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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, Stevenson 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
]]]] 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 2 RELATING TO INSURERS; AMENDING SECTION 41-335, IDAHO CODE, TO REMOVE LANGUAGE 3 REQUIRING THAT CERTAIN INSURERS ATTACH AFFIDAVITS TO THEIR ANNUAL STATE- 4 MENTS; REPEALING SECTION 41-339, IDAHO CODE, REQUIRING AFFIDAVITS OF COM- 5 PLIANCE; AND AMENDING SECTION 41-4807, IDAHO CODE, TO DELETE A CODE REFER- 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, (resident35 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 2 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, and21 41-339,Idaho Code.
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. CONTACT Name: Georgia Hill Agency: Insurance, Dept. of Phone: 334-4314 Statement of Purpose/Fiscal Impact H 116