Print Friendly HOUSE BILL NO. 547
– Insurance, fire policy, definitions
HOUSE BILL NO. 547
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H0547......................................................by STATE AFFAIRS
INSURANCE - Amends existing law relating to standard fire policy to revise
the definition of "terrorism."
02/21 House intro - 1st rdg - to printing
02/22 Rpt prt - to Bus
02/29 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/06 3rd rdg - PASSED - 69-0-1
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon,
Chavez, Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart,
Harwood, Henbest, Jaquet, Killen, King, Kren, Labrador, Lake,
LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer,
Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould,
Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(02),
Shepherd(08), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
Stevenson, Thayn, Thomas, Trail, Vander Woude, Wills, Wood(27),
Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- Henderson
Floor Sponsor - Collins
Title apvd - to Senate
03/07 Senate intro - 1st rdg - to Com/HuRes
03/12 Rpt out - rec d/p - to 2nd rdg
03/13 2nd rdg - to 3rd rdg
03/14 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Bair, Bastian, Broadsword, Burkett, Cameron,
Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde,
Hammond, Heinrich, Hill, Kelly, Keough, Langhorst, Little, Lodge,
Malepeai(Sagness), McGee, McKague, McKenzie, Pearce, Richardson,
Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- Bilyeu, Jorgenson
Floor Sponsor - Werk
Title apvd - to House
03/17 To enrol - Rpt enrol - Sp signed
03/18 Pres signed - To Governor
03/19 Governor signed
Session Law Chapter 216
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature Second Regular Session - 2008
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 547
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO STANDARD FIRE POLICY; AMENDING SECTION 41-2401, IDAHO CODE, TO
3 REVISE A DEFINITION.
4 Be It Enacted by the Legislature of the State of Idaho:
5 SECTION 1. That Section 41-2401, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 41-2401. STANDARD FIRE POLICY. (1) No fire insurer shall issue any fire
8 insurance policy covering on property or interest therein in this state, other
9 than on the form known as the New York standard as revised in 1943, except as
11 (a) An insurer may print on or in its policy its name, location, date of
12 incorporation, plan of operation, whether stock, mutual, reciprocal or
13 organized under special charter provisions, and if mutual or reciprocal
14 whether on cash premium or assessment plan; and if it be a stock company,
15 the amount of its paid up capital stock, the names of its officers and
16 agents, the number and date of the policy, and, if it is issued by an
17 agent, the words, "this policy shall not be valid until countersigned by
18 the duly authorized agent of the company at ...."; and, if a mutual or
19 reciprocal insurer, the policy must state the contingent liability, if
20 any, of its policyholders, members, or subscribers for payment of losses
21 and expenses not provided for by its cash funds.
22 (b) An insurer may print or use in its policies printed forms of descrip-
23 tion and specifications of the property insured.
24 (c) An insurer insuring against damage by lightning may print in the
25 clause enumerating the perils insured against the additional words, "also
26 any damage by lightning whether fire ensues or not," and in the clause
27 providing for an apportionment of loss in case of other insurance the
28 words, "whether by fire, lightning or both."
29 (d) A domestic insurer may print in its policies any provisions which it
30 is authorized or required by the law to insert therein, and any foreign
31 insurer may, with the approval of the director, so print any provision
32 required by its charter or deed of settlement, or by the laws of its own
33 state or country, not contrary to the laws of this state; but the director
34 shall require any provision which, in his opinion modifies the contract of
35 insurance in such a way as to affect the question of loss, to be appended
36 to the policy by an endorsement or rider as hereinafter provided.
37 (e) The blanks in the standard form may be completed in print or in writ-
39 (f) An insurer may print upon policies issued in compliance with the pre-
40 ceding provisions of this section the words, "Idaho standard policy."
41 (g) An insurer may write upon the margin or across the face of the pol-
42 icy, or write or print in type not smaller than nonpareil upon a slip,
43 slips, rider or riders to be attached thereto, provisions adding to or
1 relating to those contained in the standard form; and all such slips,
2 riders, endorsements and provisions must be signed by the officers or
3 agents of the insurer so using them.
4 (h) If the policy be made by a mutual, reciprocal or other insurer having
5 special regulations lawfully applicable to its organization, membership,
6 policies or contracts of insurance such regulations shall apply to and
7 form a part of the policy as the same may be written or printed upon,
8 attached or appended thereto.
9 (i) Every policy shall have legibly inscribed upon its face and filing
10 back suitable words to designate whether the insurer making such insurance
11 be a stock, mutual or reciprocal insurer, provided, that any insurer orga-
12 nized under special charter provisions may so indicate upon its policy and
13 may add a statement of the plan under which it operates in this state.
14 (j) Every fire policy shall contain language that provides for a thirty
15 (30) day written notice to the insured prior to cancellation of the pol-
16 icy, provided however, that where cancellation is for the nonpayment of
17 premium, at least ten (10) days' notice of such cancellation, accompanied
18 by the reason for the cancellation, shall be given. If delivered via
19 United States mail, such ten (10) day notification period shall begin to
20 run five (5) days following the date of postmark. Proof of mailing of
21 notice of cancellation, or of intention not to renew, or of reasons for
22 cancellation or nonrenewal to the named insured at his address shall be
23 sufficient proof of notice.
24 (k) Every fire policy shall provide that it becomes effective at 12:01
25 a.m. of the standard time of the place where the property covered by the
26 insurance is located, on the effective date of the policy.
27 (2) An insurer issuing the standard fire policy is authorized to affix
28 thereto or include therein a written statement that the policy does not cover
29 loss or damage caused by nuclear reaction, nuclear radiation or radioactive
30 contamination, all whether directly or indirectly resulting from an insured
31 peril under the policy; but nothing herein contained shall be construed to
32 prohibit the attachment to any such policy of an endorsement or endorsements
33 specifically assuming coverage for loss or damage caused by nuclear reaction,
34 nuclear radiation or radioactive contamination.
35 (3) The standard fire policy is not mandatory for vehicle insurance, or
36 for marine insurance, or inland marine insurance as the same is defined pursu-
37 ant to section 41-1401(2), Idaho Code, or for insurance on growing crops.
38 (4) Any policy or contract otherwise subject to the provisions of subsec-
39 tion (1) hereof, which includes either on an unspecified basis as to the cov-
40 erage or for a single premium coverage against the peril of fire and substan-
41 tial coverage against other perils need not comply with the provisions of sub-
42 section (1) hereof, provided:
43 (a) Such policy or contract shall afford coverage, with respect to the
44 peril of fire, not less than the coverage afforded by such standard fire
46 (b) The provisions in relation to mortgagee interests and obligations in
47 such standard fire policy shall be incorporated therein without change,
48 (c) Such policy or contract is complete as to all of its terms without
49 reference to the standard form of fire insurance policy or any other pol-
50 icy, and
51 (d) The director is satisfied that such policy or contract complies with
52 the provisions hereof.
53 (5) With respect to a commercial insurance policy, such standard fire
54 insurance policy may exclude coverage for loss by fire or other perils insured
55 against if the fire or other perils are caused directly or indirectly by ter-
1 rorism. As used in this section, the term "terrorism" means a violent act or
2 an act that:
3 (a) Is dangerous to human life, property or infrastructure;
4 (b) Results in damage within the United States, or outside of the United
5 States in the case of an air carrier or vessel or the premises of a United
6 States mission; and
7 (c) Is committed by an individual or individuals, acting on behalf of any
8 foreign person or foreign interest, as part of an effort to coerce the
9 civilian population of the United States or to influence the policy or
10 affect the conduct of the United States government by coercion.
STATEMENT OF PURPOSE
This legislation amends Idaho Code section 41-2401 to maintain
consistency between Federal and State law defining the term
terrorism in fire insurance policies issued in the state of Idaho.
The legislation is needed because of a change in Federal law
(Terrorism Risk Insurance Act - TRIA) effective December 31, 2007.
Name: Steve J. Tobiason,
Property Casualty Insurance Association of America
STATEMENT OF PURPOSE/FISCAL NOTE H 547