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Bill > SF119
IA SF119
IA SF119A bill for an act relating to the minimum amounts required for motor vehicle financial responsibility, and making penalties applicable.
summary
Introduced
01/23/2025
01/23/2025
In Committee
06/16/2025
06/16/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill increases the minimum amounts of coverage required 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 $25,000). Such amounts match the requirements under current law for transportation network company drivers (Code section 321N.4) while operating but not engaged in a prearranged ride. The bill makes corresponding changes to provisions regarding associated policies, bonds, and judgments. 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 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.
AI Summary
This bill increases the minimum requirements for motor vehicle financial responsibility (a legal term for insurance coverage) in Iowa by raising the mandatory insurance coverage amounts. Specifically, the bill raises the coverage for bodily injury or death of one person from $20,000 to $50,000, bodily injury or death of two or more persons from $40,000 to $100,000, and property damage from $15,000 to $25,000. These new amounts align with existing requirements for transportation network company drivers (like rideshare drivers) operating outside of prearranged rides. The bill amends multiple sections of the Iowa Code to reflect these updated coverage amounts, affecting policies, bonds, and judgments related to motor vehicle accidents. By increasing these minimums, the bill aims to ensure that drivers have more comprehensive financial protection in the event of an accident. The changes will require drivers to obtain insurance policies with higher coverage limits, potentially providing better financial security for those involved in motor vehicle incidents. Violations of the new requirements can result in penalties, including fines and potential vehicle impoundment, which remain consistent with existing law.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Subcommittee recommends amendment and passage. (on 01/28/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF119 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF119.html |
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