2005 Idaho Code - 41-1839 — ALLOWANCE OF ATTORNEY FEES IN SUITS AGAINST INSURERS

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 18
                            THE INSURANCE CONTRACT
    41-1839.  ALLOWANCE OF ATTORNEY FEES IN SUITS AGAINST INSURERS. (1) Any
insurer issuing any policy, certificate or contract of insurance, surety,
guaranty or indemnity of any kind or nature whatsoever, which shall fail for a
period of thirty (30) days after proof of loss has been furnished as provided
in such policy, certificate or contract, to pay to the person entitled thereto
the amount justly due under such policy, certificate or contract, shall in any
action thereafter brought against the insurer in any court in this state for
recovery under the terms of the policy, certificate or contract, pay such
further amount as the court shall adjudge reasonable as attorney's fees in
such action.
    (2)  In any such action, if it is alleged that before the commencement
thereof, a tender of the full amount justly due was made to the person
entitled thereto, and such amount is thereupon deposited in the court, and if
the allegation is found to be true, or if it is determined in such action that
no amount is justly due, then no such attorney's fees may be recovered.
    (3)  This section shall not apply as to actions under the worker's
compensation law which are subject to section 72-611, Idaho Code. This section
shall not apply to actions against surety insurers by creditors of or
claimants against a principal and arising out of a surety or guaranty contract
issued by the insurer as to such principal, unless such creditors or claimants
shall have notified the surety of their claim, in writing, at least sixty (60)
days prior to such action against the surety. The surety shall be authorized
to determine what portion or amount of such claim is justly due the creditor
or claimant and payment or tender of the amount so determined by the surety
shall not be deemed a volunteer payment and shall not prejudice any right of
the surety to indemnification and/or subrogation so long as such determination
and payment by the surety be made in good faith. Nor shall this section apply
to actions against fidelity insurers by claimants against a principal and
arising out of a fidelity contract or policy issued by the insurer as to such
principal unless the liability of the principal has been acknowledged by him
in writing or otherwise established by judgment of a court of competent
jurisdiction.
    (4)  Notwithstanding any other provision of statute to the contrary, this
section and section 12-123, Idaho Code, shall provide the exclusive remedy for
the award of statutory attorney's fees in all actions between insureds and
insurers involving disputes arising under policies of insurance. Provided,
attorney's fees may be awarded by the court when it finds, from the facts
presented to it that a case was brought, pursued or defended frivolously,
unreasonably or without foundation. Section 12-120, Idaho Code, shall not
apply to any actions between insureds and insurers involving disputes arising
under any policy of insurance.