Bill description: This bill establishes a licensing system and procedures for limited line travel insurance providers.

Rating: -4

Does it give government any new, additional, or expanded power to prohibit, restrict, or regulate activities in the free market? Conversely, does it eliminate or reduce government intervention in the market? 


This bill creates a separate license which will apply to limited line travel insurance providers, those that offer “coverage for personal risks incident to planned travel including, but not limited to; interruption or cancellation of a trip or event, loss of baggage or personal effects, damages to accommodations or rental vehicles, and sickness, accident, disability or death occurring during travel" (Idaho Code 41-1091). These providers would be subject to new requirements laid out in Idaho Code 41-1092 through 41-1096. These regulations pertain to the content of advertisements and brochures and other documentation procedures. This license would be made distinct from the license for other limited line insurance providers which have already been established in the Idaho Code. (-1)

Does it increase barriers to entry into the market? Examples include occupational licensure, the minimum wage, and restrictions on home businesses. Conversely, does it remove barriers to entry into the market? 


This license would create a substantial barrier to entry into this industry. A company  must meet new regulatory requirements to offer these services. (-1)

Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments? 


This legislation’s Statement of Purpose recognizes there will be fees attached but does not specify what the fees will be. Justification for charging fees is in Section 41-1092. “The director may issue to an individual or business entity that has filed with the director an application, in a form and manner prescribed by the director, a limited lines travel insurance producer license.” (-1)

Does it directly or indirectly create or increase penalties for victimless crimes or non-restorative penalties for non- violent crimes? Conversely, does it eliminate or decrease penalties for victimless crimes or non-restorative penalties for non-violent crimes? 


Individuals or organizations flouting the regulations in this act could be banned from this business and fined up to $1,000. (-1)

Updated: Corrections have been made to ensure the accuracy of this analysis on 3/7