TITLE 41

INSURANCE

CHAPTER 47

SMALL EMPLOYER HEALTH INSURANCE AVAILABILITY ACT

41-4705.  Establishment of classes of business. (1) A small employer carrier may establish a separate class of business only to reflect substantial differences in expected claims experience or administrative costs related to the following reasons:

(a)  The small employer carrier uses more than one (1) type of system for the marketing and sale of health benefit plans to small employers;

(b)  The small employer carrier has acquired a class of business from another small employer carrier; or

(c)  The small employer carrier provides coverage to one (1) or more association groups that meet the requirements of section 41-2202, Idaho Code.

(2)  A small employer carrier may establish up to nine (9) separate classes of business under the provisions of subsection (1) of this section.

(3)  The director may establish regulations to provide for a period of transition in order for a small employer carrier to come into compliance with the provisions of subsection (2) of this section in the instance of acquisition of an additional class of business from another small employer carrier.

(4)  The director may approve the establishment of additional classes of business upon application to the director and a finding by the director that such action would enhance the efficiency and fairness of the small employer marketplace.

History:

[41-4705, added 1993, ch. 176, sec. 1, p. 439.]