2006 Legislation
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HOUSE BILL NO. 586 – Insurance admin, certificates


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Bill Status

H0586...........................................................by BUSINESS
INSURANCE ADMINISTRATORS - Amends existing law relating to insurance
administrators to revise fees and expiration and renewal periods for
02/08    House intro - 1st rdg - to printing
02/09    Rpt prt - to Bus
02/14    Rpt out - rec d/p - to 2nd rdg
02/15    2nd rdg - to 3rd rdg
02/21    3rd rdg - PASSED - 65-4-1
      AYES -- Anderson, Andrus, Barraclough, Bastian, Bayer, Bedke, Bell,
      Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
      Henderson, Jaquet, Kemp, Lake, LeFavour, Martinez, Mathews,
      McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
      Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smylie, Snodgrass, Stevenson, Trail, Wills, Mr.
      NAYS -- Barrett, Loertscher, Sali(Sali), Wood
      Absent and excused -- Smith(24)
    Floor Sponsor - Snodgrass
    Title apvd - to Senate
02/22    Senate intro - 1st rdg - to Com/HuRes
03/01    Rpt out - rec d/p - to 2nd rdg
03/02    2nd rdg - to 3rd rdg
03/07    3rd rdg - PASSED - 33-0-2
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Cameron,
      Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
      Malepeai, Marley, McGee, McKenzie, Richardson, Schroeder, Stegner,
      Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Burtenshaw, Pearce
    Floor Sponsor - Coiner
    Title apvd - to House
03/08    To enrol
03/09    Rpt enrol - Sp signed
03/10    Pres signed
03/13    To Governor
03/14    Governor signed
         Session Law Chapter 45
         Effective: 07/01/06

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 586
                                   BY BUSINESS COMMITTEE
  1                                        AN ACT
  5    Be It Enacted by the Legislature of the State of Idaho:
  6        SECTION 1.  That Section 41-913, Idaho Code, be, and the  same  is  hereby
  7    amended to read as follows:
  9    REVOCATION. (1) No person shall act as or hold himself out to be  an  adminis-
 10    trator  in  this  state, other than an adjuster licensed in this state for the
 11    kinds of business for which such person is acting as an adjuster, unless  such
 12    person  shall  hold  a  valid  certificate of registration as an administrator
 13    issued by the director.
 14        (2)  An application for such certificate shall be in the  form  prescribed
 15    by  the  director,  and  shall  be accompanied by a fee of one hundred dollars
 16    ($100), or as provided for by regulation rule, which fee is not refundable  if
 17    the application is denied.
 18        (3)  Such  certificate  shall  not be issued until the director has deter-
 19    mined that the administrator is competent, trustworthy, financially  responsi-
 20    ble and of good personal and business reputation.
 21        (4)  Such  certificate shall expire on the December 31 of the year follow-
 22    ing its issuance, but may be renewed annually for a period  of  one  two  (12)
 23    years commencing January 1 upon filing a renewal form prescribed by the direc-
 24    tor, accompanied by a fee of one hundred dollars ($100), or as provided for by
 25    regulation  rule.  Such renewal form shall be filed on or before the preceding
 26    November 1, and December 31. Aany renewal  form filed  postmarked  after  such
 27    date December 31 shall also be accompanied by an additional late filing fee of
 28    fifty  dollars  ($50.00)  in  the amount of double the unpaid renewal fee. Any
 29    renewal postmarked after January 31 must be submitted  as  a  new  application
 30    with  supporting documents and accompanied by the full application fee as pro-
 31    vided for by rule.
 32        (5)  Such certificate shall be  renewed  by  the  director  unless,  after
 33    notice and hearing, the director shall determine that the administrator is not
 34    competent,  trustworthy, financially responsible or of good personal and busi-
 35    ness reputation, or has had an insurance  license  denied  for  cause  by  any
 36    state.
 37        (6)  After  notice  and hearing, the director may either suspend or revoke
 38    such certificate upon finding the administrator violated any of the provisions
 39    of this title or upon finding any of the reasons for  which  the  issuance  or
 40    renewal of such certificate could have been denied.
 41        (7)  Any  person who is acting as or holding himself out to be an adminis-
 42    trator while failing to have a valid certificate shall be subject to a fine of
 43    not less than one thousand dollars ($1,000) nor more than ten thousand dollars
  1    ($10,000) for each violation. Such fine shall be in addition to any other pen-
  2    alties which may be imposed for violations of this title or other laws of this
  3    state.
  4        (8)  Any fines imposed pursuant to the provisions of this section shall be
  5    remitted and accounted for as provided for by section 41-406, Idaho Code.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                             RS 15354

This proposed legislation extends the deadline for renewing an
insurance administrator registration to coincide with the date
the registration expires.  The current law requires that the
application for renewal be received November 1 even though the
registration does not expire until December 31.  The early
renewal requirement has resulted in confusion and frequent late
renewals.  In addition to extending the deadline for renewals,
the proposed legislation sets out penalties for late renewals and
requires a new application for registration if the renewal is
more than a month late.

                           FISCAL NOTE



Name: Jim Genetti, Department of Insurance 
Phone: 334-4250

STATEMENT OF PURPOSE/FISCAL NOTE                        H 586