UNAUTHORIZED INSURERS AND SURPLUS LINES
41-1208. Defense of action by unauthorized insurer. (1) Before any unauthorized foreign or alien insurer shall file or cause to be filed any pleading in any action, suit or proceeding instituted against it, such unauthorized insurer shall:
(a) Deposit with the clerk of the court in which such action, suit or proceeding is pending, cash or securities, or file with such clerk a bond with good and sufficient sureties, to be approved by the court, in an amount determined by the court to be sufficient to secure the payment of any final judgment which may be rendered in such action, provided, however, that the court may in its discretion make an order dispensing with such deposit or bond where the insurer makes a showing satisfactory to such court that it maintains in a state of the United States funds or securities, in trust or otherwise, sufficient and available to satisfy any final judgment which may be entered in such action, suit or proceeding, and that such insurer will pay any final judgment rendered without requiring suit to be brought on such judgment in the state where such securities are located, or
(b) Procure a certificate of authority to transact the business of insurance in this state.
(2) In any action, suit or proceeding in which service is made in the manner provided in section 41-1207, [Idaho Code,] the court may, in its discretion, order such postponement as may be necessary to afford the defendant reasonable opportunity to comply with the provisions of subsection (1) of this section and to defend such action.
(3) Nothing in subsection (1) of this section is to be construed to prevent an unauthorized foreign or alien insurer from filing a motion, in accordance with the applicable rules of civil procedure, to quash a writ or to set aside service thereof made in the manner provided in section 41-1207, [Idaho Code,] hereof on the ground either:
(a) That such unauthorized insurer has not done any of the acts enumerated in section 41-1206, [Idaho Code,] or
(b) That the person on whom service was made pursuant to subsection (2) of section 41-1207[, Idaho Code,] was not doing any of the acts therein enumerated.
[41-1208, added 1961, ch. 330, sec. 252, p. 645.]