Print Friendly HOUSE BILL NO. 618 – Insurer/certn/not property/casualty
HOUSE BILL NO. 618
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INSURERS - Amends existing law to provide that a domestic reciprocal
insurer with fewer than seven subscribers that insures only worker's
compensation risk and that only issues fully assessable policies shall not
be defined as a property and casualty insurer.
02/06 House intro - 1st rdg - to printing
02/09 Rpt prt - to Bus
02/18 Rpt out - rec d/p - to 2nd rdg
02/19 2nd rdg - to 3rd rdg
02/23 3rd rdg - PASSED - 67-0-3
AYES -- Andersen, Barraclough, Barrett, Bayer, Bedke, Bell, Black,
Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Cuddy,
Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet,
Jones, Kellogg, 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, Mr.
NAYS -- None
Absent and excused -- Bauer, Crow, Wood
Floor Sponsor - Gagner
Title apvd - to Senate
02/24 Senate intro - 1st rdg - to Com/HuRes
02/27 Rpt out - rec d/p - to 2nd rdg
03/01 2nd rdg - to 3rd rdg
03/15 3rd rdg - PASSED - 29-0-6
AYES -- Andreason, Bailey, Bunderson, Burkett, Burtenshaw,
Calabretta, Compton, Darrington, Gannon, Geddes, Goedde, Hill,
Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie,
McWilliams, Noble, Pearce, Richardson, Schroeder, Sorensen, Stegner,
NAYS -- None
Absent and excused -- Brandt, Cameron, Davis, Noh, Stennett, Williams
Floor Sponsor - Goedde
Title apvd - to House
03/16 To enrol
03/17 Rpt enrol - Sp signed
03/18 Pres signed - To Governor
03/23 Governor signed
Session Law Chapter 255
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 618
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO THE REGULATION OF INSURANCE; AMENDING SECTION 41-5401, IDAHO CODE,
3 TO FURTHER DEFINE THE TERM "PROPERTY AND CASUALTY INSURER."
4 Be It Enacted by the Legislature of the State of Idaho:
5 SECTION 1. That Section 41-5401, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 41-5401. DEFINITIONS. As used in this chapter, these terms shall have the
8 following meanings:
9 (1) "Adjusted RBC report" means an RBC report which has been adjusted by
10 the director in accordance with section 41-5402(5), Idaho Code.
11 (2) "Corrective order" means an order issued by the director specifying
12 corrective actions which the director has determined are required.
13 (3) "Domestic insurer" means any insurance company domiciled in this
15 (4) "Foreign insurer" means any insurance company which is licensed to do
16 business in this state under section 41-322, Idaho Code, but is not domiciled
17 in this state.
18 (5) "Life and/or health insurer" means any insurance company licensed
19 under chapter 3, title 41, Idaho Code, to transact life, accident and/or
20 health insurance, or a licensed property and casualty insurer writing only
21 accident and health insurance, but shall not include fraternal benefit societ-
22 ies, health service organizations, dental service organizations, health main-
23 tenance organizations, dental plan organizations or mutual benefit associa-
25 (6) "NAIC" means the national association of insurance commissioners.
26 (7) "Negative trend" means, with respect to a life and/or health insurer,
27 a negative trend over a period of time, as determined in accordance with the
28 "Trend Test Calculation" included in the RBC instructions.
29 (8) "Property and casualty insurer" means any insurance company licensed
30 under chapter 3, title 41, Idaho Code, to transact property and casualty
31 insurance, but shall not include monoline mortgage guaranty insurers, finan-
32 cial guaranty insurers, title insurers, farm and county mutuals, health ser-
33 vice organizations, dental service organizations, health maintenance organiza-
34 tions, or dental plan organizations or domestic reciprocal insurers with fewer
35 than seven (7) subscribers which insure only worker's compensation risk and
36 which only issue fully assessable policies.
37 (9) "RBC" means risk-based capital.
38 (10) "RBC instructions" means the RBC report, including risk-based capital
39 instructions adopted by the NAIC, as such RBC instructions may be amended by
40 the NAIC from time to time in accordance with the procedures adopted by the
42 (11) "RBC level" means an insurer's company action level RBC, regulatory
43 action level RBC, authorized control level RBC, or mandatory control level RBC
2 (a) "Authorized control level RBC" means the number determined under the
3 risk-based capital formula in accordance with the RBC instructions;
4 (b) "Company action level RBC" means, with respect to any insurer, the
5 product of 2.0 and its authorized control level RBC;
6 (c) "Mandatory control level RBC" means the product of .70 and the autho-
7 rized control level RBC;
8 (d) "Regulatory action level RBC" means the product of 1.5 and its autho-
9 rized control level RBC.
10 (12) "RBC plan" means a comprehensive financial plan containing the ele-
11 ments specified in section 41-5403(2), Idaho Code. If the director rejects the
12 RBC plan, and it is revised by the insurer, with or without the director's
13 recommendation, the plan shall be called the "revised RBC plan."
14 (13) "RBC report" means the report required in section 41-5402, Idaho
16 (14) "Total adjusted capital" means the sum of:
17 (a) An insurer's statutory capital and surplus as determined in accor-
18 dance with the statutory accounting applicable to the annual financial
19 statements required to be filed under section 41-335, Idaho Code; and
20 (b) Such other items, if any, as the RBC instructions may provide.
STATEMENT OF PURPOSE
This legislation is intended to exempt domestic insurers with a
very small number of subscribers from the requirement to file
reports relating to their Risk-Based Capital status each year with
the Department of Insurance and the National Association of
There should be no fiscal impact to the general fund.
Contact: Woody Richards
Workers' Compensation Exchange
STATEMENT OF PURPOSE/FISCAL NOTE H 618