Print Friendly HOUSE BILL NO. 91 – Insurer, certain, newly formed
HOUSE BILL NO. 91
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INSURER - DOMESTIC MUTUAL - Amends existing law relating to the Department
of Insurance to delete an obsolete reference to the limit of risk for newly
formed domestic mutual insurers.
02/01 House intro - 1st rdg - to printing
02/02 Rpt prt - to Bus
02/28 Rpt out - rec d/p - to 2nd rdg
03/01 2nd rdg - to 3rd rdg
03/02 3rd rdg - PASSED - 63-2-5
AYES -- Anderson, Andrus, Barrett, Bedke, Bell, Bilbao, Black, Block,
Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark,
Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Henbest, Jaquet,
Killen, King, Kren, Labrador, Lake, LeFavour, Loertscher, Luker,
Marriott, Mathews, McGeachin, Moyle, Nielsen, 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, Wills,
Wood(27), Mr. Speaker
NAYS -- Mortimer, Wood(35)
Absent and excused -- Bayer, Edmunson, Harwood, Henderson, Nonini
Floor Sponsor - Collins
Title apvd - to Senate
03/05 Senate intro - 1st rdg - to Com/HuRes
03/16 Rpt out - rec d/p - to 2nd rdg
03/19 2nd rdg - to 3rd rdg
03/21 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
03/22 To enrol - Rpt enrol - Sp signed
03/23 Pres signed
03/26 To Governor
03/30 Governor signed
Session Law Chapter 280
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 91
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO THE DEPARTMENT OF INSURANCE; AMENDING SECTION 41-509, IDAHO CODE,
3 TO DELETE AN OBSOLETE REFERENCE TO THE LIMIT OF RISK FOR NEWLY FORMED
4 DOMESTIC MUTUAL INSURERS AND TO MAKE TECHNICAL CORRECTIONS.
5 Be It Enacted by the Legislature of the State of Idaho:
6 SECTION 1. That Section 41-509, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 41-509. LIMIT OF RISK. (1) No insurer shall retain any risk on any one
9 subject of insurance, whether located or to be performed in this state or
10 elsewhere, in an amount exceeding ten per cent percent (10%) of its surplus to
11 policy holders policyholders.
12 (2) A "subject of insurance" for the purposes of this section, as to
13 insurance against fire and hazards other than windstorm, earthquake and other
14 catastrophic hazards, includes all properties insured by the same insurer
15 which are customarily considered by underwriters to be subject to loss or dam-
16 age from the same fire or the same occurrence of any other hazard insured
18 (3) Reinsurance ceded as authorized by section 41-511, of this Idaho
19 C code shall be deducted in determining risk retained. As to surety risks,
20 deduction shall also be made of the amount assumed by any established incorpo-
21 rated cosurety and the value of any security deposited, pledged, or held sub-
22 ject to the surety's consent and for the surety's protection.
23 (4) As to alien insurers, this section shall relate only to risks and
24 surplus to policy holders policyholders of the insurer's United States branch.
25 (5) "Surplus to policy holders policyholders" for the purposes of this
26 section, in addition to the insurer's capital and surplus, shall be deemed to
27 include any voluntary reserves which are not required pursuant to law, and
28 shall be determined from the last sworn statement of the insurer on file with
29 the director, or by the last report of examination of the insurer, whichever
30 is the more recent at time of assumption of risk.
31 (6) This section shall not apply to life or disability insurance, annu-
32 ities, title insurance, insurance of wet marine and transportation risks,
33 workmen's worker's compensation insurance, employers' liability coverages, nor
34 to any policy or type of coverage as to which the maximum possible loss to the
35 insurer is not readily ascertainable on issuance of the policy.
36 (7) Limits of risks as to newly formed domestic mutual insurers shall be
37 as provided in section 41-2820.
STATEMENT OF PURPOSE
Idaho Code Section 41-509 limits the net amount of risk an
insurer can retain for property coverage to 10% of surplus to
policyholders. Subsection 41-509(7) refers to risk limits
provided in §41-2820 for newly formed domestic mutual companies;
however, §41-2820 was amended in 1995 and no longer addresses
any risk limits for mutual insurers.
This proposal deletes the obsolete reference from Section 41-509
and clarifies that a newly formed domestic mutual property
insurer is subject to the same limit of risk that all other
property insurers are currently subject to.
No fiscal impact.
Name: Georgia Hill
Agency: Insurance, Dept. of
STATEMENT OF PURPOSE/FISCAL NOTE H 91