S.625 - Auto Choice Reform Act of 1997105th Congress (1997-1998)
Summary: S.625 — 105th Congress (1997-1998)
Introduced in Senate (04/22/1997)
Auto Choice Reform Act of 1997 - Affords a person the right to choose between: (1) a personal protection system (personal system) providing insurance for that person and any resident relative or dependent; and (2) a tort maintenance system (tort system) providing for the form of motor vehicle insurance otherwise required in the State in which the person is insured.
Sets forth personal system minimum requirements, including regarding waiver of certain tort rights. Supersedes State laws inconsistent with this Act.
Sets forth tort system minimum requirements, allowing State laws (not inconsistent with this Act) regarding uninsured or underinsured motorist coverage.
Provides for: (1) the effect of a person's choice on resident relatives and dependents; (2) underwriting rules to encourage choice uniformity within a household; and (3) the failure of a person to choose.
Requires States to maintain a program to inform consumers (comparing the two systems) about costs, benefits, rights, and obligations.
(Sec. 6) Requires that a person who chooses: (1) a tort system and is involved in an accident be subject to tort law for injury except that, based on fault, the person may claim against (and be claimed against by) a personal system person only for uncompensated economic loss; and (2) a personal system be compensated only for economic loss, without regard to fault. Provides for the handling of accidents involving: (1) persons with personal protection and unlawfully uninsured persons; and (2) motorists under the influence of alcohol or illegal drugs or engaging in intentional misconduct.
(Sec. 8) Declares that this Act does not apply to a State if: (1) the State so elects; or (2) the State finds that average premiums will not be reduced by at least 30 percent for persons choosing the personal system.