2008 Legislation
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HOUSE BILL NO. 547<br /> – Insurance, fire policy, definitions


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Bill Status

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
         Effective: 07/01/08

Bill Text

  ]]]]              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

  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
 10    follows:
 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-
 38        ing.
 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
 45        policy,
 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 / Fiscal Impact

                       STATEMENT OF PURPOSE

                             RS 17946

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.

                           FISCAL NOTE


Name: Steve J. Tobiason,
Property Casualty Insurance Association of America 
Phone: (208)342-4545

STATEMENT OF PURPOSE/FISCAL NOTE                         H 547