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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, (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
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, and
21 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