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Senate Study Bill 1001 - IntroducedA Bill ForAn Act 1relating to financial responsibility requirements for
2liability arising out of the ownership, maintenance, or use
3of a motor vehicle.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 321.1, subsection 24B, paragraph a, Code
22019, is amended to read as follows:
3a. An owner’s policy of liability insurance which is issued
4by an insurance carrier authorized to do business in Iowa to or
5for the benefit of the person named in the policy as insured,
6and insuring the person named as insured and any person using
7an insured motor vehicle with the express or implied permission
8of the named insured against loss from liability imposed by law
9for damages arising out of the ownership, maintenance, or use
10of an insured motor vehicle within the United States of America
11or Canada, but subject to minimum limits, exclusive of interest
12and costs, in the amounts specified in section 321A.21 321A.1,
13subsection 11, or specified in another provision of the Code,
14whichever is greater.
15 Sec. 2. Section 321A.1, subsection 11, Code 2019, is amended
16to read as follows:
1711. “Proof of financial responsibility” means proof of
18ability to respond in damages for liability, on account of
19accidents occurring subsequent to the effective date of the
20proof, arising out of the ownership, maintenance, or use of a
21motor vehicle, in amounts as follows:
22a. With respect to accidents occurring on or after January
231, 1981, and prior to January 1, 1983, the amount of fifteen
24thousand dollars because of bodily injury to or death of one
25person in any one accident, and, subject to the limit for one
26person, the amount of thirty thousand dollars because of bodily
27injury to or death of two or more persons in any one accident,
28and the amount of ten thousand dollars because of injury to or
29destruction of property of others in any one accident.
30b. Withrespect to accidents occurring on or after January
311, 1983, prior to January 1, 2020, the amount of twenty
32thousand dollars because of bodily injury to or death of one
33person in any one accident, and, subject to the limit for one
34person, the amount of forty thousand dollars because of bodily
35injury to or death of two or more persons in any one accident,
-1-1and the amount of fifteen thousand dollars because of injury to
2or destruction of property of others in any one accident.
3b. With respect to accidents occurring on or after January
41, 2020, the amount of thirty thousand dollars because of
5bodily injury to or death of one person in any one accident,
6and, subject to the limit for one person, the amount of sixty
7thousand dollars because of bodily injury to or death of
8two or more persons in any one accident, and the amount of
9twenty-two thousand five hundred dollars because of injury to
10or destruction of property of others in any one accident.
11 Sec. 3. Section 321A.5, subsection 3, Code 2019, is amended
12to read as follows:
133. A policy or bond is not effective under this section
14unless issued by an insurance company or surety company
15authorized to do business in this state, except that if the
16motor vehicle was not registered in this state, or was a motor
17vehicle which was registered elsewhere than in this state at
18the effective date of the policy or bond, or the most recent
19renewal thereof, the policy or bond is not effective under this
20section unless the insurance company or surety company if not
21authorized to do business in this state executes a power of
22attorney authorizing the department to accept service on its
23behalf of notice or process in any action upon the policy or
24bond arising out of the accident. However, with respect to
25accidents occurring on or after January 1, 1981, and before
26January 1, 1983, every such policy or bond is subject, if the
27accident has resulted in bodily injury or death, to a limit,
28exclusive of interest and costs, of not less than fifteen
29thousand dollars because of bodily injury to or death of one
30person in any one accident and, subject to the limit for one
31person, to a limit of not less than thirty thousand dollars
32because of bodily injury to or death of two or more persons in
33any one accident, and, if the accident has resulted in injury
34to or destruction of property, to a limit of not less than
35ten thousand dollars because of injury to or destruction of
-2-1property of others in any one accident; and with respect to
2accidents occurring on or after January 1, 1983, every such
3policy or bond is subject, if the accident has resulted in
4bodily injury or death, to a limit, exclusive of interest and
5costs, of not less than twenty thousand dollars because of
6bodily injury to or death of one person in any one accident
7and, subject to the limit for one person, to a limit of not
8less than forty thousand dollars because of bodily injury to or
9death of two or more persons in any one accident, and, if the
10accident has resulted in injury to or destruction of property,
11to a limit of not less than fifteen thousand dollars because
12of injury to or destruction of property of others in any one
13accident equal to the amounts specified in section 321A.1,
14subsection 11, for the period in which the accident occurred.
15 Sec. 4. Section 321A.21, subsection 2, paragraph b, Code
162019, is amended to read as follows:
17b. Shall insure the person named in the policy and any other
18person, as insured, using the motor vehicles with the express
19or implied permission of the named insured, against loss from
20the liability imposed by law for damages arising out of the
21ownership, maintenance, or use of the motor vehicles within the
22United States of America or the Dominion of Canada, subject to
23limits exclusive of interest and costs, with respect to each
24such motor vehicle, as follows: With respect to all accidents
25which occur on or after January 1, 1981, and before January 1,
261983, fifteen thousand dollars because of bodily injury to or
27death of one person in any one accident and, subject to said
28limit for one person, thirty thousand dollars because of bodily
29injury to or death of two or more persons in any one accident,
30and ten thousand dollars because of injury to or destruction
31of property of others in any one accident; and with respect to
32all accidents which occur on or after January 1, 1983, twenty
33thousand dollars because of bodily injury to or death of one
34person in any one accident and, subject to said limit for
35one person, forty thousand dollars because of bodily injury
-3-1to or death of two or more persons in any one accident, and
2fifteen thousand dollars because of injury to or destruction
3of property of others in any one accident equal to the amounts
4specified in section 321A.1, subsection 11, for accidents
5occurring during the period covered by the policy.
6EXPLANATION
7The inclusion of this explanation does not constitute agreement with
8the explanation’s substance by the members of the general assembly.
9Current law requires proof of motor vehicle financial
10responsibility to cover liability for damages arising out of
11the ownership, maintenance, or use of a motor vehicle in the
12amounts of $20,000 because of bodily injury to or death of one
13person in any one accident, and, subject to the limit for one
14person, $40,000 because of bodily injury to or death of two or
15more persons in any one accident, and $15,000 because of injury
16to or destruction of property of others in any one accident.
17This bill increases the required amounts for accidents
18occurring on or after January 1, 2020, to $30,000 because of
19bodily injury to or death of one person in any one accident,
20and, subject to the limit for one person, $60,000 because of
21bodily injury to or death of two or more persons in any one
22accident, and $22,500 because of injury to or destruction of
23property of others in any one accident.
24The bill strikes similar provisions in Code section 321A.5
25(security required following accident) and Code section 321A.21
26(“motor vehicle liability policy” defined), and adds references
27to the amounts specified in Code section 321A.1. The bill
28makes a corresponding reference change in the definition of
29“financial liability coverage” under Code section 321.1.
30By operation of law, the amounts required for a surety bond
31under Code section 321A.24 (bond as proof) and for uninsured,
32underinsured, and hit-and-run coverage under Code chapter 516A
33(uninsured, underinsured, or hit-and-run motorists) are also
34increased by the bill.
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2liability arising out of the ownership, maintenance, or use
3of a motor vehicle.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 321.1, subsection 24B, paragraph a, Code
22019, is amended to read as follows:
3a. An owner’s policy of liability insurance which is issued
4by an insurance carrier authorized to do business in Iowa to or
5for the benefit of the person named in the policy as insured,
6and insuring the person named as insured and any person using
7an insured motor vehicle with the express or implied permission
8of the named insured against loss from liability imposed by law
9for damages arising out of the ownership, maintenance, or use
10of an insured motor vehicle within the United States of America
11or Canada, but subject to minimum limits, exclusive of interest
12and costs, in the amounts specified in section 321A.21 321A.1,
13subsection 11, or specified in another provision of the Code,
14whichever is greater.
15 Sec. 2. Section 321A.1, subsection 11, Code 2019, is amended
16to read as follows:
1711. “Proof of financial responsibility” means proof of
18ability to respond in damages for liability, on account of
19accidents occurring subsequent to the effective date of the
20proof, arising out of the ownership, maintenance, or use of a
21motor vehicle, in amounts as follows:
22a. With respect to accidents occurring on or after January
231, 1981, and prior to January 1, 1983, the amount of fifteen
24thousand dollars because of bodily injury to or death of one
25person in any one accident, and, subject to the limit for one
26person, the amount of thirty thousand dollars because of bodily
27injury to or death of two or more persons in any one accident,
28and the amount of ten thousand dollars because of injury to or
29destruction of property of others in any one accident.
30b. Withrespect to accidents occurring on or after January
311, 1983, prior to January 1, 2020, the amount of twenty
32thousand dollars because of bodily injury to or death of one
33person in any one accident, and, subject to the limit for one
34person, the amount of forty thousand dollars because of bodily
35injury to or death of two or more persons in any one accident,
-1-1and the amount of fifteen thousand dollars because of injury to
2or destruction of property of others in any one accident.
3b. With respect to accidents occurring on or after January
41, 2020, the amount of thirty thousand dollars because of
5bodily injury to or death of one person in any one accident,
6and, subject to the limit for one person, the amount of sixty
7thousand dollars because of bodily injury to or death of
8two or more persons in any one accident, and the amount of
9twenty-two thousand five hundred dollars because of injury to
10or destruction of property of others in any one accident.
11 Sec. 3. Section 321A.5, subsection 3, Code 2019, is amended
12to read as follows:
133. A policy or bond is not effective under this section
14unless issued by an insurance company or surety company
15authorized to do business in this state, except that if the
16motor vehicle was not registered in this state, or was a motor
17vehicle which was registered elsewhere than in this state at
18the effective date of the policy or bond, or the most recent
19renewal thereof, the policy or bond is not effective under this
20section unless the insurance company or surety company if not
21authorized to do business in this state executes a power of
22attorney authorizing the department to accept service on its
23behalf of notice or process in any action upon the policy or
24bond arising out of the accident. However, with respect to
25accidents occurring on or after January 1, 1981, and before
26January 1, 1983, every such policy or bond is subject, if the
27accident has resulted in bodily injury or death, to a limit,
28exclusive of interest and costs, of not less than fifteen
29thousand dollars because of bodily injury to or death of one
30person in any one accident and, subject to the limit for one
31person, to a limit of not less than thirty thousand dollars
32because of bodily injury to or death of two or more persons in
33any one accident, and, if the accident has resulted in injury
34to or destruction of property, to a limit of not less than
35ten thousand dollars because of injury to or destruction of
-2-1property of others in any one accident; and with respect to
2accidents occurring on or after January 1, 1983, every such
3policy or bond is subject, if the accident has resulted in
4bodily injury or death, to a limit, exclusive of interest and
5costs, of not less than twenty thousand dollars because of
6bodily injury to or death of one person in any one accident
7and, subject to the limit for one person, to a limit of not
8less than forty thousand dollars because of bodily injury to or
9death of two or more persons in any one accident, and, if the
10accident has resulted in injury to or destruction of property,
11to a limit of not less than fifteen thousand dollars because
12of injury to or destruction of property of others in any one
13accident equal to the amounts specified in section 321A.1,
14subsection 11, for the period in which the accident occurred.
15 Sec. 4. Section 321A.21, subsection 2, paragraph b, Code
162019, is amended to read as follows:
17b. Shall insure the person named in the policy and any other
18person, as insured, using the motor vehicles with the express
19or implied permission of the named insured, against loss from
20the liability imposed by law for damages arising out of the
21ownership, maintenance, or use of the motor vehicles within the
22United States of America or the Dominion of Canada, subject to
23limits exclusive of interest and costs, with respect to each
24such motor vehicle, as follows: With respect to all accidents
25which occur on or after January 1, 1981, and before January 1,
261983, fifteen thousand dollars because of bodily injury to or
27death of one person in any one accident and, subject to said
28limit for one person, thirty thousand dollars because of bodily
29injury to or death of two or more persons in any one accident,
30and ten thousand dollars because of injury to or destruction
31of property of others in any one accident; and with respect to
32all accidents which occur on or after January 1, 1983, twenty
33thousand dollars because of bodily injury to or death of one
34person in any one accident and, subject to said limit for
35one person, forty thousand dollars because of bodily injury
-3-1to or death of two or more persons in any one accident, and
2fifteen thousand dollars because of injury to or destruction
3of property of others in any one accident equal to the amounts
4specified in section 321A.1, subsection 11, for accidents
5occurring during the period covered by the policy.
6EXPLANATION
7The inclusion of this explanation does not constitute agreement with
8the explanation’s substance by the members of the general assembly.
9Current law requires proof of motor vehicle financial
10responsibility to cover liability for damages arising out of
11the ownership, maintenance, or use of a motor vehicle in the
12amounts of $20,000 because of bodily injury to or death of one
13person in any one accident, and, subject to the limit for one
14person, $40,000 because of bodily injury to or death of two or
15more persons in any one accident, and $15,000 because of injury
16to or destruction of property of others in any one accident.
17This bill increases the required amounts for accidents
18occurring on or after January 1, 2020, to $30,000 because of
19bodily injury to or death of one person in any one accident,
20and, subject to the limit for one person, $60,000 because of
21bodily injury to or death of two or more persons in any one
22accident, and $22,500 because of injury to or destruction of
23property of others in any one accident.
24The bill strikes similar provisions in Code section 321A.5
25(security required following accident) and Code section 321A.21
26(“motor vehicle liability policy” defined), and adds references
27to the amounts specified in Code section 321A.1. The bill
28makes a corresponding reference change in the definition of
29“financial liability coverage” under Code section 321.1.
30By operation of law, the amounts required for a surety bond
31under Code section 321A.24 (bond as proof) and for uninsured,
32underinsured, and hit-and-run coverage under Code chapter 516A
33(uninsured, underinsured, or hit-and-run motorists) are also
34increased by the bill.
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