Relating to automobile liability policy incentives for persons who install a speed governing device on an insured automobile

This bill prohibits an insurance company transacting business in Iowa from increasing the premiums of, or reducing services provided to, an insured customer who installs a speed governing device on an insured automobile and provides proof of such installation to the insurance company. The premium freeze goes into effect at the time the customer provides proof of installation of the speed governing device to the insurance company. A person who receives a premium freeze under the bill must pay the insurance company an amount equal to any increase in premiums that otherwise would have applied to the customer if the insured automobile is involved in a crash or collision and it is discovered that the automobile was not connected to a speed governing device at the time of the crash or collision. A “speed governing device” is defined in the bill to mean a device that measures and regulates the speed of an automobile on which it is installed and that prevents the automobile from exceeding miles per hour.