Notice of Intended Action
Financial liability coverage cards, ch 641
ARC 8337C
TRANSPORTATION DEPARTMENT[761]
Notice of Intended Action
Proposing rulemaking related to financial liability coverage
and providing an opportunity for public comment
The Transportation Department hereby proposes to rescind Chapter 641, “Financial Liability Coverage Cards,” and to adopt a new Chapter 641, “Financial Liability Coverage,” Iowa Administrative Code.
Legal Authority for Rulemaking
This rulemaking is proposed under the authority provided in Iowa Code sections 307.12(1)“j” and 321.20B.
State or Federal Law Implemented
This rulemaking implements, in whole or in part, Iowa Code sections 321.1, 321.20B, 321A.24, 321A.25 and 321A.34.
Purpose and Summary
This rulemaking proposes to repromulgate Chapter 641 in compliance with Executive Order 10. Proposed Chapter 641 establishes requirements for financial liability coverage cards to provide uniformity and consistency for cards issued by insurers transacting business in Iowa.
Regulatory Analysis
A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on August 21, 2024. A public hearing was held on the following date(s):
●September 13, 2024
The Department received no comments.
Fiscal Impact
This rulemaking has no fiscal impact to the State of Iowa.
Jobs Impact
After analysis and review of this rulemaking, no impact on jobs has been found.
Waivers
Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 761—Chapter 11.
Public Comment
Any interested person may submit written comments concerning this proposed rulemaking, which must be received by the Department no later than 4:30 p.m. on December 5, 2024. Comments should be directed to:
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Tracy George |
Public Hearing
Public hearings at which persons may present their views orally will be held as follows:
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December 5, 2024 |
Microsoft Teams link |
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December 5, 2024 |
Microsoft Teams link |
Persons who wish to make oral comments at a public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.
Any persons who intend to attend a public hearing and have special requirements, such as those related to hearing impairments, should contact Tracy George and advise of specific needs.
Review by Administrative Rules Review Committee
The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).
The following rulemaking action is proposed:
ITEM 1.Rescind 761—Chapter 641 and adopt the following new chapter in lieu thereof:
CHAPTER 641
FINANCIAL LIABILITY COVERAGE
761—641.1(321) Information and location. Information, assistance, and answers to questions relating to this chapter are available by mail from the Motor Vehicle Division, Iowa Department of Transportation, P.O. Box 9204, Des Moines, Iowa 50306-9204; in person at 6310 SE Convenience Blvd., Ankeny, Iowa; by telephone at 515.244.9124; by email at driver.services@iowadot.us; or by facsimile at 515.239.1837.
761—641.2(321,321A) Definitions.
“Financial liability coverage” means the same as defined in Iowa Code section 321.1(24B).
“Fleet” means five or more motor vehicles covered under an insurance policy or one or more motor vehicles covered by a bond filed under Iowa Code section 321A.24, a security certificate issued under Iowa Code section 321A.25, or a self-insurance certificate issued under Iowa Code section 321A.34.
“Registration number” as used in Iowa Code sections 321.20B, 321A.24(1) and 321A.25(1) means vehicle identification number.
761—641.3(321,321A) Content of financial liability coverage card.
641.3(1) A financial liability coverage card issued by an insurance company for a motor vehicle that is not insured as a part of a fleet is to contain the following information in addition to the requirements stated in Iowa Code section 321.20B(2)“a”:
a.Policy number.
b.Effective date of coverage.
c.Year and make of the insured motor vehicle.
d.The statement, “Coverage provided by this policy meets the minimum liability limits prescribed by law,” or a statement that is substantially similar.
e.The statement, “This card must be carried in paper or electronic format in the insured motor vehicle at all times,” or a statement that is substantially similar.
641.3(2) A financial liability coverage card issued by an insurance company to the owner of a fleet of vehicles is to contain the following information pursuant to Iowa Code section 321.20B(2)“b”:
a.Name of insured.
b.Policy number.
c.Effective and expiration dates of coverage.
d.Either the vehicle identification number or the words “all owned vehicles” or the word “fleet.”
e.The statement, “Coverage provided by this policy meets the minimum liability limit prescribed by law,” or a statement that is substantially similar.
f.The statement, “This card must be carried in paper or electronic format in the insured motor vehicle at all times,” or a statement that is substantially similar.
g.An emergency telephone number of either the insurer or the insurance agency.
761—641.4(321,321A) Responsibilities of insurer.
641.4(1) Each insurer issuing financial liability coverage in this state is to furnish a financial liability coverage card to the named insured for each motor vehicle insured for every new policy and every policy renewal issued.
641.4(2) The insurer is to file a true and correct sample copy of its financial liability coverage card with the department of insurance and financial services.
761—641.5(321) Acquisition of additional or replacement motor vehicles. A financial liability coverage card that indicates coverage for a replacement or additionally acquired motor vehicle may be used temporarily in a replacement motor vehicle for 30 days if ownership evidence as described in 761—subrule 400.19(3) is carried in the motor vehicle.
761—641.6(321) New policies. On new policy applications, a binder of liability coverage issued by an insurance agent authorized to conduct insurance business in this state is acceptable proof of financial liability coverage for a period of 30 days from the date of issuance of the binder.
These rules are intended to implement Iowa Code sections 321.1, 321.20B, 321A.24, 321A.25, and 321A.34.
Transportation Department
- 800 Lincoln Way
- Ames, IA 50010
- (515) 239-1358
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Open For Comments
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Public Hearing
Official Document
- Financial liability coverage cards, ch 641
- Published on 11/13/2024
- 14 Views , 0 Comments
- Notice of Intended Action
The official published PDF of this document is available from the Iowa General Assembly’s Administrative Rules page.
View the Iowa Administrative Bulletin for 11/13/2024.
Administrative Rule References
The following administrative rule references were added to this document. You may click a reference to view related notices.
Rule 761-400.19(3) Rule 761-641.1 Rule 761-641.2 Rule 761-641.3 Rule 761-641.4 Rule 761-641.5 Rule 761-641.6Iowa Code References
The following Iowa code references were added to this document. You may click a reference to view related notices.
Iowa Code 321.1 Iowa Code 321.1(24B) Iowa Code 321.20B Iowa Code 321.20B(2)“a” Iowa Code 321.20B(2)“b” Iowa Code 321A.24 Iowa Code 321A.24(1) Iowa Code 321A.25 Iowa Code 321A.25(1) Iowa Code 321A.34Keywords
The following keywords and tags were added to this document. You may click a keyword to view related notices.
Acquisition of additional or replacement motor vehicles Content of financial liability coverage card Definitions Information and location New policies Responsibilities of insurerAbout
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