Print Friendly SENATE BILL NO. 1310 – Property loss/debt waived/insurance
SENATE BILL NO. 1310
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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
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
|||| 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
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.
No fiscal impact.
CONTACT: Mike Brassey
Idaho Automobile Dealers Association