Senate File 2346 - Reprinted SENATE FILE 2346 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 3102) (As Amended and Passed by the Senate February 24, 2010 ) A BILL FOR An Act relating to certain coverage provisions contained in 1 uninsured and underinsured motor vehicle insurance coverage. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 SF 2346 (4) 83 av/nh/jh
S.F. 2346 Section 1. Section 516A.2, subsection 3, Code 2009, is 1 amended by striking the subsection and inserting in lieu 2 thereof the following: 3 3. A policy to which this chapter applies shall not include 4 any type of provision that operates to reduce or eliminate 5 uninsured or underinsured motor vehicle coverage for the reason 6 that the person is injured due to the fault of a relative who is 7 a household member insured under the policy, unless the insurer 8 also makes available a policy with limits of uninsured or 9 underinsured motor vehicle coverage that are not subject to a 10 provision as described above. An insurer shall provide notice 11 directly to the named insured under a policy containing such a 12 provision that explains that the policy contains no coverage or 13 reduced coverage for injuries if a person is injured due to the 14 fault of a relative who is a household member insured under the 15 policy, and that informs the insured that coverage is available 16 which is not subject to such a provision. Such notice shall be 17 provided to the insured at the time of issuance of the policy 18 and at least annually thereafter. 19 Sec. 2. Section 516A.2, Code 2009, is amended by adding the 20 following new subsections: 21 NEW SUBSECTION . 4. An insurer providing uninsured and 22 underinsured motor vehicle coverage shall make available 23 the same limits of coverage that the insured purchased for 24 bodily injury liability coverage. However, the purchaser of 25 the uninsured and underinsured motor vehicle coverage is not 26 required to purchase those same limits of coverage. 27 NEW SUBSECTION . 5. This chapter shall not be construed 28 to prohibit an insurer from including in the policy an 29 antistacking provision based on multiple policies or multiple 30 vehicles, or both. If multiple policies are applicable to an 31 injured person, the injured person shall be entitled to recover 32 pursuant to the terms of the policies, but the available amount 33 of coverage shall not be more than the single highest limit of 34 any of the applicable policies. 35 -1- SF 2346 (4) 83 av/nh/jh 1/ 1