HOUSE BILL NO. 494

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Bill Status



H0494...........................................................by BUSINESS
INSURERS - Amends existing law to limit the ability of an insurer to
transact insurance in Idaho based on the characteristics of the business
name of the insurer; and to authorize the director of the Department of
Insurance to permit or require an insurer to supplement or modify a
business name in the case of a conflict of names.
                                                                        
01/20    House intro - 1st rdg - to printing
01/21    Rpt prt - to Bus
02/10    Rpt out - rec d/p - to 2nd rdg
02/11    2nd rdg - to 3rd rdg
02/17    3rd rdg - PASSED - 60-0-10
      AYES -- Andersen, Barrett, Bauer, Bayer, Bedke, Bell, Block, Boe,
      Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow, Cuddy, Deal,
      Denney, Douglas, Eberle, Ellsworth, Field(18), Field(23), Gagner,
      Garrett, Harwood, Henbest, Jaquet, Kellogg(Nonini), Kulczyk, Lake,
      Langford, Langhorst, Martinez, Meyer, Miller, Mitchell, Moyle,
      Nielsen, Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Roberts,
      Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen,
      Smith(30), Smith(24), Smylie, Snodgrass, Trail, Wills, Wood
      NAYS -- None
      Absent and excused -- Barraclough, Black, Edmunson, Eskridge, Jones,
      McGeachin, McKague, Naccarato, Stevenson, Mr. Speaker
    Floor Sponsor - Snodgrass
    Title apvd - to Senate
02/18    Senate intro - 1st rdg - to Com/HuRes
02/25    Rpt out - rec d/p - to 2nd rdg
02/26    2nd rdg - to 3rd rdg
03/10    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason(Andreason), Bailey, Brandt, Bunderson, Burkett,
      Burtenshaw, Calabretta, Cameron, Compton, Darrington, Davis, Gannon,
      Geddes, Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge,
      Malepeai, Marley, McKenzie, McWilliams, Noble, Noh, Pearce,
      Richardson, Schroeder, Sorensen, Stegner, Stennett, Sweet, Werk,
      Williams
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Werk
    Title apvd - to House
03/11    To enrol
03/12    Rpt enrol - Sp signed
03/15    Pres signed
03/16    To Governor
03/19    Governor signed
         Session Law Chapter 91
         Effective: 07/01/04

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 494
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO INSURER REQUIREMENTS; AMENDING  SECTION  41-311,  IDAHO  CODE,  TO
  3        LIMIT  THE  ABILITY  OF AN INSURER TO TRANSACT INSURANCE IN IDAHO BASED ON
  4        THE CHARACTERISTICS OF THE BUSINESS NAME OF THE INSURER AND  TO  AUTHORIZE
  5        THE  DIRECTOR  OF  THE  DEPARTMENT  OF  INSURANCE  TO PERMIT OR REQUIRE AN
  6        INSURER TO SUPPLEMENT OR MODIFY A BUSINESS NAME IN THE CASE OF A  CONFLICT
  7        OF NAMES.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION  1.  That  Section  41-311, Idaho Code, be, and the same is hereby
 10    amended to read as follows:
                                                                        
 11        41-311.  NAME OF INSURER. (1) No insurer shall be formed, or authorized or
 12    otherwise allowed to transact insurance in this state which has or uses a name
 13    or principal identifying name factor which is the same as or deceptively simi-
 14    lar to that of another insurer earlier so authorized or  allowed  to  transact
 15    insurance in this state.
 16        (2)  No life insurer shall be so authorized or otherwise allowed to trans-
 17    act  insurance  in  this state which has or uses a name deceptively similar to
 18    that of another insurer authorized or otherwise allowed to transact  insurance
 19    in  this  state within the preceding ten (10) years if life insurance policies
 20    originally issued by such other insurer are still outstanding in this state.
 21        (3)  No insurer shall hereafter be formed, or newly authorized  or  other-
 22    wise  allowed to transact insurance in this state which has or uses a name the
 23    same as or deceptively similar to the name of any foreign insurer doing  busi-
 24    ness  elsewhere than in this state if such foreign insurer has within the last
 25    preceding twelve (12) months signified its intention to  secure  incorporation
 26    in  this  state  under  such name, or do business as a foreign insurer in this
 27    state under such name by filing notice of such intention  with  the  director,
 28    unless the written consent to the use of such name or deceptively similar name
 29    has been given by such foreign insurer.
 30        (4)  No  insurer  shall  be so authorized or otherwise allowed to transact
 31    insurance in this state which has or uses a name which  tends  to  deceive  or
 32    mislead as to the type of organization of the insurer.
 33        (5)  In case of conflict of names hereafter between two (2) insurers, or a
 34    conflict  otherwise prohibited under this section, the director may permit, or
 35    shall require as a condition to the issuance of  an  original  certificate  of
 36    authority  or  other approval to transact insurance in this state to an appli-
 37    cant insurer, the insurer to use in this state such supplementation or modifi-
 38    cation of its name or such business name as may  reasonably  be  necessary  to
 39    avoid  the  conflict. No such name, supplementation or modification shall con-
 40    tain the principal identifying factor of the name of any other insurer already
 41    authorized or otherwise allowed to transact insurance in this state.

Statement of Purpose / Fiscal Impact


                     STATEMENT  OF  PURPOSE
                            RS 13508
Idaho Code Section 41-311 prohibits an insurer from using a name
deceptively similar to another insurer authorized to do business in
Idaho.  Certain types of insurers, however, are not technically
"authorized" to do business in Idaho by virtue of a certificate of
authority, but are allowed to transact insurance in Idaho.  For
example, surplus lines insurers.  This bill amends Section 41-311
to include any insurer allowed to do business in Idaho within the
prohibition against using a name deceptively similar to another
insurer.




                         FISCAL  IMPACT
There will be no fiscal impact.




CONTACT   
Name:     Shad Priest
Agency:   Department of Insurance
Phone:    334-4214

Statement of Purpose/Fiscal Impact                 H 494