HOUSE BILL REPORT

SSB 5516

BYSenate Committee on Transportation (originally sponsored by Senators Sellar and Vognild)

Requiring motor vehicle liability insurance.

House Committe on Financial Institutions & Insurance

Majority Report:  Do pass with amendments.  (10)

      Signed by Representatives Lux, Chair; Zellinsky, Vice Chair; Anderson, Betrozoff, Chandler, Day, Dellwo, Dorn, Ferguson and P. King.

House Staff:John Conniff (786-7119)

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

FEBRUARY 22, 1988

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:

BILL AS AMENDED:  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 fifty dollars. Second and subsequent violations are punishable by a fine of two hundred and fifty dollars.

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.

Persons who present false insurance information are subject to misdemeanor criminal penalties and loss of operators license for one year.

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.

AMENDED BILL COMPARED TO SUBSTITUTE:  Both the substitute and amended bills prohibit the operation of a motor vehicle without insurance.  The amended bill requires insurers to issue identification cards as compared with the substitute bill's requirement that insurers provide policy numbers to insureds.  The amended bill does not contain provisions authorizing a court to lower the fine for violation or to order community service in lieu of a fine.  The amended bill deletes references to stacking of insurance coverage and use of policy conditions and limitations and adds a requirement that the Department of Licensing report to the Legislature about the number of uninsured motorists in Washington.

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.