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HOUSE BILL NO. 169

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Daily Data Tracking History

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H0169...........................................................by BUSINESS
MOTOR VEHICLES - INSURANCE - Adds to existing law to define "underinsured
motor vehicle"; and to specify coverage for underinsured motorists.

02/04    House intro - 1st rdg - to printing
02/05    Rpt prt - to Bus

Bill Text

H0169


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 169

                                  BY BUSINESS COMMITTEE

 1                                        AN ACT
 2    RELATING TO AUTOMOBILE INSURANCE; AMENDING CHAPTER 25, TITLE 41,  IDAHO  CODE,
 3        BY  THE  ADDITION  OF  A  NEW  SECTION  41-2504A,  IDAHO  CODE,  TO DEFINE
 4        "UNDERINSURED  MOTOR  VEHICLE"  AND  TO   PROVIDE   FOR   APPLICATION   OF
 5        UNDERINSURED  MOTORIST  COVERAGE  IN  SPECIFIED  AMOUNTS; AND PROVIDING AN
 6        EFFECTIVE DATE.

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

 8        SECTION 1.  That Chapter 25, Title 41, Idaho Code, be,  and  the  same  is
 9    hereby  amended  by  the addition thereto of a  NEW SECTION , to be
10    known and designated as Section 41-2504A, Idaho Code, and to read as follows:

11        41-2504A.  UNDERINSURED MOTORIST COVERAGE.  (1)  "Underinsured motor vehi-
12    cle" means a motor vehicle for which there is a bodily injury liability insur-
13    ance policy or bond providing equivalent liability protection,  in  effect  at
14    the time of an accident, but the applicable limit of bodily injury policy lim-
15    its  of  the  policy or bond is insufficient to satisfy the legal liability of
16    the insured.
17        (2)  When any person covered by a policy of underinsured motorist coverage
18    is injured or damaged by any party who owns or operates an underinsured  motor
19    vehicle,  coverage of such injured person pursuant to underinsured motor vehi-
20    cle coverage shall be excess over the insurance coverage of the tortfeasor  or
21    owner,  and  the  carrier  providing  such underinsured motor vehicle coverage
22    shall not be entitled to any credit or offset against such underinsured  motor
23    vehicle  coverage  for any amounts paid to such  injured or damaged party from
24    the policy or bond referred to above. In no event, however, shall the  carrier
25    providing  underinsured  motor  vehicle  coverage  to  the  injured  person be
26    required to pay more than the amount of its underinsured motor vehicle limits.

27        SECTION 2.  This act shall be in full force and effect on and  after  July
28    1, 2000.

Statement of Purpose / Fiscal Impact

                      STATEMENT OF PURPOSE

                             RS08717

This legislation prevents the problem of "phantom" insurance
coverage by requiring your insurance carrier to provide the full
underinsured motorist coverage that you believe you have
purchased. The insurance company is prohibited from claiming an
offset against such coverage for payments made by the negligent
driver's insurance carrier.

The legislation, however, protects the carrier from paying more
than the amount of its policy limits for underinsured motorists.




                           FISCAL NOTE

None.









                                                      Contact: Kay Shields, Executive Director (208) 345-1890
                                                           David Kerrick, Legislative Affairs Counsel
                                                           Idaho Trial Lawyers Association

                                                 STATEMENT OF PURPOSE/FISCAL NOTE    H 169