2000 Legislation
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SENATE BILL NO. 1310 – Property loss/debt waived/insurance

SENATE BILL NO. 1310

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Daily Data Tracking History


S1310.......................................by COMMERCE AND HUMAN RESOURCES
PROPERTY LOSS - DEBT - Amends existing law to provide that an agreement to
forgive or waive all or part of a debt or lease following a partial or
total loss of the subject property is not the transaction of insurance.
                                                                        
01/26    Senate intro - 1st rdg - to printing
01/27    Rpt prt - to Com/HuRes
02/16    Rpt out - rec d/p - to 2nd rdg
02/17    2nd rdg - to 3rd rdg
02/24    3rd rdg - PASSED - 32-0-3
      AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
      Darrington, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram, 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, Ipsen
    Floor Sponsor - Davis
    Title apvd - to House
02/25    House intro - 1st rdg - to Bus
03/16    Rpt out - rec d/p - to 2nd rdg
03/17    2nd rdg - to 3rd rdg
03/29    3rd rdg - PASSED - 67-0-3
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
      Bruneel, Callister, Campbell, Chase, Cheirrett, Clark, Crow, Cuddy,
      Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Gould, Hadley,
      Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones,
      Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Linford, Loertscher,
      Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle,
      Pearce, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer,
      Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff, Stone,
      Taylor, Tilman, Trail, Wheeler, Wood, Zimmermann
      NAYS -- None
      Absent and excused -- Geddes, Pischner, Mr Speaker
    Floor Sponsor - Chase
    Title apvd - to Senate
03/30    To enrol - rpt enrol - Pres signed
03/31    Sp signed
04/03    To Governor
04/04    Governor signed
         Session Law Chapter 175
         Effective: 07/01/00

Bill Text

 S1310
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1310
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO CREDIT TRANSACTIONS; AMENDING SECTION 28-41-106,  IDAHO  CODE,  TO
  3        PROVIDE  THAT  AN  AGREEMENT  TO FORGIVE OR WAIVE ALL OR PART OF A DEBT OR
  4        LEASE FOLLOWING A PARTIAL OR TOTAL LOSS OF THE SUBJECT PROPERTY IS NOT THE
  5        TRANSACTION OF INSURANCE; AND PROVIDING AN EFFECTIVE DATE.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION 1.  That Section 28-41-106, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        28-41-106.  WAIVER -- AGREEMENT TO FOREGO RIGHTS -- SETTLEMENT OF  CLAIMS.
 10    (1)  Except as otherwise provided in this act, a debtor may not waive or agree
 11    to forego rights or benefits under this act.
 12        (2)  A claim by a debtor against a creditor for an  excess  charge,  other
 13    violation  of  this  act,  or  civil  penalty, or a claim against a debtor for
 14    default or breach of a duty imposed by this act, if disputed  in  good  faith,
 15    may be settled by agreement.
 16        (3)  A claim, whether or not disputed, against a debtor may be settled for
 17    less value than the amount claimed.
 18        (4)  A settlement in which the debtor waives or agrees to forego rights or
 19    benefits under this act is invalid if the court, as a matter of law, finds the
 20    settlement to have been unconscionable at the time it was made. The competence
 21    of  the  debtor,  any deception or coercion practiced upon him, the nature and
 22    extent of the legal advice received by him, and the value of the consideration
 23    are relevant to the issue of unconscionability.
 24        (5)  Title 41, Idaho Code, shall not apply to an agreement by  a  creditor
 25    or  lessor, with or without consideration, to forgive or waive all or any part
 26    of a debt or lease obligation following a partial or total loss of  the  prop-
 27    erty  that  is the subject of a loan, credit sale or lease transaction and the
 28    forgiveness shall not be considered the transaction of insurance for the  pur-
 29    poses of the Idaho credit code.
                                                                        
 30        SECTION  2.  This  act shall be in full force and effect on and after July
 31    1, 2000.

Statement of Purpose / Fiscal Impact

                      STATEMENT OF PURPOSE
                             RS09660

Relating to credit transactions, this legislation provides that a 
creditor or lessor who agrees to waive all or a part of a debt or 
payments under a lease is not transacting insurance. Nationally, 
there are conflicting opinions as to whether such a waiver is an 
insurance transaction. This legislation clarifies the law in Idaho 
so that there is no confusion as to the characterization of awaiver 
when there is a partial or total loss of the property that is the 
subject of the transaction.

                           FISCAL NOTE

No fiscal impact.

CONTACT:  Mike Brassey
Phone: 336-7930
Denise Brennan
Idaho Automobile Dealers Association
Phone: 853-4668 

                                                  S 1310