reglab/statecodes huggingface dataset:
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3308 - CONTINUATION OF DELINQUENCY PROCEEDINGS.

41-3308. CONTINUATION OF DELINQUENCY PROCEEDINGS. Every proceeding heretofore commenced under the laws in effect before the enactment of this act shall be deemed to have commenced under this act for the purpose of conducting the proceeding henceforth, except that in the discretion of the director the proceeding may be continued, in whole or in part, as it would have been continued had this act not been enacted.
History:
[41-3308, added 1981, ch. 249, sec. 2, p. 508.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3310 - COURT’S SEIZURE ORDER.

41-3310. COURT’S SEIZURE ORDER. (1) The director may file in the district court of this state a petition alleging, with respect to a domestic insurer:
(a) That any grounds exist that would justify a court order for a formal delinquency proceeding against an insurer under this act;
(b) That the interests of policyholders, creditors, or the public will be endangered by delay; and
(c) The contents of an order deemed necessary by the director.
(2) Upon a filing under subsection (1) of this section, the court may issue forthwith, ex parte and without a hearing, the requested order which shall direct the director to take possession and control of all or a part of the property, books, accounts, documents, and other records of an insurer, and of the premises occupied by it for transaction of its business, and until further order of the court enjoin the insurer and its officers, managers, agents, and employees from disposition of its property and from transaction of its business except with the written consent of the director.
(3) The court shall specify in the order what its duration shall be, which shall be such time as the court deems necessary for the director to ascertain the condition of the insurer. On motion of either party or on its own motion, the court may from time to time hold such hearings as it deems desirable after such notice as it deems appropriate, and may extend, shorten, or modify the terms of the seizure order. The court shall vacate the seizure order if the director fails to commence a formal proceeding under this act after having had a reasonable opportunity to do so. An order of the court pursuant to a formal proceeding under this act shall ipso facto vacate the seizure order.
(4) Entry of a seizure order under the provisions of this section shall not constitute an anticipatory breach of any contract of the insurer.
(5) An insurer subject to an ex parte order under the provisions of this section may petition the court at any time after the issuance of such order for a hearing and review of the order. The court shall hold such a hearing and review not more than fifteen (15) days after the request. A hearing under the provisions of this subsection may be held privately in chambers and it shall be so held if the insurer proceeded against so requests.
(6) If, at any time after the issuance of such an order, it appears to the court that any person whose interest is or will be substantially affected by the order did not appear at the hearing and has not been served, the court may order that notice be given. An order that notice be given shall not stay the effect of any order previously issued by the court.
History:
[41-3310, added 1981, ch. 249, sec. 2, p. 510.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3311 - HEARINGS.

41-3311. HEARINGS. In all proceedings and judicial reviews thereof under sections 41-3309 and 41-3310, Idaho Code, all records of the insurer, other documents, and all insurance department files and court records and papers, so far as they pertain to or are a part of the record of the proceedings, shall be subject to disclosure according to chapter 1, title 74, Idaho Code.
History:
[41-3311, added 1981, ch. 249, sec. 2, p. 511; am. 1990, ch. 213, sec. 58, p. 526; am. 2015, ch. 141, sec. 112, p. 462.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3313 - REHABILITATION ORDERS.

41-3313. REHABILITATION ORDERS. (1) An order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall appoint the director and his successors in office the rehabilitator, and shall direct the rehabilitator forthwith to take possession of the assets of the insurer, and to administer them under the general supervision of the court. The filing or recording of the order with the clerk of the district court or recorder of deeds of the county in which the principal business of the company is conducted, or the county in which its principal office or place of business is located, shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that recorder of deeds would have imparted. The order to rehabilitate the insurer shall by operation of law vest title to all assets of the insurer in the rehabilitator.
(2) Any order issued under this section shall require accounting to the court by the rehabilitator. Accountings shall be at such intervals as the court specifies in its order.
(3) Entry of an order of rehabilitation shall not constitute an anticipatory breach of any contracts of the insurer.
History:
[41-3313, added 1981, ch. 249, sec. 2, p. 513.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3315 - ACTIONS BY AND AGAINST REHABILITATOR.

41-3315. ACTIONS BY AND AGAINST REHABILITATOR. (1) Any court in this state before which any action or proceeding in which the insurer is a party or is obligated to defend a party is pending when a rehabilitation order against the insurer is entered shall stay the action or proceeding for ninety (90) days and such additional time as is necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take such action respecting the pending litigation as he deems necessary in the interests of justice and for the protection of creditors, policyholders, and the public. The rehabilitator shall immediately consider all litigation pending outside this state and shall petition the courts having jurisdiction over that litigation for stays whenever necessary to protect the estate of the insurer.
(2) No statute of limitations or defense of laches shall run with respect to any action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer and the order granting or denying that petition. Any action by or against the insurer that might have been commenced when the petition was filed may be commenced for at least sixty (60) days after the order of rehabilitation is entered or the petition is denied.
(3) Any guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in any court proceeding concerning the rehabilitation of a life or health insurer if such association is or may become liable to act as a result of the rehabilitation.
History:
[41-3315, added 1981, ch. 249, sec. 2, p. 514.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3316 - TERMINATION OF REHABILITATION.

41-3316. TERMINATION OF REHABILITATION. (1) Whenever the director believes further attempts to rehabilitate an insurer would substantially increase the risk of loss to creditors, policyholders, or the public, or would be futile, the director may petition the district court for an order of liquidation. A petition under the provisions of this subsection shall have the same effect as a petition under the provisions of section 41-3317, Idaho Code. The district court shall permit the directors of the insurer to take such actions as are reasonably necessary to defend against the petition and may order payment from the estate of the insurer of such costs and other expenses of defense as justice may require. 2
(2) The rehabilitator may at any time petition the district court for an order terminating rehabilitation of an insurer. The court shall also permit the directors of the insurer to petition the court for an order terminating rehabilitation of the insurer and may order payment from the estate of the insurer of such costs and other expenses of such petition as justice may require. If the district court finds that rehabilitation has been accomplished and that grounds for rehabilitation under the provisions of section 41-3312, Idaho Code, no longer exist, it shall order that the insurer be restored to possession of its property and the control of its business. The district court may also make that finding and issue that order at any time upon its own motion.
History:
[41-3316, added 1981, ch. 249, sec. 2, p. 515.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3317 - GROUNDS FOR LIQUIDATION.

41-3317. GROUNDS FOR LIQUIDATION. The director may petition the district court for an order directing him to liquidate a domestic insurer or an alien insurer domiciled in this state on the basis:
(1) Of any ground for an order of rehabilitation as specified in section 41-3312, Idaho Code, whether or not there has been a prior order directing the rehabilitation of the insurer;
(2) That the insurer is insolvent; or
(3) That the insurer is in such condition that the further transaction of business would be hazardous, financially or otherwise, to its policyholders, its creditors, or the public.
History:
[41-3317, added 1981, ch. 249, sec. 2, p. 515.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3318 - LIQUIDATION ORDERS.

41-3318. LIQUIDATION ORDERS. (1) An order to liquidate the business of a domestic insurer shall appoint the director and his successors in office liquidator and shall direct the liquidator forthwith to take possession of the assets of the insurer and to administer them under the general supervision of the court. The liquidator shall be vested by operation of law with the title to all of the property, contracts, and rights of action and all of the books and records of the insurer ordered liquidated, wherever located, as of the entry of the final order of liquidation. The filing or recording of the order with the clerk of the district court and the recorder of deeds of the county in which its principal office or place of business is located, or, in the case of real estate, with the recorder of deeds of the county where the property is located, shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that recorder of deeds would have imparted.
(2) Upon issuance of the order, the rights and liabilities of any such insurer and of its creditors, policyholders, shareholders, members, and all other persons interested in its estate shall become fixed as of the date of entry of the order of liquidation, except as provided in sections 41-3319 and 41-3337, Idaho Code.
(3) An order to liquidate the business of an alien insurer domiciled in this state shall be in the same terms and have the same legal effect as an order to liquidate a domestic insurer, except that the assets and the business in the United States shall be the only assets and business included therein.
(4) At the time of petitioning for an order of liquidation, or at any time thereafter, the director, after making appropriate findings of an insurer’s insolvency, may petition the court for a judicial declaration of such insolvency. After providing such notice and hearing as it deems proper the court may make the declaration.
(5) Any order issued under the provisions of this section shall require accounting to the court by the liquidator. Accountings shall be at such intervals as the court specifies in its order.
History:
[41-3318, added 1981, ch. 249, sec. 2, p. 515.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3319 - CONTINUANCE OF COVERAGE.

41-3319. CONTINUANCE OF COVERAGE. (1) All policies, other than life or health insurance or annuities, in effect at the time of issuance of an order of liquidation shall continue in force only for the lesser of:
(a) A period of thirty (30) days from the date of entry of the liquidation orders;
(b) The expiration of the policy coverage;
(c) The date when the insured has replaced the insurance coverage with equivalent insurance in another insurer or otherwise terminated the policy; or
(d) The liquidator has effected a transfer of the policy obligation pursuant to section 41-3321(1)(h), Idaho Code.
(2) An order or liquidation under the provisions of section 41-3318, Idaho Code, shall terminate coverages at the time specified in subsection (1) of this section for purposes of any other statute.
(3) Policies of life or health insurance or annuities shall continue in force for such period and under such terms as are provided for by any applicable guaranty association or foreign guaranty association.
(4) Policies of life or health insurance or annuities or any period or coverage of such policies not covered by a guaranty association or foreign guaranty association shall terminate under the provisions of subsections (1) and (2) hereof.
History:
[41-3319, added 1981, ch. 249, sec. 2, p. 516.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3320 - INSURER — DISSOLUTION.

41-3320. INSURER — DISSOLUTION. The director may petition for an order dissolving the corporate existence of a domestic insurer or the United States branch of an alien insurer domiciled in this state at the time he applies for a liquidation order. The court shall order dissolution of the corporation upon petition by the director upon or after the granting of a liquidation order. If the dissolution has not previously been ordered, it shall be effected by operation of law upon the discharge of the liquidator if the insurer is insolvent, but may be ordered by the court upon the discharge of the liquidator if the insurer is under a liquidation order for some other reason.
History:
[41-3320, added 1981, ch. 249, sec. 2, p. 516.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3322 - NOTICE TO CREDITORS AND OTHERS.

41-3322. NOTICE TO CREDITORS AND OTHERS. (1) Unless the court otherwise directs, the liquidator shall give or cause to be given notice of the liquidation order as soon as possible:
(a) By first class mail and either by telegram or telephone to the insurance director of each jurisdiction in which the insurer is doing business;
(b) By first class mail to any guaranty association or foreign guaranty association which is or may become obligated as a result of the liquidation;
(c) By first class mail to all insurance agents of the insurer;
(d) By first class mail to all persons known or reasonably expected to have claims against the insurer, including, but not limited to, all policyholders, at their last known address as indicated by the records of the insurer and the director of the department of finance and the secretary of state; and
(e) By publication in a newspaper of general circulation in the county in which the insurer has its principal place of business and in such other locations as the liquidator deems appropriate.
(2) Notice to potential claimants under the provisions of subsection (1) of this section shall require claimants to file their claims with the liquidator together with proper proofs thereof under the provisions of section 41-3336, Idaho Code, on or before a date the liquidator shall specify in the notice. The liquidator need not require persons claiming cash surrender values or other investment values in life insurance and annuities to file a claim. All claimants shall have a duty to keep the liquidator informed of any changes of address.
(3) If notice is given in accordance with the provisions of this section, the distribution of assets of the insurer under this chapter shall be conclusive with respect to all claimants, whether or not they received notice.
History:
[41-3322, added 1981, ch. 249, sec. 2, p. 519.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3323 - DUTIES OF AGENTS.

41-3323. DUTIES OF AGENTS. (1) Every person who receives notice in the form prescribed in section 41-3322, Idaho Code, that an insurer which he represents as an agent is the subject of a liquidation order, shall within fifteen (15) days of such notice give notice of the liquidation order. The notice shall be sent by first class mail to the last address contained in the agent’s records to each policyholder or other person named in any policy issued through the agent by the insurer, if he has a record of the address of the policyholder or other person. A policy shall be deemed issued through an agent if the agent has a property interest in the expiration of the policy, or if the agent has had in his possession a copy of the declarations of the policy at any time during the life of the policy, except where the ownership of the expiration of the policy has been transferred to another. The written notice shall include the name and address of the insurer, the name and address of the agent, identification of the policy impaired and the nature of the impairment including termination of coverage, as described in section 41-3319, Idaho Code. Notice by a general agent satisfies the notice requirement for any agents under contract to him. Each agent obligated to give notice under the provisions of this section shall file a report of compliance with the liquidator.
(2) Any agent failing to give notice or file a report of compliance as required in subsection (1) of this section may be subject to payment of a penalty of not more than one thousand dollars ($1,000) and may have his license suspended, said penalty to be imposed after a hearing held by the director.
(3) The liquidator may waive the duties imposed by this section if he determines that other notice to the policyholders of the insurer under liquidation is adequate.
History:
[41-3323, added 1981, ch. 249, sec. 2, p. 519.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3324 - ACTIONS BY AND AGAINST LIQUIDATOR.

41-3324. ACTIONS BY AND AGAINST LIQUIDATOR. (1) Upon issuance of an order appointing a liquidator of a domestic insurer or of an alien insurer domiciled in this state, no action at law or equity shall be brought against the insurer or liquidator, whether in this state or elsewhere, nor shall any such existing actions be maintained or further presented after issuance of such order. The courts of this state shall give full faith and credit to injunctions against the liquidator or the company or the continuation of existing actions against the liquidator or the company, when such injunctions are included in an order to liquidate an insurer issued pursuant to corresponding provisions in other states. Whenever in the liquidator’s judgment, protection of the estate of the insurer necessitates intervention in an action against the insurer that is pending outside this state, he may intervene in the action. The liquidator may defend any action in which he intervenes under the provisions of this section at the expense of the estate of the insurer.
(2) The liquidator may, upon or after an order for liquidation, within two (2) years or such time in addition to two (2) years as applicable law may permit, institute an action or proceeding on behalf of the estate of the insurer upon any cause of action against which the period of limitation fixed by applicable law has not expired at the time of the filing of the petition upon which such order is entered. Where, by any agreement, a period of limitation is fixed for instituting a suit or proceeding upon any claim, or for filing any claim, proof of claim, proof of loss, demand, notice, or the like, or where in any proceeding, judicial or otherwise, a period of limitation is fixed, either in the proceeding or by applicable law, for taking any action, filing any claim or pleading, or doing any act, and where in any such case the period had not expired at the date of the filing of the petition, the liquidator may, for the benefit of the estate, take any such action or do any such act, required of or permitted to the insurer, within a period of one hundred eighty (180) days subsequent to the entry of an order for liquidation, or within such further period as is shown to the satisfaction of the court not to be unfairly prejudicial to the other party.
(3) No statute of limitations or defense of laches shall run with respect to any action against an insurer between the filing of a petition for liquidation against an insurer and the denial of the petition. Any action against the insurer that might have been commenced when the petition was filed may be commenced for at least sixty (60) days after the petition is denied.
(4) Any guaranty association or foreign guaranty association shall have standing to appear in any court proceeding concerning the liquidation of an insurer if such association is or may become liable to act as a result of the liquidation.
History:
[41-3324, added 1981, ch. 249, sec. 2, p. 520.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3325 - COLLECTION AND LIST OF ASSETS.

41-3325. COLLECTION AND LIST OF ASSETS. (1) As soon as practicable after the liquidation order but not later than one hundred twenty (120) days thereafter, the liquidator shall prepare in duplicate a list of the insurer’s assets. The list shall be amended or supplemented from time to time as the liquidator may determine. One (1) copy shall be filed in the office of the clerk of the district court and one (1) copy shall be retained for the liquidator’s files. All amendments and supplements shall be similarly filed.
(2) The liquidator shall reduce the assets to a degree of liquidity that is consistent with the effective execution of the liquidation.
(3) A submission to the court for disbursement of assets in accordance with section 41-3334, Idaho Code, fulfills the requirements of subsection (1) of this section.
History:
[41-3325, added 1981, ch. 249, sec. 2, p. 521.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3326 - FRAUDULENT TRANSFERS PRIOR TO PETITION.

41-3326. FRAUDULENT TRANSFERS PRIOR TO PETITION. (1) Every transfer made or suffered and every obligation incurred by an insurer within one (1) year prior to the filing of a successful petition for rehabilitation or liquidation under this act is fraudulent as to then existing and future creditors if made or incurred without fair consideration, or with actual intent to hinder, delay, or defraud either existing or future creditors. A transfer made or an obligation incurred by an insurer ordered to be rehabilitated or liquidated under this act, which is fraudulent under the provisions of this section, may be avoided by the receiver, except as to a person who in good faith is a purchaser, lienor, or obligee for a present fair equivalent value, and except that any purchaser, lienor, or obligee, who in good faith has given a consideration less than fair for such transfer, lien, or obligation, may retain the property, lien or obligation as security for repayment. The court may, on due notice, order any such transfer or obligation to be preserved for the benefit of the estate, and in that event, the receiver shall succeed to and may enforce the rights of the purchaser, lienor, or obligee.
(2) (a) A transfer of property other than real property shall be deemed to be made or suffered when it becomes so far perfected that no subsequent lien obtainable by legal or equitable proceedings on a simple contract could become superior to the rights of the transferee under the provisions of section 41-3328(3), Idaho Code.
(b) A transfer of real property shall be deemed to be made or suffered when it becomes so far perfected that no subsequent bona fide purchaser from the insurer could obtain rights superior to the rights of the transferee.
(c) A transfer which creates an equitable lien shall not be deemed to be perfected if there are available means by which a legal lien could be created.
(d) Any transfer not perfected prior to the filing of a petition for liquidation shall be deemed to be made immediately before the filing of the successful petition.
(e) The provisions of this subsection apply whether or not there are or were creditors who might have obtained any liens or persons who might have become bona fide purchasers.
(3) Any transaction of the insurer with a reinsurer shall be deemed fraudulent and may be avoided by the receiver under subsection (1) of this section if:
(a) The transaction consists of the termination, adjustment, or settlement of a reinsurance contract in which the reinsurer is released from any part of its duty to pay the originally specified share of losses that had occurred prior to the time of the transaction, unless the reinsurer gives a present fair equivalent value for the release; and
(b) Any part of the transaction took place within one (1) year prior to the date of filing of the petition through which the receivership was commenced.
History:
[41-3326, added 1981, ch. 249, sec. 2, p. 521.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3327 - FRAUDULENT TRANSFER AFTER PETITION.

41-3327. FRAUDULENT TRANSFER AFTER PETITION. (1) After a petition for rehabilitation or liquidation has been filed, a transfer of any of the real property of the insurer made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value, or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred. The commencement of a proceeding in rehabilitation or liquidation shall be constructive notice upon the recording of a copy of the petition for or order of rehabilitation or liquidation with the recorder of deeds in the county where any real property in question is located. The exercise by a court of the United States or any state or jurisdiction to authorize or effect a judicial sale of real property of the insurer within any county in any state shall not be impaired by the pendency of such a proceeding unless the copy is recorded in the county prior to the consummation of the judicial sale.
(2) After a petition for rehabilitation or liquidation has been filed and before either the receiver takes possession of the property of the insurer or an order of rehabilitation or liquidation is granted:
(a) A transfer of any of the property of the insurer, other than real property, made to a person acting in good faith shall be valid against the receiver if made for a present fair equivalent value, or, if not made for a present fair equivalent value, then to the extent of the present consideration actually paid therefor, for which amount the transferee shall have a lien on the property so transferred;
(b) A person indebted to the insurer or holding property of the insurer may, if acting in good faith, pay the indebtedness or deliver the property, or any part thereof, to the insurer or upon his order, with the same effect as if the petition were not pending;
(c) A person having actual knowledge of the pending rehabilitation or liquidation shall be deemed not to act in good faith; and
(d) A person asserting the validity of a transfer under this section shall have the burden of proof. Except as elsewhere provided in this section, no transfer by or on behalf of the insurer after the date of the petition for liquidation by any person other than the liquidator shall be valid against the liquidator.
(3) Nothing in this act shall impair the negotiability of currency or negotiable instruments.
History:
[41-3327, added 1981, ch. 249, sec. 2, p. 522.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3329 - CLAIMS OF HOLDERS OF VOID OR VOIDABLE RIGHTS.

41-3329. CLAIMS OF HOLDERS OF VOID OR VOIDABLE RIGHTS. (1) No claims of a creditor who has received or acquired a preference, lien, conveyance, transfer, assignment, or encumbrance, voidable under this act, shall be allowed unless he surrenders the preference, lien, conveyance, transfer, assignment or encumbrance. If the avoidance is effected by a proceeding in which a final judgment has been entered, the claim shall not be allowed unless the money is paid or the property is delivered to the liquidator within thirty (30) days from the date of the entering of the final judgment, except that the court having jurisdiction over the liquidation may allow further time if there is an appeal or other continuation of the proceeding.
(2) A claim allowable under subsection (1) of this section by reason of the avoidance, whether voluntary or involuntary, or a preference, lien, conveyance, transfer, assignment, or encumbrance, may be filed as an excused late filing under section 41-3335, Idaho Code, if filed within thirty (30) days from the date of the avoidance, or within the further time allowed by the court under subsection (1) hereof.
History:
[41-3329, added 1981, ch. 249, sec. 2, p. 526.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3330 - SETOFFS.

41-3330. SETOFFS. (1) Mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this act shall be set off and the balance only shall be allowed or paid, except as provided in subsection (2) of this section and section 41-3333, Idaho Code.
(2) No setoff shall be allowed in favor of any person where:
(a) The obligation of the insurer to the person would not at the date of the filing of a petition for liquidation entitle the person to share as a claimant in the assets of the insurer;
(b) The obligation of the insurer to the person was purchased by or transferred to the person with a view to its being used as a setoff; or
(c) The obligation of the person is to pay an assessment levied against the members or subscribers of the insurer, or is to pay a balance upon a subscription to the capital stock of the insurer, or is in any other way in the nature of a capital contribution.
History:
[41-3330, added 1981, ch. 249, sec. 2, p. 526; am. 1996, ch. 304, sec. 1, p. 1000.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3331 - ASSESSMENTS.

41-3331. ASSESSMENTS. (1) As soon as practicable but not more than two (2) years from the date of an order of liquidation under section 41-3318, Idaho Code, of an insurer issuing assessable policies, the liquidator shall make a report to the court setting forth:
(a) The reasonable value of the assets of the insurer;
(b) The insurer’s probable total liabilities;
(c) The probable aggregate amount of the assessment necessary to pay all claims of creditors and expenses in full, including expenses of administration and costs of collecting the assessment; and
(d) A recommendation as to whether or not an assessment should be made and in what amount.
(2) (a) Upon the basis of the report provided in subsection (1) of this section, including any supplements and amendments thereto, the district court may levy one or more assessments against all members of the insurer who are subject to assessment.
(b) Subject to any applicable legal limits on assessability, the aggregate assessment shall be for the amount that the sum of the probable liabilities, the expenses of administration, and the estimated cost of collection of the assessment, exceeds the value of existing assets, with due regard being given to assessments that cannot be collected economically.
(3) After levy of assessment under subsection (2) of this section, the liquidator shall issue an order directing each member who has not paid the assessment pursuant to the order, to show cause why the liquidator should not pursue a judgment therefor.
(4) The liquidator shall give notice of the order to show cause by publication and by first class mail to each member liable thereunder, mailed to his last known address as it appears on the insurer’s records, at least twenty (20) days before the return day of the order to show cause.
(5) (a) If a member does not appear and serve duly verified objections upon the liquidator on or before the return day of the order to show cause under subsection (3) hereof, the court shall make an order adjudging the member liable for the amount of the assessment against him, pursuant to subsection (3) hereof, together with costs, and the liquidator shall have a judgment against the member therefor.
(b) If on or before such return day, the member appears and serves duly verified objections upon the liquidator, the director may hear and determine the matter or may appoint a referee to hear it and make such order as the facts warrant. In the event that the director determines that such objections do not warrant relief from assessment, the member may request the court to review the matter and vacate the order to show cause.
(6) The liquidator may enforce any order or collect any judgment under subsection (5) of this section by any lawful means.
History:
[41-3331, added 1981, ch. 249, sec. 2, p. 527.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3332 - REINSURER’S LIABILITY.

41-3332. REINSURER’S LIABILITY. The amount recoverable by the liquidator from reinsurers shall not be reduced as a result of delinquency proceedings, regardless of any provision in the reinsurance contract or other agreement. Payment made directly to an insured or other creditor shall not diminish the reinsurer’s obligation to the insurer’s estate except when the reinsurance contract provided for direct coverage of a named insured and the payment was made in discharge of that obligation.
History:
[41-3332, added 1981, ch. 249, sec. 2, p. 527.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3333 - RECOVERY OF PREMIUMS OWED.

41-3333. RECOVERY OF PREMIUMS OWED. (1) (a) An agent, broker, premium finance company, or any other person, other than the insured, responsible for the payment of a premium shall be obligated to pay any unpaid earned premium due the insurer at the time of the declaration of insolvency as shown on the records of the insurer. The liquidator shall also have the right to recover from such person any part of an unearned premium that represents commission of such person.
(b) An insured shall be obligated to pay any unpaid earned premium due the insurer at the time of the declaration of insolvency, as shown on the records of the insurer.
History:
[41-3333, added 1981, ch. 249, sec. 2, p. 528.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3335 - FILING OF CLAIMS.

41-3335. FILING OF CLAIMS. (1) Proof of all claims shall be filed with the liquidator in the form required by section 41-3336, Idaho Code, on or before the last day for filing specified in the notice required under section 41-3322, Idaho Code, except that proof of claims for cash surrender values or other investment values in life insurance and annuities need not be filed unless the liquidator expressly so requires.
(2) The liquidator may permit a claimant making a late filing to share in distributions, whether past or future, as if he were not late, to the extent that any such payment will not prejudice the orderly administration of the liquidation, under the following circumstances:
(a) The existence of the claim was not known to the claimant and that he filed his claim as promptly thereafter as reasonably possible after learning of it;
(b) A transfer to a creditor was avoided under sections 41-3326 through 41-3328, Idaho Code, or was voluntarily surrendered under section 41-3329, Idaho Code, and that the filing satisfies the conditions of section 41-3329, Idaho Code; and
(c) The valuation under section 41-3341, Idaho Code, of security held by a secured creditor shows a deficiency, which is filed within thirty (30) days after the valuation.
(3) The liquidator shall permit late filing claims to share in distributions, whether past or future, as if they were not late, if such claims are claims of a guaranty association or foreign guaranty association for reimbursement of covered claims paid or expenses incurred, or both, subsequent to the last day for filing where such payments were made and expenses incurred as provided by law.
(4) The liquidator may consider any claim filed late which is not covered by subsection (2) of this section, and permit it to receive distributions which are subsequently declared on any claims of the same or lower priority if the payment does not prejudice the orderly administration of the liquidation. The late filing claimant shall receive, at each distribution, the same percentage of the amount allowed on his claim as is then being paid to claimants of any lower priority. This shall continue until his claim has been paid in full.
History:
[41-3335, added 1981, ch. 249, sec. 2, p. 529.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3336 - PROOF OF CLAIM.

41-3336. PROOF OF CLAIM. (1) Proof of claim shall consist of a statement signed by the claimant that includes all of the following that are applicable:
(a) The particulars of the claim including the consideration given for it;
(b) The identity and amount of the security on the claim;
(c) The payments made on the debt, if any;
(d) That the sum claimed is justly owing and that there is not setoff, counterclaim, or defense to the claim;
(e) Any right of priority of payment or other specific right asserted by the claimants;
(f) A copy of the written instrument which is the foundation of the claim; and
(g) The name and address of the claimant and the attorney who represents him, if any.
(2) No claim need be considered or allowed if it does not contain all the information in subsection (1) of this section, which may be applicable. The liquidator may require that a prescribed form be used, and may require that other information and documents be included.
(3) At any time the liquidator may request the claimant to present information or evidence supplementary to that required under subsection (1) of this section and may take testimony under oath, require production of affidavits or depositions, or otherwise obtain additional information or evidence.
(4) No judgment or order against an insured or the insurer entered after the date of filing of a successful petition for liquidation, and no judgment or order against an insured or the insurer entered at any time by default or by collusion need be considered as evidence of liability or of quantum of damages. No judgment or order against an insured or the insurer entered within four (4) months before the filing of the petition need be considered as evidence of liability or of the quantum of damages.
(5) All claims of a guaranty association or foreign guaranty association shall be in such form and contain such substantiation as may be agreed to by the association and the liquidator.
History:
[41-3336, added 1981, ch. 249, sec. 2, p. 530.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3337 - SPECIAL CLAIMS.

41-3337. SPECIAL CLAIMS. (1) The claim of a third party which is contingent only on his first obtaining a judgment against the insured shall be considered and allowed as if there were no such contingency.
(2) A claim may be allowed even if contingent, if it is filed in accordance with section 41-3335, Idaho Code. It may be allowed and may participate in all distributions declared after it is filed to the extent that it does not prejudice the orderly administration of the liquidation.
(3) Claims that are due except for the passage of time shall be treated as absolute claims are treated, except that such claims may be discounted at the legal rate of interest.
(4) Claims made under employment contracts by directors, principal officers, or persons in fact performing similar functions or having similar powers are limited to payment for services rendered prior to the issuance of any order of rehabilitation or liquidation under sections 41-3313 or 41-3318, Idaho Code.
History:
[41-3337, added 1981, ch. 249, sec. 2, p. 530.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3338 - SPECIAL PROVISIONS FOR THIRD PARTY CLAIMS.

41-3338. SPECIAL PROVISIONS FOR THIRD PARTY CLAIMS. (1) Whenever any third party asserts a cause of action against an insured of an insured in liquidation, the third party may file a claim with the liquidator.
(2) Whether or not the third party files a claim, the insured may file a claim on his own behalf in the liquidation. If the insured fails to file a claim by the date for filing claims specified in the order of liquidation or within sixty (60) days after mailing of the notice required by section 41-3322, Idaho Code, whichever is later, he is an unexcused late filer.
(3) The liquidator shall make his recommendations to the court under section 41-3342, Idaho Code, for the allowance of an insured’s claim under subsection (2) of this section after consideration of the probable outcome of any pending action against the insured on which the claim is based, the probable damages recoverable in the action and the probable costs and expenses of defense. After allowance by the court, the liquidator shall withhold any dividends payable on the claim, pending the outcome of litigation and negotiation with the insured. Whenever it seems appropriate, he shall reconsider the claim on the basis of additional information and amend his recommendations to the court. The insured shall be afforded the same notice and opportunity to be heard on all changes in the recommendation as in its initial determination. The court may amend its allowance as it thinks appropriate. As claims against the insured are settled or barred, the insured shall be paid from the amount withheld the same percentage dividend as was paid on other claims of like property, based on the lesser of:
(a) The amount actually recovered from the insured by action or paid by agreement plus the reasonable costs and expenses of defense; or
(b) The amount allowed on the claims by the court. After all claims are settled or barred, any sum remaining from the amount withheld shall revert to the undistributed assets of the insurer. Delay in final payment under this subsection shall not be a reason for unreasonable delay of final distribution and discharge of the liquidator.
(4) If several claims founded upon one (1) policy are filed, whether by third parties or as claims by the insured under this section, and the aggregate allowed amount of the claims to which the same limit of liability in the policy is applicable exceeds that limit, each claim as allowed shall be reduced in the same proportion so that the total equals the policy limit. Claims by the insured shall be evaluated as in subsection (3) of this section. If any insured’s claim is subsequently reduced under subsection (3) of this section, the amount thus freed shall be apportioned ratably among the claims which have been reduced under this subsection.
(5) No claim may be presented under this section if it is or may be covered by any guaranty association or foreign guaranty association.
History:
[41-3338, added 1981, ch. 249, sec. 2, p. 531.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3339 - DISPUTED CLAIMS.

41-3339. DISPUTED CLAIMS. (1) When a claim is denied in whole or in part by the liquidator, written notice of the determination shall be given to the claimant or his attorney by first class mail at the address shown in the proof of claim. Within sixty (60) days from the mailing of the notice, the claimant may file his objections with the liquidator. If no such filing is made, the claimant may not further object to the determination.
(2) Whenever objections are filed with the liquidator and the liquidator does not alter his denial of the claim as a result of the objections, the liquidator shall ask the court for a hearing as soon as practicable and give notice of the hearing by first class mail to the claimant or his attorney and to any other persons directly affected, not less than ten (10) nor more than thirty (30) days before the date of the hearing. The matter may be heard by the court or by a court-appointed referee who shall submit findings of fact along with his recommendation.
History:
[41-3339, added 1981, ch. 249, sec. 2, p. 532.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3340 - CLAIMS OF SURETY.

41-3340. CLAIMS OF SURETY. Whenever a creditor whose claim against an insurer is secured, in whole or in part, by the undertaking of another person, fails to prove and file that claim, the other person may do so in the creditor’s name, and shall be subrogated to the rights of the creditor, whether the claim has been filed by the creditor or by the other person in the creditor’s name, to the extent that he discharges the undertaking. In the absence of an agreement with the creditor to the contrary, the other person shall not be entitled to any distribution, however, until the amount paid to the creditor on the undertaking plus the distributions paid on the claim from the insurer’s estate to the creditor equals the amount of the entire claim of the creditor. Any excess received by the creditor shall be held by him in trust for such other person. The term "other person" as used in this section is not intended to apply to a guaranty association or foreign guaranty association.
History:
[41-3340, added 1981, ch. 249, sec. 2, p. 532.]
2023 Idaho Code › Title 41 - INSURANCE › Chapter 33 - INSURERS SUPERVISION, REHABILITATION AND LIQUIDATION › Section 41-3341 - SECURED CREDITOR’S CLAIMS.

41-3341. SECURED CREDITOR’S CLAIMS. (1) The value of any security held by a secured creditor shall be determined in one (1) of the following ways, as the court may direct:
(a) By converting the same into money according to the terms of the agreement pursuant to which the security was delivered to such creditors; or
(b) By agreement, arbitration, compromise or litigation between the creditor and the liquidator.
(2) The determination shall be under the supervision and control of the court with due regard for the recommendation of the liquidator. The amount so determined shall be credited upon the secured claim, and any deficiency shall be treated as an unsecured claim. If the claimant shall surrender his security to the liquidator, the entire claim shall be allowed as if unsecured.
History:
[41-3341, added 1981, ch. 249, sec. 2, p. 532.]