Print Friendly HOUSE BILL NO. 169 – MV insurance, underinsured motorist
HOUSE BILL NO. 169
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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
|||| 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
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.
Contact: Kay Shields, Executive Director (208) 345-1890
David Kerrick, Legislative Affairs Counsel
Idaho Trial Lawyers Association
STATEMENT OF PURPOSE/FISCAL NOTE H 169