reglab/statecodes huggingface dataset:
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2851 - SOLICITATIONS IN OTHER STATES.

41-2851. SOLICITATIONS IN OTHER STATES. (1) No domestic insurer shall knowingly solicit insurance business in any reciprocating state in which it is not then licensed as an authorized insurer.
(2) This section shall not prohibit advertising through publications and radio, television and other broadcasts originating outside such reciprocating state, if the insurer is licensed in a majority of the states in which such advertising is disseminated, and if such advertising is not specifically directed to residents of such reciprocating state.
(3) This section shall not prohibit insurance, covering persons or risks located in a reciprocating state, under contracts solicited and issued in states in which the insurer is then licensed. Nor shall it prohibit insurance effectuated by the insurer as an unauthorized insurer in accordance with the laws of the reciprocating state.
(4) A "reciprocating" state, as used herein, is one under the laws of which a similar prohibition is imposed upon and enforced against insurers domiciled in that state.
(5) The director shall suspend or revoke the certificate of authority of a domestic insurer found by him, after a hearing, to have violated this section.
History:
[41-2851, added 1961, ch. 330, sec. 619, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2852 - IMPAIRMENT OF CAPITAL OR ASSETS.

41-2852. IMPAIRMENT OF CAPITAL OR ASSETS. (1) If the assets of a domestic insurer are less than its liabilities and the minimum amount of capital funds required to be maintained by it under section 41-313, Idaho Code, for authority to transact the kinds of insurance being transacted, the director shall at once determine the amount of deficiency and serve notice upon the insurer to cure the deficiency and file proof thereof with him within the period specified in the notice, which period shall be not less than thirty (30) nor more than ninety (90) days from the date of the notice. Such notice may be so served by delivery to the insurer, or by mailing to the insurer addressed to its registered office in this state.
(2) The deficiency may be made good in cash or in assets eligible under chapter 7 (investments) for the investment of the insurer’s funds; or by amendment of the insurer’s certificate of authority to cover only such kind or kinds of insurance thereafter for which the insurer has sufficient paid-in capital stock (if a stock insurer) or surplus (if a mutual insurer) under this code; or, if a stock insurer, by reduction of the number of shares of the insurer’s authorized capital stock or the par value thereof through amendment of its articles of incorporation, to an amount of authorized and paid-in capital stock not below the minimum required for the kinds of insurance thereafter to be transacted.
(3) After any such reduction of authorized capital stock the insurer shall require the surrender to it of outstanding stock certificates in exchange for new certificates to be issued in lieu thereof for such number and/or par value of shares as the respective stockholders are proportionately entitled to receive.
(4) If the deficiency is not made good and proof thereof filed with the director within the period required by the notice as specified in subsection (1) above, the insurer shall be deemed insolvent and the director shall institute delinquency proceedings against it under chapter 33 of this code.
History:
[41-2852, added 1961, ch. 330, sec. 620, p. 645; am. 1999, ch. 65, sec. 7, p. 172.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2853 - ASSESSMENT OF STOCKHOLDERS OR MEMBERS.

41-2853. ASSESSMENT OF STOCKHOLDERS OR MEMBERS. (1) Any insurer receiving the director’s notice required in section 41-2852(1):
(a) If a stock insurer and to the extent that stockholders are subject to assessment under the insurer’s articles of incorporation, by resolution of its board of directors the insurer may assess its stockholders for amounts necessary to cure the deficiency and provide the insurer with a reasonable amount of surplus in addition. If any stockholder fails to pay a lawful assessment after notice given to him in person, or by mail addressed to him at his address last of record with the insurer, or in such other manner as may be approved by the director, the insurer may require the return of the certificates of stock theretofore held by the stockholder, and in cancellation and in lieu thereof issue new certificates for such number of shares as the stockholder may then be entitled to, upon the basis of the stockholder’s proportionate interest in the amount of the insurer’s capital stock as determined by the director to be remaining unimpaired at the time of the determination of the amount of impairment under section 41-2852, after deducting from such proportionate interest the amount of such unpaid assessment. The insurer may pay for or issue fractional shares under this subsection.
(b) If a mutual insurer, may levy an assessment upon members as is provided for under section 41-2847.
(2) Neither this section nor section 41-2852 shall be deemed to prohibit the insurer from curing any such deficiency through any lawful means other than those referred to in such sections.
History:
[41-2853, added 1961, ch. 330, sec. 621, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2854 - MUTUALIZATION OF STOCK INSURERS.

41-2854. MUTUALIZATION OF STOCK INSURERS. (1) A stock insurer other than a title insurer may become a mutual insurer under such plan and procedure as may be approved by the director after a hearing thereon.
(2) The director shall not approve any such plan, procedure or mutualization unless:
(a) It is equitable to stockholders and policyholders;
(b) It is subject to approval by the holders of not less than a majority of the insurer’s outstanding capital stock having voting rights, and by not less than a majority of the insurer’s policyholders who vote on such plan in person, by proxy or by mail pursuant to such notice and procedure as may be approved by the director;
(c) If a life insurer, the right to vote thereon is limited to holders of policies other than term or group policies, and whose policies have been in force for more than one (1) year;
(d) Mutualization will result in retirement of shares of the insurer’s capital stock at a price not in excess of the fair market value thereof as determined by competent disinterested appraisers;
(e) The plan provides for the purchase of the shares of any nonconsenting stockholder in the same manner and subject to the same applicable conditions as provided by the general corporation law of the state as to rights of nonconsenting stockholders, with respect to consolidation or merger of private corporations;
(f) The plan provides for definite conditions to be fulfilled by a designated early date upon which such mutualization will be deemed effective; and
(g) The mutualization leaves the insurer with surplus funds reasonably adequate for the security of its policyholders and to enable it to continue successfully in business in the states in which it is then authorized to transact insurance, and for the kinds of insurance included in its certificates of authority in such states.
(3) No director, officer, agent or employee of the insurer, nor any other person, shall receive any fee, commission or other valuable consideration whatsoever for in any manner aiding, promoting, or assisting therein except as set forth in the plan of mutualization as approved by the director.
(4) This section shall not apply to mutualization under order of court pursuant to rehabilitation or reorganization of an insurer under chapter 33.
History:
[41-2854, added 1961, ch. 330, sec. 623, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2857 - MERGERS AND CONSOLIDATIONS OF MUTUAL INSURERS.

41-2857. MERGERS AND CONSOLIDATIONS OF MUTUAL INSURERS. (1) Except as set forth in section 41-3824, Idaho Code, a domestic mutual insurer shall not merge or consolidate with a stock insurer.
(2) A domestic mutual insurer may merge or consolidate with another mutual insurer under the applicable procedures prescribed by the statutes of this state applying to corporations formed for profit, except as hereinbelow provided.
(3) The plan and agreement for merger or consolidation shall be submitted to and approved by at least two-thirds (2/3) of the members of each mutual insurer voting thereon at meetings called for the purpose pursuant to such reasonable notice and procedure as has been approved by the director. If a life insurer, right to vote may be limited to members whose policies are other than term and group policies and have been in effect for more than one (1) year.
(4) No such merger or consolidation shall be effectuated unless in advance thereof the plan and agreement therefor have been filed with the director and approved by him in writing after a hearing thereon. The director shall give such approval within a reasonable time after such filing unless he finds such plan or agreement:
(a) Inequitable to the policyholders of any domestic insurer involved; or
(b) Would substantially reduce the security of and service to be rendered to policyholders of the domestic insurer in this state and elsewhere; or
(c) Is subject to other material and reasonable objections.
(5) If the director does not approve such plan or agreement, he shall so notify the insurers in writing specifying his reasons therefor.
(6) No director, officer, agent or employee of any insurer party to such merger or consolidation, nor any other person, shall receive any fee, commission or other valuable consideration whatsoever for in any manner aiding, promoting, or assisting therein except as set forth in the plan and agreement approved by the director.
History:
[41-2857, added 1961, ch. 330, sec. 625, p. 645; am. 1998, ch. 303, sec. 2, p. 1001; am. 2013, ch. 266, sec. 11, p. 687.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2858 - BULK REINSURANCE — MUTUAL INSURERS.

41-2858. BULK REINSURANCE — MUTUAL INSURERS. (1) A domestic mutual insurer may reinsure all or substantially all of its business in force, or all or substantially all of a major class thereof, with another insurer, stock or mutual, by an agreement of bulk reinsurance after compliance with this section. No such agreement shall become effective unless filed with the director and approved by him in writing.
(2) The director shall approve such agreement within a reasonable time after filing if he finds it to be fair and equitable to each domestic insurer involved, and that such reinsurance if effectuated would not substantially reduce the protection or service to its policyholders. If the director does not so approve, he shall so notify each insurer involved in writing specifying his reasons therefor.
(3) If for reinsurance of all or substantially all of its business in force, the plan and agreement for such reinsurance must be approved by vote of not less than two-thirds (2/3) of each domestic mutual insurer’s members voting thereon at meetings of members called for the purpose, pursuant to such reasonable notice and procedure as the director may approve. If a life insurer, right to vote may be limited to members whose policies are other than term or group policies, and have been in effect for more than one (1) year.
(4) If for reinsurance in a stock insurer of all or substantially all of the insurance in force of a mutual insurer, the agreement must provide for payment in cash to each member of the insurer entitled thereto of his equity, if any, in the business reinsured as determined under a fair formula approved by the director, as based upon the reserves, assets (whether or not "admitted" assets) and surplus, if any, of the mutual insurer to be taken over by the stock insurer.
(5) No director, officer, agent or employee of any insurer party to such reinsurance, nor any other person, shall receive any fee, commission or other valuable consideration whatsoever for in any manner aiding, promoting, or assisting therein except as set forth in the reinsurance agreement.
History:
[41-2858, added 1961, ch. 330, sec. 626, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2859 - MUTUAL MEMBER’S SHARE OF ASSETS ON LIQUIDATION.

41-2859. MUTUAL MEMBER’S SHARE OF ASSETS ON LIQUIDATION. (1) Upon any liquidation of a domestic mutual insurer, its assets remaining after discharge of its indebtedness, policy obligations, repayment of contributed or borrowed surplus, if any, and expenses of administration, shall be distributed to currently existing persons who had been members of the insurer for at least one year and who were its members at any time within thirty-six (36) months next preceding the date such liquidation was authorized or ordered, or date of last termination of the insurer’s certificate of authority whichever date is the earlier; except, that if the director has reason to believe that those in charge of the management of the insurer have caused or encouraged the reduction of the number of members of the insurer in anticipation of liquidation and for the purpose of reducing thereby the number of persons who may be entitled to share in distribution of the insurer’s assets, he may enlarge the thirty-six (36) month qualification period above provided for by such additional period as he may deem to be reasonable.
(2) The insurer shall make a reasonable classification of its policies so held by such members, and a formula based upon such classification for determining the equitable distributive share of each such member. Such classification and formula shall be subject to the approval of the director.
History:
[41-2859, added 1961, ch. 330, sec. 627, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2860 - EQUITY SECURITIES OF DOMESTIC STOCK INSURANCE COMPANIES — STATEMENTS OF OWNERSHIP.

41-2860. EQUITY SECURITIES OF DOMESTIC STOCK INSURANCE COMPANIES — STATEMENTS OF OWNERSHIP. Every person who is directly or indirectly the beneficial owner of more than ten per cent (10%) of any class of any equity security of a domestic stock insurance company, or who is a director or an officer of such company, shall file in the office of the director of the department of insurance on or before the 1st day of July, 1965, or within ten (10) days after he becomes such beneficial owner, director or officer, a statement, in such form as the director of the department of insurance may prescribe, of the amount of all equity securities of such company of which he is the beneficial owner, and within ten (10) days after the close of each calendar month thereafter, if there has been a change in such ownership during such month, shall file in the office of the director of the department of insurance a statement, indicating his ownership at the close of the calendar month and such changes in his ownership as have occurred during such calendar month.
History:
[41-2860, added 1965, ch. 294, sec. 1, p. 782.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2861 - RECOVERY OF PROFITS RESULTING FROM UNFAIR USE OF INFORMATION.

41-2861. RECOVERY OF PROFITS RESULTING FROM UNFAIR USE OF INFORMATION. For the purpose of preventing the unfair use of information which may have been obtained by such beneficial owner, director or officer by reason of his relationship to such company, any profit realized by him from any purchase and sale, or any sale and purchase, of any equity security of such company within any period of less than six (6) months, unless such security was acquired in good faith in connection with a debt previously contracted, shall inure to and be recoverable by the company, irrespective of any intention on the part of such beneficial owner, director or officer in entering into such transaction of holding the security purchased or of not repurchasing the security sold for a period exceeding six (6) months. Suit to recover such profit may be instituted at law or in equity in any court of competent jurisdiction by the company, or by the owner of any security of the company in the name and in behalf of the company if the company shall fail or refuse to bring such suit within sixty (60) days after request or shall fail diligently to prosecute the same thereafter; but no such suit shall be brought more than two (2) years after the date such profit was realized. This section shall not be construed to cover any transaction where such beneficial owner was not such both at the time of the purchase and sale, or the sale and purchase, of the security involved, or any transaction or transactions which the director of the department of insurance by rules and regulations may exempt as not comprehended within the purpose of this section.
History:
[41-2861, added 1965, ch. 294, sec. 2, p. 782.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2862 - RESTRICTIONS ON SALE OF EQUITY SECURITIES.

41-2862. RESTRICTIONS ON SALE OF EQUITY SECURITIES. It shall be unlawful for any such beneficial owner, director or officer, directly or indirectly, to sell any equity security of such company if the person selling the security or his principal:
(a) does not own the security sold; or
(b) if owning the security, does not deliver it against such sale within twenty (20) days thereafter, or does not within five (5) days after such sale deposit in the mails or other usual channels of transportation; but no person shall be deemed to have violated this section if he proves that notwithstanding the exercise of good faith he was unable to make such delivery or deposit within such time, or that to do so would cause undue inconvenience or expense.
History:
[41-2862, added 1965, ch. 294, sec. 3, p. 782.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2863 - PURCHASES AND SALES WHICH ARE EXEMPT.

41-2863. PURCHASES AND SALES WHICH ARE EXEMPT. The provisions of section 41-2861 shall not apply to any purchase and sale, or sale and purchase, and the provisions of section 41-2862 shall not apply to any sale of an equity security of a domestic stock insurance company not then or theretofore held by him in an investment account, by a dealer in the ordinary course of his business and incident to the establishment or maintenance by him of a primary or secondary market (otherwise than on an exchange as defined in the Securities Exchange Act of 1934) for such security. The director of the department of insurance may, by such rules and regulations as he deems necessary or appropriate in the public interest, define and prescribe terms and conditions with respect to securities held in an investment account and transactions made in the ordinary course of business and incident to the establishment or maintenance of a primary or secondary market.
History:
[41-2863, added 1965, ch. 294, sec. 4, p. 782.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2864 - FOREIGN OR DOMESTIC ARBITRAGE TRANSACTIONS EXEMPT.

41-2864. FOREIGN OR DOMESTIC ARBITRAGE TRANSACTIONS EXEMPT. The provisions of sections 41-2860—41-2862 shall not apply to foreign or domestic arbitrage transactions unless made in contravention of such rules and regulations as the director of the department of insurance may adopt in order to carry out the purposes of this act.
History:
[41-2864, added 1965, ch. 294, sec. 5, p. 782.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2865 - “EQUITY SECURITY” DEFINED.

41-2865. "EQUITY SECURITY" DEFINED. The term "equity security" when used in this act means any stock or similar security; or any security convertible, with or without consideration, into such a security, or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right; or any other security which the director of the department of insurance shall deem to be of similar nature and consider necessary or appropriate, by such rules and regulations as he may prescribe in the public interest or for the protection of investors, to treat as an equity security.
History:
[41-2865, added 1965, ch. 294, sec. 6, p. 782.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2866 - CONDITIONS EXEMPTING EQUITY SECURITIES.

41-2866. CONDITIONS EXEMPTING EQUITY SECURITIES. The provisions of sections 41-2860—41-2862 shall not apply to equity securities of a domestic stock insurance company if:
(a) Such securities shall be registered, or shall be required to be registered, pursuant to section 12 of the Securities Exchange Act of 1934, as amended; or
(b) Such domestic stock insurance company shall not have any class of its equity securities held of record by one hundred (100) or more persons on the last business day of the year next preceding the year in which equity securities of the company would be subject to the provisions of sections 41-2860—41-2862 except for the provisions of this subsection (b).
History:
[41-2866, added 1965, ch. 294, sec. 7, p. 782.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2867 - RULES AND REGULATIONS.

41-2867. RULES AND REGULATIONS. The director of the department of insurance shall have the power to make such rules and regulations as may be necessary for the execution of the functions invested in him by sections 41-2860—41-2862, and may for such purpose classify domestic stock insurance companies, securities, and other persons or matters within his jurisdiction. No provision of sections 41-2860—41-2862 imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule or regulation of the director of the department of insurance, notwithstanding that such rule or regulation may, after such act or omission, be amended or rescinded or determined by judicial or other authority to be invalid for any reason.
History:
[41-2867, added 1965, ch. 294, sec. 8, p. 782.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2869 - PURPOSE.

41-2869. PURPOSE. The purpose of sections 41-2870 through 41-2871, 41-2839(4)(c), and 41-804(3), Idaho Code, is to authorize insurance companies to utilize modern systems for holding and transferring securities without physical delivery of securities certificates, subject to appropriate regulations by the director of the department of insurance for safeguarding the assets and facilitating the director’s examination of the insurance company’s financial condition.
History:
[41-2869, added 1981, ch. 174, sec. 2, p. 307.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2870 - DEFINITIONS.

41-2870. DEFINITIONS. As used in this act:
(1) "Securities" means instruments as defined in section 28-8-102(1)(o), Idaho Code.
(2) "Clearing corporation" means a corporation as defined in section 28-8-102(1)(e), Idaho Code.
(3) "Direct participant" means a national bank, state bank or trust company that maintains an account in its name in a clearing corporation and through which an insurance company participates in a clearing corporation.
(4) "Federal reserve book-entry system" means the computerized systems sponsored by the United States department of the treasury and certain agencies and instrumentalities of the United States for holding and transferring securities of the United States government and such agencies and instrumentalities, respectively, in federal reserve banks through banks that are members of the federal reserve system.
(5) "Member bank" means a national bank, state bank or trust company that is a member of the federal reserve system and to which an insurance company participates in the federal reserve book-entry system.
History:
[41-2870, added 1981, ch. 174, sec. 2, p. 308; am. 2021, ch. 321, sec. 28, p. 970.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2871 - USE OF BOOK-ENTRY SYSTEMS.

41-2871. USE OF BOOK-ENTRY SYSTEMS. (1) A domestic insurer may deposit or arrange for the deposit of securities held in or purchased for its general account and its separate accounts in a clearing corporation or the federal reserve book-entry system. When securities are deposited with a clearing corporation, certificates representing securities of the same class of the same issuer may be merged and held in bulk in the name of the nominee of such clearing corporation with any other securities deposited with such clearing corporation by any person, regardless of the ownership of such securities, and certificates representing securities of small denominations may be merged into one or more certificates of larger denominations. The records of any member bank through which an insurer holds securities in the federal reserve book-entry system, and the records of any custodian banks through which an insurer holds securities in a clearing corporation, shall at all times show that such securities are held for such insurer and for which accounts thereof. Ownership of, and other interests in, such securities may be transferred by bookkeeping entry on the books of such clearing corporation or in the federal reserve book-entry system without, in either case, physical delivery of certificates representing such securities.
(2) The director of the department of insurance is authorized to promulgate rules and regulations governing the deposit by insurers of securities with clearing corporations and in the federal reserve book-entry system.
History:
[41-2871, added 1981, ch. 174, sec. 2, p. 308.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2872 - HEALTH CARE PROVIDER CONTRACTS — GRIEVANCE PROCEDURE.

41-2872. HEALTH CARE PROVIDER CONTRACTS — GRIEVANCE PROCEDURE. (1) Any stock or mutual insurer (hereinafter insurance company) issuing benefits pursuant to the provisions of this chapter shall be ready and willing at all times to enter into health care provider service contracts with all qualified health care providers of the category or categories which are necessary to provide the health care services covered by the insurance company’s policy of insurance if such health care providers: are qualified under the laws of the state of Idaho, desire to become participant health care providers of the insurance company, meet the requirements of the insurance company, and practice within the general area served by the insurance company.
(2) Nothing in this section shall preclude an insurance company from refusing to contract with a health care provider who is unqualified or who does not meet the terms and conditions of the participating provider contract of the insurance company or from terminating or refusing to renew the contract of a participating health care provider who is unqualified or who does not comply with, or who refuses to comply with, the terms and conditions of the participating health care provider contract including, but not limited to, practice standards and quality requirements. The contract shall provide for written notice to the participating health care provider setting forth any breach of contract for which the insurance company proposes that the contract be terminated or not renewed and shall provide for a reasonable period of time for the participating health care provider to cure such breach prior to termination or nonrenewal. If the breach has not been cured within such period of time the contract may be terminated or not renewed. Provided however, that if the breach of contract for which the insurance company proposes that the contract be terminated or not renewed is a willful breach, fraud or a breach which poses an immediate danger to the public health or safety, the contract may be terminated or not renewed immediately.
(3) Every insurance company issuing benefits pursuant to this chapter shall establish a grievance system for health care providers. Such grievance system shall provide for arbitration according to chapter 9, title 7, Idaho Code, or for such other system which provides reasonable due process provisions for the resolution of grievances and the protection of the rights of the parties.
(4) Subsections (1) and (2) of this section shall apply to health care provider participation contracts entered into after July 1, 1994.
History:
[41-2872, added 1994, ch. 275, sec. 1, p. 853.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2873 - BEST PRICE — MOST FAVORED NATIONS CLAUSE PROHIBITED.

41-2873. BEST PRICE — MOST FAVORED NATIONS CLAUSE PROHIBITED. (1) No stock or mutual insurance company (hereafter, insurance company) may require, as an element of any health care provider participation contract, that any provider agree:
(a) To the unnegotiated adjustment by the insurance company of the provider’s contractual reimbursement rate to equal the lowest reimbursement rate the provider has agreed to charge any other payor;
(b) To a requirement that the provider adjust, or enter into negotiations to adjust, his or her charges to the insurance company if the provider agrees to charge another payor lower rates; or
(c) To a requirement that the provider disclose his or her contractual reimbursement rates from other payors.
(2) For the purposes of this section, "provider" means any physician, hospital, or other person licensed or otherwise authorized to furnish health care services in Idaho.
History:
[41-2873, added 1998, ch. 422, sec. 2, p. 1334.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2901 - “RECIPROCAL” INSURANCE DEFINED.

41-2901. "RECIPROCAL" INSURANCE DEFINED. "Reciprocal" insurance is that resulting from an interexchange among persons, known as "subscribers", of reciprocal agreements of indemnity, the interexchange being effectuated through an "attorney in fact" common to all such persons.
History:
[41-2901, added 1961, ch. 330, sec. 628, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2902 - “RECIPROCAL INSURER” DEFINED.

41-2902. "RECIPROCAL INSURER" DEFINED. A "reciprocal insurer" means an unincorporated aggregation of subscribers operating individually and collectively through an attorney in fact to provide reciprocal insurance among themselves. When all participants in a reciprocal insurer are political subdivisions of the state of Idaho, such interexchange may be accomplished by a joint exercise of powers agreement pursuant to chapter 23, title 67, Idaho Code.
History:
[41-2902, added 1961, ch. 330, sec. 629, p. 645; am. 1996, ch. 245, sec. 2, p. 777.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2903 - SCOPE OF CHAPTER — EXISTING INSURERS.

41-2903. SCOPE OF CHAPTER — EXISTING INSURERS. (1) All authorized reciprocal insurers shall be governed by those sections of this chapter not expressly made applicable to domestic reciprocals. Political subdivisions of the state of Idaho participating in a reciprocal insurance program shall retain all rights, obligations, and immunities which inure to their respective benefit or duty, without compromise or modification, as otherwise provided by law.
(2) Every reciprocal insurer in its own name as in the case of an individual may purchase, receive, own, hold, lease, mortgage, pledge or encumber, and may by deed of trust or otherwise, manage and sell real estate for the purposes and objects of the reciprocal including, but not limited to, investment for the production of income, or for its accommodation in the convenient transaction of its business. Any contract including, but not limited to, deeds, leases, mortgages, deeds of trust, purchase of sale agreements or any other contract to be executed in the name of the reciprocal insurer, may be executed by the attorney designated by the subscribers of the reciprocal insurer.
(3) Existing authorized reciprocal insurers shall after the effective date of this code comply with the provisions of this chapter, and shall make such amendments to their subscribers’ agreement, power of attorney, policies and other documents and accounts and perform such other acts as may be required for such compliance.
History:
[41-2903, added 1961, ch. 330, sec. 630, p. 645; am. 1992, ch. 76, sec. 1, p. 214; am. 1996, ch. 245, sec. 3, p. 777.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2904 - INSURING POWERS OF RECIPROCALS.

41-2904. INSURING POWERS OF RECIPROCALS. (1) A reciprocal insurer may, upon qualifying therefor as provided for by this code, transact any kind or kinds of insurance defined by this code, other than life or title insurances.
(2) Such an insurer may purchase reinsurance, and may grant reinsurance as to any kind of insurance it is authorized to transact direct.
History:
[41-2904, added 1961, ch. 330, sec. 631, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2905 - NAME — SUITS.

41-2905. NAME — SUITS. A reciprocal insurer shall: (1) Have and use a business name. The name shall include the word "reciprocal," or "interinsurer," or "interinsurance," or "exchange," or "underwriters," or "underwriting."
(2) Sue and be sued in its own name.
History:
[41-2905, added 1961, ch. 330, sec. 632, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2906 - SURPLUS FUNDS REQUIRED.

41-2906. SURPLUS FUNDS REQUIRED. (1) A domestic reciprocal insurer is governed, as to surplus required to be maintained, by section 41-313 or 41-313A, Idaho Code.
(2) A domestic reciprocal insurer may be authorized to transact additional kinds of insurance if it has otherwise complied with the provisions of this code therefor and possesses and maintains surplus funds as to such additional kinds of insurance as provided in section 41-313, Idaho Code.
(3) A domestic reciprocal insurer holding a valid certificate of authority to transact insurance in this state immediately prior to January 1, 1995, shall have a period of two (2) years from and after January 1, 1995, within which to comply with any increase in surplus requirements.
History:
[41-2906, added 1961, ch. 330, sec. 633, p. 645; am. 1969, ch. 214, sec. 69, p. 625; am. 1979, ch. 318, sec. 2, p. 855; am. 1995, ch. 96, sec. 5, p. 276.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2907 - ATTORNEY.

41-2907. ATTORNEY. (1) "Attorney," as used in this chapter, refers to the attorney in fact of a reciprocal insurer. The attorney may be an individual, firm, joint powers entity, or corporation.
(2) The attorney of a foreign or alien reciprocal insurer, which insurer is duly authorized to transact insurance in this state, shall not, by virtue of discharge of its duties as such attorney with respect to the insurer’s transactions in this state, be thereby deemed to be doing business in this state within the meaning of any laws of this state applying to foreign firms or corporations.
History:
[41-2907, added 1961, ch. 330, sec. 634, p. 645; am. 1996, ch. 245, sec. 4, p. 777.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2908 - ORGANIZATION OF RECIPROCAL INSURER.

41-2908. ORGANIZATION OF RECIPROCAL INSURER. (1) Twenty-five (25) or more persons domiciled in this state, or employers in this state having aggregate payrolls of not less than one and one-half million dollars ($1,500,000) and proposing to transact worker’s compensation insurance only, may organize a domestic reciprocal insurer and make application to the director for a certificate of authority to transact insurance. A subscriber that is a corporation, limited liability company or other legal entity recognized by the state of Idaho as a separate entity, shall be considered as one (1) subscriber, regardless of the number of its wholly owned subsidiaries.
(2) The proposed attorney shall fulfill the requirements of and shall execute and file with the director when applying for a certificate of authority, a declaration setting forth:
(a) The name of the insurer;
(b) The location of the insurer’s principal office, which shall be the same as that of the attorney and shall be maintained within this state;
(c) The kinds of insurance proposed to be transacted;
(d) The names and addresses of the original subscribers;
(e) The designation and appointment of the proposed attorney and a copy of the power of attorney;
(f) The names and addresses of the officers and directors of the attorney, if a corporation, or its members, if a firm;
(g) The powers of the subscribers’ advisory committee; and the names and terms of office of the members thereof;
(h) That all moneys paid to the reciprocal shall, after deducting therefrom any sum payable to the attorney, be held in the name of the insurer and for the purposes specified in the subscribers’ agreement;
(i) A copy of the subscribers’ agreement;
(j) A statement that each of the original subscribers has in good faith applied for insurance of a kind proposed to be transacted, and that the insurer has received from each such subscriber the full premium or premium deposit required for the policy applied for, for a term of not less than six (6) months at an adequate rate theretofore filed with and approved by the director;
(k) A statement of the financial condition of the insurer, a schedule of its assets, and a statement that the surplus as required in section 41-313 or 41-313A, Idaho Code, is on hand; and
(l) A copy of each policy, endorsement and application form it then proposes to issue or use.
Such declaration shall be acknowledged by the attorney in the manner required for the acknowledgment of deeds.
History:
[41-2908, added 1961, ch. 330, sec. 635, p. 645; am. 1995, ch. 96, sec. 6, p. 277; am. 2006, ch. 199, sec. 1, p. 615.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2909 - CERTIFICATE OF AUTHORITY.

41-2909. CERTIFICATE OF AUTHORITY. (1) The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer.
(2) The director may refuse, suspend or revoke the certificate of authority, in addition to other grounds therefor, for failure of the attorney to comply with any provision of this code.
History:
[41-2909, added 1961, ch. 330, sec. 636, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2910 - POWER OF ATTORNEY OR JOINT POWERS ENTITY.

41-2910. POWER OF ATTORNEY OR JOINT POWERS ENTITY. (1) The rights and powers of the attorney or designated joint powers entity of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers.
(2) The power of attorney must set forth:
(a) The powers of the attorney;
(b) That the attorney is empowered to accept service of process on behalf of the insurer and to authorize the director to receive service of process in actions against the insurer upon contracts exchanged;
(c) The general services to be performed by the attorney or joint powers entity;
(d) The maximum amount to be deducted from advance premiums or deposits to be paid to the attorney and the general items of expense in addition to losses, to be paid by the insurer; and
(e) Except as to nonassessable policies, a provision for a contingent several liability of each subscriber in a specified amount which amount shall be not less than one (1) nor more than ten (10) times the premium or premium deposit stated in the policy.
(3) The power of attorney or joint exercise of powers agreement may:
(a) Provide for the right of substitution of the attorney and revocation of the power of attorney and rights thereunder;
(b) Impose such restrictions upon the exercise of the power as are agreed upon by the subscribers;
(c) Provide for the exercise of any right reserved to the subscribers directly or through their advisory committee; and
(d) Contain other lawful provisions deemed advisable.
(4) The terms of any power of attorney or agreement collateral thereto shall be reasonable and equitable, and no such power or agreement shall be used or be effective in this state until approved by the director.
History:
[41-2910, added 1961, ch. 330, sec. 637, p. 645; am. 1996, ch. 245, sec. 5, p. 778.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2911 - MODIFICATIONS.

41-2911. MODIFICATIONS. Modifications of the terms of the subscribers’ agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers’ advisory committee. No such modification shall be effective retroactively, nor as to any insurance contract issued prior thereto.
History:
[41-2911, added 1961, ch. 330, sec. 638, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2912 - ATTORNEY’S BOND.

41-2912. ATTORNEY’S BOND. (1) Concurrently with the filing of the declaration provided for in section 41-2908, the attorney of a domestic reciprocal insurer shall file with the director a bond in favor of the state of Idaho for the benefit of all persons damaged as a result of breach by the attorney of the conditions of his bond as set forth in subsection (2) hereof. The bond shall be executed by the attorney and by an authorized corporate surety, and shall be subject to the director’s approval.
(2) The bond shall be in the penal sum of twenty-five thousand dollars ($25,000), aggregate in form, conditioned that the attorney will faithfully account for all monies and other property of the insurer coming into his hands, and that he will not withdraw or appropriate to his own use from the funds of the insurer, any moneys or property to which he is not entitled under the power of attorney.
(3) The bond shall provide that it is not subject to cancellation unless thirty (30) days’ advance notice in writing of cancellation is given both the attorney and the director.
History:
[41-2912, added 1961, ch. 330, sec. 639, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2913 - DEPOSIT IN LIEU OF BOND.

41-2913. DEPOSIT IN LIEU OF BOND. In lieu of the bond required under section 41-2912, the attorney may maintain on deposit through the office of the director, a like amount in cash or in value of securities eligible for deposit under section 41-803 of this code and subject to the same conditions as the bond.
History:
[41-2913, added 1961, ch. 330, sec. 640, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2914 - ACTION ON BOND.

41-2914. ACTION ON BOND. Action on the attorney’s bond or to recover against any such deposit made in lieu thereof may be brought at any time by one or more subscribers suffering loss through a violation of its conditions, or by a receiver or liquidator of the insurer. Amounts recovered on the bond shall be deposited in and become part of the insurer’s funds. The total aggregate liability of the surety shall be limited to the amount of the penalty of such bond.
History:
[41-2914, added 1961, ch. 330, sec. 641, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2915 - SERVICE OF PROCESS — JUDGMENT.

41-2915. SERVICE OF PROCESS — JUDGMENT. (1) Legal process shall be served upon a domestic reciprocal insurer by serving the insurer’s attorney at his principal offices or by serving the director as the insurer’s process agent under sections 41-333 and 41-334.
(2) Any judgment based upon legal process so served shall be binding upon each of the insurer’s subscribers as their respective interests may appear, but in an amount not exceeding their respective contingent liabilities, if any, the same as though personal service of process was had upon each such subscriber. When all participants in a reciprocal insurer are political subdivisions of the state of Idaho, no contingent liability shall attach to individual subscribers by virtue of such participation.
History:
[41-2915, added 1961, ch. 330, sec. 642, p. 645; am. 1996, ch. 245, sec. 6, p. 778.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2916 - CONTRIBUTIONS TO INSURER.

41-2916. CONTRIBUTIONS TO INSURER. The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms such funds as it may require from time to time in its operations. Sums so advanced shall not be treated as a liability of the insurer, and, except upon liquidation of the insurer, shall not be withdrawn or repaid except out of the insurer’s realized earned surplus in excess of its minimum required surplus. No such withdrawal or repayment shall be made without the advance approval of the director. This section does not apply to bank loans, or to other loans made upon security.
History:
[41-2916, added 1961, ch. 330, sec. 643, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2917 - ANNUAL STATEMENT.

41-2917. ANNUAL STATEMENT. (1) The annual statement of a reciprocal insurer shall be made and filed by its attorney or the administrator of a joint powers entity.
(2) The statement shall be supplemented by such information as may be required by the director relative to the affairs and transactions of the attorney or joint powers entity insofar as they relate to the reciprocal insurer.
History:
[41-2917, added 1961, ch. 330, sec. 644, p. 645; am. 1996, ch. 245, sec. 7, p. 779.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 29 - RECIPROCAL INSURERS › Section 41-2918 - FINANCIAL CONDITION — METHOD OF DETERMINING.

41-2918. FINANCIAL CONDITION — METHOD OF DETERMINING. In determining the financial condition of a reciprocal insurer the director shall apply the following rules:
(1) He shall charge as liabilities the same reserves as are required of incorporated insurers issuing nonassessable policies on a reserve basis.
(2) The surplus deposits of subscribers shall be allowed as assets, except that any premium deposits delinquent for ninety (90) days shall first be charged against such surplus deposit.
(3) The surplus deposits of subscribers shall not be charged as a liability.
(4) All premium deposits delinquent less than ninety (90) days shall be allowed as assets.
(5) An assessment levied upon subscribers, and not collected, shall not be allowed as an asset.
(6) The contingent liability of subscribers shall not be allowed as an asset.
(7) The computation of reserves shall be based upon premium deposits other than membership fees and without any deduction for expenses and the compensation of the attorney.
History:
[41-2918, added 1961, ch. 330, sec. 645, p. 645; am. 1979, ch. 318, sec. 3, p. 855; am. 1995, ch. 96, sec. 7, p. 278; am. 2005, ch. 72, sec. 1, p. 248.]