Senate Study Bill 3246 SENATE FILE BY (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON RIELLY) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act modifying uninsured and underinsured motor vehicle 2 liability coverage requirements. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5853SC 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 but not only the specific dollar amount of the coverage, or 1 34 reject the uninsured motor vehicle (hit=and=run motor vehicle) 1 35 coverage, or reject the underinsured motor vehicle coverage, 2 1 by written rejections signed by the named insured. If 2 2 rejection is made on a form or document furnished by an 2 3 insurance company or insurance producer, it shall be on a 2 4 separate sheet of paper which contains only the rejection and 2 5 information directly related to it. Such coverage need not be 2 6 provided in or supplemental to a renewal policy if the named 2 7 insured has rejected the coverage in connection with a policy 2 8 previously issued to the named insured by the same insurer. 2 9 EXPLANATION 2 10 This bill relates to uninsured or hit=and=run and 2 11 underinsured motor vehicle liability insurance coverage 2 12 requirements. The bill provides that limits in insurance 2 13 policies for such coverage must equal those of the bodily 2 14 injury or death coverage of the policy, up to an amount of 2 15 $500,000 for each coverage. Currently, uninsured or 2 16 hit=and=run and underinsured coverage limits are required only 2 17 in the amount required to show proof of financial 2 18 responsibility, which is $15,000 for the bodily injury or 2 19 death of one person and $40,000 for the bodily injury or death 2 20 of two or more persons. 2 21 The bill also allows an insured to reject all uninsured or 2 22 hit=and=run and underinsured coverage, but not only the 2 23 specific dollar amount of the coverage. 2 24 LSB 5853SC 82 2 25 av/nh/5