H-1803              _______________________________________________

                                           SUBSTITUTE HOUSE BILL NO. 240

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Crane, Winsley and Unsoeld)

Read first time 2/16/87 and passed to Committee on Rules.

AN ACT Relating to motor vehicle liability insurance; and adding a new section to chapter 48.18 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 48.18 RCW to read as follows:

          (1) Any private passenger automobile or motorcycle insurance policy written or renewed after January 1, 1988, that provides comprehensive or collision coverage shall also provide liability coverage except under the following circumstances:

          (a) Liability coverage need not be provided during any month that the vehicle is not used upon the highways of this state; and

          (b) Liability coverage need not be provided for coverage insuring only the interest of a secured party in a vehicle, and placed by such secured party or its agent after the vehicle owner has failed to obtain or maintain insurance coverage required by any financing agreement.

          (2) Whenever a policy is issued or renewed that provides only collision or comprehensive coverage for a private passenger automobile or motorcycle, the insurer or the insurer's agent shall promptly notify the vehicle owner that such policy will not provide coverage to protect the owner or operator of the vehicle from liability.

          (3) The commissioner may adopt all rules necessary so that the notice required by this section is given promptly and in a manner that will clearly alert the vehicle owner of the potential need for and the absence of liability coverage.