2007 Legislation
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SENATE BILL NO. 1126 – MV, liability coverage, minimum

SENATE BILL NO. 1126

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Bill Status



S1126aa,aaH..........................................by JUDICIARY AND RULES
MOTOR VEHICLE LIABILITY - Amends existing law to require that a minimum
level of motor vehicle liability coverage be provided to certain persons;
to revise liability provisions relating to liability for imputed
negligence; and to provide nonliability to the owner that rents or leases a
motor vehicle under certain circumstances.

02/12    Senate intro - 1st rdg - to printing
02/13    Rpt prt - to Com/HuRes
02/23    Rpt out - to 14th Ord
03/01    Rpt out amen - to engros
03/02    Rpt engros - 1st rdg - to 2nd rdg as amen
03/05    2nd rdg - to 3rd rdg as amen
03/06    3rd rdg as amen - PASSED - 33-2-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Hammond,
      Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
      Malepeai, McGee, McKague, McKenzie, Pearce, Richardson, Schroeder,
      Siddoway, Stegner, Stennett, Werk
      NAYS -- Cameron, Goedde
      Absent and excused -- None
    Floor Sponsor - Hill
    Title apvd - to House
03/07    House intro - 1st rdg - to Transp
03/15    Rpt out - to Gen Ord
    Rpt out amen - to 1st rdg as amen
03/16    1st rdg - to 2nd rdg as amen
03/19    2nd rdg - to 3rd rdg as amen
03/20    3rd rdg as amen - PASSED - 66-1-3
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chew, Clark,
      Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Harwood,
      Henbest, Henderson, Jaquet, Killen, King, Labrador, Lake, LeFavour,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
      Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring,
      Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2),
      Shepherd(8), Shirley, Shively, Smith(24), Snodgrass, Stevenson,
      Thayn, Trail, Vander Woude, Wills, Wood(27), Wood(35)
      NAYS -- Smith(30)
      Absent and excused -- Chavez, Kren, Mr. Speaker
    Floor Sponsors - Wood(35) & Ringo
    Title apvd - to Senate
03/21    Senate concurred in House amens - to engros
    Rpt engros - 1st rdg - to 2nd rdg as amen
03/22    2nd rdg - to 3rd rdg as amen
    Rls susp - PASSED - 33-2-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Hammond,
      Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
      Malepeai, McGee, McKague, McKenzie, Pearce, Richardson, Schroeder,
      Siddoway, Stegner, Stennett, Werk
      NAYS -- Cameron, Goedde
      Absent and excused -- None
    Floor Sponsor - Hill
    Title apvd - to enrol
03/23    Rpt enrol - Pres signed
03/26    Sp signed - To Governor
03/30    Governor signed
         Session Law Chapter 307
         Effective: 07/01/07

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1126
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO MOTOR VEHICLE LIABILITY; AMENDING SECTION 49-1212, IDAHO CODE,  TO
  3        REQUIRE  THAT  A MINIMUM LEVEL OF MOTOR VEHICLE LIABILITY COVERAGE BE PRO-
  4        VIDED TO CERTAIN PERSONS; AND AMENDING SECTION  49-2417,  IDAHO  CODE,  TO
  5        REVISE LIABILITY PROVISIONS RELATING TO LIABILITY FOR IMPUTED NEGLIGENCE.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION  1.  That  Section 49-1212, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        49-1212.  EXPRESSED, PERMITTED AND IMPLIED  PROVISIONS  OF  MOTOR  VEHICLE
 10    LIABILITY POLICY. (1) An owner's policy of liability insurance shall:
 11        (a)  Designate  by  explicit  description  or by appropriate reference all
 12        motor vehicles with respect to which coverage is to be granted; and
 13        (b)  Insure the person named therein and any  other  person,  as  insured,
 14        using  any  such described motor vehicles with the express or implied per-
 15        mission of the named insured, against loss from the liability  imposed  by
 16        law  for  damages  arising out of the ownership, maintenance or use of the
 17        motor vehicles within the United States of America or the Dominion of Can-
 18        ada, subject to limits exclusive of interest and costs,  with  respect  to
 19        each motor vehicle, as provided in section 49-117, Idaho Code.
 20        (2)  An  operator's  policy of liability insurance shall insure the person
 21    named as insured therein against loss from the liability imposed upon  him  by
 22    law  for  damages arising out of the use by him of any motor vehicle not owned
 23    by him, within the same territorial limits and subject to the same  limits  of
 24    liability  as  are set forth in subsection (1) of this section with respect to
 25    an owner's policy of liability insurance.
 26        (3)  A motor vehicle liability policy shall state the name and address  of
 27    the  named  insured,  the coverage afforded by the policy, the premium charged
 28    therefor, the policy period and the limits of liability, and shall contain  an
 29    agreement  or  be  indorsed  that insurance is provided in accordance with the
 30    coverage defined in this chapter as respects bodily injury and death or  prop-
 31    erty damage, or both, and is subject to all the provisions of this chapter.
 32        (4)  A motor vehicle liability policy shall not insure any liability under
 33    any  worker's  compensation  law  as provided in title 72, Idaho Code, nor any
 34    liability on account of bodily injury to  or  death  of  an  employee  of  the
 35    insured  while engaged in the employment, other than domestic, of the insured,
 36    or while engaged in the operation, maintenance  or  repair  of  any  described
 37    motor vehicle nor any liability for damage to property owned by, rented to, in
 38    charge of or transported by the insured.
 39        (5)  Every  motor vehicle liability policy shall be subject to the follow-
 40    ing provisions which need not be contained therein:
 41        (a)  The policy may not be canceled or annulled as to any liability by any
 42        agreement between the insurance carrier and the insured after  the  occur-
 43        rence  of any injury or damage covered by the motor vehicle liability pol-
                                                                        
                                       2
                                                                        
  1        icy.
  2        (b)  Satisfaction by the insured of a judgment for injury or damage  shall
  3        not be a condition precedent to the right or duty of the insurance carrier
  4        to make payment on account of the injury or damage.
  5        (c)  The  insurance  carrier shall have the right to settle any claim cov-
  6        ered  by the policy, and if the settlement is  made  in  good  faith,  the
  7        amount  shall be deductible from the limits of liability specified in sub-
  8        section (1)(b) of this section.
  9        (d)  The policy and its written application, if  any,  and  any  rider  or
 10        indorsement  which  does  not conflict with the provisions of this chapter
 11        shall constitute the entire contract between the parties.
 12        (6)  Any policy which grants the coverage required  for  a  motor  vehicle
 13    liability  policy  may also grant any lawful coverage in excess of or in addi-
 14    tion to the coverage specified for a motor vehicle liability policy,  and  any
 15    excess  or  additional coverage shall not be subject to the provisions of this
 16    chapter. With respect to a policy which grants an excess of additional  cover-
 17    age the term "motor vehicle liability policy" shall apply only to that part of
 18    the coverage which is required by this section.
 19        (7)  Any motor vehicle liability policy may provide that the insured shall
 20    reimburse  the  insurance  carrier for any payment the insurance carrier would
 21    not have been obligated to make under the terms of the policy except  for  the
 22    provisions of this chapter.
 23        (8)  Any  motor  vehicle liability policy may provide for the prorating of
 24    the insurance with other valid and collectible insurance.
 25        (9)  The requirements for a motor vehicle liability  policy  may  be  ful-
 26    filled  by  the  policies of one (1) or more insurance carriers which policies
 27    together meet the requirements of this chapter.
 28        (10) Any binder issued pending the issuance of a motor  vehicle  liability
 29    policy shall be deemed to fulfill the requirements for such a policy.
 30        (11) When the negligent operation of a loaned vehicle results in the death
 31    or injury to a person or personal property, except for the loaned vehicle, and
 32    at  the  time of the negligent operation of the loaned vehicle the operator of
 33    the loaned vehicle is insured under a motor vehicle liability policy complying
 34    with the financial responsibility law of this state, primary coverage for  the
 35    death  of  or  injury  to a person or personal property, except for the loaned
 36    vehicle, shall be provided by the operator's motor vehicle  liability  policy.
 37    The  insurance policy of the owner of the loaned vehicle shall provide second-
 38    ary or excess coverage for the death of or injury  to  a  person  or  personal
 39    property,  however  the loaned vehicle owner's insurance shall provide primary
 40    coverage for damage to the loaned vehicle.
 41        (a)  For the purpose of this subsection, "loaned vehicle"  means  a  motor
 42        vehicle which is provided for temporary use without charge to the operator
 43        by an entity licensed under chapter 16, title 49, Idaho Code, for the pur-
 44        pose  of  demonstrating  the vehicle to the operator as a prospective pur-
 45        chaser, or as a convenience to the operator during the repairing  or  ser-
 46        vicing  of  a  motor  vehicle for the operator, regardless of whether such
 47        repair or service is performed by the owner of the loaned  vehicle  or  by
 48        some other person or business.
 49        (b)  Should  the owner of a motor vehicle receive any compensation from or
 50        on behalf of the operator for the temporary  use  of  the  motor  vehicle,
 51        excluding  any  compensation  provided  to  the  owner  as a result of the
 52        repairing or servicing of a motor vehicle for the  operator,  the  owner's
 53        insurance  coverage  shall  be  primary  and  the operator's motor vehicle
 54        insurance shall be secondary or excess.
 55        (12) No motor vehicle liability policy  providing  coverage  beyond  state
                                                                        
                                       3
                                                                        
  1    mandated  minimum  limits  shall  provide  a  reduced level of coverage to any
  2    insured's family or household member or other authorized user.
                                                                        
  3        SECTION 2.  That Section 49-2417, Idaho Code, be, and the same  is  hereby
  4    amended to read as follows:
                                                                        
  5        49-2417.  OWNER'S TORT LIABILITY FOR NEGLIGENCE OF ANOTHER -- SUBROGATION.
  6    (1)  Every owner of a motor vehicle is liable and responsible for the death of
  7    or injury to a person or property resulting from negligence in  the  operation
  8    of his motor vehicle, in the business of the owner or otherwise, by any person
  9    using  or  operating the vehicle with the permission, expressed or implied, of
 10    the owner, and the negligence of the person shall be imputed to the owner  for
 11    all purposes of civil damages.
 12        (2)  The  liability of an owner for imputed negligence imposed by the pro-
 13    visions of this section and not arising through the relationship of  principal
 14    and  agent  or  master  and  servant is limited to the amounts set forth under
 15    "proof of financial responsibility" in section 49-117, Idaho Code, or the lim-
 16    its of the liability insurance maintained by the owner, whichever is greater.
 17        (3)  In any action against an owner for imputed negligence as  imposed  by
 18    the provisions of this section the operator of the vehicle whose negligence is
 19    imputed  to  the  owner shall be made a defendant party if personal service of
 20    process can be had upon that operator within Idaho. Upon recovery of  a  judg-
 21    ment,  recourse  shall  first  be  had against the property of the operator so
 22    served.
 23        (4)  In the event a recovery is had under the provisions of  this  section
 24    against  an  owner  for  imputed negligence the owner is subrogated to all the
 25    rights of the person injured and may  recover  from  the  operator  the  total
 26    amount of any judgment and costs recovered against the owner. If the bailee of
 27    an  owner  with  the  permission,  expressed or implied, of the owner, permits
 28    another to operate the motor vehicle of the owner, then  the  bailee  and  the
 29    driver  shall both be deemed operators of the vehicle of the owner, within the
 30    meaning of subsections (3) and (4) of this section.
 31        (5)  Where two (2) or more persons are injured or killed in one (1)  acci-
 32    dent,  the owner may settle or pay any bona fide claim for damages arising out
 33    of personal injuries or death, whether reduced to a judgment or not,  and  the
 34    payments  shall  diminish  to  the  extent  of  the owners' total liability on
 35    account of the accident. Payments so made, aggregating the full sum  of  fifty
 36    thousand  dollars ($50,000), shall extinguish all liability of the owner here-
 37    under to the claimants and all other persons on account of the accident.  Lia-
 38    bility  may  exist  by reason of imputed negligence, pursuant to this section,
 39    and not arising through the negligence of the owner nor through the  relation-
 40    ship of principal and agent nor master and servant.
 41        (6)  If  a  motor  vehicle  is  sold  under a contract of conditional sale
 42    whereby the title to the motor vehicle remains in the vendor,  the  vendor  or
 43    his assignee shall be deemed an owner within the provisions of this section.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                                                     Moved by    Moyle               
                                                                        
                                                     Seconded by Denney              
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                        HOUSE AMENDMENT TO S.B. NO. 1126, As Amended
                                                                        
  1                                AMENDMENT TO SECTION 2
  2        On page 3 of the engrossed bill, following line 44, insert:
  3        "(7)  An owner that rents or leases a motor vehicle to a person shall  not
  4    be  liable  under  the  laws  of the state of Idaho or a political subdivision
  5    thereof, by reason of being the owner of the vehicle, for harm to  persons  or
  6    property  that  results  or arises out of the use, operation, or possession of
  7    the vehicle during the period of the rental or lease if:
  8        (a)  The owner is engaged in the trade or business of renting  or  leasing
  9        motor vehicles; and
 10        (b)  There  is  no  negligence  or  criminal wrongdoing on the part of the
 11        owner.".
                                                                        
 12                                 CORRECTION TO TITLE
 13        On page 1, in line 5, following "NEGLIGENCE" insert: "AND TO PROVIDE  NON-
 14    LIABILITY  TO THE OWNER THAT RENTS OR LEASES A MOTOR VEHICLE TO A PERSON UNDER
 15    CERTAIN CIRCUMSTANCES".
                                                                        
                                       2
                                                                        
                                                     Moved by    Broadsword          
                                                                        
                                                     Seconded by Bilyeu              
                                                                        
                                                                        
                                       IN THE SENATE
                             SENATE AMENDMENT TO S.B. NO. 1126
                                                                        
  1                                AMENDMENT TO SECTION 1
  2        On page 3 of the printed bill, in line 2, following "user" insert: "except
  3    as provided in section 41-2510, Idaho Code".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                 SENATE BILL NO. 1126, As Amended, As Amended in the House
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO MOTOR VEHICLE LIABILITY; AMENDING SECTION 49-1212, IDAHO CODE,  TO
  3        REQUIRE  THAT  A MINIMUM LEVEL OF MOTOR VEHICLE LIABILITY COVERAGE BE PRO-
  4        VIDED TO CERTAIN PERSONS; AND AMENDING SECTION  49-2417,  IDAHO  CODE,  TO
  5        REVISE  LIABILITY  PROVISIONS RELATING TO LIABILITY FOR IMPUTED NEGLIGENCE
  6        AND TO PROVIDE NONLIABILITY TO THE OWNER THAT  RENTS  OR  LEASES  A  MOTOR
  7        VEHICLE TO A PERSON UNDER CERTAIN CIRCUMSTANCES.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION  1.  That  Section 49-1212, Idaho Code, be, and the same is hereby
 10    amended to read as follows:
                                                                        
 11        49-1212.  EXPRESSED, PERMITTED AND IMPLIED  PROVISIONS  OF  MOTOR  VEHICLE
 12    LIABILITY POLICY. (1) An owner's policy of liability insurance shall:
 13        (a)  Designate  by  explicit  description  or by appropriate reference all
 14        motor vehicles with respect to which coverage is to be granted; and
 15        (b)  Insure the person named therein and any  other  person,  as  insured,
 16        using  any  such described motor vehicles with the express or implied per-
 17        mission of the named insured, against loss from the liability  imposed  by
 18        law  for  damages  arising out of the ownership, maintenance or use of the
 19        motor vehicles within the United States of America or the Dominion of Can-
 20        ada, subject to limits exclusive of interest and costs,  with  respect  to
 21        each motor vehicle, as provided in section 49-117, Idaho Code.
 22        (2)  An  operator's  policy of liability insurance shall insure the person
 23    named as insured therein against loss from the liability imposed upon  him  by
 24    law  for  damages arising out of the use by him of any motor vehicle not owned
 25    by him, within the same territorial limits and subject to the same  limits  of
 26    liability  as  are set forth in subsection (1) of this section with respect to
 27    an owner's policy of liability insurance.
 28        (3)  A motor vehicle liability policy shall state the name and address  of
 29    the  named  insured,  the coverage afforded by the policy, the premium charged
 30    therefor, the policy period and the limits of liability, and shall contain  an
 31    agreement  or  be  indorsed  that insurance is provided in accordance with the
 32    coverage defined in this chapter as respects bodily injury and death or  prop-
 33    erty damage, or both, and is subject to all the provisions of this chapter.
 34        (4)  A motor vehicle liability policy shall not insure any liability under
 35    any  worker's  compensation  law  as provided in title 72, Idaho Code, nor any
 36    liability on account of bodily injury to  or  death  of  an  employee  of  the
 37    insured  while engaged in the employment, other than domestic, of the insured,
 38    or while engaged in the operation, maintenance  or  repair  of  any  described
 39    motor vehicle nor any liability for damage to property owned by, rented to, in
 40    charge of or transported by the insured.
 41        (5)  Every  motor vehicle liability policy shall be subject to the follow-
 42    ing provisions which need not be contained therein:
 43        (a)  The policy may not be canceled or annulled as to any liability by any
                                                                        
                                       2
                                                                        
  1        agreement between the insurance carrier and the insured after  the  occur-
  2        rence  of any injury or damage covered by the motor vehicle liability pol-
  3        icy.
  4        (b)  Satisfaction by the insured of a judgment for injury or damage  shall
  5        not be a condition precedent to the right or duty of the insurance carrier
  6        to make payment on account of the injury or damage.
  7        (c)  The  insurance  carrier shall have the right to settle any claim cov-
  8        ered  by the policy, and if the settlement is  made  in  good  faith,  the
  9        amount  shall be deductible from the limits of liability specified in sub-
 10        section (1)(b) of this section.
 11        (d)  The policy and its written application, if  any,  and  any  rider  or
 12        indorsement  which  does  not conflict with the provisions of this chapter
 13        shall constitute the entire contract between the parties.
 14        (6)  Any policy which grants the coverage required  for  a  motor  vehicle
 15    liability  policy  may also grant any lawful coverage in excess of or in addi-
 16    tion to the coverage specified for a motor vehicle liability policy,  and  any
 17    excess  or  additional coverage shall not be subject to the provisions of this
 18    chapter. With respect to a policy which grants an excess of additional  cover-
 19    age the term "motor vehicle liability policy" shall apply only to that part of
 20    the coverage which is required by this section.
 21        (7)  Any motor vehicle liability policy may provide that the insured shall
 22    reimburse  the  insurance  carrier for any payment the insurance carrier would
 23    not have been obligated to make under the terms of the policy except  for  the
 24    provisions of this chapter.
 25        (8)  Any  motor  vehicle liability policy may provide for the prorating of
 26    the insurance with other valid and collectible insurance.
 27        (9)  The requirements for a motor vehicle liability  policy  may  be  ful-
 28    filled  by  the  policies of one (1) or more insurance carriers which policies
 29    together meet the requirements of this chapter.
 30        (10) Any binder issued pending the issuance of a motor  vehicle  liability
 31    policy shall be deemed to fulfill the requirements for such a policy.
 32        (11) When the negligent operation of a loaned vehicle results in the death
 33    or injury to a person or personal property, except for the loaned vehicle, and
 34    at  the  time of the negligent operation of the loaned vehicle the operator of
 35    the loaned vehicle is insured under a motor vehicle liability policy complying
 36    with the financial responsibility law of this state, primary coverage for  the
 37    death  of  or  injury  to a person or personal property, except for the loaned
 38    vehicle, shall be provided by the operator's motor vehicle  liability  policy.
 39    The  insurance policy of the owner of the loaned vehicle shall provide second-
 40    ary or excess coverage for the death of or injury  to  a  person  or  personal
 41    property,  however  the loaned vehicle owner's insurance shall provide primary
 42    coverage for damage to the loaned vehicle.
 43        (a)  For the purpose of this subsection, "loaned vehicle"  means  a  motor
 44        vehicle which is provided for temporary use without charge to the operator
 45        by an entity licensed under chapter 16, title 49, Idaho Code, for the pur-
 46        pose  of  demonstrating  the vehicle to the operator as a prospective pur-
 47        chaser, or as a convenience to the operator during the repairing  or  ser-
 48        vicing  of  a  motor  vehicle for the operator, regardless of whether such
 49        repair or service is performed by the owner of the loaned  vehicle  or  by
 50        some other person or business.
 51        (b)  Should  the owner of a motor vehicle receive any compensation from or
 52        on behalf of the operator for the temporary  use  of  the  motor  vehicle,
 53        excluding  any  compensation  provided  to  the  owner  as a result of the
 54        repairing or servicing of a motor vehicle for the  operator,  the  owner's
 55        insurance  coverage  shall  be  primary  and  the operator's motor vehicle
                                                                        
                                       3
                                                                        
  1        insurance shall be secondary or excess.
  2        (12) No motor vehicle liability policy  providing  coverage  beyond  state
  3    mandated  minimum  limits  shall  provide  a  reduced level of coverage to any
  4    insured's family or household member or other authorized user except  as  pro-
  5    vided in section 41-2510, Idaho Code.
                                                                        
  6        SECTION  2.  That  Section 49-2417, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
                                                                        
  8        49-2417.  OWNER'S TORT LIABILITY FOR NEGLIGENCE OF ANOTHER -- SUBROGATION.
  9    (1) Every owner of a motor vehicle is liable and responsible for the death  of
 10    or  injury  to a person or property resulting from negligence in the operation
 11    of his motor vehicle, in the business of the owner or otherwise, by any person
 12    using or operating the vehicle with the permission, expressed or  implied,  of
 13    the  owner, and the negligence of the person shall be imputed to the owner for
 14    all purposes of civil damages.
 15        (2)  The liability of an owner for imputed negligence imposed by the  pro-
 16    visions  of this section and not arising through the relationship of principal
 17    and agent or master and servant is limited to  the  amounts  set  forth  under
 18    "proof of financial responsibility" in section 49-117, Idaho Code, or the lim-
 19    its of the liability insurance maintained by the owner, whichever is greater.
 20        (3)  In  any  action against an owner for imputed negligence as imposed by
 21    the provisions of this section the operator of the vehicle whose negligence is
 22    imputed to the owner shall be made a defendant party if  personal  service  of
 23    process  can  be had upon that operator within Idaho. Upon recovery of a judg-
 24    ment, recourse shall first be had against the  property  of  the  operator  so
 25    served.
 26        (4)  In  the  event a recovery is had under the provisions of this section
 27    against an owner for imputed negligence the owner is  subrogated  to  all  the
 28    rights  of  the  person  injured  and  may recover from the operator the total
 29    amount of any judgment and costs recovered against the owner. If the bailee of
 30    an owner with the permission, expressed or  implied,  of  the  owner,  permits
 31    another  to  operate  the  motor vehicle of the owner, then the bailee and the
 32    driver shall both be deemed operators of the vehicle of the owner, within  the
 33    meaning of subsections (3) and (4) of this section.
 34        (5)  Where  two (2) or more persons are injured or killed in one (1) acci-
 35    dent, the owner may settle or pay any bona fide claim for damages arising  out
 36    of  personal  injuries or death, whether reduced to a judgment or not, and the
 37    payments shall diminish to the  extent  of  the  owners'  total  liability  on
 38    account  of  the accident. Payments so made, aggregating the full sum of fifty
 39    thousand dollars ($50,000), shall extinguish all liability of the owner  here-
 40    under  to the claimants and all other persons on account of the accident. Lia-
 41    bility may exist by reason of imputed negligence, pursuant  to  this  section,
 42    and  not arising through the negligence of the owner nor through the relation-
 43    ship of principal and agent nor master and servant.
 44        (6)  If a motor vehicle is sold  under  a  contract  of  conditional  sale
 45    whereby  the  title  to the motor vehicle remains in the vendor, the vendor or
 46    his assignee shall be deemed an owner within the provisions of this section.
 47        (7)  An owner that rents or leases a motor vehicle to a person  shall  not
 48    be  liable  under  the  laws  of the state of Idaho or a political subdivision
 49    thereof, by reason of being the owner of the vehicle, for harm to  persons  or
 50    property  that  results  or arises out of the use, operation, or possession of
 51    the vehicle during the period of the rental or lease if:
 52        (a)  The owner is engaged in the trade or business of renting  or  leasing
 53        motor vehicles; and
                                                                        
                                       4
                                                                        
  1        (b)  There  is  no  negligence  or  criminal wrongdoing on the part of the
  2        owner.
                                                                        
                                       5
                                                                        
                                       IN THE SENATE
                                                                        
                              SENATE BILL NO. 1126, As Amended
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO MOTOR VEHICLE LIABILITY; AMENDING SECTION 49-1212, IDAHO CODE,  TO
  3        REQUIRE  THAT  A MINIMUM LEVEL OF MOTOR VEHICLE LIABILITY COVERAGE BE PRO-
  4        VIDED TO CERTAIN PERSONS; AND AMENDING SECTION  49-2417,  IDAHO  CODE,  TO
  5        REVISE LIABILITY PROVISIONS RELATING TO LIABILITY FOR IMPUTED NEGLIGENCE.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION  3.  That  Section 49-1212, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        49-1212.  EXPRESSED, PERMITTED AND IMPLIED  PROVISIONS  OF  MOTOR  VEHICLE
 10    LIABILITY POLICY. (1) An owner's policy of liability insurance shall:
 11        (a)  Designate  by  explicit  description  or by appropriate reference all
 12        motor vehicles with respect to which coverage is to be granted; and
 13        (b)  Insure the person named therein and any  other  person,  as  insured,
 14        using  any  such described motor vehicles with the express or implied per-
 15        mission of the named insured, against loss from the liability  imposed  by
 16        law  for  damages  arising out of the ownership, maintenance or use of the
 17        motor vehicles within the United States of America or the Dominion of Can-
 18        ada, subject to limits exclusive of interest and costs,  with  respect  to
 19        each motor vehicle, as provided in section 49-117, Idaho Code.
 20        (2)  An  operator's  policy of liability insurance shall insure the person
 21    named as insured therein against loss from the liability imposed upon  him  by
 22    law  for  damages arising out of the use by him of any motor vehicle not owned
 23    by him, within the same territorial limits and subject to the same  limits  of
 24    liability  as  are set forth in subsection (1) of this section with respect to
 25    an owner's policy of liability insurance.
 26        (3)  A motor vehicle liability policy shall state the name and address  of
 27    the  named  insured,  the coverage afforded by the policy, the premium charged
 28    therefor, the policy period and the limits of liability, and shall contain  an
 29    agreement  or  be  indorsed  that insurance is provided in accordance with the
 30    coverage defined in this chapter as respects bodily injury and death or  prop-
 31    erty damage, or both, and is subject to all the provisions of this chapter.
 32        (4)  A motor vehicle liability policy shall not insure any liability under
 33    any  worker's  compensation  law  as provided in title 72, Idaho Code, nor any
 34    liability on account of bodily injury to  or  death  of  an  employee  of  the
 35    insured  while engaged in the employment, other than domestic, of the insured,
 36    or while engaged in the operation, maintenance  or  repair  of  any  described
 37    motor vehicle nor any liability for damage to property owned by, rented to, in
 38    charge of or transported by the insured.
 39        (5)  Every  motor vehicle liability policy shall be subject to the follow-
 40    ing provisions which need not be contained therein:
 41        (a)  The policy may not be canceled or annulled as to any liability by any
 42        agreement between the insurance carrier and the insured after  the  occur-
 43        rence  of any injury or damage covered by the motor vehicle liability pol-
 44        icy.
 45        (b)  Satisfaction by the insured of a judgment for injury or damage  shall
 46        not be a condition precedent to the right or duty of the insurance carrier
                                                                        
                                       6
                                                                        
  1        to make payment on account of the injury or damage.
  2        (c)  The  insurance  carrier shall have the right to settle any claim cov-
  3        ered  by the policy, and if the settlement is  made  in  good  faith,  the
  4        amount  shall be deductible from the limits of liability specified in sub-
  5        section (1)(b) of this section.
  6        (d)  The policy and its written application, if  any,  and  any  rider  or
  7        indorsement  which  does  not conflict with the provisions of this chapter
  8        shall constitute the entire contract between the parties.
  9        (6)  Any policy which grants the coverage required  for  a  motor  vehicle
 10    liability  policy  may also grant any lawful coverage in excess of or in addi-
 11    tion to the coverage specified for a motor vehicle liability policy,  and  any
 12    excess  or  additional coverage shall not be subject to the provisions of this
 13    chapter. With respect to a policy which grants an excess of additional  cover-
 14    age the term "motor vehicle liability policy" shall apply only to that part of
 15    the coverage which is required by this section.
 16        (7)  Any motor vehicle liability policy may provide that the insured shall
 17    reimburse  the  insurance  carrier for any payment the insurance carrier would
 18    not have been obligated to make under the terms of the policy except  for  the
 19    provisions of this chapter.
 20        (8)  Any  motor  vehicle liability policy may provide for the prorating of
 21    the insurance with other valid and collectible insurance.
 22        (9)  The requirements for a motor vehicle liability  policy  may  be  ful-
 23    filled  by  the  policies of one (1) or more insurance carriers which policies
 24    together meet the requirements of this chapter.
 25        (10) Any binder issued pending the issuance of a motor  vehicle  liability
 26    policy shall be deemed to fulfill the requirements for such a policy.
 27        (11) When the negligent operation of a loaned vehicle results in the death
 28    or injury to a person or personal property, except for the loaned vehicle, and
 29    at  the  time of the negligent operation of the loaned vehicle the operator of
 30    the loaned vehicle is insured under a motor vehicle liability policy complying
 31    with the financial responsibility law of this state, primary coverage for  the
 32    death  of  or  injury  to a person or personal property, except for the loaned
 33    vehicle, shall be provided by the operator's motor vehicle  liability  policy.
 34    The  insurance policy of the owner of the loaned vehicle shall provide second-
 35    ary or excess coverage for the death of or injury  to  a  person  or  personal
 36    property,  however  the loaned vehicle owner's insurance shall provide primary
 37    coverage for damage to the loaned vehicle.
 38        (a)  For the purpose of this subsection, "loaned vehicle"  means  a  motor
 39        vehicle which is provided for temporary use without charge to the operator
 40        by an entity licensed under chapter 16, title 49, Idaho Code, for the pur-
 41        pose  of  demonstrating  the vehicle to the operator as a prospective pur-
 42        chaser, or as a convenience to the operator during the repairing  or  ser-
 43        vicing  of  a  motor  vehicle for the operator, regardless of whether such
 44        repair or service is performed by the owner of the loaned  vehicle  or  by
 45        some other person or business.
 46        (b)  Should  the owner of a motor vehicle receive any compensation from or
 47        on behalf of the operator for the temporary  use  of  the  motor  vehicle,
 48        excluding  any  compensation  provided  to  the  owner  as a result of the
 49        repairing or servicing of a motor vehicle for the  operator,  the  owner's
 50        insurance  coverage  shall  be  primary  and  the operator's motor vehicle
 51        insurance shall be secondary or excess.
 52        (12) No motor vehicle liability policy  providing  coverage  beyond  state
 53    mandated  minimum  limits  shall  provide  a  reduced level of coverage to any
 54    insured's family or household member or other authorized user except  as  pro-
 55    vided in section 41-2510, Idaho Code.
                                                                        
                                       7
                                                                        
  1        SECTION  4.  That  Section 49-2417, Idaho Code, be, and the same is hereby
  2    amended to read as follows:
                                                                        
  3        49-2417.  OWNER'S TORT LIABILITY FOR NEGLIGENCE OF ANOTHER -- SUBROGATION.
  4    (1) Every owner of a motor vehicle is liable and responsible for the death  of
  5    or  injury  to a person or property resulting from negligence in the operation
  6    of his motor vehicle, in the business of the owner or otherwise, by any person
  7    using or operating the vehicle with the permission, expressed or  implied,  of
  8    the  owner, and the negligence of the person shall be imputed to the owner for
  9    all purposes of civil damages.
 10        (2)  The liability of an owner for imputed negligence imposed by the  pro-
 11    visions  of this section and not arising through the relationship of principal
 12    and agent or master and servant is limited to  the  amounts  set  forth  under
 13    "proof of financial responsibility" in section 49-117, Idaho Code, or the lim-
 14    its of the liability insurance maintained by the owner, whichever is greater.
 15        (3)  In  any  action against an owner for imputed negligence as imposed by
 16    the provisions of this section the operator of the vehicle whose negligence is
 17    imputed to the owner shall be made a defendant party if  personal  service  of
 18    process  can  be had upon that operator within Idaho. Upon recovery of a judg-
 19    ment, recourse shall first be had against the  property  of  the  operator  so
 20    served.
 21        (4)  In  the  event a recovery is had under the provisions of this section
 22    against an owner for imputed negligence the owner is  subrogated  to  all  the
 23    rights  of  the  person  injured  and  may recover from the operator the total
 24    amount of any judgment and costs recovered against the owner. If the bailee of
 25    an owner with the permission, expressed or  implied,  of  the  owner,  permits
 26    another  to  operate  the  motor vehicle of the owner, then the bailee and the
 27    driver shall both be deemed operators of the vehicle of the owner, within  the
 28    meaning of subsections (3) and (4) of this section.
 29        (5)  Where  two (2) or more persons are injured or killed in one (1) acci-
 30    dent, the owner may settle or pay any bona fide claim for damages arising  out
 31    of  personal  injuries or death, whether reduced to a judgment or not, and the
 32    payments shall diminish to the  extent  of  the  owners'  total  liability  on
 33    account  of  the accident. Payments so made, aggregating the full sum of fifty
 34    thousand dollars ($50,000), shall extinguish all liability of the owner  here-
 35    under  to the claimants and all other persons on account of the accident. Lia-
 36    bility may exist by reason of imputed negligence, pursuant  to  this  section,
 37    and  not arising through the negligence of the owner nor through the relation-
 38    ship of principal and agent nor master and servant.
 39        (6)  If a motor vehicle is sold  under  a  contract  of  conditional  sale
 40    whereby  the  title  to the motor vehicle remains in the vendor, the vendor or
 41    his assignee shall be deemed an owner within the provisions of this section.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 16843

     This bill is one of a series proposed to modernize and
streamline judicial and legal proceedings in automobile insurance
litigation.  These revisions to current law allow insureds to
make claims against insurance policy amounts for which premiums
have been collected.  This protects family members, passengers
and authorized users of the insured person's vehicle.


                           FISCAL NOTE

     This bill will have no fiscal impact.




Contact
Name: Senator Brent Hill 
Phone: 332-1315
Barbara Jorden
Phone: 345-1890


STATEMENT OF PURPOSE/FISCAL NOTE                        S 1126