ID S1165

Amends Idaho Code Section 41-1839 to allow insured parties to recover attorney's fees when an insurer fails to pay within 30 days after proof of loss (or 60 days for uninsured/underinsured motorist coverage).

Eliminates attorney's fee recovery if the insurer made a full tender of the amount justly due before the action commenced and deposited it in court, or if the court determines no amount is justly due.

Exempts workers' compensation claims, surety claims (unless creditors provide 60-day written notice), and fidelity insurance claims (unless liability is acknowledged in writing or established by judgment) from attorney's fee provisions.

Establishes that Section 41-1839 and Section 12-123 provide the exclusive remedy for statutory attorney's fees in insurance disputes, with an exception allowing fees for frivolous or unfounded cases.

Prohibits application of Idaho Code Section 12-120 to actions or arbitrations between insureds and insurers involving insurance policy disputes.