H-3986.2 _______________________________________________
HOUSE BILL 2621
_______________________________________________
State of Washington 55th Legislature 1998 Regular Session
By Representatives Sullivan, L. Thomas, H. Sommers, Conway, Appelwick, Benson, Wolfe, Kastama, Hatfield, Dyer, Zellinsky, D. Sommers, Robertson and Murray
Read first time 01/16/98. Referred to Committee on Financial Institutions & Insurance.
AN ACT Relating to mandatory vehicle liability insurance; amending RCW 48.22.020; adding new sections to chapter 48.14 RCW; making an appropriation; and providing expiration dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 48.22.020 and 1947 c 79 s .22.02 are each amended to read as follows:
(1) The commissioner shall after consultation with the insurers licensed to write motor vehicle liability insurance in this state, approve a reasonable plan or plans for the equitable apportionment among such insurers of applicants for such insurance who are in good faith entitled to but are unable to procure insurance through ordinary methods and, when such plan has been approved, all such insurers shall subscribe thereto and shall participate therein. Any applicant for such insurance, any person insured under such plan and any insurer affected may appeal to the commissioner from any ruling or decision of the manager or committee designated to operate such plan.
(2)(a) The commissioner, in consultation with insurers authorized to write motor vehicle liability insurance in this state, shall establish an assigned risk plan to assist low-income persons obtain the mandatory minimum motor vehicle liability insurance coverage. The purpose of the plan is to enable low-income persons to avoid breaking the law because they cannot afford the mandatory motor vehicle liability insurance but must drive to work, to take their children to health care providers, and to conduct other necessary errands. The commissioner shall ensure that the plan provides the minimum liability requirements under chapter 46.30 RCW without cost to very low-income persons and requires a contribution based on income for low-income persons. The commissioner shall ensure that the plan is comprised of all insurers licensed to write motor vehicle liability insurance in this state.
(b) The commissioner shall ensure that the plan assists as many low-income persons as funds allow and prioritizes assistance based on income, good driving record, lack of availability of public transit, transportation needs, and other criteria established by the commissioner.
(c) The commissioner shall report each December to the insurance committees of the legislature on the assigned risk plan created by this subsection (2).
(d) This subsection expires June 30, 2003.
NEW SECTION. Sec. 2. A new section is added to chapter 48.14 RCW to read as follows:
(1) Of the premium taxes collected under RCW 48.14.020, beginning in 1998, the state treasurer shall deposit 98.5 percent of the amount collected in the general fund and 1.5 percent in the mandatory vehicle liability insurance assistance account created in section 3 of this act.
(2) This section expires December 31, 2002.
NEW SECTION. Sec. 3. A new section is added to chapter 48.14 RCW to read as follows:
(1) The mandatory vehicle liability insurance assistance account is created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the assigned risk plan created in RCW 48.22.020(2).
(2) This section expires June 30, 2003.
NEW SECTION. Sec. 4. The sum of two million six hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 1999, from the account created under section 3 of this act to the office of the insurance commissioner for the purposes of the assigned risk plan created under RCW 48.22.020(2).
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