HCS HB 1155 -- UNINSURED MOTORISTS

SPONSOR:  Yates

COMMITTEE ACTION:  Voted "do pass" by the Committee on Insurance
Policy by a vote of 14 to 0.

This substitute establishes the Uninsured Motorist Stipulation of
Benefits Act of 2006.  An uninsured motorist involved in an
accident with a complying policyholder will waive any right to
recover damages for a non-economic loss and punitive damages.
Recovery will be limited to any economic loss.  The waiver will
not apply if it can be proven that the insured motorist caused
the accident and was under the influence of drugs or alcohol or
is convicted of vehicular assault or homicide.  Passengers in the
uninsured motor vehicle will not be subject to the waiver.  The
substitute will not apply to a motorist whose insurance policy
was terminated for failure to pay the premium unless notice of
termination for failure to pay was provided by the insurer at
least 30 days prior to the accident.

If a motor vehicle owner fails to maintain financial
responsibility as required in Section 303.160, RSMo, the owner
will be guilty of a class B misdemeanor for a first offense and a
class A misdemeanor for a second or subsequent violation and will
have his or her motor vehicle impounded and driver's license
suspended.  The first-time reinstatement fee for a suspended
driver's license due to the owner not maintaining financial
responsibility on a motor vehicle is increased from $20 to $100.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $32,269
in FY 2007, $0 in FY 2008, and $0 in FY 2009.  Estimated Income
on Other State Funds of $751,650 to $765,800 in FY 2007, $901,980
in FY 2008, and $901,980 in FY 2009.

PROPONENTS:  Supporters say that the bill will limit the ability
of an illegally uninsured owner and operator of a motor vehicle
from claiming non-economic losses from a tortfeasor.  No recovery
for damages when the person is not following the law has been
suggested as a remedy to redress systemic fairness issues,
encourage the purchase of insurance, and reduce insurance costs.
Responsible motorists must purchase increasingly expensive
uninsured motor vehicle insurance in order to be fully protected
for accidents caused by uninsured drivers.

Testifying for the bill were Representative Yates; State Farm
Insurance Companies; Missouri Insurance Coalition; Property
Casualty Insurers Association of America; and American Insurance
Association.

OPPONENTS:  Those who oppose the bill say it will reward
irresponsible behavior.  If someone uninsured that is properly
operating a vehicle is involved in an accident with an insured
motorist that is not paying attention to the road, the insured
motorist can get out of paying for the non-economic loss just
because he or she hit someone without insurance.  The correct way
to fix this problem is to enforce the laws already on the books.

Testifying against the bill was Missouri Association of Trial
Attorneys.

Marc Webb, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:42 am