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S1127aa.....................................by COMMERCE AND HUMAN RESOURCES
LEGAL SERVICE EXPENSE PLANS - Adds to existing law to define the term
"legal service expense plan"; to exempt legal service expense plans from
regulation as insurance; and to specify code provisions applicable to legal
service expense plans.
02/12 Senate intro - 1st rdg - to printing
02/13 Rpt prt - to Com/HuRes
02/22 Rpt out - to 14th Ord
Rpt out amen - to engros
02/23 Rpt engros - 1st rdg - to 2nd rdg as amen
02/26 2nd rdg - to 3rd rdg as amen
03/05 3rd rdg as amen - PASSED - 24-11-0
AYES -- Andreason, Branch, Brandt, Bunderson, Danielson, Darrington,
Davis, Deide, Frasure, Goedde, Hawkins, Ingram, Ipsen, Keough,
King-Barrutia, Lee, Lodge, Richardson, Risch, Sandy, Sims, Sorensen,
Thorne, Wheeler
NAYS -- Boatright, Burtenshaw, Cameron, Dunklin Geddes, Noh,
Schroeder, Stegner, Stennett, Whitworth, Williams
Absent and excused -- None
Floor Sponsor -- Goedde
Title apvd - to House
03/06 House intro - 1st rdg - to Jud
03/16 Rpt out - rec d/p - to 2nd rdg as amen
03/19 2nd rdg - to 3rd rdg as amen
Rls susp - PASSED - 62-3-5
AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
Bradford, Bruneel, Callister, Campbell, Clark, Collins, Crow, Cuddy,
Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet,
Jones, Kellogg, Kendell, Lake, Loertscher, Mader, Marley, Meyer,
Montgomery, Mortensen, Moss, Moyle, Pearce, Pischner, Pomeroy,
Raybould, Ridinger, Roberts, Robison, Schaefer, Shepherd, Smith,
Smylie, Stevenson, Stone, Swan, Tilman, Trail, Wheeler, Young, Mr.
Speaker
NAYS -- Deal, Langford, McKague
Absent and excused -- Chase, Kunz, Sali, Sellman, Wood
Floor Sponsor -- Clark
Title apvd - to Senate
03/20 To enrol
03/21 Rpt enrol - Pres signed
Sp signed
03/22 To Governor
03/23 Governor signed
Session Law Chapter 127
Effective: 03/23/01
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1127
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO LEGAL SERVICE EXPENSE PLANS; AMENDING CHAPTER 1, TITLE 41, IDAHO
3 CODE, BY THE ADDITION OF A NEW SECTION 41-114B, IDAHO CODE, TO DEFINE THE
4 TERM "LEGAL SERVICE EXPENSE PLAN," TO EXEMPT LEGAL SERVICE EXPENSE PLANS
5 FROM REGULATION AS INSURANCE AND TO SPECIFY CODE PROVISIONS APPLICABLE TO
6 LEGAL SERVICE EXPENSE PLANS; AND DECLARING AN EMERGENCY.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Chapter 1, Title 41, 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 41-114B, Idaho Code, and to read as follows:
11 41-114B. LEGAL SERVICE EXPENSE PLANS. (1) The term "legal service expense
12 plan," as used in this section, means a contract or agreement for a stated
13 consideration between a plan administrator and a member or group of members,
14 whereby the member pays the administrator, in advance or by installments, for
15 the receipt of professional legal services, advice or representation. Such
16 services in Idaho shall be provided by attorneys at law licensed in Idaho. The
17 attorneys shall be prepaid under a contract or agreement with the administra-
18 tor to provide specified legal services for the express benefit of the plan
19 member.
20 (2) The marketing, sale, contracting, issuance of a contract, plan admin-
21 istration and delivery of services under a legal service expense plan are
22 exempt from all other provisions of title 41, Idaho Code. In addition, such
23 plans shall not be characterized as "insurance" when marketed in Idaho.
24 (3) Legal service expense plans, but not law firm retainer agreements,
25 shall be subject to the provisions of the Idaho consumer protection act, chap-
26 ter 6, title 48, Idaho Code, and attorneys providing service shall be subject
27 to the provisions relating to the regulation of the practice of law under
28 title 3, Idaho Code.
29 SECTION 2. An emergency existing therefor, which emergency is hereby
30 declared to exist, this act shall be in full force and effect on and after its
31 passage and approval.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
Moved by Goedde
Seconded by Risch
IN THE SENATE
SENATE AMENDMENT TO S.B. NO. 1127
1 AMENDMENT TO SECTION 1
2 On page 1 of the printed bill, in line 19, following "member" insert: "and
3 shall agree to render services to the member when required".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1127, As Amended
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO LEGAL SERVICE EXPENSE PLANS; AMENDING CHAPTER 1, TITLE 41, IDAHO
3 CODE, BY THE ADDITION OF A NEW SECTION 41-114B, IDAHO CODE, TO DEFINE THE
4 TERM "LEGAL SERVICE EXPENSE PLAN," TO EXEMPT LEGAL SERVICE EXPENSE PLANS
5 FROM REGULATION AS INSURANCE AND TO SPECIFY CODE PROVISIONS APPLICABLE TO
6 LEGAL SERVICE EXPENSE PLANS; AND DECLARING AN EMERGENCY.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Chapter 1, Title 41, 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 41-114B, Idaho Code, and to read as follows:
11 41-114B. LEGAL SERVICE EXPENSE PLANS. (1) The term "legal service expense
12 plan," as used in this section, means a contract or agreement for a stated
13 consideration between a plan administrator and a member or group of members,
14 whereby the member pays the administrator, in advance or by installments, for
15 the receipt of professional legal services, advice or representation. Such
16 services in Idaho shall be provided by attorneys at law licensed in Idaho. The
17 attorneys shall be prepaid under a contract or agreement with the administra-
18 tor to provide specified legal services for the express benefit of the plan
19 member and shall agree to render services to the member when required.
20 (2) The marketing, sale, contracting, issuance of a contract, plan admin-
21 istration and delivery of services under a legal service expense plan are
22 exempt from all other provisions of title 41, Idaho Code. In addition, such
23 plans shall not be characterized as "insurance" when marketed in Idaho.
24 (3) Legal service expense plans, but not law firm retainer agreements,
25 shall be subject to the provisions of the Idaho consumer protection act, chap-
26 ter 6, title 48, Idaho Code, and attorneys providing service shall be subject
27 to the provisions relating to the regulation of the practice of law under
28 title 3, Idaho Code.
29 SECTION 2. An emergency existing therefor, which emergency is hereby
30 declared to exist, this act shall be in full force and effect on and after its
31 passage and approval.
STATEMENT OF PURPOSE
RS 11011
Because of the breadth and vagueness of the definition of the term
"insurance" in section 41-102, Idaho Code, an uncertainty has
existed since 1974 as to whether legal service expense plans are to
be regulated by the Department of Insurance. Despite the existence
of these service plans in the state, no plan has ever sought to
qualify as an insurance company. This bill clarifies that these
plans are or should be regulated by the Attorney General under the
consumer protection statutes and by the Idaho State Bar Association
under practice of law statutes, and are not to be marketed as
"insurance."
FISCAL IMPACT
There should be no impact on the General Fund or other state
government funds.
Contact
Name: John Goedde
Phone: 332-1355
STATEMENT OF PURPOSE/FISCAL NOTE S 112