A bill for an act relating to a waiting period before settling motor vehicle insurance claims.

This Iowa bill (SF 2196) requires auto insurance companies to wait at least 72 hours before settling or attempting to settle a motor vehicle insurance claim after an accident occurs. It directly affects insurance companies operating in Iowa, prohibiting them from processing claims during the initial 72-hour period following an accident. The bill also states that an insurer's obligation to settle claims promptly is paused ("tolled") during this waiting period. Violations could result in civil penalties of $1,000-$50,000 or license suspension for the insurer.