1999 Legislation
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SENATE BILL NO. 1098 – MV insurance policy canceled, when


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Daily Data Tracking History

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

Bill Text


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

                                      IN THE SENATE

                                   SENATE BILL NO. 1098


 1                                        AN ACT

 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 a n 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        (  e    f  )  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


 1        ( f  g )  Uses alcoholic beverages to excess; or
 2        ( g  h )  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        ( h  i )  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 / Fiscal Impact

                       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


       CONTACT:    Kay Shields, Executive Director
                                   Dave Kerrick, Legisiative Affairs Counsel
                                   Idaho Trial Lawyers Association
                                   PO Box 1777
                                   Boise ID 83707
         (208) 345-1890
         (208) 345-1894 fax
       STATEMENT OF PURPOSE/ FISCAL NOTE                                             S1098