Repeals and amends existing law to provide that an insurer shall not be liable for a loss when certain illegal acts contributed to the loss.

IdahoCodeallowshealthinsurerstonotpayforhealthconditionsorinjuriesthatareassociatedwith an illegal act or the use of alcohol or narcotics. No provision is made for a neutral determination of illegality nor whether the use of drugs or alcohol is a cause of the injury or condition. An insurer who believes an act to be illegal or the result of alcohol or narcotics may simply decline to pay, without review or independent confirmation of illegality. This creates a conflict since the insurer can benefit financially from the denial of a claim. This legislation would require a determination in a neutral forum before an insurer may refuse to pay for care otherwise covered under a policy of health insurance. It also specifies that a denial of coverage for use of alcohol or narcotics must be based on an illegal use of drugs or alcohol.