House File 473 - Introduced



                                       HOUSE FILE       
                                       BY  DE BOEF


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to suspension or revocation of motor vehicle
  2    registration for failure to maintain financial liability
  3    coverage.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2542HH 81
  6 av/sh/8

PAG LIN



  1  1    Section 1.  NEW SECTION.  Section 321.101B  FAILURE TO
  1  2 MAINTAIN FINANCIAL LIABILITY COVERAGE == SUSPENSION OR
  1  3 REVOCATION OF REGISTRATION.
  1  4    1.  If the financial liability coverage for a motor vehicle
  1  5 which is registered in this state is canceled or terminated
  1  6 effective prior to the expiration date indicated on the
  1  7 financial liability card issued for the motor vehicle, the
  1  8 insurance company that provided such coverage shall notify the
  1  9 department of such cancellation or termination.
  1 10    2.  The department is authorized to suspend or revoke the
  1 11 registration of a motor vehicle upon receiving notice of such
  1 12 cancellation or termination of financial liability coverage if
  1 13 the person to whom the registration is issued does not produce
  1 14 proof, as required by the department by rule, that other
  1 15 financial liability coverage is in effect for the motor
  1 16 vehicle.
  1 17                           EXPLANATION
  1 18    This bill allows for the suspension or revocation of a
  1 19 motor vehicle's registration if the owner of the motor vehicle
  1 20 does not maintain financial liability coverage.
  1 21    The bill provides that if financial liability coverage for
  1 22 a motor vehicle is canceled or terminated prior to the
  1 23 expiration date indicated on the financial liability coverage
  1 24 card issued for the vehicle, the insurance company that
  1 25 provided such coverage shall notify the state department of
  1 26 transportation of such cancellation or termination.  The bill
  1 27 also provides that the department is authorized to suspend or
  1 28 revoke the motor vehicle's registration upon receiving such
  1 29 notice if the person to whom the registration is issued does
  1 30 not produce proof, as required by the department by rule, that
  1 31 other financial liability coverage is in effect for the motor
  1 32 vehicle.
  1 33 LSB 2542HH 81
  1 34 av:nh/sh/8