In April 2025, Governor Kim Reynolds signed SF 619 (SJ 678) into law, ushering in sweeping changes to Iowa’s insurance laws. While the bill introduced long-overdue licensing requirements for carrier adjusters, a small step toward accountability, it also dealt a blow to Iowa policyholders by weakening consumer protections and tipping the balance of power further in favor of insurers.

As a result, consumers now face greater delays, denials, and underpayments when they file a claim. Often, at the exact moment when they are most vulnerable.

The Iowa Association of Public Insurance Adjusters (IAPIA) believes it’s time to correct course. That’s why the Iowa Association of Public Insurance Adjusters (IAPIA) is proposing new consumer protection language for Iowa Code §515.117. 

What Iowa Code § 515.117 Says About Timely Claim Payments

• § 515.117 is “Reserved” in the Iowa Code; it has no active statutory provisions or definitions.
• Because it’s reserved, there is no legal requirement in that section right now governing claim timelines, acknowledgments, inspections, payments, or interest penalties under that section.
• Any existing claims-handling obligations (acknowledgment, prompt investigation, etc.) are instead governed under § 507B.4 (Unfair Claims Practices/insurer obligations) and the general doctrine of good faith in insurance law.

That means that, under present law: 

• Insurers must act reasonably promptly, investigate claims, and not misrepresent provisions (under Iowa’s unfair claims settlement practices). 
• But there is no express statutory timeline in § 515.117 (because it’s blank), and there is no statutory penalty tied directly to § 515.117 as of now.

Our Proposed Changes To §515.117

IAPIA’s draft language would transform § 515.117 from a blank “reserved” slot into a robust consumer-protection statute. Our proposed changes would add several requirements and penalties:

15-Day Claim Acknowledgment
Insurers must acknowledge receipt of a claim, begin investigation, and request necessary documents within 15 days. No more ignoring or slow-walking claims while families wait in limbo.

30-Day Inspection Deadline

If an inspection is needed, it must be scheduled and completed within 30 days of receiving a proof of loss. Only extreme circumstances, such as hazardous weather, would justify a delay. Insurers cannot cite “staffing shortages” or “vendor unavailability” as excuses.

15-Day Response to Communications
Every communication from a claimant that reasonably requires a response must be answered within 15 days, and the response must be substantive. Vague acknowledgments or boilerplate letters will not suffice.

30-Day Acceptance or Denial
Insurers must accept or deny claims in writing within 30 days of receiving proof of loss. If more time is legitimately needed, they must explain why and provide updates every 30 days thereafter.

10-Day Payment Rule

Once liability is accepted or once any condition is satisfied, the insurer must issue payment within 10 days. No more dragging out settlements for weeks or months.

18% Interest Penalty for Delayed Payments

If an insurer wrongfully delays payment beyond the legal timeframes, they must pay 18% annual interest on the unpaid amount, plus attorney’s fees if the policyholder prevails in court.

In short, the proposed changes would give teeth to § 515.117 by giving it clear deadlines, responsibilities, and monetary consequences, which currently do not exist there.

Why Changing § 515.117 Is Critical 

Our proposed changes to §515.117 give insurers clear deadlines and financial consequences for failing to comply. It ensures that when an Iowa family suffers a loss, they can count on timely action, not endless excuses.

Significance of the Changes

• Because § 515.117 is currently empty, the proposed version would fill a statutory gap and put  many of the best practices (prompt handling, timely payment) into an explicit legal requirement rather than leaving them to interpretation or insurer discretion.
• The changes would move many standards that currently live under § 507B.4 (Unfair Claims Practices) or general insurance law into a dedicated claims-handling statute. That makes enforcement, clarity, and statutory reference easier for advocates and courts.
• The proposed § 515.117 becomes a direct vehicle for consumer protection and makes insurers legally accountable (not just under broad unfair practices rules) for failing to meet timelines.
• Because SF 619 / SJ 678 gave insurers more leverage in other parts of Iowa’s insurance law (restricted assignment, limited appraisal scope), making § 515.117 stronger is one way to balance the scales: if insurers get more power elsewhere, they should be held strictly to timing rules in the claims process.
• Nothing in § 515.117 covers claim payment timing. Our proposed changes are not a replacement, but a new expansion of statutory consumer rights.

Correcting the Damage of SF 619 (SJ 678)

The passage of SF 619 in 2025 marked a turning point. While it added licensing requirements for carrier adjusters, a victory long sought by consumer advocates, it also eroded key protections that homeowners had relied on for years.

• Restricted Appraisal Process
  By redefining “amount of loss” to focus narrowly on cost, SF 619 limited the appraisal process and cut off homeowners’ ability to challenge scope or causation disputes.
• Stronger Restrictions on Assignments
  Consumers now face new hurdles when assigning benefits or directing payment to contractors or adjusters, reducing flexibility in resolving claims.

In short, SF 619 gave insurers new tools to limit payouts and avoid accountability, while giving policyholders fewer options for recourse.

That’s why amending §515.117 is so critical. It doesn’t undo SF 619, but it restores balance by creating strict accountability on the front end of the claims process. If insurers must respond promptly, inspect quickly, and pay on time with real financial consequences for failure, policyholders won’t be forced to wait months just to find out where they stand.

Real-World Benefits for Iowans

If enacted, our proposed changes to §515.117 would:

• Speed up recovery for families after disasters by ensuring insurers can’t stall.
• Protect contractors and small businesses from the financial strain of unpaid invoices.
• Strengthen trust in the system, giving policyholders confidence that their insurer will act in good faith.
• Reduce litigation, as timely payments eliminate the need for drawn-out disputes.
• Level the playing field against an insurance lobby that has consistently pushed to reduce consumer rights.

Why Membership Support Matters

Passing amendments to §515.117 won’t be easy. The insurance lobby has deep pockets and a proven track record of influencing lawmakers. In 2025, they succeeded in advancing SF 619 because they had the resources to push hard at every stage.

That’s where you come in.

• Every membership dollar goes directly toward lobbying efforts. From hiring lobbyists to drafting amendments to meeting with legislators, your support funds the work that makes change possible.
• Membership strengthens our collective voice. Legislators take notice when they hear from a united front of public adjusters, contractors, and attorneys across Iowa.
• You’re protecting your livelihood. Whether you’re an adjuster, a roofer, or an attorney, these laws directly impact your ability to serve clients and keep your business strong.

Join the Fight for Timely Payments

The passage of SF 619 showed just how far the insurance lobby is willing to go to weaken consumer protections. But the fight isn’t over. By pushing for changes to §515.117, we can restore balance, hold insurers accountable, and make sure Iowa families aren’t left waiting when they need help the most.

Join IAPIA Today and support our fight for fair, timely claim payments. Together, we can ensure that Iowa’s insurance laws serve the people, not just the industry.