HF 129 (LSB 1163YH (4) 91)

HOUSE FILE 129

BY  BERGAN

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 2025, 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 fifty thousand dollars because of injury to or destruction of property of others in any one accident.
    Sec. 2.  Section 321A.5, subsection 3, Code 2025, 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 fifty 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 2025, 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 fifty 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 2025, 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 fifty thousand dollars because of injury to or destruction of property of others in any one accident.
    Sec. 5.  Section 321F.1, subsection 3, paragraph a, Code 2025, is amended to read as follows:
   a.  A certificate of an insurance carrier certifying that the lessor under a lease is insured against liability for a judgment in the amount of fifty thousand dollars for personal injury to one individual and in an aggregate amount of one hundred thousand dollars for personal injuries to all individuals involved in a single accident, and in the amount of ten fifty thousand dollars for property damage, resulting from any such single accident in which a motor vehicle under a lease is involved; or
    Sec. 6.  Section 321N.4, subsection 2, paragraph a, Code 2025, is amended to read as follows:
   a.  While a participating transportation network company driver is logged on to a transportation network company’s digital network and is available to receive requests for a prearranged ride, but is not engaged in a prearranged ride, primary automobile insurance maintained pursuant to paragraph “c” shall cover the driver in the amount of at least fifty thousand dollars because of bodily injury to or death of one person in any one accident, the amount of at least one hundred thousand dollars because of bodily injury to or death of two or more persons in any one accident, and the amount of at least twenty-five fifty 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 under Code chapter 321A 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 $50,000). The bill makes corresponding changes to provisions regarding associated policies, bonds, and judgments.
   The bill also increases the minimum amount of coverage required for property damage for evidence of financial responsibility under Code chapter 321F (leasing and renting of vehicles) ($10,000 to $50,000) and for drivers while not engaged in a prearranged ride under Code chapter 321N (transportation network companies) ($25,000 to $50,000). Under current law, the minimum amount of coverage required under those circumstances is already $50,000 and $100,000 for bodily injury or death of one person and two or more persons, respectively.
   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, including a transportation network company driver, 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.
   A person who violates a provision of Code chapter 321F is guilty of a simple misdemeanor. A simple misdemeanor is punishable by confinement for no more than 30 days and a fine of at least $105 but not more than $855.