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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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN 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 transactworkmen'sworker'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 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