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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 centpercent (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 centpercent (75%) of the new entrants become insured. 41 The policy may exclude from the classes eligible for insurance classes orof 42 debtors determined by age. 43 (4) The amount of insurance on the life of thea debtor shall at no time 2 1 exceed the amount owed by him to the creditor, or seventy-fiveone 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