IA HF2259

Prohibits insurers authorized to do business in Iowa from using credit information to underwrite or set rates for motor vehicle financial liability coverage policies.

Expands the definition of "personal insurance" under Iowa Code section 515.103 to include snowmobile and recreational vehicle insurance policies alongside existing categories like private passenger automobile, homeowners, and motorcycle insurance.

Financial liability coverage is defined as an owner's liability insurance policy covering damages arising from ownership, maintenance, or use of an insured motor vehicle within the United States or Canada.

Current Iowa law already restricts insurers from using credit information as the sole factor to deny, cancel, or refuse policy renewal, but this bill creates an outright prohibition on using credit information for motor vehicle liability coverage rating and underwriting.