SENATE BILL REPORT
EHB 2638
BYRepresentatives Inslee, Dellwo, Chandler, Crane, R. King, Brekke and Rector
Revising provisions for sale and renewal of automobile insurance.
House Committe on Financial Institutions & Insurance
Senate Committee on Financial Institutions & Insurance
Senate Hearing Date(s):February 22, 1990
Senate Staff:Walt Corneille (786-7416)
AS OF FEBRUARY 21, 1990
BACKGROUND:
State law governing the use of motor vehicle driving records by insurance companies prohibits companies from using non-fault accidents appearing in these records as a basis for issuing a policy or setting rates.
Some motorists who have attempted to comply with the recently enacted mandatory auto liability insurance law have indicated they have had difficulty obtaining insurance. Some auto insurance companies will not sell auto liability insurance to a person who has never been insured or who has not had auto insurance in the recent past. Some companies do not offer policies with the coverage limits required by the new mandatory auto insurance law.
SUMMARY:
Auto insurers may not refuse to renew the liability or underinsured motorist coverage of a policy because of an accident where the insured's portion of fault is less than 25 percent.
Auto insurers may not refuse to sell an automobile insurance policy to a person solely because the person has never had auto insurance, nor may an insurer charge a higher rate for the insurance solely because the person has never had auto insurance.
Auto insurers must offer liability insurance with coverage limits equal to the limits required under the state mandatory auto insurance law. Insurers may not sell auto liability insurance with coverage limits below the amount required by state law. Nothing contained in the act prohibits an insurer from offering higher limits of liability insurance nor does the act require an insurer to sell insurance to a person who does not meet the insurer's underwriting standards.
Appropriation: none
Revenue: none
Fiscal Note: none requested