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| SPONSOR: | Larranaga | DATE TYPED: | 3-9-99 | HB | 97 | ||
| SHORT TITLE: | Motor Vehicle Insurance Responsibility Act | SB | |||||
| ANALYST: | Segura | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY99 | FY2000 | FY99 | FY2000 | ||
| NFI | |||||
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates/Conflicts with/Companion to/Relates to HB59, SB117,SB129, SB130, and SB126
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
Public Regulation Commission (PRC)
SUMMARY
Synopsis of Bill
House Bill 97 allows anyone, insured or uninsured, to recover damages from the other driver's insurance company. The bill bars certain drivers from recovering damages for non-economic losses. Drivers who are intoxicated or driving without proper licenses, for example, are barred from claiming damages for pain and suffering.
Significant Issues
The bill allows recovery for non-economic losses only if the tortfeasor's actions were "willful and wanton". Assuming that the claimant is otherwise authorized to claim damages, mere negligence will not sustain a claim for non-economic loss. The effective date is applicable to accidents occurring on or after October 1,1999.
FISCAL IMPLICATIONS
House Bill 97 does not contain an appropriation and has no fiscal impact.
ADMINISTRATIVE IMPLICATIONS
Minimal, only temporary increase to allow insurance companies to file auto insurance rates and rules.
OTHER SUBSTANTIVE ISSUES
According to TRD, the bill does not address awards and recovery for punitive damages. The omission of punitive damages leaves open the possibility that a person barred from recovering noneconomic losses may nevertheless recover punitive damages.
The TRD also states that any measure to restrict awards to uninsured motorists undoubtedly will be challenged in the courts.
RMS/gm