1999 Legislation
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SENATE BILL NO. 1147 – MV insurance policy canceled, when


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Daily Data Tracking History

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

Bill Text


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

                                      IN THE SENATE

                                   SENATE BILL NO. 1147


 1                                        AN ACT

 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 a n 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        (  e    f  )  Has, within the thirty-six (36) months
43        prior to the notice of cancellation or nonrenewal been addicted to the use


 1        of narcotics or other drugs; or
 2        ( f  g )  Uses alcoholic beverages to excess; or
 3        ( g  h )  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        ( h  i )  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 / Fiscal Impact

                       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


CONTACT:  Kay Shields, Executive Director
          Dave Kerrick, Legislative Affairs Counsel
          Idaho Trial Lawyers Association
          P.O. Box 1777
          Boise, ID 83707


                                                           S 1147