Senate File 2075
REQUIRING REASONABLE EXCEPTIONS TO INSURANCE RATES
FOR CONSUMERS WHOSE CREDIT INFORMATION IS INFLUENCED
BY EXTRAORDINARY LIFE CIRCUMSTANCES AND PROVIDING AN
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 515.103, Code 2009, is amended by adding
the following new subsection:
NEW SUBSECTION. 5A. Extraordinary life circumstances.
a. An insurer authorized to do business in Iowa that uses
credit information to underwrite or rate risks for a policy of
personal insurance shall, on written request from a consumer,
provide reasonable exceptions to the insurer's rates, rating
classifications, company or tier placement, or underwriting
rules or guidelines for a consumer who has experienced and
whose credit information has been directly influenced by any
of the following events:
(1) Catastrophic event, as declared by the federal or a
(2) Serious illness or injury, or serious illness or injury
to an immediate family member.
(3) Death of a spouse, child, or parent.
(4) Divorce or involuntary interruption of legally owed
alimony or support payments.
(5) Identity theft.
(6) Temporary loss of employment for a period of three
months or more, if such loss results from involuntary
termination of employment.
(7) Military deployment overseas.
(8) Other events, as determined by the insurer.
b. If a consumer submits a request for an exception as set
forth in paragraph "a", an insurer may, in its sole discretion,
but is not required to, do any of the following:
(1) Require the consumer to provide reasonable written and
independently verifiable documentation of the event.
(2) Require the consumer to demonstrate that the event
had direct and meaningful impact on the consumer's credit
(3) Require such request to be made no more than sixty days
from the date of the application for insurance or the policy
(4) Grant an exception despite the fact that the consumer
did not provide the initial request for an exception in
(5) Grant an exception where the consumer asks for
consideration of repeated events or the insurer has considered
this event previously.
c. An insurer is not out of compliance with any law or rules
relating to underwriting, rating, or rate=filing as a result
of granting an exception under this subsection. Nothing in
this subsection shall be construed to provide a consumer or
other insured with a cause of action that does not exist in the
absence of this subsection.
d. An insurer shall provide notice to consumers that
reasonable exceptions are available pursuant to this subsection
and information about how the consumer may inquire further
about such exceptions.
e. Within thirty days of the insurer's receipt of sufficient
documentation of an event described in paragraph "a" from a
consumer, the insurer shall inform the consumer of the outcome
of the consumer's request for a reasonable exception. Such
communication shall be in writing or provided to a consumer
using the same medium as the request.
Sec. 2. APPLICABILITY DATE. This Act applies to personal
insurance contracts or policies delivered, issued for delivery,
continued, or renewed in this state on or after July 1, 2010.
JOHN P. KIBBIE
President of the Senate
PATRICK J. MURPHY
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 2075, Eighty=third General Assembly.
MICHAEL E. MARSHALL
Secretary of the Senate
Approved , 2010
CHESTER J. CULVER