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SENATE BILL NO. 1435

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Daily Data Tracking History

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S1435.......................................by COMMERCE AND HUMAN RESOURCES
INSURANCE AGENTS - Adds to existing law to prohibit licensed insurance
agents, brokers or consultants from soliciting or receiving loans from
customers except financial institutions and family members.

02/11    Senate intro - 1st rdg - to printing
02/12    Rpt prt - to Com/HuRes

Bill Text

S1435


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1435

                        BY COMMERCE AND HUMAN RESOURCES COMMITTEE

 1                                        AN ACT
 2    RELATING TO REGULATION OF INSURANCE; AMENDING  CHAPTER  13,  TITLE  41,  IDAHO
 3        CODE,  BY  THE  ADDITION OF A NEW SECTION 41-1325, IDAHO CODE, TO PROHIBIT
 4        LICENSED INSURANCE AGENTS,  BROKERS  OR  CONSULTANTS  FROM  SOLICITING  OR
 5        RECEIVING LOANS FROM CERTAIN CUSTOMERS.

 6    Be It Enacted by the Legislature of the State of Idaho:

 7        SECTION  1.  That  Chapter  13,  Title 41, Idaho Code, be, and the same is
 8    hereby amended by the addition thereto of a  NEW SECTION  ,  to  be
 9    known and designated as Section 41-1325, Idaho Code, and to read as follows:

10        41-1325.  PROHIBITED  LOANS  FROM  CUSTOMERS.  A licensed insurance agent,
11    broker or consultant may not solicit a loan of money or securities  or  borrow
12    money  or securities from a customer unless the customer is a financial insti-
13    tution or immediate family member. For purposes  of  this  section,  the  term
14    "immediate  family  member"  means  a  parent, grandparent, spouse, sibling or
15    child, related by blood or marriage.

Statement of Purpose / Fiscal Impact

    





                            STATEMENT OF PURPOSE
    
    Insurance agents, brokers and consultants should not be permitted to take 
    advantage of the position of trust they have with their customers. They should not be 
    allowed to engage in self-dealing by obtaining loans from customers. An exception is 
    reasonable for customers who are financial institutions or close family members.
    
    This bill would prevent licensed insurance agents, brokers or consultants from 
    soliciting or receiving loans from their customers. Exceptions are made if the 
    customers are financial institutions or close family members.
    
    Fiscal Impact: None.
    
    S1435