SF 2196: Relating to a waiting period before settling motor vehicle insurance claims

What it does

This bill prohibits an insurer from settling or attempting to settle a motor vehicle claim during the first hours after the occurrence of the event giving rise to the claim. An insurer’s duty to promptly settle a claim is tolled during the mandatory waiting period. A person who violates a provision of the bill is subject to entry of a cease and desist order, may be ordered by the commissioner of insurance to pay a civil penalty ranging from $1,000 to $50,000 under Code section 507B.7, and if the person has a license to operate the person’s business, the license is subject to suspension or revocation.

Senate subcommittee · named February 10, 2026

• Sen. Scott Webster (R) · scott.webster@legis.iowa.gov
• Sen. Matt Blake (D) · matt.blake@legis.iowa.gov
• Sen. Adrian Dickey (R) · adrian.dickey@legis.iowa.gov

Lobbying · 1 for, 4 against

For: Iowa Association for Justice

Against: Iowa Insurance Institute; Nationwide Mutual Ins. Co.; State Farm Insurance; Travelers

In plain words

1. February 4, 2026Filed in the Senate and sent to the State Government committee
2. February 9, 2026Senate subcommittee named: Webster, Guth and Staed
3. February 10, 2026Senate subcommittee named: Webster, Blake and Dickey
4. February 17, 2026Subcommittee recommended passing it with changes