2005 Legislation
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SENATE BILL NO. 1009 – Real estate license, insurance, amt


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Bill Status

S1009.......................................by COMMERCE AND HUMAN RESOURCES
REAL ESTATE LICENSE - Amends existing law relating to real estate licenses
to increase the maximum amount of the premium for errors and omissions
insurance obtained by the Real Estate Commission.
01/14    Senate intro - 1st rdg - to printing
01/17    Rpt prt - to Com/HuRes
01/26    Rpt out - rec d/p - to 2nd rdg
01/27    2nd rdg - to 3rd rdg
02/04    3rd rdg - PASSED - 31-0-4
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Gannon,
      Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
      Malepeai, Marley, McGee, McKenzie, Richardson, Schroeder, Stegner,
      Stennett, Sweet, Werk, Williams(Williams)
      NAYS -- None
      Absent and excused -- Davis, Lodge, Noble, Pearce
    Floor Sponsor - Coiner
    Title apvd - to House
02/07    House intro - 1st rdg - to Bus
03/08    Rpt out - rec d/p - to 2nd rdg
03/09    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 66-0-4
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon,
      Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Field(18), Field(23), Garrett, Hart(Jacobson), Harwood, Henbest,
      Henderson, Jaquet, Jones, Kemp, Lake, LeFavour, Martinez, Mathews,
      McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
      Pasley-Stuart, Pence, Ring, Ringo, Rusche, Rydalch, Sali, Sayler,
      Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30),
      Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr.
      NAYS -- None
      Absent and excused -- Eskridge, Loertscher, Raybould, Roberts
    Floor Sponsor - Edmunson
    Title apvd - to Senate
03/16    To enrol
03/17    Rpt enrol - Pres signed
03/18    Sp signed
03/21    To Governor
03/23    Governor signed
         Session Law Chapter 106
         Effective: 07/01/05

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                       IN THE SENATE
                                    SENATE BILL NO. 1009
  1                                        AN ACT
  5    Be It Enacted by the Legislature of the State of Idaho:
  6        SECTION 1.  That Section 54-2013, Idaho Code, be, and the same  is  hereby
  7    amended to read as follows:
  8        54-2013.  ERRORS  AND OMISSIONS INSURANCE. (1) Each licensee who is activ-
  9    ely licensed under this chapter shall, as a condition to licensing, carry  and
 10    maintain errors and omissions insurance to cover all licensed activities under
 11    the provisions of this chapter.
 12        (2)  The commission shall make the insurance required under the provisions
 13    of  this  section  available to each licensee by contracting with an insurance
 14    provider for errors and omissions insurance coverage for each  licensee  after
 15    competitive,  sealed  bidding  in  accordance with chapter 57, title 67, Idaho
 16    Code. The exact premium shall be set by the commission by motion.
 17        (3)  Any policy obtained by the commission  shall  be  available  to  each
 18    licensee  with no right on the part of the insurance provider to cancel cover-
 19    age for any licensee.
 20        (4)  Each licensee shall have the option of obtaining errors and omissions
 21    insurance  independently,  if  the  coverage  contained  in  an  independently
 22    obtained policy complies with the minimum requirements established by the com-
 23    mission.
 24        (5)  The commission shall determine the terms and conditions  of  coverage
 25    required  under  the provisions of this section including, but not limited to,
 26    the minimum limits of coverage, the permissible deductible and the permissible
 27    exemptions.
 28        (6)  A licensee seeking to obtain or renew an active license shall certify
 29    to the commission that he is in compliance with the insurance requirements  of
 30    this  section.  A licensee who elects not to participate in the insurance pro-
 31    gram administered by the commission shall obtain a  certificate  of  coverage,
 32    signed by an authorized agent or employee of the insurance carrier, reflecting
 33    proof  of  insurance  meeting  the requirements established by the commission.
 34    Upon request by the commission the licensee shall produce the certificate  for
 35    inspection.
 36        (7)  If  the commission is unable to obtain errors and omissions insurance
 37    coverage to insure all licensees who choose to participate  in  the  insurance
 38    program  at  a reasonable premium, not to exceed one two hundred forty dollars
 39    ($14200)  per year, per licensee, the requirement  of  insurance  coverage  as
 40    provided in this section shall be void during the applicable contract period.
 41        (8)  The  commission  is also specifically empowered to charge and collect
 42    an administrative fee in addition to the premium paid from each  licensee  who
 43    obtains  errors and omissions insurance through the commission contract, which
  1    fee shall not exceed ten dollars ($10.00) per  licensee.  This  administrative
  2    fee  shall be of an amount sufficient to raise that revenue required to admin-
  3    ister the provisions of this section. The limit in subsection (7) of this sec-
  4    tion applies only to premium cost and not to any administrative fee charged.

Statement of Purpose / Fiscal Impact

                 STATEMENT  OF  PURPOSE
                        RS 14384

This legislative proposal would increase the maximum premium for 
which the IREC can contract for a group errors and omissions 
insurance, from $140 per licensee per year, to $200.  The premium 
under the current contract is $134 per licensee.  However, the 
IREC expects an increase when the contract comes up for renewal in 
October 2005.  Unless the IREC obtains a contract within the 
statutory limit, the requirement that licensees carry errors and 
omissions insurance will be voided. 

                       FISCAL  IMPACT

None to the General Fund, as no General Fund dollars are used by 
IREC.  None to any political subdivisions, as IREC is funded 
primarily from license fees.  None to the Agency.

Name:		Donna Jones
Agency:		Real Estate
Phone:		334-3285

Statement of Purpose/Fiscal Impact	               S 1009