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