A bill for an act relating to an insurer’s use of credit information for a motor vehicle financial liability coverage policy.

HF 2259 prohibits Iowa insurers from using credit information to underwrite or rate motor vehicle financial liability coverage policies. This directly affects auto insurers operating in Iowa, specifically banning the use of credit data for determining premiums or eligibility for standard liability insurance covering vehicle ownership, maintenance, or use. The bill amends Iowa law to add a new subsection (1A) explicitly banning this practice, defining "financial liability coverage" as the standard liability insurance required for motor vehicles. Current law already restricted some credit use in insurance, but this bill specifically extends the prohibition to this coverage type.