Iowa Admin. Code r. 761-640.4 - Security required following accident
Following an accident, security is required pursuant to Iowa Code section 321A.5. For the purposes of determining the 60-day time frame under Iowa Code section 321A.5(1), a "report of a motor vehicle accident" includes a new or amended law enforcement officer accident report submitted to the department under Iowa Code section 321.266(3); a new or amended driver accident report, Form 433002, submitted to the department under Iowa Code section 321.266(2); any supplemental report submitted to the department under Iowa Code section 321.267; proof of transfer of ownership of a vehicle involved in the accident that occurred prior to the date of the accident; proof of identity of a driver incorrectly identified in an initial accident report; or proof of loss submitted by an insurance carrier authorized to transact insurance business in Iowa or its authorized subrogation provider. Nothing in this rule is to be construed to extend the duration of a suspension issued under Iowa Code section 321A.5 beyond the period authorized in Iowa Code section 321A.7.
(1)
Suspension.
a. If the security requirements of Iowa Code
section 321A.5 are not met, the
department shall suspend all licenses of the driver and all registrations of
the owner.
b. The suspension takes
effect 30 days after a suspension notice is served pursuant to rule
761-615.37 (321). The notice is
to inform the person of the amount of security required. The duration of the
suspension is provided in Iowa Code section
321A.7.
(2)
Security-amounts and
type.
a. The amount of security
required of the uninsured driver and owner is to be determined from reports of
the drivers involved in the accident, reports of investigating officers, and
supplemental information obtained from persons involved in the accident
concerning amounts of damage and injury sustained. Form 431074, "Insurance
Request Letter," may be mailed to parties to the accident for supplemental
information. The security required may be reduced after the notice has been
served if evidence of exact costs is submitted to the department. The amount of
security shall not exceed the minimum limits of liability for death or injury
specified in Iowa Code chapter 321A.
b. The security is to be deposited with the
department at the address in subrule 640.1(3) in one of the following forms:
(1) Cash.
(2) Cashier's check, certified check, bank
draft, or postal money order payable to: Treasurer, State of Iowa.
(3) Surety bond issued by a company
authorized to transact insurance business in Iowa pursuant to Iowa Code section
321A.24.
(3)
Security
disposition.
a. Security is held by
the state treasurer and can be released only for payment of a judgment or as
otherwise provided in Iowa Code section
321A.10; by a court, including
by Form 431097, "Order for Release of Security"; or by Form 433010, "Assignment
and Release."
b. The security can
be refunded at any time as follows:
(1) When
compliance as provided in subrule 640.4(5) is presented to the motor vehicle
division at the address in subrule 640.1(3); or
(2) When, after one year has elapsed from the
date of the accident, Form 433007, "Affidavit for Reinstatement or Refund of
Security," is completed by the depositor; the form indicates that no action has
been initiated or judgment rendered; and the form is submitted to the motor
vehicle division. Upon receipt of the form, the motor vehicle division may
confirm the facts contained therein with the district court of the county where
the accident occurred or any other court of competent jurisdiction.
(4)
Exceptions
to requirement of security. A person who qualifies for an exception
under Iowa Code section
321A.6(3),
321A.6(4) or
321A.7(3) must
submit proof to the department at the address in subrule 640.1(3) showing that
the person qualifies for the applicable exception as follows:
a.
General release from
liability. A qualified person is to submit Form 431036, "General
Release." The signature of the party giving the release is to be notarized or
witnessed by a disinterested person. The release is to be accompanied by a
power of attorney or subrogation authority if signed by a person other than the
party sustaining damage or injury. If the party giving release is a minor, the
release is to be signed by the parent or legal guardian of the minor. The
department may accept an equivalent alternative form to prove a person's
general release from liability.
b.
Duly acknowledged written agreement release. A qualified
person is to submit Form 181301, "Agreement." Complete information is to be
provided on the form including the total amount of settlement agreed upon by
the parties involved and a release of liability upon fulfillment of payments.
The signatures of all parties to the agreement are to be notarized. The release
is to be accompanied by a power of attorney or subrogation authority if signed
by a person other than a party sustaining damage or injury. If the party giving
release is a minor, the release is to be signed by the parent or legal guardian
of the minor. This documentation demonstrates compliance only for a party who
has agreed to make payment and whose signature appears on the agreement
release. The department may accept an equivalent alternative form to prove that
a person has executed a duly acknowledged written agreement.
c.
Court-certified confession of
judgment. A qualified person is to submit a court-certified copy of a
confession of judgment, including the total sum to be paid, the payment
schedule agreed to by the parties, the signature of both parties, and proof of
loss if the judgment is to be paid to a subrogation authority.
d.
Accord and satisfaction.
A qualified person is to submit documentation that one party to an accident or
the party's insurance carrier has accepted liability for the accident and has
compensated the other party to the accident for damages and injuries. This
documentation does not demonstrate compliance for a third party.
e.
Covenant not to sue. A
qualified person is to submit documentation of a covenant not to sue that is
given to a party to an accident as compliance by another party to the accident
when a release would damage any claim against a third party.
f.
Proof of no-fault or no reasonable
possibility of judgment. A qualified person is to submit proof that
the person is not at fault for the accident or that there is no reasonable
possibility of judgment being rendered against a person in any of the following
ways:
(1) The investigating officer's report
of the accident indicates the other driver caused the accident.
(2) The other driver admits causing the
accident.
(3) Witness statements
indicate the other driver caused the accident.
(4) The other driver is convicted of a
violation that caused the accident.
g.
Adjudication of
nonliability. A qualified person is to submit a certified copy of a
final court judgment that is rendered in a civil damage action resulting from
the accident and that relieves the person of any obligation to pay
damages.
h.
Bankruptcy. A qualified person is to submit a copy of the
decree for bankruptcy showing that all possible claims against the person
arising from the accident have been scheduled in the bankruptcy
decree.
i.
Owner exception
under Iowa Code section
321A.6(3).
A qualified vehicle owner is to submit documentation that the vehicle was being
operated at the time of an accident without the owner's permission, express or
implied. This exception does not apply to a person who was driving the vehicle
at the time of the accident. Acceptable documentation includes the following:
(1) A police report indicating the vehicle
was stolen.
(2) Proof of the
driver's conviction of operating the vehicle without the owner's consent at the
time of the accident.
(3) A sworn
affidavit that the vehicle was being operated without permission at the time of
the accident.
(4) A witness
affidavit that the driver had been denied use of the vehicle.
j.
Owner exception for
vehicle sale. A qualified vehicle owner is to submit documentation
that the vehicle owner had sold the vehicle involved in the accident and the
title had been reassigned to the new owner but that departmental records did
not yet show that the title had been transferred when the accident occurred.
This exception does not apply to a person who was driving the vehicle at the
time of the accident. Acceptable documentation includes the following:
(1) Form 431125, "Affidavit of Seller,"
completed by both the buyer and seller with signatures notarized or attested to
by a member of the department unless the seller certifies under penalty of
perjury that the buyer's signature could not be obtained and provides evidence
to the satisfaction of the department that supports this
certification.
(2) A sworn
affidavit by the seller and witnesses to the sale, if any, that the vehicle had
been sold, including a description of the vehicle, the date of the sale, the
monetary consideration, facts concerning the assignment of title and delivery
of possession, and the names of witnesses to the sale, if any.
k.
Owner exception for
vehicle transfer. A qualified vehicle owner is to submit certified
copies of any court order by which ownership of a vehicle was awarded to
another party prior to the date of the accident. This exception does not apply
to a person who was driving the vehicle at the time of the accident.
This rule is intended to implement Iowa Code sections 321A.4 through 321A.11 and 321A.31.
Notes
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