Print Friendly SENATE BILL NO. 1435 – Insurance agts/customer loan prohib
SENATE BILL NO. 1435
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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
|||| 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
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.