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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
]]]] 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, orauthorized 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 soauthorized or allowed to transact 15 insurance in this state. 16 (2) No life insurer shall be soauthorized 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, ornewly 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 soauthorized 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 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