2005 Legislation
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HOUSE BILL NO. 136 – Fire insurance, cancelled, notice


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Bill Status

H0136...........................................................by BUSINESS
FIRE INSURANCE - Amends existing law to provide that proof of mailing of
notice of cancellation of a fire insurance policy, or of the intention not
to renew, or of reasons for cancellation or nonrenewal to the named insured
at his address shall be sufficient proof of notice.
02/08    House intro - 1st rdg - to printing
02/09    Rpt prt - to Bus
02/22    Rpt out - rec d/p - to 2nd rdg
02/23    2nd rdg - to 3rd rdg
02/28    3rd rdg - PASSED - 68-0-2
      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, Sayler, Shepherd(2), Shepherd(8), Shirley, Skippen,
      Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills,
      Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- Sali, Schaefer
    Floor Sponsor - Jaquet
    Title apvd - to Senate
03/01    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 - 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 81
         Effective: 07/01/05

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 136
                                   BY BUSINESS COMMITTEE
  1                                        AN ACT
  6    Be It Enacted by the Legislature of the State of Idaho:
  7        SECTION 1.  That Section 41-2401, Idaho Code, be, and the same  is  hereby
  8    amended to read as follows:
  9        41-2401.  STANDARD  FIRE  POLICY. (1) No fire insurer shall issue any fire
 10    insurance policy covering on property or interest therein in this state, other
 11    than on the form known as the New York standard as revised in 1943, except  as
 12    follows:
 13        (a)  An  insurer may print on or in its policy its name, location, date of
 14        incorporation, plan of operation, whether  stock,  mutual,  reciprocal  or
 15        organized  under  special  charter provisions, and if mutual or reciprocal
 16        whether on cash premium or assessment plan; and if it be a stock  company,
 17        the  amount  of  its  paid up capital stock, the names of its officers and
 18        agents, the number and date of the policy, and, if  it  is  issued  by  an
 19        agent,  the  words, "this policy shall not be valid until countersigned by
 20        the duly authorized agent of the company at ...."; and,  if  a  mutual  or
 21        reciprocal  insurer,  the  policy  must state the contingent liability, if
 22        any, of its policyholders, members, or subscribers for payment  of  losses
 23        and expenses not provided for by its cash funds.
 24        (b)  An insurer may print or use in its policies printed forms of descrip-
 25        tion and specifications of the property insured.
 26        (c)  An  insurer  insuring  against  damage  by lightning may print in the
 27        clause enumerating the perils insured against the additional words,  "also
 28        any  damage  by  lightning  whether fire ensues or not," and in the clause
 29        providing for an apportionment of loss in  case  of  other  insurance  the
 30        words, "whether by fire, lightning or both."
 31        (d)  A  domestic insurer may print in its policies any provisions which it
 32        is authorized or required by the law to insert therein,  and  any  foreign
 33        insurer  may,  with  the  approval of the director, so print any provision
 34        required by its charter or deed of settlement, or by the laws of  its  own
 35        state or country, not contrary to the laws of this state; but the director
 36        shall require any provision which, in his opinion modifies the contract of
 37        insurance  in such a way as to affect the question of loss, to be appended
 38        to the policy by an endorsement or rider as hereinafter provided.
 39        (e)  The blanks in the standard form may be completed in print or in writ-
 40        ing.
 41        (f)  An insurer may print upon policies issued in compliance with the pre-
 42        ceding provisions of this section the words, "Idaho standard policy."
 43        (g)  An insurer may write upon the margin or across the face of  the  pol-
  1        icy,  or  write  or  print in type not smaller than nonpareil upon a slip,
  2        slips, rider or riders to be attached thereto,  provisions  adding  to  or
  3        relating  to  those  contained  in  the standard form; and all such slips,
  4        riders, endorsements and provisions must be  signed  by  the  officers  or
  5        agents of the insurer so using them.
  6        (h)  If the policy be made by a mutual, reciprocal or other insurer having
  7        special  regulations  lawfully applicable to its organization, membership,
  8        policies or contracts of insurance such regulations  shall  apply  to  and
  9        form  a  part  of  the  policy as the same may be written or printed upon,
 10        attached or appended thereto.
 11        (i)  Every policy shall have legibly inscribed upon its  face  and  filing
 12        back suitable words to designate whether the insurer making such insurance
 13        be a stock, mutual or reciprocal insurer, provided, that any insurer orga-
 14        nized under special charter provisions may so indicate upon its policy and
 15        may add a statement of the plan under which it operates in this state.
 16        (j)  Every  fire  policy shall contain language that provides for a thirty
 17        (30) day written notice to the insured prior to cancellation of  the  pol-
 18        icy.  Proof  of  mailing of notice of cancellation, or of intention not to
 19        renew, or of reasons for cancellation or nonrenewal to the  named  insured
 20        at his address shall be sufficient proof of notice.
 21        (k)  Every  fire  policy  shall provide that it becomes effective at 12:01
 22        a.m. of the standard time of the place where the property covered  by  the
 23        insurance is located, on the effective date of the policy.
 24        (2)  An  insurer  issuing  the standard fire policy is authorized to affix
 25    thereto or include therein a written statement that the policy does not  cover
 26    loss  or  damage  caused by nuclear reaction, nuclear radiation or radioactive
 27    contamination, all whether directly or indirectly resulting  from  an  insured
 28    peril  under  the  policy;  but nothing herein contained shall be construed to
 29    prohibit the attachment to any such policy of an endorsement  or  endorsements
 30    specifically  assuming coverage for loss or damage caused by nuclear reaction,
 31    nuclear radiation or radioactive contamination.
 32        (3)  The standard fire policy is not mandatory for vehicle  insurance,  or
 33    for marine insurance, or inland marine insurance as the same is defined pursu-
 34    ant to section 41-1401(2), Idaho Code, or for insurance on growing crops.
 35        (4)  Any policy or contract otherwise subject to the provisions of subsec-
 36    tion  (1) hereof, which includes either on an unspecified basis as to the cov-
 37    erage or for a single premium coverage against the peril of fire and  substan-
 38    tial coverage against other perils need not comply with the provisions of sub-
 39    section (1) hereof, provided:
 40        (a)  Such  policy  or  contract shall afford coverage, with respect to the
 41        peril of fire, not less than the coverage afforded by such  standard  fire
 42        policy,
 43        (b)  The  provisions in relation to mortgagee interests and obligations in
 44        such standard fire policy shall be incorporated therein without change,
 45        (c)  Such policy or contract is complete as to all of  its  terms  without
 46        reference  to the standard form of fire insurance policy or any other pol-
 47        icy, and
 48        (d)  The director is satisfied that such policy or contract complies  with
 49        the provisions hereof.

Statement of Purpose / Fiscal Impact

                  STATEMENT OF PURPOSE

                        RS 14558

This legislation amends Idaho Code to provide proof of
mailing of notice of cancellation of a fire insurance
policy, or of intention not to renew, or of reasons for
cancellation or nonrenewal to the named insured at his
address shall be sufficient proof of notice. This changes
the code to match the existing auto code section.
                      FISCAL NOTE

There is no cost incurred.
Contact:  Representative Wendy Jaquet
          Representative Donna Pence
          Senator John Goedde
          Senator Clint Stennett