SENATE BILL REPORT

SHB 1041

BYHouse Committee on Financial Institutions & Insurance (originally sponsored by Representatives Baugher, Inslee, Dellwo, Todd, Rayburn, Crane, Zellinsky, Jones, Nelson, Grant, Gallagher, R. King, Hine, Sayan, Padden, Walker, Ballard, Silver, May, Brooks, McLean, Dorn, Fuhrman, S. Wilson, Smith, Sprenkle, Jesernig, Winsley, P. King, R. Meyers, Brough, Chandler, Schoon, Rector, Wineberry, Patrick, Jacobsen, Kremen, Van Luven, D. Sommers, Betrozoff, Schmidt, Rasmussen, K. Wilson and Spanel)

Requiring motor vehicle insurance.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):March 17, 1989

Senate Staff:Walt Corneille (786-7416)

AS OF MARCH 14, 1989

BACKGROUND:

The financial responsibility law requires drivers and owners of motor vehicles to pay for damages caused by the negligent operation of a motor vehicle or face suspension of their driving privileges and possible suspension of the motor vehicle registration.  Operation of a motor vehicle without insurance is not prohibited.

If an automobile driver negligently causes an accident, the driver must arrange for payment of the damages and show future proof of financial responsibility by obtaining a vehicle liability insurance policy, self-insuring, posting a bond, or obtaining a certificate of deposit.

SUMMARY:

The Mandatory Automobile Liability Insurance Act is not intended to modify, amend, or invalidate existing automobile liability insurance policy terms, conditions, limitations, or exclusions.

No person may operate a motor vehicle subject to registration unless the person has a motor vehicle liability insurance policy, is self-insured,  is covered by a certificate of deposit, or is covered by a liability bond.

Operation of a motor vehicle without insurance is punishable by a fine of $200, which may be reduced to $50 if the person obtains insurance prior to a court hearing.  Second and subsequent violations are punishable by a fine of $400 which may be reduced to $200 if the person obtains insurance prior to a court hearing.

Insurance companies are required to give policyholders an insurance identification card containing information specified by the Department of Licensing.  At the policyholder's request, the insurer must provide cards to each person named as a driver under the policy and must provide a card for each vehicle.

The Department of Licensing must adopt rules specifying the type, style, and content of insurance identification cards to be used for proof of financial responsibility.  In adopting rules the department must consider the guidelines for identification cards developed by the Insurance Industry Committee on Motor Vehicle Administration.

A person operating a motor vehicle shall have an insurance identification card in possession and must show it to any law enforcement officer who requests it.

The provisions of this act do not apply to motor vehicles registered with the Washington Utilities and Transportation Commission as common or contract carriers.

Motor vehicle accident reports must contain insurance information of the drivers involved in the accident.

The Department of Licensing must notify the public of the requirements of the mandatory automobile liability insurance law at the time of vehicle registration.

The Director of the Department of Licensing must compile a report on the incidence of uninsured motorists with the Legislature after accumulating data for 12 months after the effective date of this act.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Effective Date:The bill takes effect January 1, 1990.