Iowa Senate Bill SSB3136

Iowa 2023-2024 Regular Session

• Introduced: 1/31/24
• Refer: 1/31/24

Caption

A bill for an act relating to the notice requirement for the renewal or nonrenewal of personal lines policies, and including effective date provisions.(See SF 2359.)

Impact

If enacted, this bill will significantly alter the notification protocol for insurance providers in Iowa. Insurers will be required to deliver, mail, or electronically transmit a written notice to policyholders at least 60 days prior to the expiration date of their current insurance contract. This adjustment could enhance consumer awareness and empower individuals to ensure they have adequate coverage, potentially increasing policyholder satisfaction and trust in the insurance process.

Summary

Senate Study Bill 3136 aims to amend the current notice requirement for the renewal or nonrenewal of personal lines insurance policies in Iowa. The bill proposes increasing the notice period from the current 30 days to 60 days before the end of an insurance policy or contract. This change is intended to give policyholders more advance notice and time to make decisions regarding their insurance coverage, which is seen as a consumer-friendly measure.

Contention

While the bill is generally viewed positively for its protective measures towards consumers, some stakeholders may argue about the implications it might have for insurance companies. Critics could contend that extending the notice period may complicate the renewal process for insurers and could result in increased administrative burdens. The balance of interests between consumer protection and the operational capabilities of insurance providers will likely be a point of discussion among lawmakers and industry representatives.