TITLE 41

INSURANCE

CHAPTER 28

ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS

41-2804.  Incorporation. (1) This section applies to stock and mutual insurers hereafter incorporated in this state.

(2)  Incorporators. Seven (7) or more individuals who are citizens of this state may incorporate a stock insurer; ten (10) or more of such individuals may incorporate a mutual insurer.

(3)  Articles of incorporation. The incorporators shall prepare and execute in triplicate articles of incorporation in accordance with the applicable provisions of chapters 21 and 29, title 30, Idaho Code, known as the "General Business Corporation" laws of this state, but subject to the following requirements:

(a)  In addition to matters required or permitted under such general business corporation laws not inconsistent with this provision or this code, the articles of incorporation shall set forth:

(i)   The name of the corporation, which shall comply with section 41-311, Idaho Code.

(ii)  The kinds of insurance, as defined in this code, that the corporation is formed to transact.

(iii) If a stock corporation, its authorized capital stock, the number of shares of stock into which divided and the par value of each such share, which par value shall be at least one dollar ($1.00). Shares without par value shall not be authorized.

(iv)  If a stock corporation, the extent, if any, to which shares of its stock are subject to assessment.

(v)   If a mutual corporation, the maximum contingent liability of its members, for payment of losses and expenses incurred, other than as to nonassessable policies issued as permitted under section 41-2849, Idaho Code; such liability shall be as stated in the articles of incorporation, but shall not be less than one (1) nor more than six (6) annual premiums for the member’s policy.

(vi)  The name and residence address of each incorporator, and whether each such incorporator is a citizen of this state.

(b)  Articles of incorporation shall be filed as provided in section 41-2805, Idaho Code.

History:

[41-2804, added 1961, ch. 330, sec. 572, p. 645; am. 1980, ch. 197, sec. 29, p. 453; am. 1990, ch. 383, sec. 1, p. 1061; am. 2003, ch. 163, sec. 3, p. 461; am. 2017, ch. 58, sec. 25, p. 118; am. 2021, ch. 321, sec. 27, p. 969.]