Senate File 152 - Introduced SENATE FILE BY RAGAN and KREIMAN (COMPANION TO LSB 1315HH BY KUHN) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act allowing certain associations to qualify as self=insurers 2 for purposes of Iowa's motor vehicle financial responsibility 3 laws. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1315SS 82 6 av/gg/14 PAG LIN 1 1 Section 1. Section 321.20B, subsection 2, paragraph b, 1 2 Code 2007, is amended to read as follows: 1 3 b. The insurance division and the department, as 1 4 appropriate, shall adopt rules regarding the contents of a 1 5 financial liability coverage card to be issued pursuant to 1 6 this section. 1 7 (1) Notwithstanding the provisions of this section, a 1 8 fleet owner who is issued a certificate of self=insurance 1 9 pursuant to section 321A.34, subsection 1, is not required to 1 10 maintain in each vehicle a financial liability coverage card 1 11 with the individual registration number or the vehicle 1 12 identification number of the vehicle included on the card. 1 13 Such fleet owner shall be required to maintain a financial 1 14 liability coverage card in each vehicle in the fleet including 1 15 information deemed appropriate by the commissioner of 1 16 insurance or the director, as applicable. 1 17 (2) An association of individual members that is issued a 1 18 certificate of self=insurance pursuant to section 321A.34, 1 19 subsection 2, is required to maintain in each vehicle of an 1 20 individual member a financial liability coverage card that 1 21 complies with the provisions of this section and in addition 1 22 contains information relating to the association and the 1 23 association's certificate of self=insurance as is deemed 1 24 appropriate by the commissioner of insurance or the director. 1 25 Sec. 2. Section 321A.34, subsections 1 and 2, Code 2007, 1 26 are amended to read as follows: 1 27 1. a. Any person in whose name more than twenty=five 1 28 motor vehicles are registered may qualify as a self=insurer by 1 29 obtaining a certificate of self=insurance issued by the 1 30 department as provided insubsection 2 of this section1 31 paragraph "b". 1 322.b. The department may, upon the application of such a 1 33 person, issue a certificate of self=insurance if the 1 34 department is satisfied that the person has and will continue 1 35 to have the ability to pay judgments obtained against the 2 1 person for damages arising out of the ownership, maintenance, 2 2 or use of any vehicle owned by the person. A person issued a 2 3 certificate of self=insurance pursuant to thissection2 4 subsection shall maintain a financial liability coverage card 2 5 as provided in section 321.20B, subsection 2, paragraph "b", 2 6 subparagraph (1). 2 7 2. a. Any association of individual members that is a 2 8 legal entity with the power to sue and be sued in its own name 2 9 and which is composed of individual members in whose names a 2 10 total of more than twenty=five motor vehicles are registered, 2 11 may qualify as a self=insurer by obtaining a certificate of 2 12 insurance issued by the department as provided in paragraph 2 13 "b". 2 14 b. The department may, upon the application of such an 2 15 association, issue a certificate of self=insurance if the 2 16 department is satisfied that the association has and will 2 17 continue to have the ability to pay judgments obtained against 2 18 the association or against an individual member of the 2 19 association for damages arising out of the ownership, 2 20 maintenance, or use of any vehicle owned by an individual 2 21 member of the association. An association issued a 2 22 certificate of self=insurance pursuant to this paragraph shall 2 23 maintain a financial liability coverage card as provided in 2 24 section 321.20B, subsection 2, paragraph "b", subparagraph 2 25 (2). 2 26 EXPLANATION 2 27 This bill allows certain associations to qualify as 2 28 self=insurers for purposes of Iowa's motor vehicle financial 2 29 responsibility laws. 2 30 Code section 321.20B is amended to provide that an 2 31 association of individual members that is issued a certificate 2 32 of self=insurance pursuant to Code section 321A.34, subsection 2 33 2, is required to maintain in each vehicle of an individual 2 34 member a financial liability card that complies with the 2 35 provisions of the section and in addition contains information 3 1 relating to the association and the association's certificate 3 2 of self=insurance as deemed appropriate by the commissioner of 3 3 insurance or the director of the department of transportation. 3 4 Code section 321.34 is amended by adding a new subsection 3 5 that allows an association of individual members that is a 3 6 legal entity with the power to sue and be sued in its own name 3 7 and which is composed of individual members in whose names a 3 8 total of more than 25 motor vehicles are registered, to 3 9 qualify as a self=insurer by obtaining a certificate of 3 10 self=insurance issued by the department of transportation. 3 11 The bill further provides that the department shall issue 3 12 such a certificate of self=insurance if the department is 3 13 satisfied that the association has and will continue to have 3 14 the ability to pay judgments obtained against the association 3 15 or against an individual member of the association for damages 3 16 arising out of the ownership, maintenance, or use of any 3 17 vehicle owned by an individual member of the association. An 3 18 association that is issued a certificate of self=insurance is 3 19 required to maintain a financial liability coverage card as 3 20 described above. 3 21 LSB 1315SS 82 3 22 av:nh/gg/14