MOTOR VEHICLE FINANCIAL RESPONSIBILITY
49-1212. Expressed, permitted and implied provisions of motor vehicle liability policy. (1) An owner’s policy of liability insurance shall:
(a) Designate by explicit description or by appropriate reference all motor vehicles with respect to which coverage is to be granted; and
(b) Insure the person named therein and any other person, as insured, using any such described motor vehicles with the express or implied permission of the named insured, against loss from the liability imposed by law for damages arising out of the ownership, maintenance or use of the motor vehicles within the United States of America or the Dominion of Canada, subject to limits exclusive of interest and costs, with respect to each motor vehicle, as provided in section 49-117, Idaho Code.
(2) An operator’s policy of liability insurance shall insure the person named as insured therein against loss from the liability imposed upon him by law for damages arising out of the use by him of any motor vehicle not owned by him, within the same territorial limits and subject to the same limits of liability as are set forth in subsection (1) of this section with respect to an owner’s policy of liability insurance.
(3) A motor vehicle liability policy shall state the name and address of the named insured, the coverage afforded by the policy, the premium charged therefor, the policy period and the limits of liability, and shall contain an agreement or be endorsed that insurance is provided in accordance with the coverage defined in this chapter as respects bodily injury and death or property damage, or both, and is subject to all the provisions of this chapter.
(4) A motor vehicle liability policy shall not insure any liability under any worker’s compensation law as provided in title 72, Idaho Code, nor any liability on account of bodily injury to or death of an employee of the insured while engaged in the employment, other than domestic, of the insured, or while engaged in the operation, maintenance or repair of any described motor vehicle nor any liability for damage to property owned by, rented to, in charge of or transported by the insured.
(5) Every motor vehicle liability policy shall be subject to the following provisions which need not be contained therein:
(a) The policy may not be canceled or annulled as to any liability by any agreement between the insurance carrier and the insured after the occurrence of any injury or damage covered by the motor vehicle liability policy.
(b) Satisfaction by the insured of a judgment for injury or damage shall not be a condition precedent to the right or duty of the insurance carrier to make payment on account of the injury or damage.
(c) The insurance carrier shall have the right to settle any claim covered by the policy, and if the settlement is made in good faith, the amount shall be deductible from the limits of liability referenced in subsection (1)(b) of this section.
(d) The policy and its written application, if any, and any rider or endorsement which does not conflict with the provisions of this chapter shall constitute the entire contract between the parties.
(6) Any policy which grants the coverage required for a motor vehicle liability policy may also grant any lawful coverage in excess of or in addition to the coverage specified for a motor vehicle liability policy, and any excess or additional coverage shall not be subject to the provisions of this chapter. With respect to a policy which grants an excess of additional coverage the term "motor vehicle liability policy" shall apply only to that part of the coverage which is required by this section.
(7) Any motor vehicle liability policy may provide that the insured shall reimburse the insurance carrier for any payment the insurance carrier would not have been obligated to make under the terms of the policy except for the provisions of this chapter.
(8) Any motor vehicle liability policy may provide for the prorating of the insurance with other valid and collectible insurance.
(9) The requirements for a motor vehicle liability policy may be fulfilled by the policies of one (1) or more insurance carriers, which policies together meet the requirements of this chapter.
(10) Any binder issued pending the issuance of a motor vehicle liability policy shall be deemed to fulfill the requirements for such a policy.
(11) Notwithstanding any other provisions of this section or section 49-2417, Idaho Code, when the negligent operation of a loaned vehicle results in the death or injury to a person or damage to personal property and at the time of the negligent operation of the loaned vehicle the operator is insured under a motor vehicle liability policy complying with the financial responsibility law of this state, then primary coverage for the death of or injury to a person or damage to personal property shall be provided by the operator’s motor vehicle liability policy. When an operator’s policy provides liability or physical damage coverage for damage to the loaned vehicle, that coverage shall be primary and shall be limited to the lower of the reasonable cost to repair or the owner’s actual cost to replace the loaned vehicle. The insurance policy of the owner of the loaned vehicle shall provide secondary or excess coverage for the death of or injury to a person or personal property.
(a) For the purpose of this subsection, "loaned vehicle" means a motor vehicle which is provided for temporary use without charge to the operator by an entity licensed under chapter 16, title 49, Idaho Code, for the purpose of demonstrating the vehicle to the operator as a prospective purchaser, or as a convenience to the operator during the repairing or servicing of a motor vehicle for the operator, regardless of whether such repair or service is performed by the owner of the loaned vehicle or by some other person or business.
(b) Should the owner of a motor vehicle receive any compensation from or on behalf of the operator for the temporary use of the motor vehicle, excluding any compensation provided to the owner as a result of the repairing or servicing of a motor vehicle for the operator, the owner’s insurance coverage shall be primary and the operator’s motor vehicle insurance shall be secondary or excess.
(12) No motor vehicle liability policy providing coverage beyond state mandated minimum limits shall provide a reduced level of coverage to any insured’s family or household member or other authorized user except as provided in section 41-2510, Idaho Code.
[49-1212, added 1988, ch. 265, sec. 302, p. 730; am. 2000, ch. 232, sec. 1, p. 651; am. 2007, ch. 307, sec. 1, p. 859; am. 2013, ch. 217, sec. 1, p. 511.]