HCS HB 735 -- UNINSURED MOTORISTS

SPONSOR:  Yates

COMMITTEE ACTION:  Voted "do pass" by the Committee on Insurance
Policy by a vote of 8 to 3.

This substitute establishes the Uninsured Motorist Stipulation of
Benefits Act of 2009.  An uninsured motorist involved in an
accident with a complying policyholder will be subject to a 100%
reduction of recovery for noneconomic damages.  The reduction
will not apply if it can be proven that the insured motorist
caused the accident while under the influence of drugs or alcohol
or if the insured motorist 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.

Any person who knowingly or intentionally produces, manufactures,
sells, or distributes a fraudulent insurance identification card
will be guilty of a class D felony.  A person who is knowingly or
intentionally in possession of a fraudulent insurance
identification card will be guilty of a class B misdemeanor and
if in an accident with a complying policyholder will be subject
to a 100% reduction of recovery for noneconomic losses.  Any
person who owns or operates a motor vehicle under the influence
of drugs or alcohol and is in an accident will be subject to a
100% reduction of recovery for noneconomic losses.

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 subsequent violation and will have his
or her motor vehicle impounded and driver's license suspended
until proof of financial responsibility is provided.  The
substitute allows the departments of Public Safety and Revenue to
enter into agreements with local law enforcement agencies to
collect and return to the Department of Revenue suspended or
revoked driver's licenses, motor vehicle registrations, and motor
vehicle license plates.  If financial responsibility is not
maintained, the vehicle owner must surrender the vehicle license
plate and registration certificate to the Department of Revenue
within five days after loss of financial responsibility.

In its discretion, the Department of Revenue can authorize
automobile insurers to use alternative methods to provide notice
of cancellation, refusal to renew, new policies written, and
renewals to the department for individuals whose financial
responsibility is through insurance coverage.  A registration
certificate cannot be reissued until satisfactory evidence of
financial responsibility has been filed.  The substitute
establishes an appeal process for individuals who at the time of
suspension have maintained financial responsibility.

Upon proof of financial responsibility, a reinstatement fee of
$200 must be paid by a vehicle owner who has not voluntarily
surrendered his or her license plates and registration
certificate.  Any person who willfully fails to return his or her
license plates and registration certificate will be guilty of a
misdemeanor and will be punished as follows:

(1)  For a first offense, a fine of not less than $100 but no
more than $200, or a 30-day imprisonment;

(2)  For a second offense, a fine of $200, a 30-day imprisonment,
or both; and

(3)  For a third or subsequent offense, imprisonment for not less
than 45 days but no more than six months.

A $5 fine payable to the Department of Revenue is established for
every day in which there is a lapse in the required financial
responsibility.  The total amount of the fine cannot exceed $200
for a first offense.

The substitute repeals the provisions regarding proof of
financial responsibility notification, suspension, and hearings
in Sections 303.041 and 303.042.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
$3,430,011 in FY 2010, $3,364,234 in FY 2011, and $3,465,162 in
FY 2012.  Estimated Income on Other State Funds of $385,650 in
FY 2010, $462,780 in FY 2011, and $462,780 in FY 2012.

PROPONENTS:  Supporters say that the bill deters people from
driving illegally, protects people on the state's roads, can
decrease automobile insurance costs, and addresses the issue of
fraudulent insurance cards.

Testifying for the bill were Representative Yates; Jim Rice; Bill
Bradt; State Farm Insurance Companies; The Travelers Companies,
Incorporated and Subsidiaries; American Insurance Association;
Missouri Insurance Coalition; Farmers Insurance Company; Harry
Gallagher, Property Casualty Insurers Association of America; and
Larry Case, Missouri Association of Insurance Agents.

OPPONENTS:  Those who oppose the bill say it will only affect a
small class of people, won't benefit those with insurance, and
should have a cap for noneconomic damages.

Testifying against the bill was Missouri Association of Trial
Attorneys.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am