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S1098.......................................by COMMERCE AND HUMAN RESOURCES MOTOR VEHICLES - INSURANCE - Amends existing law to provide that a policy of motor vehicle insurance may be canceled when the insured is involved in an accident in which he is not entirely faultless. 02/03 Senate intro - 1st rdg - to printing 02/04 Rpt prt - to Com/HuRes
S1098|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1098 BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO AUTOMOBILE INSURANCE; AMENDING SECTION 41-2507, IDAHO CODE, TO 3 FURTHER DEFINE CONDITIONS FOR CANCELLATION OF A POLICY OF INSURANCE. 4 Be It Enacted by the Legislature of the State of Idaho: 5 SECTION 1. That Section 41-2507, Idaho Code, be, and the same is hereby 6 amended to read as follows: 7 41-2507. CANCELLATION OF POLICIES -- GROUNDS. No notice of cancellation 8 of a policy shall be effective and the insurer shall not refuse renewal of a 9 policy, unless based on one or more of the following reasons: 10 (1) Nonpayment of premium; or 11 (2) The policy was obtained through a material misrepresentation; or 12 (3) Any insured violated any of the terms and conditions of the policy; 13 or 14 (4) The named insured failed to disclose fully his motor vehicle acci- 15 dents and moving traffic violations, or his losses covered under any automo- 16 bile physical damage or comprehensive coverage, for the preceding thirty-six 17 (36) months if called for in the application; or 18 (5) As to renewal of the policy, if the insured at any time while the 19 policy was in force failed to disclose fully to the insurer, upon request 20 therefor, facts relative to accidents and losses incurred material to under- 21 writing of the risk; or 22 (6) Any insured made a false or fraudulent claim or knowingly aided or 23 abetted another in the presentation of such a claim; or 24 (7) The named insured or any other operator who either resides in the 25 same household or customarily operates an automobile insured under such pol- 26 icy: 27 (a) Has, within the thirty-six (36) months prior to the notice of cancel- 28 lation or nonrenewal, had his driver's license under suspension or revoca- 29 tion; or 30 (b) Has a history of and is subject to epilepsy or heart attacks, and 31 such individual cannot produce a certificate from a physician testifying 32 to his unqualified ability to operate a motor vehicle safely; or 33 (c) Has an accident record,conviction record (criminal or 34 traffic), physical, mental, or other condition which is such that his 35 operation of an automobile might endanger the public safety; or 36 (d) Has had an accident claim made against him with respect to 37 which he was not entirely faultless; or 38 (e) Has, while the policy is in force, engaged in a prearranged 39 competitive speed contest while operating or riding in an automobile 40 insured under the policy; or 41 (ef ) Has, within the thirty-six (36) months 42 prior to the notice of cancellation or nonrenewal been addicted to the use 43 of narcotics or other drugs; or 2 1 (fg ) Uses alcoholic beverages to excess; or 2 (gh ) Has been convicted, or forfeited bail, 3 during the thirty-six (36) months immediately preceding the notice of can- 4 cellation or nonrenewal; for 5 (i) Any felony; or 6 (ii) Criminal negligence resulting in death, homicide, or assault 7 arising out of the operation of a motor vehicle; or 8 (iii) Operating a motor vehicle while in an intoxicated condition or 9 while under the influence of drugs; or 10 (iv) Leaving the scene of an accident without stopping to report; or 11 (v) Theft or unlawful taking of a motor vehicle; or 12 (vi) Making fraudulent statements in an application for a driver's 13 license; or 14 (hi ) Has been convicted of, has had a judgment 15 entered against, or forfeited bail for, three (3) or more violations 16 within the thirty-six (36) months immediately preceding the notice of can- 17 cellation or nonrenewal, of any law, ordinance, or regulation of any state 18 for which a violation point is assessed by the Idaho transportation 19 department under the provisions of section 49-326, Idaho Code, whether or 20 not the violations were repetitions of the same offense or different 21 offenses. 22 (8) The insured automobile is: 23 (a) So mechanically defective that its operation might endanger public 24 safety; or 25 (b) Used in carrying passengers for hire or compensation, except that the 26 use of an automobile for a car pool shall not be considered use of an 27 automobile for hire or compensation; or 28 (c) Used in the business of transportation of flammables or explosives; 29 or 30 (d) An authorized emergency vehicle; or 31 (e) Modified or changed in condition during the policy period so as to 32 increase the risk substantially; or 33 (f) Subject to an inspection law and has not been inspected or, if 34 inspected, has failed to qualify.
STATEMENT OF PURPOSE
RS 8718
This legislation will prevent unfair cancellation of automobile insurance coverage. It will
prohibit your insurance carrier from canceling your coverage or raising your premiums
simply because you were involved in an accident in which you were not at fault.
FISCAL NOTE
None.
CONTACT: Kay Shields, Executive Director
Dave Kerrick, Legisiative Affairs Counsel
Idaho Trial Lawyers Association
PO Box 1777
Boise ID 83707
Itla@itla.org
(208) 345-1890
(208) 345-1894 fax
STATEMENT OF PURPOSE/ FISCAL NOTE S1098