Senate File 119 - Introduced SENATE FILE 119 BY ROWLEY (COMPANION TO HF 6 BY LOHSE) A BILL FOR An Act relating to the minimum amounts required for motor 1 vehicle financial responsibility, and making penalties 2 applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1318XS (2) 91 th/ns
S.F. 119 Section 1. Section 321A.1, subsection 11, Code 2025, is 1 amended to read as follows: 2 11. Proof of financial responsibility means proof of 3 ability to respond in damages for liability, on account of 4 accidents occurring subsequent to the effective date of the 5 proof, arising out of the ownership, maintenance, or use of a 6 motor vehicle, in the amount of twenty fifty thousand dollars 7 because of bodily injury to or death of one person in any one 8 accident, and, subject to the limit for one person, the amount 9 of forty one hundred thousand dollars because of bodily injury 10 to or death of two or more persons in any one accident, and 11 the amount of fifteen twenty-five thousand dollars because 12 of injury to or destruction of property of others in any one 13 accident. 14 Sec. 2. Section 321A.5, subsection 3, Code 2025, is amended 15 to read as follows: 16 3. A policy or bond is not effective under this section 17 unless issued by an insurance company or surety company 18 authorized to do business in this state, except that if the 19 motor vehicle was not registered in this state, or was a motor 20 vehicle which was registered elsewhere than in this state at 21 the effective date of the policy or bond, or the most recent 22 renewal thereof, the policy or bond is not effective under this 23 section unless the insurance company or surety company if not 24 authorized to do business in this state executes a power of 25 attorney authorizing the department to accept service on its 26 behalf of notice or process in any action upon the policy or 27 bond arising out of the accident. Every such policy or bond 28 is subject, if the accident has resulted in bodily injury or 29 death, to a limit, exclusive of interest and costs, of not less 30 than twenty fifty thousand dollars because of bodily injury 31 to or death of one person in any one accident and, subject to 32 the limit for one person, to a limit of not less than forty 33 one hundred thousand dollars because of bodily injury to or 34 death of two or more persons in any one accident, and, if the 35 -1- LSB 1318XS (2) 91 th/ns 1/ 3
S.F. 119 accident has resulted in injury to or destruction of property, 1 to a limit of not less than fifteen twenty-five thousand 2 dollars because of injury to or destruction of property of 3 others in any one accident. 4 Sec. 3. Section 321A.15, subsection 1, paragraphs a, b, and 5 c, Code 2025, are amended to read as follows: 6 a. When twenty fifty thousand dollars has been credited upon 7 any judgment or judgments rendered in excess of that amount 8 because of bodily injury to or death of one person as the 9 result of any one accident. 10 b. When, subject to the limit of twenty fifty thousand 11 dollars because of bodily injury to or death of one person, the 12 sum of forty one hundred thousand dollars has been credited 13 upon any judgment or judgments rendered in excess of that 14 amount because of bodily injury to or death of two or more 15 persons as the result of any one accident. 16 c. When fifteen twenty-five thousand dollars has been 17 credited upon any judgment or judgments rendered in excess of 18 that amount because of injury to or destruction of property of 19 others as a result of any one accident. 20 Sec. 4. Section 321A.21, subsection 2, paragraph b, Code 21 2025, is amended to read as follows: 22 b. Shall insure the person named in the policy and any other 23 person, as insured, using the motor vehicles with the express 24 or implied permission of the named insured, against loss from 25 the liability imposed by law for damages arising out of the 26 ownership, maintenance, or use of the motor vehicles within the 27 United States of America or the Dominion of Canada, subject to 28 limits exclusive of interest and costs, with respect to each 29 such motor vehicle, twenty fifty thousand dollars because of 30 bodily injury to or death of one person in any one accident 31 and, subject to said limit for one person, forty one hundred 32 thousand dollars because of bodily injury to or death of two 33 or more persons in any one accident, and fifteen twenty-five 34 thousand dollars because of injury to or destruction of 35 -2- LSB 1318XS (2) 91 th/ns 2/ 3
S.F. 119 property of others in any one accident. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanations substance by the members of the general assembly. 4 This bill increases the minimum amounts of coverage required 5 for motor vehicle financial responsibility for bodily injury 6 or death of one person ($20,000 to $50,000), bodily injury 7 or death of two or more persons ($40,000 to $100,000), and 8 property damage ($15,000 to $25,000). Such amounts match the 9 requirements under current law for transportation network 10 company drivers (Code section 321N.4) while operating but not 11 engaged in a prearranged ride. The bill makes corresponding 12 changes to provisions regarding associated policies, bonds, and 13 judgments. 14 A person who violates a provision of Code chapter 321A 15 which does not otherwise provide a penalty commits a serious 16 misdemeanor, punishable by confinement for no more than one 17 year and a fine of at least $430 but not more than $2,560. 18 In addition, Code section 321.20B prohibits a person from 19 driving a motor vehicle unless financial liability coverage is 20 in effect for the vehicle and the person carries proof of such 21 coverage. By operation of law, the associated coverage amounts 22 are increased by the bill. A person who violates Code section 23 321.20B commits a simple misdemeanor punishable by a $325 24 scheduled fine. If a violation is discovered in connection 25 with a motor vehicle accident, the fine increases to $645. The 26 person is also subject to possible removal of the vehicles 27 registration plates and registration receipt, and impoundment 28 of the vehicle. 29 -3- LSB 1318XS (2) 91 th/ns 3/ 3