View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
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
]]]] 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
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