Senate File 213 - Introduced SENATE FILE 213 BY JOCHUM A BILL FOR An Act relating to automobile liability policy incentives for 1 persons who install a speed governing device on an insured 2 automobile. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1588XS (2) 90 th/ns

S.F. 213 Section 1. NEW SECTION . 516B.4 Freeze in premiums —— speed 1 governing device. 2 1. An insurance company transacting business in this state 3 that issues an automobile liability policy for an automobile 4 registered in this state shall not increase the premiums of, or 5 reduce services provided to, an insured customer who installs a 6 speed governing device on the automobile, as of the date the 7 customer provides proof of such installation to the insurance 8 company. 9 2. In the event of a crash or collision involving the 10 insured automobile, if it is discovered that the automobile 11 was not connected to a speed governing device at the time of 12 the crash or collision, the owner of the policy shall pay the 13 insurance company an amount equal to any increased premiums 14 that would have otherwise applied to the policy owner. 15 3. For purposes of this section, “speed governing device” 16 means a device that measures and regulates the speed of an 17 automobile on which it is installed and that prevents the 18 automobile from exceeding eighty miles per hour. 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 prohibits an insurance company transacting 23 business in Iowa from increasing the premiums of, or reducing 24 services provided to, an insured customer who installs a speed 25 governing device on an insured automobile and provides proof 26 of such installation to the insurance company. The premium 27 freeze goes into effect at the time the customer provides proof 28 of installation of the speed governing device to the insurance 29 company. 30 A person who receives a premium freeze under the bill must 31 pay the insurance company an amount equal to any increase in 32 premiums that otherwise would have applied to the customer if 33 the insured automobile is involved in a crash or collision and 34 it is discovered that the automobile was not connected to a 35 -1- LSB 1588XS (2) 90 th/ns 1/ 2

S.F. 213 speed governing device at the time of the crash or collision. 1 A “speed governing device” is defined in the bill to mean a 2 device that measures and regulates the speed of an automobile 3 on which it is installed and that prevents the automobile from 4 exceeding 80 miles per hour. 5 -2- LSB 1588XS (2) 90 th/ns 2/ 2