HOUSE FILE 49

BY  HUNTER

A BILL FOR

An Act providing for reduced automobile insurance premiums for older adults who complete a certified driver safety education course.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  NEW SECTION.  321.178A  Driver safety education program.
   1.  The department, in consultation with the department of public safety, shall provide for the establishment of a certified driver safety education course to be offered throughout the state. The department shall establish by rule requirements relating to curriculum, hours of instruction, instructor qualifications, and any other matters deemed appropriate by the department. The rules shall provide for the administration of a written test and issuance of a certificate to demonstrate a person’s successful completion of the course for purposes of qualifying for an automobile insurance premium discount under section 516B.4.
   2.  The department may establish refresher courses based on the curriculum offered in the driver safety education course. A person who successfully completes a refresher course approved by the department within three years of obtaining a driver safety education certificate under subsection 1 shall be issued a new certificate. For the purpose of maintaining eligibility for an automobile insurance premium discount under section 516B.4, a person may continue to be recertified by successfully completing a refresher course at least every three years.
   Sec. 2.  NEW SECTION.  516B.4  Senior driver insurance premium discount.
   1.  The commissioner shall require that beginning January 1, 2012, an insurance company transacting business in this state shall provide a premium reduction of at least ten percent for an automobile insurance policy, as defined in section 515D.2, issued to a person fifty-five years of age or older who has completed a certified driver safety education course or refresher course within the last three years, as evidenced by a certificate issued pursuant to section 321.178A. If the person entitled to the discounted rate is insured under a policy covering more than one driver, the amount of the premium reduction may be prorated according to the number of insureds covered under the policy who qualify for the lowered premium.
   2.  The premium reduction required under subsection 1 may be revoked for a person who is involved in a motor vehicle accident during the period of the premium reduction if it is found that the person committed a violation of chapter 321 that was a contributing factor in the accident.
EXPLANATION
   This bill requires the department of transportation, in consultation with the department of public safety, to establish a certified driver safety education course to be offered throughout the state. A person who successfully completes the driver safety education course shall be issued a certificate.
   Beginning January 1, 2012, the commissioner of insurance shall require insurers transacting business in this state to provide a 10 percent automobile insurance premium reduction for persons 55 years of age or older who have obtained a driver safety education course certificate within the last three years. The premium reduction may be prorated, based on the number of insureds under the policy who qualify for the discount. In addition, the insurer may revoke the discount for a person who is involved in a motor vehicle accident if the person committed a violation of the state’s motor vehicle laws that was a contributing factor in the accident.
   The bill authorizes the department of transportation to develop refresher courses which may be taken by a person in lieu of the full driver safety education course in order to continue to qualify for the insurance premium reduction.