HOUSE FILE 2152

BY  ALONS

A BILL FOR

An Act relating to the cancellation or termination of financial liability coverage on a motor vehicle registered in this state.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  321.20C  Cancellation or termination of financial liability coverage by insured.
   An insurance company that provides financial liability coverage for a motor vehicle which is registered in this state shall not cancel or terminate such coverage at the request of the insured prior to the expiration date indicated on the financial liability card issued for the motor vehicle, unless the insured provides proof that the insured is no longer the owner of the motor vehicle.
EXPLANATION
   This bill prohibits an insurance company that provides financial liability coverage for a motor vehicle which is registered in this state from canceling or terminating such coverage at the request of the insured prior to the expiration date indicated on the financial liability card issued for the motor vehicle, unless the insured provides proof that the insured no longer owns the motor vehicle.