SENATE BILL REPORT

SSB 5115

BYSenate Committee on Transportation (originally sponsored by Senators Bender, Peterson, Owen, McDermott, Kreidler, Newhouse, Vognild, Bauer, Saling, DeJarnatt, Stratton, Barr, Lee, Garrett, Rasmussen, Moore, Johnson and Deccio)

Requiring motor vehicle liability insurance.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 17, 1987; March 3, 1987; January 29, 1988

Senate Staff:Walt Corneille (786-7416)

AS OF JANUARY 28, 1988

BACKGROUND:

At the present time a driver is not required to have an automobile insurance policy or bond for payment of damages caused by the operation of a motor vehicle until after the driver has caused an accident resulting in property damage greater than $300, death or bodily injury.

Since automobile liability insurance is not compulsory until after an accident, many people are operating motor vehicles without any liability insurance and, because of their economic situation, are unable or unwilling to compensate victims for damages suffered in an automobile accident.  This often results in responsible drivers bearing the costs caused by financially irresponsible drivers.

Persons convicted of driving while intoxicated (DWI) usually have increased insurance rates.  Many of these drivers elect to drive without insurance, rather than incur the financial burdens of higher insurance rates.  As a result, many high risk drivers are operating motor vehicles without having liability insurance to protect innocent victims.

SUMMARY:

A motor vehicle license will not be issued or renewed unless the applicant certifies to the Department of Licensing that automobile insurance on the vehicle is in effect.  An applicant must have an insurance policy, bond, surplus line coverage, a certificate of deposit of money, or a certificate of self-insurance.

It is a misdemeanor to operate a vehicle requiring a license without motor vehicle liability insurance.

It is a misdemeanor to willfully falsify insurance information submitted to the Department.

A policy for motor vehicle insurance may contain an exclusion for intrafamily liability and any other conditions, limitations or exclusions the Insurance Commissioner approves now or in the future.

The vehicle owner is required to write the appropriate insurance information on the back of the vehicle registration form or keep the information in written form in the vehicle.

Proof of motor vehicle liability insurance must be carried in the vehicle at all times.  A police officer is required to check for proof of insurance if he requires the operator of the vehicle to produce a driver's license.  If the operator does not have proof of insurance in the vehicle, but can demonstrate to the court that an insurance policy was in effect at the time of inspection, the charge shall be reduced to a traffic infraction with a fine not to exceed $50.  If the operator of the vehicle is unable to produce or demonstrate proof of insurance, he is guilty of a misdemeanor.

Vehicles licensed with the Washington Utilities and Transportation Commission are not subject to the Act.

Appropriation:    none

Revenue:    none

Fiscal Note:      available