Print Friendly SENATE BILL NO. 1390 – MV business, liability insurance
SENATE BILL NO. 1390
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S1390.......................................by COMMERCE AND HUMAN RESOURCES
MOTOR VEHICLES - Amends existing law to provide that insured operators of a
motor vehicle are responsible for primary insurance coverage and that the
owner of a business which sells at retail, rents, leases, repairs,
delivers, tests, parks or stores motor vehicles is responsible only for
02/04 Senate intro - 1st rdg - to printing
02/05 Rpt prt - to Com/HuRes
02/18 Rpt out - rec d/p - to 2nd rdg
02/19 2nd rdg - to 3rd rdg
02/24 3rd rdg - PASSED - 31-2-2
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
Hawkins, Ingram, Keough, King, Lee, Noh, Parry, Richardson, Riggs,
Risch, Sandy, Schroeder, Sorensen, Stennett, Sweeney, Thorne, Twiggs,
Absent and excused--Ipsen, Whitworth
Floor Sponsor - Keough
Title apvd - to House
Held for reconsideration
No reconsideration - to House
02/26 House intro - 1st rdg - to Bus
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fourth Legislature Second Regular Session - 1998
IN THE SENATE
SENATE BILL NO. 1390
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO MOTOR VEHICLES; AMENDING SECTION 49-1212, IDAHO CODE, TO PROVIDE
3 THAT EACH POLICY OF LIABILITY INSURANCE FOR OWNERS OF MOTOR VEHICLES
4 LICENSED AND ENGAGED IN THE BUSINESS OF SELLING AT RETAIL, RENTING, LEAS-
5 ING, REPAIRING, DELIVERING, TESTING, ROAD TESTING, PARKING OR STORING
6 MOTOR VEHICLES SHALL PROVIDE THAT AN INSURED OPERATOR SHALL PROVIDE PRI-
7 MARY INSURANCE COVERAGE AND THE OWNER SHALL PROVIDE EXCESS COVERAGE AND TO
8 MAKE TECHNICAL CORRECTIONS; AND AMENDING SECTION 49-2417, IDAHO CODE, TO
9 PROVIDE THAT INSURED OPERATORS ARE PRIMARILY LIABLE FOR CERTAIN ACTS AND
10 MOTOR VEHICLE OWNERS LICENSED AND ENGAGED IN THE BUSINESS OF SELLING AT
11 RETAIL, RENTING, LEASING, REPAIRING, DELIVERING, TESTING, ROAD TESTING,
12 PARKING OR STORING MOTOR VEHICLES SHALL BE RESPONSIBLE ONLY FOR EXCESS
14 Be It Enacted by the Legislature of the State of Idaho:
15 SECTION 1. That Section 49-1212, Idaho Code, be, and the same is hereby
16 amended to read as follows:
17 49-1212. EXPRESSED, PERMITTED AND IMPLIED PROVISIONS OF MOTOR VEHICLE
18 LIABILITY POLICY. (1) An owner's policy of liability insurance shall:
19 (a) Designate by explicit description or by appropriate reference all
20 motor vehicles with respect to which coverage is to be granted; and
21 (b) Insure the person named therein and any other person, as insured,
22 using any such described motor vehicles with the express or implied per-
23 mission of the named insured, against loss from the liability imposed by
24 law for damages arising out of the ownership, maintenance or use of the
25 motor vehicles within the United States of America or the Dominion of Can-
26 ada, subject to limits exclusive of interest and costs, with respect to
27 each motor vehicle, as provided in section 49-117, Idaho Code.
28 (2) An operator's policy of liability insurance shall insure the person
29 named as insured therein against loss from the liability imposed upon him by
30 law for damages arising out of the use by him of any motor vehicle not owned
31 by him, within the same territorial limits and subject to the same limits of
32 liability as are set forth in subsection (1) of this section with respect to
33 an owner's policy of liability insurance.
34 (3) A motor vehicle liability policy shall state the name and address of
35 the named insured, the coverage afforded by the policy, the premiun
36 premium charged therefor, the policy period and the limits
37 of liability, and shall contain an agreement or be indorsed that insurance is
38 provided in accordance with the coverage defined in this chapter as respects
39 bodily injury and death or property damage, or both, and is subject to all the
40 provisions of this chapter.
41 (4) A motor vehicle liability policy shall not insure any liability under
42 any workmen's compensation law as provided in title 72, Idaho Code, nor any
43 liability on account of bodily injury to or death of an employee of the
1 insured while engaged in the employment, other than domestic, of the insured,
2 or while engaged in the operation, maintenance or repair of any described
3 motor vehicle nor any liability for damage to property owned by, rented to, in
4 charge of or transported by the insured.
5 (5) Every motor vehicle liability policy shall be subject to the follow-
6 ing provisions which need not be contained therein:
7 (a) The policy may not be canceled or annulled as to any liability by any
8 agreement between the insurance carrier and the insured after the occur-
9 rence of any injury or damage covered by the motor vehicle liability pol-
11 (b) Satisfaction by the insured of a judgment for injury or damage shall
12 not be a condition precedent to the right or duty of the insurance carrier
13 to make payment on account of the injury or damage.
14 (c) The insurance carrier shall have the right to settle any claim cov-
15 ered by the policy, and if the settlement is made in good faith, the
16 amount shall be deductible from the limits of liability specified in sub-
17 section (1)(b) of this section.
18 (d) The policy and its written application, if any, and any rider or
19 indorsement which does not conflict with the provisions of this chapter
20 shall constitute the entire contract between the parties.
21 (6) Any policy which grants the coverage required for a motor vehicle
22 liability policy may also grant any lawful coverage in excess of or in addi-
23 tion to the coverage specified for a motor vehicle liability policy, and any
24 excess or additional coverage shall not be subject to the provisions of this
25 chapter. With respect to a policy which grants an excess of additional cover-
26 age the term "motor vehicle liability policy" shall apply only to that part of
27 the coverage which is required by this section.
28 (7) Any motor vehicle liability policy may provide that the insured shall
29 reimburse the insurance carrier for any payment the insurance carrier would
30 not have been obligated to make under the terms of the policy except for the
31 provisions of this chapter.
32 (8) Any motor vehicle liability policy may provide for the prorating of
33 the insurance with other valid and collectible insurance.
34 (9) The requirements for a motor vehicle liability policy may be ful-
35 filled by the policies of one (1) or more insurance carriers
36 which policies together meet the requirements of this chapter.
37 (10) Any binder issued pending the issuance of a motor vehicle liability
38 policy shall be deemed to fulfill the requirements for such a policy.
39 (11) Each policy of liability insurance issued in this state provid-
40 ing coverage to owners of motor vehicles who are licensed and engaged in the
41 business of selling at retail, renting, leasing, repairing, delivering, test-
42 ing, road testing, parking or storing motor vehicles shall provide the follow-
43 ing: that when an accident involves the operation of a motor vehicle by a per-
44 son other than the owner or an employee of the owner, and the operator of the
45 motor vehicle at the time of the accident is otherwise insured under an insur-
46 ance policy complying with the laws of this state, primary coverage as to all
47 coverages provided in the operator's policy shall be provided by the
48 operator's policy. Any policy under which the owner of the motor vehicle is
49 an insured shall afford only excess coverages.
50 SECTION 2. That Section 49-2417, Idaho Code, be, and the same is hereby
51 amended to read as follows:
52 49-2417. OWNER'S TORT LIABILITY FOR NEGLIGENCE OF ANOTHER -- SUBROGATION.
53 (1) Every owner of a motor vehicle is liable and responsible for the death of
1 or injury to a person or property resulting from negligence in the operation
2 of his motor vehicle, in the business of the owner or otherwise, by any person
3 using or operating the vehicle with the permission, expressed or implied, of
4 the owner, and the negligence of the person shall be imputed to the owner for
5 all purposes of civil damages. Provided, that the liability of owners
6 licensed and engaged in the business of selling at retail, renting, leasing,
7 repairing, delivering, testing, road testing, parking or storing motor vehi-
8 cles operated on the public highways, shall be limited as follows: such owners
9 shall be liable and responsible for the death of or injury to a person or
10 property from the negligent operation of a motor vehicle only to the extent
11 that the owner is an insured under a policy of insurance that provides cover-
12 ages in excess of the coverages provided by a policy of insurance of the motor
13 vehicle operator, who shall be primarily liable.
14 (2) The liability of an owner for imputed negligence imposed by the pro-
15 visions of this section and not arising through the relationship of principal
16 and agent or master and servant is limited to the amounts set forth under
17 "proof of financial responsibility" in section 49-117, Idaho Code.
18 (3) In any action against an owner for imputed negligence as imposed by
19 the provisions of this section the operator of the vehicle whose negligence is
20 imputed to the owner shall be made a defendant party if personal service of
21 process can be had upon that operator within Idaho. Upon recovery of a judg-
22 ment, recourse shall first be had against the property of the operator so
24 (4) In the event a recovery is had under the provisions of this section
25 against an owner for imputed negligence the owner is subrogated to all the
26 rights of the person injured and may recover from the operator the total
27 amount of any judgment and costs recovered against the owner. If the bailee of
28 an owner with the permission, expressed or implied, of the owner, permits
29 another to operate the motor vehicle of the owner, then the bailee and the
30 driver shall both be deemed operators of the vehicle of the owner, within the
31 meaning of subsections (3) and (4) of this section.
32 (5) Where two (2) or more persons are injured or killed in one (1) acci-
33 dent, the owner may settle or pay any bona fide claim for damages arising out
34 of personal injuries or death, whether reduced to a judgment or not, and the
35 payments shall diminish to the extent of the owners' total liability on
36 account of the accident. Payments so made, aggregating the full sum of fifty
37 thousand dollars ($50,000), shall extinguish all liability of the owner here-
38 under to the claimants and all other persons on account of the accident. Lia-
39 bility may exist by reason of imputed negligence, pursuant to this section,
40 and not arising through the negligence of the owner nor through the relation-
41 ship of principal and agent nor master and servant.
42 (6) If a motor vehicle is sold under a contract of conditional sale
43 whereby the title to the motor vehicle remains in the vendor, the vendor or
44 his assignee shall be deemed an owner within the provisions of this section.
STATEMENT OF PURPOSE
The purpose of this legislation is to provide that liability insurance policies of licensed automobile dealerships
be written to state that; regarding dealership owned vehicles which are involved in an accident while being
operated by an insured driver; that the drivers liability insurance coverage shall become primary, and the
dealerships shall become secondary.
CONTACT: Denise Brennan
Idaho Automobile Dealers Association