2007 Legislation
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HOUSE BILL NO. 90 – Insurers, examination, when

HOUSE BILL NO. 90

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Bill Status



H0090...........................................................by BUSINESS
INSURERS - EXAMINATION - Amends existing law relating to property insurance
rates to increase the maximum period for examination by the director of the
Department of Insurance of insurers and certain organizations from three
years to five years.

02/01    House intro - 1st rdg - to printing
02/02    Rpt prt - to Bus
02/26    Rpt out - rec d/p - to 2nd rdg
02/27    2nd rdg - to 3rd rdg
02/28    3rd rdg - PASSED - 68-0-2
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Block, Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew,
      Clark, Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart,
      Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
      Lake, LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin,
      Mortimer, Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence,
      Raybould, Ring, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer,
      Shepherd(2), Shepherd(8), Shirley, Shively, Smith(30), Smith(24),
      Snodgrass, Stevenson, Thayn, Trail, Vander Woude, Wood(27), Mr.
      Speaker
      NAYS -- None
      Absent and excused -- Wills, Wood(35)
    Floor Sponsor - Patrick
    Title apvd - to Senate
03/01    Senate intro - 1st rdg - to Com/HuRes
03/16    Rpt out - rec d/p - to 2nd rdg
03/19    2nd rdg - to 3rd rdg
03/22    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Gannon, Geddes,
      Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai, McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Cameron
    Title apvd - to House
03/23    To enrol - Rpt enrol - Sp signed - Pres signed
03/26    To Governor
03/30    Governor signed
         Session Law Chapter 279
         Effective: 07/01/07

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 90
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PROPERTY INSURANCE RATES; AMENDING SECTION 41-1427, IDAHO CODE, TO
  3        INCREASE THE MAXIMUM PERIOD FOR EXAMINATION BY THE  DIRECTOR  OF  INSURERS
  4        AND CERTAIN ORGANIZATIONS FROM THREE YEARS TO FIVE YEARS AND TO MAKE TECH-
  5        NICAL CORRECTIONS.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION  1.  That  Section 41-1427, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        41-1427.  EXAMINATION OF INSURERS AND RATING, ADVISORY,  JOINT  UNDERWRIT-
 10    ING,  AND JOINT REINSURANCE ORGANIZATIONS. (1) As often as he deems necessary,
 11    and not less frequently than each three five (35) years,  the  director  shall
 12    examine    each licensed rating organization, each advisory organization, each
 13    group, association or other organization of insurers which  engages  in  joint
 14    underwriting  or joint reinsurance, and each authorized insurer transacting in
 15    this state any class of insurance to which the provisions of this chapter  are
 16    applicable.  The  examination shall be for the purpose of ascertaining compli-
 17    ance by the person examined with the applicable provisions of this chapter. As
 18    to insurers, no such examination requirement shall be satisfied by  the  peri-
 19    odic examination of the insurer's general affairs.
 20        (2)  In lieu of any such examination the director may accept the report of
 21    a  similar  examination  made by the insurance supervisory official of another
 22    state.
 23        (3)  The reasonable cost of the examination shall be paid  by  the  person
 24    examined,  and  such  person  shall be subject, as though an "insurer," to the
 25    provisions of section 41-228, Idaho Code, (examination expense).
 26        (4)  Such examination shall also be subject to the  applicable  provisions
 27    of  sections 41-223, Idaho Code, (conduct of examination), 41-227, Idaho Code,
 28    (examination report),  41-229,  Idaho  Code,  (witnesses  and  evidence),  and
 29    41-230, Idaho Code, (testimony compelled; -- immunity from prosecution).

Statement of Purpose / Fiscal Impact


                    STATEMENT OF PURPOSE

                          RS 16483

Idaho Code Section 41-1427 authorizes the department to examine 
insurance rate making organizations, advisory organizations, 
joint reinsurance organizations and group, association or any 
other organization of insurers which engages in joint 
underwriting or joint reinsurance every three years.

This proposal changes the three year examination requirement for 
these entities to every five years.  This change will provide 
the Department greater flexibility in allocating its examination 
resources and is consistent with the examination requirements of 
Idaho Code ยง41-219(1) for domestic insurance companies.


                         FISCAL NOTE

No fiscal impact.




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


STATEMENT OF PURPOSE/FISCAL NOTE                      	H 90