MINUTES OF THE

      SENATE COMMITTEE ON COMMERCE AND LABOR

 

      Sixty-seventh Session

      May 27, 1993

 

 

 

The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 9:30 a.m., on Thursday, May 27, 1993, in Room 227 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Meeting Agenda.  Exhibit B is the Attendance Roster.

 

 

COMMITTEE MEMBERS PRESENT:

 

Senator Randolph J. Townsend, Chairman

Senator Sue Lowden, Vice Chairman

Senator Ann O'Connell

Senator Mike McGinness

Senator Raymond C. Shaffer

Senator Leonard V. Nevin

Senator Lori L. Brown

 

 

STAFF MEMBERS PRESENT:

 

Beverly Willis, Committee Secretary

Brian Davie, Senior Research Analyst

 

 

 

OTHERS PRESENT:

 

Teresa P. Rankin, Commissioner, Department of Insurance

John Wiles, Advocate for Insurance Customers

Raymond Sparks, Chief, Registration Division, Department of Motor       Vehicles and Public Safety

Bob Feldman, President, Auto Insurance America

 

Senator Townsend opened the meeting stating it would be a discussion on auto insurance.

 

First to testify was Teresa P. Rankin, Commissioner, Department of Insurance.  Ms. Rankin introduced Exhibit C, a memo answering automobile insurance questions from members of the committee.  She explained the contents of the memo.  Senator Townsend, Ms. Rankin and John Wiles, Advocate for Insurance Customers, had further discussion on this exhibit.   

 

Senator Townsend introduced Exhibit D, 1992 Statistics for Nevada Registered Vehicles.  Ms. Rankin and Senator Townsend discussed the statistics quoted in this exhibit.  Raymond Sparks, Chief, Registration Division, Department of Motor     Vehicles and Public Safety and Senator Townsend discussed the findings on Exhibit D.  Senator Townsend stated according to statistics shown on Exhibits C and D, the public (in Nevada) does a better job of staying insured while driving than a number of other states.  Ms. Rankin and Mr. Sparks concurred. 

 

 

At this point Bob Feldman, President, Auto Insurance America, testified.  He presented Exhibit E, a report on no-fault auto insurance reform in Michigan.  Mr. Feldman stated that those designated as "high risk" people were the sort of people it was his job to insure and to offer payment plans and rates that would be affordable.  He stated he had been working with no-fault insurance for a number of years.  Mr. Feldman went on to note a number of reasons why insurance rates are so high in Nevada.

 

Senator Brown asked if fraud is proved would restitution be made to the insurance company.  Mr. Feldman replied it would rarely happen.  One reason being that it was very difficult to prove fraud where someone's pain was concerned.  He referred to Exhibit E, stating he felt a Michigan type of no-fault insurance system, the only first party, property damage and injury type of system in the United States was the type that should be considered.

 

Senator Townsend stated he would have to close the hearing, since there were time constraints.  He did say, however, the subject of no-fault insurance would, hopefully, be addressed in the very near future.  In order to accommodate those from Las Vegas, Senator Townsend stated he would try to arrange a teleconference for the next meeting.

 

There being no further business, the meeting was adjourned at

10:50 a.m.

 

 

 

 

 

 

            RESPECTFULLY SUBMITTED:

 

 

 

                                    

            Beverly Willis,

            Committee Secretary

 

 

 

APPROVED BY:

 

 

 

 

                                     

 Senator Randolph J. Townsend, Chairman

 

 

DATE:                                

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Senate Committee on Commerce and Labor

May 27, 1993

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