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H0090...........................................................by BUSINESS
INSURANCE - CREDIT LIFE - Amends existing law to raise the statutory limit
on the amount of credit life insurance that can be written under a group
insurance policy.
02/02 House intro - 1st rdg - to printing
02/03 Rpt prt - to Bus
02/18 Rpt out - rec d/p - to 2nd rdg
02/21 2nd rdg - to 3rd rdg
02/23 3rd rdg - PASSED - 70-0-0
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon,
Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
Henderson, Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez,
Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen,
Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- None
Floor Sponsor - Bilbao
Title apvd - to Senate
02/24 Senate intro - 1st rdg - to Com/HuRes
03/09 Rpt out - rec d/p - to 2nd rdg
03/10 2nd rdg - to 3rd rdg
03/11 3rd rdg - PASSED - 32-0-2, 1 vacancy
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Gannon, Geddes, Goedde, Jorgenson, Kelly, Keough, Langhorst, Little,
Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
Schroeder, Stegner, Stennett, Werk, Williams
NAYS -- None
Absent and excused -- Hill, Sweet, (District 21 seat vacant)
Floor Sponsor - Coiner
Title apvd - to House
03/14 To enrol
03/15 Rpt enrol - Sp signed
03/16 Pres signed
03/17 To Governor
03/21 Governor signed
Session Law Chapter 67
Effective: 07/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 90
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO LIFE INSURANCE; AMENDING SECTION 41-2005, IDAHO CODE, TO RAISE THE
3 STATUTORY LIMIT ON THE AMOUNT OF CREDIT LIFE INSURANCE THAT CAN BE WRITTEN
4 UNDER A GROUP INSURANCE POLICY, TO MAKE TECHNICAL CORRECTIONS AND TO COR-
5 RECT CODIFIER ERRORS.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 41-2005, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 41-2005. DEBTOR GROUPS. The lives of a group of individuals may be
10 insured under a policy issued to a creditor, or to a trustee or trustees or
11 agent designated by two (2) or more creditors, who shall be deemed the policy-
12 holder, to insure debtors of the creditor, subject to the following require-
13 ments:
14 (1) The debtors eligible for insurance under the policy shall be all of
15 the debtors of the creditor, or all of any class or classes thereof determined
16 by conditions pertaining to the indebtedness or to the purchase giving rise to
17 the indebtedness. The policy may provide that the term "debtors" shall include
18 the debtors of one (1) or more subsidiary corporations, and the debtors of one
19 (1) or more affiliated corporations, proprietors or partnerships if the busi-
20 ness of the policyholder and of such affiliated corporations, proprietors or
21 partnerships is under common control through stock ownership, contract, or
22 otherwise.
23 (2) The premium for the policy shall be paid by the policyholder, either
24 from the creditor's funds, or from charges collected from the insured debtors,
25 or from both. A policy on which part or all of the premium is to be derived
26 from the collection from the insured debtors of identifiable charges not
27 required of uninsured debtors shall not include, in the class or classes of
28 debtors eligible for insurance, debtors under obligations outstanding at its
29 date of issue without evidence of individual insurability unless at least sev-
30 enty-five per cent percent (75%) of the then eligible debtors elect to pay the
31 required charges. A policy on which no part of the premium is to be derived
32 from the collection of such identifiable charges must insure all eligible
33 debtors, or all except any as to whom evidence of individual insurability is
34 not satisfactory to the insurer.
35 (3) The policy may be issued only if the group of eligible debtors is
36 then receiving new entrants at the rate of at least one hundred (100) persons
37 yearly, or may reasonably be expected to receive at least one hundred (100)
38 new entrants during the first policy year, and only if the policy reserves to
39 the insurer the right to require evidence of individual insurability if less
40 than seventy-five per cent percent (75%) of the new entrants become insured.
41 The policy may exclude from the classes eligible for insurance classes or of
42 debtors determined by age.
43 (4) The amount of insurance on the life of the a debtor shall at no time
2
1 exceed the amount owed by him to the creditor, or seventy-five one hundred
2 fifty thousand dollars ($7150,000), whichever is less.
3 (5) The insurance shall be payable to the policyholder. Such payment
4 shall reduce or extinguish the unpaid indebtedness of the debtor to the extent
5 of such payment.
STATEMENT OF PURPOSE
RS 14523
This legislation increases the coverage that can be written under
a group policy of credit life insurance from seventy-five thousand
dollars to one hundred fifty thousand dollars. The current
seventy-five thousand dollar limitation was enacted in 1983. Since
that time, the size of consumer real estate loans made under the
Idaho Credit Code and other loans have risen to meet the rising
cost of housing. This legislation places a more practical limit on
the amount of insurance that can be written under a group policy of
credit life insurance.
FISCAL IMPACT
There is no fiscal impact to the State of Idaho or to local
government.
Contact
Name: Mike Brassey
Phone: 336-7930
STATEMENT OF PURPOSE/FISCAL NOTE H 90