TO: MEMBERS OF THE SENATE

TRANSPORTATION COMMITTEE

DATE: March 1, 2001

SUBJECT: Proposed Strike Everything Amendment to S.B. 1139

Purpose

Requires political subdivisions engaging in hired transportation activities to carry underinsured and uninsured motorist coverage.

Background

Underinsured motorist coverage is designed to protect an individual against a motorist who is negligent and lacks sufficient coverage. Uninsured motorist coverage is designed with a similar intent but covers an individual against a negligent motorist who has no insurance. Each of these varieties of motorist insurance are mutually exclusive and will cover the policy holder while riding in a public motor vehicle. There has been concern, however, that noninsured passengers riding in government operated motor vehicles are not covered in the event of an accident.

Currently, statute does not require state or municipal passenger-carrying motor vehicles to maintain underinsured or uninsured coverage. It does require privately owned bus and taxi companies to maintain uninsured motorist coverage of at least $300,000, but does not require their operators to carry underinsured motorist coverage. The $300,000 amount covers bodily injury but does not cover property damage.

According to the Joint Legislative Budget Committee, there is no anticipated fiscal impact to the state general fund associated with this legislation.

Provisions

1. Requires an operator of a political subdivision’s motor vehicle, bus or van transporting passengers to maintain uninsured and underinsured motorist coverage.

2. Defines political subdivision.

3. Provides for a general effective date.

Amendments Adopted by Committee

Adopted strike everything amendment.

Senate Action

BI 2/15/01 DPA/SE 5-0-1

TRANS 3/1/01 DPA/SE 6-0-2

GA/NS/ as