View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
S1147.......................................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. 02/10 Senate intro - 1st rdg - to printing 02/11 Rpt prt - to Com/HuRes 02/24 Rpt out - Recommitted to Com/HuRes
S1147|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1147 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 AND TO 4 MAKE A TECHNICAL CORRECTION. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 41-2507, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 41-2507. CANCELLATION OF POLICIES -- GROUNDS. No notice of cancellation 9 of a policy shall be effective and the insurer shall not refuse renewal of a 10 policy, unless based on one (1) or more of the following reasons: 11 (1) Nonpayment of premium; or 12 (2) The policy was obtained through a material misrepresentation; or 13 (3) Any insured violated any of the terms and conditions of the policy; 14 or 15 (4) The named insured failed to disclose fully his motor vehicle acci- 16 dents and moving traffic violations, or his losses covered under any automo- 17 bile physical damage or comprehensive coverage, for the preceding thirty-six 18 (36) months if called for in the application; or 19 (5) As to renewal of the policy, if the insured at any time while the 20 policy was in force failed to disclose fully to the insurer, upon request 21 therefor, facts relative to accidents and losses incurred material to under- 22 writing of the risk; or 23 (6) Any insured made a false or fraudulent claim or knowingly aided or 24 abetted another in the presentation of such a claim; or 25 (7) The named insured or any other operator who either resides in the 26 same household or customarily operates an automobile insured under such pol- 27 icy: 28 (a) Has, within the thirty-six (36) months prior to the notice of cancel- 29 lation or nonrenewal, had his driver's license under suspension or revoca- 30 tion; or 31 (b) Has a history of and is subject to epilepsy or heart attacks, and 32 such individual cannot produce a certificate from a physician testifying 33 to his unqualified ability to operate a motor vehicle safely; or 34 (c) Has an accident record,conviction record (criminal or 35 traffic), physical, mental, or other condition which is such that his 36 operation of an automobile might endanger the public safety; or 37 (d) Has had an accident with respect to which he was not entirely 38 faultless; or 39 (e) Has, while the policy is in force, engaged in a prearranged 40 competitive speed contest while operating or riding in an automobile 41 insured under the policy; or 42 (ef ) Has, within the thirty-six (36) months 43 prior to the notice of cancellation or nonrenewal been addicted to the use 2 1 of narcotics or other drugs; or 2 (fg ) Uses alcoholic beverages to excess; or 3 (gh ) Has been convicted, or forfeited bail, 4 during the thirty-six (36) months immediately preceding the notice of can- 5 cellation or nonrenewal; for 6 (i) Any felony; or 7 (ii) Criminal negligence resulting in death, homicide, or assault 8 arising out of the operation of a motor vehicle; or 9 (iii) Operating a motor vehicle while in an intoxicated condition or 10 while under the influence of drugs; or 11 (iv) Leaving the scene of an accident without stopping to report; or 12 (v) Theft or unlawful taking of a motor vehicle; or 13 (vi) Making fraudulent statements in an application for a driver's 14 license; or 15 (hi ) Has been convicted of, has had a judgment 16 entered against, or forfeited bail for, three (3) or more violations 17 within the thirty-six (36) months immediately preceding the notice of can- 18 cellation or nonrenewal, of any law, ordinance, or regulation of any state 19 for which a violation point is assessed by the Idaho transportation 20 department under the provisions of section 49-326, Idaho Code, whether or 21 not the violations were repetitions of the same offense or different 22 offenses. 23 (8) The insured automobile is: 24 (a) So mechanically defective that its operation might endanger public 25 safety; or 26 (b) Used in carrying passengers for hire or compensation, except that the 27 use of an automobile for a car pool shall not be considered use of an 28 automobile for hire or compensation; or 29 (c) Used in the business of transportation of flammables or explosives; 30 or 31 (d) An authorized emergency vehicle; or 32 (e) Modified or changed in condition during the policy period so as to 33 increase the risk substantially; or 34 (f) Subject to an inspection law and has not been inspected or, if 35 inspected, has failed to qualify.
STATEMENT OF PURPOSE
RS 08955
This legislation will prevent unfair cancellation of automobile
insurance coverage, prohibiting your insurance carrier from
canceling your coverage or raising your premium 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, Legislative Affairs Counsel
Idaho Trial Lawyers Association
P.O. Box 1777
Boise, ID 83707
Itla@itla.org
345-1890
345-1894
STATEMENT OF PURPOSE/ FISCAL NOTE
S 1147