View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
H0653...........................................................by BUSINESS LIABILITY INSURANCE - MOTOR VEHICLE DEALERS - Adds to existing law relating to liability insurance to require dealers and vehicle manufacturers to obtain liability insurance as a condition of licensure; to require minimum coverage amounts; and to require that certificates of insurance be filed with the Idaho Transportation Department. 02/10 House intro - 1st rdg - to printing 02/13 Rpt prt - to Bus 02/28 Rpt out - rec d/p - to 2nd rdg 03/01 2nd rdg - to 3rd rdg 03/06 3rd rdg - PASSED - 63-3-4 AYES -- Anderson, Andrus, Barraclough, Bastian, Bayer, Bedke, Bell, Bilbao, Black, Block, Bolz, Brackett, Bradford, Cannon, Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge, Field(18), Field(23), Hart, Harwood, Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smylie, Snodgrass, Stevenson, Trail, Wills, Mr. Speaker NAYS -- Barrett, McKague, Wood Absent and excused -- Boe, Garrett, Sayler, Smith(24) Floor Sponsor - Nonini Title apvd - to Senate 03/07 Senate intro - 1st rdg - to Com/HuRes 03/15 Rpt out - rec d/p - to 2nd rdg 03/16 2nd rdg - to 3rd rdg 03/20 3rd rdg - PASSED - 33-0-2 AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai, McGee, McKenzie, Pearce, Richardson, Schroeder, Stegner, Stennett, Werk, Williams NAYS -- None Absent and excused -- Marley, Sweet Floor Sponsor - Goedde Title apvd - to House 03/21 To enrol 03/22 Rpt enrol - Sp signed 03/23 Pres signed - To Governor 03/24 Governor signed Session Law Chapter 208 Effective: 07/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 653 BY BUSINESS COMMITTEE 1 AN ACT 2 RELATING TO LIABILITY INSURANCE; AMENDING CHAPTER 16, TITLE 49, IDAHO CODE, BY 3 THE ADDITION OF A NEW SECTION 49-1608A, IDAHO CODE, TO REQUIRE DEALERS AND 4 VEHICLE MANUFACTURERS TO OBTAIN LIABILITY INSURANCE AS A CONDITION OF 5 LICENSURE, TO REQUIRE MINIMUM COVERAGE AMOUNTS AND TO REQUIRE THAT CERTIF- 6 ICATES OF INSURANCE BE FILED WITH THE IDAHO TRANSPORTATION DEPARTMENT. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Chapter 16, Title 49, Idaho Code, be, and the same is 9 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 10 ignated as Section 49-1608A, Idaho Code, and to read as follows: 11 49-1608A. DEALER AND MANUFACTURER LIABILITY INSURANCE. Every dealer and 12 vehicle manufacturer shall, as a condition of issuance or renewal of a dealer 13 or vehicle manufacturer license by the department, continuously provide insur- 14 ance against loss resulting from liability imposed by law for bodily injury or 15 death or damage to property suffered by any person arising out of the owner- 16 ship, maintenance or use of vehicles owned by or under the control of the 17 licensee and used in conduct of the business of the dealer or vehicle manufac- 18 turer. Such insurance shall be in an amount not less than twenty-five thousand 19 dollars ($25,000) because of bodily injury to or death of one (1) person in 20 any one (1) accident and, subject to the limit for one (1) person, in the 21 amount of fifty thousand dollars ($50,000) because of bodily injury to or 22 death of two (2) or more persons in any one (1) accident, and in the amount of 23 fifteen thousand dollars ($15,000) because of injury to or destruction of 24 property of others in any one (1) accident. The applicant for a dealer or 25 vehicle manufacturer license shall maintain on file with the department a cer- 26 tificate of liability insurance, issued by an insurance or surety company 27 authorized to do business in this state or by an authorized agent of such com- 28 pany, in such form as may be prescribed by the director of the department of 29 insurance as set forth in section 49-1231, Idaho Code.
STATEMENT OF PURPOSE RS 15928 This legislation provides that a dealer or vehicle manufacturer, as a condition of licensure by the Idaho Department of Transportation, must maintain insurance against liability for loss resulting from bodily injury, death, or property damage arising out of the ownership, maintenance or use of vehicles owned by, or under the control of, the licensee and used in the conduct of the licensee's business. The legislation does not create any additional liability on the part of the licensee, but does assure that if liability arises out of the use of the vehicle by the licensee, or the licensee's customers, there will be at least a minimal amount of insurance coverage for the injured party. The amount of insurance required is the same minimum amount required for other vehicle owners pursuant to Idaho's financial responsibility law. This legislation requires that the licensee file with the Department the certificate of liability insurance. The casualty insurance company is not required to take any action with reference to notifying the Department of the existence, change in status, or cancellation of the licensee's insurance policy. FISCAL NOTE There will be no fiscal impact on state or local funds. Contact: Rep. Bob Nonini 332-1000 Bill Roden Automobile Dealers Association 336-7930 STATEMENT OF PURPOSE/FISCAL NOTE H 653