2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507B - INSURANCE TRADE PRACTICES
507B.5 - FAVORED AGENT OR INSURER -- COERCION OF DEBTORS.

        507B.5  FAVORED AGENT OR INSURER -- COERCION OF
      DEBTORS.
         1.  No person may do any of the following:
         a.  Require, as a condition precedent to the lending of money
      or extension of credit, or any renewal thereof, that the person to
      whom such money or credit is extended or whose obligation the
      creditor is to acquire or finance, negotiate any policy or contract
      of insurance through a particular insurer or group of insurers or
      agent or broker or group of agents or brokers.
         b.  Unreasonably disapprove the insurance policy provided by a
      borrower for the protection of the property securing the credit or
      lien.
         c.  Require directly or indirectly that any borrower,
      mortgagor, purchaser, insurer, broker, or agent pay a separate
      charge, in connection with the handling of any insurance policy
      required as security for a loan on real estate, or pay a separate
      charge to substitute the insurance policy of one insurer for that of
      another.
         d.  Use or disclose information resulting from a requirement
      that a borrower, mortgagor or purchaser furnish insurance of any kind
      on real property being conveyed or used as collateral security to a
      loan, when such information is to the advantage of the mortgagee,
      vendor, or lender, or is to the detriment of the borrower, mortgagor,
      purchaser, insurer, or the agent or broker complying with such a
      requirement.
         2.  Subsection 1, paragraph "c" of this section does not
      include the interest which may be charged on premium loans or premium
      advancements in accordance with the security instrument.
         3.  For purposes of subsection 1, paragraph "b" of this
      section, such disapproval shall be deemed unreasonable if it is not
      based solely on reasonable standards uniformly applied, relating to
      the extent of coverage required and the financial soundness and the
      services of an insurer.  Such standards shall not discriminate
      against any particular type of insurer, nor shall such standards call
      for the disapproval of an insurance policy because such policy
      contains coverage in addition to that required.
         4.  If a violation of this section is found, the person in
      violation shall be subject to the same procedures and penalties as
      are applicable to other provisions of this chapter.
         5.  For purposes of this section, "person" includes any
      individual, corporation, association, partnership, or other legal
      entity.  

         [C73, 75, 77, 79, 81, § 507B.5]
         Referred to in § 507B.6, 507B.12, 535.8