2005 Legislation
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HOUSE BILL NO. 116 – Insurers, annual statements


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Bill Status

H0116...........................................................by BUSINESS
INSURERS - Repeals and amends existing law relating to insurers to remove
language requiring that certain insurers attach affidavits to their annual
statements; and to repeal language requiring affidavits of compliance.
02/04    House intro - 1st rdg - to printing
02/07    Rpt prt - to Bus
02/16    Rpt out - rec d/p - to 2nd rdg
02/17    2nd rdg - to 3rd rdg
02/21    3rd rdg - PASSED - 64-0-6
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon,
      Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Jaquet, Jones,
      Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin,
      McKague, Miller, Mitchell, Moyle, Nielsen, Pasley-Stuart, Pence,
      Raybould, Ring, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24),
      Smylie, Snodgrass, Trail, Wills, Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- Chadderdon, Clark, Henderson, Nonini, Ringo,
    Floor Sponsor - Rusche
    Title apvd - to Senate
02/22    Senate intro - 1st rdg - to Com/HuRes
03/04    Rpt out - rec d/p - to 2nd rdg
03/07    2nd rdg - to 3rd rdg
03/11    3rd rdg - PASSED - 32-0-2, 1 vacancy
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Gannon, Geddes, Goedde, Jorgenson, Kelly, Keough, Langhorst, Little,
      Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
      Schroeder, Stegner, Stennett, Werk, Williams
      NAYS -- None
      Absent and excused -- Hill, Sweet, (District 21 seat vacant)
    Floor Sponsor - Coiner
    Title apvd - to House
03/14    To enrol
03/15    Rpt enrol - Sp signed
03/16    Pres signed
03/17    To Governor
03/21    Governor signed
         Session Law Chapter 75
         Effective: 07/01/05

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 116
                                   BY BUSINESS COMMITTEE
  1                                        AN ACT
  6        ENCE.
  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, uti-
 18    lizing the version of the manual effective January 1, 2004, and any subsequent
 19    revisions that are adopted for use by the  director  by  rule,  administrative
 20    order  or  bulletin, and is to be submitted on the NAIC annual statement blank
 21    form, and any statement, form or other information relating to  the  compensa-
 22    tion  of any officer, director or employee will be deemed confidential. At the
 23    seasonable request of a domestic insurer the director  shall  furnish  to  the
 24    insurer  the  blank  form  of annual statement to be used by it. The statement
 25    shall be verified by the oath of the insurer's president  or  vice  president,
 26    and  secretary  or  actuary  as applicable, or if a reciprocal insurer, by the
 27    oath of the attorney in fact or its like officers if a corporation.
 28        (2)  The statement of an alien insurer shall be  verified  by  its  United
 29    States  manager or other officer duly authorized, and shall relate only to the
 30    insurer's transactions and affairs in the United States  unless  the  director
 31    requires  otherwise.  If the director requires a statement as to the insurer's
 32    affairs throughout the world, the insurer shall file such statement  with  the
 33    director as soon as reasonably possible.
 34        (3)  An  insurer which is subject to section 41-337, Idaho Code, (resident
 35    agent, countersignature law) shall attach to its annual statement the  affida-
 36    vit required under section 41-339, Idaho Code.
 37        (4)  Any  insurance  company  licensed  to do business in this state which
 38    neglects to file or fails to file in the time prescribed by statute its annual
 39    statement or supplemental summary statement requested by the director shall be
 40    subject to a penalty of twenty-five dollars ($25.00) per day for each  day  in
 41    default.  This penalty will be in addition to any administrative penalty which
 42    may be assessed pursuant to sections 41-327 and 41-324, Idaho Code.
 43        (54)  Each domestic insurer authorized to do business in this state  shall
  1    annually,  on  or  before  March 1 of each year, file with the NAIC its annual
  2    financial statement in a form prescribed by the director along with any  addi-
  3    tional filings prescribed by the director for the preceding year. The informa-
  4    tion  filed  with  the  NAIC  shall  be  in  the same format and scope as that
  5    required by this code. Any amendments or addenda to the annual statement shall
  6    also be filed with the NAIC.
  7        (65)  At time of filing, the insurer shall pay to the director    the  fee
  8    for filing its statement as prescribed by rule of the department of insurance.
  9        (76)  The  financial  statements  filed with the director pursuant to this
 10    section, with the exception of information relating to officer,  director,  or
 11    employee  compensation referred to in subsection (1) of this section, are pub-
 12    lic records and available to the public, notwithstanding the  exemptions  from
 13    disclosure provided in chapter 3, title 9, Idaho Code.
 14        SECTION  2.  That  Section  41-339, Idaho Code, be, and the same is hereby
 15    repealed.
 16        SECTION 3.  That Section 41-4807, Idaho Code, be, and the same  is  hereby
 17    amended to read as follows:
 18        41-4807.  COUNTER SIGNATURES NOT REQUIRED. A policy of insurance issued to
 19    a risk retention group or any member of that group shall not be required to be
 20    countersigned  as  otherwise  provided  in  sections  41-337,  and 41-338, and
 21    41-339, Idaho Code.

Statement of Purpose / Fiscal Impact

                     STATEMENT  OF  PURPOSE

                            RS 14425

Idaho Code 41-339 requires all foreign (non-Idaho) insurers to
attach an affidavit to their annual financial statement certifying
that the insurer has complied with Idaho's countersignature laws. 
The countersignature laws require that certain types of insurance
placed on Idaho risks through nonresident insurance producers be
"countersigned" by an Idaho insurance producer.  The requirement
for an Idaho producer countersignature applies only if the home
state of the nonresident producer would require a countersignature
for insurance written on risks in that state through an Idaho
producer.  Since nearly all states have eliminated countersignature
requirements, there are very few instances where Idaho's
countersignature laws actually come into play.

Currently, the Idaho Department of Insurance, along with other
state insurance regulators, is attempting to move to standardized
electronic filing of financial reports by insurers.  The
countersignature affidavit required by Section 41-339 would hinder
this process by requiring a separate filing of the countersignature
affidavit for Idaho.  Therefore, this legislation proposes repeal
of Section 41-339 along with references to the section in other
parts of the code.  Insurers will still be required to comply with
the countersignature laws, but will no longer be required to file
an affidavit certifying that they have complied with the laws.  The
proposal also deletes a reference in a separate code section to the
provision being repealed. 

                         FISCAL  IMPACT

No immediate fiscal impact; however, this legislation is intended
to help streamline the financial reporting process for insurers
doing business in this state which should ultimately result in cost
savings for the Department of Insurance as well as the insurers
doing business here.

Name:     Georgia Hill
Agency:   Insurance, Dept. of
Phone:    334-4314

Statement of Purpose/Fiscal Impact                   H 116