SENATE BILL REPORT

SB 5392

BYSenators Bender, Rasmussen, Vognild, Owen, Moore, Talmadge, Sutherland, Madsen, Hansen and Bauer

Requiring motor vehicle liability 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:

It is declared a privilege to operate a motor vehicle upon state highways.  The Legislature recognizes the threat posed by uninsured drivers and intends that no motor vehicle license will be approved unless evidence of insurance is provided.

After December 31, 1989 a motor vehicle license will not be issued or renewed unless the applicant certifies to the Department of Licensing that automobile insurance, a bond, surplus line coverage, a certificate of deposit, or a certificate of self insurance is in effect.

It is a misdemeanor to operate a vehicle without the required motor vehicle liability insurance, certificate of deposit, or self insurance.  The misdemeanor is punishable by a fine of no greater than $1,000 and/or 30 days imprisonment.

It is a misdemeanor to willfully falsify insurance information submitted to the department.

A policy for motor vehicle insurance may contain an exclusion for intrafamily liability and any other conditions, limitations or exclusions the Insurance Commissioner approves for issuance in this state now or in the future.

The vehicle owner is required to write the appropriate insurance information on the back of the vehicle registration form or keep the information in written form in the vehicle.

Proof of motor vehicle liability insurance must be carried in the vehicle at all times.  A police officer is required to check for proof of insurance if he requires the operator of the vehicle to produce a driver's license.  If the operator does not have proof of insurance in the vehicle, but can demonstrate to the court that an insurance policy was in effect at the time of inspection, the charge shall be reduced to a traffic infraction with a fine not to exceed $50.

Vehicles licensed with the Washington Utilities and Transportation Commission are not subject to the act.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 25, 1989