Bill > HSB698

Introduced Session

This bill enacts former Iowa administrative code provisions relating to standards for settlement of certain motor vehicle insurance claims. The bill requires a property insurer to estimate the cost of repairs for a motor vehicle and pay a claim based only on the cost of aftermarket crash parts available from a distributor of each such part that is located within 100 miles of the repair facility when a first-party, partial-loss claim relating to the motor vehicle is settled based on a written estimate prepared by or for the insurer that includes payment for aftermarket crash parts. The bill requires the insurer to pay the cost of any modifications which may become necessary when repairs are made using aftermarket crash parts or parts salvaged from the crashed vehicle. When a third-party, partial-loss claim relating to a motor vehicle is settled based on a written estimate prepared by or for the insurer, the bill requires the liability insurer to estimate the cost of repairs and pay the claim based only on the cost of new original equipment manufacturer parts unless the owner of the motor vehicle gives express consent to use aftermarket crash parts or parts salvaged from the crashed vehicle and the insurer expressly agrees to pay the cost of any modifications which may become necessary when repairs are made using aftermarket crash parts or parts salvaged from the crashed vehicle, and expressly agrees to defend and indemnify H.F. _____ the owner of the motor vehicle and the repair facility against any claims related to such repairs. A person who violates a provision of the bill is subject to entry of a cease and desist order, may be ordered by the commissioner of insurance to pay a civil penalty ranging from $1,000 to $50,000 under Code section 507B.7, and if the person has a license to operate the person’s business, the license is subject to suspension or revocation.

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No sponsors listed

Other Sponsors (1)

House Transportation Committee (13:00:00 2/17/2026 RM 103) (on 02/17/2026)

Official Document