SENATE BILL REPORT

SB 5115

BYSenators 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 Transportation

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

Majority Report:  That Substitute Senate Bill No. 5115 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Brad Lovaas (786-7307)

                  March 4, 1987

AS REPORTED BY COMMITTEE ON TRANSPORTATION, MARCH 3, 1987

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 of $300 or more, 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:

After January 1, 1987, 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.  The Department is to verify on a random audit basis at least 1 percent of the proof of insurance information filed with the Department.  The Department shall also verify on a random audit basis 5 percent of the insurance information to be contained on the WSP accident report form.

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.

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 that insurance was in effect at the time of inspection, he is guilty of 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.

Accident reports must contain information relating to motor vehicle liability insurance.

EFFECT OF PROPOSED SUBSTITUTE:

The language of the bill is intact except that a provision is added which inserts an exclusion for intrafamily liability and any other condition, limitation or exclusion the Insurance Commissioner approves.

Provisions which mandated the Department of Licensing to conduct random audits for verification are deleted.  With these deletions, the fiscal impact of the bill is removed.

Fiscal Note:      available

Senate Committee - Testified: Dan Wolfe, Safeco; Howard Fasso, State Farm Insurance Co.