Bill Analyses and Ratings
Bill Information: H0769 – Auto Insurance Appraisal & Dispute Resolution
Bill Summary
House Bill 769 adds Section 49-1211 to Idaho Code, requiring every licensed automobile insurer to include an appraisal provision in all policies issued, renewed, or delivered in Idaho. When a policyholder and insurer disagree on the actual cash value of a vehicle, the amount of a loss, or a third-party liability settlement offer, either party may invoke this provision by sending a written demand letter identifying their chosen appraiser. The opposing party then has 20 calendar days to name their own appraiser, and each appraiser must complete and deliver their appraisal within 20 business days of selection. Each party bears the cost of their own appraiser.
If the two appraisers cannot reach agreement, either party may within 20 calendar days initiate a second tier of dispute resolution: the appraisers jointly select a neutral umpire, submit documentation of their differing valuations, and the umpire issues a binding award within 20 business days. The umpire’s award is filed with the insurer and constitutes the final actual cash value or amount of loss. An insurer’s failure to follow these procedures constitutes a violation of Idaho’s Unfair Trade Practices in Insurance chapter (Title 41, Chapter 13), exposing non-compliant insurers to regulatory enforcement. The Department of Insurance is authorized to promulgate implementing rules subject to legislative approval, and the bill takes effect July 1, 2026.
Overall Assessment
This bill creates a mandatory, structured appraisal and dispute resolution process that Idaho auto insurance policyholders can invoke whenever they disagree with their insurer’s valuation of a claim or settlement offer. Policyholders gain a concrete, enforceable right to an independent appraisal with defined timelines, backed by regulatory penalties against insurers who refuse to comply. The bill expands the Department of Insurance’s rulemaking authority and adds new mandatory policy requirements on every automobile insurer operating in Idaho, increasing the regulatory burden on the industry.
Rating Breakdown
ARTICLE I. RESPONSIBILITY IN GOVERNMENT (-1)
Section 49-1211(6) grants the Department of Insurance new authority to 'promulgate rules, subject to legislative approval, for the implementation and administration of this section,' expanding the administrative regulatory apparatus. The bill also mandates specific policy language, appraisal timelines, and umpire procedures that insurers must follow under penalty of an unfair trade practices violation, growing the scope of state regulatory oversight over private insurance contracts.
ARTICLE II. CITIZEN INVOLVEMENT IN GOVERNMENT (0)
This bill governs the contractual and dispute resolution relationship between automobile insurers and policyholders. It has no bearing on elections, voting processes, citizen participation in government, or political discourse.
ARTICLE III. EDUCATION (0)
The bill is confined to automobile insurance appraisal procedures and has no connection to education policy, school funding, curriculum, parental rights in education, or any related topic.
ARTICLE IV. AGRICULTURE (0)
The bill addresses auto insurance claim disputes and has no relevance to farming, ranching, agricultural markets, water law, or rural economic policy.
ARTICLE V. WATER (0)
The bill creates an insurance dispute resolution process and has no connection to water rights, water appropriation, inter-basin transfers, or federal-state water management issues.
ARTICLE VI. NATURAL RESOURCES AND ENVIRONMENT (0)
The bill is limited to automobile insurance appraisal procedures and has no bearing on natural resource management, environmental regulation, federal land policy, or related topics.
ARTICLE VII. ENERGY (0)
The bill governs auto insurance claim disputes and has no connection to energy production, energy independence, utility regulation, or hydroelectric and nuclear power policy.
ARTICLE VIII. IDAHO NATIONAL LABORATORIES (0)
The bill addresses automobile insurance disputes and has no relevance to the Idaho National Laboratory, nuclear research, or technology development missions.
ARTICLE IX. PRIVATE PROPERTY RIGHTS (0)
While the bill involves appraisal of automobile values, it does not address eminent domain, regulatory takings, land use restrictions, or a property owner's right to develop property — the core concerns of this metric. The appraisal process is a contractual dispute mechanism, not a government action affecting property rights.
ARTICLE X. STATE AND FEDERAL LANDS (0)
The bill is confined to automobile insurance dispute resolution and has no connection to state or federal land ownership, management, or sovereignty issues.
ARTICLE XI. WILDLIFE MANAGEMENT (0)
The bill addresses auto insurance appraisal procedures and has no relevance to wildlife management, hunting, fishing, predator control, or recreational access.
ARTICLE XII. ECONOMY (0)
The bill imposes new mandatory requirements on every automobile insurer licensed in Idaho — including mandatory policy provisions, defined appraisal timelines, umpire selection procedures, and compliance penalties — which adds regulatory compliance costs to the insurance industry. However, the bill also creates a more predictable dispute resolution framework that could reduce costly litigation, and its direct effect on broader commerce, small business, labor, or transportation infrastructure is limited.
ARTICLE XIII. HEALTH AND WELFARE (0)
The bill governs automobile insurance claim disputes and has no connection to healthcare delivery, health insurance regulation, the Affordable Care Act, welfare programs, or conscience protections.
ARTICLE XIV. AMERICAN FAMILY (0)
The bill establishes an auto insurance appraisal process and has no bearing on family values, marriage, parental rights, abortion, or child welfare policy.
ARTICLE XV. OLDER AMERICANS (0)
The bill creates an insurance dispute resolution mechanism applicable to all policyholders equally and contains no provisions specifically targeting or affecting older Americans, retirement, or senior services.
ARTICLE XVI. LAW AND ORDER WITH JUSTICE (0)
The bill establishes a civil dispute resolution process for insurance valuation disagreements. While Section 49-1211(5) designates insurer noncompliance as a violation of Idaho's unfair trade practices statute, the bill does not address criminal justice, gun rights, sentencing, law enforcement, or victims' rights.
ARTICLE XVII. NATIONAL DEFENSE – SECURING THE BORDER (0)
The bill addresses automobile insurance appraisal procedures and has no connection to national defense, border security, military affairs, or veterans' policy.
ARTICLE XVIII. ELECTION OF JUDGES AND IDAHO SUPREME COURT JUSTICES (0)
The bill creates an administrative insurance dispute resolution process and has no bearing on judicial elections, the selection of judges or justices, or constitutional interpretation principles.
ARTICLE XIX. RELIGIOUS LIBERTY (0)
The bill governs automobile insurance claim appraisals and has no connection to religious freedom, free exercise rights, conscience protections, or government interference in religious practice.