SENATE BILL REPORT

SHB 868

BYHouse Committee on Financial Institutions & Insurance (originally sponsored by Representatives Chandler, Lux, D. Sommers, C. Smith, Nealey, Holland, Zellinsky, Winsley, Betrozoff and May)

Increasing financial responsibility requirements.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions

Senate Hearing Date(s):April 2, 1987

Senate Staff:Phil Sorensen (786-7470)

AS OF APRIL 1, 1987

BACKGROUND:

In 1963 Washington adopted, in substance, the Uniform Motor Vehicle Safety Responsibility Act. The Washington statute, entitled "Financial Responsibility," requires drivers and owners of motor vehicles to pay for damages caused in accidents or face suspension of driving privileges and possible suspension of motor vehicle registration. After a driver has been in an accident the Department of Licensing will inquire as to whether or not the driver had a motor vehicle liability insurance policy in effect at the time of the accident. To qualify as insurance under the Act, the policy must have liability limits of $25,000 per person and $50,000 per accident for bodily injury or death, and $10,000 per accident for property damage. These limits were established in 1980.

SUMMARY:

The limits of liability for motor vehicle liability insurance under the Financial Responsibility are increased to $25,000 per accident for property damage.

Fiscal Note:    none requested