S-1699               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 5495

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senate Committee on Financial Institutions & Insurance (originally sponsored by Senators Bender, Owen, McMullen, Hansen, Conner and DeJarnatt)

Read first time 2/28/89.

AN ACT Relating to motor vehicle insurance rate reductions; amending RCW 48.19.460, 48.19.470, and 48.19.490; adding a new section to chapter 43.24 RCW; and providing an effective date.

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

        Sec. 1.  Section 1, chapter 235, Laws of 1986 as amended by section 1, chapter 377, Laws of 1987 and RCW 48.19.460 are each amended to read as follows:

          Any schedule of rates or rating plan for ((automobile)) motor vehicle liability and physical damage insurance submitted to or filed with the commissioner shall provide for ((an appropriate)) a reduction in premium charges except for underinsured motorist and comprehensive coverage ((for those insureds who are fifty-five years of age and older, for a two-year period after successfully completing)).  The reduction shall apply for a three-year period to those insureds who successfully complete a motor vehicle accident prevention or defensive driving course meeting the criteria of the department of licensing with a minimum of eight hours, or additional hours as determined by rule of the department of licensing.  An eight-hour ((program-learning)) programmed learning, self-instruction course shall be made available in areas in which a classroom course meeting the criteria of this section is not offered.  The classroom course may be conducted by a public or private agency approved by the department.  The self-instruction course shall be conducted by an agency approved by the department to conduct classroom courses under this section.  Premium reductions authorized under this section are not available to persons who have been convicted of a moving motor vehicle violation for a period of three years after the conviction.  Additionally, the premium reductions provided by this section shall cease for a period of three years for a person who is convicted of a moving vehicle violation after receiving the reduction.  The  benefits of this section do not apply to a person attending a defensive driving or accident prevention course ordered by a court or the department of licensing.

        Sec. 2.  Section 2, chapter 235, Laws of 1986 and RCW 48.19.470 are each amended to read as follows:

          All insurance companies writing automobile liability and physical damage insurance in this state shall allow ((an appropriate)) a reduction in premium charges except for underinsured motorist and comprehensive coverage to all eligible persons subject to RCW 48.19.460.

        Sec. 3.  Section 4, chapter 235, Laws of 1986 and RCW 48.19.490 are each amended to read as follows:

          Each participant shall take an approved course every ((two)) three years to continue to be eligible for the discount on insurance.

NEW SECTION. Sec. 4.  A new section is added to chapter 43.24 RCW to read as follows:

          The department of licensing, after consultation with the state traffic safety commission and the insurance commissioner, shall adopt rules for the approval of defensive driving courses under RCW 48.19.460.

NEW SECTION. Sec. 5.     This act shall take effect January 1, 1990, and applies to all schedules of rates and rating plans filed after December 31, 1989.