House File 550
HOUSE FILE
BY COMMITTEE ON LOCAL
GOVERNMENT
(SUCCESSOR TO HSB 203)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to proof of motor vehicle financial
2 responsibility, and providing effective and applicability
3 dates.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1277HV 80
6 jj/cf/24
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 Proof of ability to respond in damages for liability, on
1 5 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 twenty=five
1 18 thousand dollars because of bodily injury to or death of one
1 19 person in any one accident, and, subject to the limit for one
1 20 person, the amount of forty fifty thousand dollars because of
1 21 bodily injury to or death of two or more persons in any one
1 22 accident, and the amount of fifteen twenty=five thousand
1 23 dollars because of injury to or destruction of property of
1 24 others in any one accident.
1 25 Sec. 2. Section 321A.5, subsection 3, Code 2003, is
1 26 amended to read as follows:
1 27 3. a. (1) A policy or bond is not effective under this
1 28 section unless issued by an insurance company or surety
1 29 company authorized to do business in this state, except that.
1 30 However, if the motor vehicle was not registered in this
1 31 state, or was a motor vehicle which that was registered
1 32 elsewhere than in this state at the effective date of the
1 33 policy or bond, or the most recent renewal thereof, the policy
1 34 or bond is not effective under this section unless the
1 35 insurance company or surety company if not authorized to do
2 1 business in this state executes a power of attorney
2 2 authorizing the department to accept on its behalf service on
2 3 its behalf of notice or process in any action upon the policy
2 4 or bond arising out of the accident. However, with respect to
2 5 accidents occurring on or after January 1, 1981, and before
2 6 January 1, 1983, every such policy or bond is subject, if the
2 7 accident has resulted in bodily injury or death, to a limit,
2 8 exclusive of interest and costs, of not less than fifteen
2 9 thousand dollars because of bodily injury to or death of one
2 10 person in any one accident and, subject to the limit for one
2 11 person, to a limit of not less than thirty thousand dollars
2 12 because of bodily injury to or death of two or more persons in
2 13 any one accident, and, if the accident has resulted in injury
2 14 to or destruction of property, to a limit of not less than ten
2 15 thousand dollars because of injury to or destruction of
2 16 property of others in any one accident; and with
2 17 (2) With respect to accidents occurring on or after
2 18 January 1, 1983 2004, every such policy or bond is subject, if
2 19 to the following limits:
2 20 (a) If the accident has resulted in bodily injury or
2 21 death, to a limit, exclusive of interest and costs, of not
2 22 less than twenty twenty=five thousand dollars because of
2 23 bodily injury to or death of one person in any one accident
2 24 and, subject to the limit for one person, to a limit of not
2 25 less than forty fifty thousand dollars because of bodily
2 26 injury to or death of two or more persons in any one accident,
2 27 and, if.
2 28 (b) If the accident has resulted in injury to or
2 29 destruction of property, to a limit of not less than fifteen
2 30 twenty=five thousand dollars because of injury to or
2 31 destruction of property of others in any one accident.
2 32 b. Upon receipt of a report of a motor vehicle accident
2 33 and information that an automobile liability policy or surety
2 34 bond meeting the requirements of this chapter was in effect at
2 35 the time of this accident covering liability for damages
3 1 resulting from such accident, the department shall forward by
3 2 regular mail to the insurance carrier or surety carrier which
3 3 issued such policy or bond a copy of such information
3 4 concerning insurance or bond coverage, and it shall be
3 5 presumed that such policy or bond was in effect and provided
3 6 coverage to both the operator and the owner of the motor
3 7 vehicle involved in such accident unless the insurance carrier
3 8 or surety carrier shall notify the department otherwise within
3 9 fifteen days from the mailing of such information to such
3 10 carrier; provided, however, that in the event the department
3 11 shall later ascertain that erroneous information had been
3 12 given the department in respect to the insurance or bond
3 13 coverage of the operator or owner of a motor vehicle involved
3 14 in such accident, the department shall take such action as the
3 15 department is otherwise authorized to do under this chapter
3 16 within sixty days after the receipt by the department of
3 17 correct information with respect to such coverage.
3 18 Sec. 3. Section 321A.15, Code 2003, is amended to read as
3 19 follows:
3 20 321A.15 PAYMENTS SUFFICIENT TO SATISFY REQUIREMENTS.
3 21 1. a. Judgments referred to in this chapter and rendered
3 22 upon claims arising from accidents occurring on or after
3 23 January 1, 1981, and before January 1, 1983, shall, for the
3 24 purpose of this chapter only, be deemed satisfied when the
3 25 following occur:
3 26 (1) When fifteen thousand dollars has been credited upon
3 27 any judgment or judgments rendered in excess of that amount
3 28 because of bodily injury to or death of one person as the
3 29 result of any one accident.
3 30 (2) When, subject to the limit of fifteen thousand dollars
3 31 because of bodily injury to or death of one person, the sum of
3 32 thirty thousand dollars has been credited upon any judgment or
3 33 judgments rendered in excess of that amount because of bodily
3 34 injury to or death of two or more persons as the result of any
3 35 one accident.
4 1 (3) When ten thousand dollars has been credited upon any
4 2 judgment or judgments rendered in excess of that amount
4 3 because of injury to or destruction of property of others as a
4 4 result of any one accident.
4 5 b. 1. Judgments referred to in this chapter and rendered
4 6 upon claims arising from accidents occurring on or after
4 7 January 1, 1983 2004, shall, for the purpose of this chapter
4 8 only, be deemed satisfied when the following occur:
4 9 (1) a. When twenty twenty=five thousand dollars has been
4 10 credited upon any judgment or judgments rendered in excess of
4 11 that amount because of bodily injury to or death of one person
4 12 as the result of any one accident.
4 13 (2) b. When, subject to the limit of twenty twenty=five
4 14 thousand dollars because of bodily injury to or death of one
4 15 person, the sum of forty fifty thousand dollars has been
4 16 credited upon any judgment or judgments rendered in excess of
4 17 that amount because of bodily injury to or death of two or
4 18 more persons as the result of any one accident.
4 19 (3) c. When fifteen twenty=five thousand dollars has been
4 20 credited upon any judgment or judgments rendered in excess of
4 21 that amount because of injury to or destruction of property of
4 22 others as a result of any one accident.
4 23 2. Provided, however, Notwithstanding the provisions of
4 24 subsection 1, payments made in settlements of any claims
4 25 because of bodily injury, death, or property damage arising
4 26 from a motor vehicle accident shall be credited in reduction
4 27 of the amounts provided for in this section.
4 28 Sec. 4. Section 321A.21, subsection 2, Code 2003, is
4 29 amended to read as follows:
4 30 2. Such owner's policy of liability insurance shall do
4 31 both of the following:
4 32 a. Shall designate Designate by explicit description or by
4 33 appropriate reference all motor vehicles with respect to which
4 34 coverage is thereby to be granted; and.
4 35 b. Shall insure Insure the person named in the policy and
5 1 any other person, as insured, using the motor vehicles with
5 2 the express or implied permission of the named insured,
5 3 against loss from the liability imposed by law for damages
5 4 arising out of the ownership, maintenance, or use of the motor
5 5 vehicles within the United States of America or the Dominion
5 6 of Canada, subject to limits exclusive of interest and costs,
5 7 with respect to each such motor vehicle, as follows:
5 8 With respect to all accidents which that occur on or after
5 9 January 1, 1981, and before January 1, 1983, fifteen thousand
5 10 dollars because of bodily injury to or death of one person in
5 11 any one accident and, subject to said limit for one person,
5 12 thirty thousand dollars because of bodily injury to or death
5 13 of two or more persons in any one accident, and ten thousand
5 14 dollars because of injury to or destruction of property of
5 15 others in any one accident; and with respect to all accidents
5 16 which occur on or after January 1, 1983 2004, twenty twenty=
5 17 five thousand dollars because of bodily injury to or death of
5 18 one person in any one accident and, subject to said limit for
5 19 one person, forty fifty thousand dollars because of bodily
5 20 injury to or death of two or more persons in any one accident,
5 21 and fifteen twenty=five thousand dollars because of injury to
5 22 or destruction of property of others in any one accident.
5 23 Sec. 5. Section 321A.25, subsection 1, Code 2003, is
5 24 amended to read as follows:
5 25 1. Proof of financial responsibility may be evidenced by
5 26 the statement of the treasurer of state that the person named
5 27 in the statement has filed with the treasurer of state fifty=
5 28 five seventy thousand dollars in the form of an endorsed
5 29 certificate of deposit made payable jointly to the person and
5 30 the treasurer of state. The certificate of deposit shall be
5 31 obtained from an Iowa financial institution in the amount of
5 32 fifty=five seventy thousand dollars plus any early withdrawal
5 33 penalty fee. The treasurer of state shall promptly notify the
5 34 director of transportation of the name and address of the
5 35 person to whom the statement has been issued. Upon receipt of
6 1 the notification, the director of transportation shall issue
6 2 to the person a security insurance card for each motor vehicle
6 3 registered in this state by the person. The security
6 4 insurance card shall state the name and address of the person
6 5 and the registration number of the motor vehicle for which the
6 6 card is issued. The treasurer of state shall not accept a
6 7 certificate of deposit and issue a statement for it and the
6 8 department shall not accept the statement unless accompanied
6 9 by evidence that there are no unsatisfied judgments of any
6 10 character against the person in the county where the person
6 11 resides.
6 12 Sec. 6. EFFECTIVE AND APPLICABILITY DATES. This Act takes
6 13 effect January 1, 2004. However, with respect to accidents
6 14 occurring on or after January 1, 1981, but prior to January 1,
6 15 2004, the amounts with respect to proof of financial
6 16 responsibility as provided in chapter 321A, Code 2003, shall
6 17 continue to apply.
6 18 EXPLANATION
6 19 This bill increases the minimum amount of insurance a
6 20 driver is required to carry under Code chapter 321A as proof
6 21 of financial responsibility.
6 22 Code chapter 321A provides for alternate methods of giving
6 23 proof of financial responsibility: a certificate of insurance
6 24 as provided in Code section 321A.19 or 321A.20, a bond as
6 25 provided in Code section 321A.24, a certificate of deposit as
6 26 provided in Code section 321A.25, and self=insurance under the
6 27 provisions of Code section 321A.34. The bill also increases
6 28 the statutory requirements for bonds in Code section 321A.5
6 29 and for the certificate of deposit in Code section 321A.25.
6 30 LSB 1277HV 80
6 31 jj/cf/24