2007 Legislation
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SENATE BILL NO. 1125 – MV, underinsured

SENATE BILL NO. 1125

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Bill Status



S1125................................................by JUDICIARY AND RULES
MOTOR VEHICLE INSURANCE - Amends existing law relating to motor vehicle
insurance to reference underinsured motorist coverage; to revise the
definition of "uninsured motor vehicle"; and to define "underinsured motor
vehicle."
                                                                        
02/12    Senate intro - 1st rdg - to printing
02/13    Rpt prt - to Com/HuRes
03/02    Rpt out - rec d/p - to 2nd rdg
03/05    2nd rdg - to 3rd rdg
03/06    3rd rdg - 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
03/13    Rpt out - rec d/p - to 2nd rdg
03/14    2nd rdg - to 3rd rdg
03/19    3rd rdg - PASSED - 63-2-5
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Block,
      Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chew, Clark,
      Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Henbest,
      Henderson, Jaquet, Killen, King, Labrador, 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(30), Smith(24), Snodgrass, Stevenson, Thayn,
      Wills, Wood(27), Wood(35), Mr. Speaker
      NAYS -- Black, Vander Woude
      Absent and excused -- Chavez, Harwood, Kren, Lake, Trail
    Floor Sponsors - Wood(35) & Ringo
    Title apvd - to Senate
03/20    To enrol
03/21    Rpt enrol - Pres signed - Sp signed
03/22    To Governor
03/23    Governor VETOED
03/28    Senate ret'd to Com/HuRes

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1125
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO AUTOMOBILE INSURANCE; AMENDING SECTION  41-2502,  IDAHO  CODE,  TO
  3        REFERENCE  UNDERINSURED  MOTORIST  COVERAGE; AND AMENDING SECTION 41-2503,
  4        IDAHO CODE, TO REVISE THE DEFINITION OF "UNINSURED MOTOR VEHICLE"  AND  TO
  5        DEFINE "UNDERINSURED MOTOR VEHICLE."
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION  1.  That  Section 41-2502, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        41-2502.  UNINSURED AND  UNDERINSURED  MOTORIST  COVERAGE  FOR  AUTOMOBILE
 10    INSURANCE. No policy insuring against loss resulting from liability imposed by
 11    law  for  bodily injury or death suffered by any natural person arising out of
 12    the ownership, maintenance or use of a motor vehicle  shall  be  delivered  or
 13    issued for delivery in this state with respect to any motor vehicle registered
 14    or  principally  garaged  in this state unless coverage is provided therein or
 15    supplemental thereto, in limits for bodily injury or death  as  set  forth  in
 16    section  49-117,  Idaho  Code,  as amended from time to time, under provisions
 17    approved by the director of the department of insurance, for the protection of
 18    persons insured thereunder who are legally entitled to  recover  damages  from
 19    owners  or  operators  of uninsured and underinsured motor vehicles because of
 20    bodily injury, sickness or disease, including death, resulting therefrom.  The
 21    named  insured  shall  have the right to reject such coverage, which rejection
 22    must be in writing; and provided further, such coverage need not  be  provided
 23    in  or  supplemental  to a renewal policy where the named insured had rejected
 24    the coverage in connection with a policy previously issued to him by the  same
 25    insurer.
                                                                        
 26        SECTION  2.  That  Section 41-2503, Idaho Code, be, and the same is hereby
 27    amended to read as follows:
                                                                        
 28        41-2503.  "UNINSURED  MOTOR  VEHICLE"  AND  "UNDERINSURED  MOTOR  VEHICLE"
 29    DEFINED. For the purposes of this  coverage,  (1)  "Uninsured  motor  vehicle"
 30    means a motor vehicle for which there is no bodily injury liability policy, or
 31    bond,  in  effect at the time of a collision. Tthe term "uninsured motor vehi-
 32    cle" shall, subject to the terms and conditions of such coverage, be deemed to
 33    include an insured motor vehicle where the liability insurer thereof is unable
 34    to make payment with respect to the legal liability of its insured within  the
 35    limits specified therein because of insolvency.
 36        (2)  "Underinsured motor vehicle" means a motor vehicle for which there is
 37    a  bodily  injury liability policy, or bond, in effect at the time of a colli-
 38    sion, but the coverage limit of the applicable bodily injury policy, or  bond,
 39    is insufficient to satisfy the legal liability of the tortfeasor. Underinsured
 40    motor vehicle coverage is excess coverage in addition to the insufficient cov-
 41    erage  of  the  tortfeasor and such underinsured motor vehicle coverage limits
                                                                        
                                       2
                                                                        
  1    may not be reduced by amounts paid by the tortfeasor's coverage or  any  other
  2    coverage.  Provided however, the injured person may not have a right under the
  3    policy to payment pursuant to the underinsured  motor  vehicle  coverage  that
  4    would  provide recovery of an amount greater than the total legal liability of
  5    the tortfeasor or the applicable limits of the underinsured  coverage,  which-
  6    ever is the lesser.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 16842

     This bill is one of a series proposed to modernize and
streamline judicial and legal proceedings in automobile insurance
litigation.  Idaho is one of the few states that does not require
insurance companies to offer under-insured motorists coverage. 
This statute makes sure that Idaho drivers have the chance to
decide if they want such coverage.


                           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 1125