IA SSB3154

For first-party partial-loss motor vehicle claims using aftermarket crash parts, property insurers must base repair estimates only on parts available from distributors located within 100 miles of the insured's designated repair facility.

For third-party partial-loss claims, liability insurers must pay based on new original equipment manufacturer (OEM) parts unless the vehicle owner provides written consent to use aftermarket or salvaged parts.

When aftermarket or salvaged parts are used, insurers must pay for any modifications that become necessary during repairs and must agree to defend and indemnify the vehicle owner and repair facility against related claims.

Violations are subject to cease and desist orders, civil penalties ranging from $1,000 to $50,000, and potential suspension or revocation of business licenses.

The bill codifies former Iowa administrative code provisions into statute under Section 507B.10 of the Iowa Code.