RS30180 / S1067

This proposed legislation would eliminate the problem of phantom insurance and reduced payments for benefits paid by others. The proposed legislation provides that when a citizen purchases motor vehicle under-insurance coverage, the purchaser receives the stated benefit provided on the declaration page. This prevents an insurance company who receives a premium for underinsured coverage from taking credit for the benefits paid by other's insurance companies. It further limits the benefits recoverable to the purchaser's actual losses or the amount of coverage purchased, whichever is less.

There is no fiscal impact to the General Fund, as this applies to insurance companies who provide motor vehicle insurance policies. Some motor vehicle insurance companies already voluntarily provide this type of coverage, and their premium rates are competitive with companies who do not adhere to this policy currently.

Bill Text

Statement of Purpose / Fiscal Note

Bill on Idaho Legislature site