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S1236................................................by JUDICIARY AND RULES MINORS - AUTOMOBILE INSURANCE - Adds to existing law to provide that an insurer may not rely on the suspension, revocation or cancellation of a minor's driving privileges as the sole reason to cancel, deny or not renew the automobile insurance policy of the minor or a parent, guardian or legal custodian of the minor unless the points or offense on the minor's driving record would be reason to cancel the policy. 01/27 Senate intro - 1st rdg - to printing 01/28 Rpt prt - to Com/HuRes
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-seventh Legislature Second Regular Session - 2004 IN THE SENATE SENATE BILL NO. 1236 BY JUDICIARY AND RULES COMMITTEE 1 AN ACT 2 RELATING TO AUTOMOBILE INSURANCE; AMENDING CHAPTER 25, TITLE 41, IDAHO CODE, 3 BY THE ADDITION OF A NEW SECTION 41-2517, IDAHO CODE, TO PROVIDE THE 4 EFFECT OF SUSPENSION, CANCELLATION OR REVOCATION OF A MINOR'S DRIVING 5 PRIVILEGES ON AN AUTOMOBILE INSURANCE POLICY. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Chapter 25, 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 41-2517, Idaho Code, and to read as follows: 10 41-2517. CANCELLATION OF A MINOR'S DRIVING PRIVILEGES. An insurer may not 11 use or rely on the suspension, revocation or cancellation of a minor's driving 12 privileges pursuant to chapter 3, title 49, Idaho Code, as the sole reason to 13 cancel, deny, or not renew the automobile insurance policy of the minor or a 14 parent, guardian or legal custodian of the minor unless the points or offense 15 on the minor's driving record, separate from a suspension, revocation or can- 16 cellation pursuant to chapter 3, title 49, Idaho Code, would be a reason to 17 cancel, deny or not renew the policy.
STATEMENT OF PURPOSE RS 13442 The purpose of this legislation is to primarily maintain insurance for the parent or guardian of a minor child that operates a motor vehicle, even though coverage for the minor is terminated. There have been instances when a minor has had their drivers license or privileges suspended and the insurance provider has used to terminate all insurance coverage. As a result substantially more expensive insurance has been required to be purchased. This legislation still allows for the termination of insurance for the minor or alternatively for the parent/guardian and minor if such is made for offense under Idaho Code 49-301. FISCAL IMPACT No fiscal impact is projected. Contact Name: Senator Bart M. Davis Phone: (208) 332-1305 STATEMENT OF PURPOSE/FISCAL NOTE S 1236