Text: HF2333            Text: HF2335
Complete Bill History


House File 2334

HOUSE FILE BY ALONS, BAUDLER, DE BOEF, CHAMBERS and MERTZ Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the ownership of automobile repair facilities 2 by persons engaged in the business of insurance and providing 3 penalties. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5405YH 80 6 av/cf/24 PAG LIN 1 1 Section 1. Section 507B.4, Code 2003, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 15. AUTOMOBILE REPAIR FACILITY OWNERSHIP. 1 4 Ownership or receipt of any financial benefit by a person from 1 5 an automobile repair facility or any other form of direct or 1 6 indirect consideration from any individual or entity for 1 7 referring insureds to that individual or entity or their 1 8 designee for vehicle repairs covered under the automobile 1 9 comprehensive coverage, property damage coverage, or 1 10 automobile collision coverage of a commercial or noncommercial 1 11 policy of automobile insurance issued by the person. For the 1 12 purposes of this subsection, "financial benefit" means 1 13 receiving any commission or gratuity, discount on repair 1 14 costs, free repairs, employment by a repair facility, or 1 15 similar benefit. 1 16 EXPLANATION 1 17 This bill provides that it is an unfair method of 1 18 competition or a deceptive act or practice for a person 1 19 engaged in the business of insurance to own or receive any 1 20 financial benefit from an automobile repair facility or any 1 21 other form of direct or indirect consideration from any 1 22 individual or entity for referring an insured to that 1 23 individual or entity or their designee for vehicle repairs 1 24 covered under the automobile comprehensive coverage, property 1 25 damage coverage, or automobile collision coverage of a 1 26 commercial or noncommercial policy of automobile insurance 1 27 issued by the person. For the purposes of the bill, a 1 28 "person" to whom this provision applies includes any 1 29 individual, corporation, association, partnership, fraternal 1 30 beneficiary association, and other legal entity engaged in the 1 31 business of insurance in this state. For the purposes of the 1 32 bill, "financial benefit" means receiving any commission or 1 33 gratuity, discount on repair costs, free repairs, employment 1 34 by a repair facility, or similar benefit. 1 35 A violation of the bill is punishable by a civil penalty of 2 1 not more than $1,000 for each act or violation, but not to 2 2 exceed an aggregate of $10,000, unless the person knew or 2 3 reasonably should have known the person was in violation of 2 4 the bill, in which case the penalty shall not exceed $5,000 2 5 for each act or violation, and not be more than $50,000 in the 2 6 aggregate. A violation of the bill may also result in the 2 7 suspension or revocation of the violator's license. 2 8 LSB 5405YH 80 2 9 av/cf/24
Text: HF2333            Text: HF2335 Complete Bill History