This bill amends Sections 41-1842 and 41-2401 of the Idaho Code to revise the provisions regarding notice of cancellation and nonrenewal for commercial insurance policies. Key changes include extending the notice period for cancellations and nonrenewals from thirty (30) days to sixty (60) days, with specific provisions for cancellations due to nonpayment of premium, which will still require only ten (10) days' notice. Additionally, the bill mandates that insurers provide reasons for cancellation or nonrenewal in the written notice sent to the insured.

The bill also updates the language in the standard fire policy to align with the new notice requirements, ensuring that all fire insurance policies include a provision for a sixty (60) day written notice prior to nonrenewal, along with the reason for such nonrenewal. The changes aim to enhance transparency and protect policyholders by ensuring they receive adequate notice and justification for any changes to their insurance coverage. The bill declares an emergency, making it effective on July 1, 2026.

Statutes affected:
Bill Text: 41-1842, 41-2401