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House approves bill raising statutory standards for self-funded vehicle coverage
Summary
The House passed HB 278 to align statute with insurance department practice for self-funded fleet coverage, recognizing higher asset and deposit requirements for large fleets (e.g., $200,000 plus $100 per vehicle); the bill passed and will go to the Senate.
Representative Howard presented House Bill 278, which amends statutory standards for self-funded motor vehicle insurance coverage. He noted that the existing statutory standard allowed a "single limit" concept of $40,000 and that twice that amount ($80,000) could technically qualify a person or corporation for self-funded status. The Department of Insurance had adopted a rule requiring higher security for large fleets (e.g., $200,000 plus $100 per vehicle).
Howard said the bill updates statute to "recognize reality" for large fleets and avoids simply disapproving the department's rule by instead amending statute to authorize more realistic coverage levels. He affirmed an amendment to protect state agencies that use the risk management agency arrangement so they would not need to provide the deposit.
The House opened and closed voting and the clerk reported the bill received 72 affirmative votes and 0 negative votes; the measure will be forwarded to the Senate.
