Text: HF00317 Text: HF00319 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 321.1, Code 1995, is amended by adding 1 2 the following new subsections: 1 3 NEW SUBSECTION. 34A. "Liability insurance coverage" means 1 4 any of the following: 1 5 a. An owner's policy of liability insurance which is 1 6 issued by an insurance company authorized to do business in 1 7 Iowa to or for the benefit of the person named in the policy 1 8 as insured, and insuring the person named as insured and any 1 9 person using an insured motor vehicle with the express or 1 10 implied permission of the named insured against loss from 1 11 liability imposed by law for damages arising out of the 1 12 ownership, maintenance, or use of an insured motor vehicle 1 13 within the United States of America or the Dominion of Canada, 1 14 but subject to minimum limits, exclusive of interest and 1 15 costs, in the amounts specified in section 321A.21 or 1 16 specified in another provision of the Code, whichever is 1 17 greater. 1 18 b. A bond filed with the director pursuant to section 1 19 321A.24. 1 20 c. A valid certificate of deposit of money or security 1 21 issued by the treasurer of state pursuant to section 321A.25. 1 22 d. A valid certificate of self-insurance issued by the 1 23 director pursuant to section 321A.34. 1 24 NEW SUBSECTION. 54A. "Proof of insurance card" means 1 25 either a liability insurance card issued under section 1 26 321.20A, bond insurance card issued under section 321A.24, 1 27 security insurance card issued under section 321A.25, or self- 1 28 insurance card issued under section 321A.34. 1 29 Sec. 2. Section 321.20, Code 1995, is amended by adding 1 30 the following new subsection: 1 31 NEW SUBSECTION. 6. Proof of liability insurance coverage 1 32 if the registration is for a motor vehicle. 1 33 Sec. 3. NEW SECTION. 321.20A PROOF OF LIABILITY 1 34 INSURANCE COVERAGE. 1 35 1. Notwithstanding chapter 321A, which requires certain 2 1 persons to maintain proof of financial responsibility, a 2 2 person shall not drive a motor vehicle on the highways of this 2 3 state unless liability insurance coverage as defined in 2 4 section 321.1, subsection 34A, is in effect for the motor 2 5 vehicle and unless the driver has in the motor vehicle the 2 6 proof of insurance card issued for the motor vehicle. 2 7 2. An insurance company transacting business in this state 2 8 shall issue to its insured owners of motor vehicles registered 2 9 in this state a liability insurance card for each insured 2 10 issued a motor vehicle license. The liability insurance card 2 11 shall be in accordance with rules adopted by the commissioner 2 12 of insurance pursuant to chapter 17A after consultation with 2 13 the state department of transportation. Each liability 2 14 insurance card shall identify the motor vehicle license number 2 15 of the insured and shall indicate the expiration date of the 2 16 applicable liability insurance coverage. The liability 2 17 insurance card shall also contain the name and address of the 2 18 insured and insurer. 2 19 3. If the liability insurance coverage for a person issued 2 20 a motor vehicle license in this state is canceled or 2 21 terminated effective prior to the expiration date indicated on 2 22 the liability insurance card issued for the person, the person 2 23 shall return the liability insurance card to the insurer which 2 24 issued the card. 2 25 4. An insurance company transacting business in this state 2 26 shall notify the state department of transportation and the 2 27 sheriff of the county of the person's last known address of a 2 28 cancellation of an insurance policy issued to that person 2 29 within forty-five days after the policy's cancellation. The 2 30 notification shall be in a manner prescribed by the 2 31 commissioner of insurance after consultation with the state 2 32 department of transportation. 2 33 5. An owner or driver of a motor vehicle who is charged 2 34 with violating subsection 1 shall not be convicted if the 2 35 person produces in court, within a reasonable time, proof that 3 1 liability insurance coverage was in effect for the person at 3 2 the time of the person's arrest. 3 3 6. The director of transportation and the commissioner of 3 4 insurance shall adopt rules pursuant to chapter 17A to 3 5 implement this section. 3 6 Sec. 4. Section 321.177, Code 1995, is amended by adding 3 7 the following new subsection: 3 8 NEW SUBSECTION. 10. To any person who does not at the 3 9 time of application provide proof of liability insurance 3 10 coverage as required in section 321.20A. 3 11 Sec. 5. Section 321.492, unnumbered paragraph 1, Code 3 12 1995, is amended to read as follows: 3 13AnyA peace officer is authorized to stopanya vehicle to 3 14 require exhibition of the driver's motor vehicle license, to 3 15 require exhibition of the proof of insurance card issued for 3 16 the driver, to serve a summons or memorandum of traffic 3 17 violation, to inspect the condition of the vehicle, to inspect 3 18 the vehicle with reference to size, weight, cargo, log book, 3 19 bills of lading or other manifest of employment, tires, and 3 20 safety equipment, or to inspect the registration certificate, 3 21 the compensation certificate, travel order, or permit of the 3 22 vehicle. 3 23 Sec. 6. Section 321A.17, subsections 1 through 3, Code 3 24 1995, are amended to read as follows: 3 25 1.WheneverWhen the department, underanya law of this 3 26 state, suspends or revokes the license ofanya person upon 3 27 receiving record of a conviction or a forfeiture of bail or 3 28 revokes the license ofanya person pursuant to chapter 321J, 3 29 the department shall also suspend the registration for all 3 30 motor vehicles registered in the name of the person, except 3 31 that the department shall not suspend the registration, unless 3 32 otherwise required by law, if the person has previously given 3 33 or immediately gives andthereaftermaintains proof of 3 34financial responsibilityliability insurance coverage, as 3 35 defined in section 321.1, subsection 34A, with respect to all 4 1 motor vehicles registered by the person. 4 2 2.SuchThe licenseand registrationshall remain 4 3 suspended or revoked and shall notat any time thereafterbe 4 4 renewednor shall anyand a license shall not bethereafter4 5 issued tosuchthe person, nor shall any motor vehicle be4 6thereafter registered in the name of such personuntil 4 7 permitted under the motor vehicle laws of this state and not 4 8then unless anduntil the personshall givegives and 4 9thereafter maintainmaintains proof offinancial4 10responsibilityliability insurance coverage, as defined in 4 11 section 321.1, subsection 34A. 4 12 3. If a person is not licensed, but by final order or 4 13 judgment is convicted of or forfeits any bail or collateral 4 14 deposited to secure an appearance for trial for any offense 4 15 requiring the suspension or revocation of license, or for 4 16 operating an unregistered motor vehicle upon the highways,no4 17 a license shall not bethereafterissued tosuchthat person 4 18and no motor vehicle shall continue to be registered or4 19thereafter be registered in the name of such personuntil the 4 20 personshall givegives andthereafter maintainmaintains 4 21 proof offinancial responsibilityliability insurance 4 22 coverage, as defined in section 321.1, subsection 34A. 4 23 Sec. 7. Section 321A.24, subsection 1, Code 1995, is 4 24 amended to read as follows: 4 25 1. Proof offinancial responsibilityliability insurance 4 26 coverage, as defined in section 321.1, subsection 34A, may be 4 27 evidenced by the bond of a surety company duly authorized to 4 28 transact business within this state, or a bond with at least 4 29 two individual sureties each owning real estate within this 4 30 state, and together having equities equal in value to at least 4 31 twice the amount of the bond, which real estate shall be 4 32 scheduled in the bond approved by a judge or clerk ofathe 4 33 district courtof record, and whichsaidbond shall be 4 34 conditioned for payment of the amounts specified in section 4 35 321A.1, subsection 10.SuchThe bond shall be filed with the 5 1 department andshallis notbecancelable except after ten 5 2 days' written notice to the department.SuchThe department 5 3 shall issue to the person filing the bond a bond insurance 5 4 card. The bond insurance card shall state the name and 5 5 address of the person to whom the card is issued. The bond 5 6shall constituteconstitutes a lien in favor of the state upon 5 7 the real estate so scheduled of any surety, which lienshall5 8existexists in favor of any holder of a final judgment 5 9 against the person who has filedsuchthe bond, for damages, 5 10 including damages for care and loss of services, because of 5 11 bodily injury to or death ofanya person, or for damage 5 12 because of injury to or destruction of property, including the 5 13 loss of usethereofof the property, resulting from the 5 14 ownership, maintenance, use, or operation of a motor vehicle 5 15 aftersuchthe bond was filed, upon the filing of notice to 5 16 that effect by the department in the office of the proper 5 17 clerk of the district court of the county wheresuchthe real 5 18 estateshall beis located.AnyAn individual suretyso5 19 scheduling real estate security shall furnish satisfactory 5 20 evidence of titletheretoto the property and the nature and 5 21 extent of all encumbrancesthereonon the property and the 5 22 value of the surety's interestthereinin the property, in 5 23suchthe mannerasthe judge or clerk of the district courtof5 24recordapproving the bondmay requirerequires. The notice 5 25 filed by the department shall contain, in addition to any 5 26 other matters deemed by the department to be pertinent, 5 27containa legal description of the real estatesoscheduled, 5 28 the name of the holder of the record title, the amount for 5 29 which it stands as security, and the name of the person in 5 30 whose behalf proof issobeing made. Upon the filing ofsuch5 31 the notice the clerk of the district courtof such county5 32 shall retain thesamenotice as part of the records ofsuch5 33 the court and enter upon the encumbrance book the date and 5 34 hour of filing, the name of the surety, the name of the record 5 35 titleholder, the description of the real estate, and the 6 1 further notation that a lien is charged onsuchthe real 6 2 estate pursuant to the filed noticefiled hereunder. From and 6 3 after the entry of theforegoingnotice upon the encumbrance 6 4 book all personswhomsoever shall beare charged with notice 6 5thereofof it. 6 6 If the bond is cancelled, the person who filed the bond 6 7 shall surrender to the department all bond insurance cards 6 8 issued to the person. 6 9 Sec. 8. Section 321A.25, subsection 1, Code 1995, is 6 10 amended to read as follows: 6 11 1.With respect to accidents occurring on or after January6 121, 1981, and before January 1, 1983, proof of financial6 13responsibility may be evidenced by the certificate of the6 14state treasurer that the person named in the certificate has6 15deposited with the treasurer forty thousand dollars in cash,6 16or securities such as may legally be purchased by a state bank6 17or for trust funds of a market value of forty thousand6 18dollars; and with respect to accidents occurring on or after6 19January 1, 1983, proofProof offinancial responsibility6 20 liability insurance coverage, as defined in section 321.1, 6 21 subsection 34A, may be evidenced by the certificate of the 6 22statetreasurer of state that the person named in the 6 23 certificate has deposited with the treasurer of state fifty- 6 24 five thousand dollars in cash, or securitiessuch aswhich may 6 25 legally be purchased by a state bank orfortrust funds of a 6 26 market value of fifty-five thousand dollars. The treasurer of 6 27 state shall promptly notify the state department of 6 28 transportation of the name and address of the person to whom 6 29 the certificate has been issued. Upon receipt of the 6 30 notification, the department shall issue to the person a 6 31 security insurance card. The security insurance card shall 6 32 state the name and address of the person and the motor vehicle 6 33 license number of the person. Thestatetreasurer of state 6 34 shall not accept a deposit and issue a certificate for it and 6 35 the department shall not accept the certificate unless 7 1 accompanied by evidence that there are no unsatisfied 7 2 judgments of any character against the depositor in the county 7 3 where the depositor resides. 7 4 Sec. 9. Section 321A.32, subsection 3, Code 1995, is 7 5 amended to read as follows: 7 6 3.AnyA person whoshall forgeforges or, without 7 7 authority,sign anysigns a notice provided for under section 7 8 321A.5 that a policy or bond is in effect, or any evidence of 7 9proof offinancial responsibility, or any evidence of 7 10 liability insurance coverage as defined in section 321.1, 7 11 subsection 34A, or who files or offers for filing any such 7 12 notice or evidenceof proofknowing or having reason to 7 13 believe that it is forged or signed without authority,shall7 14beis guilty of a serious misdemeanor. 7 15 Sec. 10. Section 321A.34, subsections 2 and 3, Code 1995, 7 16 are amended to read as follows: 7 17 2. The department may,in the department's discretion,7 18 upon the application of such a person, issue a certificate of 7 19 self-insurancewhenif the department is satisfied thatsuch7 20 the personis possessedhas and will continue tobe possessed7 21ofhave the ability to pay judgments obtained againstsuchthe 7 22 person for damages arising out of the ownership, maintenance, 7 23 or use of any vehicle owned bysuchthe person. The director 7 24 shall issue to each person who has in effect a valid 7 25 certificate of self-insurance, a self-insurance card. The 7 26 card shall state the name and address of the person and shall 7 27 state the motor vehicle license number of the person to whom 7 28 the card is issued. 7 29 3. Upon not less than five days' notice and a hearing 7 30 pursuant tosuchthe notice, the department may upon 7 31 reasonable grounds cancel a certificate of self-insurance. 7 32 Failure to payanya judgment for damages arising out of the 7 33 ownership, maintenance, or use ofanya vehicle owned bysuch7 34 the self-insurer within thirty days aftersuchthe judgment 7 35shall have becomebecomes finalshall constituteconstitutes a 8 1 reasonable ground for the cancellation of a certificate of 8 2 self-insurance. Upon the cancellation of a certificate of 8 3 self-insurance, the person who was issued the certificate 8 4 shall surrender to the director all self-insurance cards 8 5 issued to the person. 8 6 Sec. 11. Section 805.8, subsection 2, Code 1995, is 8 7 amended by adding the following new paragraph: 8 8 NEW PARAGRAPH. z. If, in connection with a motor vehicle 8 9 accident, a person is charged and found guilty of a violation 8 10 of section 321.20A, subsection 1, the scheduled fine is five 8 11 hundred dollars, otherwise the scheduled fine for a violation 8 12 of section 321.20A, subsection 1, is one hundred dollars. 8 13 Sec. 12. EFFECTIVE AND IMPLEMENTATION DATES. Sections 1 8 14 through 11 of this Act take effect January 1, 1996. However, 8 15 in order to implement this Act, the insurance division of the 8 16 department of commerce and the director of transportation 8 17 shall each adopt rules as required under this Act by October 8 18 1, 1995, to be effective by January 1, 1996. The treasurer of 8 19 state shall notify the director of transportation of the names 8 20 and addresses of persons who are issued valid certificates 8 21 under section 321A.25, subsection 1, Code 1995, by November 1, 8 22 1995, and after that date the treasurer of state shall notify 8 23 the director of transportation as required under section 8 of 8 24 this Act. Insurance carriers authorized to do business in 8 25 this state and the director of transportation shall distribute 8 26 proof of insurance cards as required under this Act by 8 27 December 1, 1995. 8 28 EXPLANATION 8 29 This bill prohibits a person from obtaining a motor vehicle 8 30 license in this state unless liability insurance coverage is 8 31 in effect for the person's motor vehicle registered in this 8 32 state. A violation is subject to a $500 scheduled fine if the 8 33 violation is in connection with a motor vehicle accident, 8 34 otherwise the scheduled fine is $100. 8 35 The driver of the motor vehicle is also subject to a 9 1 conviction for a violation if the driver does not have in the 9 2 motor vehicle a proof of insurance card issued for the motor 9 3 vehicle. However, a person charged with not having in the 9 4 motor vehicle a proof of insurance card will not be convicted 9 5 if the person produces in court, within a reasonable time, 9 6 proof that the person had liability insurance coverage at the 9 7 time of the driver's arrest. Under the bill, liability 9 8 insurance coverage includes either liability insurance, the 9 9 filing of a bond, the deposit of money or securities, or a 9 10 certification of self-insurance. 9 11 The bill requires insurance companies transacting business 9 12 in this state to notify the state department of transportation 9 13 and the sheriff of the county in which the motor vehicle is 9 14 registered of a cancellation of an insurance policy issued to 9 15 a person who has been issued a motor vehicle license in this 9 16 state within 45 days after the policy's cancellation. 9 17 The bill creates and internally cites new section 321.20A 9 18 and new subsection 34A of section 321.1. 9 19 The bill generally takes effect January 1, 1996, but 9 20 certain administrative actions are required prior to that date 9 21 to allow for the bill's implementation. 9 22 The bill may create a state mandate as defined in chapter 9 23 25B. 9 24 LSB 2413HH 76 9 25 mj/sc/14
Text: HF00317 Text: HF00319 Text: HF00300 - HF00399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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