SENATE BILL REPORT

SB 5113

BYSenators Peterson, Bender, McDermott, Kreidler, Vognild, Fleming, Bauer, DeJarnatt, Stratton, Garrett, Rasmussen and Moore

Reducing auto insurance rates based on safety belt and passive restraint usage.

Senate Committee on Transportation

Senate Hearing Date(s):February 17, 1987; March 3, 1987

Majority Report:  That Substitute Senate Bill No. 5113 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Peterson, Chairman; Hansen, Vice Chairman; Tanner, Vice Chairman; Bailey, Bender, Conner, DeJarnatt, Garrett, Halsan, Nelson, Patterson, Sellar.

Senate Staff:Brad Lovaas (786-7307)

                  March 4, 1987

AS REPORTED BY COMMITTEE ON TRANSPORTATION, MARCH 3, 1987

BACKGROUND:

In 1983 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.

SUMMARY:

The Legislature finds that the use of car seats and seat belts results in the saving of life and the reduction of injuries.  Because of these benefits, the Legislature finds that court costs, hospital and medical costs, and property damage will be reduced.  Therefore, the Legislature requires that insurers pass along these cost savings to insurance buyers through rate reductions.

The Insurance Commissioner is directed to require insurers to offer:  (a) A minimum 15 percent reduction in auto insurance rates to reflect cost savings from the use of seat belts when the statewide usage of seat belts exceeds 55 percent; (b) a minimum 25 percent discount for vehicles that have air bags protecting the driver; and (c) a 20 percent premium discount if the vehicle is equipped with passive restraint devices other than air bags.

If a person receives a traffic citation for failure to wear seat belts, the person is not eligible for any rate reduction authorized by the Act for the next policy period.

The Commissioner in consultation with the Washington Traffic Safety Commission is to adopt rules defining "air bags," "passive restraint devices," and any other necessary terms.

The rate reductions apply to policies issued or renewed after July 1, 1987.  The policies that are provided with a discount must contain information identifying the type and amount of the discount.

The Commissioner is to report annually to the Legislative Committee on Transportation and Financial Institutions regarding the provisions of the Act.

Changes are made to the existing mandatory seat belt law to conform to the rate reduction provisions.  Among these changes are a provision that permits insurers to use information on the driver's traffic infraction record that indicates a violation of the seat belt law.  In addition, a provision that extends the seat belt law provisions to vehicles that are required to meet the federal manual seat belt safety standards rather than to vehicles that currently meet such standards is included.

EFFECT OF PROPOSED SUBSTITUTE:

Except for the intent section, all the bill language is deleted.  New language is inserted which mandates that due consideration in making rates for motor vehicle insurance be given to losses attributable to the use of seat belts, child restraints, and other lifesaving devices.

Fiscal Note:      available

Senate Committee - Testified: Chuck Hayes, Orin Vertrees, Howard Schrage, Washington State Traffic Safety Commission; Bruce Olsen, AAA; Dan Wolfe, Safeco; Howard Fasso, State Farm