HOUSE BILL REPORT

HB 1535

BYRepresentatives Pruitt, Dellwo, Zellinsky and Patrick

Directing vehicle insurance rates to consider etching of vehicle identification numbers into the vehicles' windows.

House Committe on Financial Institutions & Insurance

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (14)

      Signed by Representatives Dellwo, Chair, Zellinsky, Vice Chair, Chandler, Ranking Republican Member, Anderson, Baugher, Beck, Crane, Day, Inslee, P. King, Nutley, Schmidt, K. Wilson and Winsley.

House Staff:John Conniff (786-7119)

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

FEBRUARY 2, 1990

BACKGROUND:

A new program developed by law enforcement officials in conjunction with the insurance industry attempts to reduce the incidence of vehicle theft and successful sales of stolen vehicles by etching the vehicle identification number into each of the windows of the vehicle.

SUMMARY:

SUBSTITUTE BILL:  Automobile insurance companies must review and consider any changes in losses attributable to a program of etching vehicle identification numbers into all the windows of a motor vehicle and must reflect any favorable loss experience in the rates set for automobile insurance.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Technical changes are made.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Representative Pruitt, prime sponsor.

House Committee - Testified Against:      Basil Badley, American Insurance Association.

House Committee - Testimony For:    The etching of vehicle identification numbers into the windows of motor vehicles has been proven successful in reducing the theft of motor vehicles and is supported by law enforcement officials.  Automobile insurance policyholders can be encouraged to use this method if insurance companies will give an appropriate premium discount reflecting any cost savings derived from a vehicle identification number etching program.

House Committee - Testimony Against:      While etching vehicle numbers into vehicle windows may reduce thefts, the program does not save insurance companies money.  In fact, requiring insurance companies to adopt new procedures to routinely review statistics to determine any cost savings will result in new administrative expenses.  The legislation simply is not needed.