HOUSE BILL REPORT
ESSB 5499
As Amended by the House
BYSenate Committee on Financial Institutions & Insurance (originally sponsored by Senators von Reichbauer, Rasmussen, Sellar, Moore, Newhouse, Lee and Johnson)
Requiring motor vehicle liability insurance.
House Committe on Financial Institutions & Insurance
Majority Report: Do pass with amendments. (15)
Signed by Representatives Dellwo, Chair; Zellinsky, Vice Chair; Chandler, Ranking Republican Member; Anderson, Baugher, Beck, Crane, Day, Dorn, Inslee, P. King, Nutley, Schmidt, K. Wilson and Winsley.
House Staff:John Conniff (786-7119)
AS PASSED HOUSE APRIL 12, 1989
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 suspension of motor vehicle registration. The act does not prohibit the operation of a motor vehicle without insurance; rather, the act requires that drivers pay for the damages they cause.
If an automobile driver negligently causes an accident and does not possess a qualifying automobile insurance policy or is not otherwise exempted from the act, the Department of Licensing notifies the driver that driving privileges will be suspended and vehicle registration will be prohibited unless the driver complies with two main requirements. These requirements are, first that the driver somehow agree to pay for damages and second, that the driver show proof of future ability to pay for damage, e.g., the driver must purchase insurance.
SUMMARY:
The mandatory automobile liability insurance act is not intended to modify, amend, or invalidate existing automobile liability insurance policy terms, conditions, limitations, or exclusions.
No person may operate a motor vehicle subject to registration unless the person has a motor vehicle liability insurance policy, the person is self-insured, the person is covered by a certificate of deposit, or the person is covered by a liability bond.
Operation of a motor vehicle without insurance is punishable by a fine of $250. The court may reduce the fine or may order community service in lieu of a fine.
Insurance companies are required to give policyholders an insurance identification card containing information specified by the Department of Licensing. the The insurer must provide a card for each vehicle insured.
The Department of Licensing must adopt rules specifying the type, style, and content of insurance identification cards to be used for proof of financial responsibility. In adopting rules the department must consider the guidelines for identification cards developed by the insurance industry committee on motor vehicle administration.
Whenever a person operates a motor vehicle, the person must have in his or her possession, an insurance identification card and must show it to any law enforcement officer who requests it. Out of state drivers must show proof of compliance with their home state law requiring insurance.
The provisions of this act do not apply to antique or collector cars, government vehicles, motorcycles, or common carriers registered with the Utilities and Transportation Commission.
A person who knowingly provides false proof of insurance is guilty of a misdemeanor.
Motor vehicle accident reports must contain insurance information of the drivers involved in the accident.
The Department of Licensing must notify the public of the requirements of the mandatory automobile liability insurance law at the time of vehicle registration.
The director of the Department of Licensing must compile a report on the incidence of uninsured motorists with the legislature after accumulating data for months after the effective date of this act.
Fiscal Note: Available.
Effective Date:The bill takes effect on January 1, 1990.
House Committee ‑ Testified For: None Presented.
House Committee - Testified Against: Al Thornton, Mike Kapphahn, Farmers Insurance; Robin Torner, Abate of Washington; Donald Kinney, Evergreen Legal Services; and Jean Leonard, State Farm Insurance.
House Committee - Testimony For: None Presented.
House Committee - Testimony Against: Mandatory auto insurance laws do not work and cost taxpayers money. Such a law may cause the public to drop necessary insurance coverage based upon a false sense of security. Such a law particularly hurts the poor and unemployed who cannot afford to buy insurance.