Iowa Legislative Network Bulletin
January 31,
2008 - SPECIAL ALERT!
On
Tuesday, January 29 Senate Study Bill (SSB)
3108 hit the desks of all Senators. This bill addresses the concerns with insurance
companies having a preferred vendor list when it comes to the repair of their
insureds’ property on a claim. National Federation of Independent Businesses (NFIB),
upon the urging by one of NLA’s members, spearheaded the drafting of this bill.
Having NFIB introduce the bill makes it less self-serving for our membership.
The
bill is a study bill by Senate Commerce Chairman Steve Warnstadt of Sioux City. He
assigned the following Senators to the sub-committee:
SSB 3108 Sub-committee
Chair, Tom Courtney (Democrat from Burlington)
Brian Schoenjahn (Democrat from Arlington – Fayette County)
Steve
Kettering (Republican from Lake View – Sac County)
The
first step to moving a bill is the subcommittee process. We need 2 votes to move this bill. We are looking
for lumberyards from Burlington, Fayette County and Sac County. We need them to call their
Senators today and urge passage of the bill.
Secondly,
it’s customary to have a sub-committee hearing where lobbyists and affected parties
can testify to the problems this bill seeks to correct. Chairman Tom Courtney will notify
our lobbyists when the sub-committee meets. We need people to “tell the story”
of the unfair practices that exist in your industry. Please let me know if can come to the
Capitol and testify when necessary.
Anyone
can call the switchboard and ask for a Senator. Most likely, you will be asked to leave a
message so, leave your name, business name, and phone number and your message is “yes
on SSB 3108”.
Iowa Senate Switchboard: 515-281-3371
PLEASE
CALL ME OR CRAIG SCHOENFELD IF YOU CALLED YOUR SENATOR. WE’D LIKE TO TRACK WHO HAS
BEEN CONTACTED AND THEIR RESPONSE.
Craig
Schoenfeld: 515-371-8921
Paula
Siewert: 800-469-9078
Senate Study Bill 3108
SENATE FILE
BY (PROPOSED COMMITTEE ON
COMMERCE BILL BY
CHAIRPERSON WARNSTADT)
Passed Senate, Date Passed
House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
2 parts and supplies from specified
sellers and providing
3 penalties.
4
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5
TLSB 5857XC 82
6
av/sc/14
PAG LIN
1 1 Section
1. Section 507B.4, Code Supplement 2007, is
1 2 amended by adding the following new subsection:
1 3 NEW
SUBSECTION. 9A. UNFAIR REPAIR PRACTICES. Requiring a
1 4 repair business that performs repairs, on behalf
of an
1 5 insurer, to the property of an insured or
beneficiary to buy
1 6 supplies and parts from a seller or list of
sellers specified
1 7 by the insurer.
An insured, beneficiary, or repair business
1 8 may submit a written, documented complaint to the
commissioner
1 9 alleging a violation of this subsection.
1
10
EXPLANATION
1
11 This bill prohibits an insurer
from requiring repair
1
12 businesses that perform repairs, on behalf of the insurer, to
1
13 the property of an insured or beneficiary to buy supplies and
1
14 parts from a seller or list of sellers specified by the
1
15 insurer.
1
16 The bill defines such practices
of insurers or their agents
1
17 as prohibited unfair methods of competition and unfair or
1
18 deceptive acts or practices in the business of insurance.
An
1
19 insured, beneficiary, or repair business may submit a written,
1
20 documented complaint to the commissioner of insurance alleging
1
21 a violation of the bill's provisions.
1
22 Pursuant to Code section
507B.7, a violation of the bill is
1
23 punishable by a civil penalty assessed by the commissioner of
1
24 insurance of not more than $1,000 for each act or violation,
1
25 but not to exceed an aggregate of $10,000, unless the person
1
26 knew or reasonably should have known the person was in
1
27 violation of the bill, in which case the penalty shall not
1
28 exceed $5,000 for each act or violation, and not be more than
1
29 $50,000 in the aggregate. A violation of
the bill may also
1
30 result in the suspension or revocation of the violator's
1
31 license.
1
32 LSB 5857XC 82
1 33 av/sc/14