SENATE BILL REPORT

SHB 920

BYHouse Committee on Financial Institutions & Insurance (originally sponsored by Representatives Zellinsky, Lux, S. Wilson and Taylor)

Providing specific insurance rate-making criteria for passenger cars with safety and anti-theft devices.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions

Senate Hearing Date(s):April 2, 1987; April 3, 1987

Majority Report:     Do pass.

     Signed by Senators Moore, Chairman; Bender, Vice Chairman; Fleming, Metcalf, Pullen, von Reichbauer.

Senate Staff:Phil Sorensen (786-7470)

                April 3, 1987

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS, APRIL 3, 1987

BACKGROUND:

In 1984 the Legislature adopted an act requiring children under the age of five to be properly secured in a car seat whenever riding in a motor vehicle.  Last year the Legislature adopted a mandatory seat belt law that requires all motor vehicle occupants to wear seat belts except when riding in certain types of motor vehicles or when a licensed physician certifies that the person is unable to wear a seat belt.  Some motor vehicle liability insurers intend to offer discounts for certain types of coverages to reflect potential savings from the wearing of seat belts.  Some motor vehicle liability insurers also offer a premium discount for the comprehensive coverage of an auto policy when the insured vehicle contains an anti-theft device.  The most common discount given is 5 percent for alarms and 15 percent for disabling devices.

SUMMARY:

Insurance companies issuing motor vehicle liability insurance policies must consider anticipated changes in losses resulting from policyholders' use of seat belts and installation of anti-theft devices.  The insurer must report these changes in a rate filing so that the Insurance Commissioner can use the information in deciding whether to approve a rate.  Insurers must take into consideration changes in losses from the use of running lights and from the insuring of more vehicles than drivers under the same policy.

Fiscal Note:    none requested

Senate Committee - Testified:   Representative Paul Zellinsky