2007 Legislation
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HOUSE BILL NO. 112 – Insurance, non-English ads

HOUSE BILL NO. 112

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Bill Status



H0112...........................................................by BUSINESS
INSURANCE - Adds to existing law to provide for advertisement disclosure if
an insurer advertises in a language other than English; and to provide that
an insurance policy is not modified when advertisement of the policy is in
a language other than English.
                                                                        
02/06    House intro - 1st rdg - to printing
02/07    Rpt prt - to Bus
02/28    Rpt out - rec d/p - to 2nd rdg
03/01    2nd rdg - to 3rd rdg
03/02    3rd rdg - FAILED - 30-40-0
      AYES -- Anderson, Barrett, Bedke, Bilbao, Black, Block, Bolz,
      Bradford, Chadderdon, Collins, Crane, Eskridge, Hagedorn, Harwood,
      Henderson, Kren, Lake, Loertscher, Mathews, Moyle, Patrick, Raybould,
      Ring, Schaefer, Shepherd(2), Shirley, Wills, Wood(27), Wood(35), Mr.
      Speaker
      NAYS -- Andrus, Bayer, Bell, Bock, Boe, Brackett, Chavez, Chew,
      Clark, Durst, Edmunson, Hart, Henbest, Jaquet, Killen, King,
      Labrador, LeFavour, Luker, Marriott, McGeachin, Mortimer, Nielsen,
      Nonini, Pasley-Stuart, Pence, Ringo, Roberts, Ruchti, Rusche, Sayler,
      Shepherd(8), Shively, Smith(30), Smith(24), Snodgrass, Stevenson,
      Thayn, Trail, Vander Woude
      Absent and excused -- None
    Floor Sponsor - Hagedorn
    Filed in Office of the Chief Clerk

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 112
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO INSURANCE; AMENDING CHAPTER 13, TITLE 41, IDAHO CODE, BY THE ADDI-
  3        TION OF A NEW SECTION 41-1303A, IDAHO CODE, TO PROVIDE  FOR  ADVERTISEMENT
  4        DISCLOSURE  IF  AN INSURER ADVERTISES IN A LANGUAGE OTHER THAN ENGLISH AND
  5        TO PROVIDE THAT ADVERTISEMENT IN LANGUAGES OTHER  THAN  ENGLISH  DOES  NOT
  6        MODIFY THE POLICY.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION  1.  That  Chapter  13,  Title 41, 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 41-1303A, Idaho Code, and to read as follows:
                                                                        
 11        41-1303A.  NON-ENGLISH  ADVERTISEMENTS. (1) An insurer who advertises in a
 12    language other than English is not required to provide an insurance policy  in
 13    any  language  other  than English so long as the advertisement states clearly
 14    that the policy that is purchased is available only in English.
 15        (2)  Advertisement regarding an insurance policy in languages  other  than
 16    English  may  not  be construed to modify the policy in the event of a dispute
 17    over the provisions of the policy.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 16856

This legislation, "Advertisements in languages other than English"
(similar to the Oregon Statute) states that an insurance carrier
may provide advertising and informational materials in a non-
English language, so long as it is made clear that the policy that
might be purchased will only be made available in English.  No
foreign-language advertisement can be construed to modify the
provisions of the insurance contract written in English.

This protection is desirable for Idaho's citizens and Idaho
insurers since a significant number of Idaho residents do not speak
English.  These are persons who drive cars, rent and own
properties, need life or health insurance, etc.  When insurers are
able to provide information in foreign languages these people are
better served, which can be of great benefit to the non-English-
speaking insured.

If an insurer's obligations are not based upon the legal
interpretation of a policy contract written in English, arguments
could arise that include extra-contractual circumstances because of
nuances found in all foreign languages (and advertising materials
if produced in those languages), and coverage disputes then will
become fact questions (i.e., jury trial with language experts,
etc.) rather than a question of law (a judicial decision).


                           FISCAL NOTE

There is no negative fiscal impact to the General Fund.



Contact
Name:     Allyn Dingel 
Phone:    333-8540



STATEMENT OF PURPOSE/FISCAL NOTE                         H 112