H-1037.1
HOUSE BILL 1579
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State of Washington | 64th Legislature | 2015 Regular Session |
By Representatives Sawyer, G. Hunt, and Shea
Read first time 01/23/15. Referred to Committee on Business & Financial Services.
AN ACT Relating to motor vehicle underinsured coverage; amending RCW
48.22.030; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that according to recent national data based upon the ratio of claims made by motorists injured by uninsured drivers to claims made by motorists injured by insured drivers, at least one in six motorists in Washington state is estimated to be uninsured. In addition, many drivers may be underinsured. Though these drivers have obtained the mandatory minimum amount of insurance, they may cause bodily injury and property damage that exceeds the mandatory minimums. The Washington state insurance commissioner does not collect data regarding the number of motorists in Washington who either have no insurance or who have insufficient insurance to cover claims for bodily injury or property damage. While consumers may exercise the option not to purchase coverage for bodily injury or property damage caused by uninsured or underinsured motorists, it is the intent of the legislature that information be made available to consumers regarding the risk of opting out of such insurance so that a decision to opt out may be an informed one. The legislature further finds that the development of a standardized form regarding a choice to opt out of coverage for uninsured and underinsured motorists, written in plain language and including a plain statement of the risk, and the collection and reporting of data by the Washington state insurance commissioner regarding the prevalence of uninsured and underinsured motorists involved in accidents in Washington state would be a useful method for providing such important information to consumers.
Sec. 2. RCW 48.22.030 and 2009 c 549 s 7106 are each amended to read as follows:
(1) "Underinsured motor vehicle" means a motor vehicle with respect to the ownership, maintenance, or use of which either no bodily injury or property damage liability bond or insurance policy applies at the time of an accident, or with respect to which the sum of the limits of liability under all bodily injury or property damage liability bonds and insurance policies applicable to a covered person after an accident is less than the applicable damages which the covered person is legally entitled to recover.
(2) No new policy or renewal of an existing policy insuring against loss resulting from liability imposed by law for bodily injury, death, or property damage, suffered by any person arising out of the ownership, maintenance, or use of a motor vehicle shall be issued with respect to any motor vehicle registered or principally garaged in this state unless coverage is provided therein or supplemental thereto for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of underinsured motor vehicles, hit-and-run motor vehicles, and phantom vehicles because of bodily injury, death, or property damage, resulting therefrom, except while operating or occupying a motorcycle or motor-driven cycle, and except while operating or occupying a motor vehicle owned or available for the regular use by the named insured or any family member, and which is not insured under the liability coverage of the policy. The coverage required to be offered under this chapter is not applicable to general liability policies, commonly known as umbrella policies, or other policies which apply only as excess to the insurance directly applicable to the vehicle insured.
(3) Except as to property damage, coverage required under subsection (2) of this section shall be in the same amount as the insured's third party liability coverage unless the insured rejects all or part of the coverage as provided in subsection (4) of this section. Coverage for property damage need only be issued in conjunction with coverage for bodily injury or death. Property damage coverage required under subsection (2) of this section shall mean physical damage to the insured motor vehicle unless the policy specifically provides coverage for the contents thereof or other forms of property damage.
(4)(a) A named insured or spouse may reject, in writing, underinsured coverage for bodily injury or death, or property damage, and the requirements of subsections (2) and (3) of this section shall not apply. If a named insured or spouse has rejected underinsured coverage, such coverage shall not be included in any supplemental or renewal policy unless a named insured or spouse subsequently requests such coverage in writing. The requirement of a written rejection under this subsection shall apply only to the original issuance of policies issued after July 24, 1983, and not to any renewal or replacement policy. When a named insured or spouse chooses a property damage coverage that is less than the insured's third party liability coverage for property damage, a written rejection is not required.
(b) The commissioner must adopt rules requiring the development and use of a standard form that must be signed by an insured who chooses to opt out of underinsured coverage. The form must be written in plain language and must inform the insured of the risk of opting out of underinsured coverage.
(c) The commissioner must collect data regarding the number of motorists who are involved in accidents in Washington state and who are underinsured or uninsured, and the commissioner must use this data to periodically update the standard form developed pursuant to (b) of this subsection regarding the risk of opting out of underinsured coverage.
(5) The limit of liability under the policy coverage may be defined as the maximum limits of liability for all damages resulting from any one accident regardless of the number of covered persons, claims made, or vehicles or premiums shown on the policy, or premiums paid, or vehicles involved in an accident.
(6) The policy may provide that if an injured person has other similar insurance available to him or her under other policies, the total limits of liability of all coverages shall not exceed the higher of the applicable limits of the respective coverages.
(7)(a) The policy may provide for a deductible of not more than three hundred dollars for payment for property damage when the damage is caused by a hit-and-run driver or a phantom vehicle.
(b) In all other cases of underinsured property damage coverage, the policy may provide for a deductible of not more than one hundred dollars.
(8) For the purposes of this chapter, a "phantom vehicle" shall mean a motor vehicle which causes bodily injury, death, or property damage to an insured and has no physical contact with the insured or the vehicle which the insured is occupying at the time of the accident if:
(a) The facts of the accident can be corroborated by competent evidence other than the testimony of the insured or any person having an underinsured motorist claim resulting from the accident; and
(b) The accident has been reported to the appropriate law enforcement agency within seventy-two hours of the accident.
(9) An insurer who elects to write motorcycle or motor-driven cycle insurance in this state must provide information to prospective insureds about the coverage.
(10) An insurer who elects to write motorcycle or motor-driven cycle insurance in this state must provide an opportunity for named insureds, who have purchased liability coverage for a motorcycle or motor-driven cycle, to reject underinsured coverage for that motorcycle or motor-driven cycle in writing.
(11) If the covered person seeking underinsured motorist coverage under this section was the intended victim of the tort feasor, the incident must be reported to the appropriate law enforcement agency and the covered person must cooperate with any related law enforcement investigation.
(12) The purpose of this section is to protect innocent victims of motorists of underinsured motor vehicles. Covered persons are entitled to coverage without regard to whether an incident was intentionally caused. However, a person is not entitled to coverage if the insurer can demonstrate that the covered person intended to cause the event for which a claim is made under the coverage described in this section. As used in this section, and in the section of policies providing the underinsured motorist coverage described in this section, "accident" means an occurrence that is unexpected and unintended from the standpoint of the covered person.
(13) "Underinsured coverage," for the purposes of this section, means coverage for "underinsured motor vehicles," as defined in subsection (1) of this section.
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