HOUSE BILL REPORT

HB 1175

BYRepresentatives Baugher, Lux, Rayburn, Wineberry, Meyers, Dellwo, Sprenkle, Cooper, Walk, Madsen, Heavey, Pruitt, Nutley, Todd and Grant

Penalizing operation of a motor vehicle without insurance.

House Committe on Financial Institutions & Insurance

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (13)

      Signed by Representatives Lux, Chair; Zellinsky, Vice Chair; Betrozoff, Chandler, Crane, Day, Dellwo, Ferguson, P. King, Meyers, Niemi, Nutley and Winsley.

House Staff:John Conniff (786-7119)

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

MARCH 5, 1987.

BACKGROUND:

In 1963, Washington adopted, in substance, the Uniform Motor Vehicle Safety Responsibility Act.  The Washington statute, entitled "Financial Responsibility," requires drivers and owners of motor vehicles to pay for damages caused in accidents or face suspension of driving privileges and possible suspension of motor vehicle registration.  The act does not prohibit the operation of a motor vehicle without insurance.

If an automobile driver negligently causes an accident and does not possess a qualifying automobile insurance policy or is not otherwise exempted from the act, the Department of Licensing notifies the driver that privileges will be suspended unless the driver complies with two main requirements. These requirements are, first, that the driver somehow agree to pay for damages and, second, that the driver show proof of future ability to pay for damages.

SUMMARY:

SUBSTITUTE BILL:  No person may operate a motor vehicle subject to registration unless the person has a motor vehicle liability insurance policy, the person is self-insured, the person is covered by a certificate of deposit, or the person is covered by a liability bond.

Operation of a motor vehicle without insurance is punishable by a fine of $50. Second and subsequent violations are punishable by a fine of $250.

Insurance companies are required to give policyholders an identification card that indicates who is insured and which vehicles are insured. At the policyholder's request, the insurer must provide cards to each person named as a driver under the policy and must provide a card for each vehicle.

If a person complies with these insurance requirements by purchasing a bond, self insuring, or depositing funds, the Department of Licensing shall require the bonding company, self insurer, or deposit holder to issue an identification card to the person.

Whenever a person operates a motor vehicle, the person shall have on his or her possession an insurance identification card and must show it to any law enforcement officer who requests it.

The provisions of this act do not apply to motor vehicles registered with the Washington utilities and transportation commission as common or contract carriers.

The Financial Responsibility Act definition of motor vehicle liability policy does not apply to policies that are not issued to comply with the proof of future responsibility provisions of the act.

Motor vehicle accident reports must contain insurance information of the drivers involved in the accident.

The director of the Department of Licensing must report on the incidence of uninsured motorists to the legislature after accumulating data for twelve months after the effective date of this act.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Provisions requiring suspension of vehicle registration for violations of the act are removed and the requirements that the Department of Licensing audit for compliance are removed.

Fiscal Note:      Requested March 4, 1987.

Effective Date:This act takes effect January 1, 1988 but the Department of Licensing may immediately take necessary steps to ensure the act is implemented on its effective date.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.