1. Notwithstanding chapter 321A, which requires certain persons to maintain proof of financial responsibility, a person shall not drive a motor vehicle which is registered in this state on the highways of this state unless financial liability coverage, as defined in section 321.1, subsection 24A, is in effect for the motor vehicle and unless the driver has in the motor vehicle the proof of financial liability coverage card issued for the motor vehicle.
This subsection does not apply to the operator of a motor vehicle owned or leased to the United States, this state, or any political subdivision of this state or to a motor vehicle which is subject to section 325.26*, 327.15*, 327A.5*, or 327B.6.
2. a. An insurance company transacting business in this state shall issue to its insured owners of motor vehicles registered in this state a financial liability coverage card for each registered motor vehicle insured. Each financial liability coverage card shall identify the registration number of the motor vehicle insured and shall indicate the expiration date of the applicable insurance coverage. The financial liability coverage card shall also contain the name and address of the insurer, the name of the insured, the type of coverage provided, and an emergency telephone number of the insurer.
b. The insurance division and the department, as appropriate, shall adopt rules regarding the contents of a financial liability coverage card to be issued pursuant to this section. Notwithstanding the provisions of this section, a fleet owner shall not be required to maintain in each vehicle a financial liability coverage card with the individual registration number of the vehicle included on the card. Such fleet owner shall be required to maintain a financial liability coverage card in each vehicle in the fleet including information deemed appropriate by the commissioner of insurance or the director, as applicable.
3. If the financial liability coverage for a motor vehicle which is registered in this state is canceled or terminated effective prior to the expiration date indicated on the financial liability coverage card issued for the vehicle, the person to whom the financial liability coverage card was issued shall destroy the card.
4. If a peace officer stops a motor vehicle and the driver is unable to provide proof of financial liability coverage, the peace officer shall do one of the following:
a. Issue a warning memorandum to the driver.
b. Issue a citation and remove the motor vehicle's license plates and registration from the motor vehicle which has been operated on the highways of this state without financial liability coverage being in effect for the motor vehicle. Upon removing the license plates and registration the peace officer shall forward the plates to the county treasurer of the county in which the plates were issued. An owner or driver of a motor vehicle who is charged with a violation of subsection 1 and whose license plates and registration have been removed is subject to the following:
(1) An owner or driver who produces to the county treasurer, within thirty days of the time the person's license plates and registration are removed, proof that financial liability coverage was in effect for the motor vehicle at the time the person was stopped and cited, shall be assessed a fifteen dollar administrative fee by the county treasurer who shall return the license plates and registration to the person after payment of the fee.
(2) An owner or driver who is unable to show that financial liability coverage was in effect for the motor vehicle at the time the person was stopped and cited, and signs an admission of violation on the citation, may do either of the following:
(a) Sign an admission of violation on the citation and remit to the clerk of court a scheduled fine of two hundred fifty dollars. Upon payment of the fine, payment of a fifteen dollar administrative fee to the county treasurer, and providing proof of financial liability coverage to the county treasurer, the treasurer shall issue new license plates and registration to the person.
(b) Request an appearance before the court on the matter. If the matter goes before the court, and the owner or driver is found guilty of a violation of subsection 1, the court may impose a fine of two hundred fifty dollars, or the court may order the person to perform unpaid community service instead of the fine. Upon the payment of the fine or the entry of the order for unpaid community service, the county treasurer shall issue new license plates and registration to the person upon the person providing proof of financial liability coverage and paying a fifteen dollar administrative fee to the county treasurer.
(3) An owner or driver who fails to provide to the county treasurer, within thirty days of the time the person's registration plates are removed, proof that financial liability coverage was in effect for the motor vehicle at the time the person was stopped and cited, and does not sign an admission of violation on the citation, shall not have the person's license plates or registration returned.
c. Issue a citation and impound the motor vehicle. A vehicle which is impounded may be claimed by a person if the owner provides proof of financial liability coverage and pays any applicable fine and the costs of towing and storage for the motor vehicle. If the motor vehicle is not claimed within thirty days after impoundment, the motor vehicle may be treated as an abandoned vehicle pursuant to section 321.89.
5. The department shall establish by rule standardized criteria for determining whether to impound a vehicle or remove the license plates and registration under subsection 4. The department shall provide a copy of such criteria to local jurisdictions for use in developing local standardized criteria for such actions when taken by a peace officer associated with a local law enforcement agency.
6. This section applies to a motor vehicle subject to registration under this chapter other than a motor vehicle identified in section 321.18, subsections 1 through 6, and subsection 8.
7. This section does not apply to a motor vehicle owned by a motor vehicle dealer licensed pursuant to chapter 322.
8. The director of transportation and the commissioner of insurance shall adopt rules pursuant to chapter 17A to administer this section.
97 Acts, ch 139, §2
Referred to in § 321.1, 321.54, 321.55, 321.57, 321A.34, 326.25, 331.557, 805.8(2ah)
*Chapters 325, 327, and 327A repealed by 97 Acts, ch 104, §60, 61, effective January 1, 1998; corrective legislation is pending ~ISection is effective January 1, 1998, contingent upon an appropriation under section 25B.2, subsection 3; 97 Acts, ch 139, §17, 18 ~ISee § 805.8(2)(ah) for scheduled fine if violation of subsection 1 is in connection with accident
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