Local gov. vehicle insurance

AN ACT Relating to underinsured motorist coverage for local 1
government employees; amending RCW 48.62.031; adding a new section to 2
chapter 4.92 RCW; and providing an effective date. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. A new section is added to chapter 4.92 RCW 5
to read as follows: 6
(1) Each local government shall provide underinsured coverage for 7
motor vehicles owned by the local government and operated or occupied 8
by an officer, employee, or agent of the local government in the 9
course of their employment. The underinsured coverage must provide 10
for the protection of an officer, employee, or agent of the local 11
government who is legally entitled to recover damages from an owner 12
or operator of an underinsured motor vehicle, hit-and-run motor 13
vehicle, or phantom vehicle because of bodily injury, death, or 14
personal property damage suffered by the officer, employee, or agent 15
and resulting from an accident while the officer, employee, or agent 16
was operating or was an occupant in a government-owned motor vehicle 17
in the course of their employment. The underinsured coverage required 18
by this section does not apply to third-party occupants of 19
government-owned vehicles. 20
S-0047.2
SENATE BILL 5107
State of Washington 69th Legislature 2025 Regular Session
By Senators Boehnke and Dozier
Prefiled 12/23/24. Read first time 01/13/25. Referred to Committee
on Local Government.
p. 1 SB 5107
(2) The coverage required by this section must have limits of at 1
least $25,000 per person and $50,000 per accident. 2
(3) The coverage required by this section may be provided by 3
contracts or agreements with private carriers, through self-insurance 4
and self-funding pursuant to chapter 48.62 RCW, or in any other 5
manner authorized by law. 6
(4) For purposes of this section: 7
(a) "Local government" includes any city, county, or other 8
subdivision of the state and any municipal corporation, quasi-9
municipal corporation, or special district within the state.10
(b) "Phantom vehicle" has the same meaning as in RCW 48.22.030.11
(c) "Third-party occupant" means a person who occupies a vehicle 12
owned, leased, or rented by the local government and who is not an 13
officer, employee, or agent of the local government.14
(d) "Underinsured coverage" has the same meaning as in RCW 15
48.22.030. 16
(e) "Underinsured motor vehicle" has the same meaning as in RCW 17
48.22.030. 18
Sec. 2. RCW 48.62.031 and 2019 c 26 s 3 are each amended to read 19
as follows: 20
(1) The governing body of a local government entity may 21
individually self-insure, may join or form a self-insurance program 22
together with other entities, including the board of pilotage 23
commissioners, and may jointly purchase insurance or reinsurance with 24
those other entities for property and liability risks, underinsured 25
coverage under section 1 of this act, and health and welfare benefits 26
only as permitted under this chapter. In addition, the entity or 27
entities may contract for or hire personnel to provide risk 28
management, claims, and administrative services in accordance with 29
this chapter. 30
(2) The agreement to form a joint self-insurance program shall be 31
made under chapter 39.34 RCW and may create a separate legal or 32
administrative entity with powers delegated thereto.33
(3) Every individual and joint self-insurance program is subject 34
to audit by the state auditor. 35
(4) If provided for in the agreement or contract established 36
under chapter 39.34 RCW, a joint self-insurance program may, in 37
conformance with this chapter: 38
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(a) Contract or otherwise provide for risk management and loss 1
control services; 2
(b) Contract or otherwise provide legal counsel for the defense 3
of claims and other legal services; 4
(c) Consult with the state insurance commissioner and the state 5
risk manager; 6
(d) Jointly purchase insurance and reinsurance coverage in such 7
form and amount as the program's participants agree by contract;8
(e) Obligate the program's participants to pledge revenues or 9
contribute money to secure the obligations or pay the expenses of the 10
program, including the establishment of a reserve or fund for 11
coverage; and 12
(f) Possess any other powers and perform all other functions 13
reasonably necessary to carry out the purposes of this chapter.14
(5) A self-insurance program formed and governed under this 15
chapter that has decided to assume a risk of loss must have available 16
for inspection by the state auditor a written report indicating the 17
class of risk or risks the governing body of the entity has decided 18
to assume. 19
(6) Every joint self-insurance program governed by this chapter 20
shall appoint the risk manager as its attorney to receive service of, 21
and upon whom shall be served, all legal process issued against it in 22
this state upon causes of action arising in this state.23
(a) Service upon the risk manager as attorney shall constitute 24
service upon the program. Service upon joint insurance programs 25
subject to chapter 30, Laws of 1991 sp. sess. can be had only by 26
service upon the risk manager. At the time of service, the plaintiff 27
shall pay to the risk manager a fee to be set by the risk manager, 28
taxable as costs in the action. 29
(b) With the initial filing for approval with the risk manager, 30
each joint self-insurance program shall designate by name and address 31
the person to whom the risk manager shall forward legal process so 32
served upon him or her. The joint self-insurance program may change 33
such person by filing a new designation. 34
(c) The appointment of the risk manager as attorney shall be 35
irrevocable, shall bind any successor in interest or to the assets or 36
liabilities of the joint self-insurance program, and shall remain in 37
effect as long as there is in force in this state any contract made 38
by the joint self-insurance program or liabilities or duties arising 39
therefrom. 40
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(d) The risk manager shall keep a record of the day and hour of 1
service upon him or her of all legal process. A copy of the process, 2
by registered mail with return receipt requested, shall be sent by 3
the risk manager, to the person designated for the purpose by the 4
joint self-insurance program in its most recent such designation 5
filed with the risk manager. No proceedings shall be had against the 6
joint self-insurance program, and the program shall not be required 7
to appear, plead, or answer, until the expiration of forty days after 8
the date of service upon the risk manager. 9
NEW SECTION. Sec. 3. This act takes effect January 1, 2026.10
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