QuickServe State Laws
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QuickServe State Laws |
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Definitions:
More>> click here for more information on a section.
Updates>> click here for possible future updates of that section; current
text is shown in full.
We put Unfair Claims Practices, Unfair Trade Practices and the regulation for
3rd Parties on top, and organized all other laws alphabetically to make it
easier for you to find a particular law or regulation. To get to a particular
topic on this page you can either click on it in the table of contents or scroll
down. To get back to the table of contents simply click on the link that says
back to top on beneath each section.
9. Unfair claim settlement practices. Committing or performing with
such frequency as to indicate a general business practice any of the following:
a. Misrepresenting pertinent facts or insurance policy provisions
relating to coverages of issue.
b. Failing to acknowledge and act reasonably promptly upon
communications with respect to claims arising under insurance policies.
c. Failing to adopt and implement reasonable standards for the prompt
investigation of claims arising under insurance policies.
d. Refusing to pay claims without conducting a reasonable investigation
based upon all available information.
e. Failing to affirm or deny coverage of claims within a reasonable time
after proof of loss statements have been completed.
More>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/507B/4.html
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The following are hereby defined as unfair methods of competition and unfair or
deceptive acts or practices in the business of insurance:
1. Misrepresentations and false advertising of insurance policies. Making,
issuing, circulating, or causing to be made, issued or circulated, any estimate,
illustration, circular, statement, sales presentation, omission, or comparison
which does any of the following:
a. Misrepresents the benefits, advantages, conditions, or terms of any
insurance policy.
b. Misrepresents the dividends or share of the surplus to be received on
any insurance policy.
More>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/507B/4.html
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We have not found any law yet.
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The Insurance Department sent out a memo in November of
1991 regarding the use of preferred vendors, however nothing regarding the
provisions mentioned in the memo can be found in the statutes or in the
Insurance Department's bulletins online.
David Lyons, the commissioner at the time, wrote:
"It has come to my attention that insurance companies doing business in Iowa may
be utilizing a preferred vendor system for the repair or replacement of
automobile glass. Basically this system requires the insured to have the glass
repaired or replaced at a specific vendor at the direction of the insurance
company. The consumer is not given a choice of where to have the vehicle
repaired.
"An insured, on a first-party claim is entitled to have the glass repaired or
replaced at the facility of their choice for the amount of the lowest bid,
provided that the contract of insurance does not specify that the repair or
replacement must be undertaken by a specific vendor. In a third-party situation,
the insurance company would not be able to dictate the repair facility but then,
of course, all issues would be negotiable through the claims settlement process.
"In the event that an insurance company does require glass repair and
replacement to be undertaken by a specific vendor under the terms of the policy,
the insurance company must warranty the work of the vendor to the consumer.
"While the commission has become aware of this practice occurring in Iowa, it
does not appear that any insurance companies have made appropriate filings or
have adjusted their rates for this cost-containment measure. In the event your
company is engaged in this practice it would be prudent to contact the Insurance
Division immediately regarding your rate and form filings. If this type of
provision is added to a policy the consumer must be specifically notified at
renewal that there is a change in the terms of their policy.
"Absent a contract provision contemplating a preferred vendor, an insurance
company would be within its rights to only pay the amount of the low estimate.
The insurance company, however, cannot decline to pay the claim at all in the
event the insured wishes to deal with another glass vendor. Under the standard
auto policy the company is obligated to repair or replace -- there is no
authority under the contract that dictates WHERE the consumer must have the work
completed."
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According to data the Society of Collision Repair Specialists collected between 1995 and 1999, caps in Iowa are illegal. In other words, insurers cannot put a limit on what they will pay for a product, procedure or repair, particularly paint and materials. We published a story on caps, including a table with the data collected by SCRS, in our February 2000 issue.
Generic Caps Letter -- Prepared by Beyond Parts & Equipment
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______________ Insurance Insured: ______________________ Claim #: ______________________ Vehicle ID: Attn: Customer Service In your repair appraisal of my vehicle, you limited paint/paint materials payment and/or related costs, such as refinish labor, to $___, while my cost is $___, or $___ more than you allow. Your policy with me promises to restore my car to preloss condition at no cost other than the deductible my policy specifies. If I have to pay more than you allow for paint/materials and other costs, I will have to pay my deductible plus $___ before my car will be returned to me. Please tell me exactly where my policy says you may limit payments for paint/materials and other costs. If you can't, please authorize the full cost, $___, for all expenses. If you don't authorize full pay and you can't show me where my policy says you may restrict payment, I shall report this incident to [State] Department of Insurance, stating that ____________ Insurance isn't honoring its promise to restore my vehicle to preloss condition at no cost other than the deductible as called for in the policy. I look forward to your prompt response; I'd like my vehicle repaired as quickly as possible. Sincerely, cc: Insurance Commissioner |
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[Many collision and glass repair/replacement shops think those regulations apply only to mechanical shops, but in most cases they apply to collision and glass shops. BP&E has stories on this in the September 1996 issue, pages 1,4-6.]
537B.3 Required trade practices.
Subsection 1. If a consumer authorizes, in writing, repairs or service
upon a motor vehicle prior to the commencement of the repairs or service, a
conspicuous disclosure in substantially the following language shall appear on
the authorization form or on a separate form provided to the consumer at the
time of the authorization.
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ESTIMATE YOU HAVE THE RIGHT TO A WRITTEN OR ORAL ESTIMATE IF THE EXPECTED COST OF REPAIRS OR SERVICE WILL BE MORE THAN FIFTY DOLLARS. YOUR BILL WILL NOT BE HIGHER THAN THE ESTIMATE BY MORE THAN TEN PERCENT UNLESS YOU APPROVE A HIGHER AMOUNT BEFORE REPAIRS ARE FINISHED. INITIAL YOUR CHOICE: . . . . . . . . Written estimate. . . . . . . . . Oral estimate. . . . . . . . . No estimate. . . . . . . . . Call me if repairs and service will be more than $. . . . . . . |
2. The form described in subsection 1, shall at minimum contain the following
information:
a. The date; b. The supplier's name; c. The consumer's
name and telephone number; d. The reasonably anticipated completion
date.
If a written estimate is requested, the supplier may write the written estimate
on the authorization form or on another form. If the nature of repairs or
service is unknown at the time that the estimate is given, the supplier may
state an hourly labor charge for the work. If the consumer so requests, a copy
of the written estimate shall be provided to the consumer prior to the
commencement of any repairs or service.
3. If a consumer orally authorizes repairs or service upon a motor vehicle
prior to the commencement of the repairs or service, the supplier shall inform
the consumer of the right to receive a written or oral estimate. The supplier
shall note the consumer's response on the form described in subsections 1 and 2.
If the consumer requests an estimate, the supplier shall provide the estimate to
the consumer prior to commencing the repairs or service.
Updates>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/537B/3.html
537B.6 Deceptive act or practice.
It is a deceptive act or practice for a supplier to:
1. Fail to comply with the requirements of section 537B.3.
2. Make the performance of any repair or service contingent upon a consumer's
waiver of any rights provided for in this chapter.
3. Fail to obtain oral or written authorization from the consumer for the
anticipated cost of any additional, unforeseen, but necessary repairs or
services when the cost of those repairs or services amount to more than ten
percent, excluding tax, of the original estimate requested by a consumer.
4. Fail, if the anticipated cost of a repair or service is less than fifty
dollars and an estimate has not been given to the consumer, to obtain oral or
written authorization from the consumer for the anticipated cost of any
additional unforeseen, but necessary repairs or services if the total cost of
the repairs or services, if performed, will exceed fifty dollars.
5. Fail to disclose prior to the commencement of any repairs or service, that a
charge will be made for disassembly, reassembly, partially completed work, or
any other work not directly related to the actual performance of the repairs or
service. A charge so imposed must be directly related to the actual amount of
labor or parts involved in the inspection, repair, or service.
6. Charge for any repair or service which has not been authorized by the
consumer.
7. Fail to disclose upon the first contact with the consumer that any charge
not directly related to the actual performance of the repair or service will be
imposed by the supplier whether or not repairs or services are performed.
8. Fail to disclose upon the first contact with a consumer the basis upon which
a charge will be imposed for towing the motor vehicle if that service will be
performed.
9. Represent that repairs or services are necessary when that is not the fact.
10. Represent that repairs have been made or services have been performed when
that is not the fact.
11. Represent that a motor vehicle or any part of a motor vehicle which is
being inspected or diagnosed for a repair or service is in a dangerous
condition, or that the consumer's continued use of it may be harmful when that
is not the fact.
12. Materially and intentionally understate or misstate the estimated cost of
the repairs or service.
13. Fail to provide the consumer with an itemized list of repairs performed or
services rendered, including a list of parts or materials and a statement of
whether they are used, remanufactured or rebuilt, if not new, and their cost to
the consumer, the amount charged for labor, and the identity of the individual
performing the repair or service.
14. Fail to tender to the consumer any replaced parts, unless the parts are to
be rebuilt or sold by the supplier, or returned to the manufacturer in
connection with warranted repairs or services, and such intended reuse or return
is made known to the consumer prior to commencing any repair or service.
However, this subsection does not prohibit the supplier from retaining the
replaced parts if the consumer so requests.
15. Fail to provide to the consumer upon the consumer's request a written,
itemized receipt for any motor vehicle or part of a motor vehicle that is left
with, or turned over to, the supplier for repair or service. The receipt shall
include:
a. The identity of the supplier which will perform the repair or service.
b. The name and signature of the supplier or a representative who
actually accepts the motor vehicle or any part of the motor vehicle.
c. A description including make and model number or other features as
will reasonably identify the motor vehicle or any part of the motor vehicle to
be repaired or serviced.
d. The date on which the motor vehicle or any part of the motor vehicle
was left with or turned over to the supplier.
16. Fail to disclose to the consumer prior to the commencement of any repair or
service, that any part of the repair or service will be performed by a person
other than the supplier or the supplier's employees, if the consumer requests
that information.
Updates>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/537B/6.html
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554.2502 Buyer's right to goods on seller's repudiation, failure to deliver, or insolvency.
More>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/554/2502.html
554.2511 Tender of payment by buyer--payment by check.
1. Unless otherwise agreed tender of payment is a condition to the
seller's duty to tender and complete any delivery.
More>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/554/2511.html
Look for updates to chapter 507B5 that include the July 18, 2002 provisions. Currently Iowa only has the old version available online.
Current link: http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/507B/5.html
BULLETIN 97-5
To: All insurers authorized to do
the business of insurance in Iowa, All banks and credit unions doing business in
Iowa; All Iowa-licensed insurance producers
From: Therese M. Vaughan, Commissioner of Insurance
Re: Sales Practices and Advertising Trends
Date: October 1, 1997
Over the past twelve months, the Iowa Insurance Division has observed that many
persons and business entities are testing the limits of acceptable sales and
advertising practices. The purpose of this bulletin is to remind insurance
marketers of their responsibilities under Iowa insurance laws and regulations.
Although we are providing general guidelines here, each situation provides
specific circumstances which may affect how Iowa law is applied.
A. New regulations.
First, let us remind you of two new sets of regulation regarding insurance
marketing:
1. In January 1997, thoroughly revised insurance regulations governing
advertising, sales practices and unfair trade practices were adopted; i.e. Iowa
Administrative Code Chapter 191-15. These regulations give specific guidance as
to acceptable advertising and marketing practices.
You may review these [new] sets of regulations at your local law library, or you
may wish to contact your insurance company’s legal department. You can obtain a
copy from the Iowa Insurance Division by sending us a written request along with
a $10.00 handling fee (for each set)...
G. Policyholder Endorsements.
Producers who wish to use letters of recommendation from current policyholders
should be aware that Iowa Administrative Code section 191-15 contains guidelines
on this sales practice. Endorsement letters must be genuine and contain the
current views of the writer. Such letters should not be used without the consent
of the writer.
H. Rebates and Gifts.
The Division receives many inquiries about the effects of the Iowa law that
prohibits rebates. Under Iowa law, it is an unfair trade practice to offer a
prospective purchaser of a life, annuity, accident and health, or personal lines
insurance policy a reduction in premium or any other item of value as an
inducement to purchase the insurance unless the reduction of value is contained
in the insurance contract. Iowa Code § 507B.4(8)(1997). There is no set dollar
amount for how much "value" an item or offer must have to constitute a rebate,
but -- generally -- it has to be something which would serve as an inducement to
choose one policy over another similar policy, or would induce a person to come
to a solicitation.
Notwithstanding the general rule above, producers and insurers may give gifts to
policyholders or prospective policyholders if the gift is not contingent on the
purchase of insurance. Generally, producers and insurers that give the same gift
to all customers, regardless of whether they purchase or renew a product, will
not be in violation of Iowa law.
I. Producer fees.
Producers may not charge fees in addition to commissions for services that are
customarily associated with the solicitation of policies or with regular policy
service. IAC § 191-15.8(3)(b). Producers may charge fees for other services as
long as all fees are fully disclosed. Id.
J. Coercion of Debtors:
The Division has seen an increase in insurance sales promotions that refer to an
affiliation with a particular financial institution. Such a statement, by
itself, does not violate Iowa law since a financial institution is permitted to
sell insurance products through its licensed producers. However; Iowa Code
section 507B.5 specifically prohibits the following practices:
1. Tying the extension of credit to the purchase of insurance from a particular
insurer or producer;
2. Requiring any borrower to pay additional fees or charges in connection with
the handling of any insurance policy required as security for a loan; and
3. Using or disclosing information obtained from a requirement that a borrower
furnish insurance when the use of that information is to the advantage of the
lender or to the disadvantage of the borrower or the producer that provided the
information.
Generally, financial institutions and insurance producers should not share
information about a customer without the customer’s permission.
Any questions regarding this Bulletin should be directed in writing to the
assistant insurance commissioner.
October 7, 1997.
More>>
http://www.iid.state.ia.us/division/bulletins/docs/97-05.htm
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We have not found a law yet.
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The following are hereby defined as unfair methods of competition and unfair or
deceptive acts or practices in the business of insurance:
2. False information and advertising generally. Making, publishing,
disseminating, circulating or placing before the public, or causing, directly or
indirectly, to be made, published, disseminated, circulated, or placed before
the public in a newspaper, magazine or other publication, or in the form of a
notice, circular, pamphlet, letter or poster, or over any radio or television
station, or in any other way, an advertisement, announcement or statement
containing any assertion, representation, or statement with respect to the
business of insurance or with respect to any person in the conduct of the
person's insurance business, which is untrue, deceptive or misleading.
Updates>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/507B/4.html
1. Misrepresentations, false advertising, and unfair practices.
a. Unless licensed as an insurance company, a motor vehicle service
contract provider shall not use in its name, contracts, or literature, the words
"insurance", "casualty", "surety", "mutual", or any
other words descriptive of the insurance, casualty, or surety business or
deceptively similar to the name or description of any insurance or surety
corporation, or any other motor vehicle service contract provider.
More>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/516E/10.html
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a. Unless licensed as an insurance company, a motor vehicle service contract provider shall not use in its name, contracts, or literature, the words "insurance", "casualty", "surety", "mutual", or any other words descriptive of the insurance, casualty, or surety business or deceptively similar to the name or description of any insurance or surety corporation, or any other motor vehicle service contract provider.
Updates>>
http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/516E/10.html
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555A.1 Definitions.
As used in this chapter, unless the context otherwise requires:
1. "Business day" means any calendar day except Saturday, Sunday, or
public holiday, including holidays observed on Mondays.
2. "Consumer goods or services" means goods or services purchased,
leased, or rented primarily for personal, family, or household purposes,
including courses of instruction or training regardless of the purpose for which
they are taken.
3. a. "Door-to-door sale" means a sale, lease, or rental of consumer
goods or services with a purchase price of twenty-five dollars or more, whether
under single or multiple contracts, in which the seller or the seller's
representative personally solicits the sale, including those in response to or
following an invitation by the buyer, and the buyer's agreement or offer to
purchase is made at a place other than the place of business of the seller.
Door-to-door sale does not include a transaction:
(1) Made pursuant to prior negotiations in the course of a visit by the buyer
to a retail business establishment having a fixed permanent location where the
goods are exhibited or the services are offered for sale on a continuing basis.
(2) In which the consumer is accorded the right of rescission by the provisions
of the Consumer Credit Protection Act, 15 U.S.C. § 1635, or rules issued
pursuant to this chapter.
(3) In which the buyer has initiated the contact and the goods or services are
needed to meet a bona fide immediate personal emergency of the buyer, and the
buyer furnishes the seller with a separate dated and signed personal statement
in the buyer's handwriting describing the situation requiring immediate remedy
and expressly acknowledging and waiving the right to cancel the sale within
three business days.
(4) Conducted and consummated entirely by mail or telephone, and without any
other contact between the buyer and the seller or its representative prior to
delivery of the goods or performance of the services.
(5) In which the buyer has initiated the contact and specifically requested the
seller to visit the buyer's home for the purpose of repairing or performing
maintenance upon the buyer's personal property. If in the course of such a
visit, the seller sells the buyer the right to receive additional services or
goods other than replacement parts necessarily used in performing the
maintenance or in making the repairs, the sale of those additional goods or
services would not fall within this exclusion. ...
More>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/555A/1.html
555A.3 Cancellation.
Every seller shall furnish each buyer, at the time the buyer signs the
door-to-door sales contract or otherwise agrees to buy consumer goods or
services from the seller, a completed form in duplicate, captioned "Notice of
Cancellation", which shall be attached to the contract or receipt and easily
detachable, and which shall contain in ten point boldface type the following
information and statements in the same language as that used in the contract:
...
[The notice of cancellation is at :]
More>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/555A/3.html
555A.4 Duties of seller.
A seller shall: ...
4. Not misrepresent in any manner the buyer's right to cancel.
More>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/555A/4.html
555A.5 Effect on indebtedness.
Rescission of any contract pursuant to this chapter or the failure to
provide a copy of the contract to the buyer as required by this chapter shall
void any contract, note, instrument, or other evidence of indebtedness executed
or entered into in connection with the contract and shall constitute a complete
defense in any action based on the contract, note, instrument or other evidence
of indebtedness brought by the seller, the seller's successors or assigns unless
a successor or assignee of the seller after the seventh business day following
the day the contract was signed has detrimentally relied upon a representation
of the buyer that the contract has not been rescinded. This section shall not
affect the rights of holders in due course of checks made by the buyer.
Update>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/555A/5.html
555A.6 Penalties.
1. Any seller who violates the provisions of this chapter shall be
guilty of a simple misdemeanor.
2. A violation of this chapter is a violation of section 714.16, subsection 2,
paragraph "a".
Update>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/555A/6.html
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6. A motor vehicle service contract provider shall not repair a motor vehicle
covered by a motor vehicle service contract with any of the following:
a. Used parts, unless the provider receives prior written authorization
by the vehicle owner.
b. Rebuilt parts, unless the parts are rebuilt according to national
standards recognized by the insurance division.
Updates>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/516E/10.html
537B.4 Aftermarket parts.
1. As used in this section:
a. "Aftermarket crash part" means a replacement for any of the
nonmechanical sheet metal or plastic parts which generally constitute the
exterior of a motor vehicle, including inner and outer panels, which replacement
is not manufactured or marketed by the original equipment manufacturer of the
motor vehicle. Aftermarket crash part does not include replacement glass for the
windows, windshield, or backlight of the motor vehicle.
b. "Motor vehicle" means a motor vehicle as defined in section 321.1
which is subject to registration.
c. "Repair facility" means a motor vehicle dealer, garage, body shop, or
other person, which undertakes the repair or replacement of those parts of a
motor vehicle that generally constitute the exterior of a motor vehicle for a
fee.
2. A repair facility shall not use aftermarket crash parts in the repair of a
customer's motor vehicle without disclosing the proposed use of such parts in
the estimate of repairs given to the customer prior to the repair of the motor
vehicle. The estimate shall be in writing and shall clearly identify each part
proposed to be used which is an aftermarket crash part. The following
information shall appear in ten point type, or larger, on or attached to the
estimate:
"This estimate has been prepared based on the use of aftermarket crash parts
supplied by a source other than the manufacturer of your motor vehicle. Any
warranties applicable to these replacement parts are provided by the
manufacturer or distributor of these parts rather than the manufacturer of your
vehicle."
3. An aftermarket crash part supplied for use in this state after January 1,
1991, shall have affixed or inscribed upon the part the logo or name of its
manufacturer. A repair facility installing an aftermarket crash part on a motor
vehicle shall install the part so that the manufacturer's logo or name is
visible upon inspection after installation whenever practicable.
4. It is a deceptive act or practice for a repair facility or manufacturer or
distributor of aftermarket crash parts to fail to comply with the requirements
of this section.
Updates>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/537B/4.html
| ____________________ Insured:
Iowa:
Customer Letter
____________________ Claim: ____________________ Vehicle ID: Attn: Customer Service Date of Loss: In your repair appraisal of my vehicle (listed above), you designated used salvage or new imitation replacement crash parts not manufactured by or for my vehicle’s manufacturer. Iowa Motor Vehicle Trade Practices 537B.4, Aftermarket Parts, Section 3, requires that "an aftermarket crash part supplied for use in this state after January 1, 1991, shall have affixed or inscribed upon the part the logo or name of the manufacturer. A repair facility installing an aftermarket crash part on a motor vehicle shall install the part so that the manufacturer’s logo or name is visible upon inspection after installation whenever practicable." I support this requirement of Iowa law. Few parts meet this requirement. If you find any, I will require written proof that they match my original vehicle manufacturer’s replacement parts in fit, quality, and performance. Regarding performance, to protect my safety and my family’s, I request data verifying that these parts have been proxy crash tested and perform identically to the original parts that were on my vehicle. For used salvage parts I shall require like kind and quality to parts on my vehicle as determined by a written description of the trade name, manufacturer’s name, type, engine serial number and vehicle identification number, year, color, number of miles the donor vehicle had traveled at the time it was declared salvage, and the type of accident or event that caused the vehicle to be declared salvage. In either case I also request a written guarantee that my vehicle’s resale/trade-in value will remain consistent with that of other vehicles of similar condition (before the accident) and mileage, and that all my existing vehicle warranties will remain intact. In this guarantee, please specify that if I suffer any economic loss due to the parts you require, your company will reimburse me for that loss. If I’m unhappy with your reply, I will ask that you designate only new original equipment parts to repair my vehicle. If you’re not willing to do so, I will report to the Iowa Department of Insurance that you are violating policy promises to restore my vehicle to its preloss condition and value; the parts on my vehicle before the accident were proxy tested following NHTSA requirements. Independent research on GM cars and Volvos has proven that imitation parts lower resale value and don’t perform properly in crash tests. Used salvage parts aren’t sufficient to maintain my vehicle’s manufacturer warranties, and they aren’t crash tested. Finally, court cases involving imitation parts have consistently been decided against imitation parts. In October 1999, State Farm was penalized $1.2 billion by an Illinois court for defrauding consumers in its use of imitation parts, and Country Companies settled a similar class action lawsuit out of court in February 2001 for $6.3 million. Please respond promptly to my request because I want my vehicle repaired in the most expedient manner possible. Sincerely,
cc: Insurance Commissioner |
You can find out the name of Georgia's Insurance Commissioner by clicking on the link for State Departments of Insurance and then select your state from the list.
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Iowa does not require adjusters to be licensed. However, agents have to have a license.
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Bill Text
Section 1. NEW SECTION. 476B.1 TELEPHONE SOLICITATION
RESTRICTIONS – DISCLOSURES.
1. As used in this section, unless the context otherwise requires:
a. "Board" means the utilities board created in section 474.1.
b. "Telephone solicitation" means a solicitation made by a person
using a telephone, videoconferencing, or other interactive electronic voice
communication, for the purpose of selling consumer goods or services to a
consumer who is the recipient of such solicitation.
c. "Telephone transaction" means either of the following:
(1) A telephone solicitation.
(2) A purchase contract or other agreement or dealing that results
from a telephone solicitation.
2. A person who engages in a telephone solicitation, before asking
any questions of or making any statements other than an initial greeting to a
consumer, shall disclose all of the following:
a. The name of the individual making the telephone solicitation.
b. A statement that the telephone solicitation is for the purpose
of offering or promoting the sale of consumer goods or services.
c. The name of the principal seller of the consumer goods or
services.
d. The nature of the goods or services which are being offered or
promoted.
3. A person, in a telephone transaction, shall also disclose to a
consumer before such consumer enters into any purchase contract or other
agreement or dealing, and before the person requests a credit card number or
accepts any payment from the consumer, all of the following:
a. The nature and quantity of the consumer goods or services
included.
b. The total cost to the consumer to purchase such goods or
services.
c. All material terms and conditions affecting the sale, receipt,
or use of the consumer goods or services, including credit terms, if any.
d. The name of the principal seller.
e. At least one of the following:
(1) The mailing address of the principal seller.
(2) A local or toll-free telephone number, answered during regular
business hours, at which the consumer may contact the principal seller and
obtain the principal seller's address.
f. The seller's policy regarding a refund, cancellation, exchange,
or repurchase, if either of the following apply:
(1) The seller has a policy that prevents or substantially limits
refunds, cancellations, exchanges, or repurchases.
(2) The seller makes a claim or representation regarding refunds,
cancellations, exchanges, or repurchases.
4. A disclosure required under subsection 3 shall be made in
writing, except that such disclosure may be made orally if either of the
following apply:
a. The seller confirms the disclosures in writing at or before the
time the seller first delivers the consumer goods or services to the consumer,
and before the seller submits any credit card request for payment or takes any
other payment from the consumer.
b. The seller does both of the following in writing at or before
the time the seller first delivers consumer goods or services to the consumer:
(1) Confirms the oral disclosures.
(2) Discloses that the consumer may cancel the sale after the first
delivery of any consumer goods or services and obtain a full refund. The
seller may specify a cancellation deadline, provided that the deadline is no
less than seven days after the date of the first delivery.
5. The board shall investigate any complaints received concerning a
violation of this section. If, after investigating a complaint, the board
finds that there has been a violation of this section, the board may bring an
action against the person engaging in the telephone solicitation or the
principal seller, as appropriate, to impose a civil penalty not to exceed ten
thousand dollars per violation, and to seek other relief, including injunctive
relief, as the court deems appropriate.
6. The board shall adopt rules to implement this section.
EXPLANATION
This bill imposes certain disclosure requirements on persons who engage in
telephone solicitations for the sale of consumer goods and services. The bill
provides that a person who engages in a telephone solicitation, before asking
any questions of or making any statements other than an initial greeting to a
consumer, must disclose the name of the individual making the telephone
solicitation, a statement that the telephone solicitation is for the purpose of
offering or promoting the sale of consumer goods or services, the name of the
principal seller of the consumer goods or services, and the nature of the goods
or services which are being offered or promoted. The bill provides that a
person, in a telephone transaction, must also disclose to a consumer before such
consumer enters into any purchase contract or other agreement or dealing, and
before the person requests a credit card number or accepts any payment from the
consumer, the nature and quantity of the consumer goods or services included;
the total cost to the consumer to purchase such goods or services; all material
terms and conditions affecting the sale, receipt, or use of the consumer goods
or services, including credit terms, if any; the name of the principal seller;
the mailing address of the principal seller or a local or toll-free telephone
number, answered during regular business hours, at which the consumer may
contact the principal seller and obtain the principal seller's address; and the
seller's policy regarding a refund, cancellation, exchange, or repurchase, if
the seller has a policy that prevents or substantially limits refunds,
cancellations, exchanges, or repurchases, or the seller makes a claim or
representation regarding refunds, cancellations, exchanges, or repurchases.
The bill also provides that the utilities board is to investigate any complaints
received concerning a violation of this section. If, after investigating a
complaint, the board finds that there has been a violation of this section, the
board may bring an action against the person engaging in the telephone
solicitation or the principal seller, as appropriate, to impose a civil penalty
not to exceed $10,000 per violation, and to seek other relief, including
injunctive relief, as the court deems appropriate.
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9. Unfair claim settlement practices. Committing or performing with
such frequency as to indicate a general business practice any of the following:
b. Failing to acknowledge and act reasonably promptly upon
communications with respect to claims arising under insurance policies.
c. Failing to adopt and implement reasonable standards for the prompt
investigation of claims arising under insurance policies.
d. Refusing to pay claims without conducting a reasonable investigation
based upon all available information.
e. Failing to affirm or deny coverage of claims within a reasonable time
after proof of loss statements have been completed.
Updates>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/507B/4.html
515F.7 Information to be furnished insureds--hearings and
appeals of insureds.
An insurer shall, within a reasonable time after receiving written
request and upon payment of reasonable charges set by the commissioner, furnish
to an insured affected by a rate made by the insurer, or to the authorized
representative of the insured, all pertinent information as to the rate. An
insurer shall provide within this state reasonable means for the insured
aggrieved by the application of its rating system to be heard, in person or by
the insured's authorized representative, on written request to review the manner
in which the rating system has been applied in connection with the insurance
afforded the insured. If the insurer fails to grant or reject a request for
hearing and review within thirty days after it is made, the applicant may
proceed in the same manner as if the application had been rejected. The insured
affected by the action of the insurer on a request may, within thirty days after
written notice of the action, appeal to the commissioner, who, after a hearing
held upon not less than ten days' written notice to the appellant and to the
insurer, may affirm or reverse the action.
Updates>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/515F/7.html
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9. Unfair claim settlement practices. Committing or performing with
such frequency as to indicate a general business practice any of the following:
f. Not attempting in good faith to effectuate prompt, fair, and
equitable settlements of claims in which liability has become reasonably clear,
or failing to include interest on the payment of claims when required under
subsection 12 or section 511.38.
g. Compelling insureds to institute litigation to recover amounts due
under an insurance policy by offering substantially less than the amounts
ultimately recovered in actions brought by such insureds.
Updates>> http://www.legis.state.ia.us/IACODE/2001SUPPLEMENT/507B/4.html
Look for 507B4A, which should be added based on July 18 2002 provisions. We got
the information from an insurance division draft. The final version has not been
published yet, but will probably be voted on in April 2003. We will update Iowa
as soon as we get the final copy. Currently Iowa only has the 2001 version
available online.
According to the draft of the July 2002 provisions "A person's actions are
deemed untimely under this subsection if the person fails to respond to an
inquiry from the commissioner within thirty days of the receipt of the inquiry,
unless good cause exists for delay." The second part of the section only applies
to health maintenance organizations or health insurance.
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Total LossesWe have not found a law yet. Click here to get back to the top.
State Departments of Insurance
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