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IA SF2383
IA SF2383A bill for an act relating to standards for settlement of certain motor vehicle insurance claims.(Formerly SSB 3154.)
summary
Introduced
02/19/2026
02/19/2026
In Committee
02/24/2026
02/24/2026
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
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 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.
AI Summary
This bill establishes new standards for settling motor vehicle insurance claims, particularly concerning the use of aftermarket crash parts, which are parts not made by the original vehicle manufacturer but are designed to fit and function like them. For claims where the owner is directly filing with their own insurer (first-party claims) and the vehicle has a partial loss, the insurer must base the repair cost estimate and payment on the price of aftermarket crash parts from distributors located within 100 miles of the repair shop, and the insurer must cover any extra costs for modifications needed due to using these parts or salvaged parts. However, for claims where a third party is at fault (third-party claims) and the vehicle has a partial loss, the at-fault party's insurer must initially base the repair estimate and payment on new original equipment manufacturer (OEM) parts, which are parts made by the vehicle's original manufacturer, unless the vehicle owner gives explicit written permission to use aftermarket or salvaged parts, and the insurer agrees to cover any necessary modifications and to defend both the owner and the repair shop against any related claims. Violations of these provisions can lead to cease and desist orders, civil penalties of $1,000 to $50,000, and potential suspension or revocation of business licenses.
Committee Categories
Business and Industry
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Transportation (Senate)
Last Action
Subcommittee: Dickey, Bisignano, and Webster. S.J. 411. (on 02/25/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF2383 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF2383.html |
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