View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
H0522...........................................................by BUSINESS
INSURANCE - Amends existing law to provide that a subscriber to a domestic
reciprocal insurer proposing to transact worker's compensation insurance,
which subscriber is a corporation, limited liability company or other legal
entity recognized by the state of Idaho as a separate entity, shall be
considered as one subscriber, regardless of the number of its wholly owned
subsidiaries.
02/01 House intro - 1st rdg - to printing
02/02 Rpt prt - to Bus
02/24 Rpt out - rec d/p - to 2nd rdg
02/27 2nd rdg - to 3rd rdg
03/03 3rd rdg - PASSED - 64-0-6
AYES -- Anderson, Andrus, Barrett, Bastian, Bayer, Bedke, Bell,
Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
Chadderdon, Clark, Collins, Deal, Denney, Edmunson, Eskridge,
Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp,
Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague,
Miller, Mitchell, Moyle, Nielsen, Pasley-Stuart, Pence, Raybould,
Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer,
Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24),
Smylie, Snodgrass, Stevenson, Trail, Wills, Wood
NAYS -- None
Absent and excused -- Barraclough, Crow, Ellsworth, Field(18),
Nonini, Mr. Speaker
Floor Sponsor - Rusche
Title apvd - to Senate
03/06 Senate intro - 1st rdg - to Com/HuRes
03/10 Rpt out - rec d/p - to 2nd rdg
03/13 2nd rdg - to 3rd rdg
03/16 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Goedde
Title apvd - to House
03/17 To enrol
03/20 Rpt enrol - Sp signed
03/21 Pres signed - To Governor
03/24 Governor signed
Session Law Chapter 199
Effective: 07/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature Second Regular Session - 2006
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 522
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO ORGANIZATION OF RECIPROCAL INSURERS; AMENDING SECTION 41-2908,
3 IDAHO CODE, TO PROVIDE THAT A SUBSCRIBER TO A DOMESTIC RECIPROCAL INSURER
4 PROPOSING TO TRANSACT WORKER'S COMPENSATION INSURANCE, WHICH SUBSCRIBER IS
5 A CORPORATION, LIMITED LIABILITY COMPANY OR OTHER LEGAL ENTITY RECOGNIZED
6 BY THE STATE OF IDAHO AS A SEPARATE ENTITY, SHALL BE CONSIDERED AS ONE
7 SUBSCRIBER, REGARDLESS OF THE NUMBER OF ITS WHOLLY OWNED SUBSIDIARIES AND
8 TO MAKE A TECHNICAL CORRECTION.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 41-2908, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 41-2908. ORGANIZATION OF RECIPROCAL INSURER. (1) Twenty-five (25) or more
13 persons domiciled in this state, or employers in this state having aggregate
14 payrolls of not less than one and one-half million dollars ($1,500,000) and
15 proposing to transact workmen's worker's compensation insurance only, may
16 organize a domestic reciprocal insurer and make application to the director
17 for a certificate of authority to transact insurance. A subscriber that is a
18 corporation, limited liability company or other legal entity recognized by the
19 state of Idaho as a separate entity, shall be considered as one (1) sub-
20 scriber, regardless of the number of its wholly owned subsidiaries.
21 (2) The proposed attorney shall fulfill the requirements of and shall
22 execute and file with the director when applying for a certificate of author-
23 ity, a declaration setting forth:
24 (a) The name of the insurer;
25 (b) The location of the insurer's principal office, which shall be the
26 same as that of the attorney and shall be maintained within this state;
27 (c) The kinds of insurance proposed to be transacted;
28 (d) The names and addresses of the original subscribers;
29 (e) The designation and appointment of the proposed attorney and a copy
30 of the power of attorney;
31 (f) The names and addresses of the officers and directors of the attor-
32 ney, if a corporation, or its members, if a firm;
33 (g) The powers of the subscribers' advisory committee; and the names and
34 terms of office of the members thereof;
35 (h) That all moneys paid to the reciprocal shall, after deducting there-
36 from any sum payable to the attorney, be held in the name of the insurer
37 and for the purposes specified in the subscribers' agreement;
38 (i) A copy of the subscribers' agreement;
39 (j) A statement that each of the original subscribers has in good faith
40 applied for insurance of a kind proposed to be transacted, and that the
41 insurer has received from each such subscriber the full premium or premium
42 deposit required for the policy applied for, for a term of not less than
43 six (6) months at an adequate rate theretofore filed with and approved by
2
1 the director;
2 (k) A statement of the financial condition of the insurer, a schedule of
3 its assets, and a statement that the surplus as required in section 41-313
4 or 41-313A, Idaho Code, is on hand; and
5 (l) A copy of each policy, endorsement and application form it then pro-
6 poses to issue or use.
7 Such declaration shall be acknowledged by the attorney in the manner
8 required for the acknowledgment of deeds.
STATEMENT OF PURPOSE
RS 15516
Section 41-2908, Idaho Code, requires that a minimum number of 25
persons may form a domestic reciprocal insurer to transact workers
compensation insurance business. This amendment provides that a
subscriber that is a corporation, limited liability company or
other legal entity shall be considered as one subscriber,
regardless of the number of its wholly-owned subsidiaries.
FISCAL NOTE
There will be no fiscal impact upon the enactment of this
legislation.
Contact
Name: Mark Benson, Potlatch Corporation
Phone: 509-995-7856
Woody Richards, Workers Comp Exchange
208-283-0334
STATEMENT OF PURPOSE/FISCAL NOTE H 522