2001 Legislation
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HOUSE BILL NO. 235 – Insurance, subrogation, notice

HOUSE BILL NO. 235

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Daily Data Tracking History



H0235...........................................................by BUSINESS
INSURANCE - Amends existing law to require an insurance provider's
notification to its insured of an intent to claim a right to subrogation.
                                                                        
02/14    House intro - 1st rdg - to printing
02/15    Rpt prt - to Bus

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 235
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO INSURANCE; AMENDING CHAPTER 18, TITLE 41, IDAHO CODE, BY THE ADDI-
  3        TION OF A NEW  SECTION  41-1845,  IDAHO  CODE,  TO  REQUIRE  AN  INSURANCE
  4        PROVIDER'S  NOTIFICATION  TO  ITS INSURED OF AN INTENT TO CLAIM A RIGHT TO
  5        SUBROGATION IN CERTAIN CASES.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION 1.  That Chapter 18, Title 41, Idaho Code, be,  and  the  same  is
  8    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
  9    ignated as Section 41-1845, Idaho Code, and to read as follows:
                                                                        
 10        41-1845.  NOTIFICATION OF INTENT TO SUBROGATE. Where an insurance provider
 11    knows or has reason to know of potential third party liability for a loss suf-
 12    fered by its insured, and the provider intends to claim a right  to  subrogate
 13    any portion of moneys recovered by their insured against a third party associ-
 14    ated  with  a  loss  for  which  the provider has paid out moneys for costs or
 15    expenses on behalf of their insured, the provider is required  to  notify  its
 16    insured,  in writing, of its intent to pursue subrogation at the time it makes
 17    the payment(s) for costs and expenses on behalf of  its  insured.  Failure  to
 18    provide notification to an insured pursuant to this section shall constitute a
 19    waiver  by the insurance provider of its right to subrogation in regard to the
 20    loss.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                            RS 11035
                                
The purpose of this legislation is to require insurance providers to
notify their insureds of their intent to claim a right to subrogate in
certain cases.




                         FISCAL IMPACT
                                
                                
                                
There is no fiscal impact to the state.























Contact
      Name: Rep. Roger Chase
      Phone:     332 1130




STATEMENT OF  PURPOSE/FISCAL NOTE
                                                       H 235