SENATE BILL REPORT

SB 5380

BYSenators Sellar, Moore, Johnson, Talmadge, Newhouse, Anderson, Lee, Saling, Cantu, Amondson, Rasmussen, Hayner, Wojahn, Smitherman, Sutherland, Bailey, Stratton, West, Barr and Kreidler

Mandating automobile insurance.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):January 26, 1989; February 23, 1989

Senate Staff:Walt Corneille (786-7416)

AS OF FEBRUARY 22, 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.  The 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:

Every driver and registered owner of a motor vehicle must maintain financial responsibility.  Financial responsibility includes a motor vehicle liability policy, a bond, a certificate of deposit, or a certificate of self insurance.  Vehicles owned by or driven by an agent of the United States, the state of Washington or a municipality or subdivision thereof are considered to have financial responsibility.  Antique or collectors' vehicles are exempt.

A policy issued or renewed as required by this act may contain conditions, limitations and exclusions approved by the Insurance Commissioner.  The stacking of policies is prohibited unless specifically provided for in the policy.

A person must provide evidence of financial responsibility when requested by a law enforcement officer.  Evidence of financial responsibility means the insurance or surety company's name and the number of the insurance policy or bond number, or the certificate of deposit number in the case of a self insurer or depositor.

Drivers or owners of motor vehicles registered in another state requiring financial responsibility or insurance must comply with the laws of the state in which the vehicle is registered while driving in this state.

A violation of this act is a traffic infraction carrying a penalty of $100 per violation.  The court may reduce the penalty or require community service in lieu of the fine.

A person may appear in court personally or in lieu of a personal appearance may submit written evidence of financial responsibility by mail.  Upon receipt of evidence acceptable to the court of financial responsibility at the time of the infraction, further proceedings must be dismissed.

A person who provides false evidence of financial responsibility to a law enforcement officer or the court is guilty of a misdemeanor punishable by a maximum fine of $500 and/or imprisonment of not more than 30 days.

Upon conviction of providing false evidence of financial responsibility, the Department of Licensing (DOL) must suspend the defendant's license for a period of one year.  The DOL may not return the defendant's license until he or she provides proof of future financial responsibility as required by RCW 46.29.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 25, 1989

Effective Date:January 1, 1990