Iowa Admin. Code r. 761-640.6 - [Effective 3/26/2025] Proof of financial responsibility
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 remains suspended or revoked until the person has filed proof of financial responsibility with the department. In addition, a person's motor vehicle registrations 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.
(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 on Form SR-22, "AAMVA
Uniform Financial Responsibility Form," in paper or electronic format approved
by the department. The form may include an owner's or operator's policy and
effective date and is to identify the policyholder by name, address, driver's
license number and birth date; the vehicles covered are to be identified by
year, make, model and vehicle identification number. The form is to 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 is to 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 is to
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 in paper or
electronic format approved by the department. The form is to 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
selfinsurance may be issued by the department to a person in whose name more
than 25 vehicles are registered and who submits a financial statement that is
found to be satisfactory to the department. Form SR-1, "Application for
Self-Insurance," is to 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 is reasonable grounds for cancellation of the
certificate.
(3)
Proof of financial responsibility restriction. When a person
has filed satisfactory proof of financial responsibility in accordance with
subrule 640.6(2), and applies for and is otherwise eligible for a driver's
license, the department will issue the driver's license with the restriction
code as described in 761-subrule 605.8(1).
(4)
Terminating the suspension upon
filing of proof of financial responsibility. When proof of financial
responsibility is provided under subrule 640.6(2) and the person is otherwise
eligible for licensing or registration, the department will issue a notice
terminating the suspension to the person whose privileges were suspended under
Iowa Code section 321A.13,
321A.14,
321A.16 or
321A.17 or rule
761-640.5 (321A) or
761-640.6 (321A). The person's
operating and registration privileges are restricted to the motor vehicles
covered under the proof of financial responsibility filed by the applicant,
except that a person required to give proof of financial responsibility who
holds proof of financial responsibility as an operator may operate a nonowned
vehicle provided the owner of that vehicle has liability coverage required
under Iowa Code chapter 321A.
(5)
Cancellation of proof of financial responsibility. A
cancellation pursuant to Iowa Code section
321A.22 is to be certified by an
authorized insurance carrier representative on Form SR-26, "AAMVA Uniform
Financial Responsibility Form," in paper or electronic format approved by the
department. The form is to include the name and driver's license number of the
policy owner, number of the policy to be canceled and effective date of
cancellation.
(6)
Suspension when proof of financial responsibility is canceled.
a. When a person's proof of financial
responsibility is canceled, the person is to immediately refile proof of
financial responsibility or surrender the license and registrations to the
department.
b. If the person fails
to refile proof of financial responsibility, a suspension notice is to be
served in accordance with rule
761-615.37 (321). The suspension
takes effect the date the notice is served. The notice is to inform the person
that the privilege to operate and register motor vehicles in Iowa is suspended
until proof of financial responsibility is refiled.
(7)
Terminating the proof of
financial responsibility requirement. A notice terminating the
requirement to maintain proof of financial responsibility is to be issued to a
person who has satisfied proof of financial responsibility requirements
pursuant to Iowa Code section
321A.29. If the person's
driver's license is still valid, the person may obtain a duplicate driver's
license without the restriction under subrule 640.6(3).
(8)
Electronic submission of proof of
financial responsibility and cancellation of proof of financial
responsibility. An insurance carrier authorized to transact business
in the state of Iowa is to electronically submit proof of financial
responsibility and cancellation of proof of financial responsibility in a
format approved by the department. No paper submissions of such proof will be
accepted by the department from the insurance carrier.
This rule is intended to implement Iowa Code sections 321A.12 through 321A.29, 321A.31 and 321A.34.
Notes
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