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H0429...........................................................by BUSINESS
MOTOR VEHICLES - INSURANCE - Amends existing law relating to motorist
insurance to remove reference to certain liabilities arising out of the
ownership, maintenance or use of a motor vehicle; to provide coverage for
underinsured motor vehicles in an owner's or operator's policy; to provide
for rejection of underinsured motorist coverage; to provide for rejection
of uninsured and underinsured motorist coverage in an electronic record in
a replacement policy and in a policy issued by an affiliate insurer; to
require that, after a time certain, a named insured be provided with an
approved statement containing certain explanations; to define a term; and
to provide for application.
01/28 House intro - 1st rdg - to printing
01/29 Rpt prt - to Bus
02/06 Rpt out - rec d/p - to 2nd rdg
02/07 2nd rdg - to 3rd rdg
02/13 3rd rdg - PASSED - 68-0-2
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, Henderson, Jaquet, Killen, King, 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)
NAYS -- None
Absent and excused -- Kren, Mr. Speaker
Floor Sponsor - Mathews
Title apvd - to Senate
02/14 Senate intro - 1st rdg - to Com/HuRes
02/20 Rpt out - rec d/p - to 2nd rdg
02/21 2nd rdg - to 3rd rdg
02/27 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Geddes, Goedde,
Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- Gannon
Floor Sponsor - Goedde
Title apvd - to House
02/28 To enrol
02/29 Rpt enrol - Sp signed
03/03 Pres signed
03/04 To Governor
03/05 Governor signed
Session Law Chapter 69
Effective: 01/01/09
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 429 BY BUSINESS COMMITTEE 1 AN ACT 2 RELATING TO MOTORIST INSURANCE; AMENDING SECTION 41-2502, IDAHO CODE, TO 3 REMOVE REFERENCE TO CERTAIN LIABILITIES ARISING OUT OF THE OWNERSHIP, 4 MAINTENANCE OR USE OF A MOTOR VEHICLE, TO PROVIDE AN IDAHO CODE REFERENCE 5 TO CERTAIN MANDATORY REQUIREMENTS FOR AN OWNER'S POLICY OF LIABILITY 6 INSURANCE, TO PROVIDE COVERAGE FOR UNDERINSURED MOTOR VEHICLES IN AN 7 OWNER'S OR OPERATOR'S POLICY, TO PROVIDE FOR REJECTION OF UNDERINSURED 8 MOTORIST COVERAGE, TO PROVIDE FOR REJECTION OF UNINSURED AND UNDERINSURED 9 MOTORIST COVERAGE IN AN ELECTRONIC RECORD, IN A REPLACEMENT POLICY AND IN 10 A POLICY ISSUED BY AN AFFILIATE INSURER AND TO REQUIRE THAT AFTER A TIME 11 CERTAIN, A NAMED INSURED BE PROVIDED WITH AN APPROVED STATEMENT CONTAINING 12 CERTAIN EXPLANATIONS; AMENDING SECTION 41-2503, IDAHO CODE, TO DEFINE A 13 TERM AND TO PROVIDE FOR APPLICATION; AND PROVIDING AN EFFECTIVE DATE. 14 Be It Enacted by the Legislature of the State of Idaho: 15 SECTION 1. That Section 41-2502, Idaho Code, be, and the same is hereby 16 amended to read as follows: 17 41-2502. UNINSURED MOTORIST AND UNDERINSURED MOTORIST COVERAGE FOR AUTO- 18 MOBILE INSURANCE. (1) Except as otherwise provided in subsection (2) of this 19 section, nNo owner's or operator's policyinsuring against loss resulting from20liability imposed by law for bodily injury or death suffered by any natural21person arising out of the ownership, maintenance or use of a motor vehicleof 22 motor vehicle liability insurance that is subject to the requirements of sec- 23 tion 49-1212(1) or (2), Idaho Code, shall be delivered or issued for delivery 24 in this state with respect to any motor vehicle registered or principally 25 garaged in this state unless coverage is provided therein or supplemental 26 thereto, in limits for bodily injury or death as set forth in section 49-117, 27 Idaho Code, as amended from time to time, under provisions approved by the 28 director of the department of insurance, for the protection of persons insured 29 thereunder who are legally entitled to recover damages from owners or opera- 30 tors of uninsured and underinsured motor vehicles because of bodily injury, 31 sickness or disease, including death, resulting therefrom. 32 (2)TheA named insured shall have the right to rejectsucheither or 33 both uninsured motorist coverage or underinsured motorist coverage, which 34 rejection must be in writing or in an electronic record as authorized by the 35 uniform electronic transactions act, chapter 50, title 28, Idaho Code, and 36 such rejection shall be effective as to all other insureds and named insureds; 37 andprovided further,after which such rejected coverage need not be provided 38 in or supplemental to a renewal or replacement policywhere the named insured39had rejected the coverage in connection with a policy previouslyissuedto him40 by the same insurer or an affiliate of that insurer. 41 (3) Prior to the issuance of any new policy or the first renewal or 42 replacement of any existing policy of motor vehicle liability insurance with 43 an effective date on or after January 1, 2009, a named insured shall be pro- 2 1 vided a standard statement approved by the director of the department of 2 insurance, explaining in summary form, both uninsured and underinsured motor- 3 ist coverage, and the different forms of underinsured motorist coverage that 4 might be available from insurers in Idaho. 5 SECTION 2. That Section 41-2503, Idaho Code, be, and the same is hereby 6 amended to read as follows: 7 41-2503."UNINSURED MOTOR VEHICLE" DEFINEDDEFINITIONS AND APPLICATION. 8 (1) For the purposes ofthisuninsured motorist coverage, the term "uninsured 9 motor vehicle" shall, subject to the terms and conditions of such coverage, be 10 deemed to include an insured motor vehicle where the liability insurer thereof 11 is unable to make payment with respect to the legal liability of its insured 12 within the limits specified therein because of insolvency. 13 (2) For purposes of underinsured motorist coverage, subject to the fur- 14 ther definitions, terms and conditions of such coverage, the term 15 "underinsured motor vehicle" means a motor vehicle that is a self-insured 16 motor vehicle, or a motor vehicle that is covered by a policy of motor vehicle 17 liability insurance or an indemnity bond, with limits for bodily injury or 18 death at least equal to those limits set forth in section 49-117, Idaho Code. 19 (3) Except as provided in subsections (1) and (2) of this section, the 20 terms and conditions of any policy of motor vehicle liability insurance pro- 21 viding uninsured motorist coverage or underinsured motorist coverage are not 22 altered or amended. 23 SECTION 3. This act shall be in full force and effect on and after Janu- 24 ary 1, 2009.
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STATEMENT OF PURPOSE
RS 17687C1
This legislation amends Idaho Code (41-2502 and 41-2503) to
define the term "underinsured motorist coverage" and require that
certain motor vehicle liability insurance policies issued in Idaho
include underinsured motorist coverage. This legislation also
allows a named insured to reject, in writing or electronically,
underinsured motorist coverage. Finally, this proposal will
require the insurance carrier to provide the named insured a
summary statement, approved by the Director of the Idaho Department
of Insurance, explaining uninsured and underinsured motorist
coverages and different forms of underinsured motorist coverage
offered by insurers in Idaho.
FISCAL NOTE
There will be no impact on the general fund of the state as a
result of this bill.
Contact
Name: Rep. Russ Mathews
Rep. Joan Wood
Phone: (208) 334-2475
STATEMENT OF PURPOSE/FISCAL NOTE H 429