Title: An act relating to authorizing a fee for the limited purpose of reviewing driving records of existing policyholders for changes.

Sponsors: Representatives Hudgins, Jarrett, Hatfield, Mielke, Wallace and Nixon.

Brief Summary of Substitute Bill

• Allows the Department of Licensing to enter into agreements with insurance companies for the purpose of reviewing driving records of existing policyholders.

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 27 members: Representatives Murray, Chair; Rockefeller, Vice Chair; G. Simpson, Vice Chair; Ericksen, Ranking Minority Member; Jarrett, Assistant Ranking Minority Member; Armstrong, Bailey, Campbell, Clibborn, Cooper, Dickerson, Flannigan, Hankins, Hatfield, Hudgins, Kristiansen, Lovick, Mielke, Morris, Nixon, Rodne, Romero, Shabro, Sullivan, Wallace, Wood and Woods.

The Department of Licensing (DOL) may provide certified abstracts of driving records covering three years or less to prospective or current insurance companies upon request. The fee for each abstract is $5. Insurance companies or their agents may use the driving record exclusively for its own motor vehicle or life insurance underwriting purposes and may not divulge any of the information to a third party.

The director of the DOL is authorized to enter into a contractual agreement with an insurance company or its agent for the purpose of reviewing the driving records of existing policy holder for changes occurring to the record during a specified period of time. The fee for this service must be set at a level that will not result in a net loss to the state.

The substitute adds the requirement that the fee for this service must be set at a level that will not result in a net loss to the state.

Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of session in which bill is passed.

Testimony For: The DOL has expressed a concern that they do not currently have the statutory authority to charge this fee. This bill will help us become more efficient and accurate in our underwriting functions. It should result in increased connection between driving safety and equitable rates. Other states allow for this service and no other state has experienced a revenue loss because of this type of monitoring.

Persons Testifying: Representative Hudgins, prime sponsor; Mike Woodin, Mike Woodin Construction; and John Chatelaine, Explore Information Services.