2006 Legislation
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HOUSE BILL NO. 522 – Reciprocal insurers, worker’s comp

HOUSE BILL NO. 522

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Bill Status



H0522...........................................................by BUSINESS
INSURANCE - Amends existing law to provide that a subscriber to a domestic
reciprocal insurer proposing to transact worker's compensation insurance,
which subscriber is a corporation, limited liability company or other legal
entity recognized by the state of Idaho as a separate entity, shall be
considered as one subscriber, regardless of the number of its wholly owned
subsidiaries.
                                                                        
02/01    House intro - 1st rdg - to printing
02/02    Rpt prt - to Bus
02/24    Rpt out - rec d/p - to 2nd rdg
02/27    2nd rdg - to 3rd rdg
03/03    3rd rdg - PASSED - 64-0-6
      AYES -- Anderson, Andrus, Barrett, Bastian, Bayer, Bedke, Bell,
      Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Clark, Collins, Deal, Denney, Edmunson, Eskridge,
      Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp,
      Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague,
      Miller, Mitchell, Moyle, Nielsen, Pasley-Stuart, Pence, Raybould,
      Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24),
      Smylie, Snodgrass, Stevenson, Trail, Wills, Wood
      NAYS -- None
      Absent and excused -- Barraclough, Crow, Ellsworth, Field(18),
      Nonini, Mr. Speaker
    Floor Sponsor - Rusche
    Title apvd - to Senate
03/06    Senate intro - 1st rdg - to Com/HuRes
03/10    Rpt out - rec d/p - to 2nd rdg
03/13    2nd rdg - to 3rd rdg
03/16    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
      Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
      Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Goedde
    Title apvd - to House
03/17    To enrol
03/20    Rpt enrol - Sp signed
03/21    Pres signed - To Governor
03/24    Governor signed
         Session Law Chapter 199
         Effective: 07/01/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 522
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO ORGANIZATION OF RECIPROCAL  INSURERS;  AMENDING  SECTION  41-2908,
  3        IDAHO  CODE, TO PROVIDE THAT A SUBSCRIBER TO A DOMESTIC RECIPROCAL INSURER
  4        PROPOSING TO TRANSACT WORKER'S COMPENSATION INSURANCE, WHICH SUBSCRIBER IS
  5        A CORPORATION, LIMITED LIABILITY COMPANY OR OTHER LEGAL ENTITY  RECOGNIZED
  6        BY  THE  STATE  OF  IDAHO AS A SEPARATE ENTITY, SHALL BE CONSIDERED AS ONE
  7        SUBSCRIBER, REGARDLESS OF THE NUMBER OF ITS WHOLLY OWNED SUBSIDIARIES  AND
  8        TO MAKE A TECHNICAL CORRECTION.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Section 41-2908, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        41-2908.  ORGANIZATION OF RECIPROCAL INSURER. (1) Twenty-five (25) or more
 13    persons domiciled in this state, or employers in this state  having  aggregate
 14    payrolls  of  not  less than one and one-half million dollars ($1,500,000) and
 15    proposing to transact workmen's  worker's  compensation  insurance  only,  may
 16    organize  a  domestic  reciprocal insurer and make application to the director
 17    for a certificate of authority to transact insurance. A subscriber that  is  a
 18    corporation, limited liability company or other legal entity recognized by the
 19    state  of  Idaho  as  a  separate  entity, shall be considered as one (1) sub-
 20    scriber, regardless of the number of its wholly owned subsidiaries.
 21        (2)  The proposed attorney shall fulfill the  requirements  of  and  shall
 22    execute  and file with the director when applying for a certificate of author-
 23    ity, a declaration setting forth:
 24        (a)  The name of the insurer;
 25        (b)  The location of the insurer's principal office, which  shall  be  the
 26        same as that of the attorney and shall be maintained within this state;
 27        (c)  The kinds of insurance proposed to be transacted;
 28        (d)  The names and addresses of the original subscribers;
 29        (e)  The  designation  and appointment of the proposed attorney and a copy
 30        of the power of attorney;
 31        (f)  The names and addresses of the officers and directors of  the  attor-
 32        ney, if a corporation, or its members, if a firm;
 33        (g)  The  powers of the subscribers' advisory committee; and the names and
 34        terms of office of the members thereof;
 35        (h)  That all moneys paid to the reciprocal shall, after deducting  there-
 36        from  any  sum payable to the attorney, be held in the name of the insurer
 37        and for the purposes specified in the subscribers' agreement;
 38        (i)  A copy of the subscribers' agreement;
 39        (j)  A statement that each of the original subscribers has in  good  faith
 40        applied  for  insurance  of a kind proposed to be transacted, and that the
 41        insurer has received from each such subscriber the full premium or premium
 42        deposit required for the policy applied for, for a term of not  less  than
 43        six  (6) months at an adequate rate theretofore filed with and approved by
                                                                        
                                           2
                                                                        
  1        the director;
  2        (k)  A statement of the financial condition of the insurer, a schedule  of
  3        its assets, and a statement that the surplus as required in section 41-313
  4        or 41-313A, Idaho Code, is on hand; and
  5        (l)  A  copy of each policy, endorsement and application form it then pro-
  6        poses to issue or use.
  7        Such declaration shall be acknowledged  by  the  attorney  in  the  manner
  8    required for the acknowledgment of deeds.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15516

Section 41-2908, Idaho Code, requires that a minimum number of 25
persons may form a domestic reciprocal insurer to transact workers
compensation insurance business.  This amendment provides that a
subscriber that is a corporation, limited liability company or
other legal entity shall be considered as one subscriber,
regardless of the number of its wholly-owned subsidiaries.


                           FISCAL NOTE

There will be no fiscal impact upon the enactment of this
legislation.





Contact
Name:     Mark Benson, Potlatch Corporation 
Phone:    509-995-7856
          Woody Richards, Workers Comp Exchange
          208-283-0334



STATEMENT OF PURPOSE/FISCAL NOTE                         H 522