H.F. 2233 Section 1. Section 321A.1, subsection 11, Code 2014, is 1 amended to read as follows: 2 11. Proof of financial responsibility. Proof of ability 3 to respond in damages for liability, on account of accidents 4 occurring subsequent to the effective date of the proof, 5 arising out of the ownership, maintenance, or use of a motor 6 vehicle, in amounts as follows: With respect to accidents 7 occurring on or after January 1, 1981, and prior to January 8 1, 1983, the amount of fifteen thousand dollars because of 9 bodily injury to or death of one person in any one accident, 10 and, subject to the limit for one person, the amount of thirty 11 thousand dollars because of bodily injury to or death of 12 two or more persons in any one accident, and the amount of 13 ten thousand dollars because of injury to or destruction of 14 property of others in any one accident; and with respect to 15 accidents occurring on or after January 1, 1983, and prior 16 to January 1, 2015, the amount of twenty thousand dollars 17 because of bodily injury to or death of one person in any one 18 accident, and, subject to the limit for one person, the amount 19 of forty thousand dollars because of bodily injury to or death 20 of two or more persons in any one accident, and the amount of 21 fifteen thousand dollars because of injury to or destruction 22 of property of others in any one accident ; and with respect to 23 accidents occurring on or after January 1, 2015, the amount of 24 fifty thousand dollars because of bodily injury to or death of 25 one person in any one accident, and, subject to the limit for 26 one person, the amount of one hundred thousand dollars because 27 of bodily injury to or death of two or more persons in any one 28 accident, and the amount of thirty-seven thousand five hundred 29 dollars because of injury to or destruction of property of 30 others in any one accident . 31 Sec. 2. Section 321A.5, subsection 3, Code 2014, is amended 32 to read as follows: 33 3. A policy or bond is not effective under this section 34 unless issued by an insurance company or surety company 35 -1- LSB 5936YH (2) 85 rj/rj 1/ 6

H.F. 2233 authorized to do business in this state, except that if the 1 motor vehicle was not registered in this state, or was a motor 2 vehicle which was registered elsewhere than in this state at 3 the effective date of the policy or bond, or the most recent 4 renewal thereof, the policy or bond is not effective under this 5 section unless the insurance company or surety company if not 6 authorized to do business in this state executes a power of 7 attorney authorizing the department to accept service on its 8 behalf of notice or process in any action upon the policy or 9 bond arising out of the accident. However, with respect to 10 accidents occurring on or after January 1, 1981, and before 11 January 1, 1983, every such policy or bond is subject, if the 12 accident has resulted in bodily injury or death, to a limit, 13 exclusive of interest and costs, of not less than fifteen 14 thousand dollars because of bodily injury to or death of one 15 person in any one accident and, subject to the limit for one 16 person, to a limit of not less than thirty thousand dollars 17 because of bodily injury to or death of two or more persons in 18 any one accident, and, if the accident has resulted in injury 19 to or destruction of property, to a limit of not less than 20 ten thousand dollars because of injury to or destruction of 21 property of others in any one accident; and with respect to 22 accidents occurring on or after January 1, 1983, and before 23 January 1, 2015, every such policy or bond is subject, if the 24 accident has resulted in bodily injury or death, to a limit, 25 exclusive of interest and costs, of not less than twenty 26 thousand dollars because of bodily injury to or death of one 27 person in any one accident and, subject to the limit for one 28 person, to a limit of not less than forty thousand dollars 29 because of bodily injury to or death of two or more persons in 30 any one accident, and, if the accident has resulted in injury 31 to or destruction of property, to a limit of not less than 32 fifteen thousand dollars because of injury to or destruction 33 of property of others in any one accident ; and with respect 34 to accidents occurring on or after January 1, 2015, every 35 -2- LSB 5936YH (2) 85 rj/rj 2/ 6

H.F. 2233 such policy or bond is subject, if the accident has resulted 1 in bodily injury or death, to a limit, exclusive of interest 2 and costs, of not less than fifty thousand dollars because of 3 bodily injury to or death of one person in any one accident 4 and, subject to the limit for one person, to a limit of not less 5 than one hundred thousand dollars because of bodily injury to 6 or death of two or more persons in any one accident, and, if the 7 accident has resulted in injury to or destruction of property, 8 to a limit of not less than thirty-seven thousand five hundred 9 dollars because of injury to or destruction of property of 10 others in any one accident . 11 Sec. 3. Section 321A.15, subsection 1, paragraph b, 12 unnumbered paragraph 1, Code 2014, is amended to read as 13 follows: 14 Judgments referred to in this chapter and rendered upon 15 claims arising from accidents occurring on or after January 16 1, 1983, and before January 1, 2015, shall, for the purpose 17 of this chapter only, be deemed satisfied when the following 18 occur: 19 Sec. 4. Section 321A.15, subsection 1, Code 2014, is amended 20 by adding the following new paragraph: 21 NEW PARAGRAPH . c. Judgments referred to in this chapter 22 and rendered upon claims arising from accidents occurring on or 23 after January 1, 2015, shall, for the purpose of this chapter 24 only, be deemed satisfied when the following occur: 25 (1) When fifty thousand dollars has been credited upon any 26 judgment or judgments rendered in excess of that amount because 27 of bodily injury to or death of one person as the result of any 28 one accident. 29 (2) When, subject to the limit of fifty thousand dollars 30 because of bodily injury to or death of one person, the sum 31 of one hundred thousand dollars has been credited upon any 32 judgment or judgments rendered in excess of that amount because 33 of bodily injury to or death of two or more persons as the 34 result of any one accident. 35 -3- LSB 5936YH (2) 85 rj/rj 3/ 6

H.F. 2233 (3) When thirty-seven thousand five hundred dollars has 1 been credited upon any judgment or judgments rendered in excess 2 of that amount because of injury to or destruction of property 3 of others as a result of any one accident. 4 Sec. 5. Section 321A.21, subsection 2, paragraph b, Code 5 2014, is amended to read as follows: 6 b. Shall insure the person named in the policy and any other 7 person, as insured, using the motor vehicles with the express 8 or implied permission of the named insured, against loss from 9 the liability imposed by law for damages arising out of the 10 ownership, maintenance, or use of the motor vehicles within the 11 United States of America or the Dominion of Canada, subject to 12 limits exclusive of interest and costs, with respect to each 13 such motor vehicle, as follows: With respect to all accidents 14 which occur on or after January 1, 1981, and before January 15 1, 1983, fifteen thousand dollars because of bodily injury to 16 or death of one person in any one accident and, subject to 17 said limit for one person, thirty thousand dollars because of 18 bodily injury to or death of two or more persons in any one 19 accident, and ten thousand dollars because of injury to or 20 destruction of property of others in any one accident; and 21 with respect to all accidents which occur on or after January 22 1, 1983, and before January 1, 2015, twenty thousand dollars 23 because of bodily injury to or death of one person in any one 24 accident and, subject to said limit for one person, forty 25 thousand dollars because of bodily injury to or death of two or 26 more persons in any one accident, and fifteen thousand dollars 27 because of injury to or destruction of property of others in 28 any one accident ; and with respect to all accidents which occur 29 on or after January 1, 2015, fifty thousand dollars because of 30 bodily injury to or death of one person in any one accident 31 and, subject to said limit for one person, one hundred thousand 32 dollars because of bodily injury to or death of two or more 33 persons in any one accident, and thirty-seven thousand five 34 hundred dollars because of injury to or destruction of property 35 -4- LSB 5936YH (2) 85 rj/rj 4/ 6

H.F. 2233 of others in any one accident . 1 Sec. 6. Section 321A.25, subsection 1, Code 2014, is amended 2 to read as follows: 3 1. Proof of financial responsibility may be evidenced by 4 filing with the department fifty-five one hundred thirty-seven 5 thousand five hundred dollars in the form of a certificate of 6 deposit made payable to the department. The certificate of 7 deposit shall be obtained from an Iowa financial institution in 8 the amount of fifty-five one hundred thirty-seven thousand five 9 hundred dollars plus any early withdrawal penalty fee. Upon 10 receipt of the certificate of deposit, the department shall 11 issue to the person a security insurance card for each motor 12 vehicle registered in this state by the person. The security 13 insurance card shall state the name and address of the person 14 and the registration number of the motor vehicle for which the 15 card is issued. The department shall not accept a certificate 16 of deposit unless accompanied by evidence that there are no 17 unsatisfied judgments of any character against the person in 18 the county where the person resides. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill increases proof of responsibility and insurance 23 coverage requirements for damages resulting from motor vehicle 24 accidents. 25 Code section 321A.1 is amended to increase the amount of 26 insurance coverage that is required to satisfy the proof 27 of financial responsibility requirements for motor vehicle 28 ownership, maintenance, and use. The bill provides that with 29 respect to motor vehicle accidents that occur on or after 30 January 1, 2015, the amount of coverage required shall not be 31 less than $50,000 for bodily injury to or death of one person, 32 $100,000 for bodily injury to or death of two or more persons, 33 and $37,500 because of injury to or destruction of property of 34 others. 35 -5- LSB 5936YH (2) 85 rj/rj 5/ 6

H.F. 2233 The effect of the amendments to Code section 321A.1 is to 1 increase the minimum amount of coverage that must be offered in 2 a motor vehicle liability policy for injury or death resulting 3 from an uninsured or underinsured motor vehicle under Code 4 chapter 516A, as provided in Code section 321A.1. 5 Code section 321A.21 is amended to increase the amount of 6 insurance coverage that is required to be included in a motor 7 vehicle liability policy issued in this state to correspond 8 with the changes made in Code section 321A.1 concerning proof 9 of financial responsibility. 10 Corresponding amendments are also made in Code sections 11 321A.5, 321A.15, and 321A.25 to raise the required amounts of 12 coverages with respect to polices and bond given or posted as 13 security, judgments paid and proof given, and certificates of 14 deposit filed with the treasurer of state to meet the financial 15 responsibility requirements of Code chapter 321A. 16 -6- LSB 5936YH (2) 85 rj/rj 6/ 6