Senate Study Bill 1192 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON BOUSSELOT) A BILL FOR An Act relating to motor vehicle glass repair, replacement, 1 and insurance, making penalties applicable, and including 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2746XC (4) 91 th/ns
S.F. _____ Section 1. NEW SECTION . 321B.1 Definitions. 1 As used in this chapter: 2 1. Advanced driver assistance system means any motor 3 vehicle driving automation system that performs part or all 4 of the dynamic driving task, as described by the society of 5 automotive engineers international taxonomy and definitions for 6 terms related to driving automation systems for on-road motor 7 vehicles, under SAE J3016, as revised on April 30, 2021, and 8 that is designed to support the driver and motor vehicle in a 9 manner intended to do all of the following: 10 a. Enhance motor vehicle safety. 11 b. Reduce losses associated with motor vehicle crashes. 12 2. Insurance producer means as defined in section 522B.1, 13 and includes an agent of such producer. 14 3. Insured person means a person that is entitled, or may 15 be entitled, to receive first-party benefits or payments under 16 an insurance policy, and includes an agent of such person. 17 4. Insurer means as defined in section 522B.1, and 18 includes an agent of an insurer. 19 5. Motor vehicle glass means the glass and nonglass 20 parts associated with the replacement of the glass used in the 21 windshield, doors, or windows of a motor vehicle. 22 6. Motor vehicle glass repair shop or shop means any 23 person who repairs or replaces damaged motor vehicle glass for 24 consideration. 25 7. Notice means direct written communication including 26 communication conducted through electronic mail, text message, 27 or other electronic means which is directed to and easily 28 accessible by the consumer. 29 8. Repairing or replacing damaged motor vehicle glass 30 includes all of the following: 31 a. Inspecting, repairing, restoring, or replacing damaged 32 motor vehicle glass. 33 b. Calibrating or recalibrating an advanced driver 34 assistance system if the replacement of damaged motor vehicle 35 -1- LSB 2746XC (4) 91 th/ns 1/ 7
S.F. _____ glass is required. 1 9. Rights or benefits under the policy includes the insured 2 persons right to receive any and all post-loss benefits or 3 payments available or payable under an insurance policy, 4 including but not limited to claim payments. 5 Sec. 2. NEW SECTION . 321B.2 Prohibited post-loss benefit 6 assignment. 7 1. Prior to or after a claimed or covered loss, an insured 8 person shall not assign, delegate, or otherwise transfer, in 9 whole or in part, to any other person any of the following: 10 a. Duties under the policy. 11 b. Rights or benefits under the policy. 12 2. A contract that violates this section is void and 13 unenforceable. 14 3. Nothing in this section shall be construed to prohibit 15 an insured person from authorizing or directing payment to, or 16 paying, a person for services, materials, or any other expense 17 that may be or is covered under an insurance policy. 18 Sec. 3. NEW SECTION . 321B.3 Advanced driver assistance 19 systems. 20 1. Prior to repairing or replacing damaged motor vehicle 21 glass for an insured person, a motor vehicle glass repair shop 22 shall notify the insured person whether the motor vehicle has 23 an advanced driver assistance system. If the motor vehicle 24 has an advanced driver assistance system, the shop shall also 25 notify the insured person of all of the following: 26 a. Whether calibration or recalibration of the motor 27 vehicles advanced driver assistance system is needed after 28 a windshield repair or replacement, in accordance with the 29 vehicle manufacturers recommendations. 30 b. Whether the shop intends to calibrate or recalibrate the 31 advanced driver assistance system in a manner that meets the 32 motor vehicle manufacturers specifications. 33 c. If the shop is not capable of performing, or does not 34 intend to perform, a calibration or recalibration, the shop 35 -2- LSB 2746XC (4) 91 th/ns 2/ 7
S.F. _____ shall advise the insured person to take the motor vehicle 1 to the vehicle manufacturers certified dealership or a 2 qualified specialist capable of performing the calibration or 3 recalibration. 4 2. If calibration or recalibration of the motor vehicles 5 advanced driver assistance system is performed, the shop shall 6 provide notice to the insured person of whether the calibration 7 or recalibration was successful. If the calibration or 8 recalibration was not successful, the shop shall advise 9 the insured person to take the motor vehicle to the vehicle 10 manufacturers certified dealership or a qualified specialist 11 capable of performing the calibration or recalibration. 12 Sec. 4. NEW SECTION . 321B.4 Motor vehicle glass repair 13 claims and practices. 14 1. A motor vehicle glass repair shop shall not contract with 15 a person to repair or replace damaged motor vehicle glass to be 16 paid for under a first-party insurance policy until verifying 17 all of the following: 18 a. The insured person has made a first-party claim for 19 repairing or replacing damaged motor vehicle glass under a 20 motor vehicle insurance policy. 21 b. The shop has received a claim or referral number for the 22 claim referenced under paragraph a . 23 c. The requirements of section 321B.3, subsection 1, were 24 followed. 25 2. A shop shall do all of the following: 26 a. Provide the insured person a good faith estimate of the 27 fees and costs that are anticipated to be charged for repairing 28 or replacing damaged motor vehicle glass. 29 b. Prior to performing any repair or replacement service, 30 provide the insured person an updated estimate. 31 3. After repairing or replacing damaged motor vehicle 32 glass, a shop shall provide the insured person all of the 33 following, as applicable: 34 a. An itemized invoice and, upon payment, a receipt. 35 -3- LSB 2746XC (4) 91 th/ns 3/ 7
S.F. _____ b. Notice that states whether the advanced driver assistance 1 system was successfully calibrated or recalibrated. 2 c. If the calibration or recalibration was not successful, 3 notice advising the insured person to not rely on the advanced 4 driver assistance system until the system has been successfully 5 calibrated or recalibrated by the vehicle manufacturers 6 certified dealership or a qualified specialist capable of 7 performing the calibration or recalibration. 8 Sec. 5. NEW SECTION . 321B.5 Prohibited acts. 9 1. A motor vehicle glass repair shop, and any other person 10 who is compensated for the solicitation of insurance claims, 11 shall not offer a rebate, gift, gift card, cash, coupon, fee, 12 prize, bonus, payment, incentive, inducement, or any other 13 thing of value to any insured person, insurance producer, or 14 other person in exchange for directing or making a claim under 15 a motor vehicle insurance policy for repair or replacement of 16 motor vehicle glass. 17 2. A shop shall not do any of the following: 18 a. Charge unreasonable fees or costs to an insured person 19 for repairing or replacing damaged motor vehicle glass. A fee 20 that exceeds an amount customarily charged for such service is 21 unreasonable. 22 b. Submit false, misleading, or incomplete documentation or 23 information to an insured person or an insurer for repairing or 24 replacing damaged motor vehicle glass. 25 c. Falsely sign a work order or other insurance-related form 26 relating to an insured persons claim, or potential claim, for 27 a repair or replacement of damaged motor vehicle glass. 28 d. Misrepresent the estimated fees and costs for repairing 29 or replacing damaged motor vehicle glass to an insured person 30 or insurer. 31 e. State that an insurer has approved repairing or replacing 32 damaged motor vehicle glass unless the shop does all of the 33 following: 34 (1) Verifies coverage directly with, or obtains approval 35 -4- LSB 2746XC (4) 91 th/ns 4/ 7
S.F. _____ directly from, the insurance producer. 1 (2) Obtains confirmation of the coverage or approval by any 2 form of written or recorded communication. 3 f. State that repairing or replacing damaged motor vehicle 4 glass will be paid for entirely by an insurer and at no cost to 5 the insured person unless such coverage has been verified by 6 the insurer. 7 3. With respect to an insured persons claim, or potential 8 claim, for repairing or replacing damaged motor vehicle glass, 9 a shop shall not do any of the following, which results, or 10 would result, in a higher insurance payment or a change of 11 insurance coverage status: 12 a. Indicate that work was performed in a geographical area 13 that was not the geographical area where the work occurred. 14 b. Advise an insured person to falsify the date of damage. 15 4. With respect to an insured persons claim or potential 16 claim for repairing or replacing damaged motor vehicle glass, a 17 shop shall not do any of the following: 18 a. Damage, or encourage an insured person to damage, the 19 motor vehicle in order to increase the scope of work necessary 20 to repair or replace damaged motor vehicle glass. 21 b. Perform work that is clearly and substantially beyond the 22 level of work necessary to restore the motor vehicle to a safe 23 condition in accordance with accepted or approved reasonable 24 and customary techniques for repairing or replacing damaged 25 motor vehicle glass. 26 c. Misrepresent the shops relationship to an insured person 27 or an insurer. 28 d. Perform any other act that constitutes fraud or 29 misrepresentation. 30 5. Any notice or invoice required under this chapter shall 31 be issued using the same font and size of font as the invoice, 32 estimate, or receipt. 33 Sec. 6. NEW SECTION . 321B.6 Right to choose motor vehicle 34 glass repair shop. 35 -5- LSB 2746XC (4) 91 th/ns 5/ 7
S.F. _____ 1. An insured person that makes a first-party claim for 1 repairing or replacing damaged motor vehicle glass under a 2 motor vehicle insurance policy shall not be required to use a 3 particular motor vehicle glass repair shop to be paid claim 4 payments or receive other benefits under the policy. 5 2. Subsection 1 shall not be construed to do any of the 6 following: 7 a. Prohibit an insurer, insurance producer, insurance 8 adjuster, or any person acting on behalf of an insurer, 9 insurance producer, or insurance adjuster from recommending a 10 shop or providing an explanation to an insured person of the 11 coverage available, and any applicable liability limit, under 12 the persons insurance policy. 13 b. Prohibit an insurer from maintaining a network of motor 14 vehicle glass repair shops. 15 c. Create a private cause of action. 16 Sec. 7. NEW SECTION . 321B.7 Presumption. 17 It may be presumed that a motor vehicle glass repair shop 18 is acting knowingly in violation of section 321B.5 if the shop 19 engages in a regular and consistent pattern of a prohibited 20 activity. 21 Sec. 8. NEW SECTION . 321B.8 Penalty. 22 A person who violates a provision of this chapter commits an 23 unfair trade practice under chapter 507B. 24 Sec. 9. Section 507B.3, Code 2025, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 01. A person who violates a provision in 27 chapter 321B shall be deemed to have committed an unfair trade 28 practice under this chapter. 29 Sec. 10. APPLICABILITY. This Act applies to insurance 30 policies issued or renewed on or after the effective date of 31 this Act. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanations substance by the members of the general assembly. 35 -6- LSB 2746XC (4) 91 th/ns 6/ 7
S.F. _____ This bill relates to motor vehicle glass repair, 1 replacement, and insurance. 2 The bill regulates the post-loss assignment of benefits, 3 calibration of advanced driver assistance systems, and motor 4 vehicle glass repair claims and practices, prohibits certain 5 related acts, provides a right for an insured person to choose 6 a motor vehicle glass repair shop, establishes presumptions 7 if repair shops engage in regular and consistent patterns of 8 prohibited activity, and makes penalties applicable. 9 The bill includes requirements for motor vehicle glass 10 repair shops to notify insured persons about glass on vehicles 11 with advanced driver assistance systems, including vehicle 12 driving automation systems that perform part or all of the 13 dynamic driving task on a sustained basis to enhance motor 14 vehicle safety and reduce losses associated with motor vehicle 15 crashes. By reference, the bill incorporates six levels of 16 driving automation, ranging from no driving automation (level 17 0) to full driving automation (level 5), as described in the 18 most recent version of the society of automotive engineers 19 international levels of driving automation bulletin. 20 A person who violates a provision of the bill is subject 21 to entry of a cease and desist order, may be ordered by the 22 commissioner of insurance to pay a civil penalty ranging from 23 $1,000 to $50,000 under Code section 507B.7, and if the person 24 has a license to operate the persons business, the license is 25 subject to suspension or revocation. 26 -7- LSB 2746XC (4) 91 th/ns 7/ 7