This bill establishes a mandatory waiting period of 72 hours before insurers can settle or attempt to settle motor vehicle insurance claims. It amends Section 507B.4 of the Iowa Code by adding a new subparagraph that specifies failing to adhere to this waiting period as a violation. Additionally, a new section, 507B.10, is introduced, which outlines that an insurer's duty to promptly settle a claim is paused during this waiting period.

Violations of this waiting period can result in significant penalties, including the issuance of a cease and desist order by the commissioner of insurance and civil penalties ranging from $1,000 to $50,000. Furthermore, if the violator holds a business license, that license may be subject to suspension or revocation. This legislation aims to ensure that claims are settled with adequate time for assessment following the incident.

Statutes affected:
Introduced: 507B.4