Senate File 2102 - Introduced SENATE FILE BY OLIVE Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to uninsured and underinsured motor vehicle 2 liability coverage requirements. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5853XS 82 5 av/nh/5 PAG LIN 1 1 Section 1. Section 516A.1, Code 2007, is amended to read 1 2 as follows: 1 3 516A.1 COVERAGE INCLUDED IN EVERY LIABILITY POLICY == 1 4 REJECTION BY INSURED. 1 5 No automobile liability or motor vehicle liability 1 6 insurance policy insuring against liability for bodily injury 1 7 or death arising out of the ownership, maintenance, or use of 1 8 a motor vehicle shall be delivered or issued for delivery in 1 9 this state with respect to any motor vehicle registered or 1 10 principally garaged in this state, unless coverage is provided 1 11 in such policy or supplemental thereto, for the protection of 1 12 persons insured under such policy who are legally entitled to 1 13 recover damages from the owner or operator of an uninsured 1 14 motor vehicle or a hit=and=run motor vehicle or an 1 15 underinsured motor vehicle because of bodily injury, sickness, 1 16 or disease, including death resulting therefrom, caused by 1 17 accident and arising out of the ownership, maintenance, or use 1 18 of such uninsured or underinsured motor vehicle, or arising 1 19 out of physical contact of such hit=and=run motor vehicle with 1 20 the person insured or with a motor vehicle which the person 1 21 insured is occupying at the time of the accident. Both the 1 22 uninsured motor vehicle or hit=and=run motor vehicle coverage, 1 23 and the underinsured motor vehicle coverage shall include 1 24 limits for bodily injury or death at least equal to those 1 25stated in section 321A.1, subsection 11of the bodily injury 1 26 or death coverage of the insurance policy. However, neither 1 27 the uninsured motor vehicle or hit=and=run motor vehicle 1 28 coverage nor the underinsured motor vehicle coverage is 1 29 required to exceed five hundred thousand dollars. The form 1 30 and provisions of such coverage shall be examined and approved 1 31 by the commissioner of insurance. 1 32 However, the named insured may reject all of such coverage, 1 33 including but not limited to the specific dollar amount of the 1 34 coverage, or reject the uninsured motor vehicle (hit=and=run 1 35 motor vehicle) coverage, or reject the underinsured motor 2 1 vehicle coverage, by written rejections signed by the named 2 2 insured. If rejection is made on a form or document furnished 2 3 by an insurance company or insurance producer, it shall be on 2 4 a separate sheet of paper which contains only the rejection 2 5 and information directly related to it. Such coverage need 2 6 not be provided in or supplemental to a renewal policy if the 2 7 named insured has rejected the coverage in connection with a 2 8 policy previously issued to the named insured by the same 2 9 insurer. 2 10 EXPLANATION 2 11 This bill relates to uninsured or hit=and=run and 2 12 underinsured motor vehicle liability insurance coverage 2 13 requirements. The bill provides that limits in insurance 2 14 policies for such coverage must equal those of the bodily 2 15 injury or death coverage of the policy, up to an amount of 2 16 $500,000 for each coverage. Currently, uninsured or 2 17 hit=and=run and underinsured coverage limits are required only 2 18 in the amount required to show proof of financial 2 19 responsibility, which is $15,000 for the bodily injury or 2 20 death of one person and $40,000 for the bodily injury or death 2 21 of two or more persons. 2 22 The bill also allows an insured to reject all uninsured or 2 23 hit=and=run and underinsured coverage, including but not 2 24 limited to the specific dollar amount of the coverage. 2 25 LSB 5853XS 82 2 26 av/nh/5