S.F. _____ Section 1. Section 321.1, subsection 24B, paragraph a, Code 1 2019, is amended to read as follows: 2 a. An owner’s policy of liability insurance which is issued 3 by an insurance carrier authorized to do business in Iowa to or 4 for the benefit of the person named in the policy as insured, 5 and insuring the person named as insured and any person using 6 an insured motor vehicle with the express or implied permission 7 of the named insured against loss from liability imposed by law 8 for damages arising out of the ownership, maintenance, or use 9 of an insured motor vehicle within the United States of America 10 or Canada, but subject to minimum limits, exclusive of interest 11 and costs, in the amounts specified in section 321A.21 321A.1, 12 subsection 11, or specified in another provision of the Code, 13 whichever is greater. 14 Sec. 2. Section 321A.1, subsection 11, Code 2019, is amended 15 to read as follows: 16 11. “Proof of financial responsibility” means proof of 17 ability to respond in damages for liability, on account of 18 accidents occurring subsequent to the effective date of the 19 proof, arising out of the ownership, maintenance, or use of a 20 motor vehicle, in amounts as follows: 21 a. With respect to accidents occurring on or after January 22 1, 1981, and prior to January 1, 1983, the amount of fifteen 23 thousand dollars because of bodily injury to or death of one 24 person in any one accident, and, subject to the limit for one 25 person, the amount of thirty thousand dollars because of bodily 26 injury to or death of two or more persons in any one accident, 27 and the amount of ten thousand dollars because of injury to or 28 destruction of property of others in any one accident. 29 b. With respect to accidents occurring on or after January 30 1, 1983, prior to January 1, 2020, the amount of twenty 31 thousand dollars because of bodily injury to or death of one 32 person in any one accident, and, subject to the limit for one 33 person, the amount of forty thousand dollars because of bodily 34 injury to or death of two or more persons in any one accident, 35 -1- LSB 1302XC (4) 88 ns/rh 1/ 4

S.F. _____ and the amount of fifteen thousand dollars because of injury to 1 or destruction of property of others in any one accident. 2 b. With respect to accidents occurring on or after January 3 1, 2020, the amount of thirty thousand dollars because of 4 bodily injury to or death of one person in any one accident, 5 and, subject to the limit for one person, the amount of sixty 6 thousand dollars because of bodily injury to or death of 7 two or more persons in any one accident, and the amount of 8 twenty-two thousand five hundred dollars because of injury to 9 or destruction of property of others in any one accident. 10 Sec. 3. Section 321A.5, subsection 3, Code 2019, is amended 11 to read as follows: 12 3. A policy or bond is not effective under this section 13 unless issued by an insurance company or surety company 14 authorized to do business in this state, except that if the 15 motor vehicle was not registered in this state, or was a motor 16 vehicle which was registered elsewhere than in this state at 17 the effective date of the policy or bond, or the most recent 18 renewal thereof, the policy or bond is not effective under this 19 section unless the insurance company or surety company if not 20 authorized to do business in this state executes a power of 21 attorney authorizing the department to accept service on its 22 behalf of notice or process in any action upon the policy or 23 bond arising out of the accident. However, with respect to 24 accidents occurring on or after January 1, 1981, and before 25 January 1, 1983, every such policy or bond is subject, if the 26 accident has resulted in bodily injury or death, to a limit, 27 exclusive of interest and costs, of not less than fifteen 28 thousand dollars because of bodily injury to or death of one 29 person in any one accident and, subject to the limit for one 30 person, to a limit of not less than thirty thousand dollars 31 because of bodily injury to or death of two or more persons in 32 any one accident, and, if the accident has resulted in injury 33 to or destruction of property, to a limit of not less than 34 ten thousand dollars because of injury to or destruction of 35 -2- LSB 1302XC (4) 88 ns/rh 2/ 4

S.F. _____ property of others in any one accident; and with respect to 1 accidents occurring on or after January 1, 1983, every such 2 policy or bond is subject, if the accident has resulted in 3 bodily injury or death, to a limit, exclusive of interest and 4 costs, of not less than twenty thousand dollars because of 5 bodily injury to or death of one person in any one accident 6 and, subject to the limit for one person, to a limit of not 7 less than forty thousand dollars because of bodily injury to or 8 death of two or more persons in any one accident, and, if the 9 accident has resulted in injury to or destruction of property, 10 to a limit of not less than fifteen thousand dollars because 11 of injury to or destruction of property of others in any one 12 accident equal to the amounts specified in section 321A.1, 13 subsection 11, for the period in which the accident occurred . 14 Sec. 4. Section 321A.21, subsection 2, paragraph b, Code 15 2019, is amended to read as follows: 16 b. Shall insure the person named in the policy and any other 17 person, as insured, using the motor vehicles with the express 18 or implied permission of the named insured, against loss from 19 the liability imposed by law for damages arising out of the 20 ownership, maintenance, or use of the motor vehicles within the 21 United States of America or the Dominion of Canada, subject to 22 limits exclusive of interest and costs, with respect to each 23 such motor vehicle, as follows: With respect to all accidents 24 which occur on or after January 1, 1981, and before January 1, 25 1983, fifteen thousand dollars because of bodily injury to or 26 death of one person in any one accident and, subject to said 27 limit for one person, thirty thousand dollars because of bodily 28 injury to or death of two or more persons in any one accident, 29 and ten thousand dollars because of injury to or destruction 30 of property of others in any one accident; and with respect to 31 all accidents which occur on or after January 1, 1983, twenty 32 thousand dollars because of bodily injury to or death of one 33 person in any one accident and, subject to said limit for 34 one person, forty thousand dollars because of bodily injury 35 -3- LSB 1302XC (4) 88 ns/rh 3/ 4

S.F. _____ to or death of two or more persons in any one accident, and 1 fifteen thousand dollars because of injury to or destruction 2 of property of others in any one accident equal to the amounts 3 specified in section 321A.1, subsection 11, for accidents 4 occurring during the period covered by the policy . 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 Current law requires proof of motor vehicle financial 9 responsibility to cover liability for damages arising out of 10 the ownership, maintenance, or use of a motor vehicle in the 11 amounts of $20,000 because of bodily injury to or death of one 12 person in any one accident, and, subject to the limit for one 13 person, $40,000 because of bodily injury to or death of two or 14 more persons in any one accident, and $15,000 because of injury 15 to or destruction of property of others in any one accident. 16 This bill increases the required amounts for accidents 17 occurring on or after January 1, 2020, to $30,000 because of 18 bodily injury to or death of one person in any one accident, 19 and, subject to the limit for one person, $60,000 because of 20 bodily injury to or death of two or more persons in any one 21 accident, and $22,500 because of injury to or destruction of 22 property of others in any one accident. 23 The bill strikes similar provisions in Code section 321A.5 24 (security required following accident) and Code section 321A.21 25 (“motor vehicle liability policy” defined), and adds references 26 to the amounts specified in Code section 321A.1. The bill 27 makes a corresponding reference change in the definition of 28 “financial liability coverage” under Code section 321.1. 29 By operation of law, the amounts required for a surety bond 30 under Code section 321A.24 (bond as proof) and for uninsured, 31 underinsured, and hit-and-run coverage under Code chapter 516A 32 (uninsured, underinsured, or hit-and-run motorists) are also 33 increased by the bill. 34 -4- LSB 1302XC (4) 88 ns/rh 4/ 4