HOUSE BILL REPORT

SSB 5113

As Amended by the House

BYSenate Committee on Transportation (originally sponsored by Senators Peterson, Bender, McDermott, Kreidler, Vognild, Fleming, Bauer, DeJarnatt, Stratton, Garrett, Rasmussen and Moore)

Reducing auto insurance rates based on safety belt and passive restraint usage.

House Committe on Financial Institutions & Insurance

Majority Report:  Do pass.  (12)

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

House Staff:John Conniff (786-7119)

AS PASSED HOUSE APRIL 9, 1987

BACKGROUND:

In 1984, the legislature adopted an act requiring children under the age of five to be properly secured in a carseat whenever riding in a motor vehicle.

Last year, the legislature adopted a mandatory seat belt law that requires all motor vehicle occupants to wear seat belts except when riding in certain types of motor vehicles or when a licensed physician certifies that the person is unable to wear a seat belt.  Some motor vehicle liability insurers intend to offer discounts for certain types of coverages to reflect potential savings from the wearing seat belts.

Some motor vehicle liability insurers also offer a premium discount for the comprehensive coverage of an auto policy when the insured vehicle contains an anti-theft device.  The most common discount given is 5 percent for alarms and 15 percent for disabling devices.

SUMMARY:

Insurance companies that issue motor vehicle liability insurance policies must take into consideration anticipated changes in losses that will result when policyholders wear seat belts and when policyholders install anti-theft devices in their vehicles.  The insurer must report these changes in a rate filing with the Insurance Commissioner so that the commissioner can use the information in deciding whether to approve a rate.  Similarly, insurers must take into consideration changes in losses from the use of running lights and from the insuring of more vehicles than drivers under the same policy.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.