S.F. 2233 Section 1. Section 507B.4, subsection 3, Code 2026, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . w. Insured —— requests for information. 3 Refusing to provide requested information to an insured in 4 accordance with section 507B.4D on the basis that the requested 5 information is privileged, if the information is later 6 determined not to be privileged. 7 Sec. 2. NEW SECTION . 507B.4D Insured —— requests for 8 information. 9 1. As used in this section, unless the context otherwise 10 requires: 11 a. “Insured” means a person covered under an insurance 12 policy. 13 b. “Insurer” means a person licensed to transact the 14 business of insurance in this state. 15 c. “Person” means an individual, corporation, limited 16 liability company, business trust, estate, trust, partnership 17 or association, or any other legal entity. 18 2. Except as provided under subsection 3, an insurer shall 19 provide, within fifteen calendar days of receipt of a request, 20 the following information to an insured if requested by the 21 insured: 22 a. A certified copy of the insured’s insurance policy. 23 b. A copy of a claim application filed by the insured. 24 c. The name and contact information of any person involved 25 on the insurer’s behalf with a claim filed by the insured. 26 d. An accounting of the amount paid on a claim filed by the 27 insured. 28 e. An accounting of the reserve set on a claim filed by the 29 insured. 30 f. A copy of internal communications, notes, or memos 31 related to a claim filed by the insured, including internal 32 communications, notes, or memos of a third-party administrator 33 or independent adjusting firm. 34 g. A copy of communications related to a claim filed by the 35 -1- LSB 5777XS (2) 91 nls/ko 1/ 15

S.F. 2233 insured between the insurer and any other party. 1 h. A copy of all information in the possession of the 2 insurer related to a claim filed by the insured, including 3 information submitted by the insured to the insurer, and 4 information the insurer independently gathered. 5 i. Other information required to be provided to an insured 6 upon request pursuant to rules adopted by the commissioner. 7 3. An insurer shall not be required to provide privileged 8 information to an insured. If an insurer refuses to provide 9 information to an insured on the basis that the information 10 is privileged, the insurer shall provide the insured with a 11 written explanation for the basis of the privilege. If the 12 information is later determined not to be privileged, the 13 insurer’s prior refusal to provide the requested information 14 shall constitute an unfair method of competition and unfair or 15 deceptive act or practice under section 507B.4. 16 Sec. 3. NEW SECTION . 507B.4E Insurance policies —— 17 prohibited deadlines and statutes of limitation. 18 An insurer shall not include any of the following in an 19 insurance policy: 20 1. A deadline for an insured to provide notice of a loss 21 to the insurer if the insured could not have reasonably known 22 about the loss, and the insurer will not be prejudiced by a 23 delay in notice. 24 2. If the insurance policy provides for replacement cost, 25 a deadline for the insured to recover the depreciation amount 26 that is less than one year from the date that the insurer made 27 the most recent actual cash value payment to the insured. An 28 insurer shall provide written notice to the insured of the 29 deadline for the insured to recover the depreciation amount 30 no later than ninety calendar days prior to the date of the 31 deadline. 32 3. Language that imposes a statute of limitations for an 33 insured to file a lawsuit against the insurer for wrongfully 34 denying a claim submitted by the insured to less than five 35 -2- LSB 5777XS (2) 91 nls/ko 2/ 15

S.F. 2233 years from the date of the loss that is the subject of the claim 1 that the insurer denied, or less than two years from the date 2 of the denial of the claim, whichever is later. An insurer 3 shall provide written notice to the insured of the statute of 4 limitations deadline for the insured to file a lawsuit related 5 to a denied claim no later than ninety calendar days prior to 6 the date of the deadline. 7 Sec. 4. NEW SECTION . 515.116 Loss calculations —— property 8 insurance claims. 9 1. Definitions. As used in this section, unless the context 10 otherwise requires: 11 a. “Actual cash value” means the replacement cost of 12 property at the time of the loss, less depreciation, if 13 any. If the replacement cost of property at the time of the 14 loss, less depreciation, cannot be ascertained, a person may 15 determine the actual cash value of property using the market 16 value, diminished value, or other evidence or information to 17 determine the actual cash value of property at the time of the 18 loss. 19 b. “Commissioner” means the commissioner of insurance. 20 c. “Insurance policy” means a property insurance policy 21 issued by an insurer. 22 d. “Insured” means a named insured covered under an 23 insurance policy. 24 e. “Insurer” means a person to whom the commissioner of 25 insurance has issued a property insurance producer license. 26 f. “Line of sight” means any location a reasonable person 27 would stand, on the ground or any floor of an insured’s damaged 28 structure, to view, without obstruction or the use of aerial 29 tools or technology, the damaged area of the interior or 30 exterior of the damaged structure from a reasonable distance. 31 “Line of sight” is not limited to a view of the insured’s 32 damaged structure from the location at which the damage 33 occurred. 34 g. “Reasonable distance” means, for exterior repair or 35 -3- LSB 5777XS (2) 91 nls/ko 3/ 15

S.F. 2233 replacement, a vantage point approximately thirty feet from 1 where the repair or replacement is to occur. A “reasonable 2 distance” for interior repair or replacement means a vantage 3 point approximately five feet from where the repair or 4 replacement is to occur. Based on a particular property, 5 “reasonable distance” may be determined to be greater than or 6 less than thirty feet for exterior repair, or greater than or 7 less than five feet for interior repair. 8 h. “Reasonably similar appearance” means if, within a 9 line of sight, a person viewing the repaired or replaced 10 property would find the property to resemble the property’s 11 preloss condition, or would find the repaired or replaced 12 property indistinguishable from the remaining original 13 property. Whether a replacement results in a reasonably 14 similar appearance is a fact-specific determination made 15 on a case-by-case basis considering the totality of the 16 circumstances. 17 2. Replacement cost. For an insurance policy providing for 18 the adjustment and settlement of first-party losses based on 19 replacement cost, all of the following shall apply: 20 a. When a loss requires repair or replacement of a product 21 or part, consequential physical damage incurred during the 22 repair or replacement of the product or part shall be included 23 in the calculation of loss. The insured shall not be required 24 to pay for betterment or other costs, except for any applicable 25 deductible. 26 b. (1) When a loss requires repair or replacement of a 27 product or part, the insurer shall repair or replace as much 28 of the product or part as is necessary to achieve a reasonably 29 similar appearance. 30 (2) An insurer shall have the burden to prove that a 31 proposed repair or replacement of a product or part will 32 achieve a reasonably similar appearance, after the insurer 33 conducts a comparison of the original product or part to the 34 proposed repair or replacement product or part. 35 -4- LSB 5777XS (2) 91 nls/ko 4/ 15

S.F. 2233 (3) As necessary to determine whether a proposed repair 1 or replacement will achieve a reasonably similar appearance, 2 an insurer may compel an insured to complete the repair or 3 replacement at the expense of the insurer. The insured shall 4 not bear any cost over the insured’s applicable deductible, if 5 any. 6 (4) An insurer that includes, in an insurance policy 7 providing for the adjustment and settlement of first-party 8 losses based on replacement cost, an endorsement that excludes 9 or limits the requirement for a repair or replacement product 10 or part to achieve a reasonably similar appearance shall not 11 be subject to subparagraphs (1) through (3), provided the 12 endorsement meets all of the following requirements: 13 (a) The endorsement is approved by the commissioner. 14 (b) The endorsement is listed in the insurance policy 15 declarations page. 16 (c) The endorsement results in a premium discount for the 17 insured. 18 (d) The endorsement includes a disclosure statement, 19 in twelve point or larger bold font, informing the insured 20 that the insured is forfeiting the rights provided under 21 subparagraphs (1) through (3). 22 (e) The endorsement is signed by the insured. 23 c. (1) When a loss requires repair or replacement of a 24 building, the insurer shall repair or replace as much of the 25 building as is necessary to bring the building into compliance 26 with the building code adopted by the jurisdiction in which 27 the damaged building is located. If the jurisdiction has not 28 adopted a building code, the insurer shall repair or replace as 29 much of the building as is necessary to bring the building into 30 compliance with the state building code. The insured shall 31 not bear the cost of betterment or any cost except for the 32 applicable deductible, if any. 33 (2) An insurer that includes, in an insurance policy 34 providing for the adjustment and settlement of first-party 35 -5- LSB 5777XS (2) 91 nls/ko 5/ 15

S.F. 2233 losses based on replacement cost, an endorsement that excludes 1 or limits the requirement for a repair or replacement of a 2 building to comply with the building code adopted by the 3 jurisdiction in which the damaged building is located or the 4 state building code shall not be subject to subparagraph 5 (1) provided the endorsement meets all of the following 6 requirements: 7 (a) The endorsement is approved by the commissioner. 8 (b) The endorsement is listed in the insurance policy 9 declarations page. 10 (c) The endorsement results in a premium discount for the 11 insured. 12 (d) The endorsement includes a disclosure statement, 13 in twelve point or larger bold font, informing the insured 14 that the insured is forfeiting the rights provided under 15 subparagraph (1). 16 (e) The endorsement is signed by the insured. 17 d. (1) The insurance policy shall not include a roof 18 payment schedule, or a similar provision, intended to reduce 19 the insurer’s liability for damage to roof surfaces or to 20 property otherwise insured at a replacement cost. 21 (2) An insurer that includes, in an insurance policy 22 providing for the adjustment and settlement of first-party 23 losses based on replacement cost, an endorsement that excludes 24 or limits the insurer’s liability for damage to roof surfaces 25 or to property otherwise insured at a replacement cost shall 26 not be subject to subparagraph (1), provided the endorsement 27 meets all of the following requirements: 28 (a) The endorsement is approved by the commissioner. 29 (b) The endorsement is listed in the insurance policy 30 declarations page. 31 (c) The endorsement results in a premium discount for the 32 insured. 33 (d) The endorsement includes a disclosure statement, 34 in twelve point or larger bold font, informing the insured 35 -6- LSB 5777XS (2) 91 nls/ko 6/ 15

S.F. 2233 that the insured is forfeiting the rights provided under 1 subparagraph (1). 2 (e) The endorsement is signed by the insured. 3 e. The replacement cost of damaged property shall be 4 calculated based on the replacement cost on the date that the 5 damaged property is repaired or replaced. 6 3. Actual cash value. For an insurance policy providing 7 for adjustment and settlement of first-party losses based on 8 actual cash value, if the actual cash value of a claim is 9 not calculated as the replacement cost less depreciation, 10 the insurer shall provide a copy of the claim file worksheet 11 detailing all deductions for depreciation and a detailed 12 written explanation that describes the manner in which 13 depreciation was calculated and the actual cash value 14 determined. 15 4. Total loss. For property covered by an insurance 16 policy that is wholly destroyed or damaged and cannot be 17 repaired, or the cost of repair exceeds the value of the 18 property, the insurer shall pay the insured the limit of the 19 insurance policy. The insurer shall not withhold the cost of 20 depreciation or the insured’s deductible. 21 5. Cosmetic damage. 22 a. An insurance policy shall not include a provision that 23 requires covered property damage to satisfy certain criteria in 24 order to exclude or limit the insurer’s liability for cosmetic 25 or nonfunctional damages. 26 b. An insurer that includes an endorsement insurance policy 27 that establishes criteria that covered property must satisfy 28 in order for the insured to receive cosmetic or nonfunctional 29 damages shall not be subject to this subsection provided the 30 endorsement meets all of the following requirements: 31 (1) The endorsement is approved by the commissioner. 32 (2) The endorsement is listed in the insurance policy 33 declarations page. 34 (3) The endorsement results in a premium discount for the 35 -7- LSB 5777XS (2) 91 nls/ko 7/ 15

S.F. 2233 insured. 1 (4) The endorsement includes a disclosure statement, in 2 twelve point or larger bold font, informing the insured that 3 the insured is forfeiting the rights provided under paragraph 4 “a” . 5 (5) The endorsement is signed by the insured. 6 Sec. 5. NEW SECTION . 515.117 Adjustment and payment of 7 claims. 8 1. Definitions. As used in this section, unless the context 9 otherwise requires: 10 a. “Commissioner” means the commissioner of insurance. 11 b. “Insurance policy” means a property insurance policy 12 issued by an insurer. 13 c. “Insured” means a named insured covered under an 14 insurance policy. 15 d. “Insurer” means a person to whom the commissioner of 16 insurance has issued a property insurance producer license. 17 2. Acknowledgment of claim. No later than fifteen business 18 days after the date an insurer receives notice of a claim, 19 or notice that a claim has been received by an agent of the 20 insurer, the insurer shall do all of the following: 21 a. Provide acknowledgment to the insured that the claim has 22 been received. If the acknowledgment is not made in writing, 23 the insurer shall make a record specifying the date, manner, 24 and content of the acknowledgment. 25 b. Commence review or investigation of the claim as 26 necessary. 27 c. Request that the insured provide any item, statement, 28 or form related to the claim, including any proof of loss form 29 required by the insurer, necessary for review or investigation 30 of the claim. The insurer shall provide the insured with any 31 form or instruction necessary for the insured to provide such 32 item, statement, or form. The insurer may request additional 33 items, statements, or forms related to the claim during the 34 course of the review or investigation. 35 -8- LSB 5777XS (2) 91 nls/ko 8/ 15

S.F. 2233 3. Communications. An insurer shall reply within fifteen 1 business days from the date of receipt to a communication 2 from an insured to which an insured would reasonably expect 3 a response from the insurer. The insurer’s response shall 4 address all material parts of the insured’s communication. 5 4. Acceptance or denial of claim. 6 a. Except as provided by paragraph “b” , an insurer shall 7 notify an insured in writing of the acceptance or denial of 8 a claim no later than thirty calendar days from the date of 9 receipt of a properly completed proof of loss form. 10 b. If there is a reasonable basis, supported by specific 11 evidence, for an insurer to believe that an insured 12 fraudulently caused or contributed to a claim, an insurer shall 13 do all of the following: 14 (1) Notify the insured, no later than thirty calendar days 15 from the date of receipt of a properly completed proof of loss 16 form, of the reason additional time is required to investigate 17 the claim. 18 (2) Notify the insured every thirty calendar days following 19 the notice under subparagraph (1) of the reason additional time 20 is required to investigate the claim. 21 (3) Within a reasonable amount of time after completing an 22 investigation of the claim and making a determination whether 23 the insured fraudulently caused or contributed to the claim, 24 notify the insured of the acceptance or denial of the claim. 25 c. If any part of a claim is denied by an insurer, the 26 notice required by paragraph “a” or paragraph “b” , subparagraph 27 (3), must include a complete and detailed explanation of the 28 reason for the denial and include a citation to applicable 29 insurance policy language or law that is the basis for the 30 denial. If a denial of a claim, in part or in full, is based 31 on a written report or other documentation of the claim by the 32 insurer or by an agent of the insurer, the written report or 33 other documentation shall be provided to the insured. 34 5. Inspection of damaged property. 35 -9- LSB 5777XS (2) 91 nls/ko 9/ 15

S.F. 2233 a. If, prior to an insurer accepting or denying a claim, 1 inspection of damaged property that is the subject of a claim 2 is required, the insurer shall schedule and complete the 3 inspection no later than thirty calendar days from the date of 4 receipt of a properly completed proof of loss form. 5 b. An insurer shall complete an inspection of damaged 6 property within the time limit under paragraph “a” unless 7 an act of nature prevents the insurer from completing the 8 inspection. If an inspection is delayed the insurer shall 9 notify the insured within the time limit under paragraph “a” , 10 and every thirty calendar days thereafter until an inspection 11 is completed, of the reason the inspection is delayed or 12 continuing to be delayed. 13 6. Claim payment. 14 a. Except as otherwise provided by this section, if an 15 insurer accepts liability for all or part of a claim, the 16 insurer shall pay the portion of the claim for which liability 17 has been accepted not later than ten business days after the 18 date liability was accepted. 19 b. If payment of all or part of a claim is conditioned on 20 the performance of an act by the insured, the insurer shall pay 21 the portion of the claim for which liability has been accepted 22 not later than ten business days after the act is performed by 23 the insured. 24 c. This subsection shall not apply if, through litigation, 25 arbitration, mediation, or appraisal, it is discovered that any 26 of the following are true: 27 (1) The damaged property that is the subject of a claim does 28 not belong to the insured that filed the claim, such that the 29 insured did not suffer any loss. 30 (2) The insured’s insurance policy does not provide 31 coverage for the damaged property that is the subject of a 32 claim. 33 (3) The claim is otherwise invalid. 34 7. Penalties. 35 -10- LSB 5777XS (2) 91 nls/ko 10/ 15

S.F. 2233 a. If an insurer that accepts all or part of a claim 1 violates subsection 4, 5, or 6, the insurer shall be liable 2 for, in an action brought by an insured against the insurer 3 in which the insured prevails, the portion of the claim for 4 which the insurer accepted liability plus simple interest at 5 an annual rate of eighteen percent on the portion of the claim 6 not adjusted or paid pursuant to this section, the insured’s 7 cost of litigation, including reasonable attorney fees, and 8 any other damages provided by law. Simple interest on a claim 9 shall begin accruing on the date of the insurer’s violation and 10 shall accrue until the date the underlying claim and interest 11 is paid in full by the insurer. 12 b. This subsection shall not be construed to prevent or 13 replace an award of prejudgment interest or any other damages 14 as provided by law. 15 8. Public adjusters. 16 a. An insurer shall not include a provision in an insurance 17 policy that prohibits an insured from contracting with a public 18 adjuster. 19 b. For purposes of this subsection, “public adjuster” means 20 the same as defined in section 522C.2. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill relates to insurer’s requests for information 25 and claim timelines, and property and casualty insurer’s loss 26 calculations, adjustments, payments of claims, and policy 27 terms. 28 Under the bill, an insurer shall provide to an insured, 29 within 15 days of receipt of a request, copies of requested 30 documents, the name and contact information of a person 31 involved on the insurer’s behalf with a claim, an accounting of 32 the amount paid and reserve set on a claim, or other required 33 information as detailed by the bill. The insurer is not 34 required to provide privileged information, but must provide 35 -11- LSB 5777XS (2) 91 nls/ko 11/ 15

S.F. 2233 to the insured a written explanation for the basis of the 1 privilege. If the information is later determined not to be 2 privileged, the insurer’s prior refusal constitutes an unfair 3 method of competition and unfair or deceptive act or practice. 4 The bill makes a conforming change to Code section 507B.4(3). 5 An insurer shall not include in a policy a deadline for an 6 insured to provide notice of a loss if the insured could not 7 have reasonably known about the loss and the insurer will not 8 be prejudiced by a delay. If a policy provides for replacement 9 cost, an insurer shall not include a deadline for the insured 10 to recover the depreciation amount that is less than one year 11 from the insurer’s most recent actual cash value payment to 12 the insured, and shall notify the insured of such deadline no 13 later than 90 days prior to the deadline. An insurer shall 14 not include in a policy language that imposes a statute of 15 limitations for an insured to sue the insurer for wrongfully 16 denying a claim to less than five years from the date of the 17 loss, or two years from the denial of the claim, whichever is 18 later, and shall notify the insured of such deadline no later 19 than 90 days prior to the deadline. 20 For a policy providing for replacement cost for property, 21 and the loss requires repair or replacement of a product or 22 part, consequential physical damage shall be included in the 23 calculation of loss, the insured shall not be required to pay 24 for betterment or costs other than an applicable deductible, 25 and the insurer shall repair or replace as much of the 26 property necessary to achieve a reasonably similar appearance 27 as detailed by the bill. “Reasonably similar appearance” 28 is defined by the bill. If the loss requires repair or 29 replacement of a building, the insurer shall repair or replace 30 as much of the building necessary to bring the building into 31 compliance with the local or state building code, and the 32 insured shall not be required to pay for betterment or costs 33 other than an applicable deductible. The requirement that an 34 insurer bring a building into compliance with a local or state 35 -12- LSB 5777XS (2) 91 nls/ko 12/ 15

S.F. 2233 building code may be waived pursuant to an endorsement in a 1 policy as detailed by the bill. 2 A policy shall not include a roof payment schedule or 3 a similar provision, or a provision that requires covered 4 property damage to satisfy certain criteria in order to exclude 5 or limit the insurer’s liability for cosmetic or nonfunctional 6 damages, unless an endorsement providing otherwise is included 7 in a policy as detailed by the bill. 8 The replacement cost of damaged property shall be calculated 9 based on the date the damaged property is repaired or replaced. 10 For a policy providing for actual cash value for a claim, 11 and the actual cash value is not calculated as the replacement 12 cost less depreciation, the insurer shall provide the insured 13 a copy of the claim file worksheet and an explanation of the 14 calculation of depreciation and determination of the actual 15 cash value. “Actual cash value” is defined by the bill. 16 For property covered by a policy that is wholly destroyed or 17 damaged and cannot be repaired, or is too expensive to repair, 18 the insurer shall pay the limit of the policy and shall not 19 withhold the cost of depreciation or the deductible. 20 The bill requires an insurer to, within 15 days of receiving 21 notice of a claim, acknowledge receipt of the claim to the 22 insured, commence review or investigation of the claim, 23 and request from the insured any item, statement, or form 24 related to the claim. An insurer shall reply within 15 days 25 to a communication from an insured to which an insured would 26 reasonably expect a response, and shall address all material 27 parts of the insured’s communication. 28 An insurer shall notify an insured of the acceptance or 29 denial of a claim no later than 30 days from the date of receipt 30 of a properly completed proof of loss form. If an insurer 31 believes an insured fraudulently caused or contributed to a 32 claim, the insurer shall notify the insured within 30 days of 33 receiving a proof of loss form of the reason additional time is 34 required to investigate the claim, notify the insured every 30 35 -13- LSB 5777XS (2) 91 nls/ko 13/ 15

S.F. 2233 calendar days thereafter of the continuing reason additional 1 time is required, and, within a reasonable amount of time after 2 completing an investigation and a determination whether the 3 insured fraudulently caused or contributed to the claim, notify 4 the insured of the acceptance or denial of the claim. 5 If part of a claim is denied by an insurer, the notice 6 must include an explanation of the reason for the denial and 7 a citation to applicable policy language or law that is the 8 basis for the denial. If a denial is based on a written report 9 or other documentation, the report or documentation shall be 10 provided to the insured. 11 If, prior to accepting or denying a claim, inspection of 12 damaged property under a claim is required, the insurer shall 13 schedule and complete the inspection within 30 days of receipt 14 of a proof of loss form. The inspection may only be delayed if 15 an act of nature reasonably prevents the inspection, in which 16 case the insurer shall notify the insured of the reason for 17 delay. 18 If an insurer accepts liability for all or part of a claim, 19 the insurer shall pay the accepted portion of the claim within 20 10 days. If payment is conditioned on the performance of an 21 act by the insured, the insurer shall pay the portion for which 22 liability has been accepted within 10 days of the act being 23 performed. Payment of a claim shall not be required if it is 24 discovered that the damaged property does not belong to the 25 insured, the policy does not provide coverage for the damaged 26 property, or the claim is otherwise invalid. 27 An insurer that violates the bill and has accepted all or 28 part of a claim is liable for, in an action brought by an 29 insured in which the insured prevails, the portion of the claim 30 for which the insurer accepted liability plus simple interest 31 at an annual rate of 18 percent, the insured’s reasonable 32 attorney fees, costs of litigation, and any other damages 33 provided by law. The bill shall not be construed to prevent or 34 replace an award of prejudgment interest or any other damages 35 -14- LSB 5777XS (2) 91 nls/ko 14/ 15