FINAL BILL REPORT

SSB 5499

                              C 353 L 89

BYSenate Committee on Financial Institutions & Insurance (originally sponsored by Senators von Reichbauer, Rasmussen, Sellar, Moore, Newhouse, Lee and Johnson)

Requiring motor vehicle liability insurance.

Senate Committee on Financial Institutions & Insurance

House Committe on Financial Institutions & Insurance

SYNOPSIS AS ENACTED

BACKGROUND:

The financial responsibility law requires drivers and owners of motor vehicles to pay for damages caused by the negligent operation of their motor vehicle or face suspension of 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 intent of the Legislature is to require all persons driving vehicles registered in this state to satisfy specified financial responsibility requirements.

It is not the intent of the Legislature to modify, amend or invalidate existing insurance contract terms, conditions, limitations or exclusions.

Every driver and registered owner of a motor vehicle must maintain financial responsibility.  Financial responsibility includes a motor vehicle liability policy in the amount of $25,000 per person and $50,000 per accident as well as $10,000 for property damage, or a bond, certificate of deposit, or certificate of self-insurance as defined in the Financial Responsibility Act.  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 vehicles, collectors' vehicles, motorcycles, mopeds, motor driven cycles and common carriers are exempt.

A person must provide evidence of financial responsibility when requested by a law enforcement officer.  Evidence of financial responsibility is accomplished by presenting an insurance identification card which must be provided by any insurance company issuing or renewing a motor vehicle liability policy.  The Department of Licensing must adopt rules specifying the type, content and style of the card.

Drivers or owners of motor vehicles registered in another state requiring financial responsibility or insurance must comply with the laws of that state while driving in Washington.

A violation of this act is a traffic infraction carrying a penalty of $250 per violation.  The court may reduce the penalty or require community service in lieu of the fine.

If a person provides proof satisfactory to the court that he or she had the required financial responsibility at the time of citation (pursuant to this act), the citation must be dismissed.  This proof may be submitted in writing prior to the hearing or by personal appearance at the hearing.

A person who knowingly provides false evidence of financial responsibility to a law enforcement officer or the court is guilty of a misdemeanor.

The insurance information contained on the insurance identification card must be included in an accident report.  The Department of Licensing must notify the public of the requirements of the act when issuing or renewing a vehicle registration. 

The Department of Licensing is required to compile records on uninsured motorists and must file a report with the Legislature after accumulating data for 12 months after the effective date of the act.

VOTES ON FINAL PASSAGE:

     Senate   34   13

     House 91  3 (House amended)

     Senate   44    1 (Senate concurred)

EFFECTIVE:January 1, 1990