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S1309aa.....................................by COMMERCE AND HUMAN RESOURCES
MOTOR VEHICLES - INSURANCE - Amends existing law to require that motor
vehicle liability insurance policies covering motor vehicle owners shall
provide that if negligent operation of a loaned vehicle results in death or
injury to a person or personal property, primary coverage shall be provided
by the insured operator of the loaned vehicle; to define "loaned vehicle";
and to provide that the owner's insurance coverage will be primary if the
vehicle is loaned for consideration.
01/26 Senate intro - 1st rdg - to printing
01/27 Rpt prt - to Com/HuRes
02/16 Rpt out - to 14th Ord
02/22 Rpt out amen - to engros
02/23 Rpt engros - 1st rdg - to 2nd rdg as amen
02/24 2nd rdg - to 3rd rdg as amen
02/25 3rd rdg as amen - PASSED - 33-0-2
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
Darrington, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram, Ipsen,
Keough, King-Barrutia, Lee, McLaughlin, Noh, Parry, Richardson,
Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne,
Walton, Wheeler, Whitworth, Williams
NAYS--None
Absent and excused--Danielson, Davis
Floor Sponsor - Stegner
Title apvd - to House
02/28 House intro - 1st rdg as amen - to Bus
03/16 Rpt out - rec d/p - to 2nd rdg as amen
03/17 2nd rdg - to 3rd rdg as amen
03/30 3rd rdg as amen - PASSED - 66-0-4
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy, Deal,
Denney, Field(13), Field(20), Gagner, Geddes, Gould, Hadley, Hammond,
Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones(Jones),
Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Linford, Loertscher,
Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce,
Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff,
Stone, Tilman, Trail, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Bruneel, Ellsworth, Mader, Taylor
Floor Sponsor - Taylor
Title apvd - to Senate
03/31 To enrol
04/03 Rpt enrol - Pres signed - Sp signed
04/04 To Governor
04/12 Governor signed
Session Law Chapter 232
Effective: 07/01/00
S1309
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE SENATE
SENATE BILL NO. 1309, As Amended
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO MOTOR VEHICLES; AMENDING SECTION 49-1212, IDAHO CODE, TO REQUIRE
3 THAT MOTOR VEHICLE LIABILITY INSURANCE POLICIES COVERING MOTOR VEHICLE
4 OWNERS SHALL PROVIDE THAT IF NEGLIGENT OPERATION OF A LOANED VEHICLE
5 RESULTS IN DEATH OR INJURY TO A PERSON OR PERSONAL PROPERTY, PRIMARY COV-
6 ERAGE SHALL BE PROVIDED BY THE INSURED OPERATOR OF THE LOANED VEHICLE, TO
7 DEFINE "LOANED VEHICLE," TO PROVIDE THAT THE OWNER'S INSURANCE COVERAGE
8 WILL BE PRIMARY IF THE VEHICLE IS LOANED FOR CONSIDERATION AND TO MAKE
9 TECHNICAL CORRECTIONS; AND PROVIDING AN EFFECTIVE DATE.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 49-1212, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 49-1212. EXPRESSED, PERMITTED AND IMPLIED PROVISIONS OF MOTOR VEHICLE
14 LIABILITY POLICY. (1) An owner's policy of liability insurance shall:
15 (a) Designate by explicit description or by appropriate reference all
16 motor vehicles with respect to which coverage is to be granted; and
17 (b) Insure the person named therein and any other person, as insured,
18 using any such described motor vehicles with the express or implied per-
19 mission of the named insured, against loss from the liability imposed by
20 law for damages arising out of the ownership, maintenance or use of the
21 motor vehicles within the United States of America or the Dominion of Can-
22 ada, subject to limits exclusive of interest and costs, with respect to
23 each motor vehicle, as provided in section 49-117, Idaho Code.
24 (2) An operator's policy of liability insurance shall insure the person
25 named as insured therein against loss from the liability imposed upon him by
26 law for damages arising out of the use by him of any motor vehicle not owned
27 by him, within the same territorial limits and subject to the same limits of
28 liability as are set forth in subsection (1) of this section with respect to
29 an owner's policy of liability insurance.
30 (3) A motor vehicle liability policy shall state the name and address of
31 the named insured, the coverage afforded by the policy, the premiun premium
32 charged therefor, the policy period and the limits of liability, and shall
33 contain an agreement or be indorsed that insurance is provided in accordance
34 with the coverage defined in this chapter as respects bodily injury and death
35 or property damage, or both, and is subject to all the provisions of this
36 chapter.
37 (4) A motor vehicle liability policy shall not insure any liability under
38 any workmen's worker's compensation law as provided in title 72, Idaho Code,
39 nor any liability on account of bodily injury to or death of an employee of
40 the insured while engaged in the employment, other than domestic, of the
41 insured, or while engaged in the operation, maintenance or repair of any
42 described motor vehicle nor any liability for damage to property owned by,
43 rented to, in charge of or transported by the insured.
2
1 (5) Every motor vehicle liability policy shall be subject to the follow-
2 ing provisions which need not be contained therein:
3 (a) The policy may not be canceled or annulled as to any liability by any
4 agreement between the insurance carrier and the insured after the occur-
5 rence of any injury or damage covered by the motor vehicle liability pol-
6 icy.
7 (b) Satisfaction by the insured of a judgment for injury or damage shall
8 not be a condition precedent to the right or duty of the insurance carrier
9 to make payment on account of the injury or damage.
10 (c) The insurance carrier shall have the right to settle any claim cov-
11 ered by the policy, and if the settlement is made in good faith, the
12 amount shall be deductible from the limits of liability specified in sub-
13 section (1)(b) of this section.
14 (d) The policy and its written application, if any, and any rider or
15 indorsement which does not conflict with the provisions of this chapter
16 shall constitute the entire contract between the parties.
17 (6) Any policy which grants the coverage required for a motor vehicle
18 liability policy may also grant any lawful coverage in excess of or in addi-
19 tion to the coverage specified for a motor vehicle liability policy, and any
20 excess or additional coverage shall not be subject to the provisions of this
21 chapter. With respect to a policy which grants an excess of additional cover-
22 age the term "motor vehicle liability policy" shall apply only to that part of
23 the coverage which is required by this section.
24 (7) Any motor vehicle liability policy may provide that the insured shall
25 reimburse the insurance carrier for any payment the insurance carrier would
26 not have been obligated to make under the terms of the policy except for the
27 provisions of this chapter.
28 (8) Any motor vehicle liability policy may provide for the prorating of
29 the insurance with other valid and collectible insurance.
30 (9) The requirements for a motor vehicle liability policy may be ful-
31 filled by the policies of one (1) or more insurance carriers which policies
32 together meet the requirements of this chapter.
33 (10) Any binder issued pending the issuance of a motor vehicle liability
34 policy shall be deemed to fulfill the requirements for such a policy.
35 (11) When the negligent operation of a loaned vehicle results in the death
36 or injury to a person or personal property, except for the loaned vehicle, and
37 at the time of the negligent operation of the loaned vehicle the operator of
38 the loaned vehicle is insured under a motor vehicle liability policy complying
39 with the financial responsibility law of this state, primary coverage for the
40 death of or injury to a person or personal property, except for the loaned
41 vehicle, shall be provided by the operator's motor vehicle liability policy.
42 The insurance policy of the owner of the loaned vehicle shall provide second-
43 ary or excess coverage for the death of or injury to a person or personal
44 property, however the loaned vehicle owner's insurance shall provide primary
45 coverage for damage to the loaned vehicle.
46 (a) For the purpose of this subsection, "loaned vehicle" means a motor
47 vehicle which is provided for temporary use without charge to the operator
48 by an entity licensed under chapter 16, title 49, Idaho Code, for the pur-
49 pose of demonstrating the vehicle to the operator as a prospective pur-
50 chaser, or as a convenience to the operator during the repairing or ser-
51 vicing of a motor vehicle for the operator, regardless of whether such
52 repair or service is performed by the owner of the loaned vehicle or by
53 some other person or business.
54 (b) Should the owner of a motor vehicle receive any compensation from or
55 on behalf of the operator for the temporary use of the motor vehicle,
3
1 excluding any compensation provided to the owner as a result of the
2 repairing or servicing of a motor vehicle for the operator, the owner's
3 insurance coverage shall be primary and the operator's motor vehicle
4 insurance shall be secondary or excess.
5 SECTION 2. This act shall be in full force and effect on and after July
6 1, 2000.
AS1309
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
Moved by Stegner
Seconded by King-Barrutia
IN THE SENATE
SENATE AMENDMENT TO S.B. NO. 1309
1 AMENDMENTS TO SECTION 1
2 On page 2 of the printed bill, in line 35, delete "Each motor vehicle lia-
3 bility policy issued in this state shall pro-"; in line 36, delete "vide that
4 when" and insert: "When"; in line 37, following "property," insert: "except
5 for the loaned vehicle,"; in line 41, following "property" insert: ", except
6 for the loaned vehicle,"; in line 44, following "property" insert: ", however
7 the loaned vehicle owner's insurance shall provide primary coverage for damage
8 to the loaned vehicle".
STATEMENT OF PURPOSE
RS09659CI
Relating to liability insurance coverage on loaned vehicles
owned by licensed automobile dealers, this proposed legislation
provides that, in the event of an accident due to the negligence
of an insured driver, primary coverage shall be provided by the
operator's policy, and secondary coverage shall be provided by
the owner's policy.
FISCAL NOTE
None
CONTACT: Denise Brennan
Idaho Automobile Dealers Association
(208) 853-4668
S 1309