2004 Legislation
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HOUSE BILL NO. 618 – Insurer/certn/not property/casualty

HOUSE BILL NO. 618

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Bill Status



H0618...........................................................by BUSINESS
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.
      Speaker
      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,
      Sweet, Werk
      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
         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. 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
 14    state.
 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-
 24    tions.
 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
 41    NAIC.
 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
                                                                        
  1    where:
  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
 15    Code.
 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 / Fiscal Impact


                      STATEMENT OF PURPOSE
                            RS 13747
                                
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
Insurance Commissioners.



                              

                          FISCAL NOTE
There should be no fiscal impact to the general fund.
     









Contact:  Woody Richards
          Workers' Compensation Exchange
          (208) 385-5451
     
     
STATEMENT OF PURPOSE/FISCAL NOTE                      H 618