FINAL BILL REPORT

SHB 920

PARTIAL VETO

                                  C 320 L 87

BYHouse Committee on Financial Institutions & Insurance (originally sponsored by Representatives Zellinsky, Lux, S. Wilson and Taylor)

Providing specific insurance rate-making criteria for passenger cars with safety and anti-theft devices.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions

SYNOPSIS AS ENACTED

BACKGROUND:

In 1984, the legislature adopted an act requiring children under the age of five to be properly secured in a car seat whenever riding in a motor vehicle.

Last year, the legislature adopted a mandatory seat belt law that requires all motor vehicle occupants to wear seat belts except when riding in certain types of motor vehicles or when a licensed physician certifies that the person is unable to wear a seat belt.  Some motor vehicle liability insurers intend to offer discounts for certain types of coverages to reflect potential savings from the wearing of seat belts.

Some motor vehicle liability insurers discount the comprehensive coverage of an auto policy when the insured vehicle contains an anti-theft device.

SUMMARY:

Insurance companies that issue motor vehicle liability insurance policies must take into consideration anticipated changes in losses that will result when policyholders wear seat belts and when policyholders install anti-theft devices in their vehicles.  The insurer must report these changes in a rate filing with the insurance commissioner so that the commissioner can use the information in deciding whether to approve a rate.  Similarly, insurers must take into consideration changes in losses from the use of running lights and from the insuring of more vehicles than drivers under the same policy.

VOTES ON FINAL PASSAGE:

      House 93   3

      Senate    46     0(Senate amended)

      House 96   1(House concurred)

EFFECTIVE:January 1, 1988

Partial Veto Summary:  Provisions that require insurers to adjust rates to reflect loss reductions resulting from seat belt usage are vetoed.  These provisions duplicated SSB 5113.  (See VETO MESSAGE)