2005 Idaho Code - 41-1312 — RIGHTS WITH RESPECT TO INSURANCE ON PROPERTY SOLD OR PURCHASED

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 13
                          TRADE PRACTICES AND FRAUDS
    41-1312.  RIGHTS WITH RESPECT TO INSURANCE ON PROPERTY SOLD OR PURCHASED.
Sections 41-1310 or 41-1311 shall not prevent:
    (1)  The reasonable exercise by any person engaged in any such business of
his right to approve or disapprove the insurance or the insurer selected to
write the insurance, on reasonable grounds related to the risk selection or
underwriting practices of the insurer, the adequacy and terms of the coverage
with respect to the interest of such person to be insured thereunder, the
quality of service rendered by the insurer or its representative in connection
with the insurance, and the financial standards to be met by the insurer; nor
of his right to furnish such insurance or to renew any insurance required by
the contract of sale or mortgage, trust deed or other loan agreement if the
borrower or purchaser has failed to furnish the insurance or renewal thereof
within such reasonable time or form as may be specified in the sale or loan
agreement. The lender or vendor shall not refuse to accept insurance provided
by an acceptable insurer on the ground that such insurance provides more
coverage than is required in the sale or loan agreement, unless the additional
coverage consists of life or disability insurance.
    (2)  The free choice of insurance agent or broker by any borrower or
purchaser at any time, and he may revoke any designation of insurance agent or
broker at any time irrespective of the provisions of any loan or purchase
agreement, mortgage, or trust deed.
    (3)  The exercise by any person engaged in such business of his right to
furnish such insurance or to renew such insurance, and to charge the account
of the borrower or purchaser with the costs thereof, if the borrower or
purchaser fails to deliver to the lender or vendor such insurance at least
thirty (30) days prior to expiration of the existing policy. If an insurance
policy procured by the borrower or purchaser is subsequently substituted for
that then in force, the lender or vendor may impose a reasonable service
charge as determined by the director for the transaction, and payment of such
charge by the agent or broker shall not be a violation of any other provision
of this code. No service charge shall be imposed for normal insurance changes
made during the term of the policy.
    (4)  The director may adopt a uniform statewide schedule of permissive
maximum charges for the substitution of policies authorized in subdivision (3)
above.