reglab/statecodes huggingface dataset:
2023 Idaho Code › Title 41 - INSURANCE › Chapter 27 - TITLE INSURANCE › Section 41-2714 - CLOSING OR SETTLEMENT PROTECTION.

41-2714. CLOSING OR SETTLEMENT PROTECTION. (1) A title insurer may issue closing or settlement protection to a buyer, borrower or lender that is a party to a transaction in which a title insurance policy will be issued. The closing or settlement protection shall be on a form filed with the department in accordance with section 41-2705, Idaho Code.
(2) The closing or settlement protection shall be limited to indemnifying the buyer, borrower or lender insured against a loss due to either or both of the following actions of a licensed and authorized title insurance agent and is deemed for the purpose of this section to be within the business of title insurance as set forth in section 41-2704, Idaho Code:
(a) Theft or misappropriation of closing or settlement funds in connection with a transaction in which a title insurance policy or title insurance policies will be issued by or on behalf of the title insurer issuing the closing or settlement protection.
(b) Failure to comply with the written closing instructions when agreed to by the title agent or title insurer, but only to the extent that the failure to follow the instructions relates to the status of the title to that interest in land or the validity, enforceability and priority of the lien of the mortgage on that interest in land.
(3) A rate must be charged and the rate charged by a title insurer for each transaction that includes closing protection coverage shall not be subject to any agreement requiring a division of rates or premiums collected on behalf of the title insurer. The issuance of a closing or settlement protection to a buyer, borrower or lender that is a party to a transaction in which a title insurance policy will be issued shall be considered to be one (1) transaction for which a single rate is charged and shall not result in a separate charge to each party. The rate shall:
(a) Be filed with the department in accordance with sections 41-2706 and 41-2707, Idaho Code;
(b) Be the only rate charged for closing protection; and
(c) Not exceed twenty-five dollars ($25.00).
(4) A title insurer may not provide any other protection that purports to indemnify against improper acts or omissions of a person with regard to closing or settlement services.
(5) Except as otherwise provided for in closing or settlement protection, a buyer, borrower, lender, or title insurer retains all their respective rights and remedies in connection with losses suffered due to theft or misappropriation of closing or settlement funds or the failure to comply with written closing instructions. Nothing in this section shall be construed to require a buyer, borrower or lender to obtain closing or settlement protection. A failure to obtain closing or settlement protection shall not be construed as an error, omission or other breach of duty of a buyer, borrower or lender.
History:
[41-2714, added 2015, ch. 275, sec. 3, p. 1133.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2801 - SCOPE OF CHAPTER.

41-2801. SCOPE OF CHAPTER. This chapter shall apply only to domestic stock insurers and domestic mutual insurers, except that sections 41-2849 (nonassessable policies, mutual insurers), 41-2872 (health care provider contracts) and 41-2873, Idaho Code, (best price — most favored nations clause prohibited) shall also apply as to foreign insurers.
History:
[41-2801, added 1961, ch. 330, sec. 569, p. 645; am. 1995, ch. 289, sec. 14, p. 982; am. 2003, ch. 103, sec. 1, p. 323; am. 2007, ch. 282, sec. 1, p. 813.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2802 - “STOCK” INSURER — “MUTUAL” INSURER — DEFINITIONS.

41-2802. "STOCK" INSURER — "MUTUAL" INSURER — DEFINITIONS. A "stock" insurer is as defined in section 41-301. A "mutual" insurer is as defined in section 41-302.
History:
[41-2802, added 1961, ch. 330, sec. 570, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2803 - APPLICABILITY OF GENERAL CORPORATION STATUTES.

41-2803. APPLICABILITY OF GENERAL CORPORATION STATUTES. (1) The applicable statutes of this state relating to the powers and procedures of domestic private corporations formed for profit shall apply to domestic stock insurers and to domestic mutual insurers, except where in conflict with the express provisions of this code and the reasonable implications of such provisions.
(2) Domestic stock insurers and domestic mutual insurers are exempt from the provisions of section 30-21-213, Idaho Code.
History:
[41-2803, added 1961, ch. 330, sec. 571, p. 645; am. 1981, ch. 50, sec. 1, p. 77; am. 1999, ch. 65, sec. 6, p. 171; am. 2017, ch. 58, sec. 24, p. 118.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2804 - INCORPORATION.

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.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2805 - FILING OF ARTICLES.

41-2805. FILING OF ARTICLES. (1) The incorporators shall submit the executed articles of incorporation of a proposed stock or mutual insurer in triplicate to the director for review. If the director finds the articles to be in compliance with this code he shall deliver an original thereof to the attorney general for examination. After examining the articles, the attorney general shall return them to the director accompanied by his opinion certifying as to whether or not he has found the articles to be in accordance with the laws of this state and not inconsistent with the constitution of this state. If the attorney general has found the articles to be in accordance with law, the director shall, upon payment of the fees prescribed by law therefor, and except as provided in subsection (2) of this section, certify his approval upon each of the three (3) originals of the articles, file one (1) of such originals in his office and deliver two (2) of such originals to the incorporators, one (1) to be retained by the corporation as part of its corporate records, and one (1) to be filed with the secretary of state.
(2) If upon reviewing or examining the articles of incorporation as hereinabove provided, the director or the attorney general finds that the articles do not comply with this code or are not in accordance with the laws of this state, or are inconsistent with the constitution of this state, as the case may be, the director shall refuse to approve the articles and shall return all originals of the articles to the incorporators accompanied by a written statement of the defects in the articles or reasons upon which his refusal is based.
(3) The secretary of state shall not permit the filing with him or in his office of any such articles of incorporation unless the same bear the director’s approval endorsed thereon as hereinabove provided. The director’s approval, when so endorsed, shall be deemed to relate only to the form of the articles of incorporation, and shall not be deemed to constitute an approval or commitment by the director as to any other aspect or operation of the proposed insurer.
(4) The director and the attorney general shall perform all duties required of them under this section within a reasonable time after the articles of incorporation have been submitted to the director as in subsection (1) above provided.
History:
[41-2805, added 1961, ch. 330, sec. 573, p. 645; am. 1980, ch. 197, sec. 30, p. 454; am. 2001, ch. 85, sec. 7, p. 216; am. 2003, ch. 103, sec. 2, p. 323.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2809 - INVESTIGATION OF PROPOSED ORGANIZATION.

41-2809. INVESTIGATION OF PROPOSED ORGANIZATION. Upon application of a new insurer for a certificate of authority, the director of the department of insurance shall promptly make an investigation of:
(1) The character, reputation, financial standing and purposes of the organizers, incorporators, and subscribers organizing the proposed insurer or organization;
(2) The character, financial responsibility, insurance experience, and business qualifications of its proposed officers and directors; and
(3) Such other aspects of the proposed insurer or financing as he may deem advisable.
History:
[41-2809, added 1961, ch. 330, sec. 577, p. 645; am. 2003, ch. 103, sec. 4, p. 324.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2818 - QUALIFICATION FOR INITIAL CERTIFICATE OF AUTHORITY — STOCK INSURERS.

41-2818. QUALIFICATION FOR INITIAL CERTIFICATE OF AUTHORITY — STOCK INSURERS. A newly formed domestic stock insurer shall be entitled to a certificate of authority only when its entire authorized capital stock has been subscribed for and paid for in full, and it has fulfilled the other requirements for the certificate of authority as applicable under this code to the kind or kinds of insurance proposed to be transacted. The director shall not issue a certificate of authority to any such insurer which does not meet the requirements of this section.
History:
[41-2818, added 1961, ch. 330, sec. 586, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2820 - INITIAL QUALIFICATIONS — DOMESTIC MUTUALS.

41-2820. INITIAL QUALIFICATIONS — DOMESTIC MUTUALS. When newly organized, a domestic mutual insurer may be authorized to transact any one of the kinds of insurance defined in sections 41-502 through 41-506, Idaho Code, if it has otherwise complied with the provisions of title 41, Idaho Code, and possesses and maintains surplus funds as provided in section 41-313 or 41-3102A, Idaho Code.
History:
[41-2820, added 1961, ch. 330, sec. 588, p. 645; am. 1995, ch. 96, sec. 2, p. 274.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2822 - APPLICATIONS FOR INSURANCE IN FORMATION OF MUTUAL INSURER.

41-2822. APPLICATIONS FOR INSURANCE IN FORMATION OF MUTUAL INSURER. (1) Upon receipt of the director’s approval of the bond or deposit as provided in section 41-2821, Idaho Code, the proposed domestic mutual insurer may commence solicitation of such requisite applications for insurance policies as it may accept, and may receive deposits of premiums thereon.
(2) All such applications shall be in writing signed by the applicant, covering subjects of insurance resident, located or to be performed in this state.
(3) All such applications shall provide that:
(a) Issuance of the policy is contingent upon the insurer qualifying for and receiving a certificate of authority;
(b) No insurance is in effect unless and until the certificate of authority has been issued; and
(c) The prepaid premium or deposit, and membership or policy fee, if any, shall be refunded in full to the applicant if organization is not completed and the certificate of authority is not issued and received by the insurer before a specified reasonable date, which date shall be not later than one (1) year after the date of the certificate of incorporation.
(4) All qualifying premiums collected shall be in cash.
(5) Solicitation for such qualifying applications for insurance shall be by licensed agents of the corporation, and the director shall, upon the corporation’s application therefor, issue temporary agent’s licenses expiring on the date specified pursuant to subdivision (c) above to individuals qualified as for a resident agent’s license except as to the taking or passing of an examination. The director may suspend or revoke any such license for any of the causes and pursuant to the same procedures as are applicable to suspension or revocation of licenses of agents in general under chapter 10, title 41, Idaho Code.
History:
[41-2822, added 1961, ch. 330, sec. 590, p. 645; am. 1972, ch. 164, sec. 5, p. 376.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2823 - FORMATION OF MUTUALS — TRUST DEPOSIT OF PREMIUMS — ISSUANCE OF POLICIES.

41-2823. FORMATION OF MUTUALS — TRUST DEPOSIT OF PREMIUMS — ISSUANCE OF POLICIES. (1) All sums collected by a domestic mutual corporation as premiums or fees on qualifying applications for insurance therein shall be deposited in trust in a bank or trust company in this state under a written trust agreement approved by the director and consistent with this section and with section 41-2822(3)(c). The corporation shall file an executed copy of such trust agreement with the director.
(2) Upon issuance to the corporation of a certificate of authority as an insurer for the kind of insurance for which such applications were solicited, all funds so held in trust shall become the funds of the insurer, and the insurer shall thereafter in due course issue and deliver its policies for which premiums had been paid and accepted. The insurance provided by such policies shall be effective as of the date of the certificate of authority or thereafter as provided by the respective policies.
History:
[41-2823, added 1961, ch. 330, sec. 591, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2824 - FORMATION OF MUTUALS — FAILURE TO QUALIFY.

41-2824. FORMATION OF MUTUALS — FAILURE TO QUALIFY. If the proposed domestic mutual insurer fails to complete its organization and to secure its original certificate of authority within one (1) year from and after date of its certificate of incorporation, the corporation shall transact no further business, and the director shall return or cause to be returned to the persons entitled thereto all advance deposits or payments of premiums held in trust under section 41-2823.
History:
[41-2824, added 1961, ch. 330, sec. 592, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2825 - ADDITIONAL KINDS OF INSURANCE — MUTUALS.

41-2825. ADDITIONAL KINDS OF INSURANCE — MUTUALS. A domestic mutual insurer, after being authorized to transact one (1) kind of insurance, may be authorized to transact such additional kinds of insurance as are permitted under section 41-312, Idaho Code, while otherwise in compliance with this code and while maintaining unimpaired surplus funds in an amount not less than the amount of paid-in capital stock required of a domestic stock insurer transacting like kinds of insurance, subject further to the additional surplus requirements of section 41-313, Idaho Code, applicable to such a stock insurer.
History:
[41-2825, added 1961, ch. 330, sec. 593, p. 645; am. 1995, ch. 96, sec. 4, p. 276.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2826 - AMENDMENT OF ARTICLES OF INCORPORATION — STOCK INSURERS.

41-2826. AMENDMENT OF ARTICLES OF INCORPORATION — STOCK INSURERS. (1) A domestic stock insurer may amend its articles of incorporation or bylaws for any lawful purpose through procedures prescribed by the statutes of this state as to business corporations in general, and by complying with the requirements of subsection (2) below.
(2) No such amendment to an insurer’s articles of incorporation shall be effectuated until a fully executed copy of the certificate of amendments has been filed with the director, and has been approved by him. The director shall approve the amendment unless found by him not to be in compliance with law. At time of filing, the fee therefor shall be paid in the amount prescribed in section 41-401 (fee schedule).
History:
[41-2826, added 1961, ch. 330, sec. 594, p. 645; am. 2004, ch. 239, sec. 1, p. 702.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2827 - AMENDMENT OF ARTICLES OF INCORPORATION — MUTUAL INSURER.

41-2827. AMENDMENT OF ARTICLES OF INCORPORATION — MUTUAL INSURER. (1) A domestic mutual insurer heretofore or hereafter formed may amend its articles of incorporation for any lawful purpose by affirmative vote of a majority of those of its members present or represented by proxy at any regular annual meeting of its members, or at any special meeting called for the purpose.
(2) Upon adoption of such an amendment the insurer shall make a certificate thereof in triplicate under its corporate seal, setting forth such amendment and the date and manner of the adoption thereof, which certificate shall be executed by the insurer’s president or vice-president and secretary or assistant secretary, and be verified by one of them before a notary public. The insurer shall deliver to the director the triplicate originals of the certificate together with the filing fee specified therefor in section 41-401 (fee schedule). The director shall transmit one (1) original of the proposed amendment to the attorney general for examination. If the director and the attorney general find that the certificate and the amendments comply with law, the director shall endorse his approval upon each of the triplicate originals, place one (1) set on file in his office and return the remaining originals to the insurer. The insurer shall file one (1) of such originals with the secretary of state and retain the third original for its corporate records. The amendment shall be effective when filed with the secretary of state.
(3) If the director or the attorney general find that the proposed amendment or certificate does not comply with law, the director shall not approve the same, and shall return all certificates of amendment to the insurer together with his written statement of reasons for nonapproval. The filing fee shall not be returnable.
History:
[41-2827, added 1961, ch. 330, sec. 595, p. 645; am. 1985, ch. 251, sec. 2, p. 585.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2828 - INSURANCE BUSINESS EXCLUSIVE.

41-2828. INSURANCE BUSINESS EXCLUSIVE. A domestic insurer heretofore or hereafter formed shall not have corporate power to engage, and shall not directly or indirectly engage, in any business other than the insurance business and in business activities reasonably and necessarily incidental to such insurance business; except that a title insurer may also engage in business as an escrow agent.
History:
[41-2828, added 1961, ch. 330, sec. 596, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2829 - MEMBERSHIP IN MUTUALS.

41-2829. MEMBERSHIP IN MUTUALS. (1) Each policyholder of a domestic mutual insurer, other than of a reinsurance contract, is a member of the insurer during the period of the insurance with all rights and obligations of such membership, and the policy shall so specify.
(2) Any person, government or governmental agency, state or political subdivision thereof, public or private corporation, board, association, estate, trustee or fiduciary may be a member of a mutual insurer.
History:
[41-2829, added 1961, ch. 330, sec. 597, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2830 - BY-LAWS OF MUTUAL.

41-2830. BY-LAWS OF MUTUAL. (1) A domestic mutual insurer shall have by-laws for the government of its affairs. The insurer’s initial board of directors shall adopt original by-laws, subject to the approval of the insurer’s members at the next meeting of members.
(2) The by-laws shall contain provisions, consistent with this code, relating to:
(a) The voting rights of members;
(b) Election of directors, and the number, qualifications, terms of office and powers of directors;
(c) Annual and special meetings of members;
(d) The number, designation, election, terms and powers and duties of the respective corporate officers;
(e) Deposit, custody, disbursement and accounting for corporate funds;
(f) Fidelity bonds covering such officers and employees of the insurer handling its funds, to be issued by corporate surety and to be in such amount as may be reasonable; and
(g) Such other matters as may be customary, necessary, or convenient for the management or regulation of corporate affairs.
(3) The insurer shall promptly file with the director a copy, certified by the insurer’s secretary, of its by-laws and of every modification thereof or addition thereto. The director shall disapprove any by-law provision deemed by him, after a hearing held thereon, to be unlawful, unreasonable, inadequate, unfair or detrimental to the proper interests or protection of the insurer’s members or any class thereof. The insurer shall not, after receiving written notice of such disapproval and during the existence thereof, effectuate any by-law provision so disapproved.
History:
[41-2830, added 1961, ch. 330, sec. 598, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2831 - RIGHTS OF MUTUAL MEMBERS IN GENERAL.

41-2831. RIGHTS OF MUTUAL MEMBERS IN GENERAL. (1) A domestic mutual insurer is owned by and shall be operated in the interest of its members.
(2) With respect to the management, records and affairs of the insurer, a member of a mutual insurer shall have the same character of rights and relationship as a stockholder has toward a domestic stock insurer, subject to the provisions of this code.
History:
[41-2831, added 1961, ch. 330, sec. 599, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2832 - MEETINGS OF MEMBERS OF MUTUAL INSURER.

41-2832. MEETINGS OF MEMBERS OF MUTUAL INSURER. (1) Meetings of members of a domestic mutual insurer shall be held in the city or town of its registered office in this state, except as may otherwise be provided in the insurer’s by-laws with the director’s approval.
(2) Each such insurer shall, during the first six (6) months of each calendar year, hold the annual meeting of its members to fill vacancies existing or occurring in the board of directors, receive and consider reports of the insurer’s officers as to its affairs and transact such other business as may properly be brought before it.
(3) Notice of the time and place of the annual meeting of members shall be given by imprinting such notice plainly on the policies issued by the insurer. Any change of the date or place of the annual meeting shall be made only by an annual meeting of members. Notice of such change may be given:
(a) By imprinting such new date or place on all policies which will be in effect as of the date of such changed meeting; or
(b) Unless the director otherwise orders, notice of the new date or place need be given only through policies issued after the date of the annual meeting at which such change was made and in premium notices and renewal certificates issued during the twenty-four (24) months immediately following such meeting.
(4) If more than six (6) months are allowed to elapse after an annual meeting of members is due to be held and without such annual meeting being held, the director shall, upon written request of any officer, director, or member of the insurer, cause written notice of such meeting to be given to the insurer’s members, and the meeting shall be held as soon as reasonably possible thereafter. The director shall attend the meeting.
(5) Subsections (2) and (3) above shall not apply as to a fraternal insurer, as defined in section 41-3101(2), which shall hold the annual meeting of its members and give notice thereof, at such reasonable time and place and in such reasonable manner as may be provided by the insurer’s by-laws with the director’s approval.
History:
[41-2832, added 1961, ch. 330, sec. 600, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2833 - SPECIAL MEETINGS OF MEMBERS OF MUTUAL INSURER.

41-2833. SPECIAL MEETINGS OF MEMBERS OF MUTUAL INSURER. (1) A special meeting of the members of a mutual insurer may be held for any lawful purpose. The meeting shall be called by the corporate secretary pursuant to request of the insurer’s president or of its board of directors, or upon request in writing signed by not less than one-tenth (1/10) of the insurer’s members. The meeting shall be held at such time as the secretary may fix, but not less than ten (10) nor more than thirty (30) days after receipt of the request. If the secretary fails to issue such call, the president, directors, or members making the request may do so.
(2) Not less than ten (10) days’ written notice of the meeting shall be given. Notice addressed to the insurer’s members at their respective post office addresses last of record with the insurer and deposited, postage prepaid, in a letter depository of the United States post office, shall be deemed to have been given when so mailed. In lieu of mailed notice the insurer may publish the notice in such publication or publications as shall afford a majority of its members a reasonable opportunity to have actual advance notice of the meeting. The notice shall state the purposes of the meeting, and no business shall be transacted at the meeting of which notice was not so given.
History:
[41-2833, added 1961, ch. 330, sec. 601, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2834 - VOTING RIGHTS OF MUTUAL MEMBERS.

41-2834. VOTING RIGHTS OF MUTUAL MEMBERS. (1) Each member of a mutual insurer is entitled to one (1) vote upon each matter coming to a vote at meetings of members.
(2) A member shall have the right to vote in person or by his written proxy filed with the corporate secretary not less than five (5) days prior to the meeting. No such proxy shall be made irrevocable, nor be valid beyond the earlier of the following dates:
(a) The date of expiration set forth in the proxy; or
(b) The date of termination of membership; or
(c) Five (5) years from the date of execution of the proxy.
(3) No member’s vote upon any proposal to divest the insurer of its business or assets, or the major part thereof, shall be registered or taken except in person or by proxy newly executed and specific as to the matter to be voted upon.
History:
[41-2834, added 1961, ch. 330, sec. 602, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2836 - NOTICE OF CHANGE OF DIRECTORS OR OFFICERS.

41-2836. NOTICE OF CHANGE OF DIRECTORS OR OFFICERS. An insurer shall promptly give the director written notice of any change of personnel among its directors or principal officers.
History:
[41-2836, added 1961, ch. 330, sec. 604, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2837 - PROHIBITED PECUNIARY INTEREST OF OFFICIALS.

41-2837. PROHIBITED PECUNIARY INTEREST OF OFFICIALS. (1) Any officer or director, or any member of any committee or an employee of a domestic insurer who is charged with the duty of investing or handling the insurer’s funds shall not deposit or invest such funds except in the insurer’s corporate name; shall not borrow the funds of such insurer; shall not be pecuniarily interested in any loan, pledge or deposit, security, investment, sale, purchase, exchange, reinsurance, or other similar transaction or property of such insurer except as a stockholder or member; shall not take or receive to his own use any fee, brokerage, commission, gift, or other consideration for or on account of any such transaction made by or on behalf of such insurer.
(2) No insurer shall guarantee any financial obligation of any of its officers or directors.
(3) This section shall not prohibit such a director or officer, or member of a committee or employee from becoming a policyholder of the insurer and enjoying the usual rights so provided for its policyholders, nor shall it prohibit any such officer, director or member of a committee or employee from participating as beneficiary in any pension trust, deferred compensation plan, profit sharing plan or stock option plan authorized by the insurer and to which he may be eligible, nor shall it prohibit any director or member of a committee from receiving a reasonable fee for lawful services actually rendered to such insurer.
(4) The director may, by regulations from time to time, define and permit additional exceptions to the prohibition contained in subsection (1) of this section solely to enable payment of reasonable compensation to a director who is not otherwise an officer or employee of the insurer, or to a corporation or firm in which a director is interested, for necessary services performed or sales or purchases made to or for the insurer in the ordinary course of the insurer’s business and in the usual private professional or business capacity of such director or such corporation or firm.
History:
[41-2837, added 1961, ch. 330, sec. 605, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2838 - MANAGEMENT AND EXCLUSIVE AGENCY CONTRACTS.

41-2838. MANAGEMENT AND EXCLUSIVE AGENCY CONTRACTS. (1) No domestic insurer shall hereafter make any contract whereby any person is granted or is to enjoy in fact the management of the insurer to the substantial exclusion of its board of directors or to have the controlling or preemptive right to produce substantially all insurance business for the insurer, or, if an officer, director or otherwise part of the insurer’s management, is to receive any commission, bonus or compensation based upon the volume of the insurer’s business or transactions, unless the contract is filed with and approved by the director. The contract shall be deemed approved unless disapproved by the director within twenty (20) days after date of filing, subject to such reasonable extension of time as the director may require by notice given within such twenty (20) days. Any disapproval shall be delivered to the insurer in writing, stating the grounds therefor.
(2) Any such contract, or contract holder, shall provide that any such manager or producer of its business shall within ninety (90) days after expiration of each calendar year furnish the insurer’s board of directors a written statement of amounts received under or on account of the contract and amounts expended thereunder during such calendar year, including the emoluments received therefrom by the respective directors, officers, and other principal management personnel of the manager or producer, and with such classification of items and further detail as the insurer’s board of directors may reasonably require.
(3) The director shall disapprove any such contract if he finds that it:
(a) Subjects the insurer to unreasonable or excessive charges; or
(b) Is to extend for an unreasonable length of time; or
(c) Does not contain fair and adequate standards of performance; or
(d) Contains other inequitable provision or provisions which impair the proper interests of stockholders or policyholders of the insurer.
(4) The director may, after a hearing held thereon, withdraw his approval of any such contract theretofore approved by him, if he finds that the bases of his original approval no longer exist, or that the contract has, in actual operation, shown itself to be subject to disapproval on any of the grounds referred to in subsection (3) above.
(5) This section does not apply as to contracts entered into prior to the effective date of this code, nor to extensions or amendments to such contracts.
History:
[41-2838, added 1961, ch. 330, sec. 606, p. 645; am. 1969, ch. 214, sec. 67, p. 625.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2840 - VOUCHERS FOR EXPENDITURES.

41-2840. VOUCHERS FOR EXPENDITURES. (1) No insurer shall make any disbursement of twenty-five dollars ($25) or more, unless evidenced by a voucher or other document correctly describing the consideration for the payment and supported by a check or receipt endorsed or signed by or on behalf of the person receiving the money.
(2) If the disbursement is for services and reimbursement, the voucher or other document, or some other writing referred to therein, shall describe the services and itemize the expenditures.
(3) If the disbursement is in connection with any matter pending before any legislature or public body or before any public official, the voucher or other document shall also correctly describe the nature of the matter and of the insurer’s interest therein.
History:
[41-2840, added 1961, ch. 330, sec. 608, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2841 - BORROWED SURPLUS.

41-2841. BORROWED SURPLUS. (1) A domestic stock or mutual insurer may borrow money to defray the expenses of its organization, provide it with surplus funds, or for any purpose of its business, upon a written agreement that such money is required to be repaid only out of the insurer’s surplus in excess of that stipulated in such agreement. The agreement may provide for interest at such rate or rates approved by the director, which interest shall or shall not constitute a liability of the insurer as to its funds other than such excess or surplus, as stipulated in the agreement. A commission or promotion expense may be paid in connection with any such loan upon approval of the director.
(2) Money so borrowed, together with the interest thereon if so stipulated in the agreement, shall not form a part of the insurer’s legal liabilities except as to its surplus in excess of the amount thereof stipulated in the agreement, or be the basis of any setoff, but until repaid, financial statements filed or published by the insurer shall show as a footnote thereto the amount thereof then unpaid together with any interest thereon accrued but unpaid.
(3) Any such loan shall be subject to the director’s approval. The insurer shall, in advance of the loan, file with the director a statement of the purpose of the loan and a copy of the proposed loan agreement. The loan and agreement shall be deemed approved unless within fifteen (15) days after the date of such filing the insurer is notified of the director’s disapproval and the reasons therefor. The director shall disapprove any proposed loan or agreement if he finds the loan is unnecessary or excessive for the purpose intended, or that the terms of the loan agreement are not fair and equitable to the parties, and to other similar lenders, if any, to the insurer, or that the information so filed by the insurer is inadequate.
(4) Any such loan to a mutual insurer or substantial portion thereof shall be repaid by the insurer when no longer reasonably necessary for the purpose originally intended. No repayment of such a loan shall be made by a mutual insurer unless approved in advance by the director.
(5) This section shall not apply to loans obtained by the insurer in ordinary course of business from banks and other financial institutions, nor to loans secured by pledge or mortgage of assets.
History:
[41-2841, added 1961, ch. 330, sec. 609, p. 645; am. 1973, ch. 11, sec. 1, p. 24; am. 1982, ch. 171, sec. 1, p. 451; am. 2006, ch. 25, sec. 1, p. 83.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2842 - PARTICIPATING POLICIES.

41-2842. PARTICIPATING POLICIES. (1) As provided in its articles of incorporation, a domestic stock insurer or domestic mutual insurer may issue any or all of its policies with or without participation in profits, savings, unabsorbed portions of premiums, or surplus; may classify policies issued and risks insured on a participating and nonparticipating basis, and, subject to section 41-1933(3), Idaho Code, may determine the right to participate and the extent of participation of any class or classes of policies. Any such classification or determination shall be reasonable.
(2) A life insurer may issue both participating and nonparticipating policies only if the right or absence of right to participate is reasonably related to the premium charged.
(3) No dividend, otherwise earned, shall be made contingent upon the payment of renewal premium on any policy; except, that a participating life or disability insurance policy providing for participation at the end of the first or second policy year may provide that the dividend or dividends will be paid subject to payment of premium for the next ensuing year.
History:
[41-2842, added 1961, ch. 330, sec. 610, p. 645; am. 1972, ch. 70, sec. 1, p. 145.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2843 - DIVIDENDS TO STOCKHOLDERS.

41-2843. DIVIDENDS TO STOCKHOLDERS. A domestic stock insurer shall not pay any dividend to stockholders except out of earned surplus. Prior to payment thereof, the director, in his discretion, may approve the payment of a dividend from other than earned surplus. For purposes of this section, "earned surplus" shall include surplus arising from unrealized capital gains or revaluation of assets.
History:
[41-2843, added 1961, ch. 330, sec. 611, p. 645; am. 1993, ch. 194, sec. 14, p. 506.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2844 - DIVIDENDS TO POLICY HOLDERS.

41-2844. DIVIDENDS TO POLICY HOLDERS. (1) The directors of a domestic mutual insurer may from time to time apportion any pay or credit to its members dividends only out of that part of its surplus funds which represents net realized savings, net realized earnings, and net realized capital gains, all in excess of the surplus required by law to be maintained by the insurer.
(2) A dividend otherwise proper may be payable out of such savings, earnings, and gains even though the insurer’s total surplus is then less than the aggregate of contributed surplus remaining unpaid by the insurer.
(3) A domestic stock insurer may pay dividends to holders of its participating policies out of any available surplus funds.
(4) No dividend shall be paid which is inequitable, or which unfairly discriminates as between classifications of policies or policies within the same classification.
(5) This section is subject to section 41-1933(3) (provision, etc. of dividends out of earnings on nonparticipating policies).
History:
[41-2844, added 1961, ch. 330, sec. 612, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2845 - ILLEGAL DIVIDENDS — PENALTY.

41-2845. ILLEGAL DIVIDENDS — PENALTY. (1) Any director of a domestic stock insurer or domestic mutual insurer who knowingly votes for or concurs in declaration or payment of a dividend to stockholders or policyholders other than as authorized under sections 41-2843 or 41-2844 shall upon conviction thereof be subject to the penalties provided by section 41-117 (general penalty), and shall be jointly and severally liable, together with other such directors likewise voting for or concurring, for any loss thereby sustained by creditors of the insurer to the extent of such dividend.
(2) Any stockholder receiving such an illegal dividend shall be liable in the amount thereof to the insurer.
(3) The director may revoke or suspend the certificate of authority of any insurer which has declared or paid such an illegal dividend.
History:
[41-2845, added 1961, ch. 330, sec. 613, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2846 - CONTINGENT LIABILITY OF MUTUAL MEMBERS.

41-2846. CONTINGENT LIABILITY OF MUTUAL MEMBERS. (1) Except as provided otherwise in section 41-2849 with respect to nonassessable policies, each member of a domestic mutual insurer shall have a contingent liability, pro rata and not one for another, for the discharge of its obligations, which contingent liability shall be in such maximum amount as is specified in the insurer’s articles of incorporation consistent with section 41-2804(3)(a)(v).
(2) Every policy issued by the insurer shall contain a statement of the contingent liability.
(3) Termination of the policy of any such member shall not relieve the member of contingent liability for his proportion of the obligations of the insurer which accrued while the policy was in force as provided in section 41-2847.
(4) Unrealized contingent liability of members does not constitute an asset of the insurer in any determination of its financial condition.
History:
[41-2846, added 1961, ch. 330, sec. 614, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2847 - LEVY OF CONTINGENT LIABILITY.

41-2847. LEVY OF CONTINGENT LIABILITY. (1) If at any time the assets of a domestic mutual insurer are less than its liabilities and the minimum amount of surplus required to be maintained by it under this code for authority to transact the kinds of insurance being transacted, and the deficiency is not cured from other sources, its directors may, if the same is approved by the director, levy an assessment only on its members who held the policies providing for contingent liability at any time within the twelve (12) months next preceding the date the levy was authorized by the board of directors, and such members shall be liable to the insurer for the amount so assessed.
(2) The levy of assessment shall be for such an amount, subject to the director’s approval, as is required to cure such deficiency and to provide a reasonable amount of working funds above such minimum amount of surplus, but such working funds so provided shall not exceed five per cent (5%) of the sum of the insurer’s liabilities and such minimum required surplus as of the date of the levy.
(3) As to the respective policies subject to the levy, the assessment shall be computed upon such reasonable basis as may be approved by the director in writing in advance of the levy.
(4) No member shall have an offset against any assessment for which he is liable, on account of any claim for unearned premium or loss payable.
(5) As to life insurance, any part of such assessment upon a member which remains unpaid following notice of assessment, demand for payment, and lapse of a reasonable waiting period as specified in such notice, may, if approved by the director as being in the best interests of the insurer and its members, be secured by placing a lien upon the cash surrender values and accumulated dividends held by the insurer to the credit of the member.
History:
[41-2847, added 1961, ch. 330, sec. 615, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2848 - ENFORCEMENT OF CONTINGENT LIABILITY.

41-2848. ENFORCEMENT OF CONTINGENT LIABILITY. (1) The insurer shall notify each member of the amount of the assessment to be paid by written notice mailed to the member’s address last of record with the insurer. Failure of the member to receive the notice so mailed, within the time specified therein for the payment of the assessment or at all, shall be no defense in any action to collect the assessment.
(2) If a member fails to pay the assessment within the period specified in the notice, which period shall not be less than twenty (20) days after mailing, the insurer may institute suit to collect the same.
History:
[41-2848, added 1961, ch. 330, sec. 616, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2849 - NONASSESSABLE POLICIES — MUTUAL INSURERS.

41-2849. NONASSESSABLE POLICIES — MUTUAL INSURERS. (1) A domestic mutual insurer while maintaining unimpaired surplus funds not less in amount than the minimum paid-in capital stock required of a domestic stock insurer formed under this code for authority to transact the same kind or kinds of insurance, may, upon receipt of the director’s order so authorizing, extinguish the contingent liability to assessment of its members as to all its policies in force and may omit provisions imposing contingent liability in all policies currently issued.
(2) The director shall not authorize a domestic insurer to extinguish the contingent liability of any of its members or in any of its policies to be issued, unless it qualifies to and does extinguish such liability of all its members and in all such policies for all kinds of insurance transacted by it.
(3) A foreign or alien mutual insurer may issue nonassessable policies to its members in this state pursuant to its charter and the laws of its domicile.
History:
[41-2849, added 1961, ch. 330, sec. 617, p. 645.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 28 - ORGANIZATION AND CORPORATE PROCEDURES OF STOCK AND MUTUAL INSURERS › Section 41-2850 - NONASSESSABLE POLICIES — REVOCATION OF AUTHORITY.

41-2850. NONASSESSABLE POLICIES — REVOCATION OF AUTHORITY. (1) The director shall revoke the authority of a domestic mutual insurer to issue policies without contingent liability if
(a) At any time the insurer’s assets are less than the sum of its liabilities and the surplus required for such authority, or
(b) The insurer, by resolution of its board of directors approved by a majority of its members, requests that the authority be revoked.
(2) During the absence of such authority the insurer shall not issue any policy without providing therein for the contingent liability of the policyholder, nor renew any policy which is then in force without endorsing the same to provide for such contingent liability.
History:
[41-2850, added 1961, ch. 330, sec. 618, p. 645.]