H-4201              _______________________________________________

                                                   HOUSE BILL NO. 2972

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Wineberry, Chandler, Dellwo, R. Meyers, Baugher, Spanel, Beck, Crane, Dorn, Locke, Nutley, Anderson, P. King, Inslee, Winsley, Zellinsky, Wang, Phillips, Jones and Betrozoff

Read first time 1/29/90 and referred to Committee on Financial Institutions & Insurance. Referred 2/2/90 to Committee on Appropriations.

AN ACT Relating to affordable automobile liability insurance; creating new sections; making an appropriation; providing an expiration date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     The legislature finds that responsible drivers of private passenger automobiles seeking to comply with the state's mandatory automobile liability insurance law are experiencing difficulty in obtaining affordable coverage.  The legislature has previously recognized the threat posed by uninsured drivers and finds that the difficulties being experienced by responsible drivers seeking basic coverage serve to impede progress towards the elimination of uninsured drivers from the state's roads.  It is the intent of the legislature to explore avenues by which affordable automobile liability insurance can be made more readily available to responsible drivers of private passenger automobiles.

NEW SECTION. Sec. 2.     (1) The insurance commissioner shall establish a committee to investigate and report to the legislature relative to means by which affordable automobile liability insurance, in the limits required by chapter 46.30 RCW, can be made available to responsible drivers of private passenger automobiles with records of safe driving performance, whether then insured or not, who cannot readily obtain such coverage through the normal insurance market.  The committee shall consider, among other items, the feasibility of an industry placement facility and a joint reinsurance association for the equitable distribution and placement of private passenger automobile drivers who meet the facility's underwriting standards among insurers, and shall make recommendations to the legislature as to how, if it is determined to be feasible, such a facility is to be established and maintained.  The committee may not study or recommend tort law reforms.

          (2) The committee shall also consider other mechanisms by which responsible private passenger automobile drivers with demonstrated records of safe driving performance can more readily obtain affordable automobile liability insurance and shall examine methods by which entities regulated under Title 48 RCW can be encouraged to make affordable coverage available to such drivers.

          (3) The committee shall be comprised of the insurance commissioner or a designee; one member of each of the four largest caucuses of the legislature, appointed by the appropriate presiding officer of the senate and house of representatives; representatives of urban, suburban, and rural private passenger automobile drivers; senior citizens; representatives of the automobile liability insurance industry; insurance agents; and insurance brokers.

          (4) The committee's findings and recommendations shall be submitted to the legislature no later than December 1, 1990.

          (5) Members of the committee shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 3.     This act shall expire January 15, 1991.

NEW SECTION. Sec. 4.     The sum of fifteen thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the insurance commissioner regulatory account to the office of the insurance commissioner for the purpose of funding the study under section 2 of this act.

NEW SECTION. Sec. 5.     This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.