S-2092.4                   _______________________________________________

                                            SUBSTITUTE SENATE BILL 5816

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State of Washington                              53rd Legislature                             1993 Regular Session

By Senate Committee on Labor & Commerce (originally sponsored by Senators Niemi and Pelz)

Read first time 03/03/93.

Concerning automobile insurance territorial rating.

          AN ACT Relating to automobile insurance territorial rating; adding new sections to chapter 48.19 RCW; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 48.19 RCW to read as follows:

          As used in section 2 of this act:

          (1) "Automobile insurance" means a policy of general casualty, property, or vehicle insurance that includes coverage for loss or damage that occurs while a motorized vehicle is being operated on public roads.

          (2) "Territory" means a geographic area.

          (3) "Recognized landmark" means city and county boundaries, a river or body of water, a highway, road, or street.

NEW SECTION. Sec. 2.  A new section is added to chapter 48.19 RCW to read as follows:

          (1) An insurer must consider differences in expected loss experience when determining the premiums for automobile insurance.  Along with its consideration of expected loss experience, the insurer shall consider any other factors in accordance with the other provisions of this chapter.

          (2) An insurer may use rating variables, including territory, in the formula for determining the premiums for automobile insurance.  A vehicle's territory shall be assigned based upon the garaging location of the vehicle insured under the automobile insurance policy.

          (3) Each insurer must define the boundaries of each territory using recognized landmarks.  Each territory must include an area or combination of areas that include an aggregate population of at least one hundred thousand people.

          (4) Each insurer, when it files to change its rates, must show that each territory is comprised of a population of at least one hundred thousand people.

NEW SECTION. Sec. 3.  This act shall take effect July 1, 1995.

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