SENATE BILL REPORT

SHB 2651

BYHouse Committee on Financial Institutions & Insurance (originally sponsored by Representatives R. Meyers, Dellwo, Chandler, Crane, P. King and Anderson)

Regulating personal injury protection insurance.

House Committe on Financial Institutions & Insurance

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 22, 1990

Senate Staff:Gerard S. Poliquin (786-7403)

AS OF FEBRUARY 19, 1990

BACKGROUND:

Most automobile insurance companies offer medical coverage, also referred to as personal injury protection (PIP) coverage, as a part of a comprehensive auto insurance policy.  The Insurance Commissioner has adopted limited rules setting basic standards for the amount of coverage to be offered by insurers.

SUMMARY:

Every motor vehicle liability insurance policy must provide PIP coverage unless the purchaser rejects the coverage in writing.  This requirement applies to liability insurance covering any private passenger automobile or motorcycle registered or principally garaged in this state.

The PIP coverage must provide for reasonable and necessary medical and hospital expenses, including certain mandated benefits, incurred within three years of the injury up to $15,000.  The coverage must also provide up to $2,000 for funeral expenses, up to $15,000 for benefits for loss of income, and up to $5,000 for benefits for loss of services.

The Insurance Commissioner is granted authority to adopt rules establishing minimum standards for PIP coverage.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Effective Date:January 1, 1991