SENATE BILL REPORT

ESHB 1175

BYHouse Committee on Financial Institutions & Insurance (originally sponsored by Representatives Baugher, Lux, Rayburn, Wineberry, Meyers, Dellwo, Sprenkle, Cooper, Walk, Madsen, Heavey, Pruitt, Nutley, Todd and Grant)

Penalizing operation of a motor vehicle without insurance.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):April 3, 1987; February 18, 1988; February 26, 1988

Majority Report:  Do pass as amended.

      Signed by Senators von Reichbauer, Chairman; Johnson, Kreidler, Moore, Sellar, Smitherman.

Senate Staff:Walt Corneille (786-7416)

                  February 29, 1988

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE, FEBRUARY 26, 1988

BACKGROUND:

The financial responsibility law requires drivers and owners of motor vehicles to pay for damages caused by the negligent operation of a motor vehicle or face suspension of their driving privileges and possible suspension of the motor vehicle registration.  The operation of a motor vehicle without insurance is not prohibited.

If an automobile driver negligently causes an accident, the driver must arrange for payment of the damages and show future proof of financial responsibility by obtaining a vehicle liability insurance policy, self insuring, posting a bond, or obtaining a certificate of deposit.

SUMMARY:

No person may operate a motor vehicle subject to registration unless the person has a motor vehicle liability insurance policy, is self-insured, is covered by a certificate of deposit, or is covered by a liability bond.  Operation of a motor vehicle without insurance is punishable by a fine of $50. Second and subsequent violations are punishable by a fine of $250.

Insurance companies are required to give policyholders an identification card that indicates who is insured and which vehicles are insured. At the policyholder's request, the insurer must provide cards to each person named as a driver under the policy and must provide a card for each vehicle.  If a person complies with the financial responsibility requirements by purchasing a bond, self insuring, or depositing funds, the Department of Licensing shall require the bonding company, self insurer, or deposit holder to issue an identification card, pursuant to rules adopted by the department.

Whenever a person operates a motor vehicle, the person shall have in his or her possession an insurance identification card and must show it to any law enforcement officer who requests it.

The provisions of this act do not apply to motor vehicles registered with the Washington Utilities and Transportation Commission as common or contract carriers.  The Financial Responsibility Act definition of motor vehicle liability policy does not apply to policies that are not issued to comply with the proof of future responsibility provisions of the act.

Motor vehicle accident reports must contain insurance information of the drivers involved in the accident.  The department's director must report the incidence of uninsured motorists to the Legislature after accumulating data for 12 months after the effective date of this act.

SUMMARY OF PROPOSED SENATE AMENDMENT:

Every driver and registered owner of a motor vehicle must maintain financial responsibility as specified in 46.29 RCW.  Financial responsibility includes a motor vehicle liability policy, a bond, a certificate of deposit, or a certificate of self-insurance.  Vehicles owned by or driven by an agent of the United States, the state of Washington or a municipality or subdivision thereof are considered to have financial responsibility.  Antique or collectors' vehicles are exempt.

A policy issued or renewed as required by this act may contain conditions, limitations and exclusions approved by the insurance commissioner.  The stacking of policies is prohibited unless specifically provided in the policy.

A person must provide evidence of financial responsibility when requested by a law enforcement officer.  Evidence of financial responsibility means the insurance or surety company's name and the number of the insurance policy or bond number, or the certificate of deposit number in the case of a self-insurer or depositor.

Drivers or owners of motor vehicles registered in another state requiring financial responsibility or insurance must comply with the laws of the state in which the vehicle is registered while driving in this state.

A violation of this act is a traffic infraction carrying a penalty of $100 per violation.  The court may reduce the penalty or require community service in lieu of the fine.

A person may appear in court personally or in lieu of a personal appearance may submit written evidence of financial responsibility by mail.  Upon receipt of evidence acceptable to the court of financial responsibility at the time of the infraction, further proceedings must be dismissed.

A person who provides false evidence of financial responsibility to a law enforcement officer or the court is guilty of a misdemeanor punishable by a maximum fine of $500 and/or imprisonment of not more than 30 days.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested

Effective Date:This act takes effect January 1, 1988 but the Department of Licensing may immediately take necessary steps to ensure the act is implemented on its effective date.

Senate Committee - Testified: Patricia Allison, self (for); Dennis Martin, WSTLA; Jean Leonard, State Farm Insurance (against); Jim Lazar, self (for); Basil Badley, AIA (against); George Flood, Pemco