Iowa Administrative Code › Agency 761 - Transportation Department › Driver Licenses › Chapter 640 - Financial Responsibility › Rule 761-640.6 - Proof of Financial Responsibility

Current through Register Vol. 47, No. 3, July 24, 2024
Proof of financial responsibility is required pursuant to
				  Iowa Code sections 321A.13,
				  321A.14,
				  321A.16 and
				  321A.17. A person's driver's
				  license or nonresident operating privilege shall remain suspended or revoked
				  until the person has filed proof of financial responsibility with the
				  department. In addition, a person's motor vehicle registrations shall remain
				  suspended until the person has filed with the department proof of financial
				  responsibility for all motor vehicles registered to that person.
(1)
Duration of proof of financial
				responsibility.
Proof of financial responsibility is required for two
				years starting on the effective date of the person's last suspension or
				revocation that qualifies under Iowa Code section
				321A.17. The requirement
				terminates if the person required to give proof dies or becomes incapable of
				operating a motor vehicle, or surrenders the driver's license and the plates of
				all vehicles registered in the person's name to the department. Reinstatement
				of the person's driver's license or nonresident operating privilege and motor
				vehicle registrations within the two-year requirement is possible only if the
				person refiles such proof.
(2)
Methods of giving proof of financial responsibility.
a. Proof of financial responsibility may be
				shown by a liability insurance certificate pursuant to Iowa Code section
				321A.19. Form SR-22, "AAMVA Uniform Financial Responsibility Form," is required
				as the form of the certificate except when proof of financial responsibility is
				submitted electronically in a format approved by the department. The form may
				describe an owner's or operator's policy and shall identify the policyholder by
				name, address, driver's license number and birth date. The effective date of
				the policy shall be the same as the effective date on the form. The vehicles
				covered shall be identified by year, make, model and vehicle identification
				number. The form shall be certified in accordance with the Iowa financial
				responsibility law by an insurance carrier authorized to transact insurance
				business in Iowa or by an insurance carrier authorized by power of attorney.
				The policy shall be canceled only as provided in Iowa Code section
				321A.22. Certification of
				coverage for an owner's policy authorizes the policyholder to have
				registrations for the described vehicles. Certification of coverage for an
				operator's policy does not authorize registrations.
b. Proof of financial responsibility may be
				given for a person who is an operator in the employ of the owner of the motor
				vehicle, or who is a member of the immediate family or household of the owner
				pursuant to Iowa Code section
				321A.26, if the owner's
				insurance carrier certifies for the person required to show proof of financial
				responsibility. In addition to the requirements in paragraph
				640.6(2)
"a,"
the proof of financial responsibility shall
				identify both the policyholder and the person for whom proof of financial
				responsibility is given. This certification does not authorize the person
				required to give proof of financial responsibility to register a motor
				vehicle.
c. Proof of financial
				responsibility may be given for a person who is an operator in the employ of an
				owner of a fleet of motor vehicles, if the owner's insurance carrier certifies
				for the person required to show proof of financial responsibility. Form SR-23,
				"AAMVA Uniform Financial Responsibility Form," is required as the form of the
				certificate except when proof of financial responsibility is submitted
				electronically in a format approved by the department. The form shall identify
				the policyholder's name and address, policy number, policy dates and effective
				date. This certification does not authorize the person required to give proof
				of financial responsibility to register a motor vehicle.
d. Proof of financial responsibility may be
				given for a person who is an operator in the employ of an owner who has
				qualified as a self-insurer pursuant to Iowa Code section
				321A.34. A certificate of
				self-insurance may be issued by the department to a person in whose name more
				than 25 vehicles are registered and who submits a financial statement which is
				found to be satisfactory to the department. Form SR-1, "Application for Self
				Insurance," shall be completed and submitted to the department with a list of
				all the owner's motor vehicles registered in Iowa identified by make, year,
				model and vehicle identification number. When the application is approved, the
				department shall issue Form SR-2, "Self Insurance Certificate." Failure to pay
				a judgment pursuant to Iowa Code section
				321A.34 or failure to submit an
				annual financial statement shall be reasonable grounds for cancellation of the
				certificate.