Title 41 — INSURANCE

41-715. Insurance stocks. (1) An insurer may invest in subsidiary and/or companion insurance companies not to exceed fifteen percent (15%) of assets. For the purpose of calculating this fifteen percent (15%) limitation, all investments made under this section and section 41-3803,…

41-716. Investment trust securities. (1) An insurer may invest in the securities of any open-end management type investment company or investment trust registered with the federal securities and exchange commission under the investment company act of 1940 as from time to time ame…

41-717. Equipment trust obligations. An insurer may invest any of its funds, in an aggregate amount not exceeding ten per cent (10%) of its assets, in equipment trust obligations or certificates which are adequately secured or in other adequately secured instruments evidencing an…

41-718. Policy loans. A life insurer may lend to its policy holder upon pledge of the policy as collateral security, any sum not exceeding the cash surrender value of the policy; or may lend against pledge or assignment of any of its supplementary contracts or other contracts or …

41-719. Collateral loans. An insurer may lend and thereby invest its funds upon the pledge of securities eligible for investment under this chapter. As at date made, no such loan shall exceed in amount ninety per cent (90%) of the market value of such collateral pledged. The amou…

41-720. Savings and share accounts. An insurer may invest or deposit any of its funds in time certificates or share or savings accounts of banks, savings and loan associations and credit unions; provided, however, that funds may be deposited in any one (1) such savings and loan a…

41-721. Mortgage loans and contracts. An insurer may invest any of its funds in: (1) Bonds or evidences of debt which are secured by first mortgages or deeds of trust on improved unencumbered real property located in the United States. (2) Purchase money mortgages or like securit…

41-722. Mortgage loan limited by property value. (1) No commercial or residential mortgage loan or investment therein upon any one (1) parcel of real property shall exceed in amount, at the time of acquisition, eighty percent (80%) of the fair value of the property and the loan i…

41-723. Appraisal — Limit of amount loaned. (1) The fair value of property shall be determined by appraisal by a competent independent appraiser at the time of the making or acquisition of a mortgage loan or investing in a contract for the deed thereon; except, that as to bonds o…

41-724. "Improved real property" defined. For the purpose of section 41-724, Idaho Code, "improved real property" means: (1) Farmland used for tillage, crop or pasture; (2) Real estate on which improvements, or improvements under construction or in process of construction, suitab…

41-725. "Encumbrance" defined. (1) Real property shall not be deemed to be encumbered within the meaning of section 41-721 by reason of the existence of instruments reserving mineral, oil, timber or similar rights, rights of way, sewer rights, rights in walls, nor by reason of an…

41-726. Special investments by title insurer. (1) In addition to other investments eligible under this chapter, a title insurer may invest in its abstract plant and equipment, and in loans secured by mortgages on abstract plants and equipment, which plant investment shall not exc…

41-727. Foreign securities. (1) Notwithstanding the definitions in chapter 1, title 41, Idaho Code, for purposes of this section, the following definitions shall apply: (a) "Business entity" means a sole proprietorship, corporation, limited liability company, association, partner…

41-728. Real estate. (1) An insurer may acquire, invest in, own, maintain, alter, furnish, improve, manage, lease and convey the following real estate only: (a) Land and buildings used for home office purposes, including contiguous parcels intended for future home office or corpo…

41-729. Time limit for disposal of real estate. (1) Except as provided in subsection (4) below, an insurer shall dispose of real estate within time limits as follows: (a) If acquired under section 41-728(1)(a) (home office and branch office property), the insurer shall sell and d…

41-730. Disposal of ineligible property and securities. (1) Any personal property or securities lawfully acquired by an insurer which it could not otherwise have invested in or loaned its funds upon at the time of such acquisition, shall be disposed of by the insurer within one (…

41-731. Prohibited investments and investment underwriting. (1) In addition to investments excluded under other provisions of this code, an insurer shall not directly or indirectly invest in or loan its funds upon the security of: (a) Issued shares of its own capital stock, excep…

41-732. Domestic reciprocal insurer. Notwithstanding the provisions of chapter 1, title 57, Idaho Code, and section 67-2328, Idaho Code, funds of a domestic reciprocal insurer which is comprised of and exclusively insures members who are political subdivisions of the state, as de…

41-733. Subsidiary investments. An insurer may invest in subsidiaries in accordance with section 41-3803, Idaho Code.

41-734. Separate account funds. (1) The amounts allocated to each separate account established by the insurer pursuant to any provision of the Idaho Insurance Code (separate accounts), together with accumulations thereon may be invested and reinvested in any class of investments …

41-735. Miscellaneous investments. (1) An insurer may loan or invest its funds in kinds of loans or investments not otherwise specifically made eligible for investment and not specifically prohibited or made ineligible by this or other provisions of the Idaho Code in an aggregate…

41-736. Permitted investments. Subject to other limitation in chapter 7, title 41, Idaho Code, an insurer shall not invest or have invested at any one time more than sixty-five percent (65%) of its assets in investments described in sections 41-721 and 41-728, Idaho Code. Any ins…

41-801. Authorized deposits of insurers. The following deposits of insurers when made through the director shall be accepted and held, and shall be subject to the applicable provisions of this chapter: (1) Deposits required under this code for authority to transact insurance in t…

41-802. Purpose of deposit. Such deposits shall be held for purposes as follows: (1) Deposits made in this state under sections 41-316, Idaho Code, (foreign and alien insurance deposit requirements), and 41-316A, Idaho Code, (domestic insurance deposit requirements), shall be hel…

41-803. Securities eligible for deposit. (1) All such deposits required under sections 41-316 and 41-316A, Idaho Code, for authority to transact insurance in this state shall consist of certificates of deposit issued by solvent banks, or any combination of securities the market v…

41-804. Custodial arrangements for deposits. (1) All deposits of insurers made in this state under this code shall be made through the director. (2) The deposits shall be made with and held by the trust department of an established bank located in Idaho, approved by the director …

41-805. Records — Certificate of deposit. (1) The director shall maintain complete record of all securities deposited through him under this chapter, and of all transactions involving any such deposit. (2) Upon request of the insurer and payment of the fee therefor required under…

41-806. Assignment of securities. (1) The insurer shall duly assign to the director and his successors in office in trust all securities being deposited through him under this code which are not negotiable by delivery; or, in lieu of such assignment, the insurer may give the dire…

41-807. Appraisal. The director may, in his discretion, prior to acceptance for deposit of any particular asset or security, or at any time thereafter while so deposited, have the same appraised or valued by competent appraisers. The reasonable costs of any such appraisal or valu…

41-808. Excess deposits. (1) If securities or assets deposited by an insurer under this chapter are subject to material fluctuations in market value, the director may, in his discretion, require the insurer to deposit and maintain on deposit additional securities or assets in suc…

41-809. Rights of insurer during solvency. So long as the insurer remains solvent and is in compliance with this code it may: (1) Demand, receive, sue for and recover the income from the securities or assets deposited; (2) Exchange and substitute for the deposited securities or a…

41-810. Levy upon deposit. (1) No judgment creditor or other claimant of an insurer shall have the right to levy upon any of the assets or securities of the insurer held on deposit in this state pursuant to section 41-316 or 41-316A, Idaho Code. (2) As to deposits made in this st…

41-811. Deficiency of deposit. (1) For the purpose of determining the sufficiency of its deposit in this state the assets and securities of the insurer on deposit shall be valued at current market value. (2) If for any reason the current market value of such assets and securities…

41-812. Duration and release of deposit. (1) Every deposit made in this state by an insurer pursuant to this code shall be so held as long as there is outstanding any liability of the insurer as to which the deposit was required; or, if the deposit was required under the retaliat…

41-813. Proofs for release of deposit to insurer — Director’s responsibility. (1) Before authorizing or permitting the release of any deposit or excess portion thereof to the insurer, as provided in section 41-812, Idaho Code, the director shall require the insurer, the applicabl…

41-901. DEFINITIONS. For the purposes of this chapter: (1) "Administrator" or "third party administrator" or "TPA" means any person who directly or indirectly underwrites, collects charges or premiums from or adjusts or settles claims on residents of this state in connection with…

41-902. written agreement necessary. (1) No administrator shall act as such without a written agreement between the administrator and the insurer, and the written agreement shall be retained as part of the official records of both the insurer and the administrator for the duratio…

41-903. payment to administrator. If an insurer utilizes the services of an administrator, the payment to the administrator of any premiums or charges for insurance by or on behalf of the insured shall be deemed to have been received by the insurer and the payment of return premi…

41-904. maintenance of information. (1) Every administrator shall maintain and make available to the insurer complete books and records of all transactions performed on behalf of the insurer. The books and records shall be maintained in accordance with prudent standards of insura…

41-905. advertising — approval. An administrator may use only advertising pertaining to the business underwritten by an insurer that has been approved in writing by the insurer in advance of its use. Prior to approving the use of advertising by an administrator, the insurer shall…

41-906. premium collection and payment of claims. (1) All insurance charges or premiums collected by an administrator on behalf of or for an insurer, and the return of premiums received from that insurer, shall be held by the administrator in a fiduciary capacity. The funds shall…

41-907. delivery of materials to covered individuals. Any policies, certificates, booklets, termination notices or other written communications delivered by the insurer to the administrator for delivery to insured parties or covered individuals shall be delivered by the administr…

41-908. compensation to the administrator. (1) An administrator shall not enter into an agreement or understanding with an insurer in which the effect is to make the amount of the administrator’s commissions, fees or charges contingent upon savings effected by the adjustment, set…

41-909. notice to covered individuals — disclosure of charges and fees. (1) Where the services of an administrator are utilized, the administrator shall provide a written notice approved by the insurer to covered individuals advising them of the identity of and relationship among…

41-910. registration requirement. A person who directly or indirectly underwrites, collects charges or premiums from or adjusts or settles claims on residents of this state in connection with life, annuity or health coverage provided by a self-funded plan not regulated under titl…

41-911. home state license. (1) A person shall apply to be an administrator in its home state and shall receive a license from the regulatory authority of its home state prior to performing any function of an administrator in this state. (2) A person applying to Idaho as the home…

41-912. nonresident administrator license. (1) Unless an administrator has obtained a home state license in this state, any administrator who performs administrator duties in this state shall obtain a nonresident administrator license in accordance with the provisions of this sec…

41-913. expiration and renewal of administrator license. (1) A license issued pursuant to this chapter shall expire on December 31 of the year following its issuance, but may be renewed for a period of two (2) years commencing January 1 upon filing a renewal form prescribed by th…

41-914. annual report. (1) Each administrator licensed under the provisions of this chapter shall file an annual report for the preceding calendar year with the director on or before July 1 of each year, or within such extension of time as the director for good cause may grant. T…

41-915. grounds for denial, suspension or revocation of license. (1) The license of an administrator shall be denied, suspended or revoked if the director finds that the administrator: (a) Is in an unsound financial condition; (b) Is using such methods or practices in the conduct…