S.F. 2196 Section 1. Section 507B.4, subsection 3, paragraph j, Code 1 2026, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (16) Failing to wait at least seventy-two 3 hours before settling or attempting to settle a motor vehicle 4 claim as required in section 507B.10. 5 Sec. 2. NEW SECTION . 507B.10 Waiting period before settling 6 motor vehicle claims. 7 1. An insurer shall not settle or attempt to settle a motor 8 vehicle claim during the first seventy-two hours after the 9 occurrence of the event giving rise to the claim. 10 2. An insurer’s duty to promptly settle a claim is tolled 11 during the mandatory waiting period described in subsection 1. 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 prohibits an insurer from settling or attempting 16 to settle a motor vehicle claim during the first 72 hours after 17 the occurrence of the event giving rise to the claim. An 18 insurer’s duty to promptly settle a claim is tolled during the 19 mandatory waiting period. 20 A person who violates a provision of the bill is subject 21 to entry of a cease and desist order, may be ordered by the 22 commissioner of insurance to pay a civil penalty ranging from 23 $1,000 to $50,000 under Code section 507B.7, and if the person 24 has a license to operate the person’s business, the license is 25 subject to suspension or revocation. 26 -1- LSB 6676XS (2) 91 th/ns 1/ 1