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H0491...........................................................by BUSINESS
INSURER - CERTIFICATE OF AUTHORITY - Amends existing law to provide that
the director may issue new orders of suspension; and to provide that
certificates of authority shall be deemed terminated at the end of the
suspension period if not reinstated or if a new order of suspension is not
issued.
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
02/16 3rd rdg - PASSED - 70-0-0
AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
Crow, Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth,
Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Henbest,
Jaquet, Jones, Kellogg(Nonini), Kulczyk, Lake, Langford, Langhorst,
Martinez, McGeachin, McKague, Meyer, Miller, Mitchell, Moyle,
Naccarato, Nielsen, Pasley-Stuart, Raybould, Ridinger, Ring, Ringo,
Roberts, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley,
Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- None
Floor Sponsor - Deal
Title apvd - to Senate
02/17 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 88
Effective: 07/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 491
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO SUSPENSION OF INSURER CERTIFICATES OF AUTHORITY; AMENDING SECTION
3 41-329, IDAHO CODE, TO PROVIDE THAT THE DIRECTOR MAY ISSUE NEW ORDERS OF
4 SUSPENSION, TO PROVIDE THAT CERTIFICATES OF AUTHORITY SHALL BE DEEMED TER-
5 MINATED AT THE END OF THE SUSPENSION PERIOD IF NOT REINSTATED OR IF A NEW
6 ORDER OF SUSPENSION IS NOT ISSUED AND TO MAKE A TECHNICAL CORRECTION.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Section 41-329, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 41-329. DURATION OF SUSPENSION -- INSURER'S OBLIGATIONS DURING SUSPENSION
11 PERIOD -- REINSTATEMENT. (1) Suspension of an insurer's certificate of author-
12 ity shall be for such period as the director specifies in the order of suspen-
13 sion, but not to exceed one (1) year. During the suspension the director may
14 rescind or shorten the suspension by his further order.
15 (2) During the suspension period the insurer shall not solicit or write
16 any new business in this state, but shall file its annual statement, pay fees,
17 licenses, and taxes as required under this code, and may service its business
18 already in force in this state, as if the certificate of authority had contin-
19 ued in full force.
20 (3) Upon expiration of the suspension period, if within such period the
21 certificate of authority has not terminated, the insurer's certificate of
22 authority shall automatically reinstate unless the director finds that the
23 causes of the suspension have not terminated, or that the insurer is otherwise
24 not in compliance with the requirements of this code, and of which the direc-
25 tor shall give the insurer notice not less than thirty (30) days in advance of
26 the expiration of the suspension period after which time the director may
27 issue a new order of suspension. If not so automatically reinstated or if a
28 new order of suspension is not issued, the certificate of authority shall be
29 deemed to have terminated as of the end of the suspension period.
30 (4) Upon reinstatement of the insurer's certificate of authority, the
31 authority of its agents in this state to represent the insurer shall likewise
32 reinstate. The director shall promptly notify the insurer and its agents in
33 this state of record in the department, of such reinstatement. If pursuant to
34 section 41-328(3), Idaho Code, the director has published notice of such sus-
35 pension he shall in like manner publish notice of the reinstatement.
STATEMENT OF PURPOSE
RS 13505
Idaho Code Section 41-329 allows the Director of the Department of
Insurance to suspend for up to one year the certificate of
authority of an insurer that is not in compliance with Idaho's
laws. In many cases, the company is unable to correct the problems
that led to the suspension within one year and a re-suspension of
the company's license to provide the company additional time to
come into compliance is preferable to terminating the company's
certificate of authority to do business in Idaho. Section 41-329
does not address resuspending a license, and subsection (3) of that
section could be interpreted as requiring that a company's
certificate of authority automatically terminate if a company
subject to a suspension order has not remedied the problems that
gave rise to the suspension order at the end of the one-year
suspension period. This bill amends the law to provide the
Director discretion to issue another order of suspension if the
company has not come into compliance within the initial one-year
suspension.
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 491