The bill amends Iowa's insurance laws to strengthen the rights of insured individuals concerning information requests and claims processing. It introduces a new section, 507B.4D, which requires insurers to provide specific information, such as copies of insurance policies and claim applications, within fifteen calendar days of a request. If an insurer refuses to provide information citing privilege, they must offer a written explanation, and a later determination of non-privilege will classify the refusal as an unfair practice. The bill also sets clear guidelines for loss calculations and claims payments, mandating that insurers acknowledge claims within fifteen business days and provide a written acceptance or denial within thirty calendar days of receiving a completed proof of loss form.

Additionally, the legislation establishes new regulations for property insurance policies, focusing on claims processing, policy cancellations, and the use of aerial images in underwriting. Insurers must acknowledge claims within 15 days and pay accepted claims within 10 days. The bill prohibits clauses that prevent insured individuals from hiring public adjusters and requires insurers to provide detailed notices regarding policy cancellations based on aerial images, including full-resolution images and a clear appeals process. Insurers must allow a minimum of 60 days for remediation or appeals following a nonrenewal notice and 30 days for cancellation notices, aiming to enhance transparency and fairness in the insurance process while safeguarding the rights of insured individuals.

Statutes affected:
Introduced: 507B.4