2007 Legislation
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HOUSE BILL NO. 91 – Insurer, certain, newly formed

HOUSE BILL NO. 91

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Bill Status



H0091...........................................................by BUSINESS
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
         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. 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
 17    against.
 18        (3)  Reinsurance  ceded  as  authorized  by  section 41-511, of this Idaho
 19    Ccode 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 / Fiscal Impact


                    STATEMENT OF PURPOSE

                          RS 16484

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.


                         FISCAL NOTE

No fiscal impact.



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

STATEMENT OF PURPOSE/FISCAL NOTE	                   H 91