H-965                _______________________________________________

                                                    HOUSE BILL NO. 310

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Zellinsky, Winsley, Haugen, Day, Bristow and Lux

Read first time 1/23/87 and referred to Committee on Financial Institutions & Insurance.

AN ACT Relating to motor vehicle insurance; and adding a new section to chapter 48.22 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 48.22 RCW to read as follows:

          Every insurer that writes collision and comprehensive coverage for loss or damage to a motor vehicle shall provide, upon the insured's request, coverage that will pay, in the event of loss or damage, an amount sufficient to satisfy any outstanding indebtedness secured by and incurred in conjunction with the financing of the purchase of a new motor vehicle.

          Nothing in this section prohibits an insurer from denying or excluding such coverage where the insured or someone acting on the insured's behalf acts in a fraudulent manner to obtain or file a claim under such coverage.