2006 Legislation
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HOUSE BILL NO. 653 – MV dealer/manuf, liability insurnc

HOUSE BILL NO. 653

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Bill Status



H0653...........................................................by BUSINESS
LIABILITY INSURANCE - MOTOR VEHICLE DEALERS - Adds to existing law relating
to liability insurance to require dealers and vehicle manufacturers to
obtain liability insurance as a condition of licensure; to require minimum
coverage amounts; and to require that certificates of insurance be filed
with the Idaho Transportation Department.
                                                                        
02/10    House intro - 1st rdg - to printing
02/13    Rpt prt - to Bus
02/28    Rpt out - rec d/p - to 2nd rdg
03/01    2nd rdg - to 3rd rdg
03/06    3rd rdg - PASSED - 63-3-4
      AYES -- Anderson, Andrus, Barraclough, Bastian, Bayer, Bedke, Bell,
      Bilbao, Black, Block, Bolz, Brackett, Bradford, Cannon, Chadderdon,
      Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Hart, Harwood, Henbest, Henderson, Jaquet,
      Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin,
      Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence,
      Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smylie,
      Snodgrass, Stevenson, Trail, Wills, Mr. Speaker
      NAYS -- Barrett, McKague, Wood
      Absent and excused -- Boe, Garrett, Sayler, Smith(24)
    Floor Sponsor - Nonini
    Title apvd - to Senate
03/07    Senate intro - 1st rdg - to Com/HuRes
03/15    Rpt out - rec d/p - to 2nd rdg
03/16    2nd rdg - to 3rd rdg
03/20    3rd rdg - PASSED - 33-0-2
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
      Langhorst, Little, Lodge, Malepeai, McGee, McKenzie, Pearce,
      Richardson, Schroeder, Stegner, Stennett, Werk, Williams
      NAYS -- None
      Absent and excused -- Marley, Sweet
    Floor Sponsor - Goedde
    Title apvd - to House
03/21    To enrol
03/22    Rpt enrol - Sp signed
03/23    Pres signed - To Governor
03/24    Governor signed
         Session Law Chapter 208
         Effective: 07/01/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 653
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LIABILITY INSURANCE; AMENDING CHAPTER 16, TITLE 49, IDAHO CODE, BY
  3        THE ADDITION OF A NEW SECTION 49-1608A, IDAHO CODE, TO REQUIRE DEALERS AND
  4        VEHICLE MANUFACTURERS TO OBTAIN LIABILITY  INSURANCE  AS  A  CONDITION  OF
  5        LICENSURE, TO REQUIRE MINIMUM COVERAGE AMOUNTS AND TO REQUIRE THAT CERTIF-
  6        ICATES OF INSURANCE BE FILED WITH THE IDAHO TRANSPORTATION DEPARTMENT.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION  1.  That  Chapter  16,  Title 49, Idaho Code, be, and the same is
  9    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 10    ignated as Section 49-1608A, Idaho Code, and to read as follows:
                                                                        
 11        49-1608A.  DEALER  AND  MANUFACTURER LIABILITY INSURANCE. Every dealer and
 12    vehicle manufacturer shall, as a condition of issuance or renewal of a  dealer
 13    or vehicle manufacturer license by the department, continuously provide insur-
 14    ance against loss resulting from liability imposed by law for bodily injury or
 15    death  or  damage to property suffered by any person arising out of the owner-
 16    ship, maintenance or use of vehicles owned by or  under  the  control  of  the
 17    licensee and used in conduct of the business of the dealer or vehicle manufac-
 18    turer. Such insurance shall be in an amount not less than twenty-five thousand
 19    dollars  ($25,000)  because  of bodily injury to or death of one (1) person in
 20    any one (1) accident and, subject to the limit for  one  (1)  person,  in  the
 21    amount  of  fifty  thousand  dollars  ($50,000) because of bodily injury to or
 22    death of two (2) or more persons in any one (1) accident, and in the amount of
 23    fifteen thousand dollars ($15,000) because of  injury  to  or  destruction  of
 24    property  of  others  in  any  one (1) accident. The applicant for a dealer or
 25    vehicle manufacturer license shall maintain on file with the department a cer-
 26    tificate of liability insurance, issued by  an  insurance  or  surety  company
 27    authorized to do business in this state or by an authorized agent of such com-
 28    pany,  in  such form as may be prescribed by the director of the department of
 29    insurance as set forth in section 49-1231, Idaho Code.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15928

This legislation provides that a dealer or vehicle manufacturer, as
a condition of licensure by the Idaho Department of Transportation,
must maintain insurance against liability for loss resulting from
bodily injury, death, or property damage arising out of the
ownership, maintenance or use of vehicles owned by, or under the
control of, the licensee and used in the conduct of the licensee's
business.  The legislation does not create any additional liability
on the part of the licensee, but does assure that if liability
arises out of the use of the vehicle by the licensee, or the
licensee's customers, there will be at least a minimal amount of
insurance coverage for the injured party.

The amount of insurance required is the same minimum amount
required for other vehicle owners pursuant to Idaho's financial
responsibility law.  This legislation requires that the licensee
file with the Department the certificate of liability insurance. 
The casualty insurance company is not required to take any action
with reference to notifying the Department of the existence, change
in status, or cancellation of the licensee's insurance policy.



                           FISCAL NOTE

There will be no fiscal impact on state or local funds.




Contact:  Rep. Bob Nonini 
          332-1000

          Bill Roden
          Automobile Dealers Association
          336-7930



STATEMENT OF PURPOSE/FISCAL NOTE                         H 653