H07692026 Regular Session

Adds to existing law to establish provisions regarding appraisals by competent and disinterested appraisers and to establish a dispute resolution process.

MOTOR VEHICLE FINANCIAL RESPONSIBILITY -- Adds to existing law to establish provisions regarding appraisals by competent and disinterested appraisers and to establish a dispute resolution process.

MOTOR VEHICLE FINANCIAL RESPONSIBILITY

IntroducedIn CommitteeFloor VoteEnacted

Via committee: Business

STATEMENT OF PURPOSE

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This legislation requires automobile insurance policies issued in Idaho to include an appraisal provision allowing policyholders and insurers to resolve disputes regarding vehicle loss valuations and settlement offers through a standardized appraisal and dispute resolution process. The bill establishes procedures for selecting competent and disinterested appraisers, timelines for completing appraisals, and a mechanism for resolving disagreements through selection of an independent umpire whose determination resolves the dispute. The bill further authorizes the Department of Insurance to adopt rules necessary for implementation and provides that insurer failure to comply constitutes a violation of existing insurance law. The legislation is intended to provide consumers and insurers with a clear and efficient process for resolving claim valuation disputes.

FISCAL NOTE

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This legislation is not expected to have a fiscal impact on the state General Fund. Implementation and oversight responsibilities fall within existing Department of Insurance regulatory authority and are expected to be absorbed within existing resources. Any costs associated with appraisals or dispute resolution procedures are borne by the parties involved in insurance claims and do not impact state finances.

BILL TEXT

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LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 769 BY WAYS AND MEANS COMMITTEE AN ACT1 RELATING TO MOTOR VEHICLE FINANCIAL RESPONSIBILITY; AMENDING CHAPTER 12,2 TITLE 49, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 49-1211, IDAHO3 CODE, TO PROVIDE FOR APPRAISALS AND TO ESTABLISH A DISPUTE RESOLUTION4 PROCESS; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.5

Be It Enacted by the Legislature of the State of Idaho:6

SECTION 1. That Chapter 12, Title 49, Idaho Code, be, and the same is7 hereby amended by the addition thereto of a NEW SECTION, to be known and des-8 ignated as Section 49-1211, Idaho Code, and to read as follows:9 49-1211. APPRAISALS -- COMPETENT AND DISINTERESTED APPRAISERS AND UM-10 PIRES. (1) Every automobile insurer licensed to write automobile insurance11 policies in this state shall ensure that each policy issued, executed, re-12 newed, or delivered to a consumer contains a provision allowing for an ap-13 praisal by a competent and disinterested appraiser if the policyholder and14 insurer disagree on:15 (a) The actual cash value or amount of a loss, including the repairable16 amount and total loss amount, of an automobile reported on a claim; or17 (b) The offer of settlement to a third-party liability claim.18 (2)(a) If a policyholder and an insurer disagree as to the actual cash19 value or amount of a loss reported on a claim or disagree on the offer of20 settlement to a third party, either the policyholder or insurer may sub-21 mit a written demand letter to the other invoking the policy's appraisal22 provision to select a competent and disinterested appraiser. The writ-23 ten demand shall notify the other party of the appraiser selected. The24 party receiving the written demand shall have twenty (20) calendar days25 to notify the other of the appraiser selected. The parties shall be re-26 sponsible for the cost of their own appraisal.27 (b) An appraiser who is selected pursuant to this subsection shall,28 within twenty (20) business days after such selection, appraise the29 loss, stating separately the actual cash value and amount of loss, or30 the offer of settlement, and shall deliver a copy of the appraisal to the31 other party.32 (3) If, following the procedures provided for in subsection (2) of this33 section, a policyholder's appraiser and an insurer's appraiser fail to agree34 on the actual cash value and amount of loss, or on an appropriate offer of35 settlement, then either party may, within twenty (20) calendar days after36 receipt of the other party's appraisal, initiate a dispute resolution pur-37 suant to subsection (4) of this section with a competent and disinterested38 umpire.39 (4) If a dispute resolution is initiated, a competent and disinterested40 umpire shall be mutually selected by the appraisers. Each party shall submit41 documentation to the umpire memorializing the differences, including the42

2 actual cash value and amount of loss as calculated by each appraiser. Within1 twenty (20) business days after receiving the documentation submitted by2 the parties, the umpire shall issue an award to one (1) of the appraisers3 selected by the parties, which shall be filed with the insurer and shall be4 considered the actual cash value or amount of loss.5 (5) An insurer's failure to comply with the procedures of this section6 shall be a violation of chapter 13, title 41, Idaho Code.7 (6) The department of insurance is authorized to promulgate rules, sub-8 ject to legislative approval, for the implementation and administration of9 this section.10

SECTION 2. An emergency existing therefor, which emergency is hereby11 declared to exist, this act shall be in full force and effect on and after12 July 1, 2026.13