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H0114...........................................................by BUSINESS
INSURANCE PRODUCERS - Adds to existing law to set forth requirements for
insurance producers who borrow money, securities or anything of value from
clients or customers.
02/04 House intro - 1st rdg - to printing
02/07 Rpt prt - to Bus
02/16 Rpt out - rec d/p - to 2nd rdg
02/17 2nd rdg - to 3rd rdg
02/21 3rd rdg - PASSED - 62-1-7
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon,
Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Jaquet, Jones,
Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin,
McKague, Miller, Moyle, Nielsen, Pasley-Stuart, Pence, Raybould,
Ring, Roberts, Rusche, Rydalch, Sali, Sayler, Shepherd(2),
Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie,
Snodgrass, Trail, Wills, Wood, Mr. Speaker
NAYS -- Schaefer
Absent and excused -- Chadderdon, Clark, Henderson, Mitchell, Nonini,
Ringo, Stevenson
Floor Sponsor - Bilbao
Title apvd - to Senate
02/22 Senate intro - 1st rdg - to Com/HuRes
03/04 Rpt out - rec d/p - to 2nd rdg
03/07 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 - Goedde
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 73
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. 114
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO INSURANCE PRACTICES; AMENDING CHAPTER 13, TITLE 41, IDAHO CODE, BY
3 THE ADDITION OF A NEW SECTION 41-1325, IDAHO CODE, TO SET FORTH REQUIRE-
4 MENTS FOR INSURANCE PRODUCERS WHO BORROW MONEY, SECURITIES OR ANYTHING OF
5 VALUE FROM CLIENTS OR CUSTOMERS.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Chapter 13, 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 41-1325, Idaho Code, and to read as follows:
10 41-1325. BORROWING MONEY FROM CLIENTS. (1) An insurance producer who bor-
11 rows money, securities or anything of value from a client or customer, unless
12 the client or customer is a person engaged in the business of loaning funds or
13 is an immediate family member of the insurance producer, shall complete a
14 written loan agreement that sets forth the parties to the loan, the purpose of
15 the loan, the amount of the loan and the terms of the loan. All parties to the
16 loan must sign the loan agreement acknowledging the transaction and must
17 receive a copy of the loan agreement. The insurance producer shall keep a
18 record of the loan transaction until the loan is paid back in full. Any
19 release of the debt shall be in writing and signed by all parties to the
20 release.
21 (2) As used in this section, the term "immediate family member" means a
22 parent, mother-in-law, father-in-law, husband, wife, sister, brother, brother-
23 in-law, sister-in-law, son-in-law, daughter-in-law, or a son or daughter.
STATEMENT OF PURPOSE
RS 14423
This proposal will require that an insurance producer (agent or
broker) who borrows money from a customer prepare a loan agreement
setting forth the terms of the loan and that the agreement be
signed by all parties to the loan. In the past, the Department has
encountered situations where a producer used funds belonging to a
client and later contended that the client had verbally agreed to
loan the funds to the producer, but subsequently forgot about the
arrangement. The requirement of a signed writing will protect both
the producer and the customer in cases where a dispute arises
concerning use of funds. The legislation does not require a signed
writing where the customer is an immediate family member or a
person engaged in the business of lending, such as a bank or credit
union.
FISCAL IMPACT
None.
CONTACT
Name: Jim Genetti
Agency: Insurance, Dept. of
Phone: 334-4340
Statement of Purpose/Fiscal Impact H 114