1233-S.E AAS 4/16/93 S3336.1

ESHB 1233 - S AMD  000828

By Senator Moore

                                                   ADOPTED 4/16/93

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec. 1.  Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

    (1) "Automobile" means a passenger car as defined in RCW 46.04.382 registered or principally garaged in this state other than:

    (a) A farm-type tractor or other self-propelled equipment designed for use principally off public roads;

    (b) A vehicle operated on rails or crawler-treads;

    (c) A vehicle located for use as a residence;

    (d) A motor home as defined in RCW 46.04.305; or

    (e) A moped as defined in RCW 46.04.304.

    (2) "Bodily injury" means bodily injury, sickness, or disease, including death at any time resulting from the injury, sickness, or disease.

    (3) "Income continuation benefits" means payments of at least eighty-five percent of the insured's loss of income from work, because of bodily injury sustained by him or her in the accident, less income earned during the benefit payment period.  The benefit payment period begins fourteen days after the date of the accident and ends at the earliest of the following:

    (a) The date on which the insured is reasonably able to perform the duties of his or her usual occupation;

    (b) The expiration of not more than fifty-two weeks from the fourteenth day; or

    (c) The date of the insured's death.

    (4) "Insured automobile" means an automobile described on the declarations page of the policy.

    (5) "Insured" means:

    (a) The named insured or a person who is a resident of the named insured's household and is either related to the named insured by blood, marriage, or adoption, or is the named insured's ward, foster child, or stepchild; or

    (b) A person who sustains bodily injury caused by accident while:  (i) Occupying or using the insured automobile with the permission of the named insured; or (ii) a pedestrian accidentally struck by the insured automobile.

    (6) "Loss of services benefits" means reimbursement for payment to others, not members of the insured's household, for expenses reasonably incurred for services in lieu of those the insured would usually have performed for his or her household without compensation, provided the services are actually rendered, and ending the earliest of the following:

    (a) The date on which the insured person is reasonably able to perform those services;

    (b) The expiration of fifty-two weeks; or

    (c) The date of the insured's death.

    (7) "Medical and hospital benefits" means payments for all reasonable and necessary expenses incurred by or on behalf of the insured for injuries sustained as a result of an automobile accident for health care services provided by persons licensed under Title 18 RCW, including pharmaceuticals, prosthetic devices and eye glasses, and necessary ambulance, hospital, and professional nursing service.

    (8) "Automobile liability insurance policy" means a policy insuring against loss resulting from liability imposed by law for bodily injury, death, or property damage suffered by any person and arising out of the ownership, maintenance, or use of an insured automobile.

    (9) "Named insured" means the individual named in the declarations of the policy and includes his or her spouse if a resident of the same household.

    (10) "Occupying" means in or upon or entering into or alighting from.

    (11) "Pedestrian" means a natural person not occupying a motor vehicle as defined in RCW 46.04.320.

    (12) "Personal injury protection" means the benefits described in sections 1 through 5 of this act.

NEW SECTION. Sec. 2.  (1) No new automobile liability insurance policy or renewal of such an existing policy may be issued unless personal injury protection coverage benefits at limits established in this chapter for medical and hospital expenses, funeral expenses, income continuation, and loss of services sustained by an insured because of bodily injury caused by an automobile accident are offered as an optional coverage.

    (2) A named insured may reject, in writing, personal injury protection coverage and the requirements of subsection (1) of this section shall not apply.  If a named insured has rejected personal injury protection coverage, that rejection shall be valid and binding as to all levels of coverage and on all persons who might have otherwise been insured under such coverage.  If a named insured has rejected personal injury protection coverage, such coverage shall not be included in any supplemental, renewal, or replacement policy unless a named insured subsequently requests such coverage in writing.

NEW SECTION. Sec. 3.  (1) Personal injury protection coverage need not be provided for vendor's single interest policies, general liability policies, or other policies, commonly known as umbrella policies, that apply only as excess to the automobile liability policy directly applicable to the insured motor vehicle.

    (2) Personal injury protection coverage need not be provided to or on behalf of:

    (a) A person who intentionally causes injury to himself or herself;

    (b) A person who is injured while participating in a prearranged or organized racing or speed contest or in practice or preparation for such a contest;

    (c) A person whose bodily injury is due to war, whether or not declared, or to an act or condition incident to such circumstances;

    (d) A person whose bodily injury results from the radioactive, toxic, explosive, or other hazardous properties of nuclear material;

    (e) The named insured or a relative while occupying a motor vehicle owned by the named insured or furnished for the named insured's regular use, if such motor vehicle is not described on the declaration page of the policy under which a claim is made;

    (f) A relative while occupying a motor vehicle owned by the relative or furnished for the relative's regular use, if such motor vehicle is not described on the declaration page of the policy under which a claim is made; or

    (g) An insured whose bodily injury results or arises from the insured's use of an automobile in the commission of a felony.

NEW SECTION. Sec. 4.  Insurers providing automobile insurance policies must offer minimum personal injury protection coverage for each insured with maximum benefit limits as follows:

    (1) Medical and hospital benefits of ten thousand dollars for expenses incurred within three years of the automobile accident;

    (2) Benefits for funeral expenses in an amount of two thousand dollars;

    (3) Income continuation benefits covering income losses incurred within one year after the date of the insured's injury in an amount of ten thousand dollars, subject to a limit of the lesser of two hundred dollars per week or eighty-five percent of the weekly income.  The combined weekly payment receivable by the insured under any workers' compensation or other disability insurance benefits or other income continuation benefit and this insurance may not exceed eighty-five percent of the insured's weekly income;

    (4) Loss of services benefits in an amount of five thousand dollars, subject to a limit of forty dollars per day not to exceed two hundred dollars per week; and

    (5) Payments made under personal injury protection coverage are limited to the amount of actual loss or expense incurred.

NEW SECTION. Sec. 5.  In lieu of minimum coverage required under section 4 of this act, an insurer providing automobile liability insurance policies shall offer and provide, upon request, personal injury protection coverage with benefit limits for each insured of:

    (1) Up to thirty-five thousand dollars for medical and hospital benefits incurred within three years of the automobile accident;

    (2) Up to two thousand dollars for funeral expenses incurred;

    (3) Up to thirty-five thousand dollars for one year's income continuation benefits, subject to a limit of the lesser of seven hundred dollars per week or eighty-five percent of the weekly income; and

    (4) Up to forty dollars per day for loss of services benefits, for up to one year from the date of the automobile accident.

    Payments made under personal injury protection coverage are limited to the amount of actual loss or expense incurred.

NEW SECTION. Sec. 6.  Sections 1 through 5 of this act are each added to chapter 48.22 RCW.

NEW SECTION. Sec. 7.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 8.  Sections 1 through 5 of this act shall take effect July 1, 1994.

NEW SECTION. Sec. 9.  The commissioner may adopt such rules as are necessary to implement sections 1 through 5 of this act."

ESHB 1233 - S AMD

By Senator Moore

                                                   ADOPTED 4/16/93

    On page 1, line 2 of the title, after "insurance;" strike the remainder of the title and insert "adding new sections to chapter 48.22 RCW; creating a new section; and providing an effective date."

                            --- END ---