AN ACT Relating to motor vehicle liability insurance; amending RCW 46.52.030 and 46.63.020; adding a new chapter to Title 46 RCW; and prescribing penalties.

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

NEW SECTION. Sec. 1. It is a privilege granted by the state to operate a motor vehicle upon the highways of this state. The legislature recognizes the threat that uninsured drivers are to the people of the state. In order to alleviate the threat posed by uninsured drivers, it is the intent of the legislature to require that no application for an original motor vehicle license or for renewal or reinstatement of a vehicle license will be approved unless accompanied by evidence of insurance as set forth in this chapter.

NEW SECTION. Sec. 2. A policy of insurance issued as required by this chapter or pursuant to chapter 46.29 RCW may contain conditions and exclusions commonly used in motor vehicle insurance policies, including but not limited to the following:

(1) Policy conditions--insured duties: (a) The insured, or any person authorized by the insured to do so, must provide the insurance company with written notice of the accident or loss as soon as reasonably practicable. The notice shall provide the name of the insured, the names and addresses of all persons involved, the hour, date, place, and facts of the accident or loss, and the names and addresses of any known witnesses.

(b) If a claim or suit is made against an insured, the insured must promptly forward to the company every demand, notice, or claim made and every summons or legal process received.

(c) The insured shall cooperate with the company in the defense of any claim presented under the policy and, when requested, shall assist the company in securing and providing evidence, attending and obtaining witnesses to attend pretrial proceedings, including any hearings and trials.

(d) The insured shall not, except at his or her own expense, voluntarily make any payment or assume any obligation to others, or incur any expense other than for first aid rendered at the scene of an accident.

(2) Policy limitations: (a) Unless otherwise specifically provided by the policy, the insurance coverage may be limited to the person, persons, or organizations defined as persons insured under the policy. In all cases coverage shall include the named insured. Coverage may further be limited to the vehicle described in the declarations and a newly acquired vehicle owned by the insured or a resident spouse if it replaces the described vehicle or is a newly acquired vehicle used for private passenger use for the sole benefit of the insured and the company is notified in writing of the acquisition within thirty days after its delivery and any additional premium is paid when due.

(b) The policy may also insure the operation by the named insured of a nonowned vehicle that is not owned by, registered in the name of, or furnished or available for regular or frequent use of the named insured, a spouse, or any person residing in the same household as the insured, if the use is within the scope and consent of the owner or person in lawful possession of the vehicle. The policy may also insure a temporary substitute vehicle if the vehicle replaces the described vehicle for a short period of time, with the consent of the owner, when the described vehicle is out of service due to its breakdown, repair, servicing, damage, or loss.

(c) The policy may provide that there is no coverage while a vehicle insured is rented to others or used to carry persons for hire, other than the use of a private passenger four-wheeled vehicle on a ride-sharing expense basis or while the vehicle is being repaired, serviced, or used by any person employed or engaged in any way in a car service, repair, or sales business, unless specifically otherwise provided. The policy need not apply to or cover a fellow employee while engaged in service by the same employer or for use by another employee in the same employer's business, nor need it apply to any employee of an insured in the course of his or her employment. The policy shall not apply to provide coverage to any insured for injury, death, or property damage to any member of an insured's family.

(d) The policy need not provide coverage for any damages for which the United States might be liable for the insured's use of any vehicle. It need not apply to any obligation of an insured under any form of worker's compensation or disability benefits law, nor for any liability assumed by the insured under any contract or agreement not agreed upon in writing by the insurer.

(e) The policy may further provide that if there is other liability coverage applicable to the loss, the policy applicable to the insured shall be excess over all other applicable and collectible insurance.

(f) An insurance policy for liability issued pursuant to this chapter may provide that there is no right of action against the issuing company until the terms of the policy have been met and until the amount of damages an insured is legally obligated to pay has been finally determined by judgment after trial and appeal, if any, or after agreement of settlement between the claimant and the company. Fees or expenses incurred by an insured in disputes between the insured and the company are not covered unless the policy specifically provides for such coverage.

NEW SECTION. Sec. 3. (1) On and after January 1, 1988, no application for an original motor vehicle license or for renewal or reinstatement of a motor vehicle license may be approved or validated unless the applicant certifies that a motor vehicle insurance policy or a surety bond issued by a company authorized to do business in this state or surplus line coverage under chapter 48.15 RCW is in effect in at least the amounts specified in RCW 46.29.490 on account of any accident in which the vehicle is involved. A certificate of deposit of money or securities, as provided in RCW 46.29.550, or a certificate of self-insurance, as provided in RCW 46.29.630, meets the requirements of this section.

(2) It is unlawful to wilfully falsify insurance information submitted to the department pursuant to subsection (1) of this section or section 5 of this act. Violation of this subsection is a misdemeanor, punishable by a fine of not to exceed one thousand dollars or thirty days imprisonment or both.

(3) The department shall annually verify on a random audit basis by negative verification the insurance information contained in at least one percent of all certifications received pursuant to subsection (1) of this section.

For purposes of this section, "negative verification" means that an insurer or surety shall be required to notify the department, upon inquiry by the department, only if the insurer or surety determines that no insurance policy or bond issued by it was in force at the time for which the department is inquiring.

NEW SECTION. Sec. 4. (1) On or after January 1, 1988, it is unlawful to operate a motor vehicle subject to registration under chapter 46.16 RCW in this state unless the vehicle is insured against liability as provided in RCW 46.29.090 or 46.29.490, by a bond under RCW 46.29.520, by a certificate of deposit under RCW 46.29.550, or by self-insurance under RCW 46.29.630.

(2) Violation of this section is a misdemeanor, punishable by a fine not to exceed one thousand dollars or thirty days imprisonment or both.

NEW SECTION. Sec. 5. An insurance carrier who issues a policy required by this chapter shall also furnish the policy holder with the carrier's name, the policy number, and the identification number of the vehicle insured under the policy. The policy holder shall transfer this information to the reverse side of the current vehicle registration or otherwise keep this information in written form in the vehicle.

NEW SECTION. Sec. 6. (1) A law enforcement officer requiring an operator of a motor vehicle subject to registration under chapter 46.16 RCW to produce for inspection a driver's license shall also require the operator to produce the information required by section 5 of this act.

(2) If the operator of the motor vehicle is unable to produce the information as required, the operator shall be charged with a violation of section 4 of this act. If the operator can demonstrate to the court that liability insurance was in effect on the vehicle at the time of the inspection, the charge against the driver shall be reduced to a traffic infraction of failure to show proof of insurance. The infraction is punishable by a fine of not more than fifty dollars.

NEW SECTION. Sec. 7. Sections 1 through 6 of this act do not apply to motor vehicles registered with the Washington utilities and transportation commission as common or contract carriers.

NEW SECTION. Sec. 8. Nothing in this chapter affects laws pertaining to cancellation and nonrenewal of insurance policies.

Sec. 9. Section 2, chapter 11, Laws of 1979 as last amended by section 1, chapter 30, Laws of 1981 and RCW 46.52.030 are each amended to read as follows:

(1) The driver of any vehicle involved in an accident resulting in injury to or death of any person or damage to the property of any one person to an apparent extent of three hundred dollars or more, shall, within twenty-four hours after such accident, make a written report of such accident to the chief of police of the city or town if such accident occurred within an incorporated city or town or the county sheriff or state patrol if such accident occurred outside incorporated cities and towns.

(2) If such accident was not investigated by a law enforcement officer, the original of such report shall be immediately forwarded by the authority receiving such report to the chief of the Washington state patrol at Olympia, Washington, and the second copy of such report to be forwarded to the department of licensing at Olympia, Washington.

(3) If such accident was investigated by a law enforcement officer, the original of each driver's report required by subsection (1) of this section shall be retained by the local law enforcement agency where the accident occurred, and the second copy shall be forwarded to the department of licensing at Olympia, Washington.

(4) Any law enforcement officer who investigates an accident for which a driver's report is required under subsection (1) of this section shall submit an investigator's report as required by RCW 46.52.070.

(5) The chief of the Washington state patrol may require any driver of any vehicle involved in an accident, of which report must be made as provided in this section, to file supplemental reports whenever the original report in his opinion is insufficient, and may likewise require witnesses of any such accident to render reports. For this purpose, the chief of the Washington state patrol shall prepare and, upon request, supply to any police department, coroner, sheriff, and any other suitable agency or individual, sample forms of accident reports required hereunder, which reports shall be upon a form devised by the chief of the Washington state patrol and shall call for sufficiently detailed information to disclose all material facts with reference to the accident to be reported thereon, including the location, the cause, the conditions then existing, and the persons and vehicles involved, personal injury or death, if any, the amounts of property damage claimed, the total number of vehicles involved, whether the vehicles were legally parked, legally standing, or moving, and whether such vehicles were occupied at the time of the accident. The accident report shall also contain sufficient information to permit verification of motor vehicle liability insurance. The department shall verify on a random audit basis the insurance information contained in at least five percent of the accident reports received pursuant to this section. Every required accident report shall be made on a form prescribed by the chief of the Washington state patrol and each authority charged with the duty of receiving such reports shall provide sufficient report forms in compliance with the form devised. The report forms shall be designated so as to provide that a copy may be retained by the reporting person.

Sec. 10. Section 3, chapter 186, Laws of 1986 and RCW 46.63.020 are each amended to read as follows:

Failure to perform any act required or the performance of any act prohibited by this title or an equivalent administrative regulation or local law, ordinance, regulation, or resolution relating to traffic including parking, standing, stopping, and pedestrian offenses, is designated as a traffic infraction and may not be classified as a criminal offense, except for an offense contained in the following provisions of this title or a violation of an equivalent administrative regulation or local law, ordinance, regulation, or resolution:

(1) RCW 46.09.120(2) relating to the operation of a nonhighway vehicle while under the influence of intoxicating liquor or a controlled substance;

(2) RCW 46.09.130 relating to operation of nonhighway vehicles;

(3) RCW 46.10.090(2) relating to the operation of a snowmobile while under the influence of intoxicating liquor or narcotics or habit-forming drugs or in a manner endangering the person of another;

(4) RCW 46.10.130 relating to the operation of snowmobiles;

(5) Chapter 46.12 RCW relating to certificates of ownership and registration;

(6) RCW 46.16.010 relating to initial registration of motor vehicles;

(7) RCW 46.16.160 relating to vehicle trip permits;

(8) RCW 46.20.021 relating to driving without a valid driver's license;

(9) RCW 46.20.336 relating to the unlawful possession and use of a driver's license;

(10) RCW 46.20.342 relating to driving with a suspended or revoked license;

(11) RCW 46.20.410 relating to the violation of restrictions of an occupational driver's license;

(12) RCW 46.20.416 relating to driving while in a suspended or revoked status;

(13) RCW 46.20.420 relating to the operation of a motor vehicle with a suspended or revoked license;

(14) Chapter 46.29 RCW relating to financial responsibility;

(15) Sections 3 and 4 of this act relating to motor vehicle liability insurance;

(16) RCW 46.44.180 relating to operation of mobile home pilot vehicles;

((~~(16)~~)) (17) RCW 46.48.175 relating to the transportation of dangerous articles;

((~~(17)~~)) (18) RCW 46.52.010 relating to duty on striking an unattended car or other property;

((~~(18)~~)) (19) RCW 46.52.020 relating to duty in case of injury to or death of a person or damage to an attended vehicle;

((~~(19)~~)) (20) RCW 46.52.090 relating to reports by repairmen, storagemen, and appraisers;

((~~(20)~~)) (21) RCW 46.52.100 relating to driving under the influence of liquor or drugs;

((~~(21)~~)) (22) RCW 46.52.130 relating to confidentiality of the driving record to be furnished to an insurance company and an employer;

((~~(22)~~)) (23) RCW 46.55.020 relating to engaging in the activities of a registered tow truck operator without a registration certificate;

((~~(23)~~)) (24) RCW 46.61.015 relating to obedience to police officers, flagmen, or fire fighters;

((~~(24)~~)) (25) RCW 46.61.020 relating to refusal to give information to or cooperate with an officer;

((~~(25)~~)) (26) RCW 46.61.022 relating to failure to stop and give identification to an officer;

((~~(26)~~)) (27) RCW 46.61.024 relating to attempting to elude pursuing police vehicles;

((~~(27)~~)) (28) RCW 46.61.500 relating to reckless driving;

((~~(28)~~)) (29) RCW 46.61.502 and 46.61.504 relating to persons under the influence of intoxicating liquor or drugs;

((~~(29)~~)) (30) RCW 46.61.520 relating to vehicular homicide by motor vehicle;

((~~(30)~~)) (31) RCW 46.61.522 relating to vehicular assault;

((~~(31)~~)) (32) RCW 46.61.525 relating to negligent driving;

((~~(32)~~)) (33) RCW 46.61.530 relating to racing of vehicles on highways;

((~~(33)~~)) (34) RCW 46.61.685 relating to leaving children in an unattended vehicle with the motor running;

((~~(34)~~)) (35) RCW 46.64.010 relating to unlawful cancellation of or attempt to cancel a traffic citation;

((~~(35)~~)) (36) RCW 46.64.020 relating to nonappearance after a written promise;

((~~(36)~~)) (37) RCW 46.64.048 relating to attempting, aiding, abetting, coercing, and committing crimes;

((~~(37)~~)) (38) Chapter 46.65 RCW relating to habitual traffic offenders;

((~~(38)~~)) (39) Chapter 46.70 RCW relating to unfair motor vehicle business practices, except where that chapter provides for the assessment of monetary penalties of a civil nature;

((~~(39)~~)) (40) Chapter 46.72 RCW relating to the transportation of passengers in for hire vehicles;

((~~(40)~~)) (41) Chapter 46.80 RCW relating to motor vehicle wreckers;

((~~(41)~~)) (42) Chapter 46.82 RCW relating to driver's training schools.

NEW SECTION. Sec. 11. Sections 1 through 8 of this act shall constitute a new chapter in Title 46 RCW.

NEW SECTION. Sec. 12. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.