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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 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
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