SSB 1182 (LSB 1588XC (1) 90)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON KLIMESH)

A BILL FOR

An Act relating to automobile liability policy incentives for persons who install a speed governing device on an insured automobile.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  516B.4  Freeze in premiums —— speed governing device.
   1.  An insurance company transacting business in this state that issues an automobile liability policy for an automobile registered in this state shall not increase the premiums of, or reduce services provided to, an insured customer who installs a speed governing device on the automobile, as of the date the customer provides proof of such installation to the insurance company.
   2.  In the event of a crash or collision involving the insured automobile, if it is discovered that the automobile was not connected to a speed governing device at the time of the crash or collision, the owner of the policy shall pay the insurance company an amount equal to any increased premiums that would have otherwise applied to the policy owner.
   3.  For purposes of this section, “speed governing device” means a device that measures and regulates the speed of an automobile on which it is installed and that prevents the automobile from exceeding eighty miles per hour.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill prohibits an insurance company transacting business in Iowa from increasing the premiums of, or reducing services provided to, an insured customer who installs a speed governing device on an insured automobile and provides proof of such installation to the insurance company. The premium freeze goes into effect at the time the customer provides proof of installation of the speed governing device to the insurance company.
   A person who receives a premium freeze under the bill must pay the insurance company an amount equal to any increase in premiums that otherwise would have applied to the customer if the insured automobile is involved in a crash or collision and it is discovered that the automobile was not connected to a speed governing device at the time of the crash or collision.
   A “speed governing device” is defined in the bill to mean a device that measures and regulates the speed of an automobile on which it is installed and that prevents the automobile from exceeding 80 miles per hour.