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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. Speaker 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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature First Regular Session - 2005 IN THE SENATE SENATE BILL NO. 1009 BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO IDAHO REAL ESTATE LICENSE LAW; AMENDING SECTION 54-2013, IDAHO 3 CODE, TO INCREASE THE MAXIMUM AMOUNT OF THE PREMIUM FOR ERRORS AND OMIS- 4 SIONS INSURANCE OBTAINED BY THE COMMISSION. 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 onetwo hundred fortydollars 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 2 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 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. CONTACT Name: Donna Jones Agency: Real Estate Phone: 334-3285 Statement of Purpose/Fiscal Impact S 1009