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H0255......................................................by STATE AFFAIRS
MOTOR VEHICLES - UNDERINSURED MOTORIST - Amends existing law to require
personal lines insurers to make certain disclosures relating to
underinsured motorist coverage; and to provide for violations and
penalties.
03/01 House intro - 1st rdg - to printing
03/02 Rpt prt - to Bus
03/06 Rpt out - rec d/p - to 2nd rdg
03/07 2nd rdg - to 3rd rdg
03/08 3rd rdg - PASSED - 66-0-4
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
Clark, Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart,
Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
Lake, LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin,
Mortimer, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould,
Ring, Ringo, Ruchti, Rusche, Sayler, Shepherd(2), Shepherd(8),
Shirley, Shively, Smith(30), Snodgrass, Stevenson, Thayn, Trail,
Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- Moyle, Roberts, Schaefer, Smith(24)
Floor Sponsor - Mathews
Title apvd - to Senate
03/09 Senate intro - 1st rdg - to Com/HuRes
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 255
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO AUTOMOBILE INSURANCE; AMENDING SECTION 41-2502, IDAHO CODE, TO
3 REQUIRE PERSONAL LINES INSURERS TO MAKE CERTAIN DISCLOSURES RELATING TO
4 COVERAGE, TO PROVIDE FOR VIOLATIONS AND PENALTIES AND TO CLARIFY APPLICA-
5 BILITY; AND AMENDING SECTION 41-2503, IDAHO CODE, TO REVISE A DEFINITION
6 AND TO DEFINE A TERM.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 41-2502, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 41-2502. UNINSURED MOTORIST COVERAGE FOR AUTOMOBILE INSURANCE. (1) No
11 policy insuring against loss resulting from liability imposed by law for
12 bodily injury or death suffered by any natural person arising out of the own-
13 ership, maintenance or use of a motor vehicle shall be delivered or issued for
14 delivery in this state with respect to any motor vehicle registered or princi-
15 pally garaged in this state unless coverage is provided therein or supplemen-
16 tal thereto, in limits for bodily injury or death as set forth in section
17 49-117, Idaho Code, as amended from time to time, under provisions approved by
18 the director of the department of insurance, for the protection of persons
19 insured thereunder who are legally entitled to recover damages from owners or
20 operators of uninsured motor vehicles because of bodily injury, sickness or
21 disease, including death, resulting therefrom. The named insured shall have
22 the right to reject such coverage, which rejection must be in writing; and
23 provided further, such coverage need not be provided in or supplemental to a
24 renewal policy where the named insured had rejected the coverage in connection
25 with a policy previously issued to him by the same insurer.
26 (2) A personal lines insurer subject to the provisions of this chapter
27 that does not write or sell an underinsured motorist policy in Idaho must dis-
28 close to a policyholder purchasing motor vehicle liability insurance from that
29 insurer for the first time in this state that uninsured motorist coverage does
30 not provide coverage as the result of a collision with an underinsured vehicle
31 as defined in section 41-2503, Idaho Code.
32 (3) Each violation of this section in addition to any applicable pre-
33 scribed denial, suspension or revocation of certificate of authority or
34 license shall be punishable by an administrative penalty of not more than one
35 thousand dollars ($1,000) for any individual or natural person and not more
36 than five thousand dollars ($5,000) for any other legal entity imposed by the
37 director. Each instance of violation may be considered a separate offense.
38 (4) Nothing in this chapter shall be construed to create a private right
39 of action for violations of the provisions of this section.
40 SECTION 2. That Section 41-2503, Idaho Code, be, and the same is hereby
41 amended to read as follows:
2
1 41-2503. "UNINSURED MOTOR VEHICLE" -- "UNDERINSURED MOTOR VEHICLE" --
2 DEFINED. (1) For the purposes of this coverage, "uninsured motor vehicle"
3 means a motor vehicle for which there is no bodily injury liability policy, or
4 bond, in effect at the time of a collision. Tthe term "uninsured motor vehi-
5 cle" shall, subject to the terms and conditions of such coverage, be deemed to
6 include an insured motor vehicle where the liability insurer thereof is unable
7 to make payment with respect to the legal liability of its insured within the
8 limits specified therein because of insolvency.
9 (2) For purposes of section 41-2502, Idaho Code, an "underinsured motor
10 vehicle" means a motor vehicle for which a bodily injury liability protection
11 is in effect and applicable at the time of the collision in an amount equal to
12 or greater than the minimum limits specified by the financial responsibility
13 laws of Idaho, but the sum of all applicable limits for bodily injury is less
14 than the coverage limit for underinsured motorist coverage.
STATEMENT OF PURPOSE
RS 17105
This legislation amends title 41 section 2502 of the Idaho Code
to require personal lines automobile insurers to make certain
disclosures relating to underinsured motorist coverage and to
clarify violation and penalties for unlawful non-disclosure.
FISCAL NOTE
There is no fiscal impact to the General Fund.
Contact
Name: Rep. Russ Mathews
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 255