HOUSE CONCURRENT RESOLUTION NO. 23
(By Delegates Rutledge, Beane and L. White)
(Originating in the Committee on Banking and Insurance)
Requesting the Joint Committee on Government and Finance to make a study of methods which would reduce the cost of automobile insurance in the State of West Virginia.
Whereas,
Insurance companies issuing motor vehicle insurance policies in the State of West Virginia offer coverage for the repair of damaged motor vehicles, the cost of repair or replacement parts, the cost of rental vehicles temporarily used as replacement vehicles and other such costs; and
Whereas,
Insurance companies issuing motor vehicle insurance policies in the State of West Virginia also offer mandatory uninsured motorist coverage and optional underinsured motorist coverage; and
Whereas,
Insurance companies issuing motor vehicle insurance policies in the State of West Virginia factor in the cost of automobile repairs, replacement parts, rental vehicle coverage, and the cost of uninsured and underinsured motor vehicle coverage in determining rates for the consumers of West Virginia; and
Whereas,
The Legislature is concerned that the current system of obtaining and paying for repair, replacement parts and rental vehicles contribute to increased costs to the consumers of this State which are reflected in increased insurance rates; and
Whereas,
The Legislature is concerned that the increase in the cost of providing uninsured and underinsured motorist coverage is also reflected in increased insurance rates for the consumers of this State; and
Whereas,
The Legislature has a duty to its citizens to investigate the basis for the costs of repairing or replacing damaged motor vehicles, to ensure that these costs are reasonable, fair and equitable, and to ensure that the resulting cost of automobile insurance is also reasonable, fair and equitable; and
Whereas,
The Legislature also has a duty to its citizens to investigate the cost of uninsured and underinsured motor vehicle insurance coverage and to ensure that these costs are reasonable, fair and equitable in establishing motor vehicle insurance rates in this State; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is hereby requested to review, examine and study the existing methods of obtaining and paying for repair parts for damaged motor vehicles; the methods and costs utilized in repair services; the current practice of obtaining replacement rental vehicles and the cost for such service; and the underlying cost basis for uninsured and underinsured motorist coverage; and determine whether such methods and costs are reasonable, fair and equitable, the feasibility of developing legislation to regulate such practices and control costs, whether any action can be taken to resolve increases in motor vehicle insurance rates resulting from such matters, and to make recommendations to the Legislature regarding the same; and, be it
Further Resolved,
That the Joint Committee on Government and Finance report to the regular session of the Legislature, 1995, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it
Further Resolved,
That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.