STATEMENT OF PURPOSE
RS28277 / S1118
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 underinsurance
coverage, the purchaser receives the stated benefit provided on the declarations page. This prevents an insurance
company who receives a premium for underinsured coverage from taking credit for benefits paid by other
insurance companies. It further limits the benefits recoverable to the purchaser's actual losses or the amount of
coverage purchased, whichever is less.
FISCAL NOTE
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.
Contact:
Representative Jason A. Monks
(208) 332-1000
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 02/15/2021, 3:29 PM


Statutes affected:
Bill Text: 41-2503