HOUSE BILL REPORT

HB 868

BYRepresentatives Chandler, Lux, D. Sommers, C. Smith, Nealey, Holland, Zellinsky, Winsley, Betrozoff and May

Increasing financial responsibility requirements.

House Committe on Financial Institutions & Insurance

Majority Report:     The substitute be substituted therefor and the substitute bill do pass.  (14)

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

House Staff:John Conniff (786-7119)

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

MARCH 4, 1987

BACKGROUND:

In 1963, Washington adopted, in substance, the Uniform Motor Vehicle Safety Responsibility Act. The Washington statute, entitled "Financial Responsibility," requires drivers and owners of motor vehicles to pay for damages caused in accidents or face suspension of driving privileges and possible suspension of motor vehicle registration. After a driver has been in an accident the Department of Licensing will inquire as to whether or not the driver had a motor vehicle liability insurance policy in effect at the time of the accident. To qualify as insurance under the Act, the policy must have liability limits of $25,000 per person and $50,000 per accident for bodily injury or death, and $10,000 per accident for property damage. These limits were established in 1980.

SUMMARY:

SUBSTITUTE BILL:  The limits of liability for motor vehicle liability insurance under the Financial Responsibility are increased to $25,000 per accident for property damage.

SUBSTITUTE BILL COMPARED TO ORIGINAL: The increase in required liability insurance limits for bodily injury are deleted.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     None Presented.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     None Presented.

House Committee - Testimony Against: None Presented.