ID H0217

Clarifies insurance coverage priority when negligent operation of a loaned vehicle results in death, injury, or property damage; the operator's motor vehicle liability policy provides primary coverage for injury/death and property damage (except to the loaned vehicle itself).

Establishes that when an operator's policy covers physical damage to the loaned vehicle, that coverage is primary and limited to the lower of the reasonable repair cost or the owner's actual replacement cost.

Specifies that the loaned vehicle owner's insurance provides secondary or excess coverage for injury/death and property damage, but primary coverage for damage to the loaned vehicle itself.

Defines "loaned vehicle" as a motor vehicle provided temporarily without charge by a licensed entity (under chapter 16, title 49, Idaho Code) for demonstration to a prospective purchaser or as a convenience during vehicle repair or servicing.

Makes technical corrections by changing "indorsed" to "endorsed" and "specified" to "referenced" in existing insurance policy language.