Iowa Bill Would Prevent Insurers from Requiring Parts be Purchased from Specific Suppliers

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 as follows:

"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.

CLICK HERE for full text of bill.

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