Opinion ID: 1704082
Heading Depth: 1
Heading Rank: 2

Heading: Public PolicyLegislative.

Text: Farm & City first contends that Iowa Code chapter 321A, entitled Motor Vehicle Financial Responsibility, evidences a broad underlying public policy to protect persons injured in motor vehicle accidents from financially irresponsible motorists. To support that contention it cites dictum to that effect from Motor Vehicle Casualty Co. v. LeMars Mutual Insurance Co. of Iowa, 254 Iowa 68, 76, 116 N.W.2d 434, 439 (1962). Our more recent decisions, however, have construed chapter 321A more narrowly, finding no legislative intent to require all motorists to have liability insurance and therefore no legislative expression of a public policy to protect all victims of traffic accidents. Rodman v. State Farm Mutual Automobile Insurance Co., 208 N.W.2d 903, 908 (Iowa 1973); Western Casualty and Surety Co. v. General Casualty Co. of Wisconsin, 200 N.W.2d 892, 893 (Iowa 1972). As its title suggests, chapter 321A is a financial responsibility statute and therefore distinguishable from mandatory insurance statutes by which some states require all motorists to have a prescribed form of automobile insurance policy. Western Casualty, 200 N.W.2d at 893. Here, as in Rodman and Western Casualty, the automobile insurance policy in question was not issued to enable the insured owner to comply with chapter 321A. Since that statute allowed the owner Moorman to use his automobile without first obtaining liability insurance of any kind, it also left him free to purchase the limited coverage provided by the American Family policy. We do not agree with Farm & City's contention that its broad public policy argument was not addressed in the Western Casualty case. What was said in Western Casualty applies equally here and answers that argument: The provisions of our financial responsibility act do not void the provisions of a voluntary insurance contract, in those situations beyond the contemplation of the act. We regret this holding to some extent may seem in conflict with a hope previously expressed by a legion of authorities including our own. See Motor Vehicle Cas. Co. v. LeMars Mut. Ins. Co., 254 Iowa 68, 76, 116 N.W.2d 434, 439. The hope is the public would be protected from financial irresponsibility of motorists upon our streets and highways. In the pursuit of this end we cannot substitute a compulsory insurance law for a financial responsibility law. Neither can we arrogate to ourselves authority to remove or to alter an express limitation given by the legislature upon the extent of insurance protection they wished the public to have. 200 N.W.2d at 894. Chapter 321A does not evidence a legislative intent consistent with Farm & City's broad public policy argument.