Bill Would Prevent Insurers from Requiring Parts be Purchased from
The Iowa Senate currently is reviewing legislation that would bar
insurers from requiring repair businesses to purchase parts and
supplies from specified sellers. Senate File 2326 would add a subsection
to the state's current insurance code. The proposed addition reads
"UNFAIR REPAIR PRACTICES. Requiring a repair business that
performs repairs, on behalf of an insurer, to the property of
an insured or beneficiary to buy supplies and parts from a seller
or list of sellers specified by the insurer."
If passed, insurers in violation of the bill would be subject to
a fine assessed by the commissioner and possible suspension or revocation
of the insurer's license.
The bill was introduced by Sen. Steve Warnstadt and approved by
the Senate's commerce committee on March 5 and was placed on the
full Senate's calendar.
HERE for full text of bill.
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