HOUSE BILL REPORT

SSB 5115

As Amended by the House

BYSenate Committee on Transportation (originally sponsored by Senators Bender, Peterson, Owen, McDermott, Kreidler, Newhouse, Vognild, Bauer, Saling, DeJarnatt, Stratton, Barr, Lee, Garrett, Rasmussen, Moore, Johnson and Deccio)

Requiring motor vehicle liability insurance.

House Committe on Financial Institutions & Insurance

Majority Report:  Do pass with amendment.  (12)

      Signed by Representatives Lux, Chair; Zellinsky, Vice Chair; Betrozoff, Chandler, Crane, Day, Dellwo, Ferguson, P. King, Meyers, Niemi and Winsley.

House Staff:John Conniff (786-7119)

Rereferred House Committee on Ways & Means/Appropriations

Majority Report:  Do pass with amendment by Committee on Ways & Means and not by Committee on Financial Institutions & Insurance.  (17)

      Signed by Representatives Belcher, Braddock, Brekke, Bristow, Ebersole, Fuhrman, Grant, Grimm, Hine, McLean, McMullen, Niemi, Peery, Sayan, Silver, H. Sommers and Sprenkle.

Minority Report:  Do not pass.  (1)

      Signed by Representative Locke, Chair.

House Staff:      Susan Kavanaugh (786-7145)

AS PASSED HOUSE APRIL 17, 1987

BACKGROUND:

At the present time a driver is not required to have an automobile insurance policy or bond for payment of damages caused by the operation of a motor vehicle until after the driver has caused an accident resulting in property damage of $300 or more, death or bodily injury.

Since automobile liability insurance is not compulsory until after an accident, many people are operating motor vehicles without any liability insurance and, because of their economic situation, are unable or unwilling to compensate victims for damages suffered in an automobile accident.  This often results in responsible drivers bearing the costs caused by financially irresponsible drivers.

Persons convicted of driving while intoxicated (DWI) usually have increased insurance rates.  Many of these drivers elect to drive without insurance, rather than incur the financial burdens of higher insurance rates.  As a result, many high risk drivers are operating motor vehicles without having liability insurance to protect innocent victims.

SUMMARY:

After January 1, 1987, a motor vehicle license will not be issued or renewed unless the applicant certifies to the Department of Licensing that automobile insurance on the vehicle is in effect.  An applicant must have an insurance policy, bond, surplus line coverage, a certificate of deposit of money, or a certificate of self-insurance.  The minimum property damage liability insurance that can be purchased is raised from $10,000 to $25,000.

It is a misdemeanor to operate a vehicle requiring a license without motor vehicle liability insurance.

It is a misdemeanor to willfully falsify insurance information submitted to the department.

The vehicle owner is required to write the appropriate insurance information on the back of the vehicle registration form or keep the information in written form in the vehicle.

Proof of motor vehicle liability insurance must be carried in the vehicle at all times.  A police officer is required to check for proof of insurance if he requires the operator of the vehicle to produce a driver's license.  If the operator does not have proof of insurance in the vehicle, but can demonstrate to the court that an insurance policy was in effect at the time of inspection, the charge shall be reduced to a traffic infraction with a fine not to exceed $50.  If the operator of the vehicle is unable to produce or demonstrate proof of insurance, he is guilty of a misdemeanor.

Vehicles licensed with the Washington Utilities and Transportation Commission are not subject to the act.  Taxicabs are excluded from the provisions of the bill.

Fiscal Note:      Requested April 6, 1987.

House Committee ‑ Testified For:    (Financial Institutions & Insurance)  Prime Sponsor.

(Ways & Means/Appropriations)  None Presented.

House Committee - Testified Against:      (Financial Institutions & Insurance)  None Presented.

(Ways & Means/Appropriations)  None Presented.

House Committee - Testimony For:    (Financial Institutions & Insurance)  This legislation is necessary to effectively ensure that drivers carry liability insurance.  Provisions that would have had a significant fiscal impact were removed from the bill in the Senate.

(Ways & Means/Appropriations)  None Presented.

House Committee - Testimony Against:      (Financial Institutions & Insurance)  None Presented.

(Ways & Means/Appropriations)  None Presented.