SENATE BILL REPORT

SB 5116

BYSenators Fleming, Peterson, Bauer and Moore

Qualifying cars with anti-theft devices for insurance rate reductions.

Senate Committee on Transportation

Senate Hearing Date(s):February 5, 1987; February 17, 1987

Majority Report:  Do pass.

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

Senate Staff:Cathy Mayo (786-7304)

                  February 27, 1987

AS PASSED SENATE, FEBRUARY 27, 1987

BACKGROUND:

Auto theft is a relatively common occurrence within the United States; one out of every 159 registered vehicles were stolen in 1985.  From 1984 to 1985 auto theft in Washington State increased 17.5 percent.  This represents a significant financial loss to individual citizens and insurance companies.

Approximately 600 insurance companies are licensed to underwrite automobile insurance policies.  The top 20 companies in the state handle most of the auto insurance underwriting.

SUMMARY:

The Insurance Commissioner, jointly with the State Commission on Equipment, shall (1) review the availability of theft control devices; (2) establish a list of those devices that have proved effective; (3) set standards for the installation, maintenance and operation of such devices; and (4) determine a rate by which motor vehicle insurance premiums should be reduced on vehicles equipped with such devices.

Any insurance policy covering a motor vehicle or an operator licensed in the state qualifies for a premium rate reduction for the next and subsequent insurance periods when an approved anti-theft device is properly installed and maintained.

Fiscal Note:      available

Senate Committee - Testified: Captain Rick Jensen, Washington State Patrol; Foster Cronyn, Washington Insurers