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House Study Bill 203

Bill Text

PAG LIN
  1  1    Section 1.  Section 321A.1, subsection 11, Code 2003, is
  1  2 amended to read as follows:
  1  3    11.  PROOF OF FINANCIAL RESPONSIBILITY.
  1  4    a.  Proof of ability to respond in damages for liability,
  1  5 on account of accidents occurring subsequent to the effective
  1  6 date of the proof, arising out of the ownership, maintenance,
  1  7 or use of a motor vehicle, in amounts as follows:
  1  8    With respect to accidents occurring on or after January 1,
  1  9 1981, and prior to January 1, 1983, the amount of fifteen
  1 10 thousand dollars because of bodily injury to or death of one
  1 11 person in any one accident, and, subject to the limit for one
  1 12 person, the amount of thirty thousand dollars because of
  1 13 bodily injury to or death of two or more persons in any one
  1 14 accident, and the amount of ten thousand dollars because of
  1 15 injury to or destruction of property of others in any one
  1 16 accident; and with respect to accidents occurring on or after
  1 17 January 1, 1983 2004, the amount of twenty forty thousand
  1 18 dollars because of bodily injury to or death of one person in
  1 19 any one accident, and, subject to the limit for one person,
  1 20 the amount of forty eighty thousand dollars because of bodily
  1 21 injury to or death of two or more persons in any one accident,
  1 22 and the amount of fifteen thirty thousand dollars because of
  1 23 injury to or destruction of property of others in any one
  1 24 accident.
  1 25    b.  The amounts required by this subsection shall be
  1 26 adjusted annually by the department by an amount equal to the
  1 27 percentage rate of change in the consumer price index for all
  1 28 urban consumers for the immediately preceding calendar year as
  1 29 published in the federal register by the federal department of
  1 30 labor, bureau of labor statistics.
  1 31    Sec. 2.  Section 321A.5, subsection 3, Code 2003, is
  1 32 amended to read as follows:
  1 33    3.  a.  (1)  A policy or bond is not effective under this
  1 34 section unless issued by an insurance company or surety
  1 35 company authorized to do business in this state, except that.
  2  1 However, if the motor vehicle was not registered in this
  2  2 state, or was a motor vehicle which that was registered
  2  3 elsewhere than in this state at the effective date of the
  2  4 policy or bond, or the most recent renewal thereof, the policy
  2  5 or bond is not effective under this section unless the
  2  6 insurance company or surety company if not authorized to do
  2  7 business in this state executes a power of attorney
  2  8 authorizing the department to accept on its behalf service on
  2  9 its behalf of notice or process in any action upon the policy
  2 10 or 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
  2 23    (2)  With respect to accidents occurring on or after
  2 24 January 1, 1983 2004, every such policy or bond is subject, if
  2 25 to the following limits:
  2 26    (a)  If the accident has resulted in bodily injury or
  2 27 death, to a limit, exclusive of interest and costs, of not
  2 28 less than twenty forty thousand dollars because of bodily
  2 29 injury to or death of one person in any one accident and,
  2 30 subject to the limit for one person, to a limit of not less
  2 31 than forty eighty thousand dollars because of bodily injury to
  2 32 or death of two or more persons in any one accident, and, if.
  2 33    (b)  If the accident has resulted in injury to or
  2 34 destruction of property, to a limit of not less than fifteen
  2 35 thirty thousand dollars because of injury to or destruction of
  3  1 property of others in any one accident.
  3  2    b.  Upon receipt of a report of a motor vehicle accident
  3  3 and information that an automobile liability policy or surety
  3  4 bond meeting the requirements of this chapter was in effect at
  3  5 the time of this accident covering liability for damages
  3  6 resulting from such accident, the department shall forward by
  3  7 regular mail to the insurance carrier or surety carrier which
  3  8 issued such policy or bond a copy of such information
  3  9 concerning insurance or bond coverage, and it shall be
  3 10 presumed that such policy or bond was in effect and provided
  3 11 coverage to both the operator and the owner of the motor
  3 12 vehicle involved in such accident unless the insurance carrier
  3 13 or surety carrier shall notify the department otherwise within
  3 14 fifteen days from the mailing of such information to such
  3 15 carrier; provided, however, that in the event the department
  3 16 shall later ascertain that erroneous information had been
  3 17 given the department in respect to the insurance or bond
  3 18 coverage of the operator or owner of a motor vehicle involved
  3 19 in such accident, the department shall take such action as the
  3 20 department is otherwise authorized to do under this chapter
  3 21 within sixty days after the receipt by the department of
  3 22 correct information with respect to such coverage.
  3 23    Sec. 3.  Section 321A.15, Code 2003, is amended to read as
  3 24 follows:
  3 25    321A.15  PAYMENTS SUFFICIENT TO SATISFY REQUIREMENTS.
  3 26    1.  a.  Judgments referred to in this chapter and rendered
  3 27 upon claims arising from accidents occurring on or after
  3 28 January 1, 1981, and before January 1, 1983, shall, for the
  3 29 purpose of this chapter only, be deemed satisfied when the
  3 30 following occur:
  3 31    (1)  When fifteen thousand dollars has been credited upon
  3 32 any judgment or judgments rendered in excess of that amount
  3 33 because of bodily injury to or death of one person as the
  3 34 result of any one accident.
  3 35    (2)  When, subject to the limit of fifteen thousand dollars
  4  1 because of bodily injury to or death of one person, the sum of
  4  2 thirty thousand dollars has been credited upon any judgment or
  4  3 judgments rendered in excess of that amount because of bodily
  4  4 injury to or death of two or more persons as the result of any
  4  5 one accident.
  4  6    (3)  When ten thousand dollars has been credited upon any
  4  7 judgment or judgments rendered in excess of that amount
  4  8 because of injury to or destruction of property of others as a
  4  9 result of any one accident.
  4 10    b. 1.  Judgments referred to in this chapter and rendered
  4 11 upon claims arising from accidents occurring on or after
  4 12 January 1, 1983 2004, shall, for the purpose of this chapter
  4 13 only, be deemed satisfied when the following occur:
  4 14    (1) a.  When twenty forty thousand dollars has been
  4 15 credited upon any judgment or judgments rendered in excess of
  4 16 that amount because of bodily injury to or death of one person
  4 17 as the result of any one accident.
  4 18    (2) b.  When, subject to the limit of twenty forty thousand
  4 19 dollars because of bodily injury to or death of one person,
  4 20 the sum of forty eighty thousand dollars has been credited
  4 21 upon any judgment or judgments rendered in excess of that
  4 22 amount because of bodily injury to or death of two or more
  4 23 persons as the result of any one accident.
  4 24    (3) c.  When fifteen thirty thousand dollars has been
  4 25 credited upon any judgment or judgments rendered in excess of
  4 26 that amount because of injury to or destruction of property of
  4 27 others as a result of any one accident.
  4 28    2.  Provided, however, Notwithstanding the provisions of
  4 29 subsection 1, payments made in settlements of any claims
  4 30 because of bodily injury, death, or property damage arising
  4 31 from a motor vehicle accident shall be credited in reduction
  4 32 of the amounts provided for in this section.
  4 33    Sec. 4.  Section 321A.21, subsection 2, Code 2003, is
  4 34 amended to read as follows:
  4 35    2.  Such owner's policy of liability insurance shall do
  5  1 both of the following:
  5  2    a.  Shall designate Designate by explicit description or by
  5  3 appropriate reference all motor vehicles with respect to which
  5  4 coverage is thereby to be granted; and.
  5  5    b.  Shall insure Insure the person named in the policy and
  5  6 any other person, as insured, using the motor vehicles with
  5  7 the express or implied permission of the named insured,
  5  8 against loss from the liability imposed by law for damages
  5  9 arising out of the ownership, maintenance, or use of the motor
  5 10 vehicles within the United States of America or the Dominion
  5 11 of Canada, subject to limits exclusive of interest and costs,
  5 12 with respect to each such motor vehicle, as follows:
  5 13    With respect to all accidents which that occur on or after
  5 14 January 1, 1981, and before January 1, 1983, fifteen thousand
  5 15 dollars because of bodily injury to or death of one person in
  5 16 any one accident and, subject to said limit for one person,
  5 17 thirty thousand dollars because of bodily injury to or death
  5 18 of two or more persons in any one accident, and ten thousand
  5 19 dollars because of injury to or destruction of property of
  5 20 others in any one accident; and with respect to all accidents
  5 21 which occur on or after January 1, 1983 2004, twenty forty
  5 22 thousand dollars because of bodily injury to or death of one
  5 23 person in any one accident and, subject to said limit for one
  5 24 person, forty eighty thousand dollars because of bodily injury
  5 25 to or death of two or more persons in any one accident, and
  5 26 fifteen thirty thousand dollars because of injury to or
  5 27 destruction of property of others in any one accident.
  5 28    c.  The amounts required by paragraph "b" shall be adjusted
  5 29 annually by the department by an amount equal to the
  5 30 percentage rate of change in the consumer price index for all
  5 31 urban consumers for the immediately preceding calendar year as
  5 32 published in the federal register by the federal department of
  5 33 labor, bureau of labor statistics.
  5 34    Sec. 5.  Section 321A.25, subsection 1, Code 2003, is
  5 35 amended to read as follows:
  6  1    1.  Proof of financial responsibility may be evidenced by
  6  2 the statement of the treasurer of state that the person named
  6  3 in the statement has filed with the treasurer of state fifty-
  6  4 five one hundred ten thousand dollars in the form of an
  6  5 endorsed certificate of deposit made payable jointly to the
  6  6 person and the treasurer of state.  The certificate of deposit
  6  7 shall be obtained from an Iowa financial institution in the
  6  8 amount of fifty-five one hundred ten thousand dollars plus any
  6  9 early withdrawal penalty fee.  The treasurer of state shall
  6 10 promptly notify the director of transportation of the name and
  6 11 address of the person to whom the statement has been issued.
  6 12 Upon receipt of the notification, the director of
  6 13 transportation shall issue to the person a security insurance
  6 14 card for each motor vehicle registered in this state by the
  6 15 person.  The security insurance card shall state the name and
  6 16 address of the person and the registration number of the motor
  6 17 vehicle for which the card is issued.  The treasurer of state
  6 18 shall not accept a certificate of deposit and issue a
  6 19 statement for it and the department shall not accept the
  6 20 statement unless accompanied by evidence that there are no
  6 21 unsatisfied judgments of any character against the person in
  6 22 the county where the person resides.
  6 23    Sec. 6.  EFFECTIVE AND APPLICABILITY DATES.  This Act takes
  6 24 effect January 1, 2004.  However, with respect to accidents
  6 25 occurring on or after January 1, 1981, but prior to January 1,
  6 26 2004, the amounts with respect to proof of financial
  6 27 responsibility as provided in chapter 321A, Code 2003, shall
  6 28 continue to apply.  
  6 29                           EXPLANATION
  6 30    This bill increases the minimum amount of insurance a
  6 31 driver is required to carry under Code chapter 321A as proof
  6 32 of financial responsibility.  The amounts are subject to
  6 33 automatic increase in the future, according to changes in the
  6 34 federal consumer price index.
  6 35    Code chapter 321A provides for alternate methods of giving
  7  1 proof of financial responsibility:  a certificate of insurance
  7  2 as provided in Code section 321A.19 or 321A.20, a bond as
  7  3 provided in Code section 321A.24, a certificate of deposit as
  7  4 provided in Code section 321A.25, and self-insurance under the
  7  5 provisions of Code section 321A.34.  The bill also increases
  7  6 the statutory requirements for bonds in Code section 321A.5
  7  7 and for the certificate of deposit in Code section 321A.25.  
  7  8 LSB 1277YC 80
  7  9 jj/cf/24
     

Text: HSB00202                          Text: HSB00204
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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