House File 107HOUSE FILE BY SWAIM and ANDERSON Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act increasing the minimum amount of money necessary to prove 2 financial responsibility for liability for motor vehicle 3 accidents. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1523HH 82 6 av/gg/14 PAG LIN 1 1 Section 1. Section 321A.1, subsection 11, Code 2007, is 1 2 amended to read as follows: 1 3 11. PROOF OF FINANCIAL RESPONSIBILITY. Proof of ability 1 4 to respond in damages for liability, on account of accidents 1 5 occurring subsequent to the effective date of the proof, 1 6 arising out of the ownership, maintenance, or use of a motor 1 7 vehicle, in amounts as follows: With respect to accidents 1 8 occurring on or after January 1, 1981, and prior to January 1, 1 9 1983, the amount of fifteen thousand dollars because of bodily 1 10 injury to or death of one person in any one accident, and, 1 11 subject to the limit for one person, the amount of thirty 1 12 thousand dollars because of bodily injury to or death of two 1 13 or more persons in any one accident, and the amount of ten 1 14 thousand dollars because of injury to or destruction of 1 15 property of others in any one accident; and with respect to 1 16 accidents occurring on or after January 1, 1983, and prior to 1 17 January 1, 2008, the amount of twenty thousand dollars because 1 18 of bodily injury to or death of one person in any one 1 19 accident, and, subject to the limit for one person, the amount 1 20 of forty thousand dollars because of bodily injury to or death 1 21 of two or more persons in any one accident, and the amount of 1 22 fifteen thousand dollars because of injury to or destruction 1 23 of property of others in any one accident; and with respect to 1 24 accidents occurring on or after January 1, 2008, the amount of 1 25 fifty thousand dollars because of bodily injury to or death of 1 26 one person in any one accident, and, subject to the limit for 1 27 one person, the amount of one hundred thousand dollars because 1 28 of bodily injury to or death of two or more persons in any one 1 29 accident, and the amount of fifty thousand dollars because of 1 30 injury to or destruction of property of others in any one 1 31 accident. 1 32 Sec. 2. Section 321A.5, subsection 3, unnumbered paragraph 1 33 1, Code 2007, is amended to read as follows: 1 34 A policy or bond is not effective under this section unless 1 35 issued by an insurance company or surety company authorized to 2 1 do business in this state, except that if the motor vehicle 2 2 was not registered in this state, or was a motor vehicle which 2 3 was registered elsewhere than in this state at the effective 2 4 date of the policy or bond, or the most recent renewal 2 5 thereof, the policy or bond is not effective under this 2 6 section unless the insurance company or surety company if not 2 7 authorized to do business in this state executes a power of 2 8 attorney authorizing the department to accept service on its 2 9 behalf of notice or process in any action upon the policy or 2 10 bond arising out of the accident. However, with respect to 2 11 accidents occurring on or after January 1, 1981, and before 2 12 January 1, 1983, every such policy or bond is subject, if the 2 13 accident has resulted in bodily injury or death, to a limit, 2 14 exclusive of interest and costs, of not less than fifteen 2 15 thousand dollars because of bodily injury to or death of one 2 16 person in any one accident and, subject to the limit for one 2 17 person, to a limit of not less than thirty thousand dollars 2 18 because of bodily injury to or death of two or more persons in 2 19 any one accident, and, if the accident has resulted in injury 2 20 to or destruction of property, to a limit of not less than ten 2 21 thousand dollars because of injury to or destruction of 2 22 property of others in any one accident; and with respect to 2 23 accidents occurring on or after January 1, 1983, and prior to 2 24 January 1, 2008, every such policy or bond is subject, if the 2 25 accident has resulted in bodily injury or death, to a limit, 2 26 exclusive of interest and costs, of not less than twenty 2 27 thousand dollars because of bodily injury to or death of one 2 28 person in any one accident and, subject to the limit for one 2 29 person, to a limit of not less than forty thousand dollars 2 30 because of bodily injury to or death of two or more persons in 2 31 any one accident, and, if the accident has resulted in injury 2 32 to or destruction of property, to a limit of not less than 2 33 fifteen thousand dollars because of injury to or destruction 2 34 of property of others in any one accident; and with respect to 2 35 accidents occurring on or after January 1, 2008, the amount of 3 1 fifty thousand dollars because of bodily injury to or death of 3 2 one person, in any one accident, and, subject to the limit for 3 3 one person, the amount of one hundred thousand dollars because 3 4 of bodily injury to or death of two or more persons in any one 3 5 accident, and the amount of fifty thousand dollars because of 3 6 injury to or destruction of property of others in any one 3 7 accident. 3 8 Sec. 3. Section 321A.15, subsection 1, paragraph b, 3 9 unnumbered paragraph 1, Code 2007, is amended to read as 3 10 follows: 3 11 Judgments referred to in this chapter and rendered upon 3 12 claims arising from accidents occurring on or after January 1, 3 13 1983, and prior to January 1, 2008, shall, for the purpose of 3 14 this chapter only, be deemed satisfied when the following 3 15 occur: 3 16 Sec. 4. Section 321A.15, subsection 1, Code 2007, is 3 17 amended by adding the following new paragraph: 3 18 NEW PARAGRAPH. c. Judgments referred to in this chapter 3 19 and rendered upon claims arising from accidents occurring on 3 20 or after January 1, 2008, shall, for the purpose of this 3 21 chapter only, be deemed satisfied when the following occur: 3 22 (1) When fifty thousand dollars has been credited upon any 3 23 judgment or judgments rendered in excess of that amount 3 24 because of bodily injury to or death of one person as the 3 25 result of any one accident. 3 26 (2) When, subject to the limit of fifty thousand dollars 3 27 because of bodily injury to or death of one person, the sum of 3 28 one hundred thousand dollars has been credited upon any 3 29 judgment or judgments rendered in excess of that amount 3 30 because of bodily injury to or death of two or more persons as 3 31 the result of any one accident. 3 32 (3) When fifty thousand dollars has been credited upon any 3 33 judgment or judgments rendered in excess of that amount 3 34 because of injury to or destruction of property of others as a 3 35 result of any one accident. 4 1 Sec. 5. Section 321A.21, subsection 2, paragraph b, Code 4 2 2007, is amended to read as follows: 4 3 b. Shall insure the person named in the policy and any 4 4 other person, as insured, using the motor vehicles with the 4 5 express or implied permission of the named insured, against 4 6 loss from the liability imposed by law for damages arising out 4 7 of the ownership, maintenance, or use of the motor vehicles 4 8 within the United States of America or the Dominion of Canada, 4 9 subject to limits exclusive of interest and costs, with 4 10 respect to each such motor vehicle, as follows: With respect 4 11 to all accidents which occur on or after January 1, 1981, and 4 12 before January 1, 1983, fifteen thousand dollars because of 4 13 bodily injury to or death of one person in any one accident 4 14 and, subject to said limit for one person, thirty thousand 4 15 dollars because of bodily injury to or death of two or more 4 16 persons in any one accident, and ten thousand dollars because 4 17 of injury to or destruction of property of others in any one 4 18 accident; and with respect to all accidents which occur on or 4 19 after January 1, 1983, and prior to January 1, 2008, twenty 4 20 thousand dollars because of bodily injury to or death of one 4 21 person in any one accident and, subject to said limit for one 4 22 person, forty thousand dollars because of bodily injury to or 4 23 death of two or more persons in any one accident, and fifteen 4 24 thousand dollars because of injury to or destruction of 4 25 property of others in any one accident; and with respect to 4 26 accidents occurring on or after January 1, 2008, the amount of 4 27 fifty thousand dollars because of bodily injury to or death of 4 28 one person, in any one accident, and, subject to the limit for 4 29 one person, the amount of one hundred thousand dollars because 4 30 of bodily injury to or death of two or more persons in any one 4 31 accident, and the amount of fifty thousand dollars because of 4 32 injury to or destruction of property of others in any one 4 33 accident. 4 34 EXPLANATION 4 35 This bill raises the amount necessary to show proof of 5 1 financial responsibility for liability arising out of the 5 2 ownership, maintenance, or use of a motor vehicle that occurs 5 3 on or after January 1, 2008. 5 4 Code section 321A.1 is amended to raise a showing of proof 5 5 of financial responsibility from $20,000 to $50,000 for 5 6 damages because of bodily injury to or death of one person in 5 7 any one accident, and subject to the limit for one person, 5 8 from $40,000 to $100,000 because of bodily injury to or death 5 9 of two or more persons in any one accident, and from $15,000 5 10 to $50,000 because of injury to or destruction of property of 5 11 others in any one accident. 5 12 Corresponding amendments are made in other sections of Code 5 13 chapter 321A. 5 14 LSB 1523HH 82 5 15 av/gg/14