HOUSE  BILL  ANALYSIS

                 ON

             HB 1733

Brief Description: Clarifying personal injury protection automobile insurance coverage.

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BACKGROUND:  Personal Injury Protection (PIP) is a type of automobile insurance coverage that most drivers have as part of their comprehensive automobile insurance policy.   PIP is first party, no-fault coverage that generally includes disability, wage loss, and death benefit coverage. 

Under a 1993 law, automobile liability insurance companies must provide PIP coverage under nonbusiness auto insurance policies unless the named insured rejects PIP coverage in writing.  Insurers need not provide PIP coverage for motor homes or motorcycles, for intentional injuries, for injuries arising from war, from toxic waste exposure, from accidents while the insured is occupying an owned but uninsured auto, or from accidents to the insured's relative while occupying an auto owned by the relative.

PIP benefits must extend to reasonable and necessary medical and hospital expenses up to $10,000 incurred within three years from the date of the insured's injury.  Funeral expenses must be covered up to $2,000.  Loss of income benefits must be provided up to $10,000, subject to certain limits.  Loss of services benefits must be provided up to $40 per day, not exceeding a total of $5,000.  Insurers must offer higher limits for all such benefits as provided in statute when requested by the insured.

Automobile insurance tends to be written per vehicle; if a person has more than one vehicle, each vehicle has separate coverage.

SUMMARY:   When an insured person has personal injury protection (PIP) insurance on more than one vehicle, and the insured person=s PIP coverage applies to an accident not involving any of the insured person=s vehicles, only one of the insured person=s PIP coverages applies.  If there are different limits of coverage, the policy with the highest limit applies.

     Fiscal Note: Not Requested.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Rulemaking: Not addressed.