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SENATE BILL NO. 1236

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Bill Status

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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

Bill Text

                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact

                       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