IA SF2196

Insurers are prohibited from settling or attempting to settle a motor vehicle insurance claim during the first 72 hours after the event giving rise to the claim.

The insurer's existing duty to promptly settle a claim is tolled (paused) during the mandatory 72-hour waiting period.

The bill amends Iowa Code section 507B.4 and creates new section 507B.10 to establish and enforce the waiting period requirement.

Violations may result in a cease and desist order, civil penalties ranging from $1,000 to $50,000 imposed by the Commissioner of Insurance, and potential suspension or revocation of the violator's business license.

Introduced by Senator Webster in the Iowa Senate as SF 2196.