Bill Description: House Bill 562 would impose stricter regulations on insurance providers by requiring longer, 60-day notices of non-renewals and cancellations.
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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?
House Bill 562 would amend Section 41-1842, Idaho Code, related to commercial insurance policies, to require that notices of cancellation be mailed or delivered at least 60 days prior to the effective date of the cancellation. The current requirement is 30 days.
The bill would also amend a subsection dealing with notices of non-renewal, to add the same 60-day requirement. The current requirement is 45 days.
The bill would also amend Section 41-2401, Idaho Code, dealing with fire insurance, to extend the current 30-day notice of cancellation requirement to 60 days and to add a requirement that the notice include “the reason for the cancellation”.
The bill would add a new subsection requiring a provider of fire insurance to provide a 60-day notice of non-renewal. The current law implies the 30-day notice of cancellation requirement applies to a notice of non-renewal too.
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