6 cost of repair, using the original equipment manufacturer’s 7 specifications, of a claimant’s motor vehicle. 8 3. A violation of this section shall be an unfair or 9 deceptive act or practice in the business of insurance as 10 provide in section 507B.4, subsection 3, paragraph “j” , 11 subparagraph (16). 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill relates to the repair of body damage to a motor 16 vehicle covered by a motor vehicle insurance policy and to 17 deceptive acts or practices by motor vehicle insurers. 18 The bill makes it an unfair or deceptive act or practice in 19 the business of insurance for an insurer to fail to pay the 20 amount to repair body damage to a motor vehicle covered by a 21 motor vehicle insurance policy as calculated by the estimating 22 system which the insurer and the repair facility have agreed to 23 use to determine the cost of repair. 24 “Claimant” is defined in the bill as an insured person, 25 or a third party making a claim against the insurer, seeking 26 body repair of a motor vehicle. “Motor vehicle” and “repair 27 facility” are defined in the bill. 28 The bill makes conforming changes to Code sections 507B.6 29 and 507B.12. 30 -2- LSB 6155XC (3) 89 ko/rn 2/ 2