Title 41 — INSURANCE

41-1235. False advertising act. Sections 41-1235 through 41-1237 of this act constitute and may be referred to as the unauthorized insurers false advertising process act.

41-1236. Misrepresentation by unauthorized insurer. No unauthorized insurer through any estimate, illustration, circular, pamphlet, letter, announcement, statement or any other means or medium shall misrepresent to any person in this state its financial condition or the terms of …

41-1237. Misrepresentation — Action and penalties. (1) If within twenty-one (21) days following the giving of the notice provided for in section 41-1236, Idaho Code, the insurer has not ceased such dissemination, and if the director has reason to believe that such insurer is soli…

41-1301. Purposes of trade practices law. The purpose of sections 41-1301 through 41-1321, Idaho Code, is to regulate trade practices in the business of insurance in accordance with the intent of congress as expressed in the act of congress of March 9, 1945 (Public Law 15, 79th C…

41-1302. Unfair methods of competition and deceptive act prohibited. (1) No person shall engage in this state in any trade practice which is prohibited in this chapter, or defined in this chapter as, or determined pursuant to this chapter to be, an unfair method of competition or…

41-1303. Misrepresentation or false advertising of policies. (1) No person shall make, issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages p…

41-1304. False information and advertising with respect to insurance business. No person shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a n…

41-1305. "Twisting" prohibited. No person shall make or issue, or cause to be made or issued, any written or oral statement misrepresenting or making incomplete comparisons as to the terms, conditions, or benefits contained in any policy for the purpose of inducing or attempting …

41-1306. False financial statements. (1) No person shall file with any supervisory or other public official, or make, publish, disseminate, circulate or deliver to any person, or place before the public, or cause directly or indirectly to be made, published, disseminated, circula…

41-1307. Representations as to assets or financial condition — Assessment plan to be stated in advertising. (1) No insurer or representative thereof shall anywhere publish, represent or advertise assets except those actually owned and possessed by it in its own exclusive right, a…

41-1308. Defamation. No person shall make, publish, disseminate, or circulate, directly or indirectly, or aid, abet or encourage the making, publishing, disseminating or circulating of any oral or written statement or any pamphlet, circular, article or literature which is false, …

41-1309. Boycott, coercion and intimidation. No person or persons shall enter into any agreement to commit, or by any concerted action commit, any act of boycott, coercion or intimidation resulting in or tending to result in unreasonable restraint of, or monopoly in, the business…

41-1310. Person financing purchase of property not to favor insurer or agent. No person engaged in the business of financing the purchase of real or personal property and no trustee, director, officer, agent or other employee of any such person shall require, as a condition to fi…

41-1311. Seller of property not to favor insurer or agent. No seller of real or personal property, and no person engaged in the business of selling real or personal property, and no trustee, director, officer, agent or other employee of any such seller or such other person shall …

41-1312. Rights with respect to insurance on property sold or purchased. Sections 41-1310 or 41-1311 shall not prevent: (1) The reasonable exercise by any person engaged in any such business of his right to approve or disapprove the insurance or the insurer selected to write the …

41-1313. Unfair discrimination — Life insurance, annuities, and disability insurance. (1) No person shall make or permit any unfair discrimination between individuals of the same class and equal expectation of life in the rates charged for any contract of life insurance or of lif…

41-1314. Rebates — Illegal inducements. (1) Except as otherwise expressly provided by law, no person shall knowingly make, permit to be made, or offer to make any contract of insurance, or of annuity, or agreement as to such contract, other than as plainly expressed in the contra…

41-1315. Exceptions to discrimination or rebate provision — Life or disability policies, and annuity contracts. Nothing in sections 41-1313 and 41-1314 shall be construed as including within the definition of discrimination or rebates or illegal inducements any of the following p…

41-1315A. Discounts to employees. No provision of title 41, Idaho Code, shall be deemed to prohibit allowance by an insurer, agent, or broker to the insurer’s or licensee’s bona fide full-time salaried employee of a discount from the premium otherwise payable for insurance on the…

41-1316. Stock operations and advisory board contracts. No person shall issue or deliver or permit its agents, officers, or employees to issue or deliver, agency company stock or other capital stock, or benefit certificates or shares in any common-law corporation, or any advisory…

41-1317. Fictitious groups. (1) No insurer, whether an authorized insurer or an unauthorized insurer, shall make available through any rating plan or form, property, casualty or surety insurance to any firm, corporation, or association of individuals, any preferred rate or premiu…

41-1318. Interlocking ownership or management. (1) Any insurer may retain, invest in or acquire the whole or any part of the capital stock of any other insurer or insurers, or have a common management with any other insurer or insurers, unless such retention, investment, acquisit…

41-1321. Procedures as to undefined practices. (1) Whenever the director has reason to believe that any person engaged in the business of insurance is engaging in this state in any method of competition or in any act or practice in the conduct of such business which is not expres…

41-1323. Illegal dealing in premiums — Excess charges for insurance. (1) No person shall wilfully collect any sum as premium or charge for insurance, which insurance is not then provided or is not in due course to be provided (subject to acceptance of the risk by the insurer) by …

41-1324. Report of exact consideration to insurer. Every agent, broker or other insurance representative shall report to the insurer the exact consideration charged for any insurance policy or contract. If any policy, contract or certificate of insurance is issued by the agent, b…

41-1325. Borrowing money from clients. (1) An insurance producer who borrows money, securities or anything of value from a client or customer, unless the client or customer is a person engaged in the business of loaning funds or is an immediate family member of the insurance prod…

41-1327. Violations — Penalty. Any person who violates any provision of this chapter as to which a penalty is not expressly provided, or who violates a cease and desist order issued by the director under section 41-213, Idaho Code, after such order has become final, shall be subj…

41-1328. Payment of claims by insurers. Every insurer issuing a motor vehicle insurance policy, as defined in chapter 5, title 41, Idaho Code, shall, in the event of damage to a covered motor vehicle by collision and the election by the insurer to have such motor vehicle repaired…

41-1328A. Repair of motor vehicles. The purpose of sections 41-1328A through 41-1328D, Idaho Code, is to regulate the use of aftermarket crash parts by requiring disclosure by the repair facility when any use is proposed of an aftermarket, nonoriginal equipment manufacturer’s cra…

41-1328B. Definitions. For the purposes of sections 41-1328A through 41-1328D, Idaho Code, the following definitions apply: (1) "Aftermarket crash part" means a replacement part for any of the nonmechanical sheet metal or plastic parts which generally constitute the exterior of a…

41-1328C. Identification of parts. Any aftermarket crash part supplied by a nonoriginal equipment manufacturer for use in this state shall have affixed thereto or inscribed thereon the logo or name of its manufacturer. Such manufacturer’s logo or name shall be visible after insta…

41-1328D. Use of parts — Disclosure. It shall be an unfair claim settlement practice for an insurer to specify the use of nonoriginal equipment manufacturer aftermarket crash parts in the repair of an insured’s motor vehicle, or for a repair facility or installer to use non-OEM a…

41-1329. Unfair claim settlement practices. Pursuant to section 41-1302, Idaho Code, committing or performing any of the following acts or omissions intentionally, or with such frequency as to indicate a general business practice shall be deemed to be an unfair method of competit…

41-1329A. Unfair claims settlement practices — Penalty. The director, if he finds after a hearing, that an insurer has violated the provisions of section 41-1329, Idaho Code, may, in his discretion, impose an administrative penalty not to exceed ten thousand dollars ($10,000) to …

41-1330. Failure to maintain complaint handling procedures. Every authorized insurer shall maintain a complete record of all the complaints which it has received since the date of its last examination under section 41-219, Idaho Code. This record shall indicate on a state by stat…

41-1331. Claims forms statement. (1) All claims forms may contain a statement that clearly states in substance the following: "Any person who knowingly, and with intent to defraud or deceive any insurance company, files a statement of claim containing any false, incomplete, or mi…

41-1332. return of unearned premium for disability policies. Upon the death of a disability policyholder, the insurer shall immediately return any applicable unearned premium on a prorated basis for the period beginning with the month after the month of death for which there is n…

41-1333. Refund of unearned health insurance premiums. If an insured person, insured person’s estate or entity cancels a health insurance policy for any reason, the insurer or other entity regulated pursuant to the provisions of this title shall refund the pro rata portion of the…

41-1334. Disclosure of nonpublic personal information. (1) No person required to be licensed or authorized pursuant to title 41, Idaho Code, shall disclose any nonpublic personal information contrary to the provisions of title V of the Gramm-Leach-Bliley act of 1999, public law 1…

41-1335. Release of patient identifiable prescription information prohibited — Exceptions. (1) No person shall release or sell, or include in any policy of insurance delivered or issued for delivery in this state any provision for the release or sale of any information pertaining…

41-1336. Requirements for compliance. It shall be a violation of this chapter for an insurer to fail to comply with the requirements applicable to insurers under chapter 12, title 32, Idaho Code.

41-1337. Life insurance — Payment of interest on benefits. (1) An insurer shall pay the proceeds of any benefits under a policy of life insurance not more than thirty (30) days after the insurer has received satisfactory proof of death of the insured. Except as provided in subsec…

41-1338. uninsured vehicle tracking — penalties. Tracking uninsured vehicles through online insurance verification is an important policy of the state of Idaho that requires the participation of all auto insurers. Failure to comply with the provisions of section 49-1234, Idaho Co…

41-1401. Scope of chapter. (1) Except as provided in section 41-1619 (other provisions applicable, workmen’s compensation rates), and except as provided in subsection (3) below, this chapter applies to property, marine and transportation, inland marine, casualty (other than workm…

41-1402. Purpose of law — Interpretation. (1) The purpose of this chapter is to promote the public welfare by regulating insurance rates as herein provided to the end that they shall not be excessive, inadequate or unfairly discriminatory, and to authorize and regulate cooperativ…

41-1405. Rate standards. (1) Rates shall not be excessive, inadequate or unfairly discriminatory. (2) No rate shall be held to be excessive unless the director finds that: (a) Such rate is unreasonably high for the insurance provided, and (b) A reasonable degree of competition do…

41-1415. Rating organizations — Licensing. (1) Any person, corporation, unincorporated association, partnership or individual, whether located within or outside this state, not an officer or employee of any insurer, may apply to the director for a license as a rate making organiz…

41-1416. Period license effective — Renewal — Fee — Suspension or revocation. (1) Licenses issued to rating organizations under section 41-1415, Idaho Code, shall remain in effect for one (1) year, unless sooner suspended or revoked by the director, and may be renewed for success…

41-1417. Admission of subscribers — Services nondiscriminatory. (1) Subject to rules which have been approved by the director as reasonable, each rating organization shall permit any insurer, not a member, to be a subscriber to its rating services for any kind of insurance or sub…

41-1420. Notice of rating organization changes. Every rating organization shall notify the director promptly of every change in (1) its constitution, its articles of agreement or association, or its certificate of incorporation, and its by-laws, rules and regulations governing th…