Iowa Code Title XIII. Commerce [Chs. 505-554D] § 515.137A. Post-loss assignment of rights or benefits to a residential contractor

a. “Catastrophe” means the same as defined in section 103A.71.

b. “Catastrophic disaster” includes a major disaster declaration by the president of the United States or a state of disaster emergency proclamation by the governor.

c. “Consumer advocate” means a consumer advocate appointed pursuant to section 505.8, subsection 6, paragraph “b”, subparagraph (1).

d. “Post-loss assignment” means any instrument by which post-loss benefits, rights, or duties of a named insured under a residential property and casualty insurance policy are assigned or transferred to a residential contractor.  The post-loss assignment must only assign the insurance proceeds a named insured is entitled to receive from the named insured's insurer for the repair, replacement construction, or reconstruction of the named insured's property.

e. “Residential contractor” means the same as defined in section 103A.71.

f. “Residential real estate” means the same as defined in section 103A.71.

g. “Roof system” means the same as defined in section 103A.71.

a. Rebating or offering to rebate any portion of the named insured's insurance deductible as an inducement for the named insured to purchase a good or service.

b. Imposing an administrative fee on the named insured for canceling the post-loss assignment, or imposing a fee to process the insurance check or to interact with the named insured's mortgage company.

c. Acting as a public adjuster without being licensed under chapter 522C.

d. Receiving payments from the named insured's insurer that are unrelated to the repair, replacement construction, or reconstruction work on the covered insured's property, including but not limited to all of the following:

4. a. A post-loss assignment must include all of the following:

b. A post-loss assignment shall not impair the interest of a mortgagee listed on the declarations page of the property and casualty insurance policy that is the subject of the post-loss assignment.  All mortgagees shall be named as a co-payee for the payment of benefits under a property and casualty insurance policy covering residential real estate.

c. A post-loss assignment shall only authorize a residential contractor to be named as a co-payee, along with the named insured and all mortgagees, for the payment of benefits under a property and casualty insurance policy covering residential real estate.

d. A post-loss assignment shall not prevent or inhibit an insurer from communicating with the named insured or a mortgagee listed on the declarations page of the property and casualty insurance policy that is the subject of the post-loss assignment.

e. An electronic copy of the fully executed post-loss assignment shall be provided to the insurer of the residential real estate, the named insured, and all mortgagees of the damaged residential real estate within five business days after execution of the post-loss assignment.  A paper copy shall be provided to the insurer, a named insured, and any mortgagee of the damaged residential real estate within five business days of a request by the insurer, the named insured, or a mortgagee.

f. A residential contractor named in a post-loss assignment must cooperate with the insurer of the damaged residential real estate in a claim investigation by providing documents and records requested by the insurer and complying with each post-loss duty included in the named insured's insurance policy.

5. a. A named insured shall have the right to cancel a post-loss assignment without penalty or fee under all of the following circumstances:

b. The cancellation shall be made in writing.  Within ten business days of the date of the written cancellation, the residential contractor shall tender to the named insured, the landowner, or the possessor of the real estate, all payments, partial payments, or deposits that have been made by such person.