HF 2084 (LSB 5267YH (5) 90)

HOUSE FILE 2084

BY  LOHSE, YOUNG, OSMUNDSON, and BLOOMINGDALE

A BILL FOR

An Act relating to the minimum amounts required for motor vehicle financial responsibility, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321A.1, subsection 11, Code 2024, is amended to read as follows:
   11.  “Proof of financial responsibility” means proof of ability to respond in damages for liability, on account of accidents occurring subsequent to the effective date of the proof, arising out of the ownership, maintenance, or use of a motor vehicle, in the amount of twenty fifty thousand dollars because of bodily injury to or death of one person in any one accident, and, subject to the limit for one person, the amount of forty one hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident, and the amount of fifteen twenty-five thousand dollars because of injury to or destruction of property of others in any one accident.
    Sec. 2.  Section 321A.5, subsection 3, Code 2024, is amended to read as follows:
   3.  A policy or bond is not effective under this section unless issued by an insurance company or surety company authorized to do business in this state, except that if the motor vehicle was not registered in this state, or was a motor vehicle which was registered elsewhere than in this state at the effective date of the policy or bond, or the most recent renewal thereof, the policy or bond is not effective under this section unless the insurance company or surety company if not authorized to do business in this state executes a power of attorney authorizing the department to accept service on its behalf of notice or process in any action upon the policy or bond arising out of the accident. Every such policy or bond is subject, if the accident has resulted in bodily injury or death, to a limit, exclusive of interest and costs, of not less than twenty fifty thousand dollars because of bodily injury to or death of one person in any one accident and, subject to the limit for one person, to a limit of not less than forty one hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident, and, if the accident has resulted in injury to or destruction of property, to a limit of not less than fifteen twenty-five thousand dollars because of injury to or destruction of property of others in any one accident.
    Sec. 3.  Section 321A.15, subsection 1, paragraphs a, b, and c, Code 2024, are amended to read as follows:
   a.  When twenty fifty thousand dollars has been credited upon any judgment or judgments rendered in excess of that amount because of bodily injury to or death of one person as the result of any one accident.
   b.  When, subject to the limit of twenty fifty thousand dollars because of bodily injury to or death of one person, the sum of forty one hundred thousand dollars has been credited upon any judgment or judgments rendered in excess of that amount because of bodily injury to or death of two or more persons as the result of any one accident.
   c.  When fifteen twenty-five thousand dollars has been credited upon any judgment or judgments rendered in excess of that amount because of injury to or destruction of property of others as a result of any one accident.
    Sec. 4.  Section 321A.21, subsection 2, paragraph b, Code 2024, is amended to read as follows:
   b.  Shall insure the person named in the policy and any other person, as insured, using the motor vehicles with the express or implied permission of the named insured, against loss from the liability imposed by law for damages arising out of the ownership, maintenance, or use of the motor vehicles within the United States of America or the Dominion of Canada, subject to limits exclusive of interest and costs, with respect to each such motor vehicle, twenty fifty thousand dollars because of bodily injury to or death of one person in any one accident and, subject to said limit for one person, forty one hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident, and fifteen twenty-five thousand dollars because of injury to or destruction of property of others in any one accident.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill increases the minimum amounts of coverage required for motor vehicle financial responsibility for bodily injury or death of one person ($20,000 to $50,000), bodily injury or death of two or more persons ($40,000 to $100,000), and property damage ($15,000 to $25,000). Such amounts match the requirements under current law for transportation network company drivers (Code chapter 321N). The bill makes corresponding changes to provisions regarding associated policies, bonds, and judgments.
   A person who violates a provision of Code chapter 321A which does not otherwise provide a penalty commits a serious misdemeanor, punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560.
   In addition, Code section 321.20B prohibits a person from driving a motor vehicle unless financial liability coverage is in effect for the vehicle and the person carries proof of such coverage. By operation of law, the associated coverage amounts are increased by the bill. A person who violates Code section 321.20B commits a simple misdemeanor punishable by a $325 scheduled fine. If a violation is discovered in connection with a motor vehicle accident, the fine increases to $645. The person is also subject to possible removal of the vehicle’s registration plates and registration receipt, and impoundment of the vehicle.