Text: HF02403 Text: HF02405 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 516A.1, Code 1997, is amended to read 1 2 as follows: 1 3 516A.1 COVERAGE INCLUDED IN EVERY LIABILITY POLICY – 1 4 REJECTION BY INSURED. 1 5NoAn automobile liability or motor vehicle liability 1 6 insurance policy insuring against liability for bodily injury 1 7 or death arising out of the ownership, maintenance, or use of 1 8 a motor vehicle shall not be delivered or issued for delivery 1 9 in this state with respect to any motor vehicle registered or 1 10 principally garaged in this state, unless coverage is provided 1 11 in such policy or supplementaltheretoto such policy, for the 1 12 protection of persons insured under such policy who are 1 13 legally entitled to recover damages from the owner or operator 1 14 of an uninsured motor vehicle or a hit-and-run motor vehicle 1 15 or an underinsured motor vehicle because of bodily injury, 1 16 sickness, or disease, including death resulting therefrom, or 1 17 because of property damage, caused by accident and arising out 1 18 of the ownership, maintenance, or use of such uninsured or 1 19 underinsured motor vehicle, or arising out of physical contact 1 20 of such hit-and-run motor vehicle with the person insured or 1 21 with a motor vehicle which the person insured is occupying at 1 22 the time of the accident. Both the uninsured motor vehicle or 1 23 hit-and-run motor vehicle coverage, and the underinsured motor 1 24 vehicle coverage shall include limits for bodily injury or 1 25 death, and for property damage, at least equal to those stated 1 26 in section 321A.1, subsection 10. The form and provisions of 1 27 such coverage shall be examined and approved by the 1 28 commissioner of insurance. 1 29 Coverage provided under this section for property damage 1 30 caused by an uninsured motor vehicle, a hit-and-run motor 1 31 vehicle, or an underinsured motor vehicle, at the option of 1 32 the insurer, may be conditioned on the identification of the 1 33 operator of the vehicle causing the damage. An insurer 1 34 providing coverage for property damage under this section 1 35 shall make available a nondeductible option, in addition to 2 1 any other deductible option the insurer decides to offer. 2 2 Coverage provided under this section for property damage 2 3 shall also include coverage for damages caused by an accident 2 4 involving a wild animal struck by the vehicle. A claim 2 5 arising under such coverage for damage caused by an accident 2 6 involving a wild animal struck by the vehicle shall not be 2 7 considered by an insurer in determining the premium rate to be 2 8 charged the insured driver for any coverage. 2 9 However, the named insured may reject all of such coverage, 2 10 or reject the uninsured motor vehicle (hit-and-run motor 2 11 vehicle) coverage for bodily injury or death, or reject the 2 12 uninsured motor vehicle (hit-and-run motor vehicle) coverage 2 13 for property damage, or reject the underinsured motor vehicle 2 14 coverage for bodily injury or death, or reject the 2 15 underinsured motor vehicle coverage for property damage, by 2 16 written rejections signed by the named insured. If rejection 2 17 is made on a form or document furnished by an insurance 2 18 company or insurance agent, it shall be on a separate sheet of 2 19 paper which contains only the rejection and information 2 20 directly related to it. Such coverage need not be provided in 2 21 or supplemental to a renewal policy if the named insured has 2 22 rejected the coverage in connection with a policy previously 2 23 issued to the named insured by the same insurer. 2 24 Sec. 2. Section 516A.2, subsection 1, unnumbered paragraph 2 25 1, Code 1997, is amended to read as follows: 2 26 Except with respect to a policy containing both 2 27 underinsured motor vehicle coverage and uninsured or hit-and- 2 28 run motor vehicle coverage, nothing contained in this chapter 2 29 shall be construed as requiring forms of coverage provided 2 30 pursuantheretoto this chapter, whether alone or in 2 31 combination with similar coverage afforded under other 2 32 automobile liability or motor vehicle liability policies, to 2 33 afford limits in excess of those that would be afforded had 2 34 the insuredthereunderunder such liability policy been 2 35 involved in an accident with a motorist who was insured under 3 1 a policy of liability insurance with the minimum limits for 3 2 bodily injury or death, or for property damage, prescribed in 3 3 subsection 10 of section 321A.1. Such forms of coverage may 3 4 include terms, exclusions, limitations, conditions, and 3 5 offsets which are designed to avoid duplication of insurance 3 6 or other benefits. 3 7 Sec. 3. Section 516A.4, Code 1997, is amended to read as 3 8 follows: 3 9 516A.4 INSURER MAKING PAYMENT – REIMBURSEMENT. 3 10 In the event of payment to any person under the coverage 3 11 required by this chapter and subject to the terms and 3 12 conditions of such coverage, the insurer making such payment 3 13shall, to the extentthereofof the payment, shall be entitled 3 14 to the proceeds of any settlement or judgment resulting from 3 15 the exercise of any rights of recovery of such person against 3 16 any person or organization legally responsible for the bodily 3 17 injury or property damage for which such payment is made, 3 18 including the proceeds recoverable from the assets of the 3 19 insolvent insurer. The person to whomsaidthe payment is 3 20 made under the insolvency protection required by this chapter, 3 21shallto the extentthereofof the payment, shall be deemed to 3 22 have waived any right to proceed to enforce such a judgment 3 23 against the assets of the judgment debtor who was insured by 3 24 the insolvent insurer whose insolvency resulted insaidthe 3 25 payment being made, other than assets recovered or recoverable 3 26 bysuchthe judgment debtor fromsuchthe insolvent insurer. 3 27 EXPLANATION 3 28 This bill provides that an automobile liability or motor 3 29 vehicle liability insurance policy insuring against liability 3 30 for bodily injury or death arising out of the ownership, 3 31 maintenance, or use of a motor vehicle which is delivered or 3 32 issued for delivery in this state with respect to any motor 3 33 vehicle registered or principally garaged in this state must 3 34 provide coverage for the protection of persons insured under 3 35 the policy who are legally entitled to recover damages from 4 1 the owner or operator of an uninsured motor vehicle or a hit- 4 2 and-run motor vehicle or an underinsured motor vehicle because 4 3 of property damage in the same manner as is provided for 4 4 bodily injury or death. Such coverage may be conditioned on 4 5 the identification of the operator of the vehicle causing the 4 6 damage. The bill provides that an insurer providing such 4 7 coverage is to make available a nondeductible option in 4 8 addition to any other deductible option offered. The named 4 9 insured must be able to reject such coverage by written 4 10 rejection signed by the named insured. 4 11 The bill provides that coverage provided under this section 4 12 for property damage, shall also include coverage for damages 4 13 caused by an accident involving a wild animal struck by the 4 14 vehicle. The bill prohibits an insurer from considering a 4 15 claim arising under such coverage for damage caused by an 4 16 accident involving a wild animal struck by the vehicle in 4 17 determining the premium rate to be charged the insured driver 4 18 for any coverage. 4 19 LSB 4097HH 77 4 20 mj/sc/14
Text: HF02403 Text: HF02405 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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