SENATE BILL REPORT

SB 5516

BYSenators Sellar and Vognild

Requiring motor vehicle liability insurance.

Senate Committee on Transportation

Senate Hearing Date(s):January 21, 1988; February 3, 1988

Majority Report:  That Substitute Senate Bill No. 5516 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; Barr, DeJarnatt, Garrett, Hansen, McMullen, Metcalf, Sellar.

Senate Staff:Brad Lovaas (786-7307)

                  February 4, 1988

AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 3, 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 of $500 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.  A 1986 Department of Licensing survey of accident reports showed that 12 to 17 percent of Washington motorists are uninsured.

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:

Every driver and registered owner is required to maintain financial responsibility.  Financial responsibility is considered to be:  a motor vehicle liability policy, a bond, a certificate of deposit, certificate of self-insurance, or a lawful agent of the federal government or state, county, municipality, or a subdivision.

Motor vehicle liability policies may contain conditions, limitations and exclusions approved by the insurance commissioner.  The insurance commissioner approval is conclusive presumption that the policy is valid and consistent with public policy.

The stacking of motor vehicle policies is prohibited.

Any insurer shall provide the policy identification number to the insured for the purposes of verification of financial responsibility.

Any driver of a vehicle required to be registered in this state shall provide a law enforcement officer with proof of financial responsibility upon request.  A violation is a traffic infraction and a monetary penalty of $100 per violation is set.  Enforcement is a secondary violation, i.e., the driver must be detained for another suspected violation.

The court may reduce the monetary penalty or mandate community service.  A person with a violation for not having proof of financial responsibility may have the violation dismissed if the person can prove to the court clerk that such financial responsibility was in effect at the time of the violation.

Any person who provides false evidence of financial responsibility either to law enforcement or the court clerk is guilty of a misdemeanor, punishable by a fine not exceeding $500 or imprisonment of not more than 30 days in the county jail, or both the fine and imprisonment.

Providing false evidence of financial responsibility is made a misdemeanor.

EFFECT OF PROPOSED SUBSTITUTE:

The language which gave the insurance commissioner conclusive authority to approve conditions, limitations and exclusions is deleted.

It is clarified that a motor vehicle liability policy is one that is defined in Chapter 46.29 RCW rather than RCW 46.29.490, the financial responsibility law.

An effective date of January 1, 1989 is established.

Antique vehicle owners are exempt from the mandatory insurance provisions.

It is clarified that the court has authority to dismiss the infraction rather than the clerk of the court.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Dan Wolfe, Safeco (against); Kim Putnam, Trial Lawyers (against); Harold Foss, State Farm (against)