2004 Legislation
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HOUSE BILL NO. 497 – Insurers, annual statements

HOUSE BILL NO. 497

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Bill Status



H0497...........................................................by BUSINESS
INSURERS - Amends existing law relating to insurance to provide that annual
statements shall be prepared in accordance with specified standards of the
National Association of Insurance Commissioners and revisions to such
standards as adopted by the director of the Department of Insurance.
                                                                        
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 - 64-0-6
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
      Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow,
      Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Field(18),
      Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet,
      Kellogg(Nonini), Kulczyk, Lake, Langford, Langhorst, Martinez,
      McGeachin, 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, Trail, Wills, Wood
      NAYS -- None
      Absent and excused -- Black, Eskridge, Jones, McKague, Stevenson, Mr.
      Speaker
    Floor Sponsor - Meyer
    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 - Compton
    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 93
         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. 497
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO INSURANCE; AMENDING SECTION 41-335, IDAHO CODE,  TO  PROVIDE  THAT
  3        ANNUAL STATEMENTS SHALL BE PREPARED IN ACCORDANCE WITH SPECIFIED STANDARDS
  4        OF  THE  NATIONAL  ASSOCIATION OF INSURANCE COMMISSIONERS AND REVISIONS TO
  5        SUCH STANDARDS AS ADOPTED BY THE DIRECTOR, TO PROVIDE CORRECT  TERMINOLOGY
  6        AND TO MAKE GRAMMATICAL CORRECTIONS.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION  1.  That  Section  41-335, Idaho Code, be, and the same is hereby
  9    amended to read as follows:
                                                                        
 10        41-335.  ANNUAL STATEMENT. (1) Each authorized insurer shall  annually  on
 11    or  before  March  1,  or within any extension of time therefor, not to exceed
 12    thirty (30) days, which the director for good cause  may  have  granted,  file
 13    with the director a full and true statement of its financial condition, trans-
 14    actions and affairs as of the preceding December 31. Unless otherwise required
 15    by  the  director,  the  statement  is  to  be prepared in accordance with the
 16    national association  of  insurance  commissioners'  (NAIC)  annual  statement
 17    instructions  and  the  NAIC's  accounting  practices  and  procedures manual,
 18    adopted by the national association of insurance commissioners (NAIC)  utiliz-
 19    ing  the  version  of the manual effective January 1, 2004, and any subsequent
 20    revisions that are adopted for use by the  director  by  rule,  administrative
 21    order or bulletin, and is to be submitted on the NAIC annual convention state-
 22    ment  blank form, and any statement, form or other information relating to the
 23    compensation of any officer, director or employee will be deemed confidential.
 24    At the seasonable request of a domestic insurer the director shall furnish  to
 25    the insurer the blank form of annual statement to be used by it. The statement
 26    shall  be  verified  by the oath of the insurer's president or vice president,
 27    and secretary or actuary as applicable, or if a  reciprocal  insurer,  by  the
 28    oath of the attorney in fact or its like officers if a corporation.
 29        (2)  The  statement  of  an  alien insurer shall be verified by its United
 30    States manager or other officer duly authorized, and shall relate only to  the
 31    insurer's  transactions  and  affairs in the United States unless the director
 32    requires otherwise. If the director requires a statement as to  the  insurer's
 33    affairs  throughout  the world, the insurer shall file such statement with the
 34    director as soon as reasonably possible.
 35        (3)  An insurer which is subject to section 41-337, Idaho Code,  (resident
 36    agent,  countersignature law) shall attach to its annual statement the affida-
 37    vit required under section 41-339, Idaho Code.
 38        (4)  Any insurance company licensed to do business  in  this  state  which
 39    neglects to file or fails to file in the time prescribed by statute its annual
 40    statement or supplemental summary statement requested by the director shall be
 41    subject  to  a penalty of twenty-five dollars ($25.00) per day for each day in
 42    default. This penalty will be in addition to any administrative penalty  which
 43    may be assessed pursuant to sections 41-327 and 41-324, Idaho Code.
                                                                        
                                           2
                                                                        
  1        (5)  Each  domestic  insurer authorized to do business in this state shall
  2    annually, on or before March 1 of each year, file with  the  NAIC  its  annual
  3    financial  statement in a form prescribed by the director along with any addi-
  4    tional filings prescribed by the director for the preceding year. The informa-
  5    tion filed with the NAIC shall be  in  the  same  format  and  scope  as  that
  6    required by this code. Any amendments or addenda to the annual statement shall
  7    also be filed with the NAIC.
  8        (6)  At  time of filing, the insurer shall pay to the director the fee for
  9    filing its statement as prescribed by rule of the department of insurance.
 10        (7)  The financial statements filed with the  director  pursuant  to  this
 11    section,  with  the exception of information relating to officer, director, or
 12    employee compensation referred to in subsection (1) of this section, are  pub-
 13    lic  records  and available to the public, notwithstanding the exemptions from
 14    disclosure provided in chapter 3, title 9, Idaho Code.

Statement of Purpose / Fiscal Impact


                     STATEMENT  OF  PURPOSE
                            RS 13521
This bill amends Idaho Code Section 41-335 to specify the edition
of the National Association of Insurance Commissioners' accounting
practices and procedures manual to be used by insurers in
completing financial reports to the Department of Insurance, and to
allow the Director to adopt subsequent revisions to the manual by
rule, order or bulletin.





                         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 497