Bill Text: IA SF2023 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act relating to unfair motor vehicle repair practices in the practice of insurance and providing penalties.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-01-23 - Subcommittee, McCoy, Petersen, and Sinclair. S.J. 117. [SF2023 Detail]
Download: Iowa-2013-SF2023-Introduced.html
Senate
File
2023
-
Introduced
SENATE
FILE
2023
BY
ZAUN
A
BILL
FOR
An
Act
relating
to
unfair
motor
vehicle
repair
practices
in
the
1
practice
of
insurance
and
providing
penalties.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5130XS
(5)
85
av/nh
S.F.
2023
Section
1.
NEW
SECTION
.
507B.3A
Unfair
or
deceptive
motor
1
vehicle
repair
practices.
2
1.
An
adjuster,
appraiser,
insurance
producer,
insurer,
3
or
employee
of
an
insurer
shall
not
do
any
of
the
following
4
in
regard
to
the
repair
of
property
damage
to
a
motor
vehicle
5
covered
by
a
motor
vehicle
insurance
policy:
6
a.
Recommend
the
use
of
a
specific
repair
facility
or
source
7
for
the
repair
of
property
damage
to
or
replacement
of
parts
on
8
a
motor
vehicle
without
informing
the
claimant
or
insured
that
9
the
claimant
or
insured
is
not
required
to
use
the
recommended
10
repair
facility
or
source.
11
b.
Require
that
an
appraisal
of
damage
to
or
repair
of
a
12
motor
vehicle
be
made
in
a
specific
repair
facility.
13
c.
Require
that
a
claimant
or
insured
use
a
specific
14
contractor
or
repair
facility
for
a
repair
service
or
repair
15
product.
16
d.
Require
a
repair
facility
to
use
a
specific
vendor
17
or
process
for
the
procurement
of
parts
or
other
materials
18
necessary
for
the
repair
of
a
motor
vehicle.
19
e.
Intimidate,
coerce,
or
threaten
a
claimant
or
insured
20
to
use
a
specific
contractor
or
repair
facility
for
a
repair
21
service
or
repair
product.
22
2.
An
adjuster
or
appraiser
shall
not
accept
a
gratuity
23
or
other
form
of
remuneration
from
a
repair
facility
for
24
recommending
that
repair
facility
to
a
claimant
or
insured.
25
3.
An
insurer
that
issues
or
delivers
a
policy
of
motor
26
vehicle
liability
insurance
in
this
state
that
provides
27
coverage
for
the
repair
of
property
damage
to
an
insured
motor
28
vehicle
shall
do
all
of
the
following:
29
a.
Authorize
repairs
to
be
made
to
the
insured
motor
30
vehicle
using
genuine
crash
parts
sufficient
to
maintain
the
31
manufacturer’s
warranty
for
fit,
finish,
structural
integrity,
32
corrosion
resistance,
dent
resistance,
and
crash
performance.
33
b.
Shall
not
require
repairs
to
be
made
to
the
insured
motor
34
vehicle
using
aftermarket
crash
parts.
35
-1-
LSB
5130XS
(5)
85
av/nh
1/
5
S.F.
2023
4.
Notwithstanding
subsection
3,
an
insured
may
consent
in
1
writing
at
the
time
of
repair
of
the
insured
motor
vehicle
to
2
the
use
of
aftermarket
crash
parts.
3
5.
This
section
applies
to
repairs
made
to
an
insured
motor
4
vehicle
during
the
five-year
period
after
the
date
of
the
5
vehicle’s
manufacture.
6
6.
A
violation
of
this
section
is
an
unfair
or
deceptive
act
7
or
practice
in
the
business
of
insurance
as
provided
in
section
8
507B.4,
subsection
3.
9
7.
As
used
in
this
section:
10
a.
“Adjuster”
or
“appraiser”
means
a
person
that
is
employed
11
by
an
insurer
as,
solicits
business
as,
or
represents
to
an
12
insured
that
the
person
is
an
adjuster
or
appraiser
of
claims
13
for
loss
or
damage
covered
by
a
motor
vehicle
insurance
policy.
14
b.
“Aftermarket
crash
parts”
means
crash
parts
that
are
all
15
of
the
following:
16
(1)
Manufactured
by
a
person
other
than
the
original
17
manufacturer
of
the
motor
vehicle
to
be
repaired.
18
(2)
For
which
the
original
manufacturer
of
the
motor
vehicle
19
has
not
authorized
the
use
of
its
name
or
trademark
by
the
20
manufacturer
of
the
crash
parts.
21
c.
“Crash
parts”
means
exterior
or
interior
sheet
metal
or
22
fiberglass
panels
and
parts
that
form
the
superstructure
or
23
body
of
a
motor
vehicle,
including
all
of
the
following:
24
(1)
Fenders.
25
(2)
Bumpers.
26
(3)
Door
panels.
27
(4)
Hoods.
28
(5)
Grills.
29
(6)
Wheel
wells.
30
(7)
Front
and
rear
lamp
display
panels.
31
d.
“Genuine
crash
parts”
means
crash
parts
that
are
all
of
32
the
following:
33
(1)
Manufactured
by
or
for
the
original
manufacturer
of
the
34
motor
vehicle
to
be
repaired.
35
-2-
LSB
5130XS
(5)
85
av/nh
2/
5
S.F.
2023
(2)
Authorized
to
carry
the
name
or
trademark
of
the
1
original
manufacturer
of
the
motor
vehicle.
2
Sec.
2.
Section
507B.6,
subsection
1,
Code
2014,
is
amended
3
to
read
as
follows:
4
1.
Whenever
the
commissioner
believes
that
any
person
has
5
been
engaged
or
is
engaging
in
this
state
in
any
unfair
method
6
of
competition
or
any
unfair
or
deceptive
act
or
practice
7
whether
or
not
defined
in
section
507B.3A,
507B.4
,
507B.4A
,
or
8
507B.5
and
that
a
proceeding
by
the
commissioner
in
respect
9
to
such
method
of
competition
or
unfair
or
deceptive
act
or
10
practice
would
be
in
the
public
interest,
the
commissioner
11
shall
issue
and
serve
upon
such
person
a
statement
of
the
12
charges
in
that
respect
and
a
notice
of
a
hearing
on
such
13
charges
to
be
held
at
a
time
and
place
fixed
in
the
notice,
14
which
shall
not
be
less
than
ten
days
after
the
date
of
the
15
service
of
such
notice.
16
Sec.
3.
Section
507B.12,
unnumbered
paragraph
1,
Code
2014,
17
is
amended
to
read
as
follows:
18
The
commissioner
may,
after
notice
and
hearing,
promulgate
19
reasonable
rules,
as
are
necessary
or
proper
to
identify
20
specific
methods
of
competition
or
acts
or
practices
which
are
21
prohibited
by
section
507B.3A,
507B.4
,
507B.4A
,
or
507B.5
,
22
but
the
rules
shall
not
enlarge
upon
or
extend
the
provisions
23
of
such
sections.
Such
rules
shall
be
subject
to
review
in
24
accordance
with
chapter
17A
.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
relates
to
certain
unfair
or
deceptive
motor
29
vehicle
repair
practices.
The
bill
prohibits
an
adjuster,
30
appraiser,
insurance
producer,
insurer,
or
employee
of
an
31
insurer
from
recommending
the
use
of
a
specific
repair
facility
32
or
source
for
the
repair
or
replacement
of
property
damage
to
a
33
motor
vehicle
without
informing
the
claimant
or
insured
that
34
use
of
the
recommended
facility
or
source
is
not
required;
35
-3-
LSB
5130XS
(5)
85
av/nh
3/
5
S.F.
2023
requiring
that
an
appraisal
of
damage
or
repair
to
a
motor
1
vehicle
be
made
in
a
specific
repair
facility;
requiring
2
a
repair
facility
to
use
a
specific
vendor
or
process
for
3
procurement
of
parts
or
other
materials
necessary
for
the
4
repair;
or
intimidating,
coercing,
or
threatening
a
claimant
or
5
insured
to
use
a
specific
contractor
or
repair
facility.
6
An
adjuster
or
appraiser
is
prohibited
from
accepting
a
7
gratuity
or
other
form
of
remuneration
from
a
repair
facility
8
for
recommending
that
repair
facility
to
a
claimant
or
insured.
9
An
insurer
that
issues
or
delivers
a
policy
of
motor
vehicle
10
liability
insurance
in
this
state
that
provides
coverage
for
11
the
repair
of
property
damage
to
an
insured
motor
vehicle
12
is
required
to
authorize
repairs
using
genuine
crash
parts
13
sufficient
to
maintain
the
manufacturer’s
warranty
on
the
14
vehicle
and
is
prohibited
from
requiring
that
repairs
be
made
15
using
aftermarket
crash
parts.
16
The
bill
applies
to
repairs
made
to
an
insured
motor
vehicle
17
during
the
five-year
period
after
the
date
of
the
vehicle’s
18
manufacture.
19
The
bill
defines
who
is
an
“adjuster”
or
“appraiser”
for
20
purposes
of
the
bill.
The
bill
also
defines
“crash
parts”
as
21
those
parts
that
form
the
superstructure
or
body
of
a
motor
22
vehicle.
“Genuine
crash
parts”
are
crash
parts
that
are
23
manufactured
by
or
for
the
original
manufacturer
of
the
insured
24
motor
vehicle
and
are
authorized
to
carry
the
name
or
trademark
25
of
the
vehicle’s
original
manufacturer.
“Aftermarket
crash
26
parts”
are
manufactured
by
a
person
other
than
the
original
27
manufacturer
of
the
vehicle
and
are
not
authorized
to
use
the
28
manufacturer’s
name
or
trademark.
29
A
violation
of
the
bill’s
provisions
is
an
unfair
or
30
deceptive
act
or
practice
in
the
business
of
insurance
under
31
Code
section
507B.4(3).
The
cease
and
desist
orders
and
civil
32
penalties
available
under
Code
chapter
507B
are
applicable
to
33
violations
of
the
bill’s
provisions.
Such
civil
penalties
may
34
not
exceed
$1,000
for
each
act,
not
exceeding
an
aggregate
35
-4-
LSB
5130XS
(5)
85
av/nh
4/
5
