Print Friendly SENATE BILL NO. 1324 – Insurance producers, compensation
SENATE BILL NO. 1324
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S1324.......................................by COMMERCE AND HUMAN RESOURCES
INSURANCE PRODUCERS - Amends and adds to existing law to provide for
insurance producer compensation; and to provide that certain producer fees
shall not be considered premiums.
01/23 Senate intro - 1st rdg - to printing
01/24 Rpt prt - to Com/HuRes
02/01 Rpt out - rec d/p - to 2nd rdg
02/04 2nd rdg - to 3rd rdg
02/07 3rd rdg - PASSED - 31-0-4
AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Burtenshaw,
Cameron, Davis, Deide, Dunklin, Geddes, Goedde, Hill, Ingram, Ipsen,
Keough, King-Barrutia, Little, Lodge, Marley, Noh, Richardson, Risch,
Sandy, Schroeder, Sims, Sorensen, Stegner, Stennett, Thorne(Thorne),
NAYS -- None
Absent and excused -- Bunderson, Darrington, Frasure, Hawkins
Floor Sponsor - Goedde
Title apvd - to House
02/08 House intro - 1st rdg - to Bus
03/06 Rpt out - rec d/p - to 2nd rdg
03/07 2nd rdg - to 3rd rdg
03/08 3rd rdg - PASSED - 56-0-14
AYES -- Barraclough, Bedke, Bell, Bieter, Black, Block, Bolz,
Bradford, Bruneel, Callister, Campbell, Collins, Cuddy, Deal, Denney,
Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner, Hadley,
Hammond, Harwood, Henbest, Higgins, Jaquet, Kellogg(Duncan), Kunz,
Lake, Langford, Loertscher, Martinez, McKague, Meyer, Montgomery,
Mortensen, Moyle, Pearce, Pischner, Pomeroy, Raybould, Ridinger,
Robison, Sali, Schaefer, Shepherd, Smith(33), Smith(23), Smylie,
Stevenson, Stone, Tilman, Trail, Wheeler, Young,
NAYS -- None
Absent and excused -- Aikele, Barrett, Boe, Clark, Crow, Gould,
Hornbeck, Jones, Kendell, Mader, Roberts, Sellman, Wood, Mr. Speaker
Floor Sponsor - Deal
Title apvd - to Senate
03/11 To enrol
03/12 Rpt enrol - Pres signed - Sp signed
03/13 To Governor
03/27 Governor signed
Session Law Chapter 359
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE SENATE
SENATE BILL NO. 1324
BY COMMERCE AND HUMAN RESOURCES COMMITTEE
1 AN ACT
2 RELATING TO THE IDAHO INSURANCE CODE; AMENDING CHAPTER 10, TITLE 41, IDAHO
3 CODE, BY THE ADDITION OF A NEW SECTION 41-1030, IDAHO CODE, TO DEFINE
4 TERMS AND TO PROVIDE THAT RETAIL AND WHOLESALE PRODUCERS MAY CHARGE FEES
5 OR BE COMPENSATED BY A COMBINATION OF FEES AND COMMISSIONS UPON THE DIS-
6 CLOSURE OF CERTAIN INFORMATION; AND AMENDING SECTION 41-1803, IDAHO CODE,
7 TO PROVIDE THAT CERTAIN PRODUCER FEES SHALL NOT BE CONSIDERED PREMIUMS.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Chapter 10, Title 41, Idaho Code, be, and the same is
10 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
11 ignated as Section 41-1030, Idaho Code, and to read as follows:
12 41-1030. PRODUCER COMPENSATION. (1) For purposes of this section:
13 (a) "Consumer" means an insured, a prospective insured or an employer
15 (b) "Retail producer" means a producer who solicits, negotiates with or
16 sells an insurance contract directly to a consumer.
17 (c) "Wholesale producer" means a producer who solicits, negotiates or
18 sells an insurance contract directly with a retail producer, but not with
19 a consumer.
20 (2) Notwithstanding any other provision of title 41, Idaho Code, and as
21 provided in this subsection, retail producers and wholesale producers may
22 charge a fee or be compensated by a combination of fees and commissions.
23 (a) Before charging a fee to a consumer, a retail producer shall provide
24 to the consumer a written statement that describes the services the retail
25 producer will perform and the fees the retail producer will receive.
26 Acceptance by the consumer of a fee arrangement shall be evidenced by the
27 consumer signing and dating the fee statement.
28 (b) Before charging a fee to a retail producer, a wholesale producer
29 shall provide to the retail producer a written statement that describes
30 the services the wholesale producer will perform and the fees the whole-
31 sale producer will receive. Information regarding the amount of the fees
32 charged by the wholesale producer shall be disclosed in writing on the
33 face of the policy as a separately itemized charge.
34 SECTION 2. That Section 41-1803, Idaho Code, be, and the same is hereby
35 amended to read as follows:
36 41-1803. "PREMIUM" DEFINED. "Premium" is the consideration for insurance
37 by whatever name called. Any "assessment," or any "membership," "policy,"
38 "survey," "inspection," "service" or similar fee or other charge in consider-
39 ation for an insurance contract is deemed part of the premium; provided that
40 wholesale producer fees charged pursuant to section 41-10 5930, Idaho Code,
41 shall not be considered a premium unless the fee relates to a surplus line
STATEMENT OF PURPOSE
This proposed legislation would put back into Idaho Code a
provision that had been passed in the last session of the
Legislature and signed into law but then was rescinded by a
later piece of legislation during the session. The current
proposal would also expand that legislation passed last year
to now allow retail insurance agents to charge a fee for
services, provided those services and fees are disclosed and
agreed to in writing by the insured.
Fees will be subject only to income tax. Theoretically, this
legislation could adversely impact insurance premium taxes. In
practicality, there should be little fiscal impact resulting from
this proposed legislation, and there already exists a means to
track any change and make adjustments if needed.
Name: John Goedde
STATEMENT OF PURPOSE/FISCAL NOTE S 1324