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H0160aa.........................................................by BUSINESS
FIRE INSURANCE POLICIES - Amends existing law to provide that commercial
standard fire insurance policies may exclude coverage for loss of fire or
other perils insured against if the fire or other perils are caused
directly or indirectly by terrorism.
02/10 House intro - 1st rdg - to printing
02/11 Rpt prt - to Bus
03/08 Rpt out - to Gen Ord
03/09 Rpt out amen - to engros
03/10 Rpt engros - 1st rdg - to 2nd rdg as amen
03/11 2nd rdg - to 3rd rdg as amen
03/14 3rd rdg as amen - PASSED - 61-3-6
AYES -- Anderson, Andrus, Barraclough, Bastian, Bayer, Bedke, Bell,
Bilbao, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark,
Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Garrett, Hart(Jacobson), Harwood, Henbest,
Jaquet, Jones, Kemp, Lake, LeFavour, Mathews, McGeachin, Miller,
Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould,
Ring, Ringo, Rusche, Rydalch, Sayler, Schaefer, Shepherd(2),
Shepherd(8), Shirley, Skippen, Smith(24), Smylie, Snodgrass,
Stevenson, Trail, Wills, Wood, Mr. Speaker
NAYS -- Barrett, Martinez, Sali
Absent and excused -- Black, Henderson, Loertscher, McKague, Roberts,
Smith(30)
Floor Sponsor - Rusche
Title apvd - to Senate
03/15 Senate intro - 1st rdg - to Com/HuRes
03/18 Rpt out - rec d/p - to 2nd rdg
03/21 2nd rdg - to 3rd rdg
03/22 3rd rdg - PASSED - 29-3-2, 1 vacancy
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burtenshaw,
Cameron, Coiner, Compton, Corder, Darrington, Davis, Gannon, Geddes,
Goedde, Hill, Jorgenson, Kelly, Langhorst, Little, Malepeai, McGee,
McKenzie, Richardson, Schroeder, Stegner, Stennett, Sweet, Werk,
Williams
NAYS -- Burkett, Marley, Pearce
Absent and excused -- Keough, Lodge, (District 21 seat vacant)
Floor Sponsor - Goedde
Title apvd - to House
03/23 To enrol
03/24 Rpt enrol - Sp signed
03/25 Pres signed
03/28 To Governor
04/01 Governor signed
Session Law Chapter 237
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. 160
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO STANDARD FIRE POLICIES; AMENDING SECTION 41-2401, IDAHO CODE, TO
3 PROVIDE THAT COMMERCIAL STANDARD FIRE INSURANCE POLICIES MAY EXCLUDE COV-
4 ERAGE FOR LOSS BY FIRE OR OTHER PERILS INSURED AGAINST IF THE FIRE OR
5 OTHER PERILS ARE CAUSED DIRECTLY OR INDIRECTLY BY TERRORISM.
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-
2
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.
19 (k) Every fire policy shall provide that it becomes effective at 12:01
20 a.m. of the standard time of the place where the property covered by the
21 insurance is located, on the effective date of the policy.
22 (2) An insurer issuing the standard fire policy is authorized to affix
23 thereto or include therein a written statement that the policy does not cover
24 loss or damage caused by nuclear reaction, nuclear radiation or radioactive
25 contamination, all whether directly or indirectly resulting from an insured
26 peril under the policy; but nothing herein contained shall be construed to
27 prohibit the attachment to any such policy of an endorsement or endorsements
28 specifically assuming coverage for loss or damage caused by nuclear reaction,
29 nuclear radiation or radioactive contamination.
30 (3) The standard fire policy is not mandatory for vehicle insurance, or
31 for marine insurance, or inland marine insurance as the same is defined pursu-
32 ant to section 41-1401(2), Idaho Code, or for insurance on growing crops.
33 (4) Any policy or contract otherwise subject to the provisions of subsec-
34 tion (1) hereof, which includes either on an unspecified basis as to the cov-
35 erage or for a single premium coverage against the peril of fire and substan-
36 tial coverage against other perils need not comply with the provisions of sub-
37 section (1) hereof, provided:
38 (a) Such policy or contract shall afford coverage, with respect to the
39 peril of fire, not less than the coverage afforded by such standard fire
40 policy,
41 (b) The provisions in relation to mortgagee interests and obligations in
42 such standard fire policy shall be incorporated therein without change,
43 (c) Such policy or contract is complete as to all of its terms without
44 reference to the standard form of fire insurance policy or any other pol-
45 icy, and
46 (d) The director is satisfied that such policy or contract complies with
47 the provisions hereof.
48 (5) With respect to a commercial insurance policy, such standard fire
49 insurance policy may exclude coverage for loss by fire or other perils insured
50 against if the fire or other perils are caused directly or indirectly by ter-
51 rorism.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
Moved by Rusche
Seconded by Henbest
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 160
1 AMENDMENT TO SECTION 1
2 On page 2 of the printed bill, in line 51, following "rorism." insert: "As
3 used in this section, the term "terrorism" means a violent act or an act that:
4 (a) Is dangerous to human life, property or infrastructure;
5 (b) Results in damage within the United States, or outside of the United
6 States in the case of an air carrier or vessel or the premises of a United
7 States mission; and
8 (c) Is committed by an individual or individuals acting on behalf of any
9 foreign person or foreign interest, as part of an effort to coerce the
10 civilian population of the United States or to influence the policy or
11 affect the conduct of the United States government by coercion.".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 160, As Amended
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO STANDARD FIRE POLICIES; AMENDING SECTION 41-2401, IDAHO CODE, TO
3 PROVIDE THAT COMMERCIAL STANDARD FIRE INSURANCE POLICIES MAY EXCLUDE COV-
4 ERAGE FOR LOSS BY FIRE OR OTHER PERILS INSURED AGAINST IF THE FIRE OR
5 OTHER PERILS ARE CAUSED DIRECTLY OR INDIRECTLY BY TERRORISM.
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-
2
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.
19 (k) Every fire policy shall provide that it becomes effective at 12:01
20 a.m. of the standard time of the place where the property covered by the
21 insurance is located, on the effective date of the policy.
22 (2) An insurer issuing the standard fire policy is authorized to affix
23 thereto or include therein a written statement that the policy does not cover
24 loss or damage caused by nuclear reaction, nuclear radiation or radioactive
25 contamination, all whether directly or indirectly resulting from an insured
26 peril under the policy; but nothing herein contained shall be construed to
27 prohibit the attachment to any such policy of an endorsement or endorsements
28 specifically assuming coverage for loss or damage caused by nuclear reaction,
29 nuclear radiation or radioactive contamination.
30 (3) The standard fire policy is not mandatory for vehicle insurance, or
31 for marine insurance, or inland marine insurance as the same is defined pursu-
32 ant to section 41-1401(2), Idaho Code, or for insurance on growing crops.
33 (4) Any policy or contract otherwise subject to the provisions of subsec-
34 tion (1) hereof, which includes either on an unspecified basis as to the cov-
35 erage or for a single premium coverage against the peril of fire and substan-
36 tial coverage against other perils need not comply with the provisions of sub-
37 section (1) hereof, provided:
38 (a) Such policy or contract shall afford coverage, with respect to the
39 peril of fire, not less than the coverage afforded by such standard fire
40 policy,
41 (b) The provisions in relation to mortgagee interests and obligations in
42 such standard fire policy shall be incorporated therein without change,
43 (c) Such policy or contract is complete as to all of its terms without
44 reference to the standard form of fire insurance policy or any other pol-
45 icy, and
46 (d) The director is satisfied that such policy or contract complies with
47 the provisions hereof.
48 (5) With respect to a commercial insurance policy, such standard fire
49 insurance policy may exclude coverage for loss by fire or other perils insured
50 against if the fire or other perils are caused directly or indirectly by ter-
51 rorism. As used in this section, the term "terrorism" means a violent act or
52 an act that:
53 (a) Is dangerous to human life, property or infrastructure;
54 (b) Results in damage within the United States, or outside of the United
55 States in the case of an air carrier or vessel or the premises of a United
3
1 States mission; and
2 (c) Is committed by an individual or individuals acting on behalf of any
3 foreign person or foreign interest, as part of an effort to coerce the
4 civilian population of the United States or to influence the policy or
5 affect the conduct of the United States government by coercion.
STATEMENT OF PURPOSE
RS 14500
The purpose of this legislation is to allow insurers the
option to exclude terrorism risk from the Standard Fire
Policy statute requirements with regard to commercial
insurance policies. A majority of states nationally either
do not control the content of standard fire policies or have
specific statutory language allowing commercial terrorism
exclusions.
FISCAL NOTE
None.
Contact: Woody Richards
Angela Richards
Property and Casualty Insurers Assn. of America
(208) 345-8371
STATEMENT OF PURPOSE/FISCAL NOTE H 160