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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